XML 20 R14.htm IDEA: XBRL DOCUMENT

N-2 - USD ($)
$ / shares in Units, $ in Millions

6 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Jun. 30, 2023

Dec. 31, 2022

Cover [Abstract]

Entity Central Index Key

0001633336

false

Securities Act File Number

814-01132

10-Q

Entity Registrant Name

Crescent Capital BDC, Inc.

Entity Address, Address Line One

11100 Santa Monica Blvd

Entity Address, Address Line Two

Suite 2000

Entity Address, City or Town

Los Angeles

Entity Address, State or Province

CA

Entity Address, Postal Zip Code

90025

310

Local Phone Number

235-5900

Entity Emerging Growth Company

true

Entity Ex Transition Period

false

General Description of Registrant [Abstract]

Risk Factors [Table Text Block]

Valuation Risk

We have invested, and plan to continue to invest, in illiquid debt and equity securities of private companies. These investments will generally not have a readily available market price, and we will value these investments at fair value as determined in good faith by our Adviser, as the Board's valuation designee, in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material. See Note 2. Summary of Significant Account Policies to our consolidated financial statements for more details on estimates and judgments made by us in connection with the valuation of our investments.

Interest Rate Risk

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund a portion of our investments with borrowings and our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

As of June 30, 2024, 96.9% of the investments at fair value in our portfolio were at variable rates, subject to interest rate floors. The SPV Asset Facility and SMBC Corporate Revolving Facility also bear interest at variable rates.

Assuming that our Consolidated Statement of Assets and Liabilities as of June 30, 2024 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments):

($ in millions)


Basis Point Change		Interest Income				Interest Expense				Net Interest Income (1)
Up 100 basis points			15.8				5.9				9.9
Up 75 basis points			11.8				4.4				7.4
Up 50 basis points			7.9				3.0				4.9
Up 25 basis points			3.9				1.5				2.4
Down 25 basis points			(3.9	)			(1.5	)			(2.4	)
Down 50 basis points			(7.9	)			(3.0	)			(4.9	)
Down 75 basis points			(11.8	)			(4.4	)			(7.4	)
Down 100 basis points			(15.8	)			(5.9	)			(9.9	)

(1)

Excludes the impact of income incentive fees. See Note 3 to our consolidated financial statements for more information on the income incentive fees.

Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using hedging instruments such as interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio investments.

Currency Risk

From time to time, we may make investments that are denominated in a foreign currency. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio

positions from changes in currency exchange rates. As of June 30, 2024, we had £16.9 million, AUD $29.3, and SEK 11.6 notional exposure to foreign currency forward contracts related to investments totaling £17.2 million, AUD $29.3, and SEK 11.6 at par.

$ 18.78

$ 15.14

$ 20.3

$ 20.04

$ 19.58

$ 19.83

Capital Stock, Long-Term Debt, and Other Securities [Abstract]

Long Term Debt [Table Text Block]

Debt


($ in millions)	June 30, 2024																December 31, 2023
	Aggregate Principal Amount Committed				Drawn Amount				Amount Available (1)				Carrying Value(2)				Aggregate Principal Amount Committed				Drawn Amount				Amount Available (1)				Carrying Value(2)(3)
SPV Asset Facility	$	500.0			$	356.1			$	143.9			$	356.1			$	500.0			$	329.8			$	170.2			$	329.8
SMBC Corporate Revolving Facility		385.0				235.1				149.9				235.1				385.0				225.5				159.5				225.5
Series 2021A Unsecured Notes		135.0				135.0				—				135.0				135.0				135.0				—				135.0
FCRX Unsecured Notes		111.6				111.6				—				111.6				111.6				111.6				—				111.6
Series 2023A Unsecured Notes		50.0				50.0				—				50.0				50.0				50.0				—				50.0
Total Debt	$	1,181.6			$	887.8			$	293.8			$	887.8			$	1,181.6			$	851.9			$	329.7			$	851.9

(1)

The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments.

Amount presented excludes netting of deferred financing costs. Unsecured Notes

On July 30, 2020, we completed a private offering of $50.0 million aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023 (the “Series 2020A Unsecured Notes”). The Series 2020A Unsecured Notes were issued in two $25.0 million issuances on July 30, 2020 and October 28, 2020. On July 28, 2023, Series 2020A Unsecured Notes were repaid upon the issuance of the Series 2023A Unsecured Notes, as defined below.

