Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period                      to                     
Commission File No. 814-00995
Carlyle Secured Lending, Inc.
(Exact name of Registrant as specified in its charter)
Maryland 80-0789789
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
One Vanderbilt Avenue, Suite 3400, New York, NY 10017
(212) 813-4900
(Address of principal executive office) (Zip Code)(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, $0.01 par valueCGBDThe Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☐    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer   Accelerated filer o
Non-accelerated filer 
o
  Smaller reporting company o
Emerging growth company 
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  
The number of shares of the registrant’s common stock, $0.01 par value per share, outstanding at May 2, 2022 was 52,486,356.



Carlyle Secured Lending, Inc.
INDEX
 
Part I.Financial Information
Item 1.Financial Statements
Item 2.
Item 3.
Item 4.
Part II.Other Information
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
2




CARLYLE SECURED LENDING, INC.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(dollar amounts in thousands, except per share data)
March 31, 2022December 31, 2021
ASSETS(unaudited) 
Investments, at fair value
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,610,824 and $1,631,067, respectively)$1,576,247 $1,607,731 
Investments—non-controlled/affiliated, at fair value (amortized cost of $38,332 and $38,462, respectively)30,771 30,286 
Investments—controlled/affiliated, at fair value (amortized cost of $271,097 and $288,024, respectively)266,165 275,035 
Total investments, at fair value (amortized cost of $1,920,253 and $1,957,553, respectively)1,873,183 1,913,052 
Cash, cash equivalents and restricted cash69,512 93,074 
Receivable for investment sold/repaid13,060 530 
Deferred financing costs2,882 3,066 
Interest receivable from non-controlled/non-affiliated investments15,284 11,011 
Interest receivable from non-controlled/affiliated investments611 611 
Interest and dividend receivable from controlled/affiliated investments9,212 8,522 
Prepaid expenses and other assets2,214 1,484 
Total assets$1,985,958 $2,031,350 
LIABILITIES
Secured borrowings (Note 7)$359,679 $407,655 
2015-1R Notes payable, net of unamortized debt issuance costs of $2,356 and $2,417, respectively (Note 8)446,844 446,783 
Senior Notes, net of unamortized debt issuance costs of $382 and $416, respectively (Note 8)189,618 189,584 
Payable for investments purchased328 323 
Interest and credit facility fees payable (Notes 7 and 8)2,727 2,467 
Dividend payable (Note 10)21,035 20,705 
Base management and incentive fees payable (Note 4)12,304 11,819 
Administrative service fees payable (Note 4)825 482 
Other accrued expenses and liabilities2,058 2,728 
Total liabilities1,035,418 1,082,546 
Commitments and contingencies (Notes 9 and 12)
EQUITY
NET ASSETS
Cumulative convertible preferred stock, $0.01 par value; 2,000,000 and 2,000,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively50,000 50,000 
Common stock, $0.01 par value; 198,000,000 shares authorized; 52,647,158 and 53,142,454 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively527 532 
Paid-in capital in excess of par value1,045,424 1,052,427 
Offering costs(1,633)(1,633)
Total distributable earnings (loss)(143,778)(152,522)
Total net assets$950,540 $948,804 
NET ASSETS PER COMMON SHARE$17.11 $16.91 
The accompanying notes are an integral part of these consolidated financial statements.
3


CARLYLE SECURED LENDING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands, except per share data)
(unaudited)
 For the three month periods ended
 March 31, 2022March 31, 2021
Investment income:
From non-controlled/non-affiliated investments:
Interest income
$33,828 $31,756 
Other income
1,962 1,467 
Total investment income from non-controlled/non-affiliated investments
35,790 33,223 
From non-controlled/affiliated investments:
Interest income
48 38 
Other income
Total investment income from non-controlled/affiliated investments
50 41 
From controlled/affiliated investments:
Interest income
3,873 56 
Dividend income7,524 7,528 
Other income272 — 
Total investment income from controlled/affiliated investments11,669 7,584 
Total investment income47,509 40,848 
Expenses:
Base management fees (Note 4)7,050 6,800 
Incentive fees (Note 4)5,228 4,257 
Professional fees
783 691 
Administrative service fees (Note 4)406 282 
Interest expense (Notes 7 and 8)7,099 6,975 
Credit facility fees (Note 7)517 519 
Directors’ fees and expenses
160 116 
Other general and administrative
394 405 
Total expenses21,637 20,045 
Net investment income (loss) before taxes25,872 20,803 
Excise tax expense
353 124 
Net investment income (loss)
25,519 20,679 
Net realized gain (loss) and net change in unrealized appreciation (depreciation):
Net realized gain (loss) on investments:
Non-controlled/non-affiliated investments
4,575 1,672 
Non-controlled/affiliated investments— 
Controlled/affiliated investments
1,264 — 
Currency gains (losses) on non-investment assets and liabilities(368)(82)
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/non-affiliated investments
(11,243)17,916 
Non-controlled/affiliated investments
614 646 
Controlled/affiliated investments
8,057 (4,703)
Net change in unrealized currency gains (losses) on non-investment assets and liabilities
2,265 (225)
Net realized and unrealized gain (loss) on investments and non-investment assets and liabilities
5,164 15,225 
Net increase (decrease) in net assets resulting from operations30,683 35,904 
Preferred stock dividend875 875 
Net increase (decrease) in net assets resulting from operations attributable to Common Stockholders$29,808 $35,029 
Basic and diluted earnings per common share (Note 10)
Basic$0.56 $0.64 
Diluted$0.53 $0.60 
Weighted-average shares of common stock outstanding (Note 10)
Basic52,892,054 55,039,010 
Diluted58,194,422 60,306,312 
The accompanying notes are an integral part of these consolidated financial statements.
4


