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Senior Secured Notes, Net | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
Long-Term Debt | SECURED DEBT, NET Our secured debt represents borrowings under our secured credit facilities. During the nine months ended September 30, 2025, we c losed $2.2 billion of new borrowings against $2.9 billion of collateral assets. The following table details our secured debt ($ in thousands):
| Secured Debt Borrowings Outstanding
| September 30, 2025 |  | December 31, 2024
Secured credit facilities | $9,548,332 |  | $9,705,529
Deferred financing costs(1) | (8,108) |  | (9,195)
Net book value of secured debt | $9,540,224 |  | $9,696,334
(1)Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred and recognized as a component of interest expense over the life of each related facility. Secured Credit Facilities Our secured credit facilities are bilateral agreements we use to f inance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. Our credit facilities are diversified across 13 counterparties, primarily consisting of top global financial institutions to minimize our counterparty risk exposure. The following table details our secured credit facilities as of September 30, 2025 ($ in thousands):
September 30, 2025
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recourse Limitation
Currency |  | Lenders(1) |  | Borrowings |  | Wtd. Avg. Maturity(2) |  |  | Loan Count |  | Collateral(3) |  | Wtd. Avg. Maturity(4) |  |  | Wtd. Avg. |  | Range
USD |  | 12 |  | $3,954,253 |  | July 2027 |  |  | 81 |  | $6,522,111 |  | July 2027 |  |  | 32% |  | 25% - 100%
GBP |  | 6 |  | 2,265,827 |  | August 2028 |  |  | 14 |  | 3,098,509 |  | September 2028 |  |  | 25% |  | 25%
EUR |  | 7 |  | 1,835,792 |  | September 2027 |  |  | 10 |  | 2,588,781 |  | October 2027 |  |  | 42% |  | 25% - 100%
Others(5) |  | 4 |  | 1,492,460 |  | January 2029 |  |  | 7 |  | 1,873,776 |  | January 2029 |  |  | 25% |  | 25%
Total |  | 13 |  | $9,548,332 |  | January 2028 |  |  | 112 |  | $14,083,177 |  | January 2028 |  |  | 31% |  | 25% - 100%
(1)Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders. (2)Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted- average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured credit facility is used. (3)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets. (4)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. (5)Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies. The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities. The following tables detail the spread of our secured credit facilities as of September 30, 2025 and December 31, 2024 ($ in thousands):
|  | Nine Months Ended September 30, 2025 |  | September 30, 2025
Spread(1) |  | New Financings(2) |  | Total Borrowings |  | Wtd. Avg. All-in Cost(1)(3)(4) |  |  | Collateral(5) |  | Wtd. Avg. All-in Yield(1)(3) |  |  | Net Interest Margin(6)
+ 1.50% or less |  | $1,385,800 |  | $4,547,118 |  | +1.54% |  |  | $6,600,493 |  | +2.99% |  |  | +1.45%
+ 1.51% to + 1.75% |  | 555,478 |  | 2,564,711 |  | +1.75% |  |  | 3,375,095 |  | +3.48% |  |  | +1.73%
+ 1.76% to + 2.00% |  | 104,841 |  | 935,067 |  | +2.10% |  |  | 1,766,876 |  | +3.28% |  |  | +1.18%
+ 2.01% or more |  | 137,147 |  | 1,501,436 |  | +2.63% |  |  | 2,340,713 |  | +4.24% |  |  | +1.61%
Total |  | $2,183,266 |  | $9,548,332 |  | +1.82% |  |  | $14,083,177 |  | +3.35% |  |  | +1.53%
|  | Year Ended December 31, 2024 |  | December 31, 2024
Spread(1) |  | New Financings(2) |  | Total Borrowings |  | Wtd. Avg. All-in Cost(1)(3)(4) |  |  | Collateral(5) |  | Wtd. Avg. All-in Yield(1)(3) |  |  | Net Interest Margin(6)
+ 1.50% or less |  | $165,616 |  | $3,976,192 |  | +1.53% |  |  | $6,185,925 |  | +3.18% |  |  | +1.65%
+ 1.51% to + 1.75% |  | 74,118 |  | 2,238,376 |  | +1.78% |  |  | 3,140,937 |  | +3.52% |  |  | +1.74%
+ 1.76% to + 2.00% |  | — |  | 969,541 |  | +2.09% |  |  | 1,802,431 |  | +3.67% |  |  | +1.58%
