Good morning, and welcome to Crescent Capital BDC Inc.'s fourth quarter in your end of December 31, 2025 earnings conference call. Please note that Crescent Capital BDC Inc. may be referred to as CCAP, Crescent BDC, or the companies throughout the call. I'll start with some important reminders. Comments made over the course of this conference call and webcast may contain forward-looking statements and are subject to risks and uncertainties. The company's actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings. The company assumes no obligation to update any such forward-looking statements. Please also note that past performance or market information is not guaranteed of future results. I'll now turn the call over to Dan McMahan.

Thank you. Yesterday, after the market closed, the company issued its earnings press release for the fourth quarter and year ended December 31st, 2025, and posted a presentation to the IR section of its website at www.crescentbdc.com. The presentation should be reviewed in conjunction with the company's Form 10-K filed yesterday with the SEC. As a reminder, this call is being recorded for replay purposes. Speaking on today's call will be CCAP's Chief Executive Officer Jason Brough, President Henry Chung, and Chief Financial Officer Gerhard Lombard. With that, I'd now like to turn it over to Jason.

Jason Brough Thank you, Dan. Hello, everyone, and thank you all for joining us. I'll start today's call by summarizing our results and outlook and follow that with some commentary on the current market environment. In terms of fourth quarter earnings, we reported net investment income of $0.45 per share as compared to $0.46 for the prior quarter. Once again, our earnings over-earned the quarterly dividend. Consistent with our dividend policy and fourth quarter earnings, our board declared a quarterly cash dividend of $0.42 per share for the first quarter of 2026, payable on April 15, 2016, 2026, to stock orders of record as of March 31, 2026. That asset value was $19.10 per share during the 31st, compared to $19.28 per share as of September 30th. This decline reflects unrealized losses stemming from certain portfolio companies. While NAV per share has declined over the past several quarters, reflecting market volatility, and certain credit-specific marks during 2025, we believe it is important to view our performance over a longer horizon. The broader portfolio remains fundamentally healthy with stable credit metrics, strong sponsor support, and performance in line with our underwriting expectations. Since inception, CCAP has maintained one of the more stable MAV profiles across the public BDC sector, supported by our discipline underwriting, diversified positioning, and a focus on senior secure and sponsor-backed companies, which we have maintained throughout our history. Capital preservation remains core to our strategy, and we are actively managing the portfolio to maintain consistent long-term NAV stability. I'd like to touch on our outlook for CCAS earnings power and dividend sustainability. First, while lower base rates have impacted yields across the space, DECAP remains well positioned today. For the fourth quarter, net investment income covered our base dividend by 107%. We ended the year with net debt equity of below the 1.30 times upper end of our target range, preserving flexibility to prudently grow the portfolio and deploy capital through Our private credit platform has been active with over $6.5 billion of capital committed in 2025, including over $1.7 billion during the fourth quarter. Our existing portfolio remains one of our most active origination channels, with add-ons representing over half of our transactions. We are also encouraged by the recent increase in transaction activity in Q4 and early 2026. As origination and refinancing volumes normalize, structuring fees and accelerated amortization income can serve as incremental contributors. In addition, our spillover income of approximately $1 concerns our base dividend continues to provide meaningful support as we navigate the current rate transition. All of that said, we fully recognize the earnings headwinds facing the entire ADC space related to forward base rate expectations. As such, we and our Board are actively reviewing a range of options to ensure CCAP is positioned to deliver durable earnings and attractive returns across market cycles, and we expect to provide a more fulsome update on our plans and any actions stemming from that review in May when we report next quarter. We look forward to updating you further next quarter. Let me now shift gears and discuss what we are seeing in our market. We are operating in an increasingly competitive private credit market. Capital formation across direct lending strategies has remained strong, with a growing number of lenders competing for high-quality, sponsor-backed transactions. This has resulted in tighter spreads and evolving deal structures, particularly in the broadly syndicated and upper end of the middle market. In this environment, maintaining underwriting discipline and strong structural protections remains essential. Within private equity, the past three years have been characterized by subdued exit activity, with sponsors favoring recapitalizations and dividend transactions over traditional M&A to generate liquidity and immunity. This has created a backlog for bullet companies awaiting monotony. As rate pressures ease and financing markets stabilize, we are seeing sponsors selectively re-engage in the M&A market. At the same time, elevated redemption activity in the perpetual non-traded BDC space may potentially contribute to a more balanced supply-demand dynamic. We continue to view the long-term outlook for private credit favorably. Discipline underwriting, thoughtful selectivity, and active portfolio management remain essential to driving strong performance. With that, I'll turn it over to Henry to provide additional detail on our portfolio and recent investment activity.