CARLYLE SECURED LENDING, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(dollar amounts in thousands)
(unaudited)
For the three month periods ended
March 31, 2022March 31, 2021
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss)$25,519 $20,679 
Net realized gain (loss)5,471 1,591 
Net change in unrealized appreciation (depreciation) on investments(2,572)13,859 
Net change in unrealized currency gains (losses) on non-investment assets and liabilities2,265 (225)
Net increase (decrease) in net assets resulting from operations30,683 35,904 
Capital transactions:
Repurchase of common stock(7,008)(5,570)
Dividends declared on preferred and common stock (Note 10)(21,939)(21,177)
Net increase (decrease) in net assets resulting from capital share transactions(28,947)(26,747)
Net increase (decrease) in net assets1,736 9,157 
Net Assets at beginning of period948,804 901,363 
Net Assets at end of period$950,540 $910,520 

The accompanying notes are an integral part of these consolidated financial statements.
5


CARLYLE SECURED LENDING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
(unaudited)
 For the three month periods ended
 March 31, 2022March 31, 2021
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations$30,683 $35,904 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Amortization of deferred financing costs279 253 
Net accretion of discount on investments(2,338)(2,026)
Paid-in-kind interest(4,217)(2,025)
Net realized (gain) loss on investments(5,839)(1,673)
Net realized currency (gain) loss on non-investment assets and liabilities368 82 
Net change in unrealized (appreciation) depreciation on investments2,572 (13,859)
Net change in unrealized currency (gains) losses on non-investment assets and liabilities(2,265)225 
Cost of investments purchased and change in payable for investments purchased(110,079)(134,935)
Proceeds from sales and repayments of investments and change in receivable for investments sold/repaid146,912 153,722 
Changes in operating assets:
Interest receivable(4,273)(726)
Dividend receivable(690)(1,044)
Prepaid expenses and other assets(730)
Changes in operating liabilities:
Interest and credit facility fees payable260 (12)
Base management and incentive fees payable485 (502)
Administrative service fees payable343 117 
Other accrued expenses and liabilities(670)(1,235)
Net cash provided by (used in) operating activities50,801 32,269 
Cash flows from financing activities:
Repurchase of common stock(7,008)(5,570)
Borrowings on SPV Credit Facility and Credit Facility58,500 40,286 
Repayments of SPV Credit Facility and Credit Facility(104,246)(79,000)
Debt issuance costs paid— (122)
Dividends paid in cash(21,609)(20,789)
Net cash provided by (used in) financing activities(74,363)(65,195)
Net increase (decrease) in cash, cash equivalents and restricted cash(23,562)(32,926)
Cash, cash equivalents, and restricted cash, beginning of period93,074 68,419 
Cash, cash equivalents, and restricted cash, end of period$69,512 $35,493 
Supplemental disclosures:
Interest paid during the period$7,106 $6,915 
Taxes, including excise tax, paid during the period$794 $626 
Dividends declared on preferred stock and common stock during the period$21,939 $21,177 
The accompanying notes are an integral part of these consolidated financial statements.
6

