Investcorp Credit Management BDC Inc (ICMB) 2025 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to today's Investcorp Credit Management BDC's quarter ended December 31, 2025, earnings call. It is now my pleasure to turn the floor over to Andrew Muns, Chief Financial Officer.

各位女士、先生，早安，歡迎參加 Investcorp Credit Management BDC 截至 2025 年 12 月 31 日之季度財報電話會議。現在我很榮幸將會議交給財務長 Andrew Muns。

Thank you, operator. Welcome, everyone, to Investcorp Credit Management BDC's earnings call for the quarter ended December 31, 2025. I'm joined today by Suhail Shaikh, President and Chief Executive Officer of the company.

謝謝，接線員。各位好，歡迎參加 Investcorp Credit Management BDC 截至 2025 年 12 月 31 日之季度財報電話會議。今天與我一同出席的還有本公司總裁兼執行長 Suhail Shaikh。

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.

提醒各位，今天的電話會議將被錄音，且本次會議內容為 Investcorp Credit Management BDC 之財產。任何形式之未經授權轉播均嚴格禁止。本次會議的音訊重播將於我們網站 icmbdc.com 的投資人關係頁面提供。

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.

同時請各位留意我們新聞稿中有關前瞻性資訊的安全港揭露，並提醒各位今天的電話會議可能包含前瞻性陳述與預測。實際結果可能與這些預測存在重大差異。

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.

除非法律要求，否則我們不會更新前瞻性陳述。如需取得我們最新的 SEC 申報文件副本，請造訪 SEC 的 EDGAR 平台上本公司的註冊聲明，或我們網站的投資人關係頁面。

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

今天會議流程如下：Suhail 將提供整體業務與投資組合摘要，接著我將概述我們的業績並彙總財務數據。之後將進行問答。

Please note that today's discussion will focus on our financial results. As stated in our press release, we do not intend to comment further regarding the review unless or until it determines that further disclosure is appropriate or necessary.

請注意，今天的討論將聚焦於我們的財務結果。如同我們新聞稿所述，除非或直到公司認定進一步揭露屬適當或必要，否則我們不打算就該審查再作進一步評論。

As such, we will not be taking questions on the strategic review process during today's call. Management will be pleased to address questions related to our quarterly financial statements and business operations.

因此，今天的電話會議將不接受有關策略性審查流程的提問。管理團隊很樂意回答與我們季度財務報表及業務營運相關的問題。

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

此刻，我想將電話會議交給 Suhail。

Good morning, everyone, and thank you, Andrew. And thank you, everyone, for joining our December 31, 2025, quarter ended earnings call. As a reminder, ICMB provides flexible capital solutions to middle-market companies, primarily through first lien senior secured debt.

各位早安，謝謝你，Andrew。也謝謝各位參加我們截至 2025 年 12 月 31 日之季度財報電話會議。提醒各位，ICMB 主要透過第一順位留置權之優先擔保債務，為中型市場公司提供具彈性的資本解決方案。

Our disciplined underwriting approach focuses on downside protection while generating income for shareholders. We will begin with an update on the business, a review of our fourth-quarter results and portfolio activity, and then Andrew will walk you through our financials in greater detail.

我們嚴謹的承作／授信審核方法著重於下行保護，同時為股東創造收益。我們將先更新業務狀況、回顧第四季業績與投資組合活動，接著 Andrew 會更詳細帶各位檢視財務數據。

Before we dive into the details, here are the key takeaways from the quarter. We formed a special committee of independent directors to review strategic alternatives and maximize value for shareholders. We successfully refinanced the $65 million notes due April 1 with new unsecured notes maturing in 2029.

在深入細節之前，先說明本季的重點摘要。我們成立由獨立董事組成的特別委員會，以審視策略性替代方案並為股東價值最大化。我們已成功將 4 月 1 日到期的 6,500 萬美元票據再融資，改以 2029 年到期的新無擔保票據。

NAV per share declined to $4.25, primarily driven by fair value adjustments and dividend payout in excess of net investment income. Nonaccruals increased to 6.9% of the portfolio at fair value with Easy Way added to nonaccrual. We remain focused on liquidity, capital preservation and disciplined underwriting in a still uncertain market environment.

