Carlyle Secured Lending, Inc.CGBD
Carlyle Secured Lending, Inc. Debt Disclosure
9. BORROWINGS
The Company is a party to the Credit Facility, as described below. In accordance with the Investment Company Act, the Company is currently only allowed to borrow amounts such that its asset coverage, as defined in the Investment Company Act, is at least 150% after such borrowing. For the purposes of the asset coverage ratio under the Investment Company Act, the Preferred Stock, as defined in Note 1, Organization, to these consolidated financial statements is considered a senior security and is included in the denominator of the calculation as of December 31, 2024. As of December 31, 2025 and 2024, asset coverage was 175.6% and 183.2%, respectively, and the Company was in compliance with all covenants and other requirements of the respective agreements of the Credit Facility.
The following table details the principal amount and carrying amount of the Company’s debt and secured borrowings as of December 31, 2025 and 2024.
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Credit Facility | $ | 563,660 | $ | 213,439 | |||||||
| 2028 Notes | — | 85,000 | |||||||||
| 2030 Notes | 300,000 | 300,000 | |||||||||
| 2031 Notes | 300,000 | — | |||||||||
| 2015-1N Debt | 380,000 | 380,000 | |||||||||
| Total principal amount outstanding | 1,543,660 | 978,439 | |||||||||
| Less: unamortized debt issuance costs | (11,266) | (10,790) | |||||||||
| Effective interest rate swap hedge | (1,184) | (6,700) | |||||||||
| Total carrying value | $ | 1,531,210 | $ | 960,949 | |||||||
Credit Facility
On March 21, 2014, the Company entered into a senior secured revolving credit facility (as amended, the “Credit Facility”), which was most recently amended and restated on March 12, 2025, and may be further amended from time to time. On July 10, 2025, the Company increased the total commitments under the Credit Facility by $25,000 pursuant to the terms of the agreement, resulting in total commitments increasing to $960,000 ($935,000 prior to the July 10, 2025 increase), subject to availability under the Credit Facility, which is based on certain advance rates multiplied by the value of the Company’s portfolio investments (subject to certain concentration limitations) net of certain other indebtedness that the Company may incur in accordance with the terms of the Credit Facility. Proceeds of the Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. Maximum capacity under the Credit Facility may be increased to $1,402,500 ($1,185,000 prior to the March 12, 2025 amendment), through the exercise by the Company of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The Credit Facility includes a $75,000 ($50,000 prior to the March 12, 2025 amendment) limit for swingline loans and a $30,000 ($20,000 prior to the March 12, 2025 amendment) limit for letters of credit. The Company may borrow amounts in U.S. dollars or certain other permitted currencies. Amounts drawn under the Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either (i) a term benchmark rate of the Adjusted Term SOFR Rate, the Adjusted Euribor Rate, or the applicable Local Rate, as the case may be, or (ii) an Alternate Base Rate (which is the highest of (a) the Prime Rate, (b) the NYFRB Rate plus 0.50%, or (c) the Adjusted Term SOFR Rate for one month plus 1.00%) plus an applicable margin, each capitalized term as defined in the Credit Facility. The applicable margin for a term benchmark rate loan will be up to 1.875% and for an Alternate Base Rate loan will be up to 0.875%, in each case depending on the level of the gross borrowing base compared to the combined debt amount. The Company may elect either the term benchmark rate or the Alternative Base Rate at
the time of drawdown, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company also pays a fee of 0.375% on unused amounts under the Credit Facility and, in respect of each unused letter of credit, a fee and interest rate equal to the then-applicable margin under the Credit Facility while the letter of credit is outstanding.
The availability period under the Credit Facility will terminate on March 12, 2029 (August 31, 2027 prior to the March 12, 2025 amendment). The maturity date for $825,000 of the $960,000 of commitments is March 12, 2030 (May 25, 2027 prior to the August 31, 2023 amendment). On May 25, 2026, the availability period of the remaining $135,000 of commitments will terminate. For a one year period commencing at the end of each respective availability period, the Company will be obligated to make mandatory prepayments under the Credit Facility out of the proceeds of certain asset sales, other recovery events and equity and debt issuances.
Subject to certain exceptions, the Credit Facility is secured by a first lien security interest in substantially all of the portfolio investments held by the Company. The Credit Facility includes customary covenants, including certain financial covenants related to asset coverage, stockholders’ equity and liquidity, certain limitations on the incurrence of additional indebtedness and liens, and other maintenance covenants, as well as usual and customary events of default for senior secured revolving credit facilities of this nature. As of December 31, 2025 and 2024, the Company was in compliance with all covenants and other requirements of the Credit Facility.
Below is a summary of the borrowings and repayments under the Credit Facility for the years ended December 31, 2025, 2024, and 2023, and the outstanding balances under the Credit Facility for the respective periods.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Outstanding borrowings, beