XML 53 R34.htm IDEA: XBRL DOCUMENT v3.25.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt Information
As of December 31, 2024 and December 31, 2023, the Company had the following available and outstanding debt:
(in thousands)December 31, 2024December 31, 2023
Total AvailablePrincipal
Outstanding
Carrying Value(1)
Total AvailablePrincipal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$350,000 $279,000 $271,371 $175,000 $175,000 $170,323 
July 2024 Notes— — — 105,000 105,000 104,828 
February 2025 Notes50,000 50,000 49,981 50,000 50,000 49,866 
June 2025 Notes70,000 70,000 69,919 70,000 70,000 69,757 
June 2025 3-Year Notes50,000 50,000 49,926 50,000 50,000 49,771 
March 2026 A Notes50,000 50,000 49,889 50,000 50,000 49,795 
March 2026 B Notes50,000 50,000 49,880 50,000 50,000 49,776 
September 2026 Notes325,000 325,000 323,321 325,000 325,000 322,339 
January 2027 Notes350,000 350,000 347,265 350,000 350,000 345,935 
2031 Asset-Backed Notes119,475 119,475 118,769 150,000 150,000 148,544 
2033 Notes40,000 40,000 39,043 40,000 40,000 38,935 
MUFG Bank Facility(2)
400,000 116,000 116,000 400,000 61,000 61,000 
SMBC Facility(2)(3)(5)
475,000 283,790 283,591 400,000 94,000 94,000 
Total$2,329,475 $1,783,265 $1,768,955 $2,215,000 $1,570,000 $1,554,869 
(1)Except for the SMBC Facility and MUFG Bank Facility, all carrying values represent the principal amount outstanding less the remaining unamortized debt issuance costs and unaccreted premium or discount, if any, associated with the debt as of the balance sheet date.
(2)Availability subject to the Company meeting the borrowing base requirements.
(3)“Total Available” includes $175.0 million of available commitment through the letter of credit facility as of December 31, 2024 and December 31, 2023.
(4)As of December 31, 2024, the total available debt under the SBA Debentures was $350.0 million, of which $175.0 million was available to HC IV and $175.0 million was available to SBIC V. As of December 31, 2023, the total available debt under the SBA debentures was $175.0 million, all of which was available to HC IV.
(5)In November 2024, the Company amended its SMBC Facility and converted a portion of the existing revolver facility into a term loan facility in connection therewith. As of December 31, 2024, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million respectively.
The overall weighted average interest cost, cost of debt and debt outstanding for the Company for the years ended December 31, 2024 and 2023 were as follows:
Year Ended December 31,
(in thousands)
20242023
Weighted average interest cost
4.5 %4.2 %
Weighted average cost of debt(1)
5.0 %4.8 %
Weighted average debt outstanding
1,709,469 1,607,278 
(1)Cost of debt includes interest and fees.
The Company held the following SBA debentures outstanding principal balances as of December 31, 2024 and December 31, 2023:
(in thousands)
Issuance/Pooling Date
Maturity Date
Interest Rate(1)
December 31, 2024December 31, 2023
March 26, 2021September 1, 20311.58%$37,500 $37,500 
June 25, 2021September 1, 20311.58%16,200 16,200 
July 28, 2021September 1, 20311.58%5,400 5,400 
August 20, 2021September 1, 20311.58%5,400 5,400 
October 21, 2021March 1, 20323.21%14,000 14,000 
November 1, 2021March 1, 20323.21%21,000 21,000 
November 15, 2021March 1, 20323.21%5,200 5,200 
November 30, 2021March 1, 20323.21%20,800 20,800 
December 20, 2021March 1, 20323.21%10,000 10,000 
December 23, 2021March 1, 20323.21%10,000 10,000 
December 28, 2021March 1, 20323.21%5,000 5,000 
January 14, 2022March 1, 20323.21%4,500 4,500 
January 21, 2022March 1, 20323.21%20,000 20,000 
November 8, 2024(2)
March 1, 20355.16%30,000 — 
December 6, 2024(2)
March 1, 20355.12%33,600 — 
December 12, 2024(2)
March 1, 20355.05%8,400 — 
December 20, 2024(2)
March 1, 20355.01%32,000 — 
Total SBA Debentures$279,000 $175,000 
(1)Interest rates are determined initially at issuance and reset to a fixed rate at the debentures pooling date. The rates are inclusive of annual SBA charges.
(2)As of December 31, 2024, $104.0 million of drawn SBA Debentures are scheduled to be pooled on March 26, 2025. The interest rate disclosed is the current effective interim interest rate.
