CCAP

The information contained in this section should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward Looking Statements” set forth on page 1 of this Quarterly Report on Form 10-Q. In this report, “we,” “us,” “our” and “Company” refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries. OVERVIEW We are a specialty finance company focused on lending to middle-market companies. We are incorporated under the laws of the State of Maryland. We were listed and began trading on the NASDAQ stock exchange on February 3, 2020. We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (“1940 Act”). In addition, we have elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986 (the “Code”). As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in “qualifying assets,” source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income and tax-exempt interest. We are managed by Crescent Cap Advisors, LLC (the “Adviser”), an investment adviser that is registered with the SEC under the 1940 Act. CCAP Administration, LLC (the “Administrator”), provides the administrative services necessary for us to operate. Our management consists of investment and administrative professionals from the Adviser and Administrator along with our Board. The Adviser directs and executes our investment operations and capital raising activities subject to oversight from the Board, which sets our broad policies. The Board has delegated investment management of our investment assets to the Adviser. The Board consists of seven directors, five of whom are independent. Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. We invest primarily in secured debt (including first lien, unitranche first lien and second-lien debt) and unsecured debt (including mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. We may purchase interests in loans or make debt investments, either (i) directly from our target companies as primary market or private credit investments (i.e., private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated “over-the-counter” market (i.e., broadly syndicated loans and bonds). Although our focus is to invest in less liquid private credit transactions, we may from time to time invest in more liquid broadly syndicated loans to complement our private credit transactions. “First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets. “Unitranche first lien” investments are loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, we may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that we would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. “Second lien” investments are loans with a second priority lien on all existing and future assets of the portfolio company. The security interest ranks below the security interests of any first lien and unitranche first lien lenders in those assets. “Unsecured debt” investments are loans that generally rank senior to a borrower’s equity securities and junior in right of payment to such borrower’s other senior indebtedness. 112 CRITICAL ACCOUNTING POLICIES Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. The critical accounting policies should be read in connection with our risk factors as disclosed herein. For a description of our critical accounting policies, see Note 2 “Significant Accounting Policies” to our consolidated financial statements included in this report. We consider the most significant accounting policies to be those related to our Valuation of Portfolio Investments, Revenue Recognition, Non-Accrual Investments, Distribution Policy, and Income Taxes. COMPONENTS OF OPERATIONS Investments We expect our investment activity to vary substantially from period to period depending on many factors, the general economic environment, the amount of capital we have available to us, the level of merger and acquisition activity for middle-market companies, including the amount of debt and equity capital available to such companies and the competitive environment for the type of investments we make. In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors. We may not invest in any assets other than “qualifying assets” specified in the 1940 Act, unless, at the time the investments are made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the SEC, “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million. The Investment Adviser Our investment activities are managed by the Adviser, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Adviser has entered into a resource sharing agreement with Crescent Capital Group LP (“Crescent”), pursuant to which Crescent provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to Crescent’s resources so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the resource sharing agreement, the Adviser intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Crescent’s investment professionals. On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent and on March 30, 2026, Sun Life acquired the remaining equity interest of Crescent (the “Sun Life Transaction”). There were no changes to our investment objective, strategies and process or to the Crescent team responsible for the investment operations as a result of the Sun Life Transaction. 