Announces First Quarter 2026 Quarterly Distribution of $0.32 Per Share; Transition to New Monthly Base Distributions of $0.09 Per Share Beginning April 2026 with the Potential for Quarterly Supplemental Distributions; Total Distributions for 2025 of $1.97 Per Share
NEW YORK, March 05, 2026 (GLOBE NEWSWIRE) -- BCP Investment Corporation (NASDAQ:BCIC) ("BCIC" or "the Company") announced today its financial results for the fourth quarter and full year ended December 31, 2025.
Full Year 2025 Milestones
On July 15, 2025, the Company successfully completed the merger with Logan Ridge Finance Corporation ("LRFC") with and into the Company, a major milestone which offered scale, further diversification, and increased operational efficiency.
On August 22, 2025, the Company completed rebranding and the name change to "BCP Investment Corporation" (NASDAQ:BCIC).
On October 7, 2025, the Company obtained a BBB- rating from a Nationally Recognized Statistical Rating Organization with respect to the 5.25% fixed-rate convertible notes due 2032 (the "2032 Convertible Notes") and the 5.25% fixed-rate notes due 2026 (the "2026 Notes"), which resulted in both the 2032 Convertible Notes and 2026 Notes having a fixed interest rate of 5.25% per annum.
On October 15, 2025, the Company issued $35.0 million of 7.50% notes due 2028, and $75.0 million of 7.75% notes due 2030 (together the "2028 and 2030 Notes"), under an effective shelf registration statement, for a total of $110 million.
On November 15, 2025, the Company used the proceeds from the issuance of the 2028 and 2030 Notes to redeem in full the $108.0 million aggregate principal amount outstanding of its 4.875% Notes Due 2026.
On December 12, 2025, the Company completed a tender offer and repurchased 557,960 shares of its common stock at an aggregate cost of approximately $7.6 million.
Fourth Quarter 2025 Highlights
Total investment income for the fourth quarter of 2025 decreased to $17.5 million, from $18.9 million for the third quarter of 2025.
Core investment income1, excluding the impact of purchase price accounting, for the fourth quarter of 2025 was $14.2 million, as compared to $15.3 million for the third quarter of 2025.
Net investment income ("NII") for the fourth quarter of 2025 decreased to $7.4 million ($0.57 per share), as compared to $8.8 million ($0.71 per share) in the third quarter of 2025.
Net asset value ("NAV"), as of December 31, 2025, was $209.2 million ($16.68 per share), as compared to NAV of $231.3 million ($17.55 per share) as of September 30, 2025.
Deployment of approximately $9.6 million and sales and repayments of approximately $40.4 million, resulting in net repayments and sales of approximately $30.8 million.
Total shares repurchased by the Company through the modified "Dutch Auction" tender offer and open market transactions were 677,975, which was accretive to NAV by $0.23 per share. Shares repurchased through the "Tender Offer", which commenced on November 12, 2025 and expired on December 10, 2025, were 557,960 at an aggregate cost of approximately $7.6 million, which was accretive to NAV by $0.18 per share. Total shares repurchased in open market transactions under the Stock Repurchase Program during the quarter ended December 31, 2025, were 120,015 at an aggregate cost of approximately $1.4 million, which was accretive to NAV by $0.05 per share.
Subsequent to quarter end, announced transition to monthly base distributions beginning in April 2026.
Full Year 2025 Highlights
Total investment income for the year ended December 31, 2025 was $61.2 million, as compared to $62.4 million in the year ended December 31, 2024.
Core investment income, excluding the impact of purchase price accounting, for the year ended December 31, 2025 was $54.3 million, as compared to $62.2 million for the year ended December 31, 2024.
Net investment income ("NII") for the year ended December 31, 2025 was $25.1 million ($2.28 per share), as compared to $24.0 million ($2.59 per share) for the year ended December 31, 2024.
Total Deployment of approximately $52.3 million and sales and repayments of approximately $116.9 million, resulting in net repayments and sales of approximately $64.6 million for the year.
Total shares repurchased by the Company in open market transactions under the Stock Repurchase Program and through the Tender Offer during the year ended December 31, 2025, were 698,548 at an aggregate cost of approximately $9.3 million, which was accretive to NAV by $0.24 per share.
Total stockholder distributions for 2025 amount to $1.97 per share.
Subsequent Events
On March 4, 2026, the Board authorized a renewed stock repurchase program of up to $10 million (the "2026 Stock Repurchase Program") for an approximately one-year period, effective March 4, 2026 and terminating on March 31, 2027. The terms and conditions of the 2026 Stock Repurchase Program are substantially similar to the prior 2025 Repurchase Program. The 2026 Stock Repurchase Program may be suspended or discontinued at any time. Subject to these restrictions, we will selectively pursue opportunities to repurchase shares which are accretive to net asset value per share.
