NEW YORK — Chicago Atlantic BDC Inc., a specialty finance company that has elected to be regulated as a business development company, REPORTED its financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights and Subsequent Events
- Total gross investment income of $11.9 million
- Net investment income of $7.6 million, or $0.34 per weighted average share outstanding
- Total investment portfolio of $289.3 million at fair value
- Net asset value (“NAV”) per share was $13.19 on March 31, 2025
- Declared a dividend of $0.34 per share for the quarter ended March 31, 2025, paid on April 11, 2025 to shareholders of record as of March 28, 2025
- Declared a dividend of $0.34 per share for the quarter ended June 30, 2025 payable on July 11, 2025 to shareholders of record of June 27, 2025
- Closed a new $100 million senior secured revolving credit facility on February 11, 2025
- Committed $32.3 million for four new credit facilities, of which $20.8 million in aggregate par value was advanced in the first quarter of 2025
- Subsequent to quarter end, the Company funded $7.2 million in investments across four borrowers to date in the second quarter of 2025
- As of March 31, 2025, there were 22,820,386 common shares issued and outstanding on a basic and fully diluted basis
Peter Sack, Chief Executive Officer of the Company, commented, “We continued our measured deployment during the first quarter and to date in the second quarter, bringing our gross fundings by principal value to $52.8 million since October 1, 2024. The new credit facility provides liquidity to pursue new opportunities and work collaboratively with both cannabis and non-cannabis borrowers seeking capital. We believe our strategy of focusing on senior-secured lending at the top of the capital structure in the lower-middle and middle markets, together with prudent structuring of terms to manage interest rate volatility, has enabled us to navigate the recent volatility in the equity and credit markets. We are well positioned to deploy into a growing originations pipeline as the year progresses.”
$100 Million Senior Secured Revolving Credit Facility
On February 11, 2025, the Company closed a new $100 million senior secured revolving credit facility led by an FDIC-insured financial institution. The Credit Facility matures in March 2028 and bears interest at Secured Overnight Financing Rate plus 3.00% with a floor of 6.00%.
Portfolio and Investment Activity
As of March 31, 2025, the Company’s investment portfolio had an aggregate fair value of approximately $289.3 million across 31 portfolio companies.
During the quarter ended March 31, 2025, the Company committed $32.3 million in aggregate par value and funded four investments with an aggregate par value of $20.8 million, none of which were in existing borrowers.
During the quarter ended March 31, 2025, the Company had principal repayments of $7.6 million of which $3.4 million was receivable as of March 31, 2025.
As of March 31, 2025, there were no loans on non-accrual status.
Results of Operations
For the three months ended March 31, 2025, total investment income was approximately $11.9 million. For the three months ended March 31, 2025, the Company incurred net expenses of approximately $4.3 million, resulting in net investment income of approximately $7.6 million, or $0.34 per weighted average share, and a net increase in net assets from operations of approximately $7.6 million, or $0.33 per weighted average share.
Net Asset Value
As of March 31, 2025, NAV per share was $13.19 compared with $13.20 as of December 31, 2024. The slight decrease in NAV per share was primarily driven by growth in net assets from operations, offset by dividend payments. Total net assets as of March 31, 2025 were $301.0 million compared to $301.2 million as of December 31, 2024 and $84.5 million as of March 31, 2024.
Dividend
The Company’s Board of Directors declared a cash dividend of $0.34 per share.
The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend, stockholders who have not “opted out” of the DRIP in accordance with the terms of the DRIP and the procedures of their broker or other financial intermediary will have their cash dividends automatically reinvested in additional shares of the Company’s common stock. A stockholder whose shares are held by a broker or other financial intermediary should contact their broker or other financial intermediary as soon as possible in order to determine the time by which the stockholder must take action in order to receive dividends in cash.
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 Company’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.
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