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DEBT | 12 Months Ended
--- | ---
Dec. 31, 2024
Debt Disclosure [Abstract] |
DEBT | DEBT The Company’s debt obligations were as follows.
| December 31, 2024 |  | December 31, 2023
| Aggregate Principal Committed | Outstanding Principal | Unused Portion |  | Aggregate Principal Committed | Outstanding Principal | Unused Portion
CIBC Subscription Facility(1) | $ | — |  | $ | — |  | $ | — |  |  | $ | — |  | $ | — |  | $ | — |
BNP Funding Facility | 600,000 |  | 316,000 |  | 284,000 |  |  | 600,000 |  | 282,000 |  | 318,000 |
Truist Credit Facility(2) | 1,300,000 |  | 617,401 |  | 680,770 |  |  | 1,120,000 |  | 520,263 |  | 599,484 |
2027 Notes(3) | 425,000 |  | 425,000 |  | — |  |  | 425,000 |  | 425,000 |  | — |
2025 Notes(3) | 275,000 |  | 275,000 |  | — |  |  | 275,000 |  | 275,000 |  | — |
2029 Notes(3) | 350,000 |  | 350,000 |  | — |  |  | — |  | — |  | — |
Total | $ | 2,950,000 |  | $ | 1,983,401 |  | $ | 964,770 |  |  | $ | 2,420,000 |  | $ | 1,502,263 |  | $ | 917,484 |
(1)The CIBC Subscription Facility matured and was fully paid off as of December 31, 2022. (2)As of December 31, 2024 and December 31, 2023, a letter of credit of $1,828 and $253, respectively, was outstanding, which reduced the unused availability under the Truist Credit Facility by the same amount. Under the Truist Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of December 31, 2024 and December 31, 2023, the Company had borrowings denominated in Euros (EUR) of 3,298 and 238, respectively, Canadian dollars (CAD) of 300 and 0, respectively and Pound Sterling (GBP) of 1,020 and 0, respectively. (3)As of December 31, 2024, the carrying value of the Company’s 2027 Notes, 2025 Notes and 2029 Notes were presented net of unamortized debt issuance costs of $2,374, $856 and $3,297 and unamortized original issuance discount of $452, $0 and $3,398, respectively. As of December 31, 2023, the carrying value of the Company’s 2027 Notes, 2025 Notes and 2029 Notes were presented net of unamortized debt issuance costs of $3,499, $2,065 $0, and unamortized original issuance discount of $667, $0 and $0, respectively. The Company's summary information of its debt obligations were as follows:
|  | For the Year Ended |  |
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Combined weighted average interest rate (1) |  | 6.46 | % |  | 6.51 | % |  | 4.05 | % |  |
Combined weighted average effective interest rate (2) |  | 6.90 | % |  | 6.85 | % |  | 4.41 | % |  |
Combined weighted average debt outstanding |  | $ | 1,681,358 |  |  | $ | 1,576,285 |  | $ | 1,432,492 |  |  |
(1) Excludes unused commitment fees, amortization of financing costs, accretion of original issue discount and net change in unrealized (appreciation) depreciation on effective interest rate swaps and hedged items. (2) Excludes unused commitment fees and net change in unrealized (appreciation) depreciation on effective interest rate swaps and hedged items. As of December 31, 2024 and December 31, 2023, the Company was in compliance with all covenants and other requirements of each of the credit facilities, and each of the respective unsecured notes. CIBC Subscription Facility On December 31, 2019, the Company entered into a revolving credit agreement (as amended, restated or otherwise modified from time to time, the "CIBC Subscription Facility") with CIBC Bank USA as administrative agent and arranger. The CIBC Subscription Facility allowed the Company to borrow up to the maximum revolving commitment at any one time outstanding, subject to certain restrictions, including availability under the borrowing base, which is based on unused Capital Commitments. The CIBC Subscription Facility bore interest at a rate at the Company’s election of either (i) the per annum one or three-month LIBOR, divided by a number determined by subtracting from 1.00 the then stated maximum reserve percentage for determining reserves to be maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities, plus 1.65% or (ii) the prime rate plus 0.65%, as calculated under the CIBC Subscription Facility. The CIBC Subscription Facility was secured by the unfunded commitments of certain stockholders of the Company. The CIBC Subscription Facility matured and was fully paid off as of December 31, 2022. The summary information of the CIBC Subscription Facility is as follows:
