Financial Performance - Net investment income per common share was $0.39 for Q2 2025, consistent with GAAP and adjusted for asset acquisition accounting[13] - Adjusted Net Income per Common Share for Q2 2024 was $0.35, compared to $0.39 in Q3 2024 and $0.40 in Q4 2024[18] - Adjusted net investment income (NII) for Q2 2025 is reported at $0.39 per share, compared to $0.79 per share for the year-to-date[37] - Net Investment Income for Q2 2025 was $28,250 thousand, a rise from $25,998 thousand in Q2 2024, reflecting an increase of approximately 4.8%[74] - Interest income in Q2 2025 was $60,830 thousand, up from $48,710 thousand in Q2 2024, indicating a growth of around 24.8%[74] Asset and Portfolio Valuation - NAV per share decreased to $16.43 as of June 30, 2025, down from $16.63 as of March 31, 2025[13] - Total investments at fair value increased to $2,335 million by Q2 2025, up from $1,726 million in Q2 2024[19] - The fair value of the portfolio increased to $2.088 billion as of June 30, 2025, up from $2.002 billion at the end of the previous quarter[39] - The net asset value (NAV) per share as of June 30, 2025, is $16.63, reflecting an increase from $16.43 at the end of the previous quarter[38] - Non-accrual investments represented 3.0% of the total portfolio based on amortized cost as of June 30, 2025[13] Investment Activity - Record originations resulted in $375.7 million of fundings at CGBD, with a weighted average yield of 10.0%[13] - Total repayments and sales during the quarter were $138.0 million, with a weighted average yield of 10.9%[13] - New investment fundings in first lien debt totaled $372,335 thousand in Q2 2025, a significant increase from $77,431 thousand in Q2 2024[22] - First lien debt represented 85.6% of the total investment portfolio by Q2 2025, up from 70.9% in Q2 2024[19] Liquidity and Debt - Total liquidity as of June 30, 2025, was $613.1 million in cash and undrawn debt capacity[13] - Statutory leverage increased to 1.10x as of June 30, 2025, compared to 1.04x as of March 31, 2025[13] - The company upsized total commitments at its senior secured Credit Facility by $25.0 million, bringing total commitments to $960.0 million[14] - As of June 30, 2025, total commitments for balance sheet financing facilities amounted to $1.950 billion, with outstanding debt of $1.319 billion[34] - The weighted average maturity of the outstanding debt is 6.4 years, with a weighted average pricing of 6.34%[35] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.40 for Q3 2025, equating to an annualized dividend yield of 9.7%[13] - The company has an estimated $0.89 per share of spillover income available to support its quarterly dividend[45] - The company’s market capitalization is approximately $999 million, with a dividend yield of 9.7%[45] Management and Strategy - Carlyle Direct Lending targets middle market companies with EBITDA of $25 million or greater, focusing on non-cyclical firms backed by high-quality financial sponsors[64] - The company employs a disciplined underwriting process to deliver sustainable current cash income from predominantly first lien, secured, floating rate instruments[64] - Carlyle's investment strategy includes opportunistic credit solutions for non-sponsored companies, focusing on CLO tranches and structured equity[62] - The company emphasizes a defensive approach to lending, aiming to mitigate risks associated with market volatility[64] Non-GAAP Measures - Carlyle's non-GAAP measures, including Adjusted Net Investment Income, are used to evaluate financial results and performance, excluding one-time or non-recurring events[67] - The management emphasized the usefulness of non-GAAP financial measures for analyzing and evaluating financial results and performance[70] - The company uses non-GAAP financial measures to compare its financial results with those of other business development companies that do not have similar one-time or non-recurring events[70] - The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP[70] - The company believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends[70]

Company Overview - Carlyle Secured Lending, Inc. is a publicly traded business development company (BDC) listed on NASDAQ under the ticker CGBD, which began its investment activities in 2013 [3] - The company focuses on providing directly originated financing solutions, primarily senior secured lending to middle-market companies in the United States [3] - Carlyle Secured Lending is externally managed by Carlyle Global Credit Investment Management L.L.C., a wholly owned subsidiary of Carlyle [3] Upcoming Financial Results - Carlyle Secured Lending will announce its financial results for the second quarter ended June 30, 2025, on August 5, 2025 [1] - A conference call to discuss these results will be held on August 6, 2025, at 11:00 a.m. EST [1] Carlyle Group Overview - Carlyle Group is a global investment firm with $453 billion in assets under management as of March 31, 2025 [4] - The firm operates across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest [4] - Carlyle employs over 2,300 people across 29 offices on four continents [4]

Core Insights - Carlyle Secured Lending Inc. (NASDAQ: CGBD) has faced a significant decline in portfolio quality and dividend payout ratio in the first quarter of 2025, raising concerns about the sustainability of its current dividend payments [1] Company Summary - The company has reported a substantial decrease in the quality of its investment portfolio, which may impact its financial stability and future dividend distributions [1]

