Carlyle Secured Lending(CGBD) - 2024 Q2 - Quarterly Report

Financial Performance - Net investment income for Q2 2024 was $26.0 million, or$0.51 per common share, with dividends declared totaling $23.9 million, or$0.47 per share [304]. - Basic earnings per common share for Q2 2024 were recorded at $0.35, with dividends declared at$0.47 per common share [309]. - Total investment income for Q2 2024 was $58,264,000, down from$62,007,000 in Q1 2024, representing a decrease of 11.2% [313]. - Net investment income for Q2 2024 was $26,873,000, compared to$28,449,000 in Q1 2024, reflecting a decline of 5.5% [313]. - Total investment income for the three months ended June 30, 2024, was $58,264, down from$62,007 for the three months ended March 31, 2024, a decrease of approximately 4.5% [352]. - Net investment income for the three months ended June 30, 2024, was $26,873, compared to$28,449 for the three months ended March 31, 2024, reflecting a decrease of 5.5% [352]. - Net realized gains on investments for the three months ended June 30, 2024, were $5,118, compared to$1,209 in the same period of 2023 [367]. Investment Portfolio - As of June 30, 2024, the company held 180 investments across 126 portfolio companies, with a total fair value of $1.7 billion [305]. - The total investments at amortized cost as of June 30, 2024, amounted to$1,783,219,000, down from $1,829,575,000 at the beginning of the period [320]. - The fair value of total investments as of June 30, 2024, was$1,726,050,000, with 98.2% classified as performing investments [327]. - The geographical composition of investments shows that 90.0% of fair value is in the United States, with Canada at 3.4% and the United Kingdom at 4.0% [316]. - As of June 30, 2024, 83.3% of the fair value of investments was rated as Internal Risk Rating 2, indicating stable performance [326]. - The company made new investments totaling $81,865,000 during Q2 2024, with 95.2$7,371,000 [320]. - The fair value of loans on non-accrual status increased to $30,209 as of June 30, 2024, from$3,792 as of March 31, 2024, representing a significant increase [354]. Debt and Liquidity - Total liquidity as of June 30, 2024, was $399.1 million in cash and undrawn debt capacity [306]. - The weighted average interest rate on secured debt decreased to 6.90$790,000, with borrowings outstanding of $236,246 and an unused portion of$553,754 as of June 30, 2024 [331]. - Cash, cash equivalents, and restricted cash increased to $92,222 as of June 30, 2024, from$60,447 as of December 31, 2023, representing a growth of 52.7% [373]. - Total liquidity decreased to $399,149 as of June 30, 2024, from$420,122 as of December 31, 2023, a decline of 5.0% [373]. - Unfunded delayed draw commitments rose to $95,630 as of June 30, 2024, compared to$68,017 as of December 31, 2023, an increase of 40.6% [376]. - The company had $911,230 of outstanding consolidated indebtedness as of June 30, 2024 [369]. - The net financial leverage ratio improved to 0.90x as of June 30, 2024, from 1.02x at the end of 2023 [372]. Expenses - The total expenses for Q2 2024 were$31,391,000, down from $33,558,000 in Q1 2024, indicating a decrease of 6.5$31,391 from $33,558 for the three months ended March 31, 2024, a reduction of approximately 6.5$31,391, down from $32,890 in the same period of 2023, a decrease of$1,499 [361]. Refinancing and Mergers - A merger agreement was entered into on August 2, 2024, involving Carlyle Secured Lending III, with the company continuing as the surviving entity [307]. - The company completed a $410.0 million refinancing of the 2015-1R Notes on July 2, 2024, extending the reinvestment period by four years and reducing the cost of debt by 22 basis points [308]. - The Company completed the 2015-1R Refinancing on July 2, 2024, resulting in the issuance of$410,000 in collateralized loan obligations [340]. Investment Commitments and Returns - The annualized dividend yield from the Credit Fund was 11.4% as of both June 30, 2024, and December 31, 2023 [343]. - The Company has commitments to fund up to $250,000 in the Credit Fund, which primarily invests in first lien loans of middle market companies [341]. - The number of portfolio companies in Credit Fund decreased from 38 to 32, indicating a reduction of 15.8$228,033 as of June 30, 2024, down from $255,486 as of December 31, 2023, a decline of approximately 10.7% [350]. - The weighted average yield of senior secured loans in Credit Fund II based on amortized cost decreased to 11.7% from 12.0% [350].