Crescent Capital BDC Announces New Note Purchase Agreement

Crescent Capital BDC, Inc. (NASDAQ:CCAP) has recently made an important announcement regarding its financial activities. On December 20, 2024, the company entered into a third supplement to its existing Note Purchase Agreement. This new agreement allows for the issuance of senior unsecured notes totaling up to $35.0 million that are set to mature on February 18, 2028, referred to as the 2028 Notes. Additionally, the agreement includes $80.0 million in senior unsecured notes maturing on February 18, 2030, known as the 2030 Notes. The collective term for these two issuances is the Series 2024A Notes.

The Third Supplement, which includes the company and qualified institutional investors, enhances the existing Note Purchase Agreement originally established on July 30, 2020. The 2028 Notes will carry a fixed interest rate of 6.77%, while the 2030 Notes will have a slightly higher fixed interest rate of 6.90%. Payments on interest will commence on August 18, 2025, and will be made on a semiannual basis.

Funds raised from these notes are primarily earmarked for repaying certain existing debts, potentially including any outstanding amounts under the company's debt facilities, as well as for general corporate purposes. Crescent Capital BDC, Inc. retains the ability to reborrow under its debt facilities, aiming for investments in portfolio companies aligned with its strategic investment objectives.

The Series 2024A Notes will be regarded as general unsecured obligations, and they will rank equally with the existing unsecured, unsubordinated debts of the company. The Note Purchase Agreement is based on standard provisions typical for senior unsecured notes issued during a private placement, which include both affirmative and negative covenants.

It’s important to note that the Series 2024A Notes have been offered in accordance with Section 4(a)(2) of the Securities Act of 1933, which means they are not registered under the Securities Act or any state securities laws. The company has stated that this announcement does not constitute an offer to sell or a solicitation to purchase the Notes or any other securities in any jurisdiction where such actions would be illegal.

For those interested in more detailed information, including the specific provisions of the agreement, copies of the Third Supplement and the Master Note Purchase Agreement can be inspected as they have been filed with the Securities and Exchange Commission.

This transaction represents a strategic move for Crescent Capital BDC, Inc. and may influence its financial structure and future growth prospects.

About Crescent Capital BDC

Crescent Capital BDC, Inc. operates as a business development company that focuses on private equity investments, buyouts, and loan funding. The organization primarily engages in direct investments, specifically targeting the middle market within the United States.

finance, bonds, investment