UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2023
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||||||||
(212 ) 813-4900
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
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. ☐
Item 2.02 – Results of Operations and Financial Condition.
On February 27, 2023
The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933 (the "Securities Act") or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 7.01 – Regulation FD Disclosure.
On February 27, 2023
The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed incorporated by reference into any filing made under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 – Financial Statements and Exhibits.
Exhibits 99.1 and 99.2 shall be deemed furnished herewith.
(d)Exhibits:
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CARLYLE SECURED LENDING, INC. | ||||||||||||||
| (Registrant) | ||||||||||||||
| Dated: | By: | /s/ Thomas M. Hennigan | ||||||||||||
| Name: Thomas M. Hennigan | ||||||||||||||
| Title: Chief Financial Officer | ||||||||||||||
Exhibit 99.1
For Immediate Release
February 27, 2023
Carlyle Secured Lending, Inc. Announces Fourth Quarter and Full Year 2022 Financial Results, Declares First Quarter 2023 Base Dividend of $0.37 Per Share and Supplemental Dividend of $0.07 per Common Share
New York - Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “CSL” or the “Company”) (NASDAQ: CGBD) today announced its financial results for its fourth quarter and full year ended December 31, 2022.
Linda Pace, CSL’s Chair of the Board said, “Our fourth quarter and full year 2022 results were strong across each of our objectives and demonstrated our ability to deliver sustainable income, positive NAV growth and outstanding stock performance. We remain confident in the current positioning of our portfolio and look forward to another solid year of creating long-term value for our shareholders in 2023.”
Net investment income for the fourth quarter of 2022 was $0.48 per common share, and net asset value per common share decreased by 1.0% for the fourth quarter to $16.99 from $17.16 as of September 30, 2022. The total fair value of our investments was $2.0 billion as of December 31, 2022.
Dividends
On February 21, 2023, the Board of Directors declared a base quarterly common dividend of $0.37 plus a supplemental common dividend of $0.07, which are payable on April 14, 2023 to common stockholders of record on March 31, 2023.
On December 16, 2022, the Company declared a cash dividend on the Preferred Stock for the period from October 1, 2022 to December 31, 2022 in the amount of $0.438 per Preferred Share to the holder of record on December 30, 2022.
Conference Call
The Company will host a conference call at 10:00 a.m. EST on Tuesday, February 28, 2023 to discuss these quarterly financial results. The conference call will be available via public webcast via a link on Carlyle Secured Lending’s website and will also be available on our website soon after the call’s completion.
Carlyle Secured Lending, Inc.
CSL is an externally managed specialty finance company focused on lending to middle-market companies. CSL is managed by Carlyle Global Credit Investment Management L.L.C., an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. Since it commenced investment operations in May 2013 through December 31, 2022, CSL has invested approximately $7.7 billion in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. CSL’s investment objective is to generate current income and capital appreciation primarily through debt investments in U.S. middle market companies. CSL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.
Web: carlylesecuredlending.com
About Carlyle
Carlyle (“Carlyle,” or the “Adviser”) (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $373 billion of assets under management as of December 31, 2022, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,100
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employees in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may,” “plans,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. You should not place undue reliance on these forward-looking statements, which speak only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts:
| Investors: | Media: | ||||
| Daniel Hahn | Kristen Greco | ||||
| +1-212-813-4928 publicinvestor@carlylesecuredlending.com | +1-212-813-4763 kristen.greco@carlyle.com | ||||
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1 Carlyle Secured Lending, Inc. Quarterly Earnings Presentation December 31, 2022
