The following is a summary of the Carlyle Secured Lending Inc. (CGBD) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Reported Net Investment Income per share of $0.47 and Adjusted Net Investment Income per share of $0.49.

• Declared a fourth quarter dividend of $0.45 per share, comprising a base dividend of $0.40 and a $0.05 supplemental dividend.

• Net Asset Value per share as of September 30 is slightly down at $16.85.

• Total investment income for Q3 was $56 million, slightly lower due to a decreased average portfolio balance and lower weighted average yields.

• Expenses remained flat at $31 million despite one-time expenses due to a CLO reset.

Business Progress:

• Strong deal activity observed with increasing originations, expecting robust volumes in 2025 due to expanding M&A pipeline.

• Maintained a highly diversified portfolio with 175 investments across more than 25 industries, focusing predominantly on senior secured loans. The average exposure per portfolio company is less than 1%.

• Intends to maintain strategic focus on superior credit performance and portfolio diversification.

• Successfully reset CLO, reducing cost of debt; also achieved investment-grade ratings from Moody's and Fitch, proving financial strength and stability.

• Issued $300 million of unsecured notes at a 6.75% fixed rate swapped to a floating interest rate, providing capital for new investments.

Opportunities:

• Benefits from a collaborative platform at Carlyle, enhancing the company's capability to secure favorable opportunities in mid-market credit deals.

• The merger between CGBD and Carlyle Secured Lending III aims to increase scale and liquidity, improve earnings, reduce operational costs, and enhance NAV per share.

Risks:

• Persistence of increased competition and extensive refinancing activities poses risk for maintaining favorable credit spreads and yields.

• Possible contraction in earnings anticipated due to expected lower base rates, tighter new issue spreads, and portfolio repricing.

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