Tuesday, September 27, 2022

Carlyle Secured Lending, Inc. Declares Second Quarter 2022 Monetary Outcomes and Will increase Quarterly Base Dividend Price

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Carlyle Secured Lending, Inc.

Carlyle Secured Lending, Inc.

NEW YORK, Aug. 09, 2022 (GLOBE NEWSWIRE) — Carlyle Secured Lending, Inc. (along with its consolidated subsidiaries, “we,” “us,” “our,” “CSL” or the “Firm”, previously referred to as TCG BDC, Inc.) (NASDAQ: CGBD) at present introduced its monetary outcomes for its second quarter ended June 30, 2022 and declared complete third quarter dividends $0.40 of per share.

Linda Tempo, CSL’s Chief Government Officer mentioned, “Our second quarter outcomes once more demonstrated stable credit score efficiency and enticing, sustainable revenue returns. Regardless of complicated and evolving macroeconomic situations, we’re positioned for sturdy revenue development from the online reductions in non-accrual property, growing rates of interest and a positive deployment surroundings. Because of this, we elevated our base dividend charge within the third quarter, with an expectation for extra will increase over the approaching quarters.”

Chosen Monetary Highlights

(greenback quantities in 1000’s, besides share and per share knowledge)

June 30, 2022

 

March 31, 2022

Whole investments, at honest worth

$

1,889,276

 

$

1,873,183

Whole property

 

2,045,953

 

 

1,985,958

Whole debt

 

1,079,954

 

 

996,141

Whole web property

$

926,493

 

$

950,540

Internet property per frequent share

$

16.81

 

$

17.11

 

 

For the three month durations ended

 

 

June 30, 2022

 

March 31, 2022

Whole funding revenue

 

$

44,568

 

 

$

47,509

Internet funding revenue (loss), web of the popular dividend

 

 

20,995

 

 

 

24,644

Internet realized achieve (loss) and web change in unrealized appreciation (depreciation) on investments and non-investment property and liabilities

 

 

(17,205

)

 

 

5,164

Internet enhance (lower) in web property ensuing from operations attributable to frequent stockholders

 

$

3,790

 

 

$

29,808

 

 

 

 

 

Per weighted-average frequent share—Fundamental:

 

 

 

 

Internet funding revenue (loss), web of most well-liked dividend

 

$

0.40

 

 

$

0.47

Internet realized achieve (loss) and web change in unrealized appreciation (depreciation) on investments and non-investment property and liabilities

 

 

(0.33

)

 

 

0.09

Internet enhance (lower) in web property ensuing from operations attributable to frequent stockholders

 

$

0.07

 

 

$

0.56

Weighted-average shares of frequent inventory excellent—Fundamental

 

 

52,421,296

 

 

 

52,892,054

Base dividends declared per frequent share

 

$

0.32

 

 

$

0.32

Supplemental dividends declared per frequent share

 

$

0.08

 

 

$

0.08

Quarterly Highlights and Latest Developments 
(greenback quantities in 1000’s, besides per share knowledge)

  • Internet funding revenue, web of the popular dividend, for the three month interval ended June 30, 2022 was $20,995, or $0.40 per frequent share, as in comparison with $24,644, or $0.47 per frequent share, for the three month interval ended March 31, 2022.

  • Internet realized achieve (loss) and web change in unrealized appreciation (depreciation) on investments and non-investment property and liabilities for the three month interval ended June 30, 2022 was $(17,205), or $(0.33) per share, as in comparison with $5,164, or $0.09 per share, for the three month interval ended March 31, 2022.

  • Internet enhance (lower) in web property ensuing from operations attributable to frequent stockholders for the three month interval ended June 30, 2022 was $3,790, or $0.07 per frequent share, as in comparison with $29,808, or $0.56 per share, for the three month interval ended March 31, 2022.

  • Internet asset worth per frequent share for the quarter ended June 30, 2022 decreased 1.8% to $16.81 from $17.11 as of March 31, 2022 primarily on account of widening market yields, partially offset by continued restoration within the valuations of watchlist investments and stays 1.5% increased than the 4Q19 NAV of $16.56.

