Crescent Capital BDC (CCAP) Earnings Transcript

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Date

Thursday, Feb. 26, 2026 at 12 p.m. ET

Call participants

• Chief Executive Officer — Jason A. Breaux
• Chief Investment Officer — Henry Sahn Chung
• Chief Financial Officer — Gerhard Pieter Lombard

Takeaways

• Net Investment Income -- $0.45 per share, a decrease from $0.46 per share in the prior quarter, driven by lower interest income due to lower reference rates.
• Dividend Coverage -- Net investment income covered the $0.42 per share quarterly dividend by 107% in the fourth quarter.
• Net Asset Value (NAV) Per Share -- $19.10 as of year-end, down from $19.28 at September 30, with the decline "reflect(ing) unrealized losses stemming from certain portfolio companies."
• Investment Portfolio -- $1.6 billion at fair value, spread across 184 companies, averaging 0.6% position size per company to limit concentration risk.
• Portfolio Composition -- 91% in first lien loans, and 99% in sponsor-backed companies at year end.
• Loan-to-Value -- Weighted average loan-to-value at origination was approximately 40% across the portfolio.
• Covenant Protection -- 71% of the portfolio includes covenants, well above levels typical in the upper middle market or broadly syndicated loan market.
• Gross Deployment -- $71 million in the fourth quarter, including five new platform investments totaling $29 million at a weighted average spread of approximately 490 basis points; remaining $42 million comprised incremental investments in existing companies.
• Exits, Sales, and Repayments -- $78 million in the quarter, leading to net realizations of approximately $7 million.
• Weighted Average Yield -- 10% at cost for income-producing securities, down 40 basis points sequentially, primarily due to lower base rates.
• Interest Coverage -- Portfolio companies reported a weighted average interest coverage of 2.2x at year end.
• Portfolio Risk Ratings -- Weighted average remained at 2.1; one- and two-rated investments comprised 86% of the portfolio by fair value, declining from 87% in the prior quarter.
• Nonaccrual Investments -- Increased to 4.1% by cost and 2.0% by fair value at year end; pro forma post-January activity reduced these to 3.2% and 1.4%, respectively.
• Debt-to-Equity Ratio -- 1.25x gross (1.2x net of cash), within the target range of 1.1x to 1.3x.
• Senior Unsecured Notes -- $185 million structured across three tranches, with $135 million funded in February and $50 million to be funded in May, extending more than 90% of committed debt maturities to 2028 or later.
• Liquidity -- $242 million in undrawn capacity (subject to restrictions), and over $30 million in cash at year end.
• Spillover Income -- Approximately $1.16 per share, nearly three times the base dividend.
• Supplemental Dividend Policy -- Remains in place but was not triggered for the quarter due to the NAV measurement test, which applies a two-quarter NAV look-back.
• Buyback Program -- Active share repurchases continued in accordance with the previously announced plan, with capital deployment balanced between buybacks and new investments based on pipeline assessment.
• Strategic Review -- Management and the Board are actively evaluating options relating to long-term earnings durability, including a review of fee structure and base dividend level, with a planned update in May.

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Risks

• Management explicitly cited "earnings headwinds" across the BDC sector due to lower base rates, and noted a "decline" in NAV per share over several quarters driven by unrealized losses from certain portfolio companies.
• Nonaccrual investments increased to 4.1% of cost and 2.0% of fair value, with management stating the rate "is higher than our long-term average" and derives from company-specific issues rather than systemic factors.
• No supplemental dividend was paid for the fourth quarter because the NAV measurement test, using a two-quarter look-back, was not met due to recent NAV declines.

Summary

Crescent Capital BDC (NASDAQ:CCAP) reported lower net investment income per share and a decline in NAV per share, citing unrealized portfolio losses and lower base rates as primary drivers. Management highlighted a portfolio composition heavily weighted to first lien and sponsor-backed loans, alongside broad diversification and strong covenant protection. Active origination resulted in new investments and gross deployment of $71 million, while liquidity was bolstered by newly issued senior unsecured notes that extend debt maturities into 2028 and beyond.

• Management confirmed that spillover income of $1.16 per share provides additional support for future dividends amid a changing rate environment.
• Pro forma nonaccruals fell in January after a sale and restructuring, though the nonaccrual rate remains above historical averages.
• A strategic review of fee structure and dividend policy is ongoing, with management stating that "a more fulsome update" will be shared at the next quarterly call in May.
• The active buyback program persists, but is managed in tandem with capital deployment opportunities in the investment pipeline, reflecting discipline in balancing returns and pipeline quality.