Schedule of Debt Issuance Costs, Net of Accumulated Amortization
Debt issuance costs, net of accumulated amortization, were as follows as of December 31, 2024 and December 31, 2023:
(in thousands)December 31, 2024December 31, 2023
SBA Debentures$7,629 $4,677 
July 2024 Notes— 172 
February 2025 Notes19 134 
June 2025 Notes81 243 
June 2025 3-Year Notes74 229 
March 2026 A Notes111 205 
March 2026 B Notes120 224 
September 2026 Notes1,679 2,661 
January 2027 Notes2,735 4,065 
2031 Asset-Backed Notes706 1,456 
2033 Notes957 1,065 
MUFG Bank Facility(1)
1,770 3,540 
SMBC Facility(1)(2)
2,693 1,775 
Total$18,574 $20,446 
(1)The MUFG Bank Facility and SMBC Facility are line-of-credit arrangements, the debt issuance costs associated with these instruments are included within Other assets on the Consolidated Statements of Assets and Liabilities in accordance with ASC Subtopic 835-30.
(2)As part of the November 2024 amendment of the SMBC Facility, the existing revolver facility was split into a revolver facility and a term loan facility. The debt issuance costs, net of accumulated amortization of the revolver facility is $2.5 million and the term loan is $0.2 million.
Schedules of Components of Interest Expense, Related Fees, Losses on Debt Extinguishment and Cash Paid for Interest Expense for Debt
For the year ended December 31, 2024, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
 (in thousands)
Year ended December 31, 2024
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$4,993 $621 $— $5,614 $4,575 
July 2024 Notes2,706 172 — 2,878 5,008 
February 2025 Notes2,140 115 — 2,255 2,140 
June 2025 Notes3,017 162 — 3,179 3,016 
June 2025 3-Year Notes3,000 155 — 3,155 3,000 
March 2026 A Notes2,250 95 — 2,345 2,250 
March 2026 B Notes2,275 103 — 2,378 2,276 
September 2026 Notes8,697 815 — 9,512 8,531 
January 2027 Notes12,316 828 — 13,144 11,812 
2031 Asset-Backed Notes(2)
7,464 394 — 7,858 7,321 
2033 Notes2,500 108 — 2,608 2,500 
MUFG Bank Facility11,931 1,770 1,949 15,650 11,866 
SMBC Facility13,862 735 785 15,382 13,555 
Total$77,151 $6,073 $2,734 $85,958 $77,850 
(1)Interest expense includes amortization of original issue discounts for the year ended December 31, 2024, of $166 thousand, $503 thousand, and $185 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the year ended December 31, 2024, we have recognized $171 thousand of loss on debt extinguishment for 2031 Asset-Backed Notes.
For the year ended December 31, 2023, the components of interest expense, related fees, and cash paid for interest expense for debt were as follows:
 (in thousands)
Year ended December 31, 2023
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$4,562 $585 $— $5,147 $4,562 
July 2024 Notes5,009 295 — 5,304 5,009 
February 2025 Notes2,140 115 — 2,255 2,140 
June 2025 Notes3,017 162 — 3,179 3,017 
June 2025 3-Year Notes3,000 155 — 3,155 3,000 
March 2026 A Notes2,250 95 — 2,345 2,250 
March 2026 B Notes2,275 103 — 2,378 2,276 
September 2026 Notes8,697 815 — 9,512 8,532 
January 2027 Notes12,316 828 — 13,144 11,812 
2031 Asset-Backed Notes7,613 399 — 8,012 7,425 
2033 Notes2,500 108 — 2,608 2,500 
MUFG Bank Facility(2)
5,583 1,770 2,782 10,135 5,948 
SMBC Facility8,658 693 940 10,291 8,678 
Total$67,620 $6,123 $3,722 $77,465 $67,149 
(1)Interest expense includes amortization of original issue discounts for the year ended December 31, 2023, of $166 thousand, $503 thousand, $188 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively.
(2)The June 2022 amendment of the MUFG Bank Facility replaced Union Bank Facility via an amendment as the lead lender.
For the year ended December 31, 2022, the components of interest expense, related fees, and cash paid for interest expense for debt were as follows:
 (in thousands)
Year ended December 31, 2022
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$3,997 $581 $— $4,578 $2,835 
2022 Notes(3)
1,011 50 — 1,061 2,293 
July 2024 Notes5,009 295 — 5,304 5,009 
February 2025 Notes2,140 115 — 2,255 2,140 
June 2025 Notes3,017 162 — 3,179 3,017 
June 2025 3-Year Notes1,567 81 — 1,648 1,500 
March 2026 A Notes2,250 95 — 2,345 2,250 
March 2026 B Notes2,275 103 — 2,378 2,275 
September 2026 Notes8,698 815 — 9,513 8,531 
January 2027 Notes11,630 782 — 12,412 5,906 
2031 Asset-Backed Notes3,975 209 — 4,184 3,671 
2033 Notes2,500 108 — 2,608 2,500 
2022 Convertible Notes(3)
923 148 — 1,071 5,004 
MUFG Bank Facility(2)
4,548 941 2,285 7,774 4,097 
SMBC Facility1,209 315 513 2,037 1,047 
Total$54,749 $4,800 $2,798 $62,347 $52,075 
(1)Interest expense includes amortization of original issue discounts for the year ended December 31, 2022, of $23 thousand, $112 thousand, $166 thousand, $475 thousand, and $98 thousand for the 2022 Notes, 2022 Convertible Notes, September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively.