  • The Firm repurchased and extinguished 0.5 million shares of the Firm’s frequent inventory through the three month interval ended June 30, 2022, at a median price of $13.97 per share, or $6,968 within the combination, leading to accretion to web property per share of $0.03. As of June 30, 2022, there was $10.7 million remaining underneath the inventory repurchase program.

  • Subsequent to quarter finish, the Board authorised extending the present inventory repurchase program by one 12 months by way of November 5, 2023 and licensed growing the whole measurement of this system to $200 million, offering an incremental $50 million of repurchasing capability.

  • On August 8, 2022, the Board of Administrators declared a base quarterly frequent dividend of $0.34 plus a supplemental frequent dividend of $0.06, that are payable on October 14, 2022 to frequent stockholders of file on September 30, 2022.

Portfolio and Funding Exercise
(greenback quantities in 1000’s, besides per share knowledge, until in any other case famous)

As of June 30, 2022, the honest worth of our investments was roughly $1,889,276, comprised of 161 investments in 125 portfolio firms/funding funds throughout 28 industries. This compares to the Firm’s portfolio as of March 31, 2022, as of which date the honest worth of our investments was roughly $1,873,183, comprised of 156 investments in 117 portfolio firms/funding funds throughout 27 industries.

As of June 30, 2022 and March 31, 2022, investments consisted of the next:

 

June 30, 2022

 

March 31, 2022

Kind—% of Truthful Worth

Truthful Worth

 

% of Truthful Worth

 

Truthful Worth

 

 

% of Truthful Worth

First Lien Debt

$

1,257,282

 

66.5

%

 

$

1,224,117

 

 

65.4

%

Second Lien Debt

 

290,683

 

15.4

 

 

 

304,202

 

 

16.2

 

Fairness Investments

 

78,633

 

4.2

 

 

 

78,699

 

 

4.2

 

Funding Funds

 

262,678

 

13.9

 

 

 

266,165

 

 

14.2

 

Whole

$

1,889,276

 

100.0

%

 

$

1,873,183

 

 

100.0

%

The next desk exhibits our funding exercise for the three month interval ended June 30, 2022:

 

Funded

 

Offered/Repaid

Principal quantity of investments:

Quantity

 

% of Whole

 

Quantity

 

% of Whole

First Lien Debt

$

198,625

 

99.8

%

 

$

(156,301

)

 

96.9

 

Second Lien Debt

 

430

 

0.2

 

 

 

(5,000

)

 

3.1

 

Fairness Investments

 

51

 

 

 

 

(51

)

 

 

Funding Funds

 

 

 

 

 

 

 

 

Whole

$

199,106

 

100.0

%

 

$

(161,352

)

 

100.0

%

Total, complete investments at honest worth elevated by 0.9%, or $16,093, through the three month interval ended June 30, 2022 after factoring in repayments, gross sales, web fundings on revolvers and delayed attracts and web change in unrealized appreciation (depreciation).

As of June 30, 2022, the whole weighted common yield for our first and second lien debt investments on an amortized price foundation was 8.37%, which incorporates the impact of accretion of reductions and amortization of premiums and are primarily based on rates of interest as of June 30, 2022. As of June 30, 2022, on a good worth foundation, roughly 1.5% of our debt investments bear curiosity at a set charge and roughly 98.5% of our debt investments bear curiosity at a floating charge.

The Firm has investments in two credit score funds, Center Market Credit score Fund, LLC (“Credit score Fund”) and Center Market Credit score Fund II, LLC (“Credit score Fund II”), which represented 13.9% of the Firm’s complete investments at honest worth as of June 30, 2022.

Whole investments at honest worth held by Credit score Fund, which isn’t consolidated with the Firm, elevated by 1.5%, or $13,881, through the three month interval ended June 30, 2022 after factoring in repayments, gross sales, web fundings on revolvers and delayed attracts and web change in unrealized appreciation (depreciation). As of June 30, 2022, Credit score Fund had complete investments at honest worth of $911,698, which had been comprised of 100.0% of first lien senior secured loans at honest worth. As of June 30, 2022, on a good worth foundation, 100.0% of Credit score Fund’s debt investments bear curiosity at a floating charge.