113 Revenues We generate revenue primarily in the form of interest income on debt investments, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. We also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts into income over the life of the loan using the effective yield method. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies. Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. We may receive other income, which may include income such as consent, waiver, amendment, underwriting, and arranger fees associated with our investment activities as well as any fees for managerial assistance services rendered to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. Expenses Our primary operating expenses include the payment of management fees and incentive fees to the Adviser under the Investment Advisory Agreement, as amended, our allocable portion of overhead expenses under the administration agreement with our Administrator (the “Administration Agreement”), operating costs associated with our sub-administration agreement and other operating costs described below. The management and incentive fees compensate the Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including: •the cost of calculating our net asset value, including the cost of any third-party valuation services; •fidelity bond, directors’ and officers’ liability insurance and other insurance premiums; •fees and expenses associated with independent audits and outside legal costs; •independent directors’ fees and expenses; •administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, rent and the allocable portion of the cost of certain professional services provided to us, including but not limited to, our accounting professionals, our legal counsel and compliance professionals); •U.S. federal, state and local taxes; •the cost of effecting sales and repurchases of shares of our common stock and other securities; •fees payable to third parties relating to making investments, including out-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments; •out-of-pocket fees and expenses associated with marketing efforts; •federal and state registration fees and any stock exchange listing fees; •brokerage commissions; •costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws; •debt service and other costs of borrowings or other financing arrangements; and •all other expenses reasonably incurred by us in connection with making investments and administering our business. We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines. 114 Leverage Our financing facilities allow us to borrow money and lever our investment portfolio, subject to the limitations of the 1940 Act, with the objective of increasing our yield. This is known as “leverage” and could increase or decrease returns to our stockholders. The use of leverage involves significant risks. In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with stockholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing. PORTFOLIO INVESTMENT ACTIVITY We seek to create a broad and diversified portfolio that generally includes senior secured first lien, unitranche, senior secured second lien, unsecured loans and minority equity securities of U.S. middle market companies. The size of our individual investments varies proportionately with the size of our capital base. We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities have speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity. Our portfolio at fair value was comprised of the following: ($ in millions) As of June 30, 2026 As of December 31, 2025 Investment Type Fair Value Percentage Fair Value Percentage Senior Secured First Lien $ 373.9 23.8 % $ 350.8 22.4 % Unitranche First Lien 1,039.2 66.2 1,047.8 66.7 Unitranche First Lien - Last Out 18.6 1.2 26.2 1.7 Senior Secured Second Lien 14.7 0.9 12.2 0.8 Unsecured Debt 25.2 1.6 19.0 1.2 Equity & Other 69.2 4.4 77.2 4.9 LLC/LP Equity Interests 29.9 1.9 36.2 2.3 Total investments $ 1,570.7 100.0 % $ 1,569.4 100.0 % 115 The following table shows our investment activity by investment type: ($ in millions) For the three months ended For the six months ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 New investments at cost: Senior