Crescent Capital BDC Q3 2026 Earnings Call Transcript

Crescent Capital BDC (NASDAQ:CCAP) reported third-quarter financial results on Tuesday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Crescent Capital BDC Inc. reported a net investment income of $0.37 per share for Q3 2026, slightly up from the previous quarter, with earnings surpassing the base dividend of $0.34 per share.

The company announced a $50 million share repurchase program and an additional $25 million stock purchase by its parent entity, Sun Life, to address the perceived undervaluation of its shares.

A new joint venture is being planned, expected to be seeded with $150 million of assets, to aid in share repurchases and deleveraging, targeting a low- to mid-teens return on equity.

Despite subdued market activity, Crescent committed approximately $1.5 billion in the third quarter, focusing on add-on financings and maintaining selectivity in credit quality.

The company launched Green Oak, a unified global brand, integrating its operations with Sun Life’s other entities, but confirmed no changes to Crescent Capital BDC’s investment strategies.

Net asset value slightly decreased to $17.72 per share, while the debt-to-equity ratio remained stable, with plans to bring leverage within the target range by year-end.

Management remains optimistic about a potential increase in M&A activity, with pressures on sponsors to provide liquidity likely to drive future deal flow.

Full Transcript

OPERATOR

Third Quarter Ended September 30, 2026 Earnings Conference Call. Please note that Crescent Capital BDC Inc. may be referred to as CCAP, Crescent BDC or the Company throughout the call. I’ll start with some important reminders. Comments made over the course of this conference call and webcast may contain forward-looking statements and are subject to risks and uncertainties. The Company’s actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings.

The Company assumes no obligation to update any such forward-looking statement. Please also note that past performance or market information is not a guarantee of future results. I’ll now turn the call over to Dan McMahon.

Dan McMahon (Investor Relations)

Thank you. Yesterday, after the market closed, the Company issued its earnings press release for the third quarter ended September 30, 2026 and posted a presentation to the Investor Relations section of its website, www.crescentbdc.com. The presentation should be reviewed in conjunction with the Company’s Form 10-Q filed yesterday with the SEC. As a reminder, this call is being recorded for replay purposes. Speaking on today’s call will be CCAP’s Chief Executive Officer Jason Breaux, Chief Financial Officer Gerhard Lombard and President Henry Chung.

With that, I’d now like to turn it over to Jason.

Jason Breaux (President and CEO)

Thank you, Dan, and good morning. I’ll begin by reviewing our third quarter results, touch on the current market environment, and then outline our key priorities and some of the actions we’re announcing today. For the third quarter, we reported net investment income of $0.37 per share, an increase from $0.36 per share in the prior quarter. Our earnings exceeded our $0.34 base dividend and we also paid the second of our three previously announced special dividends of $0.03 per share during the quarter. Our net asset value remained largely stable at $17.72 per share as of September 30, compared with $17.82 at the end of the prior quarter. No new investments were placed on non-accrual during the quarter.

Turning to the market, sponsor-backed M&A remains subdued during the third quarter. Direct lending volumes supporting leveraged buyouts were down roughly 21% from the prior quarter and 60% from the third quarter of last year. While limited new buyout activity has moderated new platform financing opportunities and delayed some realizations, demand continues through add-on acquisitions, refinancings and other needs within existing sponsor portfolios.

Add-on financings remain an important source of activity for Crescent. Our private credit platform includes more than 250 lower market portfolio companies, providing a foundation for originations beyond new LBO transactions. Over the last 12 months, add-on financings accounted for approximately 50% of Crescent’s total deal count 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 long-standing sponsor relationships and familiarity with existing borrowers allow us to remain selective on credit quality, structure and pricing. 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 of Crescent’s private credit platform. 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 current discount in our stock.

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 undervalues CCAP, making repurchases at substantial discounts to NAV 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 strengthens the alignment of Sun Life, Crescent and the leadership team with CCAP’s shareholders. 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 $150 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 gross yield. 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 collaboration. For CCAP, our investment processes, investment committees and investment personnel remain unchanged. We will continue to manage the portfolio with the same disciplined underwriting approach and focus on income generation and capital preservation, supported by the resources and reach of the broader Green Oak platform.