+ 2.01% or more |  | 374,407 |  | 2,521,420 |  | +2.61% |  |  | 3,678,528 |  | +4.31% |  |  | +1.70%
Total |  | $614,141 |  | $9,705,529 |  | +1.92% |  |  | $14,807,821 |  | +3.58% |  |  | +1.66%
(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable. (2)Represents the amount of new borrowings we closed during the nine months ended September 30, 2025 and year ended December 31, 2024, respectively. (3)In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets. (4)Represents the weighted-average all-in cost as of September 30, 2025 and December 31, 2024, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings. (5)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets. (6)Represents the difference between the weighted-average all-in yield and weighted-average all-in cost. Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations. As of September 30, 2025, there was an aggregate $844.1 million available to be drawn at our discretion under our credit facilities. Financial Covenants As of September 30, 2025, we are subject to the following financial covenants related to our secured debt and secured debt of our unconsolidated entities: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.3 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $3.6 billion as of each measurement date plus 75% to 85% of the net cash proceeds of future equity issuances subsequent to September 30, 2025; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of September 30, 2025 and December 31, 2024, we were in compliance with these covenants. During 2024, the financial covenant under each applicable secured debt agreement related to the ratio of our EBITDA to fixed charges, as noted above, was amended so that the ratio shall be not less than 1.25 to 1.0 with respect to each of the four fiscal quarters beginning with the quarter ended September 30, 2024, and shall be not less than 1.3 to 1.0 thereafter. SECURITIZED DEBT OBLIGATIONS, NET We have financed certain pools of our loans through CLOs. The CLOs are consolidated in our financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 20 for further discussion of our CLOs. T he following tables detail our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands):
| September 30, 2025
Securitized Debt Obligations |  | Count |  | Principal Balance |  | Book Value(1) |  | Wtd. Avg. Yield/Cost(2)(3) |  | Term(4)
2025 FL5 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | $831,250 |  | $821,900 |  | + 2.15% |  | October 2042
Underlying Collateral Assets |  | 17 |  | 898,950 |  | 898,950 |  | + 3.50% |  | September 2028
2021 FL4 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | 609,741 |  | 609,741 |  | + 1.45% |  | May 2038
Underlying Collateral Assets |  | 18 |  | 759,956 |  | 759,956 |  | + 2.66% |  | March 2027
2020 FL3 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | 457,129 |  | 457,129 |  | + 2.51% |  | November 2037
Underlying Collateral Assets |  | 12 |  | 625,580 |  | 625,580 |  | + 2.78% |  | February 2027
2020 FL2 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | 581,297 |  | 581,297 |  | + 1.76% |  | February 2038
Underlying Collateral Assets |  | 12 |  | 813,742 |  | 813,742 |  | + 2.71% |  | March 2027
Total |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding(5) |  | 4 |  | $2,479,417 |  | $2,470,067 |  | + 1.95% |  |
Underlying Collateral Assets |  | 59 |  | $3,098,228 |  | $3,098,228 |  | + 3.15% |  |
(1)The book value of underlying collateral assets excludes any applicable CECL reserves. (2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (3)The weighted-average all-in yield and cost are expressed as a spread over SOFR. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets. (4)Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower, and excludes REO assets. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (5)During the three and nine months ended September 30, 2025, we recorded $40.0 million and $107.8 million, respectively, of interest expense related to our securitized debt obligations.
