The following is a summary of the Investcorp Credit Management BDC, Inc. (ICMB) Q2 2024 Earnings Call Transcript:
Financial Performance:
Investcorp Credit Management's Q2 net investment income was $1.58 million or $0.11 per share, a slight decrease of about 3% from the previous quarter.
Portfolio's fair value reduced from $223.4 million to $207.4 million in Q2 while the net assets also dropped from the previous quarter to $78.8 million.
Despite decreases in other areas, weighted average yield of their debt portfolio increased from 11% to 11.5%.
Gross leverage was at 1.7x, slightly above guidance, with net leverage at 1.51x.
The net asset value per share fell approximately 6% to $5.48 per share from $5.83 per share due to changes in the valuations of two investments.
A Q2 distribution of $0.12 per share and a supplemental distribution of $0.03 per share was declared, payable on April 5, 2024.
Business Progress:
The company had 44 borrowers at the end of the year, with a significant 85% of their investments in first lien. The remaining 15% was invested elsewhere.
Positions on nonaccrual dropped to 4.6%, compared to 10% as of the previous quarter.
Investcorp has entered a sale agreement for 1888.
The company is continuing its focus on diversifying its portfolio, currently investing in 44 borrowers against 25 industries, an increase from 37 borrowers and 19 industries in the previous year.
During Q2, the company invested approximately $19.1 million in five new portfolio companies and one existing company.
On the other hand, it received repayments totaling approximately $29.2 million from four investments.
The weighted average EBITDA of the portfolio increased from $55.6 million to $59.9 million by the end of Q2 2024.
The company realized full positions in four portfolio companies with respective IRRs of 10.8%, 8.7%, and 22.2%.
The company's strategy will maintain a focus on capital preservation and a stable dividend.
More details: Investcorp Credit Management BDC IR
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