Whole investments at honest worth held by Credit score Fund II, which isn’t consolidated with the Firm, elevated by 5.8%, or $13,047 through the three month interval ended June 30, 2022 after factoring in repayments, gross sales, and web change in unrealized appreciation (depreciation). As of June 30, 2022, Credit score Fund II had complete investments at honest worth of $237,360, which had been comprised of 89.5% of first lien senior secured loans and 10.5% of second lien senior secured loans at honest worth. As of June 30, 2022, on a good worth foundation, roughly 2.2% of Credit score Fund II’s debt investments bear curiosity at a set charge and roughly 97.8% of Credit score Fund II’s debt investments bear curiosity at a floating charge.

As a part of the monitoring course of, our Funding Adviser has developed threat insurance policies pursuant to which it often assesses the chance profile of every of our debt investments and charges every of them primarily based on the next classes, which we discuss with as “Inner Threat Rankings”. Key drivers of inner threat scores embody monetary metrics, monetary covenants, liquidity and enterprise worth protection.

Inner Threat Rankings Definitions

Score

  

Definition

1

  

Borrower is working above expectations, and the tendencies and threat components are usually favorable.

 

 

2

  

Borrower is working usually as anticipated or at an appropriate stage of efficiency. The extent of threat to our preliminary price bases is just like the chance to our preliminary price foundation on the time of origination. That is the preliminary threat ranking assigned to all new debtors.

 

 

3

  

Borrower is working beneath expectations and stage of threat to our price foundation has elevated because the time of origination. The borrower could also be out of compliance with debt covenants. Funds are usually present though there could also be increased threat of fee default.

 

 

4

  

Borrower is working materially beneath expectations and the mortgage’s threat has elevated materially since origination. Along with the borrower being usually out of compliance with debt covenants, mortgage funds could also be late, however usually not by greater than 120 days. It’s anticipated that we might not recoup our preliminary price foundation and will understand a lack of our preliminary price foundation upon exit.

 

 

5

  

Borrower is working considerably beneath expectations and the mortgage’s threat has elevated considerably since origination. Most or the entire debt covenants are out of compliance and funds are considerably delinquent. It’s anticipated that we’ll not recoup our preliminary price foundation and will understand a considerable lack of our preliminary price foundation upon exit.

Our Funding Adviser displays and, when acceptable, modifications the funding scores assigned to every debt funding in our portfolio. Our Funding Adviser critiques our funding scores in reference to our quarterly valuation course of. The next desk summarizes the Inner Threat Rankings of our debt portfolio as of June 30, 2022 and March 31, 2022:

 

June 30, 2022

 

March 31, 2022

 

Truthful Worth

 

% of Truthful Worth

 

Truthful Worth

 

% of Truthful Worth

(greenback quantities in hundreds of thousands)

 

 

 

 

 

 

 

Inner Threat Score 1

$

60.1

 

3.9

%

 

$

16.9

 

1.1

%

Inner Threat Score 2

 

1,124.5

 

72.7

 

 

 

1,152.0

 

75.4

 

Inner Threat Score 3

 

288.5

 

18.6

 

 

 

290.3

 

19.0

 

Inner Threat Score 4

 

30.0

 

1.9

 

 

 

28.0

 

1.8

 

Inner Threat Score 5

 

45.0

 

2.9

 

 

 

41.1

 

2.7

 

Whole

$

1,548.0

 

100.0

%

 

$

1,528.3

 

100.0

%

As of June 30, 2022 and March 31, 2022, the weighted common Inner Threat Score of our debt funding portfolio was 2.3 and a couple of.3, respectively.

Consolidated Outcomes of Operations
(greenback quantities in 1000’s, besides per share knowledge)

Whole funding revenue for the three month durations ended June 30, 2022 and March 31, 2022 was $44,568 and $47,509, respectively. Excluding one-time revenue acquired through the three month interval ended March 31, 2022 from the exit of the funding in SolAero, complete funding revenue for the three month interval ended June 30, 2022 elevated $1,204 on account of increased core curiosity revenue from a better common funding stability and better benchmark rates of interest.

