Carlyle Secured Lending, Inc. (CGBD) Bundle
A Brief History of CGBD
As of 2024, CGBD has experienced significant transformations in its operations and financial performance. The company has maintained a robust investment strategy, focusing on middle-market companies across various sectors.
Financial Performance Overview
For the three months ended September 30, 2024, CGBD reported:
- Total investment income: $55.965 million
- Net investment income: $24.884 million
- Net realized loss on investments: $(11.477) million
- Net change in unrealized appreciation: $9.085 million
- Net increase in net assets resulting from operations: $19.611 million
Investment Portfolio
As of September 30, 2024, CGBD held a portfolio of:
- Number of investments: 175
- Total fair value: $1.7 billion
- Weighted average yield: 11.9% (based on amortized cost)
Capital Structure
CGBD's capital structure as of September 30, 2024, includes:
| Debt Type | Principal Amount | Interest Rate |
|---|---|---|
| 2024 Notes | $190 million | 4.75% |
| 2028 Notes | $85 million | 8.20% |
| 2030 Notes | $300 million | 6.75% |
Dividend Activity
In 2024, CGBD declared dividends totaling:
- Common stock dividends: $23.9 million, or $0.47 per share for the third quarter
- Annualized dividend yield: 14.2% as of September 30, 2024
Recent Developments
On October 18, 2024, CGBD completed a public offering of:
- Aggregate principal: $300 million
- Interest rate: 6.75% senior unsecured notes due February 18, 2030
As of September 30, 2024, CGBD's liquidity was:
- Total liquidity: $354.8 million in cash and undrawn debt capacity
Net Asset Value
The Net Asset Value (NAV) per common share as of September 30, 2024, was:
- NAV per share: $16.85
Throughout 2024, CGBD has demonstrated resilience amidst market fluctuations, maintaining a strategic focus on optimizing its investment portfolio and enhancing shareholder value.
A Who Owns Carlyle Secured Lending, Inc. (CGBD)
Ownership Structure
Carlyle Secured Lending, Inc. (CGBD) is primarily owned by institutional and retail investors. The company has a significant amount of its capital structure represented by both common and preferred shares.
Shareholder Breakdown
As of September 30, 2024, the following table outlines the ownership of Carlyle Secured Lending, Inc.:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Common Stockholders | 50,848,458 | 96.1% |
| Preferred Stockholders | 2,000,000 | 3.9% |
Preferred Stock Details
The Preferred Stock was issued to an affiliate of Carlyle at a price of $25 per share, with a liquidation preference totaling $50 million. The preferred stock pays a quarterly dividend at an initial rate of 7.00% per annum.
Recent Transactions and Stock Performance
In 2024, Carlyle Secured Lending, Inc. executed the following significant transactions:
- Declared dividends on common shares totaling $74.8 million for the nine months ended September 30, 2024.
- Completed a public offering of $300 million aggregate principal of 6.75% senior unsecured notes due February 18, 2030.
- Declared common stock dividends of $0.45 per share to be paid on January 17, 2025.
Market Capitalization and Stock Price
The market price per common share as of September 30, 2024, was $16.97, reflecting a market capitalization of approximately $862 million based on the number of common shares outstanding.
| Metric | Value |
|---|---|
| Market Price per Share | $16.97 |
| Market Capitalization | $862 million |
| Net Asset Value per Share | $16.85 |
| Total Assets | $1.7 billion |
Dividends and Earnings
The company declared a total of $74.8 million in dividends during the nine months ended September 30, 2024. The net investment income for the same period was reported at $80.206 million, resulting in a net increase in net assets of $906.604 million.
Debt Structure
Carlyle Secured Lending, Inc. has a total debt structure that includes:
| Debt Type | Principal Amount | Interest Rate |
|---|---|---|
| 2024 Notes | $190 million | 4.75% |
| 2028 Notes | $85 million | 8.20% |
| 2030 Notes | $300 million | 6.75% |
Liquidity Position
As of September 30, 2024, Carlyle Secured Lending, Inc. reported total liquidity of $354.8 million, which includes cash and undrawn debt capacity. This liquidity supports the company's operational and investment activities.