每股淨資產價值（NAV）降至 4.25 美元，主要受公允價值調整及股利發放高於淨投資收益所致。由於 Easy Way 被列入停止計息（nonaccrual），停止計息資產占投資組合公允價值的比重上升至 6.9%。在仍不確定的市場環境下，我們將持續專注於流動性、資本保全與嚴謹的承作／授信審核。

As announced in our earnings press release, the Board of the company has formed a special committee of independent directors to review strategic alternatives to maximize value for shareholders and in parallel has decided to not declare a quarterly dividend for the current quarter. In addition, on March 30, we successfully refinanced the $65 million 4.875% notes due April 1 with new $65 million unsecured notes provided by our advisers affiliate. The unsecured notes bear a floating rate coupon of SOFR plus 550 basis points and are due on July 1, 2029.

如我們財報新聞稿所公布，本公司董事會已成立由獨立董事組成的特別委員會，以審視策略性替代方案、為股東價值最大化，並同時決定本季不宣告季度股利。此外，於 3 月 30 日，我們成功將 4 月 1 日到期的 6,500 萬美元、票面利率 4.875% 票據再融資，改由我們顧問之關係企業提供新的 6,500 萬美元無擔保票據。該無擔保票據之浮動利率票息為 SOFR 加 550 個基點，並於 2029 年 7 月 1 日到期。

The market environment, macroeconomic, and geopolitical uncertainty continues to shape the operating backdrop. Credit markets have remained open, but deal activity in our segment of the market has stayed below historical norms as sponsor-driven transaction volumes have yet to recover in a meaningful way. Our focus on disciplined underwriting and active portfolio management has not changed, and we remain in active dialogue with management teams and sponsors of our portfolio companies.

市場環境、總體經濟與地緣政治不確定性持續形塑營運背景。信貸市場仍維持開放，但我們所處市場區隔的交易活動仍低於歷史常態，因由贊助商主導的交易量尚未出現具意義的復甦。我們對嚴謹承作／授信審核與積極投資組合管理的專注不變，並持續與投資組合公司之管理團隊及贊助商保持密切對話。

Turning to our fourth-quarter results, ICMB reported net investment income before taxes of $0.3 million or $0.02 per share before taxes, a decrease of $0.02 per share from the previous quarter. The sequential decline in NII was primarily driven by a reduction in income-producing assets, including the placement of Easy Way's term loan on nonaccrual and an increase in professional fees and other expenses that is typically experienced in the December quarter.

回到第四季業績，ICMB 稅前淨投資收益為 30 萬美元，或每股稅前 0.02 美元，較前一季每股下降 0.02 美元。淨投資收益（NII）季減主要係因生息資產減少所致，包括 Easy Way 的定期貸款被列入停止計息，以及 12 月季度通常會出現的專業費用與其他費用增加。

Nonaccruals increased to 6.9% of the portfolio at fair value compared to 4.4% last quarter, driven by the addition of Easy Way, as mentioned above. Easy Way is a manufacturer of customizable outdoor furniture products sold through retail channels.

停止計息資產占投資組合公允價值的比重由上季的 4.4% 上升至 6.9%，主要因如前所述新增 Easy Way。Easy Way 為可客製化戶外家具產品製造商，透過零售通路銷售。

Net assets declined approximately 16% sequentially from the prior quarter, with net asset value per share decreasing to $4.25 from $5.04 in the previous quarter. This was largely the result of fair value adjustments and the payment of a dividend in excess of NII.

淨資產較前一季約下降 16%，每股淨資產價值由前一季的 5.04 美元降至 4.25 美元。這主要是公允價值調整以及股利支付金額高於淨投資收益所致。

These fair value adjustments primarily reflect changes in market valuation levels and updated exit timing assumptions in the current environment rather than broad-based deterioration across the rest of the portfolio. The portfolio remains diversified across 18 industries with no single investment representing more than approximately 3% of fair value.

這些公允價值調整主要反映在目前環境下市場估值水準的變動，以及對退出時點假設的更新，而非投資組合其餘部分出現全面性惡化。投資組合仍分散於 18 個產業，且沒有任何單一投資占公允價值的比重超過約 3%。

I would also like to note that our software exposure represented less than 3% of fair value at quarter end. Our focus during the quarter was on liquidity management. Hence, our new investment activity remained muted.

