Carlyle Secured Lending, Inc. has successfully completed a significant refinancing of its term debt, amounting to $410 million, as reported on Tuesday. This refinancing, which took place on July 2, 2024, is referred to as the 2015-1R Refinancing and is a form of collateralized loan obligation (CLO) that is secured by a portfolio of middle market loans and other assets.
The newly issued CLO debt, structured by Carlyle Direct Lending CLO 2015-1R LLC, a Delaware limited liability company and subsidiary of Carlyle Secured Lending, includes several classes of notes and loans. These range from AAA-rated notes bearing interest at SOFR plus 1.80% to BBB- rated notes at SOFR plus 3.75%. The maturity date for this CLO debt is set for July 2036.
The proceeds from the refinancing were used to redeem the outstanding principal of notes issued on the previous closing date, as well as to cover the expenses incurred during the refinancing process. Additionally, the company's subsidiary issued additional Preferred Interests worth approximately $13.5 million to Carlyle Secured Lending on the refinancing date.
Carlyle Global Credit Investment Management L.L.C. will continue its role as the collateral manager for the Issuer under the terms of the Collateral Management Agreement that was amended on the refinancing date.
The CLO debt has not been registered under the Securities Act of 1933 or any state securities laws and cannot be offered or sold in the United States without registration or an applicable exemption from such requirements.
This financial maneuver reflects Carlyle Secured Lending’s ongoing efforts to manage its debt portfolio and is based on information disclosed in a recent SEC filing.
In other recent news, Carlyle Secured Lending (CSL (OTC:CSLLY)) reported a net asset value of $17.07 per share, along with a net investment income of $0.54 per share in its first quarter 2024 earnings call. The company's total investment income for the quarter was $62 million, and net investment income was $28 million. These are recent developments that reflect the company's disciplined credit selection and conservative portfolio management, even in a dynamic market environment.
CSL is actively participating in the market, with CEO Justin Plouffe highlighting an increase in syndicated loan market activity and a rise in origination volume. The company is also preparing for long-term capital structure positioning through a Collateralized Loan Obligation (CLO) reset and potential debt offerings. Despite challenges in the market, such as tightened pricing, CSL is carefully selecting investment opportunities.
In addition to these developments, CSL has increased its dividends and maintains a strong pipeline for investments. The company is also in talks with bankers about a potential index-eligible deal in the future. As per the management, the company aims to maintain consistent income and solid credit performance, indicating a positive outlook for its financial health.
InvestingPro Insights
Following Carlyle Secured Lending's strategic refinancing move, current and potential investors may find additional context in the company's financial health and market performance through recent data and insights.
According to InvestingPro, Carlyle Secured Lending (CGBD) has a market capitalization of $915.32 million and a P/E ratio of 10.2, which may appeal to value-oriented investors seeking reasonably priced earnings. The company's revenue for the last twelve months as of Q1 2024 stands at $245.26 million, demonstrating a solid year-over-year growth of 12.44%. This growth is indicative of the company's ability to expand its operations effectively.
Investors may also be encouraged by the company's dividend profile, as Carlyle Secured Lending has raised its dividend for three consecutive years and offers a significant dividend yield of 10.17%. This could be particularly attractive for income-focused investors.
Furthermore, the company's stock has been profitable over the last five years, providing a strong return, which is complemented by its current trading position near its 52-week high, at 98.15% of the peak value.
For those considering a deeper investment analysis, there are additional InvestingPro Tips available that could provide more insights into Carlyle Secured Lending's financial nuances. For instance, while some analysts have revised their earnings downwards for the upcoming period, the company's liquid assets exceed short-term obligations, suggesting a stable liquidity position.
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