Series 2021A Unsecured Notes

On February 17, 2021, we completed a private offering of $135.0 million aggregate principal amount of 4.00% senior unsecured notes due February 17, 2026 (the “Series 2021A Unsecured Notes”). The initial issuance of $50.0 million of Series 2021A Unsecured Notes closed February 17, 2021. The issuance of the remaining $85.0 million of 2026 Unsecured Notes closed on May 5, 2021.

General Description of Registrant [Abstract]

Risk [Text Block]

Valuation Risk

We have invested, and plan to continue to invest, in illiquid debt and equity securities of private companies. These investments will generally not have a readily available market price, and we will value these investments at fair value as determined in good faith by our Adviser, as the Board's valuation designee, in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material. See Note 2. Summary of Significant Account Policies to our consolidated financial statements for more details on estimates and judgments made by us in connection with the valuation of our investments.

General Description of Registrant [Abstract]

Risk [Text Block]

Currency Risk

From time to time, we may make investments that are denominated in a foreign currency. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio

positions from changes in currency exchange rates. As of June 30, 2024, we had £16.9 million, AUD $29.3, and SEK 11.6 notional exposure to foreign currency forward contracts related to investments totaling £17.2 million, AUD $29.3, and SEK 11.6 at par.

Interest Rate Risk [Member]

General Description of Registrant [Abstract]

Risk [Text Block]

Interest Rate Risk

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund a portion of our investments with borrowings and our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

As of June 30, 2024, 96.9% of the investments at fair value in our portfolio were at variable rates, subject to interest rate floors. The SPV Asset Facility and SMBC Corporate Revolving Facility also bear interest at variable rates.

Assuming that our Consolidated Statement of Assets and Liabilities as of June 30, 2024 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments):

($ in millions)


Basis Point Change		Interest Income				Interest Expense				Net Interest Income (1)
Up 100 basis points			15.8				5.9				9.9
Up 75 basis points			11.8				4.4				7.4
Up 50 basis points			7.9				3.0				4.9
Up 25 basis points			3.9				1.5				2.4
Down 25 basis points			(3.9	)			(1.5	)			(2.4	)
Down 50 basis points			(7.9	)			(3.0	)			(4.9	)
Down 75 basis points			(11.8	)			(4.4	)			(7.4	)
Down 100 basis points			(15.8	)			(5.9	)			(9.9	)

(1)

Excludes the impact of income incentive fees. See Note 3 to our consolidated financial statements for more information on the income incentive fees.

Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using hedging instruments such as interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio investments.

Series 2020A Unsecured Notes

Capital Stock, Long-Term Debt, and Other Securities [Abstract]

Long Term Debt, Title [Text Block]

Series 2020A Unsecured Notes

Long Term Debt, Principal

$ 50.0

Long Term Debt, Structuring [Text Block]

5.95% senior unsecured notes due July 30, 2023

Series 2021A Unsecured Notes

Capital Stock, Long-Term Debt, and Other Securities [Abstract]

Long Term Debt, Title [Text Block]

Series 2021A Unsecured Notes

Long Term Debt, Principal

$ 135.0

Long Term Debt, Structuring [Text Block]

4.00% senior unsecured notes due February 17, 2026The Series 2021A Unsecured Notes will mature on February 17, 2026 and may be redeemed in whole or in part, at our option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Interest on the Series 2021A Unsecured Notes is due and payable semiannually in arrears on February 17 and August 17 of each year.

FCRX Unsecured Notes

Capital Stock, Long-Term Debt, and Other Securities [Abstract]

Long Term Debt, Title [Text Block]

FCRX Unsecured Notes

Long Term Debt, Principal

$ 111.6

Long Term Debt, Structuring [Text Block]

The FCRX Unsecured Notes mature on May 25, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company’s option at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The FCRX Unsecured Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30,September 30 and December 30 of each year.

Series 2023A Unsecured Notes

Capital Stock, Long-Term Debt, and Other Securities [Abstract]

Long Term Debt, Title [Text Block]

Series 2023A Unsecured Notes

Long Term Debt, Principal

$ 50.0

Long Term Debt, Structuring [Text Block]

7.54% senior unsecured notes due July 28, 2026

The Series 2023A Unsecured Notes will mature on July 28, 2026 and may be redeemed in whole or in part, at our option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Interest on the Series 2023A Unsecured Notes is due and payable semiannually in arrears on January 28 and July 28 of each year.