Core Viewpoint - Carlyle Secured Lending, Inc. will announce its financial results for Q4 and the full year of 2024 on February 26, 2025, with a news release prior on February 25, 2025 [1]. 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 specializes in providing directly originated financing solutions, focusing on senior secured lending to middle-market companies primarily in the United States [3]. - Carlyle Secured Lending is externally managed by Carlyle Global Credit Investment Management L.L.C., a registered investment adviser and wholly owned subsidiary of Carlyle [3]. Carlyle Group Overview - Carlyle is a global investment firm with expertise across three business segments: Global Private Equity, Global Credit, and Global Investment Solutions [4]. - As of September 30, 2024, Carlyle has $447 billion in assets under management [4]. - The firm employs over 2,300 people across 29 offices on four continents [4].

Financial Data and Key Metrics Changes - In Q3 2024, the company generated net investment income of $0.47 per share and adjusted net investment income of $0.49 per share, reflecting a stable credit performance and a higher base rate environment [8][14] - The net asset value (NAV) as of September 30 was $16.85 per share, showing a modest decline from the previous quarter [9] - Total investment income for the quarter was $56 million, slightly lower than the prior quarter due to a lower average portfolio balance and lower weighted average yields [13] Business Line Data and Key Metrics Changes - The company reported a significant year-over-year increase in originations during Q3, with a growing pipeline expected to remain strong into 2025 [10] - The portfolio consisted of 175 investments in 128 companies across more than 25 industries, with 94% of investments in senior secured loans [11] Market Data and Key Metrics Changes - The company noted that new issue spreads stabilized in Q3 despite increased competition and cross-market refinancings [10] - The median EBITDA across the core portfolio at quarter end was $85 million, indicating strong underlying performance [12] Company Strategy and Development Direction - The company is focused on maintaining a highly diversified portfolio while increasing origination activity, with a target leverage of 1.1 times at merger close [21][28] - The merger with Carlyle Secured Lending III is expected to close by the end of Q1 2025, which will enhance scale, liquidity, and operational efficiencies [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet and exceed the $0.40 base dividend, although some contraction in earnings is expected due to lower base rates and tighter new issue spreads [16] - The overall credit quality remains stable, with non-accruals decreasing to 0.6% of total investments at fair value [18] Other Important Information - The company declared a total fourth quarter dividend of $0.45 per share, consisting of a base dividend of $0.40 and a supplemental dividend of $0.05 [9][15] - The company successfully issued $300 million of unsecured notes with a fixed rate of 6.75%, diversifying financing sources [20] Q&A Session Summary Question: Outlook on portfolio and balance sheet leverage - Management is optimistic about the pipeline and expects M&A activity to increase in Q4 and Q1 next year, with a current leverage of 0.9 times [27][28] Question: Repayment volume and origination dynamics - Management anticipates a reversal in repayment volume this quarter, with higher overall volume on the new deal side [31] Question: Trends in revenue growth and EBITDA - Management noted strong fundamentals with companies in the portfolio continuing to grow revenue and EBITDA, with growth rates stabilizing in the mid-single digits [36][40]

| --- | --- | --- | |-----------------------------------------------------------------------------------|-------|-------| | | | | | | | | | Carlyle Secured Lending, Inc. Quarterly Earnings Presentation September 30, 2024 | | | 1 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 ...

Financial Performance - Carlyle Secured Lending, Inc. (CGBD) reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, but down from $0.52 per share a year ago, representing an earnings surprise of 2.08% [1] - The company posted revenues of $39.08 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.10%, and down from $42.28 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Carlyle Secured Lending shares have increased approximately 10.2% since the beginning of the year, while the S&P 500 has gained 19.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $40.94 million, and for the current fiscal year, it is $1.96 on revenues of $166.65 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which Carlyle Secured Lending belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Carlyle Secured Lending's stock may be influenced by the overall outlook for the industry [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Carlyle Secured Lending, Inc. (Exact name of Registrant as specified in its charter) FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period to Commission File No. 814-00995 Maryland 80-0789789 (State or other jurisdiction of ...

| --- | --- | --- | --- | |----------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | C A R L Y L E | | | | | Carlyle Secured Lending, Inc. Quarterly Earnings Presentation September 30, 2024 | | | | Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "Company") (NASDAQ: CGBD) and may only be used for informational ...