On March 4, 2026, the Board approved the transition of the Company's distribution payment schedule from quarterly to monthly, beginning in April 2026. The modification to the distribution policy introduces a stable base distribution, which is anticipated to be sustainable across market cycles, and retains the potential for a quarterly supplemental distribution, which will approximate 50% of the net investment income in excess of the monthly base distributions to account for fluctuations in rates and spreads.
On March 5, 2026, the Company declared a quarterly base distribution of $0.32 per share of common stock. The distribution is payable on March 27, 2026 to stockholders of record at the close of business on March 16, 2026.
On March 5, 2026, the Company declared a regular monthly base distribution of $0.09 per share of common stock for each of April, May and June 2026. The April 2026 distribution is payable on April 30, 2026 to stockholders of record at the close of business on April 15, 2026. The May 2026 distribution is payable on May 29, 2026 to stockholders of record at the close of business on May 15, 2026. The June 2026 distribution is payable on June 30, 2026 to stockholders of record at the close of business on June 15, 2026.
________________________________1 Core investment income represents reported total investment income as determined in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, less the impact of purchase discount accretion in connection with the Garrison Capital Inc. ("GARS"), Harvest Capital Credit Corporation ("HCAP"), and LRFC mergers. BCIC believes presenting core investment income and the related per share amount is a useful and appropriate supplemental disclosure for analyzing its financial performance due to the unique circumstance giving rise to the purchase accounting adjustment. However, core investment income is a non-U.S. GAAP measure and should not be considered as a replacement for total investment income and other earnings measures presented in accordance with U.S. GAAP. Instead, core investment income should be reviewed only in connection with such U.S. GAAP measures in analyzing BCIC's financial performance.
Management Commentary Ted Goldthorpe, Chief Executive Officer of BCP Investment Corporation, stated, "2025 was a transformational year for the Company. During the year, we successfully completed our merger with LRFC, executed a rebranding and name change, and launched a tender offer, all of which are initiatives designed to enhance shareholder value.
The merger meaningfully strengthened our platform, expanded our scale, and enhanced our portfolio diversification. At the same time, our rebranding better reflects our affiliation with the broader BC Partners Credit Platform and is a representation of our long-term vision as we position the Company for its next phase of growth.
Additionally, consistent with our diligent capital management strategy, during the year we proactively extended and laddered our unsecured debt maturities, issuing $75 million of 7.75% Notes due October 2030 and $35 million of 7.50% Notes due October 2028, while also redeeming our 4.875% Notes due 2026. These actions further diversified our funding base and provided us with enhanced financial flexibility.
The Board also approved the transition of the Company's base distribution payment schedule from quarterly to monthly beginning in April 2026, while retaining the potential for quarterly supplemental distributions. We believe this change better aligns our distribution schedule with shareholder interests.
Consistent with previous years, on March 4, 2026, the Board authorized a renewed stock repurchase program of up to $10 million for an approximately one-year period.
Looking ahead, while macroeconomic headwinds persist, we believe current market dynamics continue to create compelling opportunities for our disciplined strategy. We anticipate that 2026 will bring increased activity in the M&A market and expect to capitalize on opportunities in our pipeline.
As always, our focus remains on disciplined capital allocation, strong underwriting standards, and delivering attractive, risk-adjusted returns for our shareholders. With a larger, more diversified platform and reinforced balance sheet, we believe we are well positioned to drive long-term value creation and generate sustainable, risk-adjusted returns."
Selected Financial Highlights for Full Year 2025
Total investment income for the year ended December 31, 2025, was $61.2 million, of which $55.1 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. This compares to total investment income of $62.4 million for the year ended December 31, 2024, of which $52.6 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio.
Core investment income for the year ended December 31, 2025, excluding the impact of purchase discount accretion, was $54.3 million, as compared to core investment income of $62.2 million for the year ended December 31, 2024.
Net investment income ("NII") for the year ended December 31, 2025, was $25.1 million ($2.28 per share) as compared to $24.0 million ($2.59 per share) for the year ended December 31, 2024.
Net asset value ("NAV") as of December 31, 2025, was $209.2 million ($16.68 per share), as compared to $178.5 million ($19.41 per share) for the fourth quarter of 2024.
