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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements of Cash and Cash Equivalents, Restricted Cash, Investments, Derivatives, and Unfunded Revolving and Delayed Draw Loan Commitments

The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, derivatives and unfunded revolving and delayed draw loan commitments as of September 30, 2023:

			Fair Value Measurements Using
			Total						Level 1						Level 2						Level 3
Cash and cash equivalents			$	527					$	527					$	—					$	—
Restricted cash			$	78					$	78					$	—					$	—
Investments not measured at net asset value			$	21,924					$	56					$	670					$	21,198
Investments measured at net asset value(1)			5
Total investments			$	21,929
Derivatives:
Foreign currency forward contracts			$	23					$	—					$	23					$	—
Interest rate swap			$	(5)					$	—					$	(5)					$	—
Unfunded revolving and delayed draw loan commitments(2)			$	(30)					$	—					$	—					$	(30)

________________________________________

(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.

The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, derivatives and unfunded revolving and delayed draw loan commitments as of December 31, 2022:

			Fair Value Measurements Using
			Total						Level 1						Level 2						Level 3
Cash and cash equivalents			$	303					$	303					$	—					$	—
Restricted cash			$	34					$	34					$	—					$	—
Investments not measured at net asset value			$	21,775					$	54					$	360					$	21,361
Investments measured at net asset value(1)			5
Total investments			$	21,780
Derivatives - Foreign currency forward contracts			$	(21)					$	—					$	(21)					$	—
Unfunded revolving and delayed draw loan commitments(2)			$	(57)					$	—					$	—					$	(57)

________________________________________

(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.

Schedule of Significant Unobservable Inputs

The following tables summarize the significant unobservable inputs the Company’s investment adviser used to value the majority of the Company’s investments categorized within Level 3 as of September 30, 2023 and December 31, 2022. The tables are not intended to be all-inclusive, but instead to capture the significant unobservable inputs relevant to the investment adviser’s determination of fair values.

As of September 30, 2023

Unobservable Input

Asset Category

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average(1)

First lien senior secured loans

$

9,003

Yield analysis

Market yield

7.4% - 25.3%

12.7%

Second lien senior secured loans

3,561

Yield analysis

Market yield

10.0% - 22.1%

14.6%

Subordinated certificates of the SDLP

1,216

Discounted cash flow analysis

Discount rate

12.6% - 14.9%

13.5%

Senior subordinated loans

997

Yield analysis

Market yield

8.0% - 18.2%

14.7%

Preferred equity

2,343

EV market multiple analysis

EBITDA multiple

4.7x - 40.0x

16.5x

Ivy Hill Asset Management, L.P.(2)

2,020

Discounted cash flow analysis

Discount rate

12.9% - 31.4%

14.6%

Other equity

2,058

EV market multiple analysis

EBITDA multiple

4.8x - 32.7x

14.3x

Total investments

$

21,198

________________________________________

(1)Unobservable inputs were weighted by the relative fair value of the investments.

(2)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.

As of December 31, 2022

Unobservable Input

Asset Category

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average(1)

First lien senior secured loans

$

9,165

Yield analysis

Market yield

7.6% - 26.1%

12.3%

Second lien senior secured loans

3,841

Yield analysis

Market yield

11.0% - 32.4%

14.9%

Subordinated certificates of the SDLP

1,249

Discounted cash flow analysis

Discount rate

12.4% - 14.8%

13.5%

Senior subordinated loans

1,021

Yield analysis

Market yield

8.0% - 16.3%

12.9%

Preferred equity

2,023

EV market multiple analysis

EBITDA multiple

2.6x - 40.6x

15.7x

Ivy Hill Asset Management, L.P.(2)

2,201

Discounted cash flow analysis

Discount rate

12.9% - 25.7%

14.2%

Other equity

1,861

EV market multiple analysis

EBITDA multiple

2.1x - 52.1x

15.6x

Total investments

$

21,361

________________________________________

(1)Unobservable inputs were weighted by the relative fair value of the investments.

(2)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.