Secured First Lien $ 6.8 $ 9.9 $ 56.6 $ 42.5 Unitranche First Lien 31.5 47.0 92.8 107.7 Unitranche First Lien - Last Out — — — 9.7 Senior Secured Second Lien 11.0 — 11.0 — Unsecured Debt 5.6 — 6.8 — Equity & Other 2.1 0.6 4.7 2.3 LLC/LP Equity Interests — — — — Total $ 57.0 $ 57.5 $ 171.9 $ 162.2 Proceeds from investments sold or repaid: Senior Secured First Lien $ 6.9 $ 31.4 $ 26.8 $ 40.6 Unitranche First Lien 31.4 59.8 86.6 110.6 Unitranche First Lien - Last Out — — 0.3 — Senior Secured Second Lien — 0.7 8.6 17.0 Unsecured Debt (1.4 ) — 7.4 — Equity & Other (1.2 ) — (1.2 ) — LLC/LP Equity Interests 0.4 0.8 0.7 2.5 Total $ 36.1 $ 92.7 $ 129.2 $ 170.7 Net increase (decrease) in portfolio $ 20.9 $ (35.2 ) $ 42.7 $ (8.5 ) The following table presents certain selected information regarding our investment portfolio: As of June 30, 2026 As of December 31, 2025 Weighted average yield on income producing securities (at cost) (1) 9.6 % 10.0 % Percentage of debt bearing a floating rate (at fair value) 98.4 % 98.0 % Percentage of debt bearing a fixed rate (at fair value) 1.6 % 2.0 % Number of portfolio companies 192 184 (1)Includes performing debt and other income-producing investments (excluding investments on non-accrual). The following table shows the amortized cost and fair value of our performing and non-accrual debt and income producing debt securities: ($ in millions) As of June 30, 2026 As of December 31, 2025 Cost % of Cost Fair Value % of Fair Value Cost % of Cost Fair Value % of Fair Value Performing $ 1,443.6 95.2 % $ 1,434.1 97.5 % $ 1,435.9 95.9 % $ 1,427.2 98.0 % Non-Accrual 72.7 4.8 % 37.3 2.5 % 61.8 4.1 % 28.8 2.0 % Total $ 1,516.3 100.0 % $ 1,471.4 100.0 % $ 1,497.7 100.0 % $ 1,456.0 100.0 % Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of June 30, 2026, we had investments in thirteen portfolio companies on non-accrual status, which represented 4.8% and 2.5% of the total debt investments at cost and fair value, respectively. As of December 31, 2025, we had investments in eleven portfolio companies on non-accrual status, which represented 4.1% and 2.0% of the total debt investments at cost and fair value, respectively. The remaining debt investments were performing and current on their interest payments as of June 30, 2026 and December 31, 2025. The Adviser monitors our portfolio companies on an ongoing basis. The Adviser monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Adviser 116 has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following: •assessment of success of the portfolio company in adhering to its business plan and compliance with covenants; •review of monthly and quarterly financial statements and financial projections for portfolio companies; •contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments; •comparisons to other companies in the industry; and •attendance and participation in board meetings. As part of the monitoring process, the Adviser regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories: 1.Involves the least amount of risk relative to cost or amortized cost. Investment performance is above expectations since origination or acquisition. Trends and risk factors are generally favorable, which may include financial performance or a potential exit. 2.Involves a level of risk that is similar to the risk at the time of origination or acquisition. The investment is generally performing as expected, and the risks around our ability to ultimately recoup the cost of the investment are neutral to favorable relative to the time of origination or acquisition. New investments are generally assigned a rating of 2 at origination or acquisition. 3.Indicates an investment performing below expectations where the risks around our ability to ultimately recoup the cost of the investment have increased since origination or acquisition. For debt investments, borrowers are more likely than not in compliance with debt covenants and loan payments are generally not past due. An investment rating of 3 requires closer monitoring. 4.Indicates an investment performing materially below expectations where the risks around our ability to ultimately recoup the cost of the investment have increased materially since origination or acquisition. For debt investments, borrowers may be out of compliance with debt covenants and loan payments may be past due (but generally not more than 180 days past due). Non-accrual status is strongly considered for debt investments rated 4. 