Chicago Atlantic BDC reports investment income rise
Chicago Atlantic BDC says it has $30 million in liquidity.
Chicago Atlantic BDC, Inc. (NASDAQ: LIEN), formerly Silver Spike Investment Corp. announced its financial results for the third quarter that ended September 30, 2024. Chicago Atlantic BDC reported a total investment income of $3.2 million. This was an improvement over last year’s $2.9 million.
The company’s total expenses were $3.2 million, which included $2.4 million of expenses related to the Loan Portfolio Acquisition. This resulted in a net investment income of $0.0 million, or $0.00 per share. At the end of the quarter, the company had $30.1 million in available liquidity.
Chicago Atlantic BDC also recorded a net unrealized loss of $0.2 million during the quarter which was related to the fair valuation of its debt investments. The company said it experienced a net decrease in net assets from operations of $0.2 million, or $0.03 per share.
CEO Andreas Bodmeier said, “We are in an exciting time in the cannabis sector with federal and state regulatory environments becoming more favorable, and the credit quality of borrowers improving in our markets. In the non-cannabis sectors we target, we are seeing lower middle-market and middle-market companies increasingly underserved by larger banks and private credit providers. Chicago Atlantic has carved a niche with opportunities that are time-sensitive, highly complex or in dislocated sectors where risk is fundamentally mispriced with attractive risk-adjusted returns.”
At the end of the quarter, the NAV per share decreased to $13.28 versus $13.56 at the end of June 2024. The decrease in NAV per share was primarily driven by dividend payments and transaction expenses related to the Loan Portfolio Acquisition. Total net assets as of September 30, 2024, were $82.5 million, compared to $84.3 million as of June 30, 2024.
Following the end of the quarter, the company funded three investments with an aggregate value of $14.5 million and received $9.0 million in proceeds from the repayment of one investment. These included:
- On October 4, 2024, the company exited its debt investment in Story of Maryland, LLC. It received payment in full of $9.01 million on its first lien senior secured delayed draw term loan.
- On October 11, 2024, the company invested an additional $6.82 million in STIIIZY, Inc.’s first lien senior secured term loan maturing on May 26, 2027, for a net consideration of $6.68 million.
- On October 23, 2024, the company funded the $5.00 million unfunded commitment that it assumed in connection with the Loan Portfolio Acquisition with respect to Deep Roots Harvest, Inc.’s first lien senior secured term loan maturing on August 15, 2027, for a net consideration of $4.86 million.
- On November 4, 2024, the company invested $3.00 million in Tulip.IO Inc.’s first lien senior secured term loan maturing on November 4, 2028 for a net consideration of $2.97 million.
