Investcorp Credit Management BDC Inc (ICMB) 2025 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to today's Investcorp Credit Management BDC's quarter ended September 30, 2025 earnings call.

各位女士、先生，早安，歡迎參加 Investcorp Credit Management BDC 截至 2025 年 9 月 30 日的季度收益電話會議。

It is now my pleasure to turn the floor over to Andrew Muns, Chief Financial Officer.

現在我很高興把發言權交給財務長安德魯·蒙斯。

Thank you, operator. Welcome, everyone to Investcorp Credit Management BDC's earnings call for the quarter ended September 30, 2025. I'm joined today by Suhail Shaikh, President and Chief Executive Officer of the company.

謝謝接線生。歡迎各位參加 Investcorp Credit Management BDC 截至 2025 年 9 月 30 日的季度財報電話會議。今天和我一起的是公司總裁兼執行長蘇海爾·謝赫。

I would like to remind everyone that today's call is being recorded and that this call is the property of Investcorp Credit Management BDC. Any unauthorized broadcast of this call in any form is strictly prohibited. An audio replay of the call will be available on the Investor Relations page of our website at icmbdc.com.

我想提醒大家，今天的電話會議正在錄音，本次電話會議的所有權歸 Investcorp Credit Management BDC 所有。任何形式的未經授權的廣播本次通話均被嚴格禁止。本次電話會議的錄音回放將在我們網站 icmbdc.com 的投資者關係頁面上提供。

I would also like to call your attention to the safe harbor disclosure in our press release regarding forward-looking information and remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections. We will not update forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit the company's registration statement on the SEC's EDGAR platform or our Investor Relations page on our website.

我還想提請大家注意我們新聞稿中關於前瞻性資訊的安全港披露，並提醒大家，今天的電話會議可能包含前瞻性陳述和預測。實際結果可能與這些預測有重大差異。除非法律要求，否則我們不會更新前瞻性聲明。如需我們最新的美國證券交易委員會 (SEC) 文件副本，請造訪本公司在 SEC 的 EDGAR 平台上的註冊聲明或我們網站上的投資者關係頁面。

The format for today's call is as follows: Suhail will provide an overall business and portfolio summary, and then I'll provide an overview of our results, summarizing the financials. This will be followed by Q&A.

今天的電話會議形式如下：Suhail 將提供整體業務和投資組合概要，然後我將概述我們的業績，並總結財務數據。接下來是問答環節。

At this time, I would like to turn the call over to Suhail.

此時，我想把電話交給蘇海爾。

Good morning, everyone, and thank you for joining our third quarter earnings call. We'll start with an update followed by a review of our third quarter results, current market conditions, portfolio activity, and then Andrew will walk through our financials for the quarter.

各位早安，感謝各位參加我們第三季財報電話會議。我們將首先進行最新情況匯報，然後回顧第三季業績、當前市場狀況、投資組合活動，之後 Andrew 將詳細介紹本季的財務狀況。

I'm pleased to announce that the managers parent Company continues to provide strong support for the BDC. Our Board of Directors has approved Investcorp Capital, an affiliate of Investcorp Group to provide a backstop commitment to refinance our [4.78%] new notes due April 1, 2026. When this commitment enhances our flexibility proactively addresses the near-term maturity and strengthens our balance sheet.

我很高興地宣布，管理層的母公司將繼續為 BDC 提供強有力的支持。我們的董事會已批准 Investcorp 集團的附屬公司 Investcorp Capital 為我們 2026 年 4 月 1 日到期的 [4.78%] 新票據提供再融資擔保承諾。這項承諾增強了我們的靈活性，積極應對近期成熟期問題，並加強了我們的資產負債表。

Turning to our third quarter results. We reported net investment income before taxes of $0.6 million or $0.04 per share, a decrease of $0.02 per share from the previous quarter. The sequential decline in NII was primarily driven by a decline in income earning assets due to the loss of PIK dividend income from Fusion's preferred equity position which was placed on nonaccrual status as well as portfolio repayments and our continued discipline and not chasing lower-yielding investments.