我也想補充說明，截至季末我們對軟體產業的曝險占公允價值比重低於 3%。本季我們的重點在於流動性管理。因此，我們的新投資活動仍相對有限。

During the quarter, ending December, we invested $1.5 million in the first lien term loan of Axiom Global, an existing portfolio company to fund the dividend to existing shareholders. Axiom is a leading provider of flexible expert legal talent for enterprise customers. We have been investing in Axiom across our platform since February 2021. Our yield at cost is approximately 8.8%.

在截至 12 月的本季期間，我們對既有投資組合公司 Axiom Global 的第一順位留置權定期貸款投資 150 萬美元，用以資助向既有股東發放股利。Axiom 是為企業客戶提供彈性專家級法律人才的領先供應商。自 2021 年 2 月起，我們即透過整體平台持續投資 Axiom。我們的成本收益率約為 8.8%。

In the same period, we fully realized three portfolio company investments totaling $8.2 million in proceeds with an IRR of approximately 10.6%. This included the full realization of two term loan investments in existing portfolio companies, CareerBuilder and LABL, as well as our preferred equity investment in Advanced Solutions International, which was recapitalized during the quarter.

同一期間，我們完全實現（fully realized）三項投資組合公司投資，合計取得 820 萬美元款項，內部報酬率（IRR）約為 10.6%。其中包括對既有投資組合公司 CareerBuilder 與 LABL 的兩筆定期貸款投資之全數實現，以及我們對 Advanced Solutions International 的優先股投資；該公司於本季完成資本重整（recapitalized）。

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

接下來我把電話會議交給 Andrew，請他更詳細檢視我們的財務結果。

Thanks, Suhail. Let me begin by providing you with highlights of our quarterly performance. For the quarter ended December 31, 2025, the fair value of our portfolio was $172.7 million compared to $196.1 million on September 30.

謝謝你，Suhail。我先提供本季表現重點摘要。截至 2025 年 12 月 31 日之季度，我們投資組合的公允價值為 1.727 億美元，較 9 月 30 日的 1.961 億美元下降。

Our net assets were $61.3 million, a decrease of $11.4 million from the prior quarter. This quarterly change in net assets consisted of a $9.4 million decrease from operations and a $2 million decrease related to our dividend, which was paid in excess of NII for the quarter.

我們的淨資產為 6,130 萬美元，較前一季減少 1,140 萬美元。本季淨資產變動包括營運造成的 940 萬美元減少，以及與本季股利相關的 200 萬美元減少；該股利支付金額高於本季的淨投資收益（NII）。

The weighted average yield of our debt portfolio was 10.6%, a small decrease of 31 basis points from the September quarter. As of December 31, our portfolio consisted of 37 borrowers. Approximately 81% of these investments were in first lien debt and the remaining 19% was invested in equity, warrants and other positions. 98% of our debt portfolio was invested in floating rate instruments and 2% in fixed rate instruments.

我們債務投資組合的加權平均收益率為10.6%，較9月季度小幅下降31個基點。截至12月31日，我們的投資組合包含37名借款人。約81%的投資為第一順位擔保債務，其餘19%投資於股權、認股權證及其他部位。98%的債務投資組合投資於浮動利率工具，2%投資於固定利率工具。

The weighted average spread on our floating rate debt investments was 4.5%, which is relatively unchanged from the prior quarter. The average investment size per portfolio company on a market value basis was approximately $4.7 million or 2.7%, and our largest portfolio company investment on a fair market value basis, Bioplan, $11.4 million.

我們浮動利率債務投資的加權平均利差為4.5%，與前一季度相比大致不變。以市值計算，每家投資組合公司的平均投資規模約為470萬美元或2.7%；而以公允市值計算，我們最大的一筆投資組合公司投資為Bioplan，金額為1,140萬美元。

Our largest industry concentrations by fair market value were professional services at 14.5%, IT services at 9.2%, insurance at 8.9%, diversified consumer services at 8.6%, and commercial services and supplies at 7.9%. Overall, our portfolio companies are spread among 18 GICS industries as of quarter end, including our equity and warrant positions.