| December 31, 2024
Securitized Debt Obligations |  | Count |  | Principal Balance |  | Book Value(1) |  | Wtd. Avg. Yield/Cost(2)(3) |  | Term(4)
2021 FL4 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | $785,453 |  | $785,442 |  | + 1.39% |  | May 2038
Underlying Collateral Assets |  | 22 |  | 952,764 |  | 952,764 |  | + 2.95% |  | August 2026
2020 FL3 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | 552,664 |  | 552,663 |  | + 1.92% |  | November 2037
Underlying Collateral Assets |  | 12 |  | 743,914 |  | 743,914 |  | + 2.92% |  | June 2026
2020 FL2 Collateralized Loan Obligation |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding |  | 1 |  | 598,850 |  | 598,851 |  | + 1.50% |  | February 2038
Underlying Collateral Assets |  | 12 |  | 855,725 |  | 855,725 |  | + 2.79% |  | August 2026
Total |  |  |  |  |  |  |  |  |  |
Senior CLO Securities Outstanding(5) |  | 3 |  | $1,936,967 |  | $1,936,956 |  | + 1.57% |  |
Underlying Collateral Assets |  | 46 |  | $2,552,403 |  | $2,552,403 |  | + 2.98% |  |
(1)The book value of underlying collateral assets excludes any applicable CECL reserves. (2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (3)The weighted-average all-in yield and cost are expressed as a spread over SOFR. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. (4)Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (5)During the three and nine months ended September 30, 2024, we recorded $40.6 million and $123.9 million, respectively, of interest expense related to our securitized debt obligations. ASSET-SPECIFIC DEBT, NET The following table details our asset-specific debt ($ in thousands):
| September 30, 2025
Asset-Specific Debt |  | Count |  | Principal Balance |  | Book Value(1) |  | Wtd. Avg. Yield/Cost(2) |  | Wtd. Avg. Term(3)
Financing provided |  | 3 |  | $629,890 |  | $627,916 |  | + 3.18% |  | October 2029
Collateral assets |  | 3 |  | $781,189 |  | $775,248 |  | + 4.52% |  | October 2029
| December 31, 2024
Asset-Specific Debt |  | Count |  | Principal Balance |  | Book Value(1) |  | Wtd. Avg. Yield/Cost(2) |  | Wtd. Avg. Term(3)
Financing provided |  | 2 |  | $1,228,110 |  | $1,224,841 |  | + 3.20% |  | June 2026
Collateral assets |  | 2 |  | $1,467,185 |  | $1,459,864 |  | + 4.03% |  | June 2026
(1)The book value of underlying collateral assets excludes any applicable CECL reserves. (2)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees and financing costs. (3)The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case to the corresponding collateral loans. TERM LOANS, NET During the nine months ended September 30, 2025, we borrowed an additional $1.0 billion under the B-6 Term Loan and $453.1 million under the B-7 Term Loan. The B-6 Term Loan bears interest at SOFR plus 3.00% and matures in December 2030. The proceeds from the B-6 Term Loan were used to repay $400.0 million of the outstanding B-4 Term Loan and all $648.4 million in principal outstanding under the B-5 Term Loan. The B-7 Term Loan bears interest at SOFR plus 2.50% and matures in May 2029. The proceeds from the B-7 Term Loan were used, among other things, to repay all $403.1 million in principal outstanding under the B-4 Term Loan. The following table details the net book value of each of our senior term loan facilities, or Term Loans, on our consolidated balance sheets ($ in thousands):
|  | Face Value |  |  |  |  |  |
Term Loans |  | September 30, 2025 |  | December 31, 2024 |  | Interest Rate(1) |  | All-in Cost(1)(2) |  | Maturity
B-1 Term Loan |  | $309,268 |  | $309,268 |  | + 2.36% |  | + 2.53% |  | April 23, 2026
B-4 Term Loan |  | — |  | 805,169 |  | + 3.50% |  | + 3.99% |  | May 9, 2029
B-5 Term Loan |  | — |  | 650,000 |  | + 3.75% |  | + 4.27% |  | December 10, 2028
B-6 Term Loan |  | 1,045,754 |  | — |  | + 3.00% |  | + 3.55% |  | December 10, 2030
B-7 Term Loan |  | 453,105 |  | — |  | + 2.50% |  | + 3.05% |  | May 9, 2029
Total face value |  | $1,808,127 |  | $1,764,437 |  |  |  |  |  |
Deferred financing costs and unamortized discounts |  | (33,214) |  | (32,364) |  |  |  |  |  |
Net book value |  | $1,774,913 |  | $1,732,073 |  |  |  |  |  |
(1)The B-6 Term Loan and the B-7 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50%. The Term Loans are indexed to one-month SOFR. (2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the applicable Term Loans. The Term Loans are partially a mortizing, with an amount equal to 1.0% per annum of the aggregate initial principal balance due in quarterly installments. There was no repurchase activity or gain on debt extinguishment during the nine months ended September 30, 2025. During the three and nine months ended September 30, 2024, we repurchased an aggregate principal amount of $2.3 million of the B-1 Term Loan at a weighted-average price of 99% of par. This resulted in a gain on extinguishment of debt of $25,000 during the three and nine months ended September 30, 2024. The following table details our interest expense related to the Term Loans ($ in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cash coupon | $32,898 |  | $44,242 |  | $101,041 |  | $132,906