5.Indicates an investment performing substantially below expectations where the risks around our ability to ultimately recoup the cost of the investment have substantially increased since origination or acquisition. We do not expect to recover our initial cost basis from investments rated 5. Debt investments with an investment rating of 5 are generally in payment and/or covenant default and are on non-accrual status. The following table shows the composition of our portfolio on the 1 to 5 investment performance rating scale. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors. ($ in millions) As of June 30, 2026 As of December 31, 2025 Investments at Percentage of Investments at Percentage of Investment Performance Rating Fair Value Total Portfolio Fair Value Total Portfolio 1 67.3 4.3 % 67.9 4.3 % 2 1,273.6 81.0 1,290.2 82.2 3 187.7 12.0 165.5 10.5 4 36.4 2.3 33.8 2.2 5 5.7 0.4 12.0 0.8 Total 1,570.7 100.0 % 1,569.4 100.0 % 117 RESULTS OF OPERATIONS Summarized Statement of Operations (in $ millions) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Total investment income $ 36.3 $ 43.0 $ 74.2 $ 85.1 Total net expenses, including taxes 23.2 26.1 45.6 51.6 Net investment income $ 13.1 $ 16.9 $ 28.6 $ 33.5 Net realized gain (loss) on investments and forward contracts (17.8 ) (2.9 ) (29.5 ) (9.4 ) Net unrealized appreciation (depreciation) on investments, forward contracts and foreign transactions 1.5 1.0 (17.9 ) (5.2 ) Net realized and unrealized gains (losses) $ (16.3 ) $ (1.9 ) $ (47.4 ) $ (14.6 ) Net increase (decrease) in net assets resulting from operations $ (3.2 ) $ 15.0 $ (18.8 ) $ 18.9 Investment Income (in $ millions) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Interest from investments $ 34.7 $ 40.2 $ 69.2 $ 80.0 Dividend income 1.2 1.8 4.2 3.2 Other income 0.4 1.0 0.8 1.9 Total investment income $ 36.3 $ 43.0 $ 74.2 $ 85.1 Interest income, which includes amortization of upfront fees, decreased from $40.2 million for the three months ended June 30, 2025, to $34.7 million for the three months ended June 30, 2026, primarily due to a decline in benchmark rates and restructurings of certain debt investments. Included in interest from investments for the three months ended June 30, 2026 and 2025 are $0.2 million and $0.8 million of accelerated accretion of OID related to paydown activity, respectively. Dividend income decreased from $1.8 million for the three months ended June 30, 2025 to $1.2 million for the three months ended June 30, 2026 due to lower dividend income from our investment in First Eagle Logan JV, LLC. For the three months ended June 30, 2026 and 2025, we recorded $0.4 million and $1.0 million of other income related to one-time arranger fees, respectively. Interest income, which includes amortization of upfront fees, decreased from $80.0 million for the six months ended June 30, 2025, to $69.2 million for the six months ended June 30, 2026, primarily due to a decline in benchmark rates and restructurings of certain debt investments. Included in interest from investments for the six months ended June 30, 2026 and 2025 are $0.8 million and $1.6 million of accelerated accretion of OID related to paydown activity, respectively. Dividend income increased from $3.2 million for the six months ended June 30, 2025 to $4.2 million for the six months ended June 30, 2026 due to higher dividend income from our investment in First Eagle Logan JV, LLC and other portfolio companies. For the six months ended June 30, 2026 and 2025, we recorded $0.8 million and $1.9 million of other income related to one-time arranger fees, respectively. 118 Expenses (in $ millions) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Interest and other debt financing costs $ 14.9 $ 15.1 $ 28.6 $ 29.8 Management fees, net of waiver 4.0 5.0 8.9 10.1 Income based incentive fees, net of waiver 2.3 3.6 3.9 7.0 Professional fees 0.6 0.9 1.1 1.6 Directors’ fees 0.2 0.2 0.3 0.3 Other general and administrative expenses 0.7 0.9 1.7 1.9 Total net expenses $ 22.7 $ 25.7 $ 44.5 $ 50.7 Provision for income and excise taxes 0.5 0.4 1.1 0.9 Total $ 23.2 $ 26.1 $ 45.6 $ 51.6 Interest and other debt financing costs Interest and other debt financing costs include interest, amortization of deferred financing costs including upfront commitment fees and unused fees on our credit facilities. For the three months ended June 30, 2026 and 2025 interest and other debt financing costs were $14.9 million and $15.1 million, respectively. For the six months ended June 30, 2026 and 2025 interest and other debt financing costs were $28.6 million and $29.8 million, respectively. The decrease in interest and other debt financing costs was due to lower weighted average cost of debt related to a decline in benchmark rates net of higher weighted average debt outstanding. Base Management Fees For the three months ended June 30, 2026 and 2025, we incurred management fees, net of waivers, of $4.0 and $5.0 