Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q1 2024 Earnings Call Transcript

Mike Mauer: Yes. And I know, as you said, we spoke about it on the last call, this is — since this is the first quarter after the annual call, we don’t have the normal, I’ll call it, 90 days in between calls. It’s a short period in. We have been in and we are of course, we haven’t tried to accelerate those. There’s nothing that’s dragging, but we have an ongoing dialogue with them. It’s going through what I would call a normal process. We do not anticipate any issues with Capital One as our revolver provider.

Operator: And our last question comes from Christopher Nolan with Ladenburg Thalmann.

Christopher Nolan: Any guidance you can give in terms of where you think leverage is going to be, particularly in light of the increase in nonaccruals? And should we expect an excise dividend — excuse me, excise tax in 2024, given the lack of a supplement?

Mike Mauer: Rocco, do you want to take the excise tax?

Rocco DelGuercio: Yes. So excise tax for sure. A few years back, many of you guys know, a lot of the BDCs, they’ll keep the excise distribution and pay the tax on it because it’s a cheap form of financing. So, we will have an excise tax in it. It’s kind of been — if you look at the financial statements, it’s kind of going to be the same one over and over the same one that we pay in the past.

Mike Mauer: And Chris, on the leverage side, there’s two pieces. There is the ratio and there’s a nominal. So leverage, we would expect to decrease our nominal amount because we have brought our NAV down. And so, we continue to focus around the 1.25 to 1.5, which means that absolute borrowings will decrease from a target perspective to be in that range.

Operator: Thank you very much. And after that, we have no questions in the queue.

Mike Mauer: Thank you everyone. We look forward to the next call in about 90 days. Thank you.

Suhail Shaikh: Thank you everyone.

Operator: Thank you everyone. This concludes today’s conference call. Thank you for attending.