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About Carlyle Secured Lending, Inc. (CGBD)
Carlyle Secured Lending, Inc. (CGBD) is a specialized finance company that operates as a closed-end, externally managed, non-diversified management investment company. It is regulated as a Business Development Company (BDC) under the Investment Company Act of 1940, a structure that emphasizes transparency and investor protections. CGBD's primary focus is on providing directly originated financing solutions, with a particular emphasis on senior secured loans to middle-market companies in the United States. These loans are typically used by companies to support growth initiatives, acquisitions, or refinancing needs, offering CGBD a stable income stream and potential for capital appreciation.
Core Business Model and Revenue Streams
CGBD's business model centers on generating current income and long-term capital appreciation through debt investments. By focusing on senior secured loans, the company prioritizes investments that are higher in the capital structure, thereby reducing risk exposure. The company also diversifies its portfolio across industries to mitigate sector-specific risks. Revenue is primarily derived from interest income on loans, supplemented by potential capital gains from equity investments and other financial instruments. As part of its regulated BDC structure, CGBD distributes a significant portion of its taxable income to shareholders in the form of dividends, making it an attractive option for income-focused investors.
Market Position and Competitive Landscape
CGBD operates within the highly specialized middle-market lending segment, targeting companies that are often underserved by traditional banks. This niche market requires deep expertise in credit analysis and risk management. The company benefits from its affiliation with The Carlyle Group, a globally recognized investment firm with extensive resources and a robust deal pipeline. This affiliation provides CGBD with a competitive edge, enabling it to access exclusive investment opportunities and leverage Carlyle's industry expertise. Key competitors in this space include other BDCs and private credit funds, but CGBD's focus on senior secured lending and its connection to Carlyle set it apart.
Operational Highlights and Investment Strategy
CGBD employs a disciplined investment strategy that emphasizes risk-adjusted returns. The company's portfolio is primarily composed of debt investments, with a focus on minimizing default risk and maximizing recovery rates. By targeting middle-market companies, CGBD addresses a critical financing gap, supporting businesses that are too large for small business loans but too small to access traditional capital markets. The company's externally managed structure allows it to leverage the expertise of Carlyle Global Credit Investment Management (CGCIM), an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group. This management arrangement ensures access to seasoned professionals with extensive experience in credit markets.
Regulatory and Structural Considerations
As a BDC, CGBD is subject to specific regulatory requirements, including maintaining a minimum asset coverage ratio and distributing at least 90% of its taxable income to shareholders. These regulations ensure a high level of transparency and investor protection. Additionally, the company's closed-end structure provides stability in its capital base, allowing for long-term investment strategies without the need for frequent capital raising.
Key Differentiators
- Focus on Senior Secured Lending: Prioritizing investments higher in the capital structure to reduce risk.
- Affiliation with The Carlyle Group: Access to extensive resources, deal flow, and industry expertise.
- Regulated BDC Structure: Emphasis on transparency, investor protections, and regular income distributions.
Conclusion
Carlyle Secured Lending, Inc. combines the stability and income potential of senior secured lending with the strategic advantages of its affiliation with The Carlyle Group. Its disciplined investment approach, robust risk management practices, and focus on underserved middle-market companies position it as a significant player in the specialty finance sector. By adhering to its core principles and leveraging its unique strengths, CGBD continues to deliver value to its shareholders while supporting the growth and success of middle-market businesses.
Carlyle Secured Lending (NASDAQ: CGBD) reported strong Q4 and full-year 2024 financial results. The company achieved net investment income of $0.47 per share in Q4 and $2.00 per share for full-year 2024. The total fair value of investments increased to $1.8 billion as of December 31, 2024.
Net asset value (NAV) per common share slightly decreased by 0.3% to $16.80 from $16.85 in Q4. The Board declared a Q1 2025 dividend of $0.45 per share, consisting of a $0.40 base quarterly dividend plus a $0.05 supplemental dividend, payable on April 17, 2025.
The company's performance remained strong despite tightening market spreads and continued repricing activity. Since its inception in May 2013, CGBD has invested approximately $8.7 billion in aggregate principal amount of debt and equity investments.