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

Gerhard Lombard (Chief Financial Officer)

Thanks, Jason, and hello everyone. Net investment income was $0.37 per share for the third quarter, up from $0.36 in the second quarter, and covered our $0.34 per share regular dividend. 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.

As discussed in prior quarters, total expenses and excise taxes remained stable at $23.2 million, with modestly higher financing costs offset by lower income and excise taxes and professional fees. Turning to the balance sheet, our investment portfolio totaled approximately $1.6 billion at fair value as of September 30. Total net assets were $653 million, or $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 1.42 times, or 1.36 times net of balance sheet cash, compared with 1.37 times net in the prior quarter. Gross debt outstanding declined to approximately $924 million from $935 million, and cash, cash equivalents and restricted cash totaled approximately $36 million at quarter end. While leverage ended the quarter above our long-term target range, we continue to maintain sufficient liquidity with approximately $247 million of cash and available borrowing capacity as of quarter end.

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 15. A supplemental dividend framework remains in effect, although no supplemental dividend is payable for the quarter under that framework. And with that I’ll turn it over to Henry to discuss the portfolio.

Henry Chung (President)

Thanks, Gerhard. We ended the quarter with approximately $1.6 billion of investments at fair value across 190 portfolio companies. The portfolio remained 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 our underwriting expectations, with the majority of portfolio companies demonstrating resilient operating performance year-over-year EBITDA growth.

Approximately 84% of investments remained rated 1 or 2, indicating performance at or above expectations. 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 3-rated investments increasing from 12% to 13%. Investments rated 4 and 5 declined from approximately 3% to 2.4%. We had no new nonaccruals during the quarter. Nonaccruals declined from 4.8% to 4.7% of debt investments at cost, reflecting the sale of a small legacy First Eagle investment previously on nonaccrual. Measured against the total investment portfolio at cost, nonaccruals were 4.4%.

Moving to investment activity, with leverage currently above our target range, our new investment activity was limited during the third quarter in order to prioritize deleveraging. Gross 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.

With that, I’ll turn it back to Jason for closing remarks.

Jason Breaux (President and CEO)

Thank you, Henry. Before we open the call for questions, I’d like to leave you with a few closing thoughts. Our primary focus remains the rotation of our watch list. The work remains ongoing and active. Portfolio management remains a critical component of driving strong recovery outcomes over the long term. Crescent’s alignment with our shareholders has been a critical component of how we manage Crescent Capital BDC. Today’s 50 million share repurchase authorization and separate 25 million investment by Sun Life build on the permanent fee reductions implemented earlier this year. These initiatives demonstrate the continued commitment of Crescent and Sun Life to Crescent Capital BDC.

Finally, we look forward to the opportunities for greater collaboration across the Green Oak platform. A unified market approach, combined with the continuity of Crescent’s investment teams and disciplined investment processes, positions us to build on more than three decades of private credit experience for the benefit of Crescent Capital BDC’s shareholders. 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.

OPERATOR

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Christopher Nolan with Ladenburg Thalmann.

Your line is open. Please go ahead.

Christopher Nolan (Analyst)

Hi. For the JV announcement, are you guys looking to this to be the first of multiple JVs down the line?

Henry Chung (President)

Hi Chris, this is Henry speaking. As far as the JV goes, we’ve done a JV in the past. We had one in place in 2019, which we fully realized and wound down in the ’22 time frame. This particular JV is in line with our stated objectives here of deleveraging, as well as funding share repurchases. And as we sit here today, we are not contemplating any further JVs in the near term.

Christopher Nolan (Analyst)

Okay. And then the comments were that the JV is expected to generate low- to mid-teens returns. I presume that’s return to the JV equity holders. So we should be looking for mid-teens potentially returns from this investment from the schedule of investments.

Henry Chung (President)

That’s correct. As noted in prepared remarks, the JV will be capitalized both with equity capital from Crescent Capital BDC and the JV partner, as well as an asset-based leverage facility at the JV level. The combination of the leverage as well as the underlying assets here will deliver that mid-teens ROE that we referenced.

Christopher Nolan (Analyst)

If I may just do one last one. Your average debt portfolio yields are 9.6%, which tends to be on the low end of the spectrum for BDCs. Is the JV part of a strategy to raise that average portfolio yield?

