ICMB - Investcorp Credit Management BDC Inc. Announces Preliminary Financial Results for the Quarter Ended September 30 2021 and Quarterly Distribution

PR Newswire

NEW YORK , Nov. 8, 2021 /PRNewswire/ -- Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) ("ICMB" or the "Company") announced its financial results today for its fiscal first quarter ended September 30 , 2021.

HIGHLIGHTS

• On November 3, 2021 , the Company's Board of Directors (the "Board") declared a distribution for the quarter ending December 31, 2021 of $0.15 per share, payable on January 4, 2022 , to stockholders of record as of December 10, 2021 .
• ICMB made two investments in new portfolio companies and four investments in existing portfolio companies. These investments totaled $18.1 million . The weighted average yield of debt investments made in the quarter was 8.52%.
• ICMB fully realized two investments during the quarter, totaling $12.1 million , and received proceeds from sales and partial repayments totaling $ 8.1 million .
• The weighted average yield on debt investments, at cost, increased 8 basis points to 8.12%, compared to 8.04% as of June 30, 2021 .
• Net asset value increased $0.08 per share to $7.00 , compared to $6.92 as of June 30, 2021 . Net assets increased by $4.3 million or 4.48% for the quarter ended September 30, 2021 .

Mr. Michael C. Mauer , the Company's Chief Executive Officer, said, "As we continue through an interesting market that has labor issues, supply chain issues and other tail effects of COVID, our portfolio is exhibiting diverse stability.  In addition,  we continue to see an interesting mix of new investments that support the outlook over the near to medium term."

The Company's dividend framework provides a quarterly base dividend and may be supplemented (when available) by additional dividends determined by the net investment income during the quarter.

On November 3, 2021 , the Company's Board declared a distribution for the quarter ending December 31, 2021 of $0.15 per share, payable on January 4, 2022 , to stockholders of record as of December 10, 2021 .

This distribution represents an 11.01% yield on the Company's $5.45 share price as of market close on September 30 , 2021.  Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect these distributions to be comprised of a return of capital. The tax status of distributions will be determined at the end of the taxable year.

Portfolio and Investment Activities

During the quarter, the Company made two investments in new portfolio companies and four investments in existing portfolio companies. The aggregate capital invested during the quarter totaled $18.1 million , at cost, and the debt investments were made at a weighted average yield of 8.52%.

The Company received proceeds of $20.2 million from repayments, sales and amortization during the quarter, primarily related to the realizations of Infrastructure & Energy Alternatives, Inc., Hyperion Materials & Technologies, Inc., and the sale of a portion of its position in Bioplan USA , Inc.

The Company's realized and unrealized gains and losses accounted for an increase in the Company's net investments of $0.8 million , or $0.05 per share. The total net increase in net assets resulting from operations for the quarter was $3.3 million , or $0.23 per share.

As of September 30, 2021 , the Company's investment portfolio consisted of investments in 36 portfolio companies, of which 92.8% were first lien investments, 2.8% were second lien investments, and 4.4% were equity, warrants, and other investments. The Company's debt portfolio consisted of 96.1% floating rate investments and 3.9% fixed rate investments.

The Company has and will continue to closely monitor its portfolio companies throughout this period, including assessing portfolio companies' operational and liquidity exposure and outlook, and continues to assess the impact of the COVID-19 pandemic on its portfolio companies. For additional information about the COVID-19 pandemic and its potential impact on the Company's results of operations and financial condition, please refer to the disclosure in the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2021 .

Capital Resources

As of September 30, 2021 , the Company had $16.3 million in cash, of which $7.7 million was in restricted cash and $20.0 million of capacity under its revolving credit facility with UBS AG, London Branch.

On August 23, 2021 , the Company, through Investcorp Credit Management BDC SPV, LLC, entered into a five-year, $115 million senior secured revolving credit facility (the "Capital One Revolving Financing") with Capital One, N.A., which is secured by collateral consisting primarily of loans in the Company's investment portfolio. The Capital One Revolving Financing, which will expire on August 22, 2026 (the "Maturity Date"), features a three-year reinvestment period and a two-year amortization period. The Capital One Revolving Financing will be used to pay off the $102.0 million UBS term loan and revolver.

Subsequent Events

Subsequent to September 30, 2021 and through November 5, 2021 , the Company invested a total of $10.8 million , which included investments in two new portfolio companies and one existing portfolio company and received $8 million in repayments. As of November 5, 2021 , the Company had 37 portfolio companies.

About Investcorp Credit Management BDC, Inc.

The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940.  The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50mm and earnings before interest, taxes, depreciation, and amortization of at least $15mm. The Company's investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit 43TUwww.icmbdc.com U43T.

Forward-Looking Statements

Statements included herein in this press release may contain "forward-looking statements," which relate to future performance or financial condition, are based upon current expectations and are inherently uncertain, and are subject to the completion of the Company's quarterly and year-end closing and related audit procedures. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company's control and including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks, and uncertainties, which change over time.  Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company undertakes no duty to update any forward-looking statement made herein except as required by law.

Contacts

Investcorp Credit Management BDC, Inc.
Investor Relations
Email: icmbinvestorrelations@investcorp.com
Phone: 212-257-5182

SOURCE Investcorp Credit Management BDC