Thanks, Jason. Please turn to slides 13 and 14. We ended the year with approximately $1.6 billion of investments at fair value across a highly diversified portfolio of 184 companies with an average investment size of approximately 0.6% of the total portfolio. We believe disciplined position sizing is one of the most effective tools for managing idiosyncratic credit risk. Broad diversification across industries and markets, sponsors, and issuers help limit concentration risk and support durable performance across market sites. Since inception, our portfolio has consisted primarily of first lien loans, representing 91% of the portfolio at fair value at year end. Our investments are supported by well-capitalized, experienced private equity sponsors, with 99% of our debt portfolio in sponsor-backed companies as of year end. At origination, the weighted average loan value of the portfolio is approximately 40%, underscoring the meaningful equity buffer beneath us. We believe conservatively capitalizing on portfolio companies is a key driver of downside protection and recovery potential across cycles. It is also worth noting that 71% of our portfolio includes covenants, far higher than in the upper-middle market or broadly syndicated loan market. We view covenants as an important risk management tool, providing earlier visibility into potential issues and a structured framework to engage early with sponsors and performance often. In terms of software and services, we have been investing in the sector for over 15 years, applying a consistent underwriting approach throughout. Our focus has always been on durable cash flow generating businesses that deliver mission critical enterprise embedded software with high switching costs, where the cost of failure or disruption is prohibitively high for customers. This long-standing discipline has guided how we underwrite technology risk across multiple innovation cycles, and we believe our approach is inherently defensive against AI-driven disintermediation risk. Today, software and services represent approximately 20% of our portfolio, and we continue to apply the same cash flow-based underwriting principles that have guided us for decades consistent with this approach we do not invest in any annual recurring revenue or ARR loans please turn to slide 15 where we highlight our recent activity in the fourth quarter totaled 71 million as you can see on the left hand side of the page during the quarter we closed five new platform investments totaling 29 million even as spreads have tightened our focus remains on high quality companies strong credit profiles. These new investments were loans to private equity-backed companies with a weighted average spread of approximately 490 basis points, with Crescent serving as lead or agent on all the new platform investments. The remaining $42 million came from incremental investments in our existing portfolio companies. The $71 million in gross deployment compares to approximately $78 million in aggregate exits, fails, and repayments, resulting in net realization of approximately $7 million for the fourth quarter. Turning back to the broader portfolio, please flip to slide 16. The weighted average yield and our income-produced securities at cost decreased 40 basis points quarter over quarter, ending the year at 10 percent. This decline was primarily driven by lower base rates following the recent rate cuts. Importantly, we remain disciplined in our deployment approach, prioritizing credit quality, structural protections, and long-term risk-adjusted returns over maximizing headline yield. The weighted average interest coverage of the companies in our investment portfolio at year-end improved to 2.2 times, demonstrating durability and strength within the earnings and our underlying portfolio. As a reminder, this calculation is based on the latest annualized base rates each clip to slide 17, which shows the trends in internal performance ratings. Overall, we have seen stability in the fundamental performance of our portfolio resulting in consistency in our risk ratings and a weighted average portfolio risk rating of 2.1. On the right-hand side of the slide, you'll see that one and two rated investments representing names that are performing at or above or underwriting expectations decreased from 87% to 86%, continuing to represent the lion's share of our portfolio at fair value. As a percentage of debt investments at cost and fair value, nonaccruals increased from 3.3% and 1.6% as of September 30th to 4.1% and 2% as of December 31st, driven by the addition of two new nonaccrual investments during this. It is worth noting that in January, one nonaccrual investment was structured and another was fully realized via a sale, which decreased pro-former non-accruals to 1.4% and 3.2% of debt investments at fair value and cost. Given our highly diversified portfolio and acquired assets, we continue to have a non-accrual rate that is higher than our long-term average. We are actively managing these portfolio investments, and note that these are driven by idiosyncratic company-specific issues. The broader portfolio remains healthy, and we continue to observe demonstrable growth across the majority of our portfolio. With that, I will now turn it over to Gerard.

