Carlyle Credit Income Fund (CCIF) Completes Initial Transition Plan, Declares Monthly Dividends and Announces August 31, 2023 Net Asset Value
NEW YORK, Sept. 12, 2023 /PRNewswire/ -- Carlyle Credit Income Fund (the "Fund" or "CCIF") (NYSE: CCIF) today is pleased to announce the early completion of the initial transition plan following the appointment of Carlyle Global Credit Investment Management L.L.C., an affiliate of Carlyle (together with their affiliates, "Carlyle"), as CCIF's external investment adviser. The transition plan included the following steps:
- Carlyle completed the $10 million one-time Payment to the Fund's shareholders of record on July 14, 2023;
- Carlyle completed the tender offer to purchase $25 million of CCIF shares on August 28, 2023;
- Carlyle made an additional $15 million investment in CCIF in newly issued shares and private share purchase;
- Successfully deployed the available initial cash proceeds for investments received from the portfolio sale announced on July 11, 2023, into a diverse pool of collateralized loan obligations (CLOs); and
- Declaration of a monthly dividend for September, October, and November 2023 equating to a 14.0% annualized dividend, higher than the 12.0% target dividend yield previously disclosed to investors.
"We are excited to announce that Carlyle has completed the initial CCIF transition plan ahead of schedule," said Lauren Basmadjian, Chief Executive Officer of Carlyle Credit Income Fund. "We are pleased with the outcome which allowed us to increase the dividend and deliver NAV appreciation over a short period of time. We will continue to leverage Carlyle's expertise in CLOs to benefit the shareholders of CCIF."
CCIF is declaring a monthly dividend on shares of the Fund's common stock of $0.0994 per share for September, October, and November 2023. The dividends are payable on September 29, 2023, October 31, 2023, and November 30, 2023, respectively, to shareholders of record as of September 22, 2023, October 19, 2023, and November 17, 2023, respectively. The monthly dividend represents an annualized yield of 14.0% based on $8.52 net asset value as of August 31, 2023.
Net asset value has increased from $8.27 at closing of the transaction to $8.52 as of August 31, 2023. The increase is primarily driven by an appreciation of value of the CLOs held by the Fund and the exit of one of the two remaining legacy real estate positions at a price substantially higher than the Fund's mark.
Dividends on common stock are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the dividends will be reported to the Company's shareholders on Form 1099 after the end of the 2023 calendar year.
Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund dividend rates relative to similar investments, investors' expectations for future dividend changes, the clarity of the Fund's investment strategy and future return expectations, and investors' confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. No fund is a complete investment program and you may lose money investing in the Fund. An investment in the Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund's investment objective, risks, charges and expenses. For further details, please visit Carlyle Credit Income Fund's website at www.carlylecreditincomefund.com.
This release may contain forward-looking statements relating to the business and financial outlook of Carlyle Credit Income Fund that are based on the Fund's current expectations, estimates, forecasts and projections and are not guarantees of future performance. There is no assurance that CCIF will achieve its investment objective. Actual results may differ materially from those in the forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release.
About Carlyle Credit Income Fund
Carlyle Credit Income Fund (NYSE: CCIF) is an externally managed closed-end fund focused on investing in primarily equity and junior debt tranches of collateralized loan obligations ("CLOs"). The CLOs are collateralized by a portfolio consisting primarily of U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors. With Carlyle (NASDAQ: CG) as its investment adviser, CCIF draws upon the significant scale and resources of Carlyle as one of the world's largest CLO managers. For more information visit www.carlylecreditincomefund.com.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $385 billion of assets under management as of June 30, 2023, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
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