Carlyle Secured Lending, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Carlyle Secured Lending, Inc. (CGBD) has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Carlyle Secured Lending, Inc. (CGBD) filed a Annual Report (10-K) with the SEC on February 26, 2024. Carlyle Secured Lending, Inc. (CGBD) filed its 2023 Form 10-K on February 26, 2024. The company's fiscal year ends on December 31st. The filing covers the period from January 1, 2023, to December 31, 2023. The company is incorporated in Maryland (MD). The business and mailing address is One Vanderbilt Avenue, Suite 3400, New York, NY 10017.

Why It Matters

For investors and stakeholders tracking Carlyle Secured Lending, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of CGBD's financial health, investment portfolio, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and outlook. The detailed information within the filing, including investment concentrations and debt structures, allows stakeholders to understand the company's strategic positioning and potential vulnerabilities in the current economic climate.

Risk Assessment

Risk Level: medium — Carlyle Secured Lending, Inc. shows moderate risk based on this filing. The filing indicates various concentration risks in investments, including industry and geographic concentrations, which could expose the company to significant losses if those specific sectors or regions underperform.

Analyst Insight

Investors should review the detailed breakdown of CGBD's investment portfolio and associated risks within the 10-K to make informed decisions.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-26 — Filing Date (Date of submission)
• 107 — Public Document Count (Number of documents in the filing)
• 0001544206-24-000012 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• Carlyle Secured Lending, Inc. (company) — Filer name
• CGBD (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-26 (date) — Filing date
• One Vanderbilt Avenue, Suite 3400 (address) — Business address
• New York (location) — Business address city
• MD (location) — State of incorporation
• TCG BDC, Inc. (company) — Former company name

FAQ

Risk Factors

• Investment Type Concentration Risk [medium — market]: The company's investments are concentrated in certain types, including first lien, second lien, equity, and other than securities, which could lead to losses if these types underperform.
• Geographic Concentration Risk [medium — market]: Investments are concentrated in specific geographic regions such as Australia (AU), Canada (CA), Luxembourg (LU), Sweden (SE), Great Britain (GB), and the United States (US), increasing vulnerability to regional economic downturns.
• Industry Concentration Risk [medium — market]: The portfolio has concentrations in industries like Aerospace, Automotive, Food & Beverage, Business Services, and Capital Equipment, making the company susceptible to sector-specific challenges.
• Interest Rate Type Concentration Risk [medium — market]: Investments are concentrated in floating rate and fixed rate debt securities, exposing the company to risks associated with changes in interest rates.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share CGBD The Nasdaq Global Select
• $14.56 — ice of the common stock on that date of $14.56 on The Nasdaq Global Select Market, hel
• $25 million — define as companies with approximately $25 million to $100 million of earnings before inte
• $100 million — anies with approximately $25 million to $100 million of earnings before interest, taxes, dep
• $426.0 billion — t and Global Investment Solutions. With $426.0 billion of assets under management ("AUM") as o
• $187.8 billion — lyle's Global Credit segment, which had $187.8 billion in AUM as of December 31, 2023, advises

Filing Documents

• csl-20231231.htm (10-K) — 9208KB
• csli_20231231x10-kxex42.htm (EX-4.2) — 47KB
• csli_20231231xxex211listof.htm (EX-21.1) — 4KB
• csli_20231231x10-kex231.htm (EX-23.1) — 3KB
• csli_20231231x10-kxex311.htm (EX-31.1) — 10KB
• csli_20231231x10-kxex312.htm (EX-31.2) — 10KB
• csli_20231231x10-kxex321.htm (EX-32.1) — 5KB
• csli_20231231x10-kxex322.htm (EX-32.2) — 5KB
• csli_20231231xxex971clawba.htm (EX-97.1) — 37KB
• csli_20231231xxex991mmcffs.htm (EX-99.1) — 893KB
• csl-20231231_g1.jpg (GRAPHIC) — 125KB
• 0001544206-24-000012.txt (&nbsp;) — 55139KB
• csl-20231231.xsd (EX-101.SCH) — 87KB
• csl-20231231_cal.xml (EX-101.CAL) — 79KB
• csl-20231231_def.xml (EX-101.DEF) — 808KB
• csl-20231231_lab.xml (EX-101.LAB) — 924KB
• csl-20231231_pre.xml (EX-101.PRE) — 864KB
• csl-20231231_htm.xml (XML) — 9329KB

Risk Factors

Item 1A. Risk Factors 24

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 54

Cybe rsecurity

Item 1C. Cybe rsecurity 54

Properties

Item 2. Properties 55

Legal Proceedings

Item 3. Legal Proceedings 55

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 55 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 56

[Reserved]

Item 6. [Reserved] 58

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 58

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 77

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 79

Changes and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes and Disagreements with Accountants on Accounting and Financial Disclosure 162

Controls and Procedures

Item 9A. Controls and Procedures 162

Other Information

Item 9B. Other Information 162

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 163 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 164

Executive Compensation

Item 11. Executive Compensation 164

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 164

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 164

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 164 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 165

Form 10-K Summary

Item 16. Form 10-K Summary 168 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS We have included or incorporated by reference in this Form 10-K, and from time to time our management may make, "forward-looking statements". These forward-looking statements are not historical facts, but instead relate to future events or the future performance or financial condition of Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CSL" or the "Company"). These statements are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. The forward-looking statements contained in this Form 10-K and the documents incorporated by reference herein involve a number of risks and uncertainties, including statements concerning: our, or our portfolio companies', future business, operations, operating results or prospects, including our and their ability to achieve our respective objectives; the return or impact of current and future investments; the general economy and its impact on the industries in which we invest; the impact of any protracted decline in the liquidity of credit markets on our business; the impact of fluctuations in interest rates on our business; the valuation of our investments in portfolio companies, particularly those having no liquid trading market; the impact of supply chain constraints on our portfolio companies and the global economy; the current inflationary environment, and its impact on our portfolio companies and on the industries in which we invest; the impact on our business of changes in laws, policies or regulations (including the interpretation thereof) affecting our operations or the operations of our portfolio companies; our ability to recover unrealized losses; market conditions and our ability to access alternative debt markets and additional debt and equity capi

Business

Item 1. Business Carlyle Secured Lending, Inc., a Maryland corporation, is a specialty finance company that is a closed-end, externally managed, non-diversified management investment company. We have elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the "Investment Company Act" or the "1940 Act"). For U.S. federal income tax purposes, we have elected to be treated as a RIC under Subchapter M of the Code. We were formed in February 2012, commenced investment operations in May 2013 and began trading on the Nasdaq Global Select Market, under the symbol "CGBD," upon completion of our initial public offering in June 2017. Our 8.20% notes due 2028 (the "2028 Notes") began trading on the Nasdaq Global Select Market, under the symbol "CGBDL" in November 2023. Our principal executive offices are located at One Vanderbilt Avenue, Suite 3400, New York, New York 10017. Our investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through assembling a portfolio of secured debt investments in U.S. middle market companies. Our core investment strategy focuses on lending to U.S. middle market companies, which we define as companies with approximately $25 million to $100 million of earnings before interest, taxes, depreciation and amortization ("EBITDA"), supported by financial sponsors. This core strategy is opportunistically supplemented with differentiated and complementary lending and investing strategies, which take advantage of the broad capabilities of Carlyle's Global Credit platform while offering risk-diversifying portfolio benefits. We seek to achieve our investment objective primarily through direct origination of secured debt instruments, including first lien senior secured loans (which may include stand-alone first lien loans, first lien/last out loans and "unitranche" loans) and second lien senior secured loans (colle

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View this 10-K filing on SEC EDGAR