Crescent Capital Authorizes $50 Million Share Buyback, Reports Lower Investment Income
Key Facts
Crescent Capital BDC said in its results filing issued on November 9 that its board authorized a program on November 5 to repurchase up to $50 million of common shares. The company will make purchases through an independent broker under a Rule 10b5-1 trading plan, according to the filing with the U.S. Securities and Exchange Commission. The announcement comes as the company reported third-quarter 2026 net investment income of $13.7 million, or $0.37 per share. That income was $16.9 million, or $0.46 per share, in the same period of 2025. Sun Life also said in the same filing that it plans to buy up to $25 million in additional company shares on the open market.
The program gives the board a framework to repurchase shares up to the announced limit, without specifying an executed amount or a timetable for purchases. The company's purchases will be made through an independent broker under a Rule 10b5-1 plan, the mechanism cited in the filing for carrying out the program. Sun Life's plan concerns additional open-market purchases, with a separate maximum of $25 million. Sun Life will also use an independent broker and a Rule 10b5-1 plan, according to the company's statement. The two announcements put share repurchases among concurrent moves by the company and its partner, while the company links its broader joint venture plan to reducing leverage and creating room for purchases.
On performance, total investment income rose to $36.9 million in the third quarter of 2026 from $36.3 million in the second quarter, according to the company's filing. The company attributed the slight increase mainly to higher recurring interest income as benchmark rates rose during the quarter. But net investment income fell year over year to $13.7 million from $16.9 million, and per-share income declined to $0.37 from $0.46. The figures show a different comparison between the periods: a limited improvement in total income from the previous quarter, against lower net investment income than in the third quarter of the prior year. Reported net investment income per share exceeded the new base distribution of $0.34 per share in the fourth quarter.
The company put net asset value at $17.72 per share on September 30, 2026, compared with $17.82 on June 30 and $19.28 on September 30, 2025. The figure was therefore below both its level at the end of the previous quarter and its level a year earlier, according to the results table. On its balance sheet, the company reported $36.2 million in cash and restricted cash on September 30, alongside $210.5 million of undrawn capacity on its credit facilities. The undrawn capacity is subject to a borrowing base and other restrictions, according to the filing. The weighted average cost of debt was 6.26% on the same date, while the net debt-to-equity ratio was 1.36 times.
The company plans to establish an unconsolidated joint venture with approximately $150 million in first-lien assets, according to the results call. CCAP and its partner expect to contribute $30 million in equity each at formation, with additional funding through an existing asset-based facility. The company said completion of the venture is expected during the fourth quarter of 2026. It added that it expects to use the proceeds to reduce leverage to its target range and fund share repurchases. The venture's timing and proceeds are thus linked to the announced plan to reduce debt and provide capacity for purchases, while the filing does not specify the final proceeds or the number of shares to be repurchased.
The board declared a base cash distribution of $0.34 per share for the fourth quarter of 2026, payable on January 15, 2027, to shareholders of record on December 31. The company will also pay its final announced special distribution of $0.03 per share on December 15, 2026, to shareholders of record on November 30. The base distribution follows reported net investment income of $0.37 per share in the third quarter, compared with $0.46 in the same period a year earlier. The company scheduled a call to discuss the results for November 10, 2026, at 12 p.m. Eastern time. CCAP shares closed at $9.24 on November 9, according to EL7 data.