Industry glossary

• First Lien Loan: Debt secured by a borrower's assets with highest repayment priority in the event of default.
• Nonaccrual: Loans for which the company is no longer recognizing interest income due to significant doubt about collectibility.
• Spillover Income: Undistributed taxable income retained for future dividend payments.
• Loan-to-Value: The ratio of outstanding loan amount to the appraised value of collateral, indicating the equity cushion available to the lender.
• PIK DDTL: Payment-in-kind delayed draw term loan; a loan structure allowing the borrower to draw down capital in tranches and optionally pay interest with additional debt rather than cash.
• ARR Loan: Loan underwritten against annual recurring revenue streams, typical in software lending but expressly not utilized by CCAP.

Full Conference Call Transcript

Jason A. Breaux: Thank you, Dan. Hello, everyone, and thank you all for joining us. I will start today's call by summarizing our results and outlook and follow that with some commentary on the current market environment. In terms of fourth quarter earnings, we reported net investment income of $0.45 per share, as compared to $0.46 for the prior quarter. Once again, our earnings over-earned the quarterly dividend. Consistent with our dividend policy, at fourth quarter earnings, our Board declared a quarterly cash dividend of $0.42 per share for 2026, payable on 04/15/2026 to stockholders of record as of 03/31/2026. Net asset value was $19.10 per share as of December 31, compared to $19.28 per share at September 30.

This decline reflects unrealized losses stemming from certain portfolio companies. While NAV per share has declined over the past several quarters, reflecting market volatility and certain credit-specific marks during 2025, we believe it is important to view our performance over a longer horizon. The broader portfolio remains fundamentally healthy, with stable credit metrics, strong sponsor support, and performance in line with our underwriting expectations. Since inception, Crescent Capital BDC, Inc. has maintained one of the more stable NAV profiles across the public BDC sector, supported by our disciplined underwriting, diversified positioning, and a focus on senior secured sponsor-backed companies, which we have maintained throughout our history.

Capital preservation remains core to our strategy, and we are actively managing the portfolio to maintain consistent long-term NAV stability. I would now like to touch on our outlook for Crescent Capital BDC, Inc.'s earnings power and dividend sustainability. First, while lower base rates have impacted yields across the space, Crescent Capital BDC, Inc. remains well-positioned today. For the fourth quarter, net investment income covered our base dividend by 107%. We ended the year with net debt to equity of 1.2x, below the 1.30x upper end of our target range, preserving flexibility to prudently grow the portfolio and deploy capital through Crescent Capital BDC, Inc.'s origination platform.

Crescent Capital BDC, Inc.'s private credit platform has been active with over $6.5 billion of capital committed in 2025, including over $1.7 billion during the fourth quarter. Our existing portfolio remains one of our most active origination channels, with add-ons representing over half of our transactions over the same period. We are also encouraged by the recent increase in transaction activity in Q4 and early 2026. As origination and refinancing volumes normalize, structuring fees and accelerated amortization income can serve as incremental contributors to earnings. In addition, our spillover income of approximately $1.16 per share, which is nearly 3x our base dividend, continues to provide meaningful support as we navigate the current rate transition.

All of that said, we fully recognize the earnings headwinds facing the entire BDC space related to forward base rate expectations. As such, we and our Board are actively reviewing a range of options to ensure Crescent Capital BDC, Inc. is positioned to deliver durable earnings and attractive returns across market cycles, and we expect to provide a more fulsome update on our plans and any actions stemming from that review in May when we report next quarter's results. We look forward to updating you further next quarter. Let me now shift gears and discuss what we are seeing in our market. We are operating in an increasingly competitive private credit market.

Capital formation across direct lending strategies has remained strong, with a growing number of lenders competing for high-quality sponsor-backed transactions. This has resulted in tighter spreads and evolving deal structures, particularly in the broadly syndicated and upper end of the middle market. In this environment, maintaining underwriting discipline and strong structural protections remains essential. Within private equity, the past three years have been characterized by subdued exit activity, with sponsors favoring recapitalizations and dividend transactions over traditional M&A to generate liquidity in a muted market. This has created a backlog of portfolio companies awaiting monetization. As rate pressures ease and financing markets stabilize, we are seeing sponsors selectively reengage in the M&A market to deliver liquidity to their limited partners.

