Carlyle Secured Lending, Inc. Announces Financial Results For First Quarter Ended March 31, 2025, Declares Second Quarter 2025 Dividend of $0.40 Per Common Share
Rhea-AI Summary
Positive
- Successful completion of merger with CSL III, increasing total investment fair value to $2.2 billion
- Stable quarterly dividend maintained at $0.40 per share
- Capital structure optimization through preferred stock exchange, eliminating dilutive overhang
- Increased commitments on credit facility
- Net investment income of $0.40 per share fully covers the dividend
Negative
- Net asset value per share declined 1.0% quarter-over-quarter to $16.63
- Market uncertainty due to tariff and trade-driven factors
Insights
CGBD maintained stable performance with strategic capital restructuring while completing CSL III merger; dividend fully covered despite slight NAV decline.
Carlyle Secured Lending delivered a steady quarter with $0.40 net investment income per share, precisely matching their declared dividend. This represents a 100% payout ratio - disciplined but without excess coverage. The company's NAV experienced a modest 1.0% decrease to $16.63, which is relatively minor considering the significant corporate actions executed during the quarter.
The completed merger with Carlyle Secured Lending III on March 27th materially expanded the portfolio to $2.2 billion in fair value. Since this transaction occurred at quarter-end, these results primarily reflect pre-merger operations, making next quarter more indicative of the combined entity's performance potential.
Two capital structure enhancements deserve particular attention: first, CGBD increased commitments on their credit facility, providing greater financial flexibility for future opportunities. Second, they exchanged preferred stock for common stock at NAV - a shareholder-friendly move that eliminates what management described as "a substantial dilutive overhang" by removing the senior claim on assets and income that preferred shareholders previously held.
Management's acknowledgment of "tariff- and trade-driven uncertainty" shows appropriate risk awareness, though they expressed confidence in their portfolio construction. Being managed by a Carlyle Group subsidiary provides significant advantages in deal sourcing and institutional backing - a competitive edge in middle-market lending.
The negligible $0.01 difference between GAAP and adjusted NII indicates minimal accounting noise from the quarter's transactions, suggesting a clean merger execution. Overall, CGBD demonstrates financial stability while taking strategic steps to optimize its structure for future performance.
NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “CGBD” or the “Company”) (NASDAQ: CGBD) today announced its financial results for its first quarter ended March 31, 2025. Justin Plouffe, CGBD’s Chief Executive Officer, said, “Following successful completion of the merger with CSL III at the end of March, CGBD remains focused on driving stable income, consistent credit performance, and disciplined execution of our strategy.
Complementing our conservative investing approach, we continue to optimize the capital structure of CGBD, increasing total commitments on our credit facility and exchanging the preferred stock for common stock in the first quarter. Despite tariff- and trade-driven uncertainty, we believe the quality of our existing portfolio positions us to deliver attractive returns in this environment while maintaining a dynamic approach to origination in response to market volatility.”
Net investment income for the first quarter of 2025 was
Net asset value per common share decreased by
Dividends
On April 29, 2025, the Board of Directors declared a base quarterly common dividend of
On March 12, 2025, the Company declared a cash dividend on the Preferred Stock for the period from January 1, 2025 to March 26, 2025 in the amount of
Conference Call
The Company will host a conference call at 11:00 a.m. Eastern Time on Wednesday, May 7, 2025 to discuss these quarterly financial results. The conference call will be available via public webcast via a link on our website and will also be available on our website soon after the call’s completion.
Non-GAAP Financial Measures
On a supplemental basis, we are disclosing Adjusted Net Investment Income Per Common Share, which is calculated and presented on a basis other than in accordance with GAAP (“non-GAAP”). We use this non-GAAP financial measure internally to analyze and evaluate financial results and performance, and we believe this non-GAAP financial measures is useful to investors as an additional tool to evaluate our ongoing results and trends and to review our performance without giving effect to (i) the amortization/accretion resulting from the new cost basis of the investments acquired and accounted for under the acquisition method of accounting in accordance with ASC 805 and (ii) the purchase one-time or non-recurring investment income and expense events, including the effects on incentive fees. In addition, Company’s management uses the non-GAAP financial measure described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not had similar one-time or non-recurring events. The presentation of this non-GAAP measure is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.
For the first quarter of 2025, the adjustment to net investment income per common share to determine Adjusted Net Investment Income Per Common Share represents the difference between GAAP amortization under the asset acquisition method of accounting in accordance with ASC 850 and management’s non-GAAP measure of amortization related to assets acquired in connection with the CSL III merger on March 27, 2025, and the remaining interest in Middle Market Credit Fund II on February 11, 2025. This adjustment reflects management’s view of the economic yield on the acquired assets and is consistent with our internal evaluation of performance.
There were no other one-time or non-recurring events considered as part of the non-GAAP measure for the first quarter of 2025.
Carlyle Secured Lending, Inc.
CGBD is an externally managed specialty finance company focused on lending to middle-market companies. CGBD is managed by Carlyle Global Credit Investment Management L.L.C., an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. Since it commenced investment operations in May 2013 through March 31, 2025, CGBD has invested approximately
Web: carlylesecuredlending.com
About Carlyle
Carlyle (“Carlyle,” or the “Adviser”) (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With
Contacts:
| Investors: | Media: | |
| Nishil Mehta | Kristen Ashton | |
| +1-212-813-4928 | +1-212-813-4763 | |
| publicinvestor@carlylesecuredlending.com | kristen.ashton@carlyle.com |
FAQ
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