Carlyle Secured Lending, Inc. (CGBD) Mission Statement
Company Overview
Carlyle Secured Lending, Inc. (CGBD) is a business development company (BDC) focused on providing flexible financing solutions to middle-market companies. The company aims to deliver attractive risk-adjusted returns to its shareholders through a diversified investment portfolio.
Mission Statement
The mission of Carlyle Secured Lending, Inc. is to generate strong total returns for its shareholders by investing primarily in senior secured loans and other debt securities of private U.S. middle-market companies. The firm emphasizes a disciplined investment approach and aims to create value through active portfolio management and strategic partnerships.
Financial Performance (2024)
As of September 30, 2024, Carlyle Secured Lending reported:
- Net investment income: $24.0 million, or $0.47 per common share
- Dividends declared on common shares totaled $23.9 million, or $0.47 per share
- Net increase in net assets resulting from operations: $67.6 million
- Net asset value (NAV) per common share: $16.85
Investment Portfolio
As of September 30, 2024, CGBD's investment portfolio consists of:
| Investment Type | Count of Investments | Amortized Cost ($ million) | Fair Value ($ million) | Percentage of Total Investments |
|---|---|---|---|---|
| First Lien Debt | 135 | 1,256.1 | 1,234.1 | 72.2% |
| Second Lien Debt | 8 | 123.7 | 121.8 | 7.1% |
| Equity Investments | 29 | 106.7 | 109.6 | 6.4% |
| Investment Funds | 3 | 271.1 | 243.9 | 14.3% |
| Total Investments | 175 | 1,757.6 | 1,709.5 | 100.0% |
Liquidity Position
As of September 30, 2024, CGBD maintained a total liquidity position of:
- Cash and equivalents: $68.7 million
- Undrawn debt capacity: $592.4 million
Debt Obligations
The company’s debt obligations include:
| Debt Instrument | Outstanding Amount ($ million) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| Credit Facility | 197.6 | 6.74% | March 2025 |
| 2024 Notes | 190.0 | 4.75% | December 2024 |
| 2028 Notes | 85.0 | 8.20% | December 2028 |
| 2030 Notes | 300.0 | 6.75% | February 2030 |
Shareholder Returns
CGBD declared dividends totaling:
- Common stock dividends for Q3 2024: $0.47 per share
- Annualized dividend yield: Approximately 10.5% based on the current market price
Conclusion on Mission Alignment
The company's mission to provide attractive returns through careful management and strategic investments is reflected in its performance metrics and investment strategies as of 2024.
How Carlyle Secured Lending, Inc. (CGBD) Works
Overview of Operations
Carlyle Secured Lending, Inc. (CGBD) is a business development company (BDC) that primarily focuses on investing in senior secured loans to middle-market companies. As of September 30, 2024, the company held a diversified portfolio consisting of 175 investments across 128 portfolio companies and 26 industries, with a total fair value of approximately $1.7 billion.
Financial Performance
For the three months ended September 30, 2024, the company reported:
- Net investment income of $24.0 million, or $0.47 per common share.
- Dividends declared on common shares totaling $23.9 million, or $0.47 per share.
- Basic earnings per common share of $0.37 and diluted earnings per share of $0.35.
Investment Portfolio
The investment portfolio as of September 30, 2024, is summarized as follows:
| Type of Investment | Count of Investments | Amortized Cost ($ thousands) | Fair Value ($ thousands) | Percentage of Total Investments at Fair Value |
|---|---|---|---|---|
| First Lien Debt | 135 | 1,256,120 | 1,234,093 | 72.2% |
| Second Lien Debt | 8 | 123,675 | 121,838 | 7.1% |
| Equity Investments | 29 | 106,729 | 109,634 | 6.4% |
| Investment Funds | 3 | 271,097 | 243,972 | 14.3% |
| Total | 175 | 1,757,621 | 1,709,537 | 100% |
Liquidity and Capital Structure
As of September 30, 2024, CGBD reported total liquidity of $354.8 million, which includes cash and undrawn debt capacity. The company’s total debt and secured borrowings amounted to $848.5 million, with a weighted average interest rate of 8.59%.
