Carlyle Secured Lending(US:CGBD)2022-05-04 13:53Financial Data and Key Metrics Changes - Total net investment income was $0.47 per common share, including $0.07 of non-recurring income from the exit of SolAero [7] - Declared a total dividend of $0.40 per share, with a base dividend of $0.32 and a supplemental dividend of $0.08 [8] - Net asset value (NAV) per share increased to $17.11, up 1.2% from Q4 2021, marking the eighth consecutive quarter of positive progression [9] Business Line Data and Key Metrics Changes - Funded $114 million in new investments, primarily in first-lien positions, while repayments and strategic sales totaled $159 million [11] - Total investment income for Q1 was $48 million, up from $44 million in the prior quarter, driven by the exit of SolAero [28] - Total expenses increased from $22 million to $23 million, leading to net investment income of $25 million [29] Market Data and Key Metrics Changes - M&A leverage loan and high yield volumes decreased by 17%, 9%, and 38% respectively in Q1 2022 compared to the previous quarter [23] - U.S. consumer spending remains resilient, supported by strong balance sheets and labor market conditions, although future sustainability is uncertain [20] Company Strategy and Development Direction - The company has rebranded from TCG BDC to Carlyle Secured Lending to better align with its investment strategy [13] - Focus on leveraging Carlyle's integrated investment platform to enhance origination, underwriting, and portfolio management [13] - Emphasis on being highly credit selective and defensively oriented in a complex investment environment [11][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complexity of the current investment environment, exacerbated by geopolitical events [17] - Portfolio performance remains strong, with continued recovery from watchlist names outweighing negative impacts from inflation and market yields [22] - Future earnings may be slightly impacted by LIBOR rates, but a positive earnings driver is expected in the latter half of 2022 [31] Other Important Information - The company has repurchased $7 million of common stock, contributing to a $0.03 accretion to NAV [10] - Total non-accruals decreased to 3.7% based on fair value, driven by the exit of SolAero [35] Q&A Session Summary - No questions were posed during the Q&A session, indicating a lack of immediate inquiries from analysts or investors [37]