Crescent Capital BDC, Inc.

For Q2 2026, CCAP reported net investment income of $0.36 per share, down from $0.38 per share in the prior quarter excluding a one-time incentive fee waiver, and above the $0.34 base dividend. NAV per share was $17.82 at June 30, down from $18.27 in the prior quarter, and the company paid a $0.03 per share special dividend during the quarter. Total investment income declined by about $1.6 million quarter over quarter, driven mainly by lower dividend income and lower realization activity. The investment portfolio was approximately $1.6 billion at fair value, total net assets were $656 million, and debt-to-equity was 1.42x, or 1.37x net of cash. For guidance, the board declared a regular third-quarter dividend of $0.34 per share and the company will pay the second $0.03 special dividend on September 15; management said leverage should move back within its target net leverage range during the second half of the year, all else equal, and no supplemental dividend will be paid for the quarter under the framework.

Jason Breaux said CCAP’s near-term priorities are rotating watchlist investments and deleveraging to the target range, with the revised fee and dividend framework designed to support those goals and improve long-term earnings power. He highlighted that the lower management and incentive fees became effective April 1 and described the structure as one of the most competitive in the public BDC sector. His tone was constructive but candid: he acknowledged continued pressure in NAV and nonaccruals, while stressing stronger lending conditions, a deep origination pipeline, and continued support from Sun Life.

Gerhard Lombard said Q2 NII was $0.36 per share versus $0.42 in Q1 reported and $0.38 excluding the first-quarter fee waiver. He explained the sequential decline in income was mainly due to lower dividend income from the Logan JV, reduced accelerated amortization and prepayment fee income, partly offset by higher interest income from positive net deployment and restructurings, plus the benefit of lower fees now fully reflected. On the balance sheet, he noted $1.6 billion of investments at fair value, $656 million of net assets, leverage of 1.42x debt-to-equity, $200 million of available borrowing capacity, and $36 million of cash and cash equivalents. He also cited $162 million of maturing fixed-rate debt repaid, facility upsizes of $100 million to $500 million and $25 million to $335 million, and an extension of unsecured maturities to 2028 and beyond.

Analysts focused on the repeated NAV declines, asking whether the issue was slower-than-expected turnarounds or mark-to-market discipline. Henry Chung said the company is being proactive on watchlist classification and is marking assets based on the latest operating performance and outlook, emphasizing that these workouts can take more than a quarter or a year or two to resolve. Another question addressed growth and M&A; Jason Breaux said CCAP remains a core strategic vehicle and that growth opportunities are always considered, but the immediate priority is cleaning up NAV pressure and nonaccruals. On the final question, management said recent underperformance reflects some normalization from higher defaults and more aggressive 2021-2022 vintages, while also noting that some challenged First Eagle assets are unique to CCAP.