Discount and issuance cost amortization | 2,266 |  | 2,283 |  | 8,381 |  | 6,848
Total interest expense | $35,164 |  | $46,525 |  | $109,422 |  | $139,754
The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of September 30, 2025 and December 31, 2024, we were in compliance with this covenant. Refer to Note 2 for further discussion of our accounting policies for the Term Loans. SENIOR SECURED NOTES, NET The following table details the net book value of our senior secured notes, or Senior Secured Notes, on our consolidated balance sheets ($ in thousands):
|  | Face Value |  |  |  |  |  |
Senior Secured Notes Issuance |  | September 30, 2025 |  | December 31, 2024 |  | Interest Rate |  | All-in Cost(1) |  | Maturity
October 2021 |  | $335,316 |  | $335,316 |  | 3.75% |  | 4.06% |  | January 15, 2027
December 2024 |  | 450,000 |  | 450,000 |  | 7.75% | (2) | 8.14% |  | December 1, 2029
Total face value |  | $785,316 |  | $785,316 |  |  |  |  |  |
Deferred financing costs and unamortized discounts |  | (7,935) |  | (9,857) |  |  |  |  |  |
Hedging adjustments(3) |  | 7,834 |  | (4,424) |  |  |  |  |  |
Net book value |  | $785,215 |  | $771,035 |  |  |  |  |  |
(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes. (2)Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts our fixed rate exposure to a SOFR + 3.95% floating rate exposure. (3)Represents the fair value of an interest rate swap that we entered into to convert the fixed rate exposure of the December 2024 Senior Secured Notes into floating rate. Refer to Note 14 for further discussion. The following table details our interest expense related to the Senior Secured Notes ($ in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cash coupon | $11,862 |  | $3,160 |  | $35,587 |  | $9,701
Discount and issuance cost amortization | 654 |  | 254 |  | 2,003 |  | 775
Total interest expense | $12,516 |  | $3,414 |  | $37,590 |  | $10,476
There was no repurchase activity or gain on debt extinguishment during the nine months ended September 30, 2025. During the three and nine months ended September 30, 2024, we repurchased an aggregate principal amount of $4.6 million and $30.8 million, respectively, of the October 2021 Senior Secured Notes at a weighted-average price of 92% and 88% of par, respectively. This resulted in a gain on extinguishment of debt of $330,000 and $3.3 million during the three and nine months ended September 30, 2024. The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of September 30, 2025 and December 31, 2024, we were in compliance with this covenant. Under certain circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater. This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released. CONVERTIBLE NOTES, NET The following table details the net book value of our convertible senior notes, or Convertible Notes, on our consolidated balance sheets ($ in thousands):
|  | Face Value |  |  |  |  |  |  |  |
Convertible Notes |  | September 30, 2025 |  | December 31, 2024 |  | Interest Rate |  | All-in Cost(1) |  | Conversion Price(2) |  | Maturity
Face value |  | $266,157 |  | $266,157 |  | 5.50% |  | 5.79% |  | $36.27 |  | March 15, 2027
Deferred financing costs and unamortized discount |  | (1,694) |  | (2,541) |  |  |  |  |  |  |  |
Net book value |  | $264,463 |  | $263,616 |  |  |  |  |  |  |  |
(1)Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. (2)Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible Notes. The conversion rate represents the number of shares of class A common stock issuable per $1,000 principal amount of Convertible Notes. The cumulative dividend threshold has not been exceeded as of September 30, 2025. Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported sale price of our class A common stock of $18.41 on September 30, 2025, the last trading day in the nine months ended September 30, 2025, was less than the per share conversion price of the Convertible Note s. There was no repurchase activity during the nine months ended September 30, 2025. During the three and nine months ended September 30, 2024, we repurchased an aggregate principal amount of $33.8 million of the Convertible Notes at a weighted-average price of 93% of par. This resulted in a gain on extinguishment of debt of $2.0 million during the three and nine months ended September 30, 2024, respectively. The following table details our interest expense related to the Convertible Notes ($ in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cash coupon | $3,660 |  | $3,874 |  | $10,979 |  | $12,124
Discount and issuance cost amortization | 282 |  | 305 |  | 847 |  | 944
Total interest expense | $3,942 |  | $4,179 |  | $11,826 |  | $13,068
Accrued interest payable for the Convertible Notes was $649,000 and $4.3 million as of September 30, 2025 and December 31, 2024, respectively. Refer to Note 2 for further discussion of our accounting policies for the Convertible Notes.

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