Henry Chung (President)

The strategy around the JV is really focused on our core near-term strategic initiatives around deleveraging the balance sheet at Crescent Capital BDC to within our target leverage range, as well as creating excess capacity for share repurchases. So I would say that while it is accretive to the gross yield of the portfolio as a whole, the rationale for the JV and the formation of the JV is really focused on those two former strategic goals of ours.

Christopher Nolan (Analyst)

Okay, I’ll get back in the queue. Thank you.

Henry Chung (President)

Thank you.

OPERATOR

Your next question comes from the line of Finian O’Shea with Wells Fargo. Your line is open. Please go ahead.

Finian O’Shea (Analyst)

Hey everyone. Good morning. I’ll stick with the JV. Can you give some color on the sort of quantum and nature of assets that you’ll drop down in the beginning, and the sort of mix of old and new origination? Are there plans to ramp it?

Henry Chung (President)

This is Henry. I could take that to start. The JV will be capitalized with approximately $150 million to establish the seed portfolio. It’s going to be a diversified seed portfolio, all first-lien, that takes into account the composition of both the JV and the remaining Crescent Capital BDC portfolio. In terms of the future capitalization of the JV, we expect the sizing to be around 150 to 200 million dollars in total size going forward here, so we don’t expect the size to meaningfully grow.

As far as the asset profile of the JV goes, it’s going to be consistent with the broader Crescent Capital BDC portfolio, focusing on first-lien investments.

Finian O’Shea (Analyst)

So should we expect the buyback to be rather swiftly executed?

Jason Breaux (President and CEO)

Hey, Finn, it’s Jason. I think that’s part of the objective here is to accelerate the ability to generate liquidity and deleveraging for Crescent Capital BDC so that we can both get leverage into our target range as well as start to capture some of the discount on the stock price through buybacks. Just to add to that though, the buybacks are going to be executed through a broker under our Rule 10b5-1 plan. So the pace of the buybacks is going to be subject to the plan’s trading parameters as well as the applicable regulatory requirements.

Finian O’Shea (Analyst)

Okay, that’s helpful. Thanks. And one more, Jason, you gave some color on the Green Oak reorgan rebranding and flagged that as a line of support to the BDC. Can you talk about what changes, what improves for the Crescent Capital BDC under Green Oak?

Jason Breaux (President and CEO)

Yeah, Finn, thanks for the question. The Green Oak announcement is really bringing together a variety of capabilities that sit within Sun Life, across credit, real estate, infrastructure, and on the credit side, both investment grade as well as below investment grade. I think it’s going to enable us to really represent ourselves as more of a unified brand and go to market with more solutions for our clients and sponsors. But as far as Crescent Capital BDC goes specifically, I don’t anticipate any change to the investment strategy of Crescent Capital BDC.

Crescent Capital BDC is a direct lending focused strategy servicing the lower and core middle market for sponsor-backed companies and expect that to continue to be the case.

Finian O’Shea (Analyst)

Great, thank you.

OPERATOR

Your next question comes from the line of Paul Johnson with KBW. Your line is open. Please go ahead.

Paul Johnson (Analyst)

Yeah, good afternoon. Thanks for taking my questions. Shouldn’t ask the question, but I’ll just ask it one more time maybe a slightly different way, but is there any component, I guess, of the buyback that’s governed by the pace of repayments and sales to the JV as that capital becomes available?

Henry Chung (President)

Yeah, the pace of the buybacks for the JV, the primary governor there is going to be the parameters of the Rule 10b5-1 plan. As noted, the rationale for the JV itself is to create excess capital and liquidity to be able to fund those purchases while maintaining leverage within our leverage target range. So if you think about the parameters and the governors around pacing, the primary governor I would think of is the 10b5-1 plan trading parameters itself as well as the other related regulatory requirements.

Paul Johnson (Analyst)

Okay, got it. And then in terms of new originations, you have, you know, some near-term dynamic with, you know, offloading some investments into the new JV. But I guess, like, how long would you expect to sort of gate originations in Crescent Capital BDC in order to, I guess, continue to create capacity for the buyback? I mean, do you expect that to be kind of continued through the duration of the buyback as long as, I guess, it’s active, or do you see any point, I guess within next year, where maybe you kind of return to sort of a more normalized origination cadence?