At the same time, elevated redemption activity in the perpetual non-traded BDC space may potentially contribute to a more balanced supply-demand dynamic. Overall, we continue to view the long-term outlook for private credit favorably. Disciplined underwriting, thoughtful selectivity, and active portfolio management remain essential to driving strong performance. With that, I will turn it over to Henry Sahn Chung to provide additional detail on our portfolio and recent investment activity.

Dan McMahon: Henry?

Henry Sahn Chung: Thanks, Jason. Please turn to Slides 13 and 14. We ended the year with approximately $1.6 billion of investments at fair value across a highly diversified portfolio of 184 companies, with an average investment size of approximately 0.6% of the total portfolio. We believe disciplined position sizing is one of the most effective tools for managing idiosyncratic credit risk. Broad diversification across industries, end markets, sponsors, and issuers helps limit concentration risk and supports durable performance across market cycles. Since inception, our portfolio has consistently been comprised primarily of first lien loans, representing 91% of the portfolio at fair value at year end.

Our investments are supported by well-capitalized, experienced private equity sponsors, with 99% of our debt portfolio in sponsor-backed companies as of year end. At origination, the weighted average loan-to-value of the portfolio is approximately 40%, underscoring the meaningful equity buffer beneath us. We believe conservatively capitalizing the portfolio companies is a key driver of downside protection and recovery potential across cycles. It is also worth noting that 71% of our portfolio includes covenants, far higher than in the upper middle market or broadly syndicated loan market. We view covenants as an important risk management tool, providing earlier visibility into potential issues and a structured framework to engage early with sponsors if performance softens.

In terms of software and services, we have been investing in the sector for over fifteen years, applying a consistent underwriting approach throughout. Our focus has always been on durable, cash flow-generating businesses that deliver mission-critical, enterprise-embedded software with high switching costs, where the cost of failure or disruption is prohibitively high for customers. This long-standing discipline has guided how we underwrite technology risk across multiple innovation cycles, and we believe our approach is inherently defensive against AI-driven disintermediation risk. Today, software and services represent approximately 20% of our portfolio, and we continue to apply the same cash flow-based underwriting principles that have guided us for decades.

Consistent with this approach, we do not invest in any annual recurring revenue, or ARR, loans. Please turn to Slide 15, where we highlight our recent activity. Gross deployment in the fourth quarter totaled $71 million, as you can see on the left-hand side of the page. During the quarter, we closed five new platform investments totaling $29 million. Even as spreads have tightened, our focus remains on high-quality companies with strong credit profiles. These new investments were loans to private equity-backed companies with a weighted average spread of approximately 490 basis points, with Crescent Capital BDC, Inc. serving as lead or agent on all the new platform investments.

The remaining $42 million came from incremental investments in our existing portfolio companies. The $71 million in gross deployment compares to approximately $78 million in aggregate exits, sales, and repayments, resulting in net realizations of approximately $7 million for the fourth quarter. Turning back to the broader portfolio, please flip to Slide 16. The weighted average yield on our income-producing securities at cost decreased 40 basis points quarter-over-quarter, ending the year at 10%. This decline was primarily driven by lower base rates following the recent rate cuts. Importantly, we remain disciplined in our deployment approach, prioritizing credit quality, structural protections, and long-term risk-adjusted returns over maximizing headline yield.

Weighted average interest coverage of the companies in our investment portfolio at year end improved to 2.2x, demonstrating durability and strength within the earnings at our underlying portfolio companies. As a reminder, this calculation is based on the latest annualized base rate each quarter. Please flip to Slide 17, which shows the trends in internal performance ratings. Overall, we have seen stability in the fundamental performance of our portfolio, resulting in consistency in our risk ratings and a weighted average portfolio risk rating of 2.1.

On the right-hand side of the slide, you will see that one- and two-rated investments, representing names that are performing at or above our underwriting expectations, decreased from 87% to 86% quarter-over-quarter, continuing to represent the lion's share of our portfolio at fair value. As a percentage of debt investments at cost and fair value, nonaccruals increased from 3.3%/1.6% as of September 30 to 4.1%/2.0% as of December 31, driven by the addition of two new nonaccrual investments during the fourth quarter. It is worth noting that in January, one nonaccrual investment restructured and another was fully realized via a sale, which decreased pro forma nonaccruals to 3.2%/1.4% of debt investments at cost and fair value.