Carlyle Secured Lending (NASDAQ: CGBD) has announced it will hold a conference call on Wednesday, February 26, 2025 at 11:00 a.m. EST to discuss its financial results for the fourth quarter and full year ended December 31, 2024. The company will release its quarterly results through a news release on Tuesday, February 25, 2025. The conference call will be accessible through a public webcast on the company's website at carlylesecuredlending.com, where it will also be available for replay after the event.
Carlyle Secured Lending (NASDAQ: CGBD) reported its Q3 2024 financial results, delivering net investment income of $0.47 per share and adjusted net investment income of $0.49 per share. The company's net asset value per share decreased 0.6% to $16.85 from $16.95 in the previous quarter. Total investment fair value stood at $1.7 billion. The Board declared a base quarterly dividend of $0.40 plus a supplemental dividend of $0.05 per share, payable on January 17, 2025. The company completed a refinancing of its CLO 2015-1R notes during the quarter.
Carlyle Secured Lending (NASDAQ: CGBD) has announced its plans to release financial results for the third quarter ended September 30, 2024. The company will issue a news release containing the quarterly results on Tuesday, November 5, 2024. Following this, Carlyle Secured Lending will host a conference call at 11:00 a.m. EST on Wednesday, November 6, 2024 to discuss these financial results.
Investors and interested parties can access the conference call via a public webcast through a link available on the company's website at carlylesecuredlending.com. Additionally, a recording of the call will be made available on the website shortly after its completion.
Carlyle Secured Lending, Inc. (Nasdaq: CGBD) has priced a $300 million public offering of 6.750% unsecured notes due 2030. The notes will mature on February 18, 2030, with an option for early redemption. The offering is expected to close on October 18, 2024. The company plans to use the net proceeds to repay outstanding debt, including approximately $190 million in maturing notes, fund new investments, and for general corporate purposes.
Several major financial institutions are acting as joint book-running managers and co-managers for this offering. The company has filed a shelf registration statement with the SEC, and investors are advised to carefully review the pricing term sheet, preliminary prospectus supplement, and accompanying prospectus before investing.
Carlyle Secured Lending, Inc. (NASDAQ: CGBD) has announced a merger with Carlyle Secured Lending III (CSL III), creating a combined entity with over $2.5 billion in total assets and $1.2 billion in net assets. The stock-for-stock transaction aims to provide increased scale, liquidity, and efficiency for investors. Key benefits include:
1. Elimination of CGBD's preferred stock dilution overhang
2. Potential for improved debt market access and reduced costs
3. Continuation of successful lending strategy with greater scale
4. Adviser support covering merger-related expenses up to $5 million
The merger is expected to close in Q1 2025, subject to regulatory and shareholder approvals.
Carlyle Secured Lending, Inc. (NASDAQ: CGBD) has announced its Q2 2024 financial results and a significant merger agreement. Key highlights include:
1. Net investment income of $0.51 per common share for Q2 2024
2. Net asset value per common share decreased by 0.7% to $16.95
3. Total fair value of investments at $1.7 billion as of June 30, 2024
4. Declared Q3 2024 dividends of $0.47 per common share ($0.40 base + $0.07 supplemental)
5. Entered into a merger agreement with Carlyle Secured Lending III, expected to close in Q1 2025
The company reported strong performance in Q2 2024, capitalizing on attractive origination opportunities in a competitive market. The merger is subject to customary closing conditions and involves Carlyle exchanging its CGBD convertible preferred stock for common shares.
Carlyle Secured Lending, Inc. (NASDAQ: CGBD) has announced its plans to release financial results for the second quarter ended June 30, 2024. The company will host a conference call on Monday, August 5, 2024, at 10:00 a.m. EST to discuss these results. A news release containing the quarterly results will be issued on the same day. Investors and interested parties can access the conference call via a public webcast available on Carlyle Secured Lending's website at carlylesecuredlending.com. The webcast recording will also be made available on the website shortly after the call concludes.
Carlyle Secured Lending, Inc. reported financial results for the first quarter ended March 31, 2024, with net investment income of $0.54 per common share and a 0.5% increase in net asset value. The company declared dividends of $0.47 per common share for the second quarter of 2024. CSL remains focused on its middle market lending strategy and aims to drive performance through disciplined credit selection and portfolio management.
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