CARLYLE SECURED LENDING INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—non-controlled/non-affiliated (1)
FootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition DateMaturity DatePar/ Principal Amount **
Amortized Cost (4)
Fair Value (5)
% of Net Assets
First Lien Debt (63.8% of fair value)
Advanced Web Technologies Holding Company^*(2)(3)(14)Containers, Packaging & GlassL + 5.75%6.75%12/17/202012/17/2026$9,383 $9,184 $9,428 0.99 %
Airnov, Inc.^*(2)(3)(14)Containers, Packaging & GlassL + 5.00%6.00%12/20/201912/19/20252,047 2,019 2,045 0.21 
Allied Universal Holdco LLC^(2)(3)Business ServicesL + 4.25%4.75%2/17/20217/10/2026496 498 488 0.05 
American Physician Partners, LLC^*(2)(3)(14)Healthcare & PharmaceuticalsL + 8.75%, 1.50% PIK10.75%1/7/20194/8/202228,012 28,013 28,013 2.95 
Analogic Corporation^*(2)(3)(14)Capital EquipmentL + 5.25%6.25%6/22/20186/22/20242,452 2,432 2,403 0.25 
Applied Technical Services, LLC^(2)(3)(14)Business ServicesL + 5.75%6.75%12/29/202012/29/2026529 519 529 0.06 
Appriss Health, LLC^(2)(3)(14)Healthcare & PharmaceuticalsL + 7.25%8.25%5/6/20215/6/202743,247 42,437 42,448 4.47 
Apptio, Inc.^(2)(3)(14)SoftwareL + 7.25%8.25%1/10/20191/10/20256,131 6,051 6,131 0.64 
Ascend Buyer, LLC^*(2)(3)(14)Containers, Packaging & GlassL + 5.75%6.50%9/30/20219/30/202812,806 12,546 12,506 1.32 
Associations, Inc.^(2)(3)(14)Construction & BuildingL + 4.00%, 2.50% PIK7.50%7/2/20217/2/202712,612 12,499 12,284 1.29 
Aurora Lux FinCo S.Á.R.L. (Luxembourg)^*(2)(3)(7)SoftwareL + 6.00%7.00%12/24/201912/24/202632,406 31,814 29,408 3.09 
Barnes & Noble, Inc.^(2)(3)(11)RetailL + 6.50%9.31%8/7/201912/20/202628,572 27,563 28,214 2.97 
BlueCat Networks, Inc. (Canada)*(2)(3)(7)High Tech IndustriesL + 6.25%7.25%10/30/202010/30/202611,439 11,248 11,526 1.21 
BMS Holdings III Corp.^(2)(3)(14)Construction & BuildingL + 5.50%6.50%9/30/20199/30/2026— (171)(140)(0.01)
Bubbles Bidco S.P.A. (Italy)^(2)(3)(7)(14)Consumer Goods: Non-DurableL + 9.25% (100% PIK)9.25%10/20/202110/20/20284,700 5,307 4,996 0.53 
Bubbles Bidco S.P.A. (Italy)^(2)(3)(7)(14)Consumer Goods: Non-DurableL + 6.25%6.25%10/20/202110/20/2028— — (30)— 
Captive Resources Midco, LLC^*(2)(3)(14)Banking, Finance, Insurance & Real EstateL + 5.50%6.25%6/30/20155/31/202710,223 10,111 10,102 1.06 
Chartis Holding, LLC^*(2)(3)(14)Business ServicesL + 5.50%6.60%5/1/20195/1/2025692 682 689 0.07 
Chemical Computing Group ULC (Canada)^*(2)(3)(7)(14)SoftwareL + 4.50%5.50%8/30/20188/30/2024465 464 460 0.05 
Chudy Group, LLC^(2)(3)(14)Healthcare & PharmaceuticalsL + 5.75%6.75%6/30/20216/30/2027823 810 828 0.09 
CircusTrix Holdings, LLC^*(2)(3)Hotel, Gaming & LeisureL + 5.50%, 2.50% PIK9.00%2/2/20181/16/202410,570 10,550 9,719 1.02 
CircusTrix Holdings, LLC^(2)(3)Hotel, Gaming & LeisureL + 5.50%, 2.50% PIK9.00%1/8/20217/16/2023700 643 701 0.07 
Cobblestone Intermediate Holdco LLC^(2)(3)Consumer ServicesL + 5.50%6.50%1/29/20201/29/2026721 716 718 0.07 
Comar Holding Company, LLC^*(2)(3)(14)Containers, Packaging & GlassL + 5.75%6.75%6/18/20186/18/202426,375 26,112 25,510 2.68 
Cority Software Inc. (Canada)^*(2)(3)(7)(14)SoftwareL + 5.00%6.00%7/2/20197/2/202610,489 10,309 10,447 1.10 
Cority Software Inc. (Canada)^(2)(3)(7)SoftwareL + 7.00%8.00%9/3/20207/2/20261,874 1,830 1,890 0.20 
DCA Investment Holding LLC^*(2)(3)(14)Healthcare & PharmaceuticalsSOFR + 6.00%6.75%3/11/20214/3/202813,328 13,153 13,136 1.38 
7

