Investcorp Credit Management BDC, Inc Announces Financial Results for the Quarter Ended March 31, 2023, and Quarterly and Supplemental Distributions.

NEW YORK: Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) ("ICMB" or the "Company") announced its financial results today for its fiscal third quarter ended March 31, 2023.

HIGHLIGHTS

On May 4, 2023, the Company's Board of Directors (the "Board") declared a distribution of $0.13 per share for the quarter ending June 30, 2023, payable in cash on July 7, 2023, to stockholders of record as of June 16, 2023 and a supplemental distribution of $0.05 per share, payable on July 7, 2023, to stockholders of record as of June 16, 2023.

During the quarter, ICMB made investments in one new portfolio company and three existing portfolio companies. These investments totaled $8.0 million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 12.85%.

ICMB fully realized two portfolio companies during the quarter, totaling $11.2 million in proceeds. The internal rate of return on these investments was 10.70%.

During the quarter, the Company had net advances of $1.1 million on its existing delayed draw and revolving credit commitments to portfolio companies.

The weighted average yield on debt investments, at cost, for the quarter ended March 31, 2023, was 13.36%, compared to 10.73% for the quarter ended December 31, 2022.

Net asset value decreased $0.23 per share to $6.13, compared to $6.36 as of December 31, 2022. Net assets decreased by $3.3 million, or 3.6%, during the quarter ended March 31, 2023.

Portfolio results, as of and for the three months ended March 31, 2023:

Total assets

$239.0mm

Investment portfolio, at fair value

$221.3mm

Net assets

$88.2mm

Weighted average yield on debt investments, at cost (1)

13.36 %

Net asset value per share

$6.13

Portfolio activity in the current quarter:

Number of new investments

4

Total capital invested

$8.0mm

Proceeds from repayments, sales, and amortization

$14.9mm

Number of portfolio companies, end of period

35

Net investment income (NII)

$2.5mm

Net investment income per share

$0.18

Net decrease in net assets from operations

$1.1mm

Net decrease in net assets from operations per share

$0.08

Quarterly per share distribution paid on March 30, 2023

$0.15

(1) Represents weighted average yield on total debt investments for the three months ended March 31, 2023. Weighted average yield on total debt investments is the annualized rate of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company's stockholders.

Mr. Michael C. Mauer, the Company's Chief Executive Officer, said "The current high rate environment continues to put pressure on highly levered borrowers across the loan market in the form of elevated interest expense. Our focus on lower leverage multiples as compared to the broadly syndicated market provides our portfolio with significant insulation from the liquidity pressure that many borrowers are facing. We expect a tale of two markets; one of conservatively structured companies with a low default rate, and one of more aggressively leveraged companies who will see increasing challenges in the coming quarters."

The Company's dividend framework provides a quarterly base dividend and may be supplemented, at the discretion of the Board, by additional dividends as determined to be available by the Company's net investment income and performance during the quarter.

On May 4, 2023, the Board declared a distribution for the quarter ended June 30, 2023 of $0.13 per share payable on July 7, 2023 to stockholders of record as of June 16, 2023 and a supplemental distribution of $0.05 per share, payable on July 7, 2023, to stockholders of record as of June 16, 2023.

This distribution represents a 19.73% yield on the Company's $3.65 share price as of market close on March 31, 2023. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the dividend for the quarter ending March 31, 2023, to be comprised of a return of capital. The Company's investment adviser monitors available taxable earnings, including net investment income and...