Given our highly diversified portfolio and acquired assets, we continue to have a nonaccrual rate that is higher than our long-term average. We are actively managing these portfolio investments and note that these are driven by idiosyncratic, company-specific issues. The broader portfolio remains healthy, and we continue to observe demonstrable growth across the majority of our portfolio companies. With that, I will now turn it over to Gerhard Pieter Lombard.

Gerhard Pieter Lombard: Thanks, Henry, and hello, everyone. For the fourth quarter ending 12/31/2025, we reported net investment income of $0.45 per share as compared to $0.46 for the prior quarter. This decrease was largely driven by lower interest income due to lower reference rates. Turning to the balance sheet, as of 12/31/2025, our investment portfolio's fair value totaled $1.6 billion, consistent with the prior quarter. Total net assets were $706 million, and NAV per share was $19.10, a decrease from $19.28 at the end of the third quarter due primarily to net unrealized depreciation of the portfolio. Let us shift to our capitalization and liquidity. I am on Slide 19.

As a reminder, in October, we proactively priced $185 million of senior unsecured notes structured across three tranches, with a delayed draw feature. We intentionally incorporated the delayed funding feature to align proceeds with our 2026 maturity schedule, allowing us to efficiently address our unsecured maturities while minimizing negative carry. The first two tranches totaling $135 million closed on February 17. The final $50 million tranche will fund in May, in advance of additional 2026 maturities. Pro forma for this activity, over 90% of our committed debt now matures in 2028 or later, meaningfully extending our maturity profile and enhancing balance sheet flexibility.

We remain in active dialogue with our underwriting partners regarding additional unsecured issuance, as we continue to thoughtfully manage our maturity ladder and optimize our capital structure over time. The weighted average stated interest rate on our total borrowings was 5.83% as of year end, down from 5.99% quarter-over-quarter due to lower base rates. Our quarter-end debt-to-equity ratio was 1.25x, or 1.2x net of balance sheet cash, up from the prior quarter but within our stated target range of 1.1x to 1.3x.

With $242 million of undrawn capacity, subject to leverage, borrowing base, and other restrictions, and over $30 million of cash and cash equivalents as of year end, we have sufficient liquidity to selectively further fund investment activity while maintaining a debt-to-equity ratio inside our target range. As Jason noted, for 2026, our Board has declared our regular dividend of $0.42 per share. I will now turn it back to Jason A. Breaux for closing remarks.

Jason A. Breaux: Thank you, Gerhard. In closing, while 2025 presented a more dynamic environment across both rates and credit markets, we believe Crescent Capital BDC, Inc. enters 2026 from a position of strength. Our portfolio remains highly diversified and predominantly first lien, supported by experienced sponsors and meaningful equity cushions. We have maintained prudent leverage, enhanced the duration of our liabilities, and preserved liquidity to navigate a range of market conditions. At the same time, our Board and management team are thoughtfully evaluating additional steps to further strengthen our earnings profile and long-term return framework in alignment with shareholder interests. Private credit continues to offer compelling opportunities for disciplined lenders with scale and selectivity.

Crescent Capital BDC, Inc. has been investing in private credit and delivering consistent returns to our investors across multiple cycles over the past thirty years. Crescent Capital BDC, Inc.'s focus remains clear: protect capital, enhance sustainable earnings power, and deliver attractive risk-adjusted returns for shareholders over the long term. We appreciate your continued support and look forward to updating you next quarter. Operator, please open the line for questions.

Operator: Thank you. You will need to press star then the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Your first question comes from the line of Robert James Dodd with Raymond James. Your line is open.

Robert James Dodd: Hi, guys. I know you do not talk about this because you said you will give us more information next quarter, but you opened the door to questions about exactly what you will be reviewing with the Board and long-term position, et cetera. I mean, is this you talking about a discussion of dividend structure? Because obviously, in context of long-term dividend or more strategic initiatives, as you also mentioned in context of like an—so I know you want next time, but can you give us like a skeleton to hang some thoughts on at least about what kind of things you mean when you made that comment?

Jason A. Breaux: Hi, Robert. Go ahead, Henry.

Henry Sahn Chung: Hey, Robert. This is Henry. I think I can start off by providing that our review here is really focused on long-term earnings durability and creating a proper alignment with shareholders. What that includes, with respect to your question about a skeleton here, is it includes an evaluation of our fee structure as well as our base dividend level relative to forward earnings expectations. As we alluded to, we will plan to have more detailed commentary on both going forward in the following quarter here, but what I will say is that we believe that we are positioned well currently for near-term stability.

