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v3.24.3

Borrowings (Tables) | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
Schedule of Information Related to Borrowings | The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest expense | $ | 7,835 |  |  | $ | 10,340 |  |  | $ | 21,417 |  |  | $ | 31,345 |
Non-usage fee | $ | 409 |  |  | $ | 209 |  |  | $ | 1,417 |  |  | $ | 473 |
Amortization of financing costs | $ | 585 |  |  | $ | 475 |  |  | $ | 1,737 |  |  | $ | 1,408 |
Weighted average interest rate | 7.6 | % |  | 7.2 | % |  | 7.7 | % |  | 6.9 | %
Effective interest rate | 8.7 | % |  | 7.8 | % |  | 9.0 | % |  | 7.4 | %
Average debt outstanding | $ | 405,661 |  |  | $ | 563,470 |  |  | $ | 364,418 |  |  | $ | 603,154 |
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest expense | $ | 2,538 |  |  | $ | 2,680 |  |  | $ | 4,292 |  |  | $ | 5,481 |
Non-usage fee | $ | 56 |  |  | $ | 55 |  |  | $ | 338 |  |  | $ | 269 |
Amortization of financing costs | $ | 63 |  |  | $ | 56 |  |  | $ | 170 |  |  | $ | 162 |
Weighted average interest rate | 7.2 | % |  | 7.4 | % |  | 7.1 | % |  | 7.0 | %
Effective interest rate | 7.5 | % |  | 7.8 | % |  | 8.0 | % |  | 7.6 | %
Average debt outstanding | $ | 140,385 |  |  | $ | 141,764 |  |  | $ | 79,969 |  |  | $ | 104,227 |
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024(2) |  | September 30, 2023 |  | September 30, 2024(2) |  | September 30, 2023
Interest expense(1) | $ | 3,718 |  |  | $ | 3,864 |  |  | $ | 11,203 |  |  | $ | 11,062 |
Non-usage fee(1) | $ | 112 |  |  | $ | 120 |  |  | $ | 331 |  |  | $ | 355 |
Amortization of financing costs(3) | $ | 1,641 |  |  | $ | 277 |  |  | $ | 2,024 |  |  | $ | 814 |
Weighted average interest rate | 8.1 | % |  | 8.1 | % |  | 8.1 | % |  | 7.8 | %
Effective interest rate(3) | 12.1 | % |  | 9.1 | % |  | 9.9 | % |  | 8.8 | %
Average debt outstanding | $ | 180,022 |  |  | $ | 186,487 |  |  | $ | 182,364 |  |  | $ | 186,429 |
(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility. (2)On September 30, 2024, the Company repaid all amounts outstanding under the DB Credit Facility, including outstanding borrowings and accrued interest, and terminated the DB Credit Facility. (3)Three and nine months ended September 30, 2024 includes accelerated deferred financing costs due to DB Credit Facility termination on September 30, 2024. The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMNLC Credit Facility II for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest expense | $ | 41 |  |  | $ | 40 |  |  | $ | 135 |  |  | $ | 136 |
Non-usage fee | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 1 |
Amortization of financing costs | $ | 21 |  |  | $ | 21 |  |  | $ | 64 |  |  | $ | 66 |
Weighted average interest rate | 7.6 | % |  | 7.5 | % |  | 7.6 | % |  | 7.1 | %
Effective interest rate | 11.7 | % |  | 11.7 | % |  | 11.4 | % |  | 10.9 | %
Average debt outstanding | $ | 2,151 |  |  | $ | 2,091 |  |  | $ | 2,341 |  |  | $ | 2,480 |
The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest expense(1) | $ | 12,277 |  |  | $ | 4,644 |  |  | $ | 33,765 |  |  | $ | 15,602 |
Amortization of financing costs | $ | 526 |  |  | $ | 143 |  |  | $ | 1,539 |  |  | $ | 524 |
Amortization of discount | $ | 165 |  |  | $ | — |  |  | $ | 422 |  |  | $ | — |
Weighted average interest rate | 6.7 | % |  | 4.7 | % |  | 6.5 | % |  | 4.8 | %
Effective interest rate | 7.3 | % |  | 4.9 | % |  | 7.0 | % |  | 5.0 | %
Average debt outstanding | $ | 706,304 |  |  | $ | 391,500 |  |  | $ | 676,414 |  |  | $ | 433,661 |
(1)Interest expense includes net expense recognized on fair value hedges. The following table summarizes the Company’s SBA-guaranteed debentures as of September 30, 2024:
Issuance Date |  | Maturity Date |  | Debenture Amount |  | Interest Rate |  | SBA Annual Charge
Fixed SBA-guaranteed debentures(1): |  |  |  |  |  |  |  |
March 25, 2015 |  | March 1, 2025 |  | $ | 37,500 |  |  | 2.517 | % |  | 0.355 | %
September 23, 2015 |  | September 1, 2025 |  | 37,500 |  |  | 2.829 | % |  | 0.355 | %
September 23, 2015 |  | September 1, 2025 |  | 28,795 |  |  | 2.829 | % |  | 0.742 | %
March 23, 2016 |  | March 1, 2026 |  | 13,950 |  |  | 2.507 | % |  | 0.742 | %
