Crescent Capital BDC, Inc.

Good morning, and welcome to Crescent Capital BDC, Inc.' 's first quarter and March 31, 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 statements. 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.

Thank you. Yesterday, after the market closed, the company issued its earnings press release for the first quarter ended March 31st, 2026, and posted a presentation to the investor relations section of its website, at 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.

Thank you, Dan, and good morning, everyone. Before turning to our results, I want to frame the quarter in the context of the broader market environment. We are operating in an environment characterized by elevated geopolitical uncertainty, mixed consumer sentiment, and persistent inflationary pressures, which have contributed to a more volatile backdrop for credit markets. Within private credit, we are seeing pockets of pressure. At the same time, we believe the broader narrative around the asset class has become somewhat overstated, with distinct issues often grouped together in a way that can exaggerate the perception of risk. While factors such as credit stress in select sectors, valuation scrutiny, evolving risks within software, and refinancing pressures are all part of the current dialogue, these dynamics are not uniform across portfolios or issuers. Against this backdrop, a small number of credit specific developments within CCAS portfolio drove a more challenging quarter. This reflects the continuation of recent quarters where NAV has declined, driven by both market conditions and pressure in certain watch list investments. These issues are concentrated and are being actively managed, and Henry will provide further detail. Importantly, We have deliberately constructed the CCAP portfolio over the past decade with a focus on first lien investments, non-cyclical industries, and strong sponsor backing, with the expectation that we would eventually operate in a more challenging credit environment. This approach is informed by Crescent's more than 35-year track record of investing in credit across multiple market cycles. As a result, while performance has reflected increased recent variability We believe the portfolio is well positioned to navigate these conditions over the long term. At the same time, the current market is creating a more attractive opportunity set with widening spreads, stronger structures, and reduced competition for new investments. In particular, we are seeing a pullback in activity from certain lenders who are more reliant on retail and non-traded BDC capital. Turning to earnings, We generated $0.38 per share of net investment income, or NII, for the quarter, down from $0.45 in the prior quarter, primarily driven by an increase in non-accruals and a reduction in base rates. However, we voluntarily waived $0.04 of incentive fees to ensure full dividend coverage for the quarter. As a result, reported NII of $0.42 per share reflects the $0.04 per share incentive fee waiver. As we previewed on our last earnings call and in partnership with our board, we've implemented a broader set of structural changes to position CCAP for more consistent earnings and attractive returns across market cycles. On fees, we are permanently reducing the base management fee from 1.25% to 1% and the incentive fee from 17.5% to 15%, effective April 1, 2026. At the time of our listing in 2020, our fee structure was among the most competitive in the BDC sector. Over time, as the market evolved, our fees became more in line with the broader peer group. The changes we announced today bring CCAP's fee structure back towards the most competitive end of the peer group. In conjunction with the fee reductions, we are resetting the quarterly base dividend from 42 cents to 34 cents per share. We believe this new base dividend reflects a conservative level relative to our near-term earnings outlook. Our board has also approved three special dividends of three cents per share to be paid quarterly over the course of calendar year 2026. These special dividends are meant to address our current spillover balance. Taken together, this framework separates core earnings power from the return of previously earned income and provides us with greater flexibility as we actively manage the portfolio. Finally, I'd like to touch on the recently completed transaction between Sun Life and our external advisor, Crescent Capital. In March, Sun Life acquired the remaining equity interest in Crescent, making it a wholly owned subsidiary of SLC Management, Sun Life's alternatives platform. This further strengthens alignment with a well-capitalized, long-term institutional partner. Sun Life is a long-term holder of approximately 6% of CCAP's shares outstanding, holds approximately $72 million of CCAP's unsecured notes, and has invested or committed over $1.5 billion across Crescent's strategies since 2021, underscoring its significant and ongoing economic commitment to the platform. With that, I'll turn it over to Gerhard.