Whole bills for the three month durations ended June 30, 2022 and March 31, 2022 had been $22,698 and $21,990, respectively. This $708 web enhance through the three month interval ended June 30, 2022 was primarily on account of a rise in curiosity expense because of a better common debt stability and better benchmark rates of interest, partially offset by decrease incentive charges.

Through the three month interval ended June 30, 2022, the Firm recorded a web realized and unrealized lack of $(17,205). This was pushed primarily by the adverse impression of widening market yields and, to a lesser extent, inflation pushed earnings impacts at sure debtors, partially offset by continued restoration within the valuations of watchlist investments.

Liquidity and Capital Assets
(greenback quantities in 1000’s, besides per share knowledge)

As of June 30, 2022, the Firm had money, money equivalents and restricted money of $39,291, notes payable and senior unsecured notes (earlier than debt issuance prices) of $449,200 and $190,000, respectively, and secured borrowings excellent of $443,395. As of June 30, 2022, the Firm had $244,605 of remaining unfunded commitments and $244,464 out there for extra borrowings underneath its revolving credit score facility, topic to leverage and borrowing base restrictions.

Dividends

On August 8, 2022, the Board of Administrators declared a base quarterly frequent dividend of $0.34 plus a supplemental frequent dividend of $0.06, that are payable on October 14, 2022 to frequent stockholders of file on September 30, 2022.

On June 27, 2022, the Firm declared and paid a money dividend on the Most popular Inventory for the interval from April 1, 2022 to June 30, 2022 within the quantity of $0.438 per Most popular Share to the holder of file on June 30, 2022.

Convention Name

The Firm will host a convention name at 10:00 a.m. EDT on Wednesday, August 10, 2022 to debate these quarterly monetary outcomes. The decision and webcast will probably be out there on the CSL web site at carlylesecuredlending.com. The decision could also be accessed by dialing +1 (646) 307-1963 (U.S.) or +1 (800) 715-9871 (worldwide) and referencing “Carlyle Secured Lending Monetary Outcomes Name.” The convention name will probably be webcast concurrently by way of a hyperlink on Carlyle Secured Lending’s web site and an archived replay of the webcast additionally will probably be out there on the web site quickly after the stay name for 21 days.

CARLYLE SECURED LENDING, INC.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(greenback quantities in 1000’s, besides per share knowledge)

 

June 30, 2022

 

March 31, 2022

 

(unaudited)

 

(unaudited)

ASSETS

 

 

 

Investments, at honest worth

 

 

 

Investments—non-controlled/non-affiliated, at honest worth (amortized price of $1,649,919 and $1,610,824, respectively)

$

1,593,901

 

 

$

1,576,247

 

Investments—non-controlled/affiliated, at honest worth (amortized price of $37,285 and $38,332, respectively)

 

32,697

 

 

 

30,771

 

Investments—managed/affiliated, at honest worth (amortized price of $271,097 and $271,097, respectively)

 

262,678

 

 

 

266,165

 

Whole investments, at honest worth (amortized price of $1,958,301 and $1,920,253, respectively)

 

1,889,276

 

 

 

1,873,183

 

Money, money equivalents and restricted money

 

39,291

 

 

 

69,512

 

Receivable for funding bought/repaid

 

89,445

 

 

 

13,060

 

Deferred financing prices

 

4,044

 

 

 

2,882

 

Curiosity receivable from non-controlled/non-affiliated investments

 

12,875

 

 

 

15,284

 

Curiosity receivable from non-controlled/affiliated investments

 

615

 

 

 

611

 

Curiosity and dividend receivable from managed/affiliated investments

 

8,565

 

 

 

9,212

 

Pay as you go bills and different property

 

1,842

 

 

 

2,214

 

Whole property

$

2,045,953

 

 

$

1,985,958

 

LIABILITIES

 

 

 

Secured borrowings

$

443,395

 

 

$

359,679

 

2015-1R Notes payable, web of unamortized debt issuance prices of $2,294 and $2,356, respectively

