Carlyle Secured Lending(US:CGBD)2021-11-01 16:00Financial Performance - Total net assets reached $944,394,000 as of September 30, 2021, up from $901,363,000 as of December 31, 2020, reflecting a growth of 4.78%[6]. - Total distributable earnings improved to a loss of $165,465,000 as of September 30, 2021, compared to a loss of $228,993,000 as of December 31, 2020, indicating a reduction in losses[6]. - Basic earnings per common share for the three months ended September 30, 2021, were $0.87, compared to $0.58 in the same period last year[8]. - The net increase in net assets resulting from operations for the nine months ended September 30, 2021, was $126,392, a significant improvement from a decrease of $31,334 in the same period last year[10]. - Net investment income before taxes for the nine months ended September 30, 2021, was $64,402, compared to $66,898 for the same period in 2020[10]. Assets and Liabilities - Total assets increased to $2,044,170,000 as of September 30, 2021, up from $1,922,613,000 as of December 31, 2020, representing a growth of 6.34%[6]. - Total liabilities rose to $1,099,776,000 as of September 30, 2021, compared to $1,021,250,000 as of December 31, 2020, indicating an increase of 7.68%[6]. - Cash and cash equivalents decreased to $46,164,000 as of September 30, 2021, down from $68,419,000 as of December 31, 2020, a decline of 32.54%[6]. - Secured borrowings increased to $425,545,000 as of September 30, 2021, up from $347,949,000 as of December 31, 2020, an increase of 22.31%[6]. Investment Portfolio - Total investments at fair value amounted to $1,948,206,000 as of September 30, 2021, compared to $1,825,749,000 as of December 31, 2020, marking an increase of 6.71%[6]. - TCG BDC, Inc. has a total investment amount of $5,784,000 in Advanced Web Company Technologies Holding, representing 0.64% of net assets[15]. - The company holds $44,444,000 in Appriss Health, LLC, which accounts for 4.64% of net assets[15]. - The investment in Aurora Lux FinCo S.Á.R.L. amounts to $32,571,000, which is 3.13% of net assets[15]. - The company has a total of $10,223,000 invested in Captive Resources Midco, LLC, representing 1.08% of net assets[15]. Investment Income and Expenses - Total investment income for the three months ended September 30, 2021, was $43,762, an increase from $42,784 in the same period last year[8]. - Total expenses for the three months ended September 30, 2021, were $21,513, slightly up from $21,163 in the previous year[8]. - The company reported a dividend interest income of $22,539,000 from controlled/affiliated investments as of September 30, 2021[30]. Cash Flow and Dividends - Cash provided by operating activities for the nine months ended September 30, 2021, was $(18,539), a decrease from $145,247 in the previous year[13]. - Preferred stock dividends declared during the nine months ended September 30, 2021, totaled $62,864, slightly down from $63,912 in the same period last year[13]. - The company declared and paid a dividend on the Preferred Stock of $875 for the three-month period ended September 30, 2021, compared to $856 in the same period of 2020, indicating a 2.2% increase[171]. Market Presence and Strategy - TCG BDC, Inc. has a diverse portfolio with investments in high-tech industries, healthcare, aerospace, and more, indicating a broad market presence[19]. - The company continues to focus on expanding its investment in high-growth sectors, particularly in technology and telecommunications[44]. - The company’s investments include a mix of controlled and non-controlled entities, enhancing its investment strategy and risk management[19]. Valuation and Fair Value - The fair value of the Company's investments may fluctuate significantly due to inherent uncertainties in valuation, especially for illiquid investments[116]. - The Company engaged a third-party valuation firm to review non-traded investments at least once on a rolling twelve-month basis, ensuring independent assessment of fair value[113]. - The total fair value of Level 1 investments was $0, while Level 2 investments were also $0, indicating reliance on Level 3 inputs for valuation[125]. Debt and Borrowings - TCG BDC, Inc. reported a total first lien debt of $1,269,406,000, representing 131.13% of net assets[21]. - The total principal amount for the first lien debt is $1,081,365,000[185]. - The Credit Fund Sub Facility allows secured borrowings up to $640 million, with a maturity date of May 22, 2024[200]. Regulatory Compliance - TCG BDC, Inc. is structured as a business development company (BDC) and must comply with regulatory requirements, including maintaining at least 70% of its total assets in qualifying assets[80]. - The company intends to distribute at least 90% of its investment company taxable income (ICTI) to stockholders to maintain its status as a RIC[99].