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Debt (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Available and Outstanding Debt
As of March 31, 2025 and December 31, 2024, the Company had the following available and outstanding debt:
(in thousands)March 31, 2025December 31, 2024
 Total AvailablePrincipal
Outstanding
Carrying Value(1)
Total AvailablePrincipal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$350,000 $295,000 $287,049 $350,000 $279,000 $271,371 
February 2025 Notes— — — 50,000 50,000 49,981 
June 2025 Notes70,000 70,000 69,960 70,000 70,000 69,919 
June 2025 3-Year Notes50,000 50,000 49,965 50,000 50,000 49,926 
March 2026 A Notes50,000 50,000 49,913 50,000 50,000 49,889 
March 2026 B Notes50,000 50,000 49,905 50,000 50,000 49,880 
September 2026 Notes325,000 325,000 323,566 325,000 325,000 323,321 
January 2027 Notes350,000 350,000 347,598 350,000 350,000 347,265 
2028 Convertible Notes287,500 287,500 278,503 — — — 
2031 Asset-Backed Notes116,845 116,845 116,272 119,475 119,475 118,769 
2033 Notes40,000 40,000 39,070 40,000 40,000 39,043 
MUFG Bank Facility(2)
400,000 105,000 105,000 400,000 116,000 116,000 
SMBC Facility(2)(3)(5)
475,000 260,006 259,822 475,000 283,790 283,591 
Total$2,564,345 $1,999,351 $1,976,623 $2,329,475 $1,783,265 $1,768,955 
(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 March 31, 2025 and December 31, 2024.
(4)As of March 31, 2025 and 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.
(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 March 31, 2025, 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. 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 three months ended March 31, 2025 and 2024 were as follows:
Three Months Ended March 31,
(in thousands)20252024
Weighted average interest cost
4.3 %4.3 %
Weighted average cost of debt(1)
4.9 %4.9 %
Weighted average debt outstanding
$1,815,224 $1,635,890 
(1)Cost of debt includes interest and fees.
The Company held the following SBA debentures outstanding principal balances as of March 31, 2025 and December 31, 2024:
(in thousands)
Issuance/Pooling Date		Maturity Date
Interest Rate(1)
March 31, 2025December 31, 2024
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, 2024March 1, 20355.09%30,000 30,000 
December 6, 2024March 1, 20355.09%33,600 33,600 
December 12, 2024March 1, 20355.09%8,400 8,400 
December 20, 2024March 1, 20355.09%32,000 32,000 
February 5, 2025March 1, 20355.09%6,000 — 
March 28, 2025(2)
September 1, 20354.89%10,000 — 
Total SBA Debentures  $295,000 $279,000 
(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 March 31, 2025, $10.0 million of drawn SBA Debentures are scheduled to be pooled on September 25, 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 March 31, 2025 and December 31, 2024:
(in thousands)March 31, 2025December 31, 2024
SBA Debentures$7,951 $7,629 
February 2025 Notes— 19 
June 2025 Notes40 81 
June 2025 3-Year Notes35 74 
March 2026 A Notes87 111 
March 2026 B Notes95 120 
September 2026 Notes1,434 1,679 
January 2027 Notes2,402 2,735 
2028 Convertible Notes8,997 — 
2031 Asset-Backed Notes573 706 
2033 Notes930 957 
MUFG Bank Facility(1)
1,350 1,770 
SMBC Facility(1)(2)
2,823 2,693 
Total$26,717 $18,574 
(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. As of March 31, 2025, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.6 million and the term loan is $0.2 million. As of December 31, 2024, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.5 million and the term loan is $0.2 million.
Components of Interest Expense, Related Fees and Cash Paid for Interest Expense for Debt
For the three months ended March 31, 2025, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands)Three Months Ended March 31, 2025
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$2,499 $227 $— $2,726 $3,971 
February 2025 Notes202 19 — 221 1,070 
June 2025 Notes754 40 — 794 — 
June 2025 3-Year Notes750 39 — 789 — 
March 2026 A Notes562 24 — 586 1,125 
March 2026 B Notes568 26 — 594 1,138 
September 2026 Notes2,175 203 — 2,378 4,266 
January 2027 Notes3,079 207 — 3,286 5,906 
2028 Convertible Notes827 77 — 904 — 
2031 Asset-Backed Notes(2)
1,492 80 — 1,572 1,457 
2033 Notes625 27 — 652 625 
MUFG Bank Facility2,570 442 560 3,572 2,179 
SMBC Facility3,595 208 219 4,022 3,843 
Total$19,698 $1,619 $779 $22,096 $25,580 
(1)Interest expense includes amortization of OID for the three months ended March 31, 2025, of $42 thousand, $126 thousand, $68 thousand, and $38 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three months ended March 31, 2025, we have recognized $15 thousand of loss on debt extinguishment for 2031 Asset-Backed Notes.