接下來來看看我們第三季的業績。我們公佈的稅前淨投資收益為 0.60 萬美元，即每股 0.04 美元，比上一季每股減少 0.02 美元。NII 的環比下降主要是由於收入來源資產的減少，這是因為 Fusion 的優先股頭寸被置於非應計狀態，導致 PIK 股息收入損失，以及投資組合償還，還有我們持續的自律，沒有追逐收益較低的投資。

Net assets declined by approximately 4% with net asset value per share increase -- decreasing to $5.04 per share from $5.27 last quarter. This was largely the result of fair value adjustments and 2 legacy borrowers and the payment of a dividend in excess of NII. Nonaccruals accounted for 4.4% of the portfolio for a fair value, up from 1.6% last quarter following the addition of Fusion's preferred equity position. Although modestly higher, sequentially, the level remains comparable to the 4.8% reported a year ago, underscoring the continued stability of the portfolio and our proactive management of underperforming credits especially legacy credits.

淨資產下降約 4%，每股淨資產值增加——從上季度的每股 5.27 美元降至每股 5.04 美元。這主要是由於公允價值調整、2 個遺留借款人以及支付超過淨利息收入的股利所致。非應計項目佔投資組合公允價值的 4.4%，高於上季的 1.6%，主要是因為增加了 Fusion 的優先股部位。儘管環比略有上升，但該水平仍與一年前報告的 4.8% 相當，這凸顯了投資組合的持續穩定性以及我們對錶現不佳的信貸（尤其是遺留信貸）的積極管理。

Overall, the portfolio remains healthy. Approximately 82% of assets at fair value are rated in the top 2 risk rating categories. Our weighted average interest coverage ratio improved to 2.3x compared to 2x a year ago, reflecting enhanced portfolio strength. Weighted average LTV remains approximately 41%, while weighted average leverage declined to 4.6x in the current period from 4.8x in the prior quarter as weighted average EBITDA increase.

整體而言，投資組合依然健康。以公允價值計算，約 82% 的資產被評為最高 2 個風險評級類別。我們的加權平均利息保障倍數從一年前的 2 倍提高到 2.3 倍，反映出投資組合實力的增強。加權平均貸款價值比仍約為 41%，而加權平均槓桿率從上一季的 4.8 倍下降至本季的 4.6 倍，原因是加權平均 EBITDA 增加。

The portfolio is broadly diversified across 18 industries with average exposure to any single company representing less than 3% of the portfolio's fair value. As we reflect on the quarter, we continue to operate in a backdrop of solid fundamentals but heightened caution. Deal flow and sponsor-led M&A remains slow with many transactions still working their way through the processes rather than closing. Refinancing and portfolio redeployment activity has also slowed compressing spreads and limiting opportunities for compelling new originations.

該投資組合廣泛分散於 18 個產業，對任何單一公司的平均投資比例均低於該投資組合公允價值的 3%。回顧本季度，我們依然在基本面穩健但高度謹慎的背景下運作。交易流程和發起人主導的併購依然緩慢，許多交易仍在進行中，尚未完成。再融資和投資組合重新部署活動也放緩了利差，限制了有吸引力的新貸款發放機會。

We remain highly selective in evaluating opportunities that meet our targeted yield and credit quality criteria. Approximately 57% of sponsor-backed private credit deals were priced with spreads below 500 basis points in the current quarter. While we actively manage the portfolio, we're not rotating into lower-yielding assets simply for growth of all deals entering our pipeline this quarter, fewer than 10% advanced to deeper diligence. Instead, our focus remains on credit quality and structural protections. We're not chasing the lowest yielding deals.

我們始終堅持嚴格篩選，只評估符合我們預期收益率和信用品質標準的投資機會。本季度，約 57% 的由發起人支持的私募信貸交易的定價利差低於 500 個基點。雖然我們積極管理投資組合，但我們並沒有為了成長而將資金輪換到收益率較低的資產中；本季度進入我們業務流程的所有交易中，只有不到 10% 的交易進入了更深入的盡職調查階段。相反，我們的重點仍然是信貸品質和結構性保障。我們不會去追逐收益率最低的交易。

Approximately 73% of our investments are in covenanted to deals. Looking ahead, we expect NII to benefit from these -- from new fundings, and we remain committed to disciplined portfolio management to drive long-term shareholder value.