Schedule of Changes in Investments that use Level 3 Inputs

The following tables present changes in investments that use Level 3 inputs as of and for the three and nine months ended September 30, 2023:

			As of and For the Three Months Ended September 30, 2023
Balance as of June 30, 2023			$	20,757
Net realized losses			(86)
Net unrealized gains			246
Purchases			1,395
Sales			(136)
Repayments			(1,029)
PIK interest and dividends			74
Net accretion of discount on securities			1
Net transfers in and/or out of Level 3			(24)
Balance as of September 30, 2023			$	21,198

			As of and For the Nine Months Ended September 30, 2023
Balance as of December 31, 2022			$	21,361
Net realized losses			(174)
Net unrealized gains			329
Purchases			3,634
Sales			(993)
Repayments			(3,024)
PIK interest and dividends			255
Net accretion of discount on securities			7
Net transfers in and/or out of Level 3			(197)
Balance as of September 30, 2023			$	21,198

The following tables present changes in investments that use Level 3 inputs as of and for the three and nine months ended September 30, 2022:

			As of and For the Three Months Ended September 30, 2022
Balance as of June 30, 2022			$	21,012
Net realized losses			(22)
Net unrealized losses			(194)
Purchases			2,059
Sales			(1,099)
Repayments			(777)
PIK interest and dividends			71
Net accretion of discount on securities			3
Net transfers in and/or out of Level 3			(76)
Balance as of September 30, 2022			$	20,977

			As of and For the Nine Months Ended September 30, 2022
Balance as of December 31, 2021			$	19,908
Net realized gains			23
Net unrealized losses			(346)
Purchases			6,730
Sales			(3,305)
Repayments			(2,183)
PIK interest and dividends			218
Net accretion of discount on securities			8
Net transfers in and/or out of Level 3			(76)
Balance as of September 30, 2022			$	20,977

Schedule of Carrying and Fair Values of Debt Obligations

The following are the carrying and fair values of the Company’s debt obligations as of September 30, 2023 and December 31, 2022. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings, or market quotes, if available.

			As of
			September 30, 2023												December 31, 2022
			Carrying Value(1)						Fair Value(5)						Carrying Value(1)						Fair Value(5)
Revolving Credit Facility			$	1,392					$	1,392					$	2,246					$	2,246
Revolving Funding Facility			887						887						800						800
SMBC Funding Facility			401						401						451						451
BNP Funding Facility			525						525						245						245
2024 Convertible Notes (principal amount outstanding of $403)			401			(2)			411						399			(2)			428
2023 Notes (principal amount outstanding of $0 and $750, respectively)			—						—						750			(2)			749
2024 Notes (principal amount outstanding of $900)			899			(2)			886						898			(2)			873
March 2025 Notes (principal amount outstanding of $600)			598			(2)			577						597			(2)			570
July 2025 Notes (principal amount outstanding of $1,250)			1,255			(2)			1,171						1,258			(2)			1,157
January 2026 Notes (principal amount outstanding of $1,150)			1,146			(2)			1,075						1,144			(2)			1,059
July 2026 Notes (principal amount outstanding of $1,000)			993			(2)			878						991			(2)			850
January 2027 Notes (principal amount outstanding of $600 and $0, respectively)			587			(2)(3)			601						—						—
June 2027 Notes (principal amount outstanding of $500)			495			(2)			436						494			(2)			427
2028 Notes (principal amount outstanding of $1,250)			1,247			(2)			1,046						1,247			(2)			1,007
2031 Notes (principal amount outstanding of $700)			691			(2)			535						690			(2)			516
Total			$	11,517		(4)			$	10,821					$	12,210		(4)			$	11,378

________________________________________

(1)The Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility carrying values are the same as the principal amounts outstanding.

(2)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance.

(3)The carrying value of the January 2027 Notes as of September 30, 2023 includes a $5 reduction as a result of an effective hedge accounting relationship. See Note 6 for additional information.

(4)Total principal amount of debt outstanding totaled $11,558 and $12,245 as of September 30, 2023 and December 31, 2022, respectively.

(5)The fair value of these debt obligations would be categorized as Level 2 under ASC 820-10.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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