Group 1 - Carlyle Secured Lending (CGBD) reported Q1 results with a dividend yield of 11.5% and a 16% discount to NAV [1] - The net investment income price yield for CGBD is 11.8%, which aligns with market expectations [1]

Core Viewpoint - Small-cap stocks are currently undervalued, presenting potential investment opportunities, especially those offering high dividend yields ranging from 8.3% to 17.1% [2] Group 1: Small-Cap Stocks Overview - The valuation gap between the S&P 500 and S&P 600 is at its widest since the late 1990s, suggesting small-cap stocks are significantly cheaper [2] - The article discusses five small-cap stocks with attractive dividend yields, indicating a potential for high returns despite their current low valuations [2] Group 2: Playtika Holding (PLTK) - Playtika, a mobile game developer, has a dividend yield exceeding 8% but has not raised its payout recently, indicating a decline in earnings and sales [4][5] - Analysts project a 32% increase in profits for 2024, despite the company's struggles in the competitive mobile gaming market [6] - Playtika's valuation is low at 6 times forward earnings, but there are concerns about its growth prospects [7] Group 3: Carlyle Secured Lending (CGBD) - CGBD is a business development company focused on U.S. middle-market companies, primarily investing in first-lien debt [8][9] - Recent earnings reports have shown disappointing results, with an increase in non-accrual loans and a stagnant base dividend of 40 cents per share [10][11] - CGBD shares are trading at a 16% discount to net asset value, but operational challenges raise concerns about future dividend sustainability [12] Group 4: Bain Capital Specialty Finance (BCSF) - BCSF provides financing solutions to a diverse range of companies, with a significant portion of its investments in first-lien debt [13][14] - The company has maintained its regular dividend but has introduced special dividends, raising concerns about future dividend coverage due to declining net investment income projections [16][17] - Analysts expect BCSF's dividend ratios to be high, leaving little room for error in case of operational difficulties [17] Group 5: Two Harbors Investment Corp. (TWO) - TWO operates in the mortgage REIT sector, focusing on mortgage servicing rights and agency residential mortgage-backed securities [19][22] - The company has faced significant share price declines, resulting in a high yield of over 17%, but recent litigation charges could impact its book value and dividend sustainability [24][25] - TWO's current dividend rate of 45 cents per share is at risk due to the potential impact of litigation on earnings available for distribution [25] Group 6: Franklin BSP Realty Trust (FBRT) - FBRT is a mortgage REIT focused on commercial mortgage-backed securities, with a significant portion of its portfolio in multifamily properties [26][27] - The company is trading at a 28% discount to book value, with a low P/E ratio based on 2026 earnings estimates, indicating potential value [28] - Concerns exist regarding the stability of its dividend, as the payout has not changed since 2021, and market conditions could necessitate a review of the dividend policy [29][30]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated GAAP net investment income of $0.40 per share and adjusted net investment income of $0.41 per share, representing a decline of $0.04 per share from the prior quarter due to tighter yields and lower base rates [7][14] - The net asset value (NAV) as of March 31 was $16.63 per share, down from $16.80 per share as of December 31 [8] - Total investment income for the first quarter was $55 million, consistent with the prior quarter, while total expenses increased to $33 million primarily due to higher interest expenses [13] Business Line Data and Key Metrics Changes - The company added approximately $180 million in organic originations to its portfolio during the quarter, despite muted sponsor M&A activity [8] - The total size of the portfolio increased from $1.9 billion to $2.5 billion, bolstered by the merger with CSL3 and the consolidation of Credit Fund II [9] - The portfolio comprised 195 investments in 138 companies across more than 25 industries, with 94% of investments in senior secured loans [12] Market Data and Key Metrics Changes - The broadly syndicated and private credit markets remained competitive, with recent volatility around tariffs posing a near-term headwind to capital markets and M&A activity [9][10] - Non-accruals increased to 1.6% of total investments at fair value, indicating some underperformance in a handful of names [17] Company Strategy and Development Direction - The strategic merger with CSL3 is expected to improve liquidity and reduce costs while maintaining the existing investment strategy due to the near 100% overlap between the portfolios [11] - The company is focused on overall credit performance and diversification, with a selective underwriting approach to take quality credits at the top of the capital structure [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted minimal direct risk from tariffs, estimating that less than 5% of the portfolio has material direct exposure [10] - The company anticipates a strong pipeline of transactions in the second quarter, aiming to reach its target leverage range of 1.0 [35][36] Other Important Information - The Board of Directors declared a second-quarter dividend of $0.40 per share, representing an attractive yield of about 11% based on the recent share price [15] - The company has $0.85 per share of spillover income generated over the last five years, providing comfort in maintaining the base dividend [15] Q&A Session Summary Question: On the credit fund, what does the dividend look like going forward? - Management indicated that the dividend is expected to be flat in the near term, with overall NII being roughly neutral due to higher ROE on a lower capital base [25] Question: Is there any asset rotation expected post-merger? - Management confirmed that the merger resulted in a reduction in yield by about 15 basis points, with plans to selectively rotate lower spread assets into the current joint venture for better returns [31][32] Question: How does the company plan to drive leverage back into the target range? - Management aims to achieve the target leverage range over the next couple of quarters, with a strong pipeline of transactions anticipated for the second quarter [35][36] Question: How much spillover income is expected to support the dividend? - Management stated that while spillover income may support the dividend, the extent and speed of the impact from the SOFR curve remain uncertain [39][42]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated GAAP net investment income of $0.40 per share and adjusted net investment income of $0.41 per share, reflecting a decline of approximately $0.04 per share from the prior quarter due to tighter yields and increased non-accruals [7][13] - The net asset value (NAV) as of March 31 was $16.63 per share, down from $16.80 per share as of December 31 [7] - Total investment income for the first quarter was $55 million, consistent with the prior quarter, while total expenses increased to $33 million primarily due to higher interest expenses [12] Business Line Data and Key Metrics Changes - The company added approximately $180 million in organic originations to its portfolio during the quarter, despite muted sponsor M&A activity [7] - The total size of the portfolio increased from $1.9 billion to $2.5 billion, bolstered by the merger with CSL3 and the consolidation of Credit Fund II [8] Market Data and Key Metrics Changes - The broadly syndicated and private credit markets remained competitive, with recent volatility around tariffs posing a near-term headwind to overall capital markets and M&A activity [8][9] - The company estimates that less than 5% of its portfolio has material direct exposure to tariffs, indicating minimal potential direct risk [9] Company Strategy and Development Direction - The strategic merger with CSL3 is expected to improve liquidity and reduce costs while maintaining the existing investment strategy due to the near 100% overlap between the portfolios [10] - The company is focused on overall credit performance and diversification, continuing to deploy and increase the size of its portfolio [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the portfolio remains resilient, there is a focus on sourcing transactions with significant equity cushions and conservative leverage profiles [21] - The company anticipates a strong pipeline of transactions heading into Q2, despite a near-term slowdown in overall activity [36] Other Important Information - The Board of Directors declared a second-quarter dividend of $0.40 per share, representing an attractive yield of about 11% based on the recent share price [14] - The company has $0.85 per share of spillover income generated over the last five years, providing comfort in maintaining the base dividend [14] Q&A Session Summary Question: On the credit fund, what does the dividend look like going forward? - Management indicated that the nominal value outstanding for the credit fund is expected to be flat in the near term, with overall NII being roughly neutral due to higher ROE on a lower capital base [26] Question: Is there any asset rotation expected post-merger? - Management confirmed that the overall yield from the merged portfolio is lower, resulting in a reduction of about 15 basis points for CGBD, with selective rotation of lower spread assets planned [32] Question: How does the company plan to manage portfolio leverage? - The target leverage is set at 1.1, with expectations to reach this range over the next couple of quarters, supported by a strong pipeline of transactions [36] Question: How will spillover income support the dividend? - Management stated that while there are uncertainties, the intention is to remain consistent with the dividend, assessing the situation on a quarter-by-quarter basis [44]

Company Performance - Carlyle Secured Lending, Inc. (CGBD) reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.43 per share, and down from $0.54 per share a year ago, representing an earnings surprise of -4.65% [1] - The company posted revenues of $36.26 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 15.40%, and down from $44.14 million year-over-year [2] - Over the last four quarters, Carlyle Secured Lending has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Stock Performance - Carlyle Secured Lending shares have declined approximately 20.6% since the beginning of the year, compared to a decline of -3.9% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $53.34 million, and for the current fiscal year, it is $1.71 on revenues of $200.34 million [7] Industry Outlook - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the outlook for the industry can significantly impact stock performance [5][8]

Carlyle Secured Lending, Inc. Quarterly Earnings Presentation March 31, 2025 Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CGBD" or the "Company") (NASDAQ: CGBD) and may only be used for informational purposes only. This Presentation should be viewed in conjunction with the earnings conference call of the Company held on May 7, 2025 and the Company's Quarterl ...