We are operating from a position of strength today by over-earning the dividend, and what we really want to do here is proactively adapt to what we are potentially expecting to be a lower-rate environment, which obviously has implications for us as a predominantly floating-rate asset base. As a result, in terms of the key focus areas, those are the two that I would point you to as we think about this broader review.

Robert James Dodd: Got it. Thank you. Very helpful. One quick one and then another one. In January, you said there was another—one was sold. Was it sold at the mark or repaid at par? Or can you give us—and we will see it eventually. And that obviously lowered nonaccruals fairly significantly, I think.

Henry Sahn Chung: Yes. The investment was realized at close to the mark.

Robert James Dodd: Got it. One second. Then about the future in the business. It sounded like you might be a little bit optimistic that maybe spreads will widen depending on fund flows and other things. Can you give us more thoughts? If spreads do widen, how optimistic are you that the activity levels stay robust? Because they have started to pick up a little bit, but partly that is because spreads have been tight. Can you reconcile that thought for us?

Henry Sahn Chung: I would say on the latter point, the spreads—and you can see this in terms of where we have been originating new investments—have largely been consistent within that 475 to 500 basis points over for new first lien, new tranche investments for the better part of the last three to four quarters. In conjunction with that stability, despite that we are still at historical lows in terms of LBO activity, that activity really started to creep up towards the end of last quarter and also at the beginning of this year.

We certainly think that as deal activity continues, there is potential to capture excess spread in certain pockets where we are seeing a little bit more, I would say, price discovery, but more broadly, I would say that in the near term, the expectation is spreads are stabilized for high-quality assets that are first lien in that 475 to 500 basis points over, for context. In terms of broader LBO activity as a whole, the year did start off quite active, and we were pleased with how we were seeing deployment at the beginning of the year.

I think just given more broadly what is going on, we are watching closely how the financing markets react as well as the broader LBO markets, but I would say that we certainly had an optimistic start in terms of the pipeline to the year.

Robert James Dodd: Got it. I appreciate it. Thank you.

Operator: Your next question comes from the line of Mickey Max Schleien with Clear Street. Your line is open.

Mickey Max Schleien: Yes. Good morning or good afternoon wherever you may be. Just a couple of questions from me. Could you give us a little bit more color on the main drivers of the realized gain during the quarter and the unrealized losses?

Henry Sahn Chung: Mickey, thanks for the question. The main driver of the realized gain was an investment that was sold during the quarter. We had an investment that was previously on nonaccrual several years ago, MTS, that we ended up realizing at above our cost basis, so that transaction closed during the fourth quarter. In terms of the unrealized losses, the largest drivers this quarter were related to our two investments that we placed on nonaccrual this quarter, Generate and Transportation Insight.

The former relates to an investment where the outlook for the business has certainly degraded and, as a result, we marked it accordingly, and then Transportation Insight is an investment that we have spoken about the sector in the past, but it is indexed to the third-party logistics sector, and we have continued to see challenges in that space. So that has been the other large driver on a quarter-to-quarter basis.

Mickey Max Schleien: I understand. If you could just repeat the pro forma nonaccruals as of the activity in January? I did not get a chance to write it down quickly enough.

Henry Sahn Chung: Yes. It is approximately 100 basis points on cost of nonaccruals that we are expecting to come out of the portfolio. So on a pro forma basis, it is 1.4% of fair value and 3.2% of cost.

Mickey Max Schleien: Terrific. And lastly, at a high level, can you give us some background on the rationale for rotating proceeds from portfolio repayments into new investments instead of taking advantage of the deep discount to NAV that the stock is offering?

Henry Sahn Chung: I want to remind you that the current buyback program does remain in place, and we have been buying back shares in the market. When we announced our repurchase program last year, one of the key considerations with respect to our buyback program is weighing the buybacks in relation to what we are seeing in the investment pipeline. As stated at that time, our goal with Crescent Capital BDC, Inc. is to make investments in private credit investments that provide durable long-term income for shareholders.

How we think about deploying excess capital as we get reinvestments is weighing that against our pipeline and determining the relative attractiveness of new deals that we have on our investment pipeline relative to simply providing incremental ROE vis-à-vis share repurchases. What we have seen with the quality of the investment pipeline today is that there is still a lot of benefit in terms of being able to provide that durable income by reinvesting proceeds. As a result, we are taking a balanced approach where we are continuing to execute on our buyback plan that we initially announced, but we are maintaining the overall asset base and continuing to invest in new investments as they come through the pipeline.

