In This Article:
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Net Investment Income: $0.47 per share, annualized yield over 11% based on 12/31 NAV.
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Dividend: Total fourth quarter dividend of $0.45 per share, including a $0.40 base dividend and a $0.05 supplemental dividend.
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Net Asset Value (NAV): $16.80 per share as of December 31, compared to $16.85 per share as of September 30.
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Total Investment Income: $56 million for the fourth quarter.
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Total Expenses: $31 million, flat versus prior quarter.
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Portfolio Growth: Increased by about $100 million in the fourth quarter.
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Credit Quality: Nonaccruals at 0.6% of total investments at fair value.
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Leverage: Statutory average leverage about 1.2 times, within target range of 0.9 to 1.25 times.
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Investment Portfolio: 189 investments in 135 companies across more than 25 industries.
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Median Portfolio EBITDA: $88 million.
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Release Date: February 26, 2025
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) generated a net investment income of $0.47 per share, representing an annualized yield of over 11%.
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The company declared a total fourth quarter dividend of $0.45 per share, which includes a supplemental dividend, reflecting a strong dividend policy.
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CGBD achieved record highs for deployment in both the fourth quarter and the full year of 2024, growing its portfolio by about $100 million.
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The company maintained a high-quality portfolio with 94% of 2024 originations in first lien investments and an average loan-to-value under 40%.
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CGBD obtained investment-grade ratings from both Fitch and Moody's, allowing it to issue its first-ever institutional bond deal, enhancing financial flexibility.
Negative Points
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The net asset value (NAV) per share slightly decreased from $16.85 as of September 30 to $16.80 as of December 31.
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Total aggregate realized and unrealized net loss was about $4 million for the quarter, with markdowns on certain investments.
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Nonaccruals remained flat at 0.6% of total investments at fair value, indicating some ongoing credit challenges.
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The restructuring of Jeg's Automotive remained on nonaccrual status, highlighting ongoing issues with specific investments.
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The weighted average yield on debt investments showed a wider gap compared to income-producing investments, indicating potential yield compression.
Q & A Highlights
Q: Just a question on the JV. I think Tom, you said it will free the unqualified asset bucket capacity. Are you suggesting you might do something else there? A: Thomas Hennigan, CFO: Regarding the two JVs, MMCF II is a static vehicle, and taking those assets back on balance sheet reduces the non-qualifying bucket. For JV one, we plan to ramp up the facility materially in the future. We anticipate a return of capital from both JVs in the first quarter. We have flexibility for future strategic partnerships, but nothing imminent right now.