Carlyle Secured Lending(US:CGBD)2025-08-05 20:02Financial Performance - For the three months ended June 30, 2025, Carlyle Secured Lending, Inc. recorded basic earnings per common share of $0.20, a decrease from $0.25 in the previous quarter [322]. - Net investment income for the same period was $28.3 million, or $0.39 per common share, reflecting an increase from $21.6 million in the prior quarter [321]. - Total investment income for the quarter was $67.3 million, compared to $54.9 million in the previous quarter [325]. - Adjusted Net Investment Income for the three months ended June 30, 2025, was $28,136, compared to $21,124 for the previous quarter, reflecting a 33.1% increase [329]. - Adjusted Net Income for the same period was $14,630, up from $13,228, representing a 10.6% increase [329]. - The net investment income for the three months ended June 30, 2025, was $28,250, an increase of 30.6% from $21,629 for the three months ended March 31, 2025 [368]. - Total investment income for the three months ended June 30, 2025, was $67,281, an increase of 15.5% from $58,264 in the same period of 2024 [1]. - Interest income rose to $55,641 for the three months ended June 30, 2025, compared to $42,949 in 2024, marking a 29.5% increase [1]. - Net investment income for the three months ended June 30, 2025, was $28,250, a 5.1% increase from $26,873 in 2024 [1]. Liquidity and Capital Structure - Total liquidity as of June 30, 2025, was $613.1 million, consisting of cash and undrawn debt capacity [319]. - The company had $613,076 in liquidity as of June 30, 2025, compared to $565,696 as of December 31, 2024 [2]. - As of June 30, 2025, total unfunded commitments amounted to $332,012, an increase from $179,247 as of December 31, 2024 [397]. - The statutory debt to equity ratio was 1.10x as of June 30, 2025, down from 1.20x as of December 31, 2024 [2]. - The company is permitted to borrow up to two dollars for investment purposes for every one dollar of investor equity under the amended minimum asset coverage ratio of 150% [400]. Investment Portfolio - Carlyle Secured Lending, Inc. held 202 investments across 148 portfolio companies with a total fair value of $2.3 billion as of June 30, 2025 [321]. - The fair value of total investments was $2,334,961, with 97.9% classified as performing investments [341]. - The geographical composition of investments showed that 87.6% were in the United States, with the next highest being Canada at 3.8% [333]. - The industry composition revealed that Healthcare & Pharmaceuticals accounted for 15.3% of the fair value of investments [334]. - The weighted average yield on total debt and income-producing investments at fair value was 11.1% as of June 30, 2025 [331]. - The company made 27 new investment commitments during the three months ended June 30, 2025, with an average commitment amount of $16,066 [335]. - The weighted average Internal Risk Rating of the investment portfolio was 2.1, with 89.7% of fair value rated as Internal Risk Rating 2 [340]. - The number of portfolio companies in Credit Fund increased to 40 as of June 30, 2025, from 33 as of December 31, 2024 [365]. Debt and Financing - As of June 30, 2025, the total outstanding principal balance of the company's debt was $1,318.615 million, an increase from $978.439 million as of December 31, 2024, representing a growth of approximately 34.8% [343]. - The weighted average interest rate on the total debt decreased to 6.34% as of June 30, 2025, from 6.65% as of December 31, 2024 [343]. - The Credit Facility was increased by $25 million on July 10, 2025, raising total commitments to $960 million, with a maximum capacity potentially increasing to $1,402.5 million [344]. - The company completed a public offering of $85 million in 8.20% senior unsecured notes due December 1, 2028, and $300 million in 6.75% senior unsecured notes due February 18, 2030 [351][352]. - The carrying value of the 2028 Notes and 2030 Notes as of June 30, 2025, was $378.026 million, compared to $369.728 million as of December 31, 2024 [353]. - The 2015-1N Debt, resulting from the refinancing of the 2015-1R Notes, amounted to $410 million, with a total principal amount outstanding of $380 million as of June 30, 2025 [359]. - The weighted average interest rate for the 2015-1N Debt tranches was 6.19% as of June 30, 2025, down from 6.59% as of December 31, 2024 [360]. - The company retained $30 million of Class C-R Notes, which accrue interest at SOFR plus a spread of 3.75% [360]. - The company had net borrowings of $123,456 on its Credit Facilities during the six months ended June 30, 2025 [398]. Expenses - Total expenses for the quarter, including excise tax expense, were $39.0 million, up from $33.2 million in the prior quarter [325]. - Total expenses for the three months ended June 30, 2025, were $39,031, an increase of 17.4% from $33,235 for the three months ended March 31, 2025 [368]. - Total expenses increased to $39,031 for the three months ended June 30, 2025, up 24.4% from $31,391 in 2024 [1]. - Interest expense and credit facility fees rose to $21,727 for the three months ended June 30, 2025, compared to $16,616 in 2024, a 30.5% increase [1]. Risk and Accounting - The company recognized a net realized loss on investments of $357 for the three months ended June 30, 2025, compared to a loss of $21,529 for the three months ended March 31, 2025 [368]. - The company recognized a realized loss related to the restructuring of its investment in Aimbridge Acquisition Co., Inc. during the six months ended June 30, 2025 [2]. - The company regularly measures exposure to interest rate risk and assesses whether hedging transactions are necessary [409]. - There have been no material changes in critical accounting estimates since the last annual report [403].