Core Viewpoint - The BDC market is experiencing heightened volatility due to increased corporate distress and the Federal Reserve's approach to interest rate cuts, which complicates the ability of BDCs to maintain attractive spreads [1][2] BDC Market Dynamics - The anticipated interest rate cuts have not yet led to significant corrections in the BDC sector, but future adjustments are expected as the effects of these cuts permeate through BDC structures [2] - There are early signs of weakening portfolio quality metrics among BDCs, making a focus on quality increasingly critical [2] Stronger BDCs - **Carlyle Secured Lending Inc. (CGBD)**: - Maintained strong total investment income and a high dividend coverage ratio of 128% despite a 25% increase in dividends since early 2022 [4] - Net investment income per share remained stable at $0.51, with a minor non-accrual base of 1.8% expected to decline to 1% in Q3 2024 [4] - Announced a merger with Carlyle Secured Lending III, which is expected to benefit shareholders [4] - **FS KKR Capital (FSK)**: - Total investment income increased by $5 million, with a decrease in interest expenses and management fees, resulting in a $0.02 per share increase [5] - EBITDA levels of underlying portfolio investments grew by approximately 12% year-over-year, with non-accruals declining to 1.8% of total portfolio fair value [5] - FSK trades at a ~17% discount to NAV, with leverage decreasing to 1.09x, below the sector average [5] Weaker BDCs - **Oaktree Specialty Lending (OCSL)**: - Experienced a negative total return of 15% since January 2024, with adjusted net investment income declining to $0.55 per share [6] - Non-accruals increased from 4.3% to 5.7% of the portfolio, leading to a distribution coverage of only 100% [6] - Leverage increased from 1.02x to 1.1x, indicating potential risks despite solid portfolio statistics [6] - **Horizon Technology Finance (HRZN)**: - Investment income decreased from $28 million to $26 million, with per share income dropping from $0.54 to $0.36 year-over-year [7] - The portfolio size has declined due to shallow M&A activity, with repayments exceeding new investments [7] - Debt to equity ratio remains high at 1.36x, indicating balance sheet concerns [7] Conclusion - The BDC market is facing challenges from rising non-accruals, shallow transaction activity, and impending interest rate cuts, necessitating a focus on high-quality and defensive BDCs to sustain distributions and support gradual growth [8]

Carlyle Secured Lending, Inc. (CGBD) announced a definitive agreement to acquire Carlyle Secured Lending III (CSL III) — a private business development company with a similar investment strategy and portfolio. After the closure of this stock-for-stock merger, CGBD's total assets will increase to $2.5 billion and net assets to more than $1.2 billion upon closing. CSL III's investment activities are managed by its investment adviser, CSL III Advisor, an affiliate of Carlyle Group (CG) . Given the substantial ...

NEW YORK, Aug. 7, 2024 /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: Carlyle Secured Lending, Inc. has agreed to mer ...

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% of new debt investment commitments at floating interest rates [320]. - The number of new investment commitments in Q2 2024 was 14, with an average commitment amount of $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% as of June 30, 2024, from 6.95% as of December 31, 2023 [329]. - The Credit Facility has a total capacity of $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% [313]. - The total expenses for the three months ended June 30, 2024, decreased to $31,391 from $33,558 for the three months ended March 31, 2024, a reduction of approximately 6.5% [352]. - Total expenses for the three months ended June 30, 2024, were $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% [345]. - Credit Fund II's portfolio of senior secured loans decreased to $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].