CCAP earnings call transcript, November 9, 2026

...and 25% of total dollars committed. Competition for attractive credit remains, even as portions of the non-traded BDC market continue to face redemption pressure. In this environment, our longstanding sponsor relationships and familiarity with existing borrowers allow us to remain selective on credit quality structure. Despite subdued new activity, the Crescent private credit platform remained active. Committing approximately 1.5 billion of capital during the third quarter. As we emphasized last quarter, CCAP remains an important part. The permanent fee reductions implemented earlier this year demonstrate Crescent's economic commitment to those objectives. And today, we're building on that commitment with several actions designed to drive nav accretion by capturing the-

First, our board has authorized a 50 million share repurchase program for the purpose of repurchasing shares of our common stock in the open market at certain thresholds below our net asset value per share in accordance with applicable law. We believe our current share price materially undervalued- CCAP making repurchases at substantial discounts to NAB a compelling use of available capital. In addition to the CCAP repurchase program, Crescent's parent entity Sun Life will purchase up to an additional- $25 million of shares in the open market at certain thresholds below our net asset value per share in accordance with applicable law. This commitment underscores Sun Life's confidence in CCAP's long-term value and further strength- alignment of Sun Life, Crescent, and the leadership team with CCAP's shareholder. The timing, manner, price, and amount of any share repurchases under the CCAP Repurchase Program- and the Sun Life Purchase Program will be determined by the company and Sun Life, respectively. In their respective discretion, based upon the evaluation of economic and market conditions, stock price, applicable legal and regulatory- requirements and other factors. In order to accelerate share repurchase activity, we expect to announce the formation of an unconsolidated joint venture. The joint venture is expected to be seeded with approximately one- $250 million of performing first lien assets from CCAP. CCAP expects to commit $30 million of equity to the joint venture along with a $30 million expected equity contribution from the joint venture equity partner.

In addition to the equity contributions, the joint venture is expected to be capitalized with an ABL facility. We are targeting a low to mid-teens ROE at the joint venture, which we expect to be accretive to our... The joint venture is expected to be completed during the fourth quarter of 2026. CCAP expects to use the proceeds from the JV to reduce leverage to our target range and fund share repurchases. Together, we believe these actions support our deleveraging objectives and create opportunities for per-share accretion. Finally, I'd like to highlight a recent announcement regarding Crescent's broader platform. On October 26, Sun Life announced Green Oak, a unified global brand bringing together Crescent, BGO, Infrared Capital Partners, SLC Fixed Income, and Advisors Asset Management. The platform represents approximately $326 billion in assets under management across credit, real estate, and infrastructure, supported by a global distribution network. The brand transition will take place over the next 12 months. On the fixed income side, Green Oak brings together Crescent's alternative credit expertise and SLC fixed income's investment grade public and private credit capabilities, providing a broader range of investment solutions and opportunities. For CCAP, our investment processes, investment committees, and investment personnel remain unchanged. We will continue to manage the portfolio with the same discipline underwriting approach and focus on income generation and capital preservation, supported by the resources and reach of the broad

Eric Reno platform. With that, I'll turn the call over to Gerhard to review our third quarter financial results in more detail. Gerhard.

And covered, compared to the second quarter, total investment income increased by... ...approximately 0.6 million to 36.9 million. Interest income increased by approximately 0.9 million to 35.6 million. This was offset by lower dividend income, which... ...declined to approximately 0.9 million from 1.2 million, primarily reflecting lower distributions from the legacy Logan JV as the vehicle continues to run off and deleverage.

Total expenses and excise taxes remain stable at 23.2 million, with modestly higher financing costs offset by lower income.

This is the balance sheet. Our investment portfolio totaled approximately $1.6 billion at fair value as of September. $53 million was $17.72 per share. On slide 9, we provide a graphical analysis of the quarter-over-quarter change in NAV. We recorded $0.06 per share of net realized losses, largely offset by reversals of previously recognized unrealized losses on those investments. Net unrealized depreciation, including these reversals, totaled $0.04 per share. Valuation movements reflected slight spread widening, while company-specific credit movements were broadly neutral. Overall, portfolio valuations were generally stable, with NAV per share changing from $17.82 to $17.72. Let's shift to our capitalization and liquidity. I'm on slide 18. Our debt-to-equity ratio remained... ...or 1.36 times net of balance sheet cash times net. And the gross debt outstanding declined to approximately $924 million. From $935 million. In cash, cash equivalents and restricted cash totaled approximately $36 million at quarter. While leverage ended the quarter above our long-term target range, we continue to make... ...maintain sufficient liquidity. With approximately $247 million of cash and available borrowing to pass, we expect that pending portfolio realizations and the previously discussed joint venture will bring net leverage... ...to within our target range by year-end. Our board declared a fourth quarter dividend of $0.34 per share. We will also pay the third and final previously announced special dividend of $0.03 per share on December 15th.

A supplemental dividend framework remains in effect, although no supplemental dividend is payable for the...and with that, I'll turn it over to Henry to discuss the portfolio.

We ended the quarter with approximately $1.6 billion of investments at fair value across 190 portfolio companies. The portfolio remains highly diversified with an average investment size of approximately 0.5%. And 91% invested in senior first lien loans. The broader portfolio continues to perform generally in line with their underwriting expectations, with the majority of portfolio companies demonstrating resilient operating performance and year-over-year even... Approximately 84% of investments remained rated 1 or 2, indicating performance at or above expectations. Our weighted average portfolio risk rating remained at 2.1. And weighted average interest coverage improved to 2.3 times. Turning to slide 16, our watch list increased modestly from 15% to 16% of the portfolio at fair value, driven by three rated and average interest rates. And that was a good question. Investments increasing from 12% to 13%. Investments rated four and five declined from approximately 3% to 2.4%. We had no new non-accruals during the quarter. Non-accruals declined. 4.8% to reflecting the sale of a small legacy First Eagle investment previously on non-accrual. Measured against the total investment portfolio at cost, non-accruals were 4.4%. Moving to investment activity, with leverage currently above our target range, our new investment activity was limited during the third post-deployment, totaled $24 million, the majority of which...

...consisted of follow-on investments in existing portfolio companies. Aggregate exits, sales, and repayments totaled approximately $39 million, resulting in net realizations of approximately $15 million for the quarter. I'll turn it back to Jason for closing remarks.

Before we open the call for questions, I'd like to leave you with a few closing thoughts. The primary focus remains the rotation of our... ...watch list. The work remains ongoing and active portfolio management remains a critical component. Crescent's alignment with our shareholder... ...of CCAP. Today's $50 million share repurchase authorization and separate $25 million investment by Sun Life built on the permanent fee reductions implemented earlier this year. These initiatives demonstrate... ...with the continued commitment of Crescent and Sun Life to CCAP. Finally, we look forward to the opportunities for greater collaboration across the Greenoak platform. A unified market approach combined with the continuity... ...investment teams and disciplined investment processes. Positions us to build on more than three decades of private C-CAP's share. On behalf of the entire Crescent team... ...I'd like to thank our shareholders for their continued support and confidence. Operator, we'd now be happy to take your questions.

Your first question comes from the line of Christopher Nolan with Leidenberg Thalman. Your line is open. Please go ahead.

Your line is open. Please go ahead.

Key Schlein with ClearStreet. Your line is open. Please go ahead.