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—non-controlled/non-affiliated (1)
FootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition DateMaturity DatePar/ Principal Amount **
Amortized Cost (4)
Fair Value (5)
% of Net Assets
Derm Growth Partners III, LLC ^(2)(3)(8)Healthcare & PharmaceuticalsL + 6.25%7.25%5/31/20165/31/2022$55,807 $50,994 $41,077 4.32 %
DermaRite Industries, LLC^*(2)(3)Healthcare & PharmaceuticalsL + 7.00% (100% PIK)8.00%3/3/20176/30/202320,357 20,357 16,894 1.78 
Diligent Corporation^(2)(3)(14)TelecommunicationsL + 6.25%7.25%8/4/20208/4/2025650 636 647 0.07 
DTI Holdco, Inc.^(2)(3)High Tech IndustriesL + 4.75%5.75%12/18/20189/30/20231,928 1,885 1,896 0.20 
Dwyer Instruments, Inc^*(2)(3)(14)Capital EquipmentL + 5.50%6.50%7/21/20217/21/20272,271 2,207 2,260 0.24 
Ellkay, LLC^(2)(3)(14)Healthcare & PharmaceuticalsL + 5.75%6.75%9/14/20219/14/202714,214 13,922 13,883 1.46 
Emergency Communications Network, LLC^*(2)(3)TelecommunicationsL + 2.625%, 5.125% PIK8.75%6/1/20176/1/202325,537 25,487 22,144 2.33 
EPS Nass Parent, Inc.^(2)(3)(14)Utilities: ElectricL + 5.75%6.75%4/19/20214/19/2028890 873 878 0.09 
Ethos Veterinary Health LLC^(2)(3)Consumer ServicesL + 4.75%5.21%5/17/20195/15/20262,579 2,563 2,579 0.27 
EvolveIP, LLC^*(2)(3)(14)(15)TelecommunicationsSOFR + 5.50%6.50%11/26/20196/7/20255,455 5,447 5,441 0.57 
Flagship Intermediate Holdco, LLC^*(2)(3)(14)(15)Consumer ServicesSOFR + 5.50%6.50%2/18/20222/18/202812,155 11,445 11,432 1.20 
Frontline Technologies Holdings, LLC^*(2)(3)SoftwareL + 5.25%6.25%9/18/20179/18/20233,060 3,050 3,057 0.32 
Greenhouse Software, Inc.^(2)(3)(14)SoftwareL + 6.50%7.50%3/1/20213/1/202715,196 14,870 14,740 1.55 
Hadrian Acquisition Limited (United Kingdom)^(2)(3)Banking, Finance, Insurance & Real EstateSONIA + 5.26%, 3.47% PIK9.48%2/28/20222/28/2029£14,259 18,559 17,790 1.87 
Hadrian Acquisition Limited (United Kingdom)^(2)(3)(14)Banking, Finance, Insurance & Real EstateSONIA + 5.00%, 2.75% PIK8.50%2/28/20222/28/2029£413 330 407 0.04 
Harbour Benefit Holdings, Inc.^*(2)(3)(14)Business ServicesL + 5.25%6.25%12/13/201712/13/20248,358 8,293 8,342 0.88 
Heartland Home Services, Inc^*(2)(3)(14)Consumer ServicesL + 6.00%7.00%12/15/202012/15/202613,904 13,549 13,624 1.43 
Hercules Borrower LLC^*(2)(3)(14)Environmental IndustriesL + 6.50%7.50%12/14/202012/14/202618,636 18,177 18,806 1.98 
Higginbotham Insurance Agency, Inc.^(2)(3)Banking, Finance, Insurance & Real EstateL + 5.50%6.25%11/25/202011/25/20264,966 4,906 4,925 0.52 
Hoosier Intermediate, LLC^*(2)(3)(14)Healthcare & PharmaceuticalsL + 5.50%6.50%11/15/202111/15/202816,479 16,119 16,187 1.70 
iCIMS, Inc.^(2)(3)SoftwareL + 6.50%7.50%9/12/20189/12/20241,671 1,653 1,671 0.18 
Individual FoodService Holdings, LLC^*(2)(3)(14)WholesaleL + 6.25%7.56%2/21/202011/22/20259,704 9,525 9,679 1.02 
Infront Luxembourg Finance S.À R.L. (Luxembourg)^(2)(3)(7)Hotel, Gaming & LeisureL + 9.00%9.00%5/28/20215/28/20278,250 9,785 8,876 0.93 
Integrity Marketing Acquisition, LLC*(2)(3)Banking, Finance, Insurance & Real EstateL + 5.75%6.75%1/15/20208/27/20254,908 4,860 4,800 0.50 
Integrity Marketing Acquisition, LLC^(2)(3)(14)Banking, Finance, Insurance & Real EstateL + 5.50%6.25%1/15/20208/27/2025— (69)(127)(0.01)
Jeg's Automotive, LLC^*(2)(3)(14)AutomotiveL + 5.75%6.75%12/22/202112/22/202719,146 18,666 18,783 1.98 
8

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—non-controlled/non-affiliated (1)
FootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition DateMaturity DatePar/ Principal Amount **
Amortized Cost (4)
Fair Value (5)
% of Net Assets
K2 Insurance Services, LLC^*(2)(3)(14)Banking, Finance, Insurance & Real EstateL + 5.00%6.00%7/3/20197/1/2026$3,356 $3,299 $3,351 0.35 %
Kaseya, Inc.^(2)(3)(14)High Tech IndustriesL + 5.50%, 1.00% PIK7.50%5/3/20195/3/202519,123 18,882 18,942 1.99 
Lifelong Learner Holdings, LLC^(2)(3)(14)Business ServicesL + 5.75%6.75%10/18/201910/18/202626,149 25,787 24,107 2.54 
LinQuest Corporation*(2)(3)Aerospace & DefenseL + 5.75%6.50%7/28/20217/28/20289,950 9,767 9,701 1.02 
Liqui-Box Holdings, Inc.^(2)(3)(14)Containers, Packaging & GlassL + 4.50%5.50%6/3/20196/3/20241,504 1,490 1,240 0.13 
LVF Holdings, Inc.^*(2)(3)(14)Beverage, Food & TobaccoL + 6.25%7.82%6/10/20216/10/202741,524 40,689 39,359 4.14 
Material Holdings, LLC^*(2)(3)(14)Business ServicesL + 5.75%6.75%8/19/20218/19/20277,043 6,886 6,753 0.71 
Maverick Acquisition, Inc.^*(2)(3)(14)Aerospace & DefenseL + 6.00%7.00%6/1/20216/1/202735,892 35,153 34,140 3.59 
Medical Manufacturing Technologies, LLC^*(2)(3)(14)(15)Healthcare & PharmaceuticalsSOFR + 6.00%7.00%12/23/202112/23/202721,477 20,874 21,013 2.21 
MMIT Holdings, LLC^*(2)(3)(14)High Tech IndustriesL + 6.25%7.25%9/15/20219/15/202710,937 10,717 10,697 1.13 
National Technical Systems, Inc.^(2)(3)(14)Aerospace & DefenseL + 5.50%6.50%10/28/20206/12/20231,164 1,151 1,158 0.12 
NES Global Talent Finance US, LLC (United Kingdom)^(2)(3)(7)Energy: Oil & GasL + 5.50%6.50%5/9/20185/11/20239,662 9,618 9,414 0.99 
NMI AcquisitionCo, Inc.^*(2)(3)(14)High Tech IndustriesL + 5.75%6.50%9/6/20179/6/202540,229 40,004 39,672 4.17 
Performance Health Holdings, Inc.*(2)(3)Healthcare & PharmaceuticalsL + 6.00%7.00%7/12/20217/12/20276,444 6,324 6,286 0.66 
PF Atlantic Holdco 2, LLC^*(2)(3)(14)Hotel, Gaming & LeisureL + 6.00%7.00%11/12/202111/12/202727,654 26,900 27,037 2.84 
PF Growth Partners, LLC^*(2)(3)Hotel, Gaming & LeisureL + 5.00%6.00%7/1/20197/11/20258,019 7,947 7,885 0.83 
PPT Management Holdings, LLC^(2)(3)Healthcare & PharmaceuticalsL + 6.00%, 2.50% PIK9.50%12/15/201612/16/202228,454 28,424 23,576 2.48 
Product Quest Manufacturing, LLC^(2)(3)(8)Containers, Packaging & GlassL + 6.75%10.00%9/21/20173/31/2021840 840 840 0.09 
Prophix Software Inc. (Canada)^(2)(3)(7)(14)SoftwareL + 6.50%7.50%2/1/20212/1/202610,963 10,743 11,093 1.17 
PXO Holdings I Corp.^*(2)(3)(14)(15)Chemicals, Plastics & RubberSOFR + 5.50%6.25%3/8/20223/8/202814,790 14,406 14,402 1.52 
Quantic Electronics, LLC^*(2)(3)(14)Aerospace & DefenseL + 6.00%7.00%11/19/202011/19/202614,588 14,301 14,248 1.50 
Quantic Electronics, LLC^*(2)(3)(14)Aerospace & DefenseL + 6.00%7.00%3/1/20213/1/20278,860 8,647 8,604 0.91 
QW Holding Corporation^*(2)(3)Environmental IndustriesL + 5.75%6.75%8/31/20168/31/202642,559 42,361 42,151 4.43 
Redwood Services Group, LLC^*(2)(3)(14)High Tech IndustriesL + 6.00%7.00%11/13/20186/6/202430,814 30,388 30,429 3.20 
Regency Entertainment, Inc.^(2)(3)Media: Diversified & ProductionL + 6.75%7.75%5/22/202010/22/202520,000 19,716 19,716 2.07 
Riveron Acquisition Holdings, Inc.*(2)(3)Banking, Finance, Insurance & Real EstateL + 5.75%6.75%5/22/20195/22/202511,372 11,240 11,372 1.20 
RSC Acquisition, Inc.^(2)(3)(14)Banking, Finance, Insurance & Real EstateL + 5.50%6.28%11/1/201911/1/20268,407 8,274 8,042 0.85 
Sapphire Convention, Inc.^*(2)(3)(14)TelecommunicationsL + 6.25%7.25%11/20/201811/20/202529,803 29,451 25,461 2.68 
9