million, respectively. For the six months ended June 30, 2026 and 2025 we incurred management fees of $8.9 and $10.1 million, respectively. The decrease in the management fees was due to lower fee rate which became effective April 1, 2026. Incentive Fees For the three months ended June 30, 2026 and 2025, we incurred income based incentive fees, net of waivers, of $2.3 million and $3.6 million, respectively. For the six months ended June 30, 2026 and 2025, we incurred income based incentive fees, net of waivers, of $3.9 million and $7.0 million, respectively. The decrease in net incentive fees was driven by the impact of the fee waiver applied to the income incentive fees for the three months ended March 31, 2026 and the subsequent decrease in the income incentive fee rate which became effective April 1, 2026. Professional Fees and Other General and Administrative Expenses Professional fees generally include expenses from independent auditors, tax advisors, legal counsel and third party valuation agents. Other general and administrative expenses generally include overhead and staffing costs allocated from the Administrator, insurance premiums, sub-administration expenses and miscellaneous administrative costs associated with our operations and investment activity. For the three months ended June 30, 2026 and 2025, professional fees were $0.6 million and $0.9 million, respectively. For six months ended June 30, 2026 and 2025, professional fees were $1.1 million and $1.6 million, respectively. For the three months ended June 30, 2026 and 2025, other general and administrative expenses were $0.7 million and $0.9 million, respectively. For the six months ended June 30, 2026 and 2025, other general and administrative expenses were $1.7 million and $1.9 million, respectively. 119 Income and Excise Taxes For the three months ended June 30, 2026 and 2025, we expensed income and excise taxes of $0.5 million and $0.4 million, respectively. For the six months ended June 30, 2026 and 2025, we expensed income and excise taxes of $1.1 million and $0.9 million, respectively. Net Investment Income For the three months ended June 30, 2026 and 2025, net investment income was $13.1 million or $0.36 per share and $16.9 million or $0.46 per share, respectively. For the six months ended June 30, 2026 and 2025, net investment income was $28.6 million or $0.78 per share and $33.5 million or $0.90 per share, respectively. The decrease in the per share net investment income was due to lower investment income earned net of lower expenses. Net Realized and Unrealized Gains and Losses We value our portfolio investments quarterly and any changes in fair value are recorded as unrealized appreciation (depreciation) on investments. Net realized gains (losses) and net unrealized appreciation (depreciation) on our investment portfolio were comprised of the following: ($ in millions) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Realized losses on non-controlled and non-affiliated investments $ (12.6 ) $ (2.5 ) $ (23.7 ) $ (5.5 ) Realized gains on non-controlled and non-affiliated investments 2.2 — 2.8 — Realized losses on non-controlled and affiliated investments — — — — Realized gains on non-controlled and affiliated investments — — 1.6 — Realized losses on controlled investments (7.7 ) — (11.1 ) (3.8 ) Realized gains on controlled investments 0.2 — 0.2 — Realized losses on foreign currency forwards — — — — Realized gains on foreign currency forwards 0.2 — 0.2 — Realized losses on foreign currency transactions — (0.1 ) — (0.1 ) Realized gains on foreign currency transactions 0.1 (0.4 ) 0.8 — Net realized gains (losses) on investments $ (17.6 ) $ (3.0 ) $ (29.2 ) $ (9.4 ) Change in unrealized depreciation on non-controlled and non-affiliated investments $ (9.3 ) $ (17.6 ) $ (42.7 ) $ (36.4 ) Change in unrealized appreciation on non-controlled and non-affiliated investments 4.3 18.7 25.5 30.5 Change in unrealized depreciation on foreign currency translation — 3.1 — — Change in unrealized appreciation on foreign currency translation — — 0.1 — Change in unrealized depreciation on non-controlled and affiliated investments (0.2 ) (2.1 ) (3.5 ) (3.6 ) Change in unrealized appreciation on non-controlled and affiliated investments 1.2 1.4 1.3 3.2 Change in unrealized depreciation on controlled and affiliated investments (0.1 ) 0.4 (8.5 ) — Change in unrealized appreciation on controlled and affiliated investments 6.0 2.3 10.4 7.1 Change in unrealized depreciation on foreign currency forwards (0.4 ) (5.1 ) (0.5 ) (6.0 ) Change in unrealized appreciation on foreign currency forwards — — — — Net unrealized appreciation (depreciation) on investments $ 1.5 $ 1.1 $ (17.9 ) $ (5.2 ) Net realized and unrealized gains (losses) on investments $ (16.1 ) $ (1.9 ) $ (47.1 ) $ (14.6 ) Hedging We may, but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks. Generally, we do not intend to enter into any such derivative agreements for speculative purposes. Any derivative agreements entered into for speculative purposes are not expected to be material to our business or results of operations. These hedging activities, which are in compliance with applicable legal and regulatory requirements, may include the use of various instruments, including futures, options and forward contracts. We bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful. During the six months ended June 30, 2026 and 2025, our average U.S. Dollar notional exposure, calculated daily on a weighted average based on the duration of each forward contract, to foreign currency forward contracts were $78.5 million and $71.8 million, respectively. 120 FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES The primary uses of our cash and cash equivalents are for (1) investments in portfolio companies and other investments; (2) the cost of operations (including paying the Adviser); (3) debt service, repayment, and other financing costs; and (4) cash distributions to the holders of our common stock. We expect to generate additional liquidity from (1) future offerings of securities, (2) future borrowings and (3) cash flows from operations, including investment sales and repayments as well as income earned on investments. As of June 30, 2026, we had $35.7 million in cash and cash equivalents and restricted cash and cash equivalents and $199.6 million of undrawn capacity on our senior revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. As of June 30, 2026, the undrawn capacity under our facilities and cash and cash equivalents were in excess of our unfunded commitments. As of June 30, 2026, we were in compliance with our asset coverage requirements under the 1940 Act. In addition, we were in compliance with all the financial covenant requirements of our credit facilities as of June 30, 2026. However, an increase in realized losses or unrealized depreciation of our investment portfolio or significant reductions in our net asset value as a result of the effects of the rising rate environment and the potential for a recession increase the risk of breaching the relevant covenant requirements. Any breach of these requirements may adversely affect the access to sufficient debt and equity capital. Debt ($ in millions) June 30, 2026 December 31, 2025 Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value(2)(3) Aggregate Principal Amount Committed Drawn Amount Amount Available (1) Carrying Value(2) SPV Asset Facility $ 500.0 $ 377.8 $ 122.2 $ 372.0 $ 400.0 $ 329.6 $ 70.4 $ 326.4 SMBC Corporate Revolving Facility 335.0 257.6 77.4 256.2 310.0 138.4 171.6 136.7 Series 2021A Unsecured Notes — — — — 135.0 135.0 — 135.0 FCRX Unsecured Notes — — — — 111.6 111.6 — 111.6 Series 2023A Unsecured Notes — — — — 50.0 50.0 — 50.0 Series 2024A Unsecured Notes - 2028 35.0 35.0 — 34.8 35.0 35.0 — 34.8 Series 2024A Unsecured Notes - 2030 80.0 80.0 — 79.5 80.0 80.0 — 79.4 Series 2025A Unsecured Notes - 2029.1 67.5 67.5 — 65.7 — — — — Series 2025A Unsecured Notes - 2031 67.5 67.5 — 65.0 — — — — Series 2025A Unsecured Notes - 2029.2 50.0 50.0 — 49.8 — — — — Total Debt $ 1,135.0 $ 935.4 $ 199.6 $ 922.9 $ 1,121.6 $ 879.6 $ 242.0 $ 873.9 (1)The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments. (2)Amount presented includes netting of deferred financing costs. (3)Carrying value includes the effective portion of the fair value of the interest rate swap, as further discussed in Note 7, Derivatives, to the consolidated financial statements. The combined weighted average interest rate of the aggregate borrowings outstanding for the six months ended June 30, 2026 and 2025 was 6.18% and 6.63%, respectively. The combined weighted average debt of the aggregate borrowings outstanding for the six months ended June 30, 2026 and 2025 was $925.7 million and $900.6 million, respectively. As of June 30, 2026 and December 31, 2025, the weighted average cost of debt was 6.13% and 5.83%, respectively. 