September 21, 2016 |  | September 1, 2026 |  | 4,000 |  |  | 2.051 | % |  | 0.742 | %
September 20, 2017 |  | September 1, 2027 |  | 13,000 |  |  | 2.518 | % |  | 0.742 | %
March 21, 2018 |  | March 1, 2028 |  | 15,255 |  |  | 3.187 | % |  | 0.742 | %
Fixed SBA-guaranteed debentures(2): |  |  |  |  |  |  |  |
September 19, 2018 |  | September 1, 2028 |  | 15,000 |  |  | 3.548 | % |  | 0.222 | %
September 25, 2019 |  | September 1, 2029 |  | 19,000 |  |  | 2.283 | % |  | 0.222 | %
March 25, 2020 |  | March 1, 2030 |  | 41,000 |  |  | 2.078 | % |  | 0.222 | %
March 25, 2020 |  | March 1, 2030 |  | 24,000 |  |  | 2.078 | % |  | 0.275 | %
September 23, 2020 |  | September 1, 2030 |  | 51,000 |  |  | 1.034 | % |  | 0.275 | %
Total SBA-guaranteed debentures |  |  |  | $ | 300,000 |  |  |  |  |
(1)SBA-guaranteed debentures are held by SBIC I. (2)SBA-guaranteed debentures are held by SBIC II. The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest expense | $ | 2,043 |  |  | $ | 2,042 |  |  | $ | 6,084 |  |  | $ | 6,061 |
Amortization of financing costs | $ | 253 |  |  | $ | 253 |  |  | $ | 753 |  |  | $ | 750 |
Weighted average interest rate | 2.7 | % |  | 2.7 | % |  | 2.7 | % |  | 2.7 | %
Effective interest rate | 3.0 | % |  | 3.0 | % |  | 3.0 | % |  | 3.0 | %
Average debt outstanding | $ | 300,000 |  |  | $ | 300,000 |  |  | $ | 300,000 |  |  | $ | 300,000 |
Schedule of Information Related to Convertible Notes | The following table summarizes certain key terms related to the convertible features of the 2022 Convertible Notes as of September 30, 2024:
|  |  |  |  | 2022 Convertible Notes
Initial conversion premium(1) |  |  |  |  | 14.7 | %
Initial conversion rate(2) |  |  |  |  | 70.4225 |
Initial conversion price |  |  |  |  | $ | 14.20 |
Conversion rate at September 30, 2024(1)(2) |  |  |  |  | 73.0051 |
Conversion price at September 30, 2024(2)(3) |  |  |  |  | $ | 13.70 |
Last conversion price calculation date |  |  |  |  | September 16, 2024
(1)Conversion rates denominated in shares of common stock per $1 principal amount of the 2022 Convertible Notes converted. (2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date. (3)The conversion price in effect at September 30, 2024 on the 2022 Convertible Notes was calculated on September 16, 2024. The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the 2018 Convertible Notes and 2022 Convertible Notes (together, the "Convertible Notes") for the three and nine months ended September 30, 2024 and September 30, 2023:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Interest expense | $ | 4,875 |  |  | $ | 5,696 |  |  | $ | 14,625 |  |  | $ | 17,892 |
Amortization of financing costs | $ | 410 |  |  | $ | 447 |  |  | $ | 1,210 |  |  | $ | 1,276 |
Amortization of premium | $ | (30) |  |  | $ | (52) |  |  | $ | (87) |  |  | $ | (101) |
Weighted average interest rate | 7.5 | % |  | 7.2 | % |  | 7.5 | % |  | 7.0 | %
Effective interest rate | 8.1 | % |  | 7.7 | % |  | 8.1 | % |  | 7.5 | %
Average debt outstanding | $ | 260,000 |  |  | $ | 317,138 |  |  | $ | 260,000 |  |  | $ | 340,881 |
Schedule of Effect of Hedging Derivative Instruments | The following table presents the effect of hedging derivative instruments on the Consolidated Statements of Operations and the total amounts for the respective line items affected:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2024 |  | September 30, 2024
(Losses) gains on fair value hedging relationship: |  |  |  |
Interest rate swap contract: |  |  |  |
Interest expense recognized on derivative |  | $ | (1,189) |  |  | $ | (2,270) |
Gains recognized on derivative |  | 9,092 |  |  | 7,539 |
Losses recognized on hedged item |  | (9,350) |  |  | (8,175) |
Net expense recognized on fair value hedge |  | $ | (1,447) |  |  | $ | (2,906) |
Schedule of Carrying value of Hedged Assets and Liabilities | The following table summarizes the carrying value of the Company's hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of September 30, 2024.
Description | Carrying Value | Cumulative Amount of Basis Adjustment
6.875% Unsecured Notes | $ | 306,122 |  | $ | (8,817) |
6.200% Unsecured Notes | $ | 297,455 |  | $ | 642 |

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