Carlyle Secured Lending(US:CGBD)2021-05-03 16:00Investment Portfolio - The fair value of investments as of March 31, 2021, was $1,841,634, compared to $1,825,749 on December 31, 2020[296]. - The count of investments increased to 164 as of March 31, 2021, from 160 on December 31, 2020[296]. - The percentage of total investment fair value in first lien debt (excluding first lien/last out debt) was 63.2% as of March 31, 2021, down from 63.6% on December 31, 2020[296]. - Total secured debt represented 82.9% of the investment fair value as of March 31, 2021, compared to 82.6% on December 31, 2020[296]. - The portfolio included 119 portfolio companies/investment funds as of March 31, 2021, up from 117 on December 31, 2020[296]. - Floating rate debt investments accounted for 99.1% of the debt investment fair value as of March 31, 2021, consistent with the previous period[296]. - Total investments decreased from $2,247,327 million as of March 31, 2020, to $1,924,992 million as of March 31, 2021[310]. - The fair value of non-accrual investments was $60,376 million as of March 31, 2021, representing approximately 3.3% of total investments at fair value[311]. - The weighted average Internal Risk Rating of the debt investment portfolio was 2.3 as of March 31, 2021, compared to 2.4 as of December 31, 2020[307]. - The principal amount of new investments purchased was $148,927 million for the three months ended March 31, 2021, compared to $331,932 million in the same period of 2020[298]. - The average amount of new funded investments increased from $10,277 million in 2020 to $12,583 million in 2021[298]. - The percentage of new funded debt investments at floating interest rates increased to 100% in 2021 from 90% in 2020[298]. Financial Performance - Investment income for the three months ended March 31, 2021, was $40,848 million, down from $50,545 million in the same period of 2020, primarily due to lower average loan balances and decreased LIBOR[310]. - Total investment income for the three month period ended March 31, 2021 was $40,848, down 19% from $50,545 in 2020, while net investment income decreased to $20,679 from $23,972, a decline of 14%[314]. - For the three month period ended March 31, 2021, the Company earned $1,470 in other income, a decrease of 37% from $2,344 in the same period of 2020, primarily due to lower prepayment and underwriting fees[312]. - Dividend and interest income from Investment Funds increased to $7,528 for the three month period ended March 31, 2021, up 15% from $6,549 in 2020, driven by the formation of Credit Fund II and higher dividends from Credit Fund[313]. - Total expenses for the three month period ended March 31, 2021 were $20,169, a decrease of 24% from $26,573 in 2020, primarily due to lower interest expenses[316]. - Interest expense for the three month period ended March 31, 2021 was $6,975, down 43% from $12,179 in 2020, attributed to lower LIBOR and average principal balances[316]. - The Company reported net realized gains of $1,673 for the three month period ended March 31, 2021, compared to a net loss of $1,697 in the same period of 2020[322]. - The net change in unrealized appreciation on investments for the three month period ended March 31, 2021 was $13,859, a significant improvement compared to a depreciation of $145,563 in 2020[322]. Asset and Debt Management - As of March 31, 2021, total assets of Credit Fund were $1,058,005, a decrease of 10.6% from $1,183,730 as of December 31, 2020[330]. - Secured borrowings for Credit Fund decreased to $446,301 as of March 31, 2021, down 13.2% from $514,261 at the end of 2020[330]. - The fair value of the Company's ownership interest in subordinated loans and members' equity was $202,695 as of March 31, 2021, slightly down from $205,891 as of December 31, 2020[330]. - The company maintained compliance with all covenants and requirements of its credit facility agreements as of March 31, 2021[347]. - The total outstanding consolidated indebtedness was $948,597, down from $987,149 as of December 31, 2020, representing a decrease of approximately 3.9%[406]. - The annualized interest cost as of March 31, 2021, was 2.83%, a slight decrease from 2.89% as of December 31, 2020[406]. - Total unfunded commitments as of March 31, 2021, were $149,152, slightly down from $149,508 as of December 31, 2020[394]. - The company has a first lien security interest in substantially all of its portfolio investments under the Credit Facility[379]. Investment Strategy - The company aims to generate current income and capital appreciation primarily through debt investments in U.S. middle market companies[283]. - The investment strategy focuses on lending to U.S. middle market companies with approximately $25 million to $100 million of EBITDA[283]. - The company has made strategic investments in various sectors, including healthcare, automotive, and media, diversifying its portfolio[338]. - The geographical composition of investments as of December 31, 2020, was 97.2% in the United States and 2.8% in Canada[344]. - The company has a maturity date for several loans extending to 2026, indicating long-term financing strategies[338]. Interest Rate Sensitivity - The company assesses interest rate risk by comparing interest rate sensitive assets to liabilities and may engage in hedging transactions as necessary[439]. - As of March 31, 2021, a 300 basis point increase in interest rates would result in net investment income of $12,716,000[440]. - A 200 basis point increase would yield net investment income of $5,027,000[440]. - A 100 basis point increase would lead to a net investment income loss of $2,652,000[440]. - A 100 basis point decrease would generate net investment income of $1,208,000[440]. - Interest income at a 300 basis point increase is projected to be $34,724,000[440]. - Interest expense at a 300 basis point increase is estimated at $22,008,000[440]. - Interest income at a 200 basis point increase is $19,699,000[440]. - Interest expense at a 200 basis point increase is $14,672,000[440]. - Interest income at a 100 basis point increase is $4,684,000[440]. - Interest expense at a 100 basis point increase is $7,336,000[440].