121 SPV Asset Facility On March 28, 2016, Crescent Capital BDC Funding, LLC (“CCAP SPV”), a wholly owned subsidiary of CCAP, entered into a loan and security agreement, as amended from time to time (the “SPV Asset Facility”), with us as the collateral manager, seller and equity holder, CCAP SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. We consolidate CCAP SPV in our consolidated financial statements and no gain or loss is recognized from the transfer of assets to and from CCAP SPV. On May 31, 2024, CCAP SPV entered into the Seventh Amendment to Loan and Security Agreement. The amendment, among other things, (a) extended the last day of the reinvestment period to May 31, 2027, and the stated maturity date to May 31, 2029 and (b) reduced the spread from 2.75% to 2.45%. On April 10, 2025, CCAP SPV entered into the Eighth Amendment to Loan and Security Agreement. The amendment, among other things, (a) reduced the spread from 2.45% to 1.95%, and (b) reduced the facility size from $500.0 million to $400.0 million. On May 21, 2026, CCAP SPV entered into the Ninth Amendment to Loan and Security Agreement. The amendment, among other things, (a) increased the spread from 1.95% to 2.00%, (b) increased the facility size from $400.0 million to $500.0 million, (c) extended the last day of the reinvestment period to May 21, 2029, and the stated maturity date to May 21, 2031, and (d) reduced the non-usage fee from 0.50% to 0.35%. The maximum commitment amount under the SPV Asset Facility is $500.0 million, and may be increased with the consent of Wells Fargo or reduced upon our request. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to us in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of (a) the date the borrower voluntarily reduces the commitments to zero, (b) May 21, 2031 and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at daily simple SOFR plus a 2.00% margin with no floor. We pay unused facility fees of 0.35% per annum on committed but undrawn amounts under the SPV Asset Facility. The unused facility fee rate may vary based on the utilization. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. The facility size is subject to availability under the borrowing base, which is based on the amount of CCAP SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits. SMBC Corporate Revolving Facility On October 27, 2021, we entered into a senior secured revolving credit agreement, as amended from time to time, with Sumitomo Mitsui Banking Corporation, as administrative agent, collateral agent and lender (the “SMBC Corporate Revolving Facility”). On December 3, 2024, we amended the SMBC Corporate Revolving Facility. The amendment, among other things, (i) decreased the size of the aggregate revolving commitment from $350.0 million to $285.0 million, (ii) added an initial term commitment of $25.0 million for an aggregate facility size of $310.0 million, (iii) increased the interest rate by 0.125% so that borrowings under the revolving commitment will bear interest at the applicable benchmark rate plus 2.000% or 2.125%, subject to certain provisions, (iii) extended the facility termination to December 3, 2029 and (iv) extended the facility revolving commitment period termination to December 1, 2028. On June 18, 2026, we increased the dollar commitments from $140.0 million to $165.0 million and increased the maximum principal amount of the SMBC Corporate Revolving Facility from $310.0 million to $335.0 million. The maximum principal amount of the SMBC Corporate Revolving Facility is $335.0 million, comprised of $25.0 million term loan and $310.0 million revolving commitment, subject to availability under the borrowing base. Borrowings under the SMBC Corporate Revolving Facility bear interest at adjusted SOFR plus 2.000% or 2.125%, subject to certain provisions in the SMBC Corporate Revolving Facility agreement, with no benchmark rate floor. We pay unused facility fees of 0.375% per annum on committed but undrawn amounts under the SMBC Corporate Revolving Facility. Any amounts borrowed under the SMBC Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on December 3, 2029. Series 2021A Unsecured Notes On February 17, 2021, we completed a private offering of $135.0 million aggregate principal amount of 4.00% senior unsecured notes due February 17, 2026 (the “Series 2021A Unsecured Notes”). The initial issuance of $50.0 million of Series 2021A Unsecured 122 Notes closed February 17, 2021. The issuance of the remaining $85.0 million of 2026 Unsecured Notes closed on May 5, 2021. The Series 2021A Unsecured Notes matured and were repaid on February 17, 2026. FCRX Unsecured Notes On March 9, 2023, in connection with the FCRD Acquisitions, we assumed $111.6 million of 5.00% unsecured notes ("FCRX Unsecured Notes"). On May 22, 2026, the Company repaid the FCRX Unsecured Notes in full. Series 2023A Unsecured Notes On May 9, 2023, we completed a private offering of $50.0 million aggregate principal amount of 7.54% senior unsecured notes due July 28, 2026 ("Series 2023A Unsecured Notes"). On June 29, 2026, the Company exercised its option to prepay Series 2023A Unsecured Notes in full. Series 2024A Unsecured Notes - 2028 and 