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—non-controlled/non-affiliated (1)
FootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition DateMaturity DatePar/ Principal Amount **
Amortized Cost (4)
Fair Value (5)
% of Net Assets
Smarsh Inc.^(2)(3)(14)SoftwareSOFR + 6.50%7.25%2/18/20222/18/2029$6,530 $6,362 $6,359 0.67 %
SPay, Inc.^*(2)(3)Hotel, Gaming & LeisureL + 2.30%, 6.95% PIK10.25%6/15/20186/17/202423,440 23,269 20,445 2.15 
Speedstar Holding, LLC^*(2)(3)(14)AutomotiveL + 7.00%8.00%1/22/20211/22/202727,157 26,640 27,164 2.86 
Tank Holding Corp.^*(2)(3)(14)(15)Capital EquipmentSOFR + 6.00%6.75%3/31/20223/31/202837,931 37,140 37,139 3.90 
TCFI Aevex LLC^*(2)(3)(14)Aerospace & DefenseL + 6.00%7.00%3/18/20203/18/202611,132 10,953 9,015 0.95 
Trafigura Trading LLC^(2)(3)(13)(14)Metals & MiningL + 8.40%9.37%7/26/20217/18/20224,174 4,213 4,250 0.45 
Turbo Buyer, Inc. ^*(2)(3)(14)AutomotiveL + 6.00%7.00%12/2/201912/2/202520,325 19,872 19,918 2.10 
Unifrutti Financing PLC (Cyprus)^(7)Beverage, Food & Tobacco7.50%, 1.00% PIK8.50%9/15/20199/15/20264,644 4,950 5,138 0.54 
Unifrutti Financing PLC (Cyprus)^(7)Beverage, Food & Tobacco11.00% PIK11.00%10/22/20209/15/2026776 881 912 0.10 
US INFRA SVCS Buyer, LLC^(2)(3)(14)Environmental IndustriesL + 6.50%7.50%4/13/20204/13/20269,382 8,949 8,436 0.89 
USALCO, LLC*(2)(3)Chemicals, Plastics & RubberL + 6.00%7.00%10/19/202110/19/2027998 979 967 0.10 
U.S. Legal Support, Inc.^*(2)(3)(14)(15)Business ServicesSOFR + 5.75%6.75%11/30/201811/30/202415,657 15,448 15,276 1.61 
Westfall Technik, Inc.^*(2)(3)Chemicals, Plastics & RubberL + 5.75%6.75%9/13/20189/13/202421,468 21,309 21,125 2.22 
Westfall Technik, Inc.^(2)(3)Chemicals, Plastics & RubberL + 6.25%7.25%7/1/20219/13/20244,945 4,857 4,888 0.51 
Wineshipping.com LLC^*(2)(3)(14)Beverage, Food & TobaccoL + 5.75%6.75%10/29/202110/29/202714,425 14,090 14,074 1.48 
Yellowstone Buyer Acquisition, LLC^(2)(3)Consumer Goods: DurableL + 5.75%6.75%9/13/20219/13/2027448 439 435 0.05 
YLG Holdings, Inc.^(2)(3)Consumer ServicesL + 5.25%6.32%9/30/202011/1/20251,976 1,927 1,976 0.21 
First Lien Debt Total$1,231,985 $1,193,346 125.54 %
Second Lien Debt (16.2% of fair value)
11852604 Canada Inc. (Canada)^(2)(3)(7)Healthcare & PharmaceuticalsL + 9.50% (100% PIK)10.50%9/30/20219/30/2028$6,767 $6,616 $6,597 0.69 %
AI Convoy S.A.R.L (United Kingdom)^(2)(3)(7)Aerospace & DefenseL + 8.25%9.25%1/17/20201/17/202824,814 24,372 25,806 2.71 
Aimbridge Acquisition Co., Inc.^(2)(3)Hotel, Gaming & LeisureL + 7.50%7.73%2/1/20192/1/20279,241 9,128 8,575 0.90 
AP Plastics Acquisition Holdings, LLC^(2)(3)Chemicals, Plastics & RubberL + 7.50%8.25%8/10/20218/10/202933,680 32,807 33,714 3.55 
AQA Acquisition Holdings, Inc.^*(2)(3)High Tech IndustriesL + 7.50%8.50%3/3/20213/3/202935,000 34,212 34,973 3.68 
Blackbird Purchaser, Inc.^(2)(3)(14)Capital EquipmentL + 7.50%8.25%12/14/20214/8/202713,791 13,441 13,109 1.38 
Brave Parent Holdings, Inc.^*(2)(3)SoftwareL + 7.50%7.96%10/3/20184/19/202618,197 17,930 18,197 1.91 
Drilling Info Holdings, Inc.^(2)(3)Energy: Oil & GasL + 8.25%8.71%2/11/20207/30/202618,600 18,230 18,786 1.98 
Jazz Acquisition, Inc.^(2)(3)Aerospace & DefenseL + 8.00%8.46%6/13/20196/18/202723,450 23,197 20,947 2.20 
10

