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Business Wire 12-May-2026 9:17 PM
Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) ("ICMB" or the "Company") announced its financial results today for its fiscal quarter ended March 31, 2026.
HIGHLIGHTS
Portfolio results, as of and for the three months ended March 31, 2026:
Total assets |
$164.6 million |
Investment portfolio, at fair value |
$151.4 million |
Net assets |
$52.7 million |
Weighted average yield on debt investments, at fair market value (1) |
11.95% |
Net asset value per share |
$3.65 |
Portfolio activity in the current quarter: |
|
Number of investments in new portfolio companies during the period |
0 |
Number of portfolio companies invested in, end of period |
34 |
Total capital invested in existing portfolio companies (2) |
$1.2 million |
Total proceeds from repayments, sales, and amortization (3) |
$14.0 million |
Net investment income before taxes (NII) |
$0.3 million |
Net investment income before taxes per share |
$0.02 |
Net decrease in net assets from operations |
($8.6) million |
Net decrease in net assets from operations per share |
($0.60) |
Distributions paid per common share |
$0.00 |
(1) Represents average yield on total debt investments weighted by fair market value as of March 31, 2026. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company's stockholders. |
|
(2) Includes gross advances for delayed draw and revolving credit commitments and PIK interest to existing portfolio companies. |
|
(3) Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies. |
|
Mr. Suhail A. Shaikh, chief executive officer of ICMB, said "We remain focused on capital preservation and disciplined liquidity management as our near-term priorities. New investment activity remained muted during the quarter, reflecting our selective approach to capital deployment. We continue to work closely with our portfolio company management teams and remain committed to maximizing value for our shareholders as we evaluate the path forward."
Mr. Andrew Muns, chief financial officer of ICMB, noted: "We continue to take a proactive approach to managing the Company's liquidity with initiatives such as the reduction in unneeded capital commitment from our credit facility and the waiver of additional management fees this quarter."
Portfolio and Investment Activities
During the quarter, the Company made a $0.1 million investment in one existing portfolio company.
The Company received proceeds of $14.0 million from repayments, sales and amortization during the quarter, primarily related to the realization of INW Manufacturing term loan, PVI Holdings term loan, and Asurion term loan.
During the quarter, the Company had net draws of $0.7 million on delayed draw and revolving credit commitments to portfolio companies.
The Company's net realized and unrealized gains and losses accounted for a decrease in the Company's net assets of approximately $8.8 million, or $0.61 per share. The total net decrease in net assets resulting from operations for the quarter was $8.6 million, or $0.60 per share.
As of March 31, 2026, the Company's investment portfolio consisted of investments in 34 portfolio companies, of which 82.54% were first lien investments and 17.46% were equity, warrants, and other investments. The Company's debt portfolio consisted of 97.75% floating rate investments and 2.25% fixed rate investments.
Capital Resources
As of March 31, 2026, the Company had $11.6 million in cash, of which $8.8 million was restricted cash, and $55.1 million of unused commitment under its revolving credit facility with Capital One, N.A (the "Capital One Revolving Facility").
As of March 31, 2026, the Company had availability to borrow $3.6 million from the revolving credit facility based on the borrowing base.
Subsequent Events
Subsequent to March 31, 2026 and through May 12, 2026, the Company invested a total of $2.0 million, at cost, which included investments in one existing portfolio company. As of May 12, 2026, the Company had investments in 34 portfolio companies.
On May 6, 2026, the Company, through Investcorp Credit Management BDC SPV, LLC, entered into a sixth amendment (the "Sixth Amendment") to the Capital One Revolving Facility. The Sixth Amendment provides for, among other things, a decrease of the facility size from $100 million to $50 million.
Earnings Conference Call
The Company will host an earnings conference call at 11:30 am (Eastern Time) on Wednesday, May 13, 2026 to review its financial results and conduct a question-and-answer session. All interested parties may participate in the conference call by dialing (800) 550-9893 5-10 minutes prior to the call; international callers should dial (858) 609-8959. Participants should enter 872058# as the passcode, then press 2 when prompted. For those who are not able to listen to the call, a replay will be available shortly after the call by visiting our website at http://icmbdc.com/earnings-calls/.
Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Assets and Liabilities |
||||||||
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments, at fair value (amortized cost of $164,423,388 and $177,110,265, respectively) |
|
$ |
140,007,640 |
|
|
$ |
159,985,717 |
|
Affiliated investments, at fair value (amortized cost of $13,620,895 and $13,340,494, respectively) |
|
|
11,411,667 |
|
|
|
12,673,145 |
|
Total investments, at fair value (amortized cost of $178,044,283 and $190,450,759, respectively) |
|
|
151,419,307 |
|
|
|
172,658,862 |
|
Cash and cash equivalents |
|
|
2,739,918 |
|
|
|
4,582,403 |
|
Restricted cash and cash equivalents |
|
|
8,831,004 |
|
|
|
10,416,042 |
|
Principal receivable |
|
|
83,087 |
|
|
|
55,377 |
|
Interest receivable |
|
|
937,415 |
|
|
|
808,703 |
|
Payment-in-kind interest receivable |
|
|
150,606 |
|
|
|
190,790 |
|
Prepaid expenses and other assets |
|
|
397,282 |
|
|
|
124,928 |
|
Total Assets |
|
$ |
164,558,619 |
|
|
$ |
188,837,105 |
|
Liabilities |
|
|
|
|
|
|
||
Debt: |
|
|
|
|
|
|
||
Revolving credit facility |
|
$ |
44,900,000 |
|
|
$ |
58,900,000 |
|
2029 Notes payable |
|
|
65,000,000 |
|
|
|
— |
|
2026 Notes payable |
|
|
— |
|
|
|
65,000,000 |
|
Deferred debt issuance costs |
|
|
(848,479 |
) |
|
|
(754,121 |
) |
Unamortized discount |
|
|
(940,301 |
) |
|
|
(17,778 |
) |
Debt, net |
|
|
108,111,220 |
|
|
|
123,128,101 |
|
Interest payable |
|
|
897,826 |
|
|
|
1,887,457 |
|
Base management fees payable |
|
|
1,146,794 |
|
|
|
786,986 |
|
Income-based incentive fees payable |
|
|
351,571 |
|
|
|
351,571 |
|
Deferred income liability |
|
|
364,353 |
|
|
|
440,084 |
|
Directors' fees payable |
|
|
79,952 |
|
|
|
— |
|
Accrued expenses and other liabilities |
|
|
909,553 |
|
|
|
916,894 |
|
Total Liabilities |
|
|
111,861,269 |
|
|
|
127,511,093 |
|
Commitments and Contingencies (see Note 6) |
|
|
|
|
|
|
||
Net Assets |
|
|
|
|
|
|
||
Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,432,472 and 14,432,472 shares issued and outstanding, respectively) |
|
|
14,432 |
|
|
|
14,432 |
|
Additional paid-in capital |
|
|
203,128,982 |
|
|
|
203,128,982 |
|
Distributable earnings (loss) |
|
|
(150,446,064 |
) |
|
|
(141,817,402 |
) |
Total Net Assets |
|
|
52,697,350 |
|
|
|
61,326,012 |
|
Total Liabilities and Net Assets |
|
$ |
164,558,619 |
|
|
$ |
188,837,105 |
|
Net Asset Value Per Share |
|
$ |
3.65 |
|
|
$ |
4.25 |
|
Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) |
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|
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For The Three Months Ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Investment Income: |
|
|
|
|
|
|
||
Interest income |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
$ |
3,037,427 |
|
|
$ |
3,488,202 |
|
Non-controlled, affiliated investments |
|
|
13,129 |
|
|
|
14,978 |
|
Total interest income |
|
|
3,050,556 |
|
|
|
3,503,180 |
|
Payment in-kind interest income |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
179,435 |
|
|
|
419,888 |
|
Non-controlled, affiliated investments |
|
|
185,954 |
|
|
|
21,380 |
|
Total payment-in-kind interest income |
|
|
365,389 |
|
|
|
441,268 |
|
Dividend income |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
61,659 |
|
|
|
81,607 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
Total dividend income |
|
|
61,659 |
|
|
|
81,607 |
|
Payment in-kind dividend income |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
— |
|
|
|
221,685 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
Total payment-in-kind dividend income |
|
|
— |
|
|
|
221,685 |