我們約 73% 的投資都屬於有契約約束的交易。展望未來，我們預計 NII 將受益於這些——來自新的資金，我們將繼續致力於嚴謹的投資組合管理，以推動股東的長期價值。

I will now turn to a summary of our investment activity for the quarter. This was a lighter quarter for sure for investment activity. During the quarter ending September, we invested approximately 25,000 in the preferred equity of 4L Technologies, an existing portfolio company to support an incremental equity raise and our existing position. We also fully realized 2 portfolio company investments, generating total proceeds of $6.5 million with an IRR of approximately 12.7%.

接下來，我將總結我們本季的投資活動。本季投資活動明顯較為清淡。在截至 9 月的季度中，我們向現有投資組合公司 4L Technologies 的優先股投資了約 25,000 美元，以支持其新增股權融資和我們現有的持股。我們也完全實現了 2 項投資組合公司的投資，共產生 650 萬美元的收益，內部報酬率約 12.7%。

We realized our first lien term loan positions in PureStar listed on our SOI as AMCP Clean Acquisition Company and One Call Medical, both of which were refinanced during the quarter. Our realized IRRs from PureStar and One Call were 11.5% and 13.7%, respectively.

我們在SOI中列出的PureStar（即AMCP Clean Acquisition Company）和One Call Medical的第一留置權定期貸款頭寸已實現，這兩家公司均在本季度進行了再融資。我們從 PureStar 和 One Call 獲得的已實現內部報酬率分別為 11.5% 和 13.7%。

I'll now turn the call back over to Andrew to review our financial results in more detail.

現在我將把電話轉回給安德魯，讓他更詳細地回顧我們的財務表現。

Thanks, Suhail. Let me begin by providing you with highlights of our quarterly performance. For the quarter ended September 30, 2025, the fair value of our portfolio was $196.1 million compared to $204.1 million on March 31. Our net assets were $72.7 million, a decrease of $3.3 million from the prior quarter. Our portfolio's net decrease in net assets from operations this quarter was approximately $1.3 million, and the remaining $2 million was due to distribution of cash dividends to shareholders.

謝謝你，蘇海爾。首先，讓我為大家介紹一下我們本季的業績亮點。截至 2025 年 9 月 30 日的季度末，我們投資組合的公允價值為 1.961 億美元，而 3 月 31 日為 2.041 億美元。我們的淨資產為7,270萬美元，比上一季減少了330萬美元。本季我們投資組合的營業淨資產淨減少約 130 萬美元，剩餘的 200 萬美元是由於向股東分配現金股利。

The weighted average yield of our portfolio from debt was 10.9%, slight increase from 10.6% in the previous quarter ended June 30.

截至 6 月 30 日的上一季度，我們投資組合中債務的加權平均收益率為 10.9%，略高於 10.6%。

As of September 30, our portfolio consisted of investments in 41 companies, approximately 78% of these investments was first lien debt and the remaining 22% was invested in equity warrants and other securities. 98.5% of our debt portfolio was invested in floating rate instruments and 1.5% in fixed rate investments. The weighted average spread on our floating rate debt investments was 4.6%, relatively unchanged from the prior quarter.

截至9月30日，我們的投資組合包含41家公司的投資，其中約78%為優先擔保債務，其餘22%投資於股權認股權證和其他證券。我們債務組合中98.5%投資於浮動利率工具，1.5%投資於固定利率工具。我們浮動利率債務投資的加權平均利差為 4.6%，與上一季基本持平。

The average size per portfolio company on a fair market value basis was approximately $4.7 million or approximately 2.5% of total and our largest portfolio company investment on a fair market value basis was Bioplan at $13.4 million. Our largest industry concentrations by fair market value were professional services at 13.7%, insurance at 10.4%, containers and packaging at 8.9%, IT services at 8.5% and trading companies and distributors at 8.4%. Overall, our portfolio companies are spread among 18 GICS industries as of the quarter end, including our equity and warrant positions.