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—non-controlled/non-affiliated (1)
FootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition DateMaturity DatePar/ Principal Amount **
Amortized Cost (4)
Fair Value (5)
% of Net Assets
Outcomes Group Holdings, Inc.^*(2)(3)Business ServicesL + 7.50%7.85%10/23/201810/26/2026$1,731 $1,728 $1,731 0.18 %
PAI Holdco, Inc.^(2)(3)AutomotiveL + 5.50%, 2.00% PIK8.50%10/28/202010/28/202813,878 13,529 13,945 1.47 
Peraton Corp.^*(2)(3)Aerospace & DefenseL + 7.75%8.50%2/24/20212/1/202911,941 11,776 11,798 1.24 
Quartz Holding Company^*(2)(3)SoftwareL + 8.00%8.46%4/2/20194/2/20277,048 6,948 7,048 0.74 
Stonegate Pub Company Bidco Limited (United Kingdom)^(2)(3)(7)Beverage, Food & TobaccoSONIA + 8.50%9.19%3/12/20203/12/2028£20,000 24,802 22,445 2.36 
TruGreen Limited Partnership^(2)(3)Consumer ServicesL + 8.50%9.25%11/16/202011/2/202813,000 12,775 13,088 1.38 
Watchfire Enterprises, Inc.^(2)(3)Media: Advertising, Printing & PublishingL + 8.00%9.00%10/2/201310/2/20247,000 7,000 7,000 0.74 
World 50, Inc.^(9)Business Services11.50%11.50%1/10/20201/9/202718,552 18,228 17,784 1.87 
WP CPP Holdings, LLC^(2)(3)Aerospace & DefenseL + 7.75%8.75%7/18/20194/30/202629,500 29,303 28,659 3.02 
Second Lien Debt Total
$306,022 $304,202 32.00 %
Investments—non-controlled/non-affiliated (1)
FootnotesIndustryAcquisition DateShares/ UnitsCost
Fair
Value 
(5)
% of Net Assets
Equity Investments (4.2% of fair value)
ANLG Holdings, LLC^(6)Capital Equipment6/22/2018592$592 $729 0.08 %
Appriss Health, LLC^(6)Healthcare & Pharmaceuticals5/6/202154,5794,5810.48 
Atlas Ontario LP (Canada)^(6)(7)Business Services4/7/20215,1145,1145,1140.54 
Avenu Holdings, LLC^(6)Sovereign & Public Finance9/28/20181721735580.06 
Blackbird Holdco, Inc.^(6)Capital Equipment12/14/2021109,8139,8221.03 
Buckeye Parent, LLC^(6)Automotive12/22/20218858858850.09 
Chartis Holding, LLC^(6)Business Services5/1/20194334336830.07 
CIP Revolution Holdings, LLC^(6)Media: Advertising, Printing & Publishing8/19/20163183181920.02 
Cority Software Inc. (Canada)^(6)Software7/2/20192502505790.06 
Derm Growth Partners III, LLC ^(6)Healthcare & Pharmaceuticals5/31/20161,0001,000 — — 
Diligent Corporation^(6)Telecommunications4/5/20211110,83010,7411.13 
ECP Parent, LLC^(6)Healthcare & Pharmaceuticals3/29/2018268— 290 0.03 
GB Vino Parent, L.P.^(6)Beverage, Food & Tobacco10/29/202143513510.04 
Integrity Marketing Group, LLC^(6)Banking, Finance, Insurance & Real Estate12/21/202115,42515,12615,1731.60 
K2 Insurance Services, LLC^(6)Banking, Finance, Insurance & Real Estate7/3/2019433 306 690 0.07 
Legacy.com, Inc.^(6)High Tech Industries3/20/20171,5001,500 1,178 0.12 
Mailgun Technologies, Inc.^(6)High Tech Industries3/26/2019513670.04 
11