2030 On February 18, 2025, we issued $115.0 million aggregate principal amount of two tranches of senior unsecured notes: (a) $35.0 million 6.77% notes due February 18, 2028 ("Series 2024A Unsecured Notes - 2028") and (b) $80.0 million 6.90% notes due February 18, 2030 ("Series 2024A Unsecured Notes – 2030") . Interest on both unsecured notes is payable semiannually, on the 18th day of February and August in each year, commencing with August 18, 2025. Both tranches may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable. Series 2025A Unsecured Notes - 2029.1 and 2031 On February 13, 2026, we issued $135.0 million aggregate principal amount of two tranches of senior unsecured notes: (a) $67.5 million 5.87% notes due February 13, 2029 ("Series 2025A Unsecured Notes - 2029.1") and (b) $67.5 million 6.20% notes due February 13, 2031 ("Series 2025A Unsecured Notes – 2031"). Interest on both unsecured notes is payable semiannually, on the 13th day of February and August in each year, commencing with August 13, 2026. Both tranches may be redeemed in whole or in part, at our option, at any time or from time to time at par plus a “make-whole” premium, if applicable. In connection with the issuance of the Series 2025A Unsecured Notes - 2029.1 and 2031, we entered into an interest rate swap to swap from a fixed rate of interest to a floating rate of interest. With respect to the Series 2025A Unsecured Notes - 2029.1, the notional amount of the interest rate swap is $67.5 million, pursuant to which we receive fixed rate interest at 5.87% and pay floating rate interest based on three month term SOFR plus 2.5325%. Such interest rate swap matures on February 13, 2029. With respect to the Series 2025A Unsecured Notes - 2031, the notional amount of the interest rate swap is $67.5 million, pursuant to which we receive a fixed rate interest at 6.20% and pay floating rate interest based on three month term SOFR plus 2.8050%. Such interest rate swap matures on February 13, 2031. Series 2025A Unsecured Notes - 2029.2 On May 22, 2026, we issued $50.0 million 5.97% notes due May 22, 2029 ("Series 2025A Unsecured Notes - 2029.2"). Interest is payable semiannually, on the 22nd day of May and November in each year, commencing with November 22, 2026. These notes may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable. The summary of costs incurred in connection with our credit facilities and unsecured debt is presented below: ($ in millions) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Borrowing interest expense (1) $ 14.0 $ 13.3 $ 26.9 $ 27.0 Unused facility fees 0.2 0.2 0.4 0.6 Amortization of financing costs 0.7 1.6 1.3 2.2 Interest and other debt financing costs $ 14.9 $ 15.1 $ 28.6 $ 29.8 Weighted average outstanding balance $ 943.5 $ 898.9 $ 925.7 $ 900.6 123 (1) For the three and six months ended June 30, 2026, includes $0.14 and $(0.05), and $0.14 and $(0.03) million, respectively, of the impact related to the interest rate swaps and hedged items Series 2025A Unsecured Notes - 2029.1 and 2031, respectively. There were no interest rate swaps outstanding for the comparative period. To the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced opportunities, or if our Board otherwise determines that leveraging our portfolio would be in our best interest and the best interests of our stockholders, we may enter into new debt financing opportunities in addition to our existing debt. The pricing and other terms of any such opportunities would depend upon market conditions and the performance of our business, among other factors. In accordance with applicable SEC staff guidance and interpretations, effective May 5, 2020 with stockholder approval, we, as a BDC, are permitted to borrow amounts such that our asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ depends on our Adviser’s and our Board’s assessment of market conditions and other factors at the time of any proposed borrowing. As of June 30, 2026 and December 31, 2025, our asset coverage ratio was 169% and 179%, respectively. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions. See Note 6. Debt to our consolidated financial statements for more detail on the debt facilities. OFF BALANCE SHEET ARRANGEMENTS Our investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on our Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. As of June 30, 2026 and December 31, 2025, we had aggregate unfunded commitments totaling $195.2 million and $211.9 million, respectively. RECENT DEVELOPMENTS On August 6, 2026, the Company's Board of Directors declared a regular third quarter cash dividend of $0.34 per share, payable on October 15, 2026 to stockholders of record as of September 30, 2026.