Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q4 2023 Earnings Call Transcript

Suhail Shaikh: Hi, Robert. This is Suhail. So I’ll let Rocco pick up on the credit facility. The short answer is we didn’t have an expiration coming due. I think we’ve amended the credit facility to allow for some financial flexibility in it. With respect to secondary positions, I think the big picture response is, we’re being very selective in this marketplace from a deal flow perspective. As you know, primary deal flow for buyouts is down almost 50% year-on-year. So what we see is, frankly, a lot of that stuff we are passing on. So we’re looking at secondary investments where either we know the credit or we can leverage the broader Investcorp platform, our private equity or our liquid credit business to source ideas from. So that’s really the theory behind doing some of those investments.

And because they are somewhat more liquid than your traditional middle market loans, we can move in and out of those when we have to make room for more primary deals as they come through. So hopefully, that answers your question.

Robert Dodd: Yes. That answers that question. And there’s no maturity on the revolving credit facility, but the revolving period now has less than 12 months depends on the —

Mike Mauer: The term out goes further, the revolver ends.

Rocco DelGuercio: The Capital One facility ends in 2026.

Robert Dodd: Right. But the revolving — the reinvestment period ends in 2024.

Mike Mauer: And we’ll go back and review all that, but we’ve been working with Capital One ongoing and all those relationships are very healthy. I’ll double check that, Robert, and we’ll come back.

Robert Dodd: Yes, no worries. I appreciate it.

Operator: Our next question comes from Paul Johnson again with KBW. Paul, go ahead please.

Paul Johnson: Sorry, one more follow-up. During the remarks, you guys said that you expect to cover the distribution, I believe, next quarter. I just want to make sure, I’m clear — so are you talking about the full $0.15 distribution? Or are we talking about just simply the base distribution of $0.12?

Suhail Shaikh: No, Paul, this is Suhail. It’s the base distribution of $0.12. And to the extent there is any spillover or supplemental, that’s going to be on top of that.

Operator: Thanks very much Paul. I see no other questions in the queue. Go ahead.

Mike Mauer: Thank you. If there’s no other questions, we’ll talk to everyone next quarter. This was a long gap because of the year-end, but we’ll be talking to everyone after the September quarter. Thank you very much.

Suhail Shaikh: Thank you.

Operator: Thank you, everyone. And this concludes today’s conference call. Thank you for attending.