Disclaimer and Forward-Looking Statement This presentation (the “Presentation”) has been prepared by Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “CSL” or the “Company”) (NASDAQ: CGBD) and may only be used for informational purposes only. This Presentation should be viewed in conjunction with the earnings conference call of the Company held on February 28, 2023 and the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The information contained herein may not be used, reproduced, referenced, quoted, linked by website, or distributed to others, in whole or in part, except as agreed in writing by the Company. This Presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy our common stock or any other securities nor will there be any sale of the common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. This Presentation provides limited information regarding the Company and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell, or an offer to sell or a solicitation of offers to purchase, our common stock or any other securities that may be issued by the Company, or as legal, accounting or tax advice. An investment in securities of the type described herein presents certain risks. This Presentation may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward- looking terminology such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may,” “plans,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. You should not place undue reliance on these forward-looking statements, which speak only as of the date on which we make them. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission (the “SEC”), and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Information throughout the Presentation provided by sources other than the Company (including information relating to portfolio companies) has not been independently verified and, accordingly, the Company makes no representation or warranty in respect of this information. The following slides contain summaries of certain financial and statistical information about the Company. The information contained in this Presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this Presentation. CSL is managed by Carlyle Global Credit Investment Management L.L.C. (the “Investment Adviser”), an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. (together with its affiliates, “Carlyle”). This Presentation contains information about the Company and certain of its affiliates and includes the Company’s historical performance. You should not view information related to the past performance of the Company as indicative of the Company’s future results, the achievement of which is dependent on many factors, many of which are beyond the control of the Company and the Investment Adviser and cannot be assured. There can be no assurances that future dividends will match or exceed historical rates or will be paid at all. Further, an investment in the Company is discrete from, and does not represent an interest in, any other Carlyle entity. Nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance of the Company or any other Carlyle entity. 2
• Net investment income per share was $0.48 per common share, up $0.04 compared to our 3Q22 core earnings due primarily to continued rise in benchmark interest rates • NAV per share was $16.99, down 1.0% compared to our 3Q22 NAV of $17.16 per share • The change in NAV in 4Q22 was driven by net unrealized losses from widening market yields offset by NII generated in excess of our 4Q22 dividend and accretive share repurchases • Declared a $0.37 base dividend plus a $0.07 supplemental for 1Q23, equating to an annualized dividend yield of 10.4% on our 4Q22 NAV • 4Q22 portfolio included total commitments of $2.2 billion across 134 portfolio companies • New investment fundings during the quarter were $128.6 million with a weighted average yield of 11.8% • Total repayments and sales during the quarter were $87.4 million with a weighted average yield of 10.1% • Added one new non-accrual investment in 4Q22, bringing total non-accrual investments to 3.6% and 2.9% of the total portfolio based on amortized cost and fair value, respectively • The annualized dividend yield on our Investment Funds increased to 12.2%, up 10% compared to prior quarters Portfolio & Investment Activity Fourth Quarter Results • Paid the 4Q22 base dividend of $0.36 plus a supplemental dividend of $0.08 per share • Repurchased 0.6 million shares in 4Q22 for $7.3 million, contributing $0.04 per share of NAV accretion • Net financial leverage increased to 1.16x, but remains comfortably within our target range • Total liquidity at 4Q22 was $278.4 million in cash and undrawn debt capacity Liquidity & Capital Activity Q4 2022 Quarterly Highlights 3 Note: Per share amounts within this presentation apply to common shares of the Company unless otherwise noted