|  | For the Year Ended |  |
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Borrowing interest expense |  | $ | — |  |  | $ | — |  |  | $ | 8,312 |  |  |
Facility unused commitment fees |  | — |  |  | — |  |  | 26 |  |  |
Amortization of deferred financing costs |  | — |  |  | — |  |  | 1,347 |  |  |
Total |  | $ | — |  |  | $ | — |  |  | $ | 9,685 |  |  |
Weighted average interest rate |  | — | % |  | — | % |  | 3.13 | % |  |
Weighted average outstanding balance |  | $ | — |  |  | $ | — |  |  | $ | 262,184 |  |  |
BNP Funding Facility On October 14, 2020, DLF LLC entered into a Revolving Credit and Security Agreement (as amended, restated or otherwise modified from time to time, the “Credit and Security Agreement”) with DLF LLC, as the borrower, BNP Paribas (“BNP”), as the administrative agent and lender, the Company, as the equity holder and as the servicer, and U.S. Bank National Association, as collateral agent to (as amended, the “BNP Funding Facility”). As of December 31, 2024, the borrowing capacity under the BNP Funding Facility was $600,000. The applicable margin on borrowings during the reinvestment period is 2.25% and, after the reinvestment period, 2.75%. The obligations of DLF LLC under the BNP Funding Facility are secured by the assets held by DLF LLC. The BNP Funding Facility reinvestment period ends on August 21, 2027 and the facility has a final maturity date of August 21, 2029. The summary information of the BNP Funding Facility is as follows:
|  | For the Year Ended |  |
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Borrowing interest expense |  | $ | 20,662 |  |  | $ | 27,086 |  |  | $ | 15,376 |  |  |
Facility unused commitment fees |  | 2,068 |  |  | 771 |  |  | 507 |  |  |
Amortization of deferred financing costs |  | 1,650 |  |  | 1,257 |  |  | 1,145 |  |  |
Total |  | $ | 24,380 |  |  | $ | 29,114 |  |  | $ | 17,028 |  |  |
Weighted average interest rate |  | 7.77 | % |  | 7.51 | % |  | 3.90 | % |  |
Weighted average outstanding balance |  | $ | 261,541 |  |  | $ | 355,507 |  |  | $ | 389,216 |  |  |
Truist Credit Facilit y On July 16, 2021, the Company entered into a Senior Secured Revolving Credit Agreement with Truist Bank (as amended, restated or otherwise modified from time to time, the “Truist Credit Facility). The maximum principal amount of the Truist Credit Facility is $1,300,000, subject to availability under the borrowing base. The Truist Credit Facility includes an uncommitted accordion feature that, as of December 31, 2024, allows the Company, under certain circumstances, to increase the borrowing capacity to up to $1,950,000. As of December 31, 2024, the availability period of the Truist Credit Facility will terminate on April 19, 2028. The Truist Credit Facility is guaranteed by certain domestic subsidiaries of the Company (the “Guarantors”). The Company’s obligations to the lenders under the Truist Credit Facility are secured by a first priority security interest in substantially all of the assets of the Company and each Guarantor, subject to certain exceptions. The Company may borrow amounts in U.S. dollars or certain other permitted currencies. Borrowings under the Truist Credit Facility bear interest at a per annum rate equal to, (x) for loans for which the Company elects the base rate option, the “alternate base rate” (which is the highest of (a) the prime rate as publicly announced by Truist Bank, (b) the sum of (i) the weighted average of the rates on overnight federal funds transactions, as published by the Federal Reserve Bank of New York plus (ii) 0.5%, and (c) Term SOFR (as defined in the Truist Credit Facility agreement) on such day plus 1% per annum) plus either (A) 0.75% or (B) 0.875%, based on certain borrowing base conditions and (y) for loans for which the Company elects the term benchmark option, Term SOFR, for borrowings denominated in U.S. dollars, or the applicable term benchmark rate for borrowings denominated in certain foreign currencies, in each case for the related interest period for such borrowing plus 1.875% per annum or such other applicable margin as is applicable to such foreign currency borrowings. The Company pays an unused fee of 0.375% per annum on the daily unused amount of the revolver commitments. The Company pays letter of credit participation fees and a fronting fee on the average daily amount of any letter of credit issued and outstanding under the Truist Credit Facility, as applicable. As of December 31, 2024, the Truist Credit Facility has a maturity date of April 19, 2029. The summary information of the Truist Credit Facility is as follows:
|  | For the Year Ended
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Borrowing interest expense |  | $ | 36,415 |  |  | $ | 37,055 |  |  | $ | 11,959 |  |  |
Facility unused commitment fees |  | 2,912 |  |  | 2,287 |  |  | 2,487 |  |  |
Amortization of deferred financing costs |  | 2,077 |  |  | 1,992 |  |  | 1,243 |  |  |
Total |  | $ | 41,404 |  |  | $ | 41,334 |  |  | $ | 15,689 |  |  |
Weighted average interest rate |  | 7.15 | % |  | 7.02 | % |  | 3.68 | % |  |
Weighted average outstanding balance |  | $ | 500,828 |  |  | $ | 520,778 |  |  | $ | 320,955 |  |  |
Unsecured Notes 2027 Notes On February 11, 2022, the Company issued $425,000 in aggregate principal amount of 4.50% notes due 2027 (the restricted securities initially issued on February 11, 2022 together with the unrestricted securities issued pursuant to the exchange offer described below, the “2027 Notes”) pursuant to the First Supplemental Indenture dated February 11, 2022 (the “First Supplemental Indenture”), which supplements a base indenture, dated as of February 11, 2022 (as may be further amended, supplemented or otherwise modified from time to time, the “Base Indenture” and together with the First Supplemental Indenture, the “February 2027 Notes Indenture”). The 2027 Notes will mature on February 11, 2027 and may be redeemed in whole or in part at the Company’s option at any time or from time to time at the redemption prices set forth in the February 2027 Notes Indenture. Interest on the 2027 Notes is due semiannually in February and August of each year. The 2027 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the 2027 Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries, financing vehicles or similar facilities. Pursuant to a Registration Statement on Form N-14 (File No. 333-264774), filed on July 20, 2022, the Company closed an exchange offer in which holders of the 2027 Notes that were restricted because they were issued in a private placement were offered the opportunity to exchange such notes for new, registered notes with substantially identical terms. Through this exchange offer, holders representing 85.87% of the outstanding principal of the then restricted 2027 Notes obtained registered unrestricted 2027 Notes. The summary information of 2027 Notes is as follows:
|  | For the Year Ended |  |
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Borrowing interest expense |  | $ | 19,125 |  |  | $ | 19,125 |  |  | $ | 17,000 |  |  |
Accretion of original issuance discount |  | 215 |  |  | 214 |  |  | 190 |  |  |
Amortization of debt issuance costs |  | 1,133 |  |  | 1,122 |  |  | 996 |  |  |
Total |  | $ | 20,473 |  |  | $ | 20,461 |  |  | $ | 18,186 |  |  |
Stated interest rate |  | 4.50 | % |  | 4.50 | % |  | 4.50 | % |  |