Investment portfolio at fair value as of December 31, 2025, was $501.0 million, comprised of 108 different entities. Our debt investment portfolio, excluding our investments in the CLO Funds, equities and Joint Ventures, totaled $411.6 million at fair value as of December 31, 2025, and was spread across 34 different industries comprised of 74 different portfolio companies with an average par balance per investment of approximately $3.5 million. This compares to a total investment portfolio at fair value as of December 31, 2024, of $405.0 million, comprised of 93 different entities. Our debt investment portfolio, excluding our investments in the CLO Funds, equities and Joint Ventures, totaled $320.7 million at fair value as of December 31, 2024, spread across 30 different industries (based on alignment to GICS level 3) and comprised of 71 different portfolio companies, with an average par balance per investment of approximately $2.5 million.
Debt investments on non-accrual, as of December 31, 2025, were 13 attributable to 10 portfolio companies, representing 4.0% and 7.1% of the Company's investment portfolio at fair value and amortized cost, respectively. This compares to 6 debt investments attributable to 5 portfolio companies, representing 1.7% and 3.4% of the Company's investment portfolio at fair value and amortized cost, respectively, as of December 31, 2024. For illustrative purposes, if you were to combine the Company's investment portfolio with LRFC's as of December 31, 2024, the Company would have had 9 debt investments attributable to 7 portfolio companies on non-accrual status representing 2.6% and 5.0% of the combination of the Company's and LRFC's investment portfolio at fair value and amortized cost, respectively, as of December 31, 2024.
Weighted average annualized yield was approximately 12.9% (excluding income from non-accruals and collateralized loan obligations) as of December 31, 2025.
Par value of outstanding borrowings, as of December 31, 2025, was $312.3 million, which compares to $267.5 million from December 31, 2024, with an asset coverage ratio of 167% as compared to 167% as of December 31, 2024. On a net basis, leverage as of December 31, 2025, was 1.4x2 compared to 1.3x2 as of December 31, 2024.
________________________________2 Net leverage is calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and cash equivalents, and restricted cash and (B) NAV. BCIC believes presenting a net leverage ratio is useful and appropriate supplemental disclosure because it reflects the Company's financial condition net of $12.5 million and $40.0 million of cash and cash equivalents and restricted cash as of December 31, 2025 and December 31, 2024, respectively. However, the net leverage ratio is a non-U.S. GAAP measure and should not be considered as a replacement for the regulatory asset coverage ratio and other similar information presented in accordance with U.S. GAAP. Instead, the net leverage ratio should be reviewed only in connection with such U.S. GAAP measures in analyzing BCIC's financial condition.
Results of Operations
Operating results for the year ended December 31, 2025, and December 31, 2024, were as follows:
For the Year Ended December 31,
($ in thousands, except share and per share amounts)
2025
2024
Total investment income
$
61,152
$
62,432
Net expenses
36,020
38,388
Net Investment Income
25,132
24,044
Net realized gain (loss) on investments
(21,436
)
(31,183
)
Net change in unrealized gain (loss) on investments
6,547
1,006
Tax (provision) benefit on realized and unrealized gains (losses) on investments
1,611
853
Net realized and unrealized appreciation (depreciation) on investments, net of taxes
(13,278
)
(29,324
)
Net realized gain (loss) on extinguishment of debt
(362
)
(655
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
11,492
$
(5,935
)
Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share:
Basic:
$1.04
($0.64
)
Diluted:
$1.04
($0.64
)
Net Investment Income Per Common Share:
Basic:
$2.28
$2.59
Diluted:
$2.27
$2.59
Weighted Average Shares of Common Stock Outstanding, Basic
11,001,571
9,272,809
Weighted Average Shares of Common Stock Outstanding, Diluted
11,096,227
9,272,809
Investment IncomeThe composition of our investment income for the year ended December 31, 2025, and December 31, 2024, was as follows:
For the Year Ended December 31,
($ in thousands)
2025
2024
Interest income, excluding CLO income and purchase discount accretion
$
38,543
$
45,149
Purchase discount accretion
6,895
235
PIK income
10,523
8,186
CLO income
370
1,511
Joint Venture income
4,327
6,576
Fees and other income
494
775
Investment Income
$
61,152
$
62,432
Less: Purchase discount accretion
$
(6,895
)
$
(235
)
Core Investment Income
$
54,257
$
62,197
Fair Value of InvestmentsThe composition of our investment portfolio as of December 31, 2025, and December 31, 2024, at cost and fair value was as follows:
($ in thousands)
December 31, 2025
December 31, 2024
Security Type
Cost/AmortizedCost
Fair Value
Fair Value Percentage of Total Portfolio
Cost/AmortizedCost
Fair Value
Fair Value Percentage of Total Portfolio
First Lien Debt
$
360,556
$
344,126
68.7
%
$
311,673
$
289,957
71.6
%
Second Lien Debt
49,777
42,183
8.4
%
34,892
28,996
7.2
%
Subordinated Debt
27,487
