Company: FCRX
Filing Date: 2025-02-03
Form Type: N-2/A
Source: 0001193125-25-018583
Chunk: 26

Company: Crescent Capital BDC, Inc.
Filing Date: 2025-02-03
Form: N-2/A
Chunk 26
---
 service our indebtedness, we may have to take actions such as selling assets or seeking additional equity. There can be no assurance that any such actions, if necessary, could be effected on commercially reasonable terms or at all, or on terms that would not be disadvantageous to stockholders or on terms that would not require us to breach the terms and conditions of our existing or future debt agreements. There can also be no assurance that we will meet an annual return of approximately $63.5 million, which we must meet in order to cover annual interest or dividend payments on our senior securities.

As a BDC, we are generally required to meet a coverage ratio of total assets to total borrowings and other senior securities, which include all of our borrowings and any preferred stock that we may issue in the future, of at least 150%. If this ratio declines below 150%, we will not be able to incur additional debt and could be required to sell a portion of our investments to repay some debt when we are otherwise disadvantageous for us to do so. This could have a material adverse effect on our operations, and we may not be able to make distributions.

The amount of leverage that we employ will depend on the Advisor’s assessment of market and other factors at the time of any proposed borrowing. We cannot assure stockholders that we will be able to obtain credit at all or on terms acceptable to it.

The following table illustrates the effect on return to a holder of our common stock of the leverage created by our use of borrowing at the weighted average stated interest rate of 6.59% as of September 30, 2024, together with (a) our total value of net assets as of September 30, 2024; (b) approximately $864.6 million in aggregate principal amount of indebtedness outstanding as of September 30, 2024 and (c) hypothetical annual returns on our portfolio of minus 15% to plus 15%.

| Assumed Return on Portfolio (Net of Expenses)(1) |     | —10.00 | % |     |  —5.00 | % |     |     0 | % |     | 5.00 | % |     | 10.00 | % |
| Corresponding Return to Common Stockholders(2)   |     | —28.86 | % |     | —18.24 | % |     | —7.61 | % |     | 3.02 | % |     | 13.64 | %