Carlyle Secured Lending(US:CGBD)2022-05-02 16:00Financial Performance - Net investment income for the three months ended March 31, 2022, was $25,519, an increase of 18.03% compared to $20,679 for the same period in 2021 [10]. - Total investment income for the three months ended March 31, 2022, was $47,509, up from $40,848 in the prior year, indicating a growth of approximately 16.3% [8]. - Net increase in net assets resulting from operations for the three months ended March 31, 2022, was $30,683, compared to $35,904 for the same period in 2021, showing a decrease of about 14.5% [10]. - Basic earnings per common share for the three months ended March 31, 2022, was $0.56, down from $0.64 in the same period of 2021, a decline of approximately 12.5% [8]. - Total expenses for the three months ended March 31, 2022, were $21,637, an increase from $20,045 in the same period of 2021, indicating a rise of approximately 7.93% [8]. - Total cash, cash equivalents, and restricted cash at the end of the period was $69,512 thousand, up from $35,493 thousand a year earlier, indicating a 96% increase [13]. - The company declared dividends totaling $21,939 for the three months ended March 31, 2022, compared to $21,177 in the same period of 2021, representing an increase of approximately 3.6% [10]. Assets and Liabilities - Total assets as of March 31, 2022, were $1,985,958, a decrease from $2,031,350 as of December 31, 2021, representing a decline of approximately 2.24% [6]. - Total liabilities decreased to $1,035,418 as of March 31, 2022, from $1,082,546 as of December 31, 2021, reflecting a reduction of about 4.36% [6]. - Total net assets as of March 31, 2022, were $950,540, slightly up from $948,804 as of December 31, 2021, reflecting a marginal increase of about 0.18% [6]. - Cash and cash equivalents decreased to $69,512 as of March 31, 2022, from $93,074 as of December 31, 2021, a decline of about 25.3% [6]. Investment Portfolio - The fair value of investments as of March 31, 2022, included significant holdings in various sectors, with the largest being in Containers, Packaging & Glass, representing 0.99% of net assets [15]. - The company’s principal amount of investments included significant contributions from various sectors, with healthcare and pharmaceuticals being a notable area of investment [15]. - The company has a diverse portfolio across various industries, including software, automotive, and aerospace, indicating a strategic focus on high-growth sectors [21]. - The company’s investments include various industries such as capital equipment, chemicals, and energy, indicating a diversified portfolio [27]. - The company’s investment strategy focuses on non-controlled and affiliated investments, with a significant portion in investment funds [27]. Debt and Financing - Borrowings on SPV Credit Facility and Credit Facility amounted to $58,500 thousand, up from $40,286 thousand in the previous year [13]. - The company has entered into a senior secured revolving credit facility, enhancing its financial flexibility [27]. - The company reported First Lien Debt valued at $1,224,117 and Second Lien Debt at $304,202 as of March 31, 2022 [118]. - The total principal amount of unfunded delayed draw commitments for various companies, including Direct Travel, Inc., is $1,657 thousand [31]. - The company has multiple investments in revolvers with unused fees typically at 0.50% [59]. Valuation and Fair Value - The fair value of the Company's investments as of March 31, 2022, totaled $1,796,303, with Level 3 assets amounting to $1,796,303 [118]. - The fair value measurement process involves a valuation committee review and recommendations to the Board of Directors [106]. - The total balance of Level 3 investments at the end of the period is $1,796,303, a decrease from $1,835,094 at the beginning of the period [128]. - The significant unobservable inputs for First Lien Debt include a discount rate range of 4.07% to 15.63% with a weighted average of 8.23% [128]. - The company utilizes various valuation techniques, including discounted cash flow analyses and comparable market valuations, for illiquid investments [106]. Income and Expenses - The Company incurred $353 in excise tax expense for the three-month period ended March 31, 2022, compared to $124 for the same period in 2021, reflecting an increase of 184.7% [98]. - For the three-month period ended March 31, 2022, total investment income was $14,679, compared to $16,105 for the same period in 2021, reflecting a decrease of approximately 8.8% [167]. - Net investment income for the three-month period ended March 31, 2022, was $10,136, slightly down from $10,222 in the prior year, indicating a decrease of about 0.8% [167]. - The Company reported a net realized gain of $3,215,000 from investments in non-controlled/affiliated entities [55]. Commitments and Future Plans - The company must distribute at least 90% of its investment company taxable income to qualify as a RIC, avoiding corporate level taxes on distributed income [79]. - The company has unfunded commitments for delayed draw and revolving senior secured loans totaling $1,602 thousand for Advanced Web Technologies Holding Company [31]. - The company is actively managing a diverse portfolio with significant investments in various sectors, including technology and healthcare [61].