以公允市值計算，每家投資組合公司的平均規模約為 470 萬美元，約佔總額的 2.5%；以公允市值計算，我們最大的投資組合公司投資是 Bioplan，投資額為 1,340 萬美元。以公允市價計算，我們最大的產業集中度分別為：專業服務（13.7%）、保險（10.4%）、貨櫃和包裝（8.9%）、IT 服務（8.5%）以及貿易公司和經銷商（8.4%）。截至季末，我們的投資組合公司分佈在 18 個 GICS 產業，包括我們的股票和認股權證部位。

We're also pleased to announce that on November 10, 2025, the Board of Directors declared a distribution for the quarter ended December 31, 2025, of $0.12 per share and a supplemental distribution of $0.02 per share payable in cash on December 12, 2025 to stockholders of record as of December 1, 2025. Gross leverage was 1.75x and net leverage was 1.59x as of September 30, compared to 1.77x gross and 1.54x net, respectively, for the previous quarter.

我們也欣然宣布，2025 年 11 月 10 日，董事會宣布派發截至 2025 年 12 月 31 日止季度的每股 0.12 美元股息，並於 2025 年 12 月 12 日以現金方式向截至 2025 年 12 月 1 日登記在 0.02 美元的股東派發每股的股息。截至 9 月 30 日，總槓桿率為 1.75 倍，淨槓桿率為 1.59 倍，而上一季的總槓桿率為 1.77 倍，淨槓桿率為 1.54 倍。

With respect to our liquidity as of September 30, we had approximately $11.6 million of cash, of which approximately $7.8 million was restricted cash with $36.5 million of capacity under our revolving credit facility with Capital One. Additional information regarding the composition of our portfolio and quarterly financial results are included in our Form 10-Q.

截至9月30日，我們的流動資金約為1,160萬美元現金，其中約780萬美元為受限現金，另有3,650萬美元的循環信貸額度可供使用。有關我們投資組合構成和季度財務業績的更多信息，請參閱我們的10-Q表格。

With that, I would like to turn the call back over to Suhail.

接下來，我想把電話轉回蘇海爾。

Thank you, Andrew. To close, we remain focused on executing our strategy and positioning the portfolio for long-term value creation. We believe we are well positioned for the current environment with a robust portfolio of strong capital backing and a disciplined investment posture that prioritizes credit quality and income stability over yield.

謝謝你，安德魯。最後，我們將繼續專注於執行我們的策略，並為長期價值創造做好投資組合的準備。我們相信，憑藉雄厚的資本支持和穩健的投資策略（優先考慮信貸品質和收入穩定性而非收益率），我們已做好充分準備應對當前的環境。

As the broader backdrop remains uncertain, our emphasis continues to be on maintaining flexibility, protecting asset value and ensuring our dividend remains fully supported. The refinancing commitment from our parent affiliate, Investcorp Capital, underscores the confidence and ongoing support from our parent company. Further strengthening our balance sheet and providing additional financial flexibility as we navigate this environment, the $65 million commitment to refinance the [4.78%] notes, coupled with approximately 3.6 million shares held by our parent are reflective of Investcorp's strong commitment to increasing shareholder value and aligning interest.

由於大局仍不明朗，我們將持續專注於保持彈性、保護資產價值，並確保股利得到充分保障。我們的母公司 Investcorp Capital 提供的再融資承諾，凸顯了母公司對我們的信心和持續支持。為了進一步加強我們的資產負債表，並在應對當前環境時提供額外的財務靈活性，我們承諾投入 6500 萬美元對 [4.78%] 票據進行再融資，加上我們的母公司持有的約 360 萬股股份，這體現了 Investcorp 致力於提高股東價值和協調利益的堅定承諾。

While market activity remains subdued, we continue to see solid underlying portfolio performance with strong coverage metrics and healthy diversification across sectors. We remain patient and selective, ready to deploy capital when attractive opportunities arise.

儘管市場活動依然低迷，但我們繼續看到穩健的投資組合基本面表現，覆蓋率指標強勁，且各行業多元化程度良好。我們保持耐心和謹慎，隨時準備在出現有吸引力的機會時投入資金。

Thank you again for your time and continued support. We look forward to updating you on our progress next quarter. That concludes our prepared remarks. Operator, please open the line up for Q&A.