|
Other fee income |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
73,372 |
|
|
|
121,024 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
Total other fee income |
|
|
73,372 |
|
|
|
121,024 |
|
Other income |
|
|
575 |
|
|
|
— |
|
Total investment income |
|
|
3,551,551 |
|
|
|
4,368,764 |
|
Expenses: |
|
|
|
|
|
|
||
Interest expense |
|
|
1,690,014 |
|
|
|
1,831,967 |
|
Base management fees |
|
|
815,591 |
|
|
|
848,036 |
|
Income-based incentive fees |
|
|
— |
|
|
|
— |
|
Professional fees |
|
|
385,447 |
|
|
|
341,283 |
|
Allocation of administrative costs from Adviser |
|
|
253,433 |
|
|
|
254,023 |
|
Amortization of deferred debt issuance costs |
|
|
153,824 |
|
|
|
153,824 |
|
Amortization of original issue discount - 2026 Notes |
|
|
17,777 |
|
|
|
17,777 |
|
Insurance expense |
|
|
104,681 |
|
|
|
120,502 |
|
Directors' fees |
|
|
79,952 |
|
|
|
76,500 |
|
Custodian and administrator fees |
|
|
73,356 |
|
|
|
74,237 |
|
Other expenses |
|
|
106,884 |
|
|
|
40,173 |
|
Total expenses |
|
|
3,680,959 |
|
|
|
3,758,322 |
|
Waiver of base management fees |
|
|
(455,783 |
) |
|
|
(74,143 |
) |
Waiver of income-based incentive fees |
|
|
— |
|
|
|
— |
|
Net expenses |
|
|
3,225,176 |
|
|
|
3,684,179 |
|
Net investment income before taxes |
|
|
326,375 |
|
|
|
684,585 |
|
Income tax expense, including excise tax expense |
|
|
141,293 |
|
|
|
81,059 |
|
Net investment income after taxes |
|
|
185,082 |
|
|
|
603,526 |
|
Net realized and unrealized gain/(loss) on investments: |
|
|
|
|
|
|
||
Net realized gain (loss) from investments |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
19,335 |
|
|
|
(1,627,282 |
) |
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
Net realized gain (loss) from investments |
|
|
19,335 |
|
|
|
(1,627,282 |
) |
Net change in unrealized appreciation (depreciation) in value of investments |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
(7,291,200 |
) |
|
|
3,379,849 |
|
Non-controlled, affiliated investments |
|
|
(1,541,879 |
) |
|
|
(149,801 |
) |
Net change in unrealized appreciation (depreciation) on investments |
|
|
(8,833,079 |
) |
|
|
3,230,048 |
|
Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments |
|
|
(8,813,744 |
) |
|
|
1,602,766 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ |
(8,628,662 |
) |
|
$ |
2,206,292 |
|
Basic and diluted: |
|
|
|
|
|
|
||
Earnings per share |
|
$ |
(0.60 |
) |
|
$ |
0.15 |
|
Weighted average shares of common stock outstanding |
|
|
14,432,472 |
|
|
|
14,412,994 |
|
Distributions paid per common share |
|
$ |
— |
|
|
$ |
0.12 |
|
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 $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. 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 www.icmbdc.com.
Forward-Looking Statements
Statements included in this press release and made on the earnings call for the quarter ended March 31, 2026, may contain "forward-looking statements," which relate to future performance, operating results, events, financial condition and/or exploration of strategic alternatives. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release or made on the earnings call are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control.
Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company's performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or discussed on the earnings call, is or will be included in the Company's filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260512054305/en/
Investcorp Credit Management BDC, Inc. Investor Relations Email: icmbinfo@investcorp.com Phone: (212) 703-1154