 

446,906

 

 

 

446,844

 

Senior Notes, web of unamortized debt issuance prices of $347 and $382, respectively)

 

189,653

 

 

 

189,618

 

Payable for investments bought

 

322

 

 

 

328

 

Curiosity and credit score facility charges payable

 

3,198

 

 

 

2,727

 

Dividend payable

 

20,840

 

 

 

21,035

 

Base administration and incentive charges payable

 

11,581

 

 

 

12,304

 

Administrative service charges payable

 

938

 

 

 

825

 

Different accrued bills and liabilities

 

2,627

 

 

 

2,058

 

Whole liabilities

 

1,119,460

 

 

 

1,035,418

 

 

 

 

 

NET ASSETS

 

 

 

Cumulative convertible most well-liked inventory, $0.01 par worth; 2,000,000 shares licensed; 2,000,000 shares issued and excellent as of June 30, 2022 and March 31, 2022

 

50,000

 

 

 

50,000

 

Widespread inventory, $0.01 par worth; 198,000,000 shares licensed; 52,148,211 and 52,647,158 shares issued and excellent at June 30, 2022 and March 31, 2022, respectively

 

521

 

 

 

527

 

Paid-in capital in extra of par worth

 

1,038,462

 

 

 

1,045,424

 

Providing prices

 

(1,633

)

 

 

(1,633

)

Whole distributable earnings (loss)

 

(160,857

)

 

 

(143,778

)

Whole web property

$

926,493

 

 

$

950,540

 

NET ASSETS PER COMMON SHARE

$

16.81

 

 

$

17.11

 

 

 

 

 

 

 

 

 

CARLYLE SECURED LENDING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(greenback quantities in 1000’s, besides per share knowledge)

 

 

For the three month durations ended

 

 

June 30, 2022

 

March 31, 2022

 

 

(unaudited)

 

(unaudited)

Funding revenue:

 

 

 

 

From non-controlled/non-affiliated investments:

 

 

 

 

Curiosity revenue

 

$

35,362

 

 

$

33,828

 

Different revenue

 

 

1,632

 

 

 

1,962

 

Whole funding revenue from non-controlled/non-affiliated investments

 

 

36,994

 

 

 

35,790

 

From non-controlled/affiliated investments:

 

 

 

 

Curiosity revenue

 

 

48

 

 

 

48

 

Different revenue

 

 

2

 

 

 

2

 

Whole funding revenue from non-controlled/affiliated investments

 

 

50

 

 

 

50

 

From managed/affiliated investments:

 

 

 

 

Curiosity revenue

 

 

 

 

 

3,873

 

Dividend revenue

 

 

7,524

 

 

 

7,524

 

Different revenue

 

 

 

 

 

272

 

Whole funding revenue from managed/affiliated investments

 

 

7,524

 

 

 

11,669

 

Whole funding revenue

 

 

44,568

 

 

 

47,509

 

Bills:

 

 

 

 

Base administration charges

 

 

7,113

 

 

 

7,050

 

Incentive charges

 

 

4,458

 

 

 

5,228

 

Skilled charges

 

 

752

 

 

 

783

 

Administrative service charges

 

 

461

 

 

 

406

 

Curiosity expense

 

 

8,582

 

 

 

7,099

 

Credit score facility charges

 

 

588

 

 

 

517

 

Administrators’ charges and bills

 

 

186

 

 

 

160

 

Different basic and administrative

 

 

382

 

 

 

394

 

Whole bills

 

 

22,522

 

 

 

21,637

 

Internet funding revenue (loss) earlier than taxes

 

 

22,046

 

 

 

25,872

 

Excise tax expense

 

 

176

 

 

 

353

 

Internet funding revenue (loss)

 

 

21,870

 

 

 

25,519

 

Internet realized achieve (loss) and web change in unrealized appreciation (depreciation) on investments and non-investment property and liabilities:

 

 

 

 

Internet realized achieve (loss) from:

 

 

 

 

Non-controlled/non-affiliated investments

 

 

(653

)

 

 

4,575

 

Managed/affiliated

 

 

707

 

 