再次感謝您抽出時間並給予我們持續的支持。我們期待在下個季度向您報告我們的進展。我們的發言稿到此結束。操作員，請開啟問答環節。

Ladies and gentlemen, at this time we will conduct the question-and-answer session. (Operator Instructions)

女士們、先生們，現在我們將進行問答環節。（操作說明）

Christopher Nolan, Ladenburg Thalmann.

克里斯多福諾蘭，拉登堡塔爾曼。

Hi, thank you for taking my questions. On the backstop, could you clarify whether or not that's to buy up the full refinance amount for the maturing $65 million bond? Or is that simply just to cover principal and coupon payments from the new bonds?

您好，感謝您回答我的問題。關於後備方案，您能否澄清一下，這是否是為了購買即將到期的 6,500 萬美元債券的全部再融資金額？或者這只是為了支付新債券的本金和利息？

No, it's the former. So the backstop, Christopher, is to refinance the notes in the event that we have not refinanced them prior to the April 1, 2026 maturity debt.

不，是前者。所以，克里斯托弗，最後的保障措施是，如果我們在 2026 年 4 月 1 日債務到期之前沒有對這些票據進行再融資，那麼就對這些票據進行再融資。

Right. And is there any sort of parameters in terms of the coupons...

正確的。優惠券的使用是否有任何限制？

Yes, I believe the letter outlines it. We published and it's an exhibit to the 10-Q. We have agreed to SOFR plus 550 on a floating rate basis as the new coupon.

是的，我相信信中已經概述了這一點。我們已經出版，並且它是 10-Q 的展覽。我們已同意以 SOFR 加 550 為浮動利率作為新的票息。

Great. Second question, I guess for Andrew, what was the spillover income in the quarter, please?

偉大的。第二個問題，我想問安德魯，本季的溢出收益是多少？

Well, I think as we said last time, we don't give the specific spillover income, but I think you probably noticed in the past that our dividend has been above NII. And obviously, the amount that we've chosen to pay out is reflective of the spillback amount that's required so you could make a similar assumption for the declared dividend to be paid in December of this year.

嗯，我想正如我們上次所說，我們不提供具體的溢出收入，但我想您可能已經註意到，我們過去的股息一直高於淨利息收入。顯然，我們選擇支付的金額反映了所需的返還金額，因此您可以對今年 12 月宣布支付的股息做出類似的假設。

Right. And the final question I had is for Klein Hersh. This is nonaccrual, but the cost basis is 0 and the fair value is 0. So why keep it on the investment portfolio at all?

正確的。我最後一個問題是問克萊恩·赫什的。這是非權責發生製項目，但成本基礎為 0，公允價值為 0。那麼，為什麼還要把它保留在投資組合中呢？

The sub notes?

子註釋？

We're required to -- under accounting rules, you have to put everything on there that has any chance of being paid at any time. You see the CareerBuilder warrants are on there also marked at 0. Those were not expected to and now that, obviously, the restructuring of that is complete. It certainly will not in the future, pay anything. So that's just something we're required to do and we have had things market 0 before.

根據會計準則，我們必須把所有有可能在任何時候得到支付的款項都記入帳目。您可以看到 CareerBuilder 的認股權證也顯示為 0。這些原本並不在預期之內，而現在，很顯然，重組已經完成。將來肯定不會再支付任何費用了。所以這是我們必須做的事情，我們以前也經歷過市場零階段的情況。

Interestingly, the notes for client that are on nonaccrual actually have a 0 coupon to them. I think if they were on accrual status, we would theoretically have to amortize the 100% discount over time, which I think would distort the results pretty materially.

有趣的是，對於非應計客戶的票據，其票息實際上為 0。我認為，如果採用權責發生製，理論上我們需要在一段時間內攤銷 100% 的折扣，我認為這將對結果造成相當大的扭曲。

(Operator Instructions)

（操作說明）

I don't see any other questions, sir.

先生，我沒看到其他問題了。

Great. Excellent. Well, thank you, everyone, and we appreciate your time, and we look forward to speaking again next quarter. Thank you, Luke.

偉大的。出色的。好的，謝謝大家，感謝你們抽出時間，我們期待下個季度再次與你們交流。謝謝你，盧克。

You're welcome, sir. And this concludes today's conference call. Thank you, everyone, for attending.

不客氣，先生。今天的電話會議到此結束。謝謝各位的出席。