Crescent BDC NAV Falls Again After Fee Cuts
Net investment income was $0.36 a share in the quarter ended June 30, 2026, and NAV per share was $17.82.
Crescent Capital BDC, Inc. (CCAP) reported net investment income of $0.36 a share for the quarter ended June 30, 2026, down from $0.42 a share in the prior quarter, as the business development company’s book of middle-market loans continued to shrink and the weighted average yield on income-producing securities slipped.
Net income was a loss of $0.09 a share. Net realized losses, net of taxes, widened to $17.7 million from $11.6 million in the first quarter. Unrealized results flipped to a $1.3 million gain from a $19.4 million loss. Net assets resulting from operations decreased $3.3 million.
NAV per share was $17.82 at June 30, 2026, after a $19.10-to-$18.27 drop in the prior quarter. Total net assets were $656.5 million.
Investment income was $36.3 million, compared with $37.9 million in the three months ended March 31, 2026. The decrease was primarily driven by lower dividend income from its Logan JV investment and reduced accelerated amortization and prepayment fee income, reflecting lower repayment and refinancing activity. Those items were partially offset by higher recurring interest income.
Interest income, which includes amortization of upfront fees, accelerated amortization of original issue discount and prepayment fees, increased modestly to $34.7 million from $34.5 million. Accelerated OID amortization related to investment repayments was $0.2 million, versus $0.6 million in the prior quarter. Dividend income decreased to $1.2 million from $3.0 million, primarily reflecting lower distributions from the Logan JV. Other income was $0.4 million in both periods.
Total net expenses, including income and excise taxes, were $23.2 million, compared with $22.4 million in the first quarter.
The weighted average yield on income-producing securities at cost slipped to 9.6% from 9.8% at March 31, continuing a decline from 10.0% two quarters earlier. Ninety-eight point four percent of debt investments were at floating rates.
Investments at fair value were $1,570.7 million across 192 portfolio companies, versus $1,562.5 million at March 31. Unitranche first lien loans remained the largest slice at $1,039.2 million, or 66.2% of the book. Senior secured first lien was $373.9 million, or 23.8%. Equity and other was $69.2 million.
For the quarter, the company invested $57.0 million across three new portfolio companies and several follow-on revolver and delayed draw fundings. Aggregate exits, sales and repayments were $36.1 million, versus $92.7 million in the year-ago quarter.
As of June 30, the company had $35.7 million in cash and cash equivalents and restricted cash and $199.6 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average cost of debt was 6.13%. Net debt-to-equity was 1.37x.
Subsequent to the first-quarter close, the company reduced its fee structure, lowering its base management fee from 1.25% to 1.00% and its incentive fee from 17.5% to 15.0%, effective April 1, 2026.
The board declared a third-quarter 2026 regular cash dividend of $0.34 a share, matching the second-quarter declaration, payable October 15, 2026, to stockholders of record as of September 30, 2026. The second of three previously announced $0.03 a share special dividends is scheduled for September 15, 2026. A third special dividend is set for December 15, 2026. Regular distributions paid in the quarter were $0.42 a share, with $0.03 a share of special distributions.