Quarterly Operating Results Detail Please refer to the Company’s Form 10-K for more information. (1) Includes the preferred stock dividend. (2) Presented net of the preferred stock dividend for the period. (3) Reflects cumulative convertible preferred securities as equity, net of excess cash held at period end, which was $11.4 million on December 31, 2022. (4) Reflects cumulative convertible preferred securities as debt. These securities are considered "senior securities" for the purposes of calculating asset coverage pursuant to the Investment Company Act. (Dollar amounts in thousands, except per share data) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 SUMMARY INCOME STATEMENT Total investment income $ 43,972 $ 47,509 $ 44,568 $ 59,143 $ 56,036 Total expenses(1) (22,398) (22,865) (23,573) (28,865) (31,411) Net Investment Income(2) $ 21,574 $ 24,644 $ 20,995 $ 30,278 $ 24,625 Net realized and change in unrealized gains (losses) 11,512 5,164 (17,205) 6,677 (13,041) Net Income (Loss)(2) $ 33,086 $ 29,808 $ 3,790 $ 36,955 $ 11,584 Weighted average shares of common stock outstanding 53,466 52,892 52,421 51,863 51,310 Net Investment Income per Share(2) $ 0.40 $ 0.47 $ 0.40 $ 0.58 $ 0.48 Net Income (Loss) per Share(2) $ 0.62 $ 0.56 $ 0.07 $ 0.71 $ 0.23 SUMMARY BALANCE SHEET Total investments, at fair value $ 1,913,052 $ 1,873,183 $ 1,889,276 $ 1,948,957 $ 1,979,877 Cash, cash equivalents and restricted cash 93,074 69,512 39,291 68,644 30,506 Other assets 25,224 43,263 117,386 36,431 31,314 Total Assets $ 2,031,350 $ 1,985,958 $ 2,045,953 $ 2,054,032 $ 2,041,697 Total debt outstanding 1,044,022 996,141 1,079,954 1,060,615 1,077,192 Accrued expenses and liabilities 38,524 39,277 39,506 57,766 47,082 Preferred stock 50,000 50,000 50,000 50,000 50,000 Total Liabilities and Preferred Stock $ 1,132,546 $ 1,085,418 $ 1,169,460 $ 1,168,381 $ 1,174,274 Net Assets $ 898,804 $ 900,540 $ 876,493 $ 885,651 $ 867,423 Common shares outstanding at end of period 53,142 52,647 52,148 51,617 51,060 Net Asset Value per Common Share $ 16.91 $ 17.11 $ 16.81 $ 17.16 $ 16.99 LEVERAGE Net Financial Leverage (3) 1.02x 0.98x 1.05x 1.09x 1.16x Statutory Debt to Equity (4) 1.22x 1.16x 1.29x 1.26x 1.30x 4
Please refer to the Company’s Form 10-K for the year ended December 31, 2022 (“Form 10-K”) for more information. No assurance is given that the Company will continue to achieve comparable results. (1) Excludes activity related to the Investment Funds. (2) Based on cost/proceeds of equity activity. (3) At quarter end. (4) As a percentage of fair value (5) Weighted average yields of income producing investments includes Credit Fund and Credit Fund II, as well as income producing equity investments Origination Activity Detail (Dollar amounts in thousands and based on par) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 NEW INVESTMENT FUNDINGS BY ASSET TYPE (1) First lien debt $ 196,311 $ 110,594 $ 198,625 $ 267,262 $ 126,400 Second lien debt 13,861 249 430 285 318 Equity(2) 25,990 2,387 1,287 14,623 1,868 Total $ 236,162 $ 113,230 $ 200,342 $ 282,170 $ 128,586 Weighted Average Yield at Amortized Cost 7.8 % 7.7 % 8.3 % 10.0 % 11.8 % SALES & REPAYMENTS BY ASSET TYPE (1) First lien debt $ (243,762) $ (108,253) $ (156,301) $ (180,937) $ (87,352) Second lien debt (26,744) (36,325) (5,000) (31,500) — Equity(2) (14,545) (5,086) (1,031) — (60) Total $ (285,051) $ (149,664) $ (162,332) $ (212,437) $ (87,412) Weighted Average Yield at Amortized Cost 7.7 % 8.1 % 7.9 % 8.8 % 10.1 % Net Investment Activity $ (48,889) $ (36,434) $ 38,010 $ 69,733 $ 41,174 TOTAL INVESTMENT PORTFOLIO BY ASSET TYPE (3)(4) First lien debt 64.4 % 65.4 % 66.5 % 68.2 % 68.6 % Second lien debt 17.9 % 16.2 % 15.4 % 13.5 % 13.3 % Equity 4.0 % 4.2 % 4.2 % 4.7 % 4.8 % Investment funds 13.7 % 14.2 % 13.9 % 13.6 % 13.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Weighted Average Yield on Debt Investments at Amortized Cost 7.7 % 7.7 % 8.4 % 10.1 % 11.2 % Weighted Average Yield on Income Producing Investments at Amortized Cost(5) 8.3 % 8.3 % 8.9 % 10.3 % 11.4 % 5
