Crescent BDC provides business update related to SVB, Signature Bank

In light of the well-publicized recent developments at both Silicon Valley Bank (SIVB) and Signature Bank (SBNY), as well as the broader regional banking sector, the team at Crescent Capital (CCAP) has been in active dialogue with the sponsors and management teams of its portfolio companies to assess exposure to both SVB and Signature as well as their broader banking relationships. Crescent BDC has no direct exposure to SVB or Signature. Crescent BDC does not have cash accounts or deposits with either bank, and from a counterparty exposure perspective, with respect to our liabilities, SVB and Signature are not counterparties. The company said, "From an indirect exposure perspective, our team has been working closely with our portfolio companies to understand their banking relationships and any exposure to SVB or Signature through cash balances and operating bank accounts. While we’ve identified certain instances of portfolio companies having exposure to SVB through deposit accounts only, we believe that the direct risk of cash depository loss of any portfolio company has likely been remediated based on Sunday’s decision by the Treasury, Federal Reserve and FDIC to fully protect all SVB and Signature depositors. Additionally, based on our analysis, we’ve determined that the majority of the SVB deposit account balances held by the identified portfolio companies are immaterial in nature, and would not have meaningfully impacted the companies’ operations should depositor support not have been provided…. None of our portfolio companies have SVB or Signature as a participant in their respective credit facilities. Therefore, we do not believe there is any current liquidity impact on our portfolio companies… At the corporate level, Crescent has no direct exposure to SVB or Signature. Crescent does not have cash accounts or deposits with either bank. Neither SVB nor Signature provide credit facilities to Crescent."