(2)The June 2022 amendment of the MUFG Bank Facility replaced Union Bank Facility via an amendment as the lead lender.
(3)The Company fully redeemed the 2022 Notes on February 22, 2022 and fully repaid the 2022 Convertible Notes on February 1, 2022.
Summary of SBIC Investments
The following table shows the fair value of the Company’s portfolio of investments by asset class as of December 31, 2024 and December 31, 2023:
(in thousands)December 31, 2024December 31, 2023
Investments at
Fair Value		Percentage of
Total Portfolio 		Investments at
Fair Value		Percentage of
Total Portfolio
Senior Secured Debt$3,419,044 93.4 %$2,987,577 92.0 %
Unsecured Debt75,557 2.1 %69,722 2.2 %
Preferred Stock53,802 1.5 %53,038 1.6 %
Common Stock74,855 2.0 %99,132 3.1 %
Warrants30,500 0.8 %33,969 1.0 %
Investment Funds & Vehicles6,220 0.2 %4,608 0.1 %
Total$3,659,978 100.0 %$3,248,046 100.0 %
A summary of the Company’s investment portfolio, at value, by geographic location as of December 31, 2024 and December 31, 2023 is shown as follows:
(in thousands)December 31, 2024December 31, 2023
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
United States$3,288,737 89.9 %$2,861,615 88.1 %
United Kingdom142,183 3.9 %222,136 6.9 %
Israel88,066 2.4 %52,868 1.6 %
Netherlands59,157 1.6 %89,995 2.8 %
Germany49,255 1.3 %1,144 0.0 %
Canada16,251 0.4 %15,730 0.5 %
Denmark9,284 0.3 %4,173 0.1 %
Ireland4,649 0.1 %— 0.0 %
Singapore1,996 0.1 %— 0.0 %
Other400 0.0 %385 0.0 %
Total$3,659,978 100.0 %$3,248,046 100.0 %
The following table shows the fair value of the Company’s portfolio by industry sector as of December 31, 2024 and December 31, 2023:
(in thousands)December 31, 2024December 31, 2023
 Investments at
Fair Value		Percentage of
Total Portfolio 		Investments at
Fair Value		Percentage of
Total Portfolio
Software$1,081,100 29.5 %$764,985 23.6 %
Drug Discovery & Development1,080,390 29.5 %1,257,699 38.7 %
Healthcare Services, Other610,184 16.7 %300,079 9.3 %
Consumer & Business Services372,641 10.2 %525,973 16.2 %
Electronics & Computer Hardware162,888 4.5 %20,324 0.6 %
Diversified Financial Services113,491 3.1 %114,722 3.5 %
Medical Devices & Equipment74,962 2.0 %22,096 0.7 %
Space Technologies45,700 1.2 %— 0.0 %
Biotechnology Tools35,434 1.0 %48,381 1.5 %
Communications & Networking27,700 0.8 %29,400 0.9 %
Sustainable and Renewable Technology27,696 0.8 %9,581 0.3 %
Information Services24,356 0.7 %126,605 3.9 %
Consumer & Business Products1,497 0.0 %2,589 0.1 %
Manufacturing Technology1,162 0.0 %11,006 0.3 %
Semiconductors704 0.0 %1,205 0.0 %
Media/Content/Info63 0.0 %12,704 0.4 %
Drug Delivery10 0.0 %21 0.0 %
Surgical Devices— 0.0 %676 0.0 %
Total$3,659,978 100.0 %$3,248,046 100.0 %
The following table summarizes information related to our SBICs as of December 31, 2024 and December 31, 2023.
December 31, 2024December 31, 2023
DescriptionHC IVSBIC VHC IVSBIC V
Number of investments held331125— 
Fair value of investments (in millions)$377.7$155.6$331.5$— 
Percentage of fair value of investments based on the Company's total investment portfolio10.3 %4.3 %10.2 %0.0 %
Tangible assets (in millions)$382.9$157.8$341.8$— 
Percentage of tangible assets based on the Company's total assets10.0 %4.1 %10.0 %0.0 %