Jason Breaux (President and CEO)

It’s going to depend on the pace of realizations within the portfolio itself. A few quarters ago we stated that our goal here, when we had net leverage above our target net leverage range, was to get that back within our range by year end. As we noted in prepared remarks, rotation activity has just been slow given that we’ve been in a bit of a quieter LBO environment, particularly in the second half of the year to date. And as a result, the rationale for pursuing the JV—part of that was to accelerate that path to deleveraging by year end.

And then the other component of that was to create that excess capacity relative to our leverage range to be able to buy back shares, just given where the stock is trading today. Based on where we are, we are expecting further, I would say, organic portfolio realizations by year end. And depending on the pace of further rotation within the portfolio, we would look to replace that with new originations that are generated across the Crescent platform here. But I would think of the primary governor there as, first, the pace of just the organic rotation of the portfolio and, secondly, where we are relative to our target leverage range, factoring in realizations as well as buyback activity.

Paul Johnson (Analyst)

Okay, got it. And in terms of the consolidation of the asset manager, I guess I’d ask, you know, how much or, you know, what percentage does private credit AUM—and maybe if I could go one step further, sort of this core middle market overlapping AUM with Crescent Capital BDC’s portfolio—does that sort of represent within the broader AUM of the consolidated asset manager?

Jason Breaux (President and CEO)

Hey Paul, let me take a stab at that, and if I didn’t answer your question, give me another try. If you think about Green Oak broadly as over 300 billion of AUM, credit—inclusive of below investment grade and investment grade—would be over 200 of that 300 billion of AUM. And then when you drill down a bit further, if you think about Crescent AUM today, which is all below IG credit, that’s about 54–55 billion of AUM today, of which three-quarters of that is below investment grade private credit.

So call it 40-plus billion or so is below IG private.

Paul Johnson (Analyst)

Okay, thanks. That answers my question.

Jason Breaux (President and CEO)

Thank you.

OPERATOR

Your last question comes from the line of Mickey Schlein with Clear Street. Your line is open. Please go ahead.

Mickey Schlein (Analyst)

Yes, good afternoon everyone. Just wanted to touch on the pipeline. You know, with earnings season amongst the BDC sort of coming to a close, I’ve pretty consistently heard optimism about the M&A pipeline going into year end and potentially into next year, given some reduction in macroeconomic uncertainty. I’m not sure I agree, but I’m very interested in understanding how you’re thinking about the scope of the pipeline relative to everything that’s going on, whether it’s uncertainty about what the Fed’s going to do or the Iran war or changes in Washington, et cetera.

Henry Chung (President)

This is Henry. I can start off there. I think what we’ve observed here just really in the second half of the year, and you know, part of that is attributed to several of those macro factors that you referenced, are that the LBO environment, particularly within where we focus in the lower and core middle market, just has been quite a bit quieter relative to the first half of the year. And even if you were to look at the same time period on a year-over-year basis, I will say that there’s certainly a lot of early looks and early reads out there which may indicate that the pipeline going into the end of the year, beginning of next year will be quite a bit more robust in terms of deal activity.

But where we sit here today in terms of just broader activity within our core market segment has, quite candidly, just been a bit quieter relative to what we’ve seen at the beginning of the year.

Nikki

And it sounds like your expectations for next year are for things to more or less remain as is. Is that correct?

Jason Breaux (President and CEO)

Hey, Nikki, Jason Breaux here. Look, I think that right now, as Henry said, the pipeline is pretty light. What doesn’t change is the continued pressure from investors for liquidity and monetizations. And with each passing day, those pressures continue to build. So there is a fair amount of what I would call macro uncertainty out there that is restricting some activity at this point in time. But I think we still do believe that there will be a pickup in activity going into 2027, simply driven by really more of the concern around investors needing to see liquidity from their sponsors.

I think just to add to that as well, I was going to just add what we observed historically is that the pipeline can turn back on relatively quickly here as well. As I indicated, there’s quite a bit of early preemptive deal work going on, I would say, within the market segments that we focus on, both on the sell side, where there’s early looks for reads and valuations for companies that are looking to trade. So based on that, you know, when we think about just the backlog that is resident within the core lower middle market, there certainly is the addressable market.

I think what we’re just looking for here is those volumes to actually convert in the near term.

Nikki

Understood. Appreciate your time this afternoon and for taking my questions. Thank you.

Jason Breaux (President and CEO)

Thank you.

OPERATOR

Your final question comes from the line of Robert Dodd with Raymond James. Your line is open. Please go ahead.