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—non-controlled/non-affiliated (1)
FootnotesIndustryAcquisition DateShares/ UnitsCost
Fair
Value 
(5)
% of Net Assets
North Haven Goldfinch Topco, LLC^(6)Containers, Packaging & Glass6/18/20182,315$2,315 $1,881 0.20 %
Pascal Ultimate Holdings, L.P^(6)Capital Equipment7/21/2021363643640.04 
Profile Holdings I, LP^(6)Chemicals, Plastics & Rubber3/8/20225523 523 0.06 
Sinch AB (Sweden)^(6)High Tech Industries3/26/201953593 364 0.04 
Tailwind HMT Holdings Corp.^(6)Energy: Oil & Gas11/17/2017221,558 1,362 0.14 
Tank Holding Corp.^(6)Capital Equipment3/26/2019850— 1,982 0.21 
Titan DI Preferred Holdings, Inc. ^(6)Energy: Oil & Gas2/11/202013,27013,021 13,403 1.41 
Turbo Buyer, Inc. ^(6)Automotive12/2/20191,925933 2,872 0.30 
Unifrutti Financing PLC (Cyprus)^(6)Beverage, Food & Tobacco10/22/20201494 6660.07 
Unifrutti Financing PLC (Cyprus)^(6)Beverage, Food & Tobacco10/22/2020133 2180.02 
U.S. Legal Support Investment Holdings, LLC^(6)Business Services11/30/20186416419420.10 
W50 Parent LLC^(6)Business Services1/10/20205001907520.08 
Zenith American Holding, Inc.^(6)Business Services12/13/20171,5647821,4370.15 
Equity Investments Total$72,817 $78,699 8.28 %
Total investments—non-controlled/non-affiliated$1,610,824 $1,576,247 165.83 %
Investments—non-controlled/affiliatedFootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition Date
Maturity Date
Par/ Principal Amount **
Amortized Cost (4)
Fair
Value (5)
% of Net 
Assets
First Lien Debt (1.6% of fair value)
Direct Travel, Inc.^*(2)(3)(8)(12)Hotel, Gaming & LeisureL + 1.00%, 7.50% PIK9.50%10/14/201610/1/2023$36,711 $35,729 $28,040 2.95 %
Direct Travel, Inc.^(2)(3)(12)(14)Hotel, Gaming & LeisureL + 6.00%7.00%10/1/202010/1/20232,7312,6032,7310.29 
First Lien Debt Total$38,332 $30,771 3.24 %
Investments—non-controlled/affiliatedFootnotesIndustryAcquisition DateShares/ UnitsCost
Fair
Value 
(5)
% of Net 
Assets
Equity Investments (0.0% of fair value)
Direct Travel, Inc.^(6)(12)Hotel, Gaming & Leisure10/1/202043 $— $— — %
Equity Investments Total$— $— — %
Total investments—non-controlled/affiliated$38,332 $30,771 3.24 %


12

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
Investments—controlled/affiliatedFootnotesIndustry
Reference Rate & Spread (2)
Interest Rate (2)
Acquisition DateMaturity DatePar Amount/ LLC Interest **Cost
Fair
Value (5)
% of Net Assets
Investment Funds (14.2% of fair value)
Middle Market Credit Fund II, LLC, Member's Interest^(7)(10)Investment FundsN/A—%11/3/202012/31/2030$78,121 $78,096 $76,880 8.09 %
Middle Market Credit Fund, LLC, Subordinated Loan and Member's Interest^(7)(10)Investment FundsN/A—%2/29/201612/31/2024193,000 193,001 189,285 19.92 
Middle Market Credit Fund, Mezzanine Loan^(2)(7)(9)(10)Investment FundsL + 9.00%9.21%6/30/20165/21/2022— — — 
Investment Funds Total$271,097 $266,165 28.01 %
Total investments—controlled/affiliated$271,097 $266,165 28.01 %
Total Investments$1,920,253 $1,873,183 197.07 %

