Carlyle Credit Income Fund (CCIF) Report Q2 2024 Earnings: Net Investment Income of $0. … – Stockxpo

On May 29, 2024, Carlyle Credit Income Fund (CCIF, Financial) published its 8-K filing for the second quarter ending March 31, 2024. Carlyle Credit Income Fund is a non-diversified closed-end investment company. The Fund’s primary investment objective is to generate current income, and its secondary objective is to generate capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in tranches of equity and subordinated bonds secured by credit obligations (DUTY)which are secured by a portfolio consisting primarily of sub-investment grade U.S. senior secured credit facilities with a large number of distinct underlying borrowers from a variety of industry sectors.

Performance highlights

For the second quarter of 2024, Carlyle Credit Income Fund reported net investment income of $0.33 per common share, in line with analyst estimates. Net asset value of the Fund (NAV) per common share was $7.88 as of March 31, 2024. Total fair value of the investment at quarter-end was $142.1 million.

Lauren Basmadjian, CCIF CEO, commented: “At the end of the quarter, we successfully invested the remaining proceeds from the preferred stock offering into new CLO equity positions. Our diversified portfolio of CLO investments has historically delivered high cash payouts, which further supports our initial investment thesis of transforming the fund into a CLO investment strategy.”

Financial achievements

The Fund achieved several key milestones this quarter:

• The remaining proceeds from the preferred stock offering were used at a GAAP weighted average return of 19.4%. As of March 31, 2024, the GAAP weighted average return of the aggregate portfolio was 20.8%.
• The monthly dividend has been maintained at 10.5 cents until August 2024, which equates to an annual dividend of 15.95% based on the share price on May 28, 2024.
• Sold 570,000 shares of common stock in connection with the ATM offering program at a premium to NAV for net proceeds of $4.5 million.

Dividend declarations

CCIF maintains a monthly dividend on the Fund’s common stock of $0.1050 per share for June, July and August 2024. This monthly dividend represents an annual yield of 15.95% based on the closing share price of $7.90 at on May 28, 2024

Security	Amount per share	Record dates	Payment terms
Regular stocks	$0.1050	June 17, 2024	June 28, 2024
		July 19, 2024	July 31, 2024
		August 20, 2024	August 30, 2024

Additionally, CCIF declared a dividend on the Fund’s 8.75% Series A Forward Preferred Shares of $0.1823 per share for June, July and August 2024.

Security	Amount per share	Record dates	Payment terms
Series A Preferred Shares	$0.1823	June 17, 2024	June 28, 2024
		July 19, 2024	July 31, 2024
		August 20, 2024	August 30, 2024

Analysis and perspectives

The successful deployment of proceeds from the preferred stock offering into new high-yielding GAAP CLO equity positions underscores the Fund’s strategic focus on generating significant cash distributions. Maintaining a high dividend yield is crucial to attracting and retaining investors, especially in the asset management industry where income generation is a key performance measure.

CCIF’s ability to sell common stock at a premium to NAV and generate net proceeds of $4.5 million reflects investor confidence in the Fund’s strategy and management. The continued high portfolio yield and maintenance of dividends are positive indicators of the Fund’s financial condition and operational efficiency.

Investors and interested parties can look forward to the Fund’s conference call on May 30, 2024 at 10:00 a.m. EDT to discuss performance in more detail. Registration for the teleconference is available at this link.

For more information, check out the full 8k Gains publication. (here) Carlyle Credit Income Fund.

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