BCP Investment reports $0.37 NII, agrees to buy ICMB

BCP Investment Corporation (NASDAQ: BCIC) reported third-quarter 2026 net investment income of $0.37 per share and signed a merger agreement to acquire Investcorp Credit Management BDC (NASDAQ:ICMB) for consideration equal to 90% of ICMB's adjusted net asset value at closing.

Net investment income fell to $4.6 million, or $0.37 per share, from $5.5 million, or $0.45 per share, in the second quarter and $8.8 million, or $0.71 per share, a year earlier, while total investment income declined to $13.9 million from $15.2 million sequentially and NAV dropped to $13.13 per share from $14.49.

Under the agreement, ICMB shareholders will receive newly issued BCIC shares valued at 100% of BCIC's NAV and, if applicable, cash, with total consideration set at 90% of ICMB's adjusted NAV.

Stock issuance is capped at 19.99% of BCIC's outstanding shares and cash at 60% of total consideration, while closing requires ICMB shareholder approval and instruments providing for repayment of its outstanding debt.

Following the announcement, the BCP Investment Corporation share price was down 9.13% at $5.97 in overnight trading at 8:23 p.m. ET, while BCIC said it expected the merger to be accretive and declared monthly distributions of $0.09 per share for January, February and March 2027.

BCIC is an externally managed business development company that invests in middle-market businesses through term loans, mezzanine investments and selected equity securities, and reported 10 non-accrual debt investments across seven portfolio companies, representing 2.8% of portfolio fair value compared with 3.1% in June.

The company expanded its KeyBank revolving facility to $150 million from $75 million, reduced borrowing spreads, extended its reinvestment period to August 2029 and maturity to August 2031, and issued $10 million of 7.50% notes due 2029 to redeem its remaining 2026 notes, while management said it expects to favor debt repayment and share repurchases over new investments.