Robert Dodd (Analyst)

Hi guys. A lot going on. I hate to go back to the JV, but if I can on that. Is that intended to be a permanent vehicle? I mean, it sounds from the way you’re describing it that, you know, you’re selling assets down into it primarily to release liquidity for buybacks and deleveraging. And that could obviously be done if it was kind of a static pool vehicle with a static pool CLO kind of structure and then it would go away over some period of time.

So, I mean, is this meant to be a permanent JV vehicle or is this a tool that may have a finite life for you?

Henry Chung (President)

Hi Robert, this is Henry. I would think of it as a—this is not a static pool where we’re establishing a seed portfolio and having that run off. This JV will be reinvesting. And our expectation is in the near term we’ll continue to manage it as a permanent part of the Crescent Capital BDC portfolio, albeit we’re expecting roughly 2% of the portfolio going forward. Longer term, you know, we’ll continue to evaluate that relative to broader origination that we’re seeing across the space.

But for the near term, I would not consider this a one-off static pool, and we are expecting to replenish assets into the JV as the initial seed portfolio rotates.

Robert Dodd (Analyst)

Got it, got it. Thank you. Excuse me. On the credit, obviously, I mean non-accruals improved a little bit. There was a legacy asset gone there. It takes a while to turn these. Your threes ticked up a little bit. It just sounds rather like credit is kind of stable, but not where you’d want it to be, but stable. I mean, can you give us any update? And I realize again, it doesn’t change very quickly quarter to quarter, but on how the restructuring or turnaround progress is going within the troubled asset pool that you have?

Henry Chung (President)

This is Henry. I could take that. I would say that with respect to the watch list, I would agree with your observations that we are seeing stability where we sit today relative to underwriting expectations, and additions to the watch list that we have seen this quarter are really due to company-specific challenges that we’re seeing in certain portfolio companies, as opposed to broader credit degradation as a whole across the portfolio. With that being said, and I think this is something that we’ve continually been clear about here, especially in an environment like we’re in today where portfolio turnover velocity has just been muted given the LBO environment that we’re in, I would expect that the rotation of assets, particularly those on the watch list, are just going to be longer-term exercises in terms of maximizing recovery. We’re not looking to fire sale any assets just to get them off the watch list.

And as a result, you know, we’re prepared and looking to maximize long-term recoveries by taking a long-term approach to each of these assets, whether it’s truly just a one-off short-term watch list inclusion or a longer-term change of control. So hopefully that gives you some color in terms of just what we’re observing to date, but our expectation here is that we’ll continue to look towards maximizing longer-term recoveries with respect to the watch list.

Robert Dodd (Analyst)

Got it. Thank you.

OPERATOR

We have one more question from Christopher Nolan with Ladenburg Thalmann. Your line is open. Please go ahead.

Christopher Nolan (Analyst)

Hi. Thanks for taking the follow-up. Given the slow LBO market and so forth, is that forcing you guys to extend the maturity of maturing investments?

Henry Chung (President)

Thanks for the question, Chris. We’ve seen that become more prevalent within investments where sponsors are electing to extend duration for investments as opposed to looking to sell them today at current valuations. And what we’re seeing here is that this is not necessarily indicative of companies that are in stress, but more so a determination from the sponsor’s perspective that there’s further value creation that can happen at the underlying portfolio companies, whether it be organically or inorganically.

And as a result they’re looking for support from the lenders to be able to continue to execute on their equity thesis. Typically how we approach these discussions is it’s an opportunity for us to reprice the respective loans when those asks come across. So what you’ll typically see in conjunction with an extension ask is fees or an increase in spread or both. So we take that as an opportunity to re-underwrite as well as reprice the loan to the extent that we would like to stay in the loan, and to the extent that we would not like to stay in the loan, then we elect to get taken out.

So that’s our approach. But we’re absolutely in an environment where extension asks are certainly more commonplace than they have been several years ago.

Christopher Nolan (Analyst)

Great. Thank you.

OPERATOR

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

Jason Breaux (President and CEO)

Okay. Thank you, operator. And I just wanted to say thank you to our shareholders and analysts for their interest in Crescent Capital BDC and all of the questions. And we look forward to speaking with everyone again soon.

OPERATOR

This concludes today’s call. Thank you for attending. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.