 

1,264

 

Forex positive factors (losses) on non-investment property and liabilities

 

 

(39

)

 

 

(368

)

Internet change in unrealized appreciation (depreciation) on investments:

 

 

 

 

Non-controlled/non-affiliated

 

 

(21,439

)

 

 

(11,243

)

Non-controlled/affiliated

 

 

2,974

 

 

 

614

 

Managed/affiliated

 

 

(3,487

)

 

 

8,057

 

Internet change in unrealized forex positive factors (losses) on non-investment property and liabilities

 

 

4,732

 

 

 

2,265

 

Internet realized and unrealized achieve (loss) on investments and non-investment property and liabilities

 

 

(17,205

)

 

 

5,164

 

Internet enhance (lower) in web property ensuing from operations

 

 

4,665

 

 

 

30,683

 

Most popular inventory dividend

 

 

875

 

 

 

875

 

Internet enhance (lower) in web property ensuing from operations attributable to Widespread Stockholders

 

$

3,790

 

 

$

29,808

 

Fundamental and diluted earnings per frequent share:

 

 

 

 

Fundamental

 

$

0.07

 

 

$

0.56

 

Diluted

 

$

0.07

 

 

$

0.53

 

Weighted-average shares of frequent inventory excellent:

 

 

 

 

Fundamental

 

 

52,421,296

 

 

 

52,892,054

 

Diluted

 

 

52,421,296

 

 

 

58,194,422

 

About Carlyle Secured Lending, Inc.

CSL is an externally managed specialty finance firm centered on lending to middle-market firms. CSL is managed by Carlyle International Credit score Funding Administration L.L.C., an SEC-registered funding adviser and a completely owned subsidiary of The Carlyle Group Inc. Because it commenced funding operations in Might 2013 by way of June 30, 2022, CSL has invested roughly $7.4 billion in combination principal quantity of debt and fairness investments previous to any subsequent exits or repayments. CSL’s funding goal is to generate present revenue and capital appreciation primarily by way of debt investments in U.S. center market firms. CSL has elected to be regulated as a enterprise growth firm underneath the Funding Firm Act of 1940, as amended.

Net: carlylesecuredlending.com

About Carlyle

Carlyle (“Carlyle,” or the “Adviser”) (NASDAQ: CG) is a world funding agency with deep trade experience that deploys non-public capital throughout three enterprise segments: International Personal Fairness, International Credit score and International Funding Options. With $376 billion of property underneath administration as of June 30, 2022, Carlyle’s function is to speculate properly and create worth on behalf of its traders, portfolio firms and the communities wherein we stay and make investments. Carlyle employs greater than 1,900 folks in 26 places of work throughout 5 continents. Additional data is offered at www.carlyle.com. Comply with Carlyle on Twitter @OneCarlyle.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press launch might include forward-looking statements that contain substantial dangers and uncertainties. You possibly can determine these statements by means of forward-looking terminology equivalent to “anticipates,” “believes,” “expects,” “intends,” “will,” “ought to,” “might,” “plans,” “proceed,” “believes,” “seeks,” “estimates,” “would,” “might,” “targets,” “tasks,” “outlook,” “potential,” “predicts” and variations of those phrases and related expressions to determine forward-looking statements, though not all forward-looking statements embody these phrases. It’s best to learn statements that include these phrases rigorously as a result of they focus on our plans, methods, prospects and expectations regarding our enterprise, working outcomes, monetary situation and different related issues. We imagine that you will need to talk our future expectations to our traders. There could also be occasions sooner or later, nevertheless, that we’re not capable of predict precisely or management. You shouldn’t place undue reliance on these forward-looking statements, which converse solely as of the date on which we make it. Components or occasions that might trigger our precise outcomes to vary, probably materially from our expectations, embody, however are usually not restricted to, the dangers, uncertainties and different components we determine within the sections entitled “Threat Components” and “Cautionary Assertion Concerning Ahead-Trying Statements” in filings we make with the Securities and Change Fee, and it’s not attainable for us to foretell or determine all of them. We undertake no obligation to replace or revise publicly any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as required by legislation.

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