In This Article:
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Net Investment Income: $0.47 per share; adjusted net investment income of $0.49 per share.
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Annualized Yield: Nearly 12% based on a $9.30 NAV.
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Net Asset Value (NAV): $16.85 per share as of September 30.
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Total Investment Income: $56 million for the third quarter.
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Total Expenses: $31 million, flat versus prior quarter.
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Dividends Declared: $0.45 per share for the fourth quarter, including a $0.05 supplemental dividend.
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Dividend Coverage: Base dividend coverage of 118% for the quarter.
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Realized and Unrealized Net Loss: Approximately $5 million for the quarter.
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Non-Accruals: Decreased to 0.6% of total investments at fair value.
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Statutory Leverage: About 1.05 times; net financial leverage about 0.9 times.
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Unsecured Notes Issuance: $300 million with a 6.75% fixed rate, swapped to SOFR plus 3.23% starting August 2025.
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Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Carlyle Secured Lending Inc (NASDAQ:CGBD) reported a strong net investment income of $0.47 per share and adjusted net investment income of $0.49 per share, reflecting a solid financial performance.
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The company declared a total fourth-quarter dividend of $0.45 per share, which includes a $0.05 supplemental dividend, indicating a commitment to returning value to shareholders.
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CGBD's portfolio is highly diversified, with 94% of investments in senior secured loans and an average exposure of less than 1% in any single portfolio company.
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The company successfully exited a position in its MMCF JV at a price higher than its valuation, demonstrating effective portfolio management.
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CGBD received investment-grade ratings from Moody's and Fitch and issued $300 million of unsecured notes, enhancing its financial flexibility and capital structure.
Negative Points
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Total investment income for the third quarter was $56 million, which was modestly lower compared to the prior quarter due to a lower average portfolio balance and lower weighted average yields.
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The company anticipates some contraction in earnings in coming quarters due to expected lower base rates and tighter new issue spreads.
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CGBD reported a total aggregate realized and unrealized net loss of about $5 million for the quarter, primarily due to a decline in value at one of its positions.
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Non-accruals, although decreased, still represent 0.6% of total investments at fair value, indicating some ongoing credit challenges.
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The company faces downward pressure on spreads, a market-wide phenomenon that could impact future profitability.