^ Denotes that all or a portion of the assets are owned by Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “CSL” or the “Company”). The Company has entered into a senior secured revolving credit facility (as amended, the “Credit Facility”). The lenders of the Credit Facility have a first lien security interest in substantially all of the portfolio investments held by the Company (see Note 7, Borrowings, to these consolidated financial statements). Accordingly, such assets are not available to creditors of Carlyle Direct Lending CLO 2015-1R LLC (formerly known as Carlyle GMS Finance MM CLO 2015-1 LLC) (the “2015-1 Issuer”).
* Denotes that all or a portion of the assets are owned by the Company's wholly owned subsidiary, the 2015-1 Issuer, and secure the notes issued in connection with a term debt securitization completed by the Company on June 26, 2015 (see Note 8, Notes Payable, to these consolidated financial statements). Accordingly, such assets are not available to the creditors of the Company.
** Par amount is denominated in USD (“$”) unless otherwise noted, as denominated in Euro (“€”) or British Pound (“£”).
(1)Unless otherwise indicated, issuers of debt and equity investments held by the Company are domiciled in the United States. Under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”), the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. As of March 31, 2022, the Company does not “control” any of these portfolio companies. Under the Investment Company Act, the Company would be deemed an “affiliated person” of a portfolio company if the Company owns 5% or more of the portfolio company’s outstanding voting securities. As of March 31, 2022, the Company is not an “affiliated person” of any of these portfolio companies. Certain portfolio company investments are subject to contractual restrictions on sales.
(2)Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to either LIBOR (“L”), the Secured Overnight Financing Rate (“SOFR”) or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as of March 31, 2022. As of March 31, 2022, the reference rates for our variable rate loans were the 30-day LIBOR at 0.45%, the 90-day LIBOR at 0.96%, the 180-day LIBOR at 1.47%, the 30-day SOFR at 0.30%, and the 90-day SOFR at 0.68%.
(3)Loan includes interest rate floor feature, which is generally 1.00%.
(4)Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable, on debt investments using the effective interest method.
(5)Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (see Note 2, Significant Accounting Policies, and Note 3, Fair Value Measurements, to these consolidated financial statements), pursuant to the Company’s valuation policy. The fair value of all first lien and second lien debt investments, equity investments and the investment funds was determined using significant unobservable inputs.
(6)Security acquired in transaction exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act. As of March 31, 2022, the aggregate fair value of these securities is $78,699, or 8.28% of the Company’s net assets.
(7)The Company has determined the indicated investments are non-qualifying assets under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company’s total assets.
(8)Loan was on non-accrual status as of March 31, 2022.
(9)Represents a corporate mezzanine loan, which is subordinated to senior secured term loans of the portfolio company/investment fund.
13

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
(10)Under the Investment Company Act, the Company is deemed to be an “affiliated person” of and “control” this investment fund because the Company owns more than 25% of the investment fund’s outstanding voting securities and/or has the power to exercise control over management or policies of such investment fund. See Note 5, Middle Market Credit Fund, LLC, and Note 6, Middle Market Credit Fund II, LLC, to these consolidated financial statements for more details. Transactions related to investments in controlled affiliates for the three month period ended March 31, 2022, were as follows:
Investments—controlled/affiliatedFair Value as of December 31, 2021Additions/PurchasesReductions/Sales/ PaydownsNet Realized Gain (Loss)Net Change in Unrealized Appreciation (Depreciation)Fair Value as of March 31, 2022Dividend and Interest Income
Middle Market Credit Fund, LLC, Mezzanine Loan
$— $— $— $— $— $— $— 
Middle Market Credit Fund, LLC, Subordinated Loan and Member’s Interest
184,141 — — — 5,144 189,285 5,000 
Middle Market Credit Fund II LLC, Member's Interest77,958 — — — (1,078)76,880 2,524 
Total investments—controlled/affiliated$262,099 $— $— $— $4,066 $266,165 $7,524 

Investments—controlled/affiliatedFair Value as of December 31, 2021Additions/PurchasesReductions/Sales/ PaydownsNet Realized Gain (Loss)Net Change in Unrealized Appreciation (Depreciation)Fair Value as of March 31, 2022Dividend and Interest Income
SolAero Technologies Corp. (Priority Term Loan)$2,251 $— $(2,251)$— $— $— $
SolAero Technologies Corp. (A1 Term Loan)2,850 — (3,166)— 316 — 1,031 
SolAero Technologies Corp. (A2 Term Loan)    7,835 — (8,707)— 872 — 2,834 
Solaero Technology Corp. (Equity)
— — (4,003)1,189 2,814 — — 
Total investments—controlled/affiliated$12,936 $— $(18,127)$1,189 $4,002 $— $3,873 

(11)     In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among lenders. Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan with respect to principal, interest and other payments.
(12)    Under the Investment Company Act, the Company is deemed an “affiliated person” of this portfolio company because the Company owns 5% or more of the portfolio company's outstanding voting securities. Transactions related to the portfolio company during the three month period ended March 31, 2022 were as follows:
Investments—non-controlled/affiliatedFair Value as of December 31, 2021Additions/PurchasesReductions/Sales/ PaydownsNet Realized Gain (Loss)Net Change in Unrealized Appreciation (Depreciation)Fair Value as of March 31, 2022Dividend and Interest Income
Direct Travel, Inc.$27,555 $— $(131)$— $616 $28,040 $— 
Direct Travel, Inc.2,731 — — — — 2,731 48 
Direct Travel, Inc. (Equity)— — — — — — — 
Total investments—non-controlled/affiliated$30,286 $— $(131)$— $616 $30,771 $48 



14

CARLYLE SECURED LENDING, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2022
(dollar amounts in thousands)
(unaudited)
(13)The investment is secured by receivables purchased from the portfolio company, with an implied discount of 9.37%. The investment was made via a tranched participation arrangement between the purchaser of such receivables and the Company. The investment has a secondary priority behind the rights of such purchaser.
(14)As of March 31, 2022, the Company had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
Investments—non-controlled/non-affiliatedTypeUnused FeePar/ Principal AmountFair Value
First and Second Lien Debt—unfunded delayed draw and revolving term loans commitments
Advanced Web Technologies Holding CompanyDelayed Draw1.00%$1,602 $
Advanced Web Technologies Holding CompanyRevolver0.50854 
Airnov, Inc.Revolver0.50