Dividends and Stock Repurchase Program
For the nine months ended September 30, 2024, dividends declared totaled $74.8 million. The company also announced a continuation of its $200 million stock repurchase program.
Recent Developments
On October 18, 2024, CGBD completed a public offering of $300.0 million aggregate principal of 6.75% senior unsecured notes due February 18, 2030. This issuance included an interest rate swap agreement with JP Morgan Chase Bank N.A..
Conclusion of Financial Metrics
Key financial metrics as of September 30, 2024, include:
- Net asset value (NAV) per common share: $16.85
- Market price per common share: $16.97
- Total return based on NAV: 7.69%
- Total return based on market price: 23.17%.
How Carlyle Secured Lending, Inc. (CGBD) Makes Money
Investment Income
Carlyle Secured Lending, Inc. generates income primarily from its investment portfolio, which consists of secured debt investments in U.S. middle market companies. For the three months ended September 30, 2024, the company reported total investment income of $55.965 million, compared to $60.501 million for the same period in 2023.
| Type of Income | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Interest Income from Non-Controlled/Non-Affiliated Investments | $40,116 | $45,074 |
| PIK Income from Non-Controlled/Non-Affiliated Investments | $5,033 | $5,192 |
| Other Income from Non-Controlled/Non-Affiliated Investments | $1,037 | $766 |
| Total Investment Income from Non-Controlled/Non-Affiliated Investments | $46,186 | $51,032 |
| Interest Income from Non-Controlled/Affiliated Investments | $1,501 | $966 |
| Other Income from Controlled/Affiliated Investments | $8,276 | $8,276 |
| Total Investment Income | $55,965 | $60,501 |
Expenses
In addition to generating income, Carlyle Secured Lending incurs various expenses. For the third quarter of 2024, total expenses amounted to $30.155 million, with significant portions attributed to management fees and interest expenses.
| Type of Expense | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Base Management Fees | $6,590 | $7,080 |
| Incentive Fees | $5,101 | $5,530 |
| Interest Expense and Credit Facility Fees | $16,882 | $18,222 |
| Other Expenses | $2,582 | $1,343 |
| Total Expenses | $30,155 | $32,175 |
Net Investment Income
For the third quarter of 2024, the net investment income was reported at $24.009 million, or $0.47 per common share, reflecting a slight decline from the previous year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Investment Income (in thousands) | $24,009 | $25,998 |
| Net Investment Income per Share | $0.47 | $0.51 |
Portfolio Overview
As of September 30, 2024, Carlyle Secured Lending held a diversified portfolio consisting of 175 investments across 128 portfolio companies with a total fair value of approximately $1.7 billion.
| Portfolio Metrics | Value (in millions) |
|---|---|
| Total Fair Value of Investments | $1,709.537 |
| Number of Investments | 175 |
| Number of Portfolio Companies | 128 |
Debt Financing
The company utilizes debt financing to augment its investment capacity. As of September 30, 2024, total debt and secured borrowings amounted to $848.508 million, with a weighted average interest rate of 6.74%.
| Debt Metrics | Value (in millions) |
|---|---|
| Total Debt and Secured Borrowings | $848.508 |
| Weighted Average Interest Rate | 6.74% |
Dividend Payments
Carlyle Secured Lending has a history of returning capital to shareholders through dividends. For the third quarter of 2024, dividends declared on common shares totaled $23.9 million, or $0.47 per share.
| Dividend Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends Declared (in thousands) | $23,898 | $22,321 |
| Dividends per Share | $0.47 | $0.45 |
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Resources:
- Carlyle Secured Lending, Inc. (CGBD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carlyle Secured Lending, Inc. (CGBD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carlyle Secured Lending, Inc. (CGBD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.