2025 Notes On September 13, 2022, the Company entered into a Master Note Purchase Agreement (the “Note Purchase Agreement”) governing the issuance of $275,000 in aggregate principal amount of Series A Senior Notes due September 13, 2025 (the “2025 Notes”) to certain qualified institutional investors in a private placement. The 2025 Notes were delivered and paid for on September 13, 2022, subject to certain customary closing conditions. The 2025 Notes have a fixed interest rate of 7.55% per year. The 2025 Notes will mature on September 13, 2025 unless redeemed, purchased or prepaid prior to such date by the Company in accordance with the terms of the Note Purchase Agreement. Interest on the 2025 Notes is due semiannually in February and August of each year. Subject to the terms of the Note Purchase Agreement, the Company may redeem the 2025 Notes in whole or in part at any time or from time to time at the Company’s option at par plus accrued interest to the prepayment date and, if redeemed on or before June 13, 2025, a make-whole premium. The Company’s obligations under the Note Purchase Agreement are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The summary information of 2025 Notes is as follows:
|  | For the Year Ended |  |
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Borrowing interest expense |  | $ | 20,762 |  |  | $ | 20,762 |  |  | $ | 6,229 |  |  |
Amortization of debt issuance costs |  | 1,216 |  |  | 1,212 |  |  | 365 |  |  |
Total |  | $ | 21,978 |  |  | $ | 21,974 |  |  | $ | 6,594 |  |  |
Stated interest rate |  | 7.55 | % |  | 7.55 | % |  | 7.55 | % |  |
2029 Notes On May 17, 2024, the Company issued $350,000 in aggregate principal amount of 6.150% notes due 2029 (the “2029 Notes”), pursuant to the Second Supplemental Indenture dated May 17, 2024 (the “Second Supplemental Indenture”), which supplements the Base Indenture (together with the Second Supplemental Indenture, the “March 2029 Notes Indenture”). The 2029 Notes will mature on May 17, 2029 and may be redeemed in whole or in part at the Company’s option at any time prior to April 17, 2029 at par value plus a “make-whole” premium calculated in accordance with the terms under “optional redemption” in the March 2029 Notes Indenture and at par value on April 17, 2029 or thereafter. Interest on the 2029 Notes is due semiannually in May and November of each year. The 2029 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the 2029 Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries, financing vehicles or similar facilities. In connection with the 2029 Notes Offering, the Company entered into interest rate swaps. Under the interest rate swap agreement related to the 2029 Notes, the Company receives a fixed interest rate of 6.413% per annum and pays a floating interest rate of SOFR + 2.37% per annum on $350,000 of the 2029 Notes. For the year ended December 31, 2024, the Company paid no periodic payments. The interest expense related to the 2029 Notes is equally offset by the proceeds received from the interest rate swaps. The swap adjusted interest expense is included as a component of interest expense on the Company's Consolidated Statements of Operations. As of December 31, 2024, the interest rate swaps had a fair value of $445. Based on the fair value measurement hierarchy, the swaps are classified as level 3 investments. Depending on the nature of the balance at period end, the fair value of the interest rate swaps are either included as a component of accrued expenses and other liabilities or prepaid expenses and other assets on the Company's Consolidated Statements of Assets and Liabilities. The change in fair value of the interest rate swaps is offset by the change in fair value of the 2029 Notes, with the remaining difference included as a component of interest expense on the Consolidated Statements of Operations. The Company designated each interest rate swap as the hedging instrument in a qualifying hedge accounting relationship. The summary information of 2029 Notes is as follows:
|  | For the Year Ended |  |
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022 |  |
Borrowing interest expense |  | $ | 13,393 |  |  | $ | — |  |  | $ | — |  |  |
Accretion of original issuance discount |  | 488 |  |  | — |  |  | — |  |  |
Net change in unrealized (appreciation) depreciation on effective interest rate swaps and hedged items |  | 10 |  |  | — |  |  | — |  |  |
Amortization of debt issuance costs |  | 802 |  |  | — |  |  | — |  |  |
Total |  | $ | 14,693 |  |  | $ | — |  |  | $ | — |  |  |
Stated interest rate |  | 6.15 | % |  | — | % |  | — | % |  |

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