Mickey Max Schleien: Okay. I understand. And lastly, I understood you have noted that you may be examining the dividend policy down the road. But as we sit today, is the supplemental dividend policy still in place?

Henry Sahn Chung: Yes. That is correct. The supplemental dividend is still in place. As a reminder, we do have a measurement test that is put in place with respect to the supplemental. As a result of that measurement test this quarter, there will not be a supplemental dividend that is paid related to Q4 earnings, but that construct remains in place.

Mickey Max Schleien: And the constraint is probably related to declines in NAV. Is that correct?

Henry Sahn Chung: That is correct. It is a two-quarter look-back with respect to NAV on the supplemental measurement test.

Mickey Max Schleien: I understand. Those are all my questions today. I appreciate your time. Thank you.

Henry Sahn Chung: Thank you.

Operator: Next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Your line is open.

Christopher Nolan: Henry, in your comments, you indicated that software and services was 20% of the portfolio. On page 14, it says 15%. Did you just misspeak, or was there a change in exposure there?

Henry Sahn Chung: The software and services as a total of our portfolio, based on the industry breakdown, is 20%. Was there a specific—or sorry, which page are you referring to, Chris?

Christopher Nolan: I believe page 14 of the deck. I am looking at the—I believe that is—I might be looking at the upper right-hand donut. It could be there is another section that has a similar color, so it could be my mistake.

Henry Sahn Chung: I am looking at our stats here, and it is 20% on page 14.

Christopher Nolan: Okay. No problem. The 15% is—

Henry Sahn Chung: Control and professional services.

Christopher Nolan: Got it. They are shaded sort of similar. Okay. Thank you. On the topic of software and services, is the plan—or does the firm still intend—for any of those maturing investments to reinvest into software or to lower the exposure going forward?

Henry Sahn Chung: It is a good question. With respect to software, there are a couple of comments that I want to make—first, with respect to the performance of our software investments and then second, to your question on the underwriting approach and the outlook. What we have seen within our software portfolio to date is that the performance has been quite strong. We are seeing both revenue and EBITDA growth across our portfolio within software as well as the monster deleveraging that has coincided with strong fundamental performance there. As you think about how we underwrite software—and we made this comment earlier—this is a sector that we have been investing alongside our sponsors for over fifteen years.

Disintermediation has been a critical component of our underwriting thesis from the very beginning of investing in this space. What we really do look for is software that demonstrates mission-critical system roles, deep workflow integration demonstrating a system-of-record type value proposition, as well as software that operates in highly regulated end markets where there is a high cost of failure. We also focus on the actual value proposition that is being provided to customers—not so much whether or not it is just difficult for the software to be replaced—but do the customers actually like the product they are using, and are we seeing supporting trends in those software investments vis-à-vis the retention stats?

Our experience has demonstrated that these attributes tend to provide durable cash flows in these investments and, as a result, to the extent that we do see new software investments that exhibit these characteristics, we will continue to find a home for these in our portfolio, and we think that they certainly provide good credits to add to our portfolio today. A couple of other notes I will make here with respect to software: in our software investments, we are in a first lien position and we are not the equity. Why that is important is we have an equity cushion beneath us that is supported by cash contributions from private equity sponsors.

The other piece I will note—particularly important in the market we are in today—is we do not do any ARR loans. We do not do structured loans such as PIK DDTLs. We are not just focused on the enterprise value of the underlying software companies; we are also focused on the current cash flows—what is available to service our debt—and, in situations that may require it, what is available to delever our capital structure and reduce our risk. We continue to think that there are attractive opportunities here and, with the shakeout that is happening in the broader marketplace, there will continue to be so.

We want to really articulate that the focus and discipline that has allowed us to have success investing in this space historically will continue to be maintained, and it is one that has served us well historically and one that we think will continue to serve us well going forward.

Christopher Nolan: Great. Thank you.

Operator: There are no further questions at this time. I will turn the call back over to Jason A. Breaux for closing remarks.

Jason A. Breaux: Okay, operator. Thank you. Once again, everyone, we appreciate your time today and your interest in Crescent Capital BDC, Inc., and we look forward to providing you with another update for our first quarter earnings in May. Thanks all.

Operator: That concludes today's call. Thank you all for joining, and you may now disconnect.

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