Carlyle Credit Income Fund Secures Impressive Financial Milestones
NEW YORK — Carlyle Credit Income Fund (CCIF) has recently announced its financial outcomes for the fourth quarter and the entire fiscal year ending September 30, 2024. The Fund's financial report showcases a significant evolution in its investment strategy and financial health.
Dramatic Increase in Dividend Rate
Lauren Basmadjian, the CEO of CCIF, expressed satisfaction with the results achieved in the last quarter and the preceding year. Remarkably, since July 2023, when CCIF appointed Carlyle as its investment advisor, the dividend rate has escalated from 7.8% to an impressive 15.2%, a substantial increase of 7.4%.
Consistent Monthly Dividends
The Fund has diligently maintained its monthly dividend of 10.5 cents for upcoming months, translating to an annualized yield of approximately 15.16% based on the stock price as of mid-November. Additionally, the yield rises to 16.64% when assessed against the Fund's net asset value (NAV) as of the end of October.
Successful Investment Strategies
During the last quarter, CCIF has made impressive moves in the market:
- The Fund dedicated $39.6 million towards new collateralized loan obligation (CLO) investments, achieving a weighted average GAAP yield of 16.5%. The portfolio's aggregate yield reached 18.6% as of September 30.
- CCIF executed a private placement of five-year, 7.125% convertible preferred shares, raising net proceeds of $10.7 million.
- A registered direct placement of common shares was finalized at a premium to NAV, generating net proceeds of $11.5 million.
- Furthermore, through an At-The-Market (ATM) offering program, the Fund sold 850,000 shares at a premium, resulting in net proceeds of $6.8 million.
Net Investment Income Highlights
For the fourth quarter, CCIF reported a net investment income of $0.30 per common share and a core net investment income of $0.45 per share. The net asset value for each common share was confirmed at $7.64 as of September 30, with total investments valued at $173.5 million.
Dividend Announcements for Shareholders
Looking ahead, CCIF has assured a monthly dividend of $0.1050 per common share for December and the following months in early 2025. Alongside this, dividends of $0.1823 per share for the Fund's Series A Preferred Shares have been declared for the same period.
The record and payable dates for the common and preferred shares dividends have been scheduled, ensuring clarity for the investors regarding their expected returns.
Upcoming Conference Call Illustration
For stakeholders eager to delve deeper into the financial results, a conference call will occur to dissect these developments further. This presentation is an excellent opportunity for current and prospective shareholders to engage directly with the management team.
Understanding Carlyle Credit Income Fund's Operations
Carlyle Credit Income Fund is an externally managed closed-end fund focusing on acquiring equity and junior debt tranches of CLOs. The underlying CLOs heavily favor U.S. senior secured loans, adorning a diverse portfolio with various distinct borrowers from multiple sectors, bolstering its growth strategy. As a wholly owned subsidiary of Carlyle, CCIF benefits immensely from the extensive resources and knowledge base available from one of the leading CLO managers globally.
Frequently Asked Questions
What is the main focus of Carlyle Credit Income Fund?
Carlyle Credit Income Fund primarily focuses on investing in equity and junior debt tranches of collateralized loan obligations (CLOs).
How much did the dividend rate increase since July 2023?
The dividend rate has doubled from 7.8% to 15.2%, reflecting a significant increase in returns for shareholders.
When will the next dividends be paid?
The upcoming dividends on common stock of $0.1050 are scheduled for December 2024, as well as January and February 2025.
What was the net investment income for the fourth quarter?
CCIF reported a net investment income of $0.30 per common share for the fourth quarter of 2024.
How does CCIF support its shareholders?
The Fund consistently works to attract appealing CLO equity opportunities while maintaining stable dividend payments to its shareholders.