69% 13% 5% 13% First Lien Debt Second Lien Debt Equity Investments Investment Funds 11% 8% 8% 7% 7% 6% 6%5% 42% Healthcare & Pharmaceuticals Business Services Software Diversified Financial Services Aerospace & Defense High Tech Industries Leisure Products & Services Consumer Services All Others Portfolio Highlights (1) Weighted average yields of income producing investments includes Credit Fund and Credit Fund II, as well as income producing equity investments (2) Represents CSL's exposure to the respective underlying portfolio companies, including CSL's proportionate share of the portfolio companies held in the Investment Funds. (3) Excludes equity positions, loans on non-accrual, unfunded commitments, and certain asset-backed, asset-based, and recurring revenue loans. Total investment commitments ($mm) $2,187 Total unfunded commitments ($mm) $158 Total investments at fair value ($mm) $1,980 Weighted Average Yield on Income Producing Investments at Amortized Cost(1) 11.4% Number of investments 173 Number of portfolio companies 134 Average exposure by portfolio company 0.7% 6 Key Statistics Asset Mix Borrowers Industry Exposure(2) Floating Rate 99% Company EBITDA(3) (Median) $73mm Sponsored 94% Floating Rate Covenanted Median EBITDA Origination LTV 98.5% []% $[] Senior Secured Exposure(2) 86% []%
30% 35% 35% Top 10 Investments Next 11-25 Remaining Investments 13% 11% 8% 6% 5% 5%5%5% 42% Business Services Diversified Financial Services Healthcare & Pharmaceuticals Utilities: Electric Containers, Packaging & Glass Aerospace & Defense Telecommunications Leisure Products & Services All Others Combined Investment Funds Portfolio Overview of Investment Funds (1) Weighted average yields at cost of the debt investments include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of period end. Actual yields earned over the life of each investment could differ materially from the yields presented above. 7 Key Statistics - Credit Fund II Diversification by Borrower Diversification by Industry CSL Investment at cost ($mm) $78 CSL ownership 84.1 % Yield of debt investments at cost (1) 11.1 % Leverage 1.81x Effective cost of debt SOFR + 2.88% Annualized dividend yield to CSL 14.2 % Key Statistics - Credit Fund CSL Investment at cost ($mm) $193 CSL ownership 50.0 % Yield of debt investments at cost (1) 10.0 % Leverage 1.77x Effective cost of debt SOFR +2.35% Annualized dividend yield to CSL 11.4 % Portfolio Asset Yield Floating Rate First Lien % of CSL Portfolio $1,147 10.2% 99.5% 97.9% 13.3% • Weighted Average annualized dividend yield from Investment Funds was 12.2%, an increase of 10% compared to prior quarters, which contributed an incremental $0.01 of NII per share in the fourth quarter.
Funding and Capital Management Overview Commitment Outstanding Maturity Date Pricing Credit facility $688 $440 05/25/2027 SOFR + 1.88% 2015-1R notes $449 $449 10/15/2031 L + 2.00%(1) 2019 senior notes $115 $115 12/31/2024 4.75% 2020 senior notes $75 $75 12/31/2024 4.50% Total / Weighted Average(2) $1,327 $1,079 5.8 years 5.78% Overview of Balance Sheet Financing Facilities 8 81% % of Committed Balance Sheet Leverage Utilized % of Utilized Balance Sheet Leverage Mark-To-Market % of Utilized Balance Sheet Leverage Fixed 20% (1) Represents the weighted average interest rate for the 2015-1R Notes over the various tranches of issued notes, excluding a $25 million note that has a fixed interest rate of 4.56%. (2) Weighted average maturity and pricing amounts are calculated based on amount outstanding 41%
Note: The net asset value per share and dividends declared per share are based on the shares outstanding at each respective quarter-end. Net investment income per share and net change in realized and unrealized appreciation (depreciation) per share are based on the weighted average number of shares outstanding for the period. Net investment income is also net of the preferred dividend. Totals may not sum due to rounding. Net Asset Value Per Share Bridge Full Year 2022Q4 2022 9 $17.16 $0.48 $(0.44) $(0.25) $0.04 $16.99 September 30, 2022 NAV Net Investment Income Dividend Declared Net Realized and Unrealized Gain (Loss) Impact of Share Repurchases & Other December 31, 2022 NAV $16.91 $1.93 $(1.64) $(0.35) $0.14 $16.99 December 31, 2021 NAV Net Investment Income Dividend Declared Net Realized and Unrealized Gain (Loss) Impact of Share Repurchases & Other December 31, 2022 NAV
