8-K: Carlyle Credit Income Fund Announces Q2 2025 Financial Results and Declares Monthly Dividends

Carlyle Credit Income Fund (CCIF) reports its second quarter 2025 financial results, highlighting a resilient loan and CLO market performance and the maintenance of a stable monthly dividend.

Summary

• Carlyle Credit Income Fund (CCIF) announced its second quarter financial results ending March 31, 2025.
• The fund maintained a monthly dividend of $0.105 per share through August 2025, equating to an 18.75% annualized dividend based on the May 16, 2025 share price.
• New CLO investments of $30.3 million were funded with a weighted average GAAP yield of 15.41%.
• The aggregate portfolio weighted average GAAP yield was 16.48% as of March 31, 2025.
• A private placement of 5-year, 7.50% convertible preferred shares due 2030 generated net proceeds of $18.6 million.
• The fund sold 1,610,000 common shares via an ATM offering at a premium to NAV, resulting in net proceeds of $12.2 million.
• Net investment income was $0.23 per common share, adjusted net investment income was $0.26 per common share, and core net investment income was $0.27 per common share for the quarter.
• Net asset value per common share was $6.98 as of March 31, 2025.
• The total fair value of investments was $197.9 million as of March 31, 2025.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the fund maintained its dividend and made strategic investments, the net income loss and unrealized losses temper the overall outlook.

Positives

• The fund successfully maintained its monthly dividend of $0.105 per share.
• The fund completed a private placement of convertible preferred shares for $18.6 million.
• The fund sold common shares at a premium to NAV, increasing the NAV by $0.02 per share.
• The fund completed 13 accretive refinancings and resets in the underlying portfolio during the quarter.
• Underlying CLOs continue to maintain healthy overcollateralization cushions with a weighted average cushion of 4.46% and no holdings with a cushion of less than 2.50%.

Negatives

• Net income (loss) was $(3,102) thousand, or $(0.17) per share.
• Net realized and change in unrealized gains (losses) was (7,130) thousand.
• The decrease in CNII and recurring cash flows in Q2 was attributable to 18% of the portfolio not making payments as a result of (1) quarterly payments were redirected to fund accretive resets and refinancings, and (2) primary issuances that had not yet made their initial distributions.

Risks

• The press release contains forward-looking statements that involve substantial risks and uncertainties.
• Factors or events could cause actual results to differ materially from expectations, including risks and uncertainties identified in SEC filings.

Future Outlook

The fund will seek to actively manage the portfolio throughout the rest of the year and believes the fund's portfolio is well positioned to withstand the current market volatility.

Management Comments

• Nishil Mehta, CCIF's Principal Executive Officer and President, stated that the second quarter results reflect the resilient nature of the loan and CLO market amidst a shifting macroeconomic environment.
• Mr. Mehta also mentioned the fund's focus on optimizing CLO positions, maintaining a stable monthly dividend, scaling the fund via capital markets activity, and actively managing the portfolio.

Industry Context

The fund operates in the CLO market, which is influenced by macroeconomic conditions and market volatility.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards or competitors.
• However, it highlights key metrics such as GAAP yield and overcollateralization cushions, which are common benchmarks in the CLO industry.
• Comparable companies in the CLO space include Eagle Point Credit Company and Oxford Lane Capital Corp, but no direct comparisons are made in this document.

Management Changes

Stakeholder Impact

• Shareholders will continue to receive monthly dividends of $0.105 per share through August 2025.
• The fund's performance impacts investors in common and preferred shares.
• The fund's investment activities affect the underlying borrowers and CLO managers.

Next Steps

• The Fund will host a conference call at 10:00 a.m. EDT on Wednesday, May 21, 2025 to discuss its second quarter financial results.
• The fund will continue to actively manage its portfolio throughout the rest of the year.

Key Dates

Keywords

CLO, Carlyle Credit Income Fund, CCIF, Dividends, Financial Results, Net Investment Income, Preferred Shares, ATM Offering, GAAP Yield, Net Asset Value