Carlyle Secured Lending(US:CGBD)2025-11-04 21:02Financial Performance - Net investment income for Q3 2025 was $26.8 million, or $0.37 per common share, reflecting an increase from the prior year due to higher average outstanding investment balance[332]. - Adjusted net investment income per common share, accounting for the CSL III Merger and Credit Fund II Purchase, was $0.38[332]. - Basic earnings per common share for Q3 2025 were $0.33, compared to $0.20 for the previous quarter[334]. - Total investment income for Q3 2025 was $66.5 million, slightly down from $67.3 million in the previous quarter[338]. - Adjusted Net Investment Income for the three months ended September 30, 2025, was $27,350,000, compared to $28,136,000 for the previous quarter[342]. - Adjusted Net Income for the same period was $23,903,000, significantly up from $14,630,000 in the prior quarter[342]. - The Company recognized a net investment income of $26.8 million for the three months ended September 30, 2025, down from $28.3 million in the previous quarter[387]. - The Company reported a net realized loss on investments of $16.4 million for the three months ended September 30, 2025[395]. - The net realized loss on investments for the three months ended September 30, 2025, was $(16,427), compared to $(11,477) in 2024, indicating a decline in performance[398]. - The company recognized a net realized loss related to the restructuring of investments during the nine months ended September 30, 2025, impacting overall profitability[409]. Investment Portfolio - Total fair value of investments as of September 30, 2025, was $2.4 billion, with 221 investments across 158 portfolio companies[332]. - Non-accrual investments represented 1.6% of the portfolio based on cost and 1.0% based on fair value as of September 30, 2025[332]. - As of September 30, 2025, 99.0% of investments were performing, with a fair value of $2,399,122,000[354]. - The total fair value of investments was $2,422,630,000, with 215 performing investments and 6 non-accrual investments[354]. - The number of portfolio companies in the Credit Fund increased to 45 as of September 30, 2025, from 33 as of December 31, 2024[384]. - The size of the Company's portfolio increased to $2,442.2 million as of September 30, 2025, from $2,366.4 million as of June 30, 2025[388]. - The portfolio size increased to $2,442,191 at amortized cost as of September 30, 2025, up from $1,757,621 as of September 30, 2024, indicating a growth of approximately 39%[398]. Liquidity and Capital Structure - Total liquidity as of September 30, 2025, was $594.6 million, including cash and undrawn debt capacity[332]. - The NAV per common share decreased to $16.36 as of September 30, 2025, down from $16.43 as of June 30, 2025[332]. - Dividends declared on common shares for Q3 2025 were $29.2 million, or $0.40 per share[332]. - The statutory debt to equity ratio improved to 1.10x as of September 30, 2025, down from 1.20x as of December 31, 2024[411]. - The company had $594,594 in total liquidity as of September 30, 2025, compared to $565,696 as of December 31, 2024, showing an increase of 5%[413]. - The total outstanding principal balance of secured and unsecured debt is $1,315,719,000, up from $978,439,000 as of December 31, 2024, representing a 34.4% increase[357]. - Total senior securities increased to $1,315,719 as of September 30, 2025, compared to $1,028,439 as of December 31, 2024, with asset coverage ratios of 190.6% and 183.2%, respectively[421]. Investment Activity - The company made new investments totaling $260,763,000 during the three months ended September 30, 2025[348]. - The number of new investment commitments was 21, with an average commitment amount of $12,702,000[348]. - The company completed a public offering of $300,000,000 in aggregate principal of 5.75% senior unsecured notes due February 15, 2031, on October 7, 2025[368]. - The company plans to redeem all outstanding 2028 Notes on December 1, 2025, at a redemption price of 100% of the principal amount plus accrued interest[369]. - The company completed a refinancing of the 2015-1R Notes, resulting in the issuance of $410.0 million in collateralized loan obligations[377]. Interest Rate and Risk Management - The weighted average yield on total debt and income-producing investments was 10.6% at amortized cost as of September 30, 2025[344]. - The weighted average interest rate for total debt decreased to 6.49% as of September 30, 2025, compared to 6.65% as of December 31, 2024[357]. - Interest rate sensitivity analysis indicates that a 300 basis point increase in interest rates could result in a net investment income increase of $25,733 as of September 30, 2025[430]. - Approximately 99.4% of the company's debt investments bear interest at a floating rate, primarily linked to SOFR rates[425]. - The company regularly assesses interest rate risk and manages exposure through ongoing comparisons of interest rate sensitive assets and liabilities[428]. Expenses - Total expenses for Q3 2025 were $39.7 million, compared to $39.0 million in the previous quarter[338]. - The total expenses for the three months ended September 30, 2025, were $39.7 million, an increase of $0.6 million from the previous quarter[387]. - Total expenses increased to $39,670 for the three months ended September 30, 2025, from $31,081 in 2024, which is a rise of 27%[397]. Commitments and Cash Flows - As of September 30, 2025, total unfunded commitments amounted to $359,057, an increase from $179,247 as of December 31, 2024[416]. - Cash flows used in operating activities for the nine months ended September 30, 2025, were $(51,310), while financing activities provided $47,003, resulting in a net decrease in cash of $(4,307)[417]. - The company had net borrowings of $122,122 on its Credit Facilities during the nine months ended September 30, 2025[417]. - The company paid $74,877 in cash dividends during the nine months ended September 30, 2025[417].