• As of December 31, 2022, three borrowers were on non-accrual status, representing 2.9% of total investments at fair value and 3.6% at amortized cost. Risk Rating Distribution RATING DEFINITION 1 Borrower is operating above expectations, and the trends and risk factors are generally favorable. 2 Borrower is operating generally as expected or at an acceptable level of performance. The level of risk to our initial cost basis is similar to the risk to our initial cost basis at the time of origination. This is the initial risk rating assigned to all new borrowers. 3 Borrower is operating below expectations and level of risk to our cost basis has increased since the time of origination. The borrower may be out of compliance with debt covenants. Payments are generally current although there may be higher risk of payment default. 4 Borrower is operating materially below expectations and the loan’s risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due, but generally not by more than 120 days. It is anticipated that we may not recoup our initial cost basis and may realize a loss of our initial cost basis upon exit. 5 Borrower is operating substantially below expectations and the loan’s risk has increased substantially since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. It is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit. PORTFOLIO RISK RATINGS (Dollar amounts in millions) September 30, 2022 December 31, 2022 Internal Risk Rating Fair Value % of Fair Value Fair Value % of Fair Value 1 $33.9 2.1 % $30.7 1.9 % 2 1,261.1 79.3 % 1,280.1 78.8 % 3 259.4 16.3 % 254.0 15.7 % 4 37.4 2.3 % 48.6 3.0 % 5 0.0 — % 9.3 0.6 % Total $1,591.8 100.0 % $1,622.7 100.0 % 10
11 Appendix
Quarterly Balance Sheet Detail Please refer to the Company’s Form 10-K for more information. (Dollar amounts in thousands, except per share data) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 ASSETS Investments—non-controlled/non-affiliated, at fair value $ 1,607,731 $ 1,576,247 $ 1,593,901 $ 1,642,494 $ 1,671,488 Investments—non-controlled/affiliated, at fair value 30,286 30,771 32,697 41,863 45,367 Investments—controlled/affiliated, at fair value 275,035 266,165 262,678 264,600 263,022 Total Investments, at Fair Value 1,913,052 1,873,183 1,889,276 1,948,957 1,979,877 Cash, cash equivalents and restricted cash 93,074 69,512 39,291 68,644 30,506 Receivable for investments sold/repaid 530 13,060 89,445 4,884 1,528 Interest and Dividend Receivable 20,144 25,107 22,055 24,328 24,023 Prepaid expenses and other assets 4,550 5,096 5,886 7,219 5,763 Total Assets $ 2,031,350 $ 1,985,958 $ 2,045,953 $ 2,054,032 $ 2,041,697 LIABILITIES & NET ASSETS Debt and Secured Borrowings, net of unamortized debt issuance costs $ 1,044,022 $ 996,141 $ 1,079,954 $ 1,060,615 $ 1,077,192 Payable for investments purchased 323 328 322 13,872 287 Interest and credit facility fees payable 2,467 2,727 3,198 5,240 6,749 Dividend payable 20,705 21,035 20,840 20,625 22,446 Base management and incentive fees payable 11,819 12,304 11,581 13,748 12,681 Administrative service fees payable 482 825 938 1,409 1,711 Other accrued expenses and liabilities 2,728 2,058 2,627 2,872 3,208 Total Liabilities $ 1,082,546 $ 1,035,418 $ 1,119,460 $ 1,118,381 $ 1,124,274 Preferred Stock 50,000 50,000 50,000 50,000 50,000 Total Liabilities and Preferred Stock $ 1,132,546 $ 1,085,418 $ 1,169,460 $ 1,168,381 $ 1,174,274 Net Assets $ 898,804 $ 900,540 $ 876,493 $ 885,651 $ 867,423 Net Asset Value Per Common Share $ 16.91 $ 17.11 $ 16.81 $ 17.16 $ 16.99 12
Quarterly Income Statement Detail Note: There can be no assurance that we will continue to earn income at this rate and our income may decline. If our income declines, we may reduce the dividend we pay and the yield you earn may decline. Refer to the consolidated financial statements included in Part II, Item 8 of the Company’s Form 10-K for additional details. (1) Inclusive of payment-in-kind interest income (Dollar amounts in thousands, except per share data) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 INVESTMENT INCOME Interest income(1) 34,687 37,749 35,410 48,645 47,021 Income from credit funds 7,524 7,524 7,524 7,524 8,276 Other income 1,761 2,236 1,634 2,974 739 Total Investment Income $ 43,972 $ 47,509 $ 44,568 $ 59,143 $ 56,036 EXPENSES Management fees $ 7,319 $ 7,050 $ 7,113 $ 7,262 $ 7,378 Incentive fees 4,487 5,228 4,458 6,451 5,277 Interest expense and credit facility fees 7,745 7,616 9,170 11,937 15,238 Other expenses 1,616 1,743 1,781 1,891 1,792 Excise tax expense 356 353 176 449 851 Net Expenses $ 21,523 $ 21,990 $ 22,698 $ 27,990 $ 30,536 Preferred stock dividend 875 875 875 875 875 Net Investment Income $ 21,574 $ 24,644 $ 20,995 $ 30,278 $ 24,625 Net realized and change in unrealized gains (losses) 11,512 5,164 (17,205) 6,677 (13,041) Net Income (Loss) $ 33,086 $ 29,808 $ 3,790 $ 36,955 $ 11,584 Net Investment Income per Common Share $ 0.40 $ 0.47 $ 0.40 $ 0.58 $ 0.48 Net Income (Loss) per Common Share $ 0.62 $ 0.56 $ 0.07 $ 0.71 $ 0.23 13