Thanks, Henry. And hello, everyone. For the fourth quarter ending December 31, 2025, we reported net investment income of $0.45 per share as compared to $0.46 for the prior quarter. This decrease was largely driven by lower interest income due to lower reference rates. Turning to the balance sheet, as of December 31, 2025, our investment portfolio fair value totaled $1.6 billion, consistent with the prior total net assets for $706 million, and NAV per share was $19.10, a decrease for $19.28 at the end of the third quarter due primarily to net unrealized depreciation. Let's shift to our capitalization and liquidity on slide 19. As a reminder, in October, we proactively priced $185 million of senior unsecured notes structured across three tranches with a delayed draw feature. We intentionally incorporated the delayed funding feature to align proceeds with our 2026 maturity schedule, allowing us to efficiently address our unsecured maturities while minimizing negative carry. The first two tranches, totaling $135 million, closed on February 17th. The final $50 million tranche will fund in May in advance of additional 2026 maturity. Pro-forma for this activity, over 90% of our committed debt now matures in 2028 or later, meaningfully extending our maturity profile and enhancing balance sheet flexibility. We remain in active dialogue with our underwriting partners regarding additional unsecured issuance as we continue to thoughtfully manage our maturity ladder and optimize our capital structure over. The weighted average stated interest rate on our total borrowings was 5.83% as of year-end, down from 5.99% quarter-over-quarter. A quarter-end debt-to-equity ratio was 1.25 times or 1.2 times net of balance sheet cash, up from the prior quarter but within a stated target range of 1.1 times to 1.3. With $242 million of undrawn capacity, subject to leverage, borrowing base, and other restrictions, and over $30 million of cash and cash equivalents as of year-end, we have sufficient liquidity to selectively further fund investment activity while maintaining a debt-to-equity ratio. As Jason noted, for the first quarter of 2026, our board has declared our regular dividend of $0.42 per share. And with that, I'd like to turn it back to Jason for closing remarks.

Thank you, Gerhard. In closing, while 2025 presented a more dynamic environment across both rates and credit markets, we believe CCAP enters 2026 from a position of strength. Our portfolio remains highly diversified and predominantly burst lean, supported by experienced sponsors and meaningful equity cushions. We have maintained prudent leverage, enhanced the duration of our liabilities, and preserved liquidity to navigate a range of market conditions. At the same time, our board and management team are thoughtfully evaluating additional steps to further strengthen our earnings profile and long-term return framework in alignment with shareholder interests. Private credit continues to offer compelling opportunities for disciplined lenders with scale and selectivity. Crescent has been investing in private credit and delivering consistent returns to our investors across multiple cycles over the past 30 years. CCAP's focus remains clear, protect capital, enhance sustainable earnings power, and deliver attractive risk-adjusted returns for shareholders over the long term. We appreciate your continued support and look forward to updating you next quarter. Operator, please open the line for questions.

Thank you. As a reminder, to ask a question, you will need to press star then the number 1 on your telephone keypad. And if you would like to withdraw your question, press star 1 again. Your first question comes from the line of Robert Dodd with Raymond James. Your line is open.

Hi, guys. I know you don't really want to talk about this because you said you give us more information next quarter, but you opened the door to questions about exactly what you're reviewing with the board and long-term position, et cetera. I mean, you're talking about like a discussion of like dividend structure, because it's obviously in context of long-term dividend or more strategic kind of initiatives, who's also mentioned in context of like doing so, I know you want to talk to me next time, but can you give us like a skeleton to hang some thoughts on, at least about what kind of things you mean when you made that comment?

Hi, Robert. Go ahead, Henry.

