Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q3 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 01:00 pm ET

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Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Investcorp Earnings Conference Call. Your speakers for today's call are Mike Mauer, Chris Jansen and Rocco DelGuercio. [Operator Instructions] A question-and-answer session will follow the presentation.

I'll now turn the call over to your speakers. Gentlemen, you may begin.

Executive
Michael C. Mauer

Thank you, operator, and thanks to all of you for joining us this afternoon. I'm joined by Chris Jansen, my Co-Chief Investment Officer; and Rocco DelGuercio, our CFO.

Before we begin, Rocco will give our customary disclaimer regarding information and forward-looking statements. Rocco?

Executive
Rocco DelGuercio

Thanks, Mike. I would like to remind everyone that today's call is being recorded and that this call is the property of Investcorp Credit Management BDC. Any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by visiting our Investor Relations page on our website at icmbdc.com.

I would also like to call your attention to the safe harbor disclosure in our press release regarding forward-looking information and remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections. We will not update forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our Investor Relations page on our website.

At this time, I'd like to turn the call back to our Chairman and CEO, Michael Mauer.

Executive
Michael C. Mauer

Thanks, Rocco. I want to begin by recognizing the extraordinary times we live in today. The COVID-19 pandemic has caused incredible suffering all over the world, and the secondary economic effects have been devastating for both businesses and individuals.

We count ourselves among the fortunate and that our team is all safe and healthy, and we have been able to seamlessly transition our business to a work-from-home environment. Our work to reposition and diversify our portfolio over the past few years has strengthened our position in the midst of this pandemic.

We have derisked the portfolio through smaller average-sized positions and an increase in the number of industries we align to and an increase in our number of borrowers. Still, our credit standards have not wavered. By being cautious underwriters, we hope to minimize the number of our borrowers which is very distressed even in the current environment. We have avoided some of the sectors, which has been hardest hit by the pandemic, such as hospitality, restaurants and retail.

We have also been fortunate on occasion with the repayments, including a substantial one from Montreign, which vastly improved our position as lenders, at the same time that the casino was closed. The vast majority of our borrowers have ample liquidity, are less exposed than the average corporation and should not violate loan covenants. We aren't perfect. We do have four borrowers in the energy sector. Another, Techniplas has struggled with the unprecedented disruption of the auto supply chain in the US and Europe. These are reasons to be cautious but on balance, we are optimistic that our portfolio is well positioned through this volatile business