NEW YORK — Chicago Atlantic BDC Inc., formerly Silver Spike Investment Corp., a specialty finance company, announced its financial results for the fourth quarter and year ended December 31, 2024.
Fourth quarter 2024 highlights and subsequent events
- Total investment income of $12.7 million
- Net investment income of $8.0 million, or $0.35 per weighted average share outstanding
- Investment portfolio of $275.2 million at fair value
- Net asset value (“NAV”) per share was $13.20 on December 31, 2024
- As previously announced, on October 1, 2024, the Company acquired a portfolio of loans from Chicago Atlantic Loan Portfolio LLC in exchange for newly issued shares of the Company’s common stock
- In connection with the Loan Portfolio Acquisition, the Company was renamed “Chicago Atlantic BDC, Inc.,” and its ticker symbol was changed to “LIEN.” The changes to the Company’s name and ticker symbol became effective in the market at the open of business on October 2, 2024.
- Declared a dividend of $0.34 per share for each of the quarters ended December 31, 2024 and March 31, 2025
- Closed a new $100 million senior secured revolving credit facility on February 12, 2025
- Funded $24.8 million in investments in the fourth quarter of 2024 and $20.8 million in new investments to date in the first quarter of 2025
- As of December 31, 2024, there were 22,820,386 common shares issued and outstanding on a basic and fully diluted basis
Peter Sack, chief executive officer, commented, “We are pleased to provide the company’s first earnings information following the completion of the Loan Portfolio Acquisition. Since the Loan Portfolio Acquisition, we have continued to create a scaled, diversified portfolio of senior secured investments, generate highly attractive yields, and leverage our industry leading expertise in cannabis and other underserved lending markets.”
“We are quite proud of our achievements to date, including declaring two quarterly dividends of $0.34 per share, a 36% increase from the $0.25 per share dividend for the quarter ended September 30, 2024, closing of a $100 million senior secured revolving credit facility, and deploying an estimated total of $45.6 million in gross fundings by principal value since October 1, 2024.”
Loan portfolio acquisition closing
On October 1, 2024, the Company completed its previously announced acquisition from CALP of the Loan Portfolio in exchange for 16,605,372 newly issued shares of the Company’s common stock. The Loan Portfolio was determined by the Company to have a fair value of $219.6 million as of September 28, 2024. As a result of the Loan Portfolio Acquisition, CALP and legacy Company stockholders owned approximately 72.8% and 27.2%, respectively, of the outstanding shares of the Company’s common stock as of October 1, 2024. Upon the closing of the Loan Portfolio Acquisition, there were 22,820,367 shares of the Company’s common stock outstanding.
$100-million senior secured revolving credit facility
On February 12, 2025, the Company closed a new $100 million senior secured revolving credit facility (the “Credit Facility”) led by an FDIC-insured financial institution. The Credit Facility matures in March 2028 and bears interest at Secured Overnight Financing Rate (“SOFR”) plus 3.00%.
Portfolio and investment activity
As of December 31, 2024, the Company’s investment portfolio had an aggregate fair value of approximately $275.2 million across 28 portfolio companies.
During the quarter ended December 31, 2024, the Company funded eight investments with an aggregate par value of $24.8 million, five of which were in existing borrowers.
During the quarter ended December 31, 2024, the Company had principal repayments and sales of investments of $13.0 million and $4.1 million, respectively, of which $4.9 million was receivable as of December 31, 2024.
As of December 31, 2024, there were no loans on non-accrual status.
Subsequent investment activity
Subsequent to quarter end, the Company funded 4 investments with an aggregate par value of $20.8 million.
Results of operations
For the three months ended December 31, 2024, total investment income was $12.7 million. For the three months ended December 31, 2024, the Company incurred total expenses of $4.7 million, which included $0.3 million of expenses related to the Loan Portfolio Acquisition, resulting in net investment income of $8.0 million, or $0.35 per weighted average share, and a net increase in net assets from operations of $8.0 million, or $0.35 per weighted average share. Excluding expenses incurred in connection with the Loan Portfolio Acquisition, the Company reported net investment income of $8.3 million, or $0.36 per weighted average share, and a net increase in net assets from operations of $8.3 million, or $0.36 per weighted average share.
For the fiscal year ended December 31, 2024, total investment income was $21.7 million. For the fiscal year ended December 31, 2024, the Company incurred total expenses of $12.2 million, which included $5.3 million of expenses related to the Loan Portfolio Acquisition, resulting in net investment income of $9.5 million, or $0.91 per weighted average share, and a net increase in net assets from operations of $9.6 million, or $0.93 per weighted average share. Excluding expenses incurred in connection with the Loan Portfolio Acquisition, the Company reported net investment income of $14.8 million, or $1.43 per weighted average share, and a net increase in net assets from operations of $14.9 million, or $1.45 per weighted average share.
Net asset value
As of December 31, 2024, NAV per share decreased to $13.20 from $13.28 as of September 30, 2024 and $13.77 as of December 31, 2023. The decrease in NAV per share was primarily driven by growth in net investment income from the loan portfolio, offset by dividend payments and transaction expenses related to the Loan Portfolio Acquisition. Total net assets as of December 31, 2024 were $301.2 million, compared to $82.5 million as of September 30, 2024 and $85.6 million as of December 31, 2023.
About Chicago Atlantic BDC Inc.
The Company is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and has elected to be treated as a regulated investment company for U.S. federal income tax purposes. The vompany’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. The company is managed by Chicago Atlantic BDC Advisers LLC, an investment manager focused on the cannabis industry and other niche or underfollowed sectors.