Hey, Robert. This is Henry. Just a more detailed commentary on the base of a key focus here.

Got it. Thank you. Very helpful. On the – one quick one and then another – in January, he said there was another call exit and one was sold. Was it sold at the mark or repaid it par or can you give us and we'll see it eventually but and that obviously I would not applause fairly significantly I think yeah the the investment was was realized that on the so they're talking about the like that the kind of the future in the business I'm nervous yeah basically it's coming down it sounded like you might be a little bit optimistic that maybe spreads will widen depending on fun, frozen and other things you know can you give us more thoughts I mean you know if spreads do widen how optimistic are you that the activity levels stay robust because they've started to pick up a little bit but partly that's because spreads have been tight I mean can you can kind of reconcile that thought for us yeah I say on the latter point so we the spreads Yes, and you can see this in terms of where investments have largely been consistent with

new first-leaning e-tronch investments, I'd say for the better part of the last three years this year. We certainly think that as deal activity continues active and are pleased with how we were seeing deployment, watching closely how the financing markets react here as well as a basic start in terms of development.

I appreciate it.

Your next question comes from the line of Mikey Schlein with Clear Street. Your line is open.

Yes, good morning or good afternoon, wherever you may be. Just a couple of questions from me. Could you give us a little bit more color on the main drivers of the realized gain during the quarter and the unrealized losses?

The main driver realized gain, we've spoken about the sector and the other large drivers.

I understand. And if you could just repeat the pro forma non-accruals as of the activity in January, I didn't get a chance to write it down quickly enough.

Yeah, it's approximately 100 basis points on cost of non-accruals that we are expecting to come out of the portfolio. Terrific.

And lastly, at a high level, can you give us some background on the rationale for rotating proceeds from portfolio repayments into new investments instead of taking advantage of the discount NAV that the stock is offering?

Yeah, I think one will remind you that the current buyback program does remain in place. The purchase program will be creating and what we've seen with just in terms of being able and proceeds continuing to.

Okay, I understand. And lastly, I understand you've noted that you may be examining the dividend policy down the road, but as we sit today, is the supplemental dividend policy still in place?

Yes, that's correct. The supplemental dividend is still in.

And the constraint is probably related to declines in NAV, is that correct?

It's a two-quarter look back.

I understand. Those are all my questions today. I appreciate your time. Thank you.

Thank you.

Next question comes from the line of Christopher Nolan with Leidenberg-Talman. Your line is open.

Henry, in your comments you indicated the software and services is 20% to the portfolio on page 14 it says 15 did you just misspeak or was there a change in exposure there the software and services as a total of our portfolio based on the breakdown is what it's 20% how it was it was there a specific I believe page 14 I'm looking at the believe that I might be looking upper right hand donut it could be there's another section that has a similar color so that could be my mistake.

Yeah, I'm looking at our stats on page 14.

Okay, no problem.

15% is...

Okay, thank you. On the topic of software and services, is the plan or does the firm still intend for any of those maturing investments to reinvest into software or to lower the exposure going forward?

Yeah, it's a good question. With respect to software, there's a couple of comments that I want to make just in respect to the performance of our company outlook. What we've seen within our software is intermediation. Not so much for the software to be replaced, but do the customers actually like the product they're using? And those are the attributes that these attributes tend to provide durable cash flows in these investments. And, you know, to the extent that we do see new software investments, we'll continue to find a home for important is we have an equity condition beneath the cushion of an equity sponsor. Other piece that I note here is, and I think this is focused on the enterprise value of the underlying software companies, we're also focused on the current cash flows, what's available to service our debt, and in situations that may require it, what's available to deal over our capital. We continue to think that there is attractive opportunities here, and with the shakeout that's happening in the broader marketplace, there will continue to. We want to really articulate here that the focus and what's allowed investing in this space.

Great. Thank you.

There are no further questions at this time. I will turn the call back over to Jason Brough for closing remarks.

Okay, Operator, thank you. Once again, everyone, we appreciate your time today and your interest in CCAP. And we look forward to providing you with another update for our first quarter earnings in May. Thanks, all.

That concludes today's call. Thank you all for joining, and you may now disconnect.