按公允市值計算，我們最大的產業集中度為：專業服務14.5%、IT服務9.2%、保險8.9%、多元化消費者服務8.6%，以及商業服務與用品7.9%。整體而言，截至季度末（包含我們的股權與認股權證部位），我們的投資組合公司分布於18個GICS產業。

Gross leverage at the end of the quarter was 2.02 times and net leverage was 1.78 times compared to 1.75 times gross and 1.59 times net, respectively, for the previous quarter. We paid down approximately $14 million of debt in February. On a simple pro forma basis, had this pay down occurred on December 31, our net leverage would have been closer to 1.8 times, while our reported year-end net leverage remains 1.78 times. This pay down improved our asset coverage ratio from 150% to 155%.

本季度末的總槓桿為2.02倍、淨槓桿為1.78倍；上一季度分別為總槓桿1.75倍與淨槓桿1.59倍。我們於2月償還約1,400萬美元的債務。以簡單的備考（pro forma）基礎計算，若該次償還發生在12月31日，我們的淨槓桿將更接近1.8倍；而我們年末所報告的淨槓桿仍為1.78倍。此次償還使我們的資產覆蓋率由150%提升至155%。

With respect to liquidity, as of December 31, we had approximately $15 million in cash, of which approximately $10.4 million was restricted cash. In addition, we had $41.1 million of unused commitment under our revolving credit facility with Capital One, of which approximately $8.7 million was available under our borrowing base. Additional information regarding the composition of our portfolio and quarterly financial results are included in our Form 10-K.

就流動性而言，截至12月31日，我們約有1,500萬美元現金，其中約1,040萬美元為受限制現金。此外，我們在Capital One的循環信貸融資項下尚有4,110萬美元未動用承諾額度，其中約870萬美元可在我們的借款基礎（borrowing base）下動用。關於我們投資組合構成及季度財務結果的更多資訊，已載於我們的Form 10-K。

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

接下來，我想把電話交回給Suhail。

Thank you, Andrew. As we reflect on the quarter, we are operating in an environment with elevated uncertainty both -- across both the macro backdrop and broader market sentiment. Our priorities are clear: preserving capital, maintaining disciplined underwriting, and actively managing our nonaccrual positions.

謝謝你，Andrew。回顧本季度，我們所處的環境不確定性升高——無論是宏觀背景或更廣泛的市場情緒皆然。我們的優先事項很明確：保全資本、維持嚴謹的承作（underwriting）紀律，並積極管理我們的停計息（nonaccrual）部位。

To summarize, we have formed a special committee to pursue strategic alternatives focused on maximizing shareholder value. We refinanced our April notes and extended our maturity profile, and our portfolio remains predominantly first seen with broad industry diversification.

總結而言，我們已成立特別委員會，以尋求以股東價值最大化為重點的策略替代方案。我們已為4月到期票據完成再融資並延長到期結構，而我們的投資組合仍以第一順位為主，且具廣泛的產業分散。

While we expect market conditions to remain challenging in the near term, we believe our focus on liquidity and risk management positions ICMB to navigate this period and pursue opportunities as they arise. We appreciate your continued support and look forward to updating you on our progress next quarter.

雖然我們預期短期內市場狀況仍將充滿挑戰，但我們相信，對流動性與風險管理的專注，使ICMB得以度過此一期間，並在機會出現時加以把握。感謝各位持續支持，並期待在下個季度向各位更新我們的進展。

That concludes our prepared remarks. We will now open it up for questions regarding our quarterly financial performance and business operations. As noted earlier, we will not be commenting further on the strategic review. Operator, please open the line up for Q&A.

以上為我們事先準備的發言。接下來我們將開放提問，問題可聚焦於本季度財務表現與業務營運。如先前所述，我們將不再就策略檢討（strategic review）進一步評論。接線員，請開放問答。

(Operator Instructions) Our first question comes from Justin Scott, Lammergeier Research.

(接線員指示) 我們的第一個問題來自Lammergeier Research的Justin Scott。

Hello. First of all, I'd like to applaud the forming of the special committee. I know you can't take any questions on it, but I think we can all see that, unfortunately, it's an economic necessity for the fund.

