BCP Investment Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total investment income for the quarter ended September 30, 2026, was $13.9 million, down from $18.9 million in the same period of 2025 and $15.2 million in the second quarter of 2026.
• Core investment income (excluding purchase price accounting impact) was $12.2 million for the quarter, compared to $15.3 million in Q3 2025 and $12.9 million in Q2 2026.
• Net investment income (NII) was $4.6 million ($0.37 per share) for the quarter, a decrease from $8.8 million ($0.71 per share) in Q3 2025 and $5.5 million ($0.45 per share) in Q2 2026.
• Net assets decreased to $162.7 million ($13.13 per share) as of September 30, 2026, from $179.5 million ($14.49 per share) as of June 30, 2026.
• Net increase (decrease) in net assets resulting from operations was a loss of $13.5 million ($1.09 per share) for the quarter, compared to a gain of $23.6 million ($1.88 per share) in Q3 2025.
• Net realized and unrealized depreciation on investments, net of taxes, was $17.5 million for the quarter, compared to a gain of $14.8 million in Q3 2025.
• The investment portfolio at fair value was $434.2 million as of September 30, 2026, down from $452.7 million as of June 30, 2026.
• Non-accrual debt investments declined to 10 investments across 7 portfolio companies, representing 2.8% of the portfolio at fair value, down from 3.1% as of June 30, 2026.
• Par value of outstanding borrowings was $282.4 million as of September 30, 2026, down from $286.1 million as of June 30, 2026.
• Asset coverage ratio was approximately 157% as of September 30, 2026, compared to 162% as of June 30, 2026.
• Gross and net leverage were approximately 1.7x as of September 30, 2026, compared to 1.6x as of June 30, 2026.
• Weighted average annualized yield was approximately 12.1% as of September 30, 2026.

Guidance and Future Outlook:

• Management expects to favor debt repayment and share repurchases over new investments in the coming quarters given current trading levels.
• The company anticipates the proposed merger with ICMB to be accretive to both BCIC and ICMB shareholders.
• Management expects the combined company to benefit from lower financing costs, reduced public company costs per share, and improved trading liquidity.
• Priorities remain centered on actively managing the existing portfolio, maintaining balance sheet flexibility, and allocating capital to compelling risk-adjusted returns.

Business Segments and Product Lines:

• The debt investment portfolio, excluding CLO Funds, equities, and Joint Ventures, totaled $335.7 million at fair value across 32 industries and 68 portfolio companies as of September 30, 2026.
• The portfolio composition as of September 30, 2026, included First Lien Debt ($278.1 million, 64.0%), Second Lien Debt ($34.1 million, 7.9%), Subordinated Debt ($23.5 million, 5.4%), Collateralized Loan Obligations ($15.7 million, 3.6%), Joint Ventures ($45.1 million, 10.4%), and Equity ($37.4 million, 8.6%).
• Approximately 86.3% of the Debt Securities Portfolio at par value was floating rate as of September 30, 2026.
• Approximately 95.9% of floating rate loans contain floors ranging between 0.50% and 5.25%.
• Deployment of approximately $3.1 million and repayments and sales of approximately $8.9 million resulted in net repayments and sales of approximately $5.8 million during the quarter.

Market and Competitive Landscape:

• The company operates in the middle market investment space, originating, structuring, financing, and managing term loans, mezzanine investments, and selected equity securities.
• Management is pursuing consolidation in the BDC space to achieve greater scale and cost synergies.
• The company notes markdowns across multiple industries during the quarter impacting unrealized mark-to-market movements.

Risks and Challenges:

• Net investment income reflects elevated portfolio repayments where repayments continued to outpace new deployments.
• Unrealized mark-to-market movements resulted in a decline in net asset value due to markdowns across multiple industries.
• The company faces risks related to interest rate fluctuations, with investment income affected by changes in SOFR and prime rates.
• Forward-looking statements regarding the merger and future performance are subject to risks including failure to obtain stockholder approval, inability to complete the transaction, and failure to realize anticipated synergies.

Management Commentary and Tone:

• CEO Ted Goldthorpe stated the company is pleased with the proposed merger with ICMB, viewing it as a step in executing a consolidation strategy.
• Management highlighted proactive actions to derisk near-term refinancing risks, including the amendment of the KeyBank Credit Facility and the issuance of incremental 2029 notes to redeem 2026 notes.
• Management expressed confidence that the improvements to the financing structure leave the company well-positioned to manage through the current environment.
• The tone emphasized disciplined capital deployment and a focus on credit quality, liquidity, and strengthening the financial position.

Other Key Points:

• On November 11, 2026, BCIC entered into a Merger Agreement to acquire Investcorp Credit Management BDC, Inc. (ICMB) at 90% of ICMB's adjusted net asset value.
• The merger consideration will consist of newly issued shares of BCIC common stock and cash, with stock consideration capped at 19.99% of BCIC's outstanding common stock and cash consideration capped at 60% of the aggregate merger consideration.
• On September 2, 2026, the Company issued $10.0 million of 7.50% notes due 2029.
• On August 6, 2026, the Company amended its KeyBank Credit Facility, increasing committed capacity from $75.0 million to $150.0 million, reducing borrowing spreads, and extending the maturity date to August 2031.
• On October 3, 2026, the Company redeemed the remaining $10.0 million of its 2026 Notes at par plus accrued interest, resulting in a loss of less than $0.1 million.
• The Company declared regular monthly base distributions of $0.09 per share for January, February, and March 2027.
• The Company has $49.6 million of available borrowing capacity under the KeyBank Credit Facility as of September 30, 2026.