For the three months ended March 31, 2024, the components of interest expense, related fees, and cash paid for interest expense for debt were as follows:
(in thousands)Three Months Ended March 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$1,137 $146 $— $1,283 $2,275 
July 2024 Notes1,252 74 — 1,326 2,504 
February 2025 Notes535 29 — 564 1,070 
June 2025 Notes754 40 — 794 — 
June 2025 3-Year Notes750 39 — 789 — 
March 2026 A Notes563 24 — 587 1,125 
March 2026 B Notes569 26 — 595 1,138 
September 2026 Notes2,175 203 — 2,378 4,265 
January 2027 Notes3,079 207 — 3,286 5,906 
2031 Asset-Backed Notes1,903 100 — 2,003 1,856 
2033 Notes625 27 — 652 625 
MUFG Bank Facility1,933 447 609 2,989 1,566 
SMBC Facility2,349 180 246 2,775 1,754 
Total$17,624 $1,542 $855 $20,021 $24,084 
(1)Interest expense includes amortization of OID for the three months ended March 31, 2024 of $42 thousand, $126 thousand, and $47 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively.
Summary of SBIC Investments
The following table shows the fair value of the Company’s portfolio of investments by asset class as of March 31, 2025 and December 31, 2024:
(in thousands)March 31, 2025December 31, 2024
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
Senior Secured Debt$3,674,498 93.6 %$3,419,044 93.4 %
Unsecured Debt64,736 1.7 %75,557 2.1 %
Preferred Stock52,662 1.3 %53,802 1.5 %
Common Stock94,088 2.4 %74,855 2.0 %
Warrants31,473 0.8 %30,500 0.8 %
Investment Funds & Vehicles6,993 0.2 %6,220 0.2 %
Total$3,924,450 100.0 %$3,659,978 100.0 %
A summary of the Company’s investment portfolio, at value, by geographic location as of March 31, 2025 and December 31, 2024 is shown as follows:
(in thousands)March 31, 2025December 31, 2024
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
United States$3,489,550 88.9 %$3,288,737 89.9 %
Netherlands132,889 3.4 %59,157 1.6 %
United Kingdom119,905 3.1 %142,183 3.9 %
Switzerland56,421 1.5 %— 0.0 %
Germany49,417 1.3 %49,255 1.3 %
Israel44,321 1.1 %88,066 2.4 %
Canada16,229 0.4 %16,251 0.4 %
Denmark9,111 0.2 %9,284 0.3 %
Ireland4,647 0.1 %4,649 0.1 %
Singapore1,590 0.0 %1,996 0.1 %
Other370 0.0 %400 0.0 %
Total$3,924,450 100.0 %$3,659,978 100.0 %
The following table shows the fair value of the Company’s portfolio by industry sector as of March 31, 2025 and December 31, 2024:
(in thousands)March 31, 2025December 31, 2024
Investments at
Fair Value		Percentage of
Total Portfolio 		Investments at
Fair Value		Percentage of
Total Portfolio
Software$1,262,813 32.2 %$1,081,100 29.5 %
Drug Discovery & Development1,119,941 28.5 %1,080,390 29.5 %
Healthcare Services, Other625,556 15.9 %610,184 16.7 %
Consumer & Business Services374,561 9.6 %372,641 10.2 %
Electronics & Computer Hardware167,370 4.3 %162,888 4.5 %
Diversified Financial Services117,366 3.0 %113,491 3.1 %
Medical Devices & Equipment75,238 1.9 %74,962 2.0 %
Space Technologies49,527 1.3 %45,700 1.2 %
Biotechnology Tools34,819 0.9 %35,434 1.0 %
Communications & Networking27,601 0.7 %27,700 0.8 %
Information Services24,923 0.6 %24,356 0.7 %
Sustainable and Renewable Technology22,396 0.6 %27,696 0.8 %
Manufacturing Technology20,653 0.5 %1,162 0.0 %
Consumer & Business Products1,139 0.0 %1,497 0.0 %
Semiconductors425 0.0 %704 0.0 %
Media/Content/Info114 0.0 %63 0.0 %
Drug Delivery8 0.0 %10 0.0 %
Total$3,924,450 100.0 %$3,659,978 100.0 %
The following table summarizes information related to our SBICs as of March 31, 2025 and December 31, 2024.
March 31, 2025December 31, 2024
DescriptionHC IVSBIC VHC IVSBIC V
Number of investments held35143311 
Fair value of investments (in millions)$376.1$194.7$377.7$155.6 
Percentage of fair value of investments based on the Company's total investment portfolio9.6 %5.0 %10.3 %4.3 %
Tangible assets (in millions)$381.4$197.6$382.9$157.8 
Percentage of tangible assets based on the Company's total assets9.5 %4.9 %10.0 %4.1 %