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Carlyle Secured Lending, Inc., detailing its financial position, operations, and cash flows for Q1 2025 and 2024 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The Consolidated Statements of Assets and Liabilities show a significant increase in total assets from **$1.93 billion** at year-end 2024 to **$2.53 billion** as of March 31, 2025, primarily driven by a rise in total investments at fair value Consolidated Balance Sheet Highlights (in thousands, except per share data) | Metric | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total investments, at fair value | $2,245,626 | $1,803,543 | | Total assets | $2,533,808 | $1,925,993 | | Debt and secured borrowings | $1,247,186 | $960,949 | | Total liabilities | $1,321,419 | $1,020,789 | | Total net assets | $1,212,389 | $905,204 | | Net assets per common share | $16.63 | $16.80 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, the company reported total investment income of **$54.9 million**, a decrease from **$62.0 million** in the prior year period, resulting in a net increase in net assets from operations of **$14.1 million** Consolidated Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total investment income | $54,864 | $62,007 | | Total expenses | $32,559 | $32,728 | | Net investment income (loss) | $21,629 | $28,449 | | Net increase in net assets from operations | $14,054 | $29,264 | | Basic earnings per common share | $0.25 | $0.56 | | Diluted earnings per common share | $0.25 | $0.52 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by **$307.2 million** during Q1 2025, reaching **$1.21 billion**, primarily driven by capital transactions including the CSL III Merger and Preferred Stock Exchange - Net assets increased from **$905.2 million** at the beginning of the period to **$1,212.4 million** at the end of the period[10](index=10&type=chunk) - Key capital transactions included the issuance of **$315.8 million** in common stock for the CSL III Merger and a **$50.0 million** common stock issuance related to the Preferred Stock Exchange[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$145.8 million**, leading to a net increase in cash of **$194.3 million**, bringing the end-of-period balance to **$250.9 million** Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $145,801 | $81,005 | | Net cash provided by (used in) financing activities | $48,507 | $(71,531) | | Net increase in cash, cash equivalents and restricted cash | $194,308 | $9,474 | | Cash, cash equivalents and restricted cash, end of period | $250,883 | $69,921 | - Significant non-cash activities in Q1 2025 included the acquisition of CSL III, which involved assuming **$483.7 million** in investments and **$206.0 million** in debt, and the issuance of **$315.8 million** in common stock[13](index=13&type=chunk) [Consolidated Schedules of Investments](index=9&type=section&id=Consolidated%20Schedules%20of%20Investments) The investment portfolio had a fair value of **$2.25 billion**, heavily concentrated in First Lien Debt (**83.4%**), diversified across industries, with most investments in the U.S. and nearly all debt at floating rates Investment Portfolio Composition by Type (March 31, 2025) | Type | Fair Value | % of Fair Value | | :--- | :--- | :--- | | First Lien Debt | $1,873,091 | 83.4% | | Second Lien Debt | $129,629 | 5.8% | | Equity Investments | $121,515 | 5.4% | | Investment Funds | $121,391 | 5.4% | | **Total** | **$2,245,626** | **100.0%** | Top 5 Industry Concentrations by Fair Value (March 31, 2025) | Industry | % of Fair Value | | :--- | :--- | | Healthcare & Pharmaceuticals | 13.5% | | Software | 13.2% | | Consumer Services | 8.2% | | Diversified Financial Services | 7.7% | | Business Services | 7.1% | - As of March 31, 2025, the company had total unfunded commitments of **$263.5 million**, consisting of **$157.7 million** in delayed draw commitments and **$105.7 million** in revolving loan commitments[270](index=270&type=chunk)[395](index=395&type=chunk) [Notes to Consolidated Financial Statements (unaudited)](index=43&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) The notes detail accounting policies and significant events, including the CSL III merger, Credit Fund II acquisition, preferred stock exchange, and changes to debt facilities - On March 27, 2025, the company completed its merger with CSL III, issuing **18,935,108 shares** of common stock, adding assets with a fair value of **$539.3 million** and liabilities of **$223.7 million**[74](index=74&type=chunk)[302](index=302&type=chunk)[305](index=305&type=chunk) - On February 11, 2025, the company acquired the remaining membership interest in Middle Market Credit Fund II (Credit Fund II), making it a wholly-owned subsidiary, treated as an asset acquisition[72](index=72&type=chunk)[210](index=210&type=chunk) - In connection with the CSL III merger, all **2,000,000** outstanding shares of preferred stock were exchanged for **3,004,808 shares** of common stock on March 27, 2025, with no preferred stock outstanding as of March 31, 2025[73](index=73&type=chunk)[168](index=168&type=chunk)[273](index=273&type=chunk) - The company's asset coverage ratio was **196.3%** as of March 31, 2025, well above the required minimum of **150%**[229](index=229&type=chunk)[401](index=401&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=86&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In Q1 2025, the company completed transformative mergers, significantly increasing portfolio size to **$2.2 billion**, while managing a slight NAV per share decrease and maintaining strong liquidity [First Quarter 2025 Highlights](index=88&type=section&id=First%20Quarter%202025%20Highlights) Q1 2025 saw significant strategic transactions, expanding the investment portfolio to **$2.2 billion**, with net investment income of **$0.40 per share** and robust total liquidity of **$858.5 million** - Completed the merger with CSL III on March 27, 2025, and the purchase of **100%** ownership in Credit Fund II on February 11, 2025[321](index=321&type=chunk) - Net investment income was **$20.8 million**, or **$0.40 per common share**, with adjusted NII per share at **$0.41**[321](index=321&type=chunk) - NAV per common share decreased to **$16.63** from **$16.80** at the end of the prior quarter[321](index=321&type=chunk) - Total liquidity as of March 31, 2025 was **$858.5 million**, comprising cash and undrawn debt capacity[326](index=326&type=chunk) [Portfolio and Investment Activity](index=93&type=section&id=Portfolio%20and%20Investment%20Activity) The investment portfolio totaled **$2.25 billion**, dominated by first lien debt, with high investment activity driven by mergers and acquisitions, while credit quality remained stable despite an increase in non-accrual investments Portfolio Investment Activity (Q1 2025, at amortized cost) | Activity | Amount (in thousands) | | :--- | :--- | | Total investments, beginning of period | $1,848,212 | | New investments purchased | $325,914 | | Transfer in - CSL III Merger | $485,673 | | Transfer in - Credit Fund II Purchase | $191,201 | | Investments sold or repaid | $(558,441) | | **Total Investments, end of period** | **$2,273,998** | Internal Risk Ratings of Debt Portfolio (by Fair Value) | Rating | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 1 (Lowest Risk) | 0.0% | 0.0% | | 2 | 89.7% | 87.4% | | 3 | 8.5% | 12.0% | | 4 | 1.8% | 0.5% | | 5 (Highest Risk) | 0.0% | 0.1% | - Non-accrual investments represented **1.6%** of the total portfolio at fair value as of March 31, 2025, an increase from **0.6%** at December 31, 2024[342](index=342&type=chunk)[373](index=373&type=chunk) [Consolidated Results of Operations](index=101&type=section&id=Consolidated%20Results%20of%20Operations) Total investment income decreased by **$7.1 million** to **$54.9 million**, and net investment income fell by **$6.8 million** to **$21.6 million**, primarily due to lower portfolio yields and increased non-accruals Results of Operations Comparison (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total investment income | $54,864 | $62,007 | $(7,143) | | Total expenses | $33,235 | $33,558 | $(323) | | Net investment income | $21,629 | $28,449 | $(6,820) | | Net increase in net assets from operations | $14,054 | $29,264 | $(15,210) | - The decrease in investment income YoY was driven by lower yields on the portfolio, stemming from lower base rates, new issue spreads, repricing of existing loans, and an increase in non-accruals[381](index=381&type=chunk) - Interest expense increased by **$0.7 million** YoY due to a higher average principal balance, partially offset by lower benchmark rates[384](index=384&type=chunk) - A significant realized loss of **$22.5 million** was recognized in Q1 2025, primarily