您好。首先，我想肯定成立特別委員會的作法。我知道你們不能就此回答任何問題，但我想大家都看得出來，遺憾的是，這對基金而言是經濟上的必要之舉。

Just back of the envelope, fees and expenses of running this fund have now $0.48 a share. The additional interest on the shift from the previous loan notes costing the fund 4.9% to the current ones -- 9.1%, add another $0.19 per share. So $0.67 per share of fees and expenses and additional interest, which is 15.8% of the net assets or 42% of the share price.

粗略估算一下，營運這檔基金的費用與支出現在已達每股0.48美元。此外，從先前成本為4.9%的貸款票據轉換到目前成本為9.1%的票據，額外利息再增加每股0.19美元。因此，費用與支出加上額外利息合計每股0.67美元，約占淨資產的15.8%或股價的42%。

Obviously, no matter how hard your team tries, those are unattainable investment skills to generate a return for the fund. So I fully understand why you had to do it. Obviously, most of the investors are in here for income, but applaud the decision. And I know you can't comment about the options you're looking into.

顯然，不論你們團隊多努力，這都需要難以達成的投資能力才能為基金創造報酬。所以我完全理解你們為何必須這麼做。顯然，多數投資人是為了收益而來，但我肯定這項決定。我也知道你們無法評論正在評估的選項。

One thing I'd like to ask is whether anything is being done to -- I'm trying to put this tactfully -- closer align the interest of the manager with the shareholders, given that the fees that the manager takes and now with the new loan, the interest that the affiliate of the manager is earning is a very substantial part of the assets of the fund and whether during the interim period as you're doing the review, whether the manager will consider reducing their fees somewhat.

我想問的一點是，是否有任何措施——我盡量委婉地說——能讓管理人的利益與股東更緊密一致；因為管理人收取的費用，以及在新貸款下管理人關係企業所賺取的利息，已占基金資產相當大的一部分。以及在你們進行檢討的過渡期間，管理人是否會考慮適度調降費用。

Justin, thank you for your question, and thank you for your opening remarks as well. Look, I think, as you can see from our financials, we have been waiving fees on an ongoing basis, even when the fund is performing slightly better in a slightly better environment. So that tool always exists for us and if we have to. But I think what I more importantly note is you should think about the managers sort of alignment with the shareholders.

Justin，謝謝你的提問，也謝謝你一開始的發言。你可以從我們的財務報表看到，即使在基金表現稍好、環境也稍佳時，我們仍持續在免收（waive）費用。因此，這個工具對我們而言一直存在，必要時我們也會使用。但我更想強調的是，你應該從管理人與股東的利益一致性來看待這件事。

If an affiliate of the manager just provided $65 million of capital to refinance the notes, affiliate of the manager also owns about 25% of the shares. So I think we are -- we consider ourselves fully aligned with shareholders, and we'll use whatever means necessary to keep that alignment going. Hopefully, that answers your question.

管理人的關係企業剛提供了6,500萬美元資金用於票據再融資，而該關係企業也持有約25%的股份。因此，我們認為自己與股東是完全一致的，並會採取一切必要手段來維持這種一致性。希望這回答了你的問題。

Thank you. It's just that you are earning a substantial amount of money during the period when the fund is open, and I just concerned about that affecting the motivation. Basically, the adviser is going to be earning about $10 million in interest and fees during this period, and I think time is not on your side. And I guess I'm saying don't dilly-dally, so to speak.

謝謝。只是你們在基金仍開放運作的期間賺取了相當可觀的金額，我擔心這會影響動機。基本上，顧問在這段期間將透過利息與費用賺取約1,000萬美元，而我認為時間並不站在你們這邊。我想說的是，請不要拖拖拉拉。

Understood.

了解。

(Operator Instructions) I currently don't see anyone with questions, but again, if you do have one --

(接線員指示) 我目前沒有看到任何人提問，但再次提醒，如果你有問題--

If no more questions, Luke, I think we can conclude the call, and thank you again for everyone joining in. And we look forward to talking to you again next quarter, and we'll see you then. Thank you, Luke.

如果沒有更多問題，Luke，我想我們可以結束本次電話會議，再次感謝各位參與。我們期待在下個季度再次與各位交流，到時見。謝謝你，Luke。

Thank you, everyone. And this concludes today's conference call. Thank you for attending.

謝謝各位。今天的電話會議到此結束。感謝各位出席。