Crescent Capital BDC, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Crescent Capital BDC, Inc. released its 2023 10-K, detailing its investment portfolio and financial status.</b>

AI Summary

Crescent Capital BDC, Inc. (FCRX) filed a Annual Report (10-K) with the SEC on February 21, 2024. Crescent Capital BDC, Inc. filed its 2023 Form 10-K on February 21, 2024. The filing details various debt investments across different industries, including healthcare and software. Specific investments mentioned include Unitranche First Lien Term Loans with interest rates ranging from L+575 to L+725. Maturity dates for these investments generally fall between 2025 and 2028. The company is incorporated in Maryland and its fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking Crescent Capital BDC, Inc., this filing contains several important signals. The 10-K provides a comprehensive overview of Crescent Capital BDC's investment strategy and performance for the fiscal year 2023, offering insights into its asset allocation and risk exposure. Investors can analyze the specific debt instruments, interest rates, and maturity dates to assess the company's credit quality, income generation potential, and future liquidity.

Risk Assessment

Risk Level: medium — Crescent Capital BDC, Inc. shows moderate risk based on this filing. The company's investment portfolio consists of debt instruments, which carry inherent credit and interest rate risks. Specific details on interest rates and maturity dates are provided, indicating potential exposure to market fluctuations and borrower default.

Analyst Insight

Review the detailed breakdown of debt investments, interest rates, and maturity profiles to assess the company's credit risk and income stability.

Key Numbers

• 10.48% — Interest Rate (Stepping Stones Healthcare Services, LLC Unitranche First Lien Term Loan)
• 12.04% — Interest Rate (Integrated Pain Management Medical Group, Inc. Unitranche First Lien Term Loan)
• 11.46% — Interest Rate (Right Networks, LLC Unitranche First Lien Term Loan)
• 11.96% — Interest Rate (Winxnet Holdings LLC Unitranche First Lien Delayed Draw Term Loan)
• 11.67% — Interest Rate (Great Lakes Dental Partners, LLC Unitranche First Lien Term Loan)
• 12.53% — Interest Rate (Ingenio, LLC Unitranche First Lien Term Loan)
• 9.84% — Interest Rate (GH Parent Holdings Inc. Unitranche First Lien Term Loan)
• 2028-12-31 — Maturity Date (Stepping Stones Healthcare Services, LLC Unitranche First Lien Term Loan)

Key Players & Entities

• Crescent Capital BDC, Inc. (company) — Filer of the 10-K
• Wells Fargo Bank, N.A. (company) — Counterparty for a foreign currency exchange contract
• Stepping Stones Healthcare Services, LLC (company) — Investment in a Unitranche First Lien Term Loan
• Integrated Pain Management Medical Group, Inc. (company) — Investment in a Unitranche First Lien Term Loan
• Right Networks, LLC (company) — Investment in Unitranche First Lien Revolver and Term Loan
• Great Lakes Dental Partners, LLC (company) — Investment in a Unitranche First Lien Term Loan
• Ingenio, LLC (company) — Investment in a Unitranche First Lien Term Loan
• GH Parent Holdings Inc. (company) — Investment in a Unitranche First Lien Term Loan

FAQ

Risk Factors

• Credit Risk of Investments [high — financial]: The company's investments are primarily in debt instruments, exposing it to the risk of borrower default and potential loss of principal and interest.
• Interest Rate Sensitivity [medium — financial]: Fluctuations in interest rates can impact the fair value of the company's investments and its net investment income, particularly for floating-rate debt.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share CCAP The Nasdaq
• $8.6 million — ve, in the aggregate, approximately (1) $8.6 million in cash payable by the Company, (2) 6,1
• $35.0 million — ble shares of our common stock, and (3) $35.0 million in cash payable by the Adviser. This tr
• $40 billion — bal credit investment manager with over $40 billion of assets under management. With its he

Filing Documents

• ccap-20231231.htm (10-K) — 17566KB
• ccap-ex4_2.htm (EX-4.2) — 59KB
• ccap-ex19_1.htm (EX-19.1) — 40KB
• ccap-ex21_1.htm (EX-21.1) — 4KB
• ccap-ex23_1.htm (EX-23.1) — 5KB
• ccap-ex31_1.htm (EX-31.1) — 14KB
• ccap-ex31_2.htm (EX-31.2) — 15KB
• ccap-ex32.htm (EX-32) — 12KB
• ccap-ex97.htm (EX-97) — 32KB
• img244128060_0.jpg (GRAPHIC) — 190KB
• 0000950170-24-017903.txt (&nbsp;) — 55483KB
• ccap-20231231.xsd (EX-101.SCH) — 2461KB
• ccap-20231231_htm.xml (XML) — 20546KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 19 Item 1B. Unresolved Staff Comments 51 Item 1C. Cybersecurity 51 Item 2.

Properties

Properties 51 Item 3.

Legal Proceedings

Legal Proceedings 51 Item 4. Mine Safety Disclosures 51 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52 Item 6.

Selected Financial Data

Selected Financial Data 54 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 55 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 68 Item 8. Consolidated Financial Statements and Supplementary Data 69 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 163 Item 9A.

Controls and Procedures

Controls and Procedures 163 Item 9B. Other Information 163 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 163 PART III Item 10. Directors, Executive Officers and Corporate Governance 164 Item 11.

Executive Compensation

Executive Compensation 164 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 164 Item 13. Certain Relationships and Related Transactions, and Director Independence 164 Item 14. Principal Accounting Fees and Services 164 PART IV Item 15. Exhibits, Financial Statement Schedules 165 Item 16. Form 10-K Summary 167

Signatures

Signatures 168 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "would," "will," "should," "targets," "projects," and variations of these words and similar expressions identify forward-looking statements, although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The following factors and factors listed under "Risk Factors" in this report and other documents Crescent Capital BDC, Inc. has filed with the Securities and Exchange Commission, or SEC, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operation and financial position. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: uncertainty surrounding the financial stability of the United States, Europe and China; the ability of our investment adviser to locate suitable investments for us and to monitor and administer our inves

Business

Item 1. Business General We are a specialty finance company focused on lending to middle-market companies. We are incorporated under the laws of the State of Maryland. We were listed and began trading on the NASDAQ stock exchange on February 3, 2020. We have elected to be treated as a business development company ("BDC") under the Investment Company Act of 1940 ("1940 Act"). In addition, we have elected to be treated for U.S. federal income tax purposes as a regulated investment company (a "RIC") under Subchapter M of the Internal Revenue Code of 1986 (the "Code"). As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in "qualifying assets," source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income and tax-exempt interest. Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. We invest primarily in secured debt (including first lien, unitranche first lien, and second-lien debt) and unsecured debt (including mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. We may purchase interests in loans or make debt investments, either (i) directly from our target companies as primary market or private credit investments (i.e., private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated "over-the-counter" market (i.e., broadly syndicated loans and bonds). Although our focus is to invest in less liquid private credit transactions, we may from time to time invest in more liquid broadly syndicated loans to complement our private credit transactions. Our investment objective is accomplished through: accessing the origination channels that have been developed an

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View this 10-K filing on SEC EDGAR