related to the restructuring of an investment in Aimbridge Acquisition Co., Inc. and the consolidation of Credit Fund II[378](index=378&type=chunk)[388](index=388&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=105&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position of **$858.5 million**, sufficient to cover unfunded commitments, with a statutory debt-to-equity ratio of **1.04x** and an asset coverage ratio of **196.3%** Sources of Liquidity (in thousands) | Source | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $250,883 | $56,575 | | Available borrowings under Credit Facilities | $607,608 | $509,121 | | **Total Liquidity** | **$858,491** | **$565,696** | - Total outstanding consolidated indebtedness was **$1.26 billion** as of March 31, 2025[390](index=390&type=chunk) - The asset coverage ratio was **196.3%** as of March 31, 2025, compared to the **150%** minimum requirement[401](index=401&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=107&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to valuation and interest rate risks, with **99.4%** of debt investments at floating rates, and a **100 basis point** interest rate increase would boost annual net investment income by **$10.4 million** - The company's primary market risks are valuation risk for its illiquid investments and interest rate risk[403](index=403&type=chunk) - As of March 31, 2025, approximately **99.4%** of the company's debt investments (by fair value) bear interest at floating rates, making income sensitive to interest rate changes[405](index=405&type=chunk) Annualized Interest Rate Sensitivity Analysis (as of March 31, 2025, in thousands) | Basis Point Change | Impact on Interest Income | Impact on Interest Expense | Net Impact on Investment Income | | :--- | :--- | :--- | :--- | | Up 300 bps | $60,064 | $(28,775) | $31,289 | | Up 200 bps | $40,042 | $(19,183) | $20,859 | | Up 100 bps | $20,021 | $(9,592) | $10,429 | | Down 100 bps | $(20,021) | $9,592 | $(10,429) | [Controls and Procedures](index=108&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[411](index=411&type=chunk) - No material changes to the internal control over financial reporting were identified during the first quarter of 2025[412](index=412&type=chunk) Part II. Other Information [Legal Proceedings](index=109&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, nor is it aware of any material threats - As of the report date, the Company is not subject to any material legal proceedings[414](index=414&type=chunk) [Risk Factors](index=109&type=section&id=Item%201A.%20Risk%20Factors) This section highlights the risk of tariffs adversely affecting portfolio companies by increasing costs or reducing demand, and refers readers to the 2024 Form 10-K for extensive risk factors - The company notes that tariffs imposed on foreign or U.S. goods could adversely affect its portfolio companies by increasing production costs or reducing product demand[416](index=416&type=chunk) - Investors are referred to the more extensive risk factors section in the 2024 Form 10-K[415](index=415&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=109&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity securities were sold, and no shares were repurchased under the **$200 million** stock repurchase program during the quarter, with approximately **$42.3 million** remaining - No unregistered equity securities were sold during the period[417](index=417&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | 0 | $0 | $42,263 | | Feb 1 - Feb 28, 2025 | 0 | $0 | $42,263 | | Mar 1 - Mar 31, 2025 | 0 | $0 | $42,263 | - The Board of Directors continued the **$200 million** stock repurchase program until November 5, 2025, with approximately **$42.3 million** remaining available as of March 31, 2025[420](index=420&type=chunk) [Defaults Upon Senior Securities](index=110&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - There were no defaults upon senior securities[421](index=421&type=chunk) [Mine Safety Disclosures](index=110&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[422](index=422&type=chunk) [Other Information](index=110&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025[423](index=423&type=chunk) [Exhibits](index=111&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amended credit and partnership agreements, preferred stock exchange agreements, and officer certifications