CGBD & OCSL Q2 2025 Updates
CGBD Quarterly Update (June 30, 2025)
This will be discussed in the updated CGBD Deep Dive Projection report, along with its overall risk profile, full dividend, and financial projections, taking into account discussions with management on the upcoming earnings call.
Earnings: Reported just below its base case projections, mostly due to slightly lower-than-expected portfolio growth, higher ‘Other G&A’, and continued lower dividend income from its credit funds (was expected), partially offset by maintaining its portfolio yield at 10.9%. The company had $0.89 per share of undistributed taxable (“UTI”) or “spillover” income (previously $0.85 per share).
Leverage: Its debt-to-equity increased from 0.83 to 0.93 after excluding $49 million of cash and $151 million of recently sold investments, giving the company plenty of growth capital for increased earnings.
PIK Income: Decreased from 9.8% to 7.7% of total income, below its historic levels, averaging around 9%, but still needs to be watched.
Dividends: Maintained its base dividend of $0.40 with no supplemental dividend for Q3 2025, as expected in the base case projections, partially due to being underleveraged.
NAV Per Share: Decreased by $0.20 or 1.2% (from $16.63 to $16.43) mostly due to marking down some of its watch list investments, including Maverick Acquisition, Material Holdings, and Alpine Acquisition, as well as under-earning the dividend by $0.01 per share.
Credit Quality: Non-accruals increased from 1.7% to 2.1% of the portfolio fair value due to adding its watch list investment in Alpine Acquisition (48Forty Solutions), which has been discussed in previous reports, including with MSDL. This company has exposure to the transportation industry and was expected to be added to non-accrual. However, after taking into account the successful restructuring of Maverick Acquisition on July 3, 2025, non-accrual investments decreased to 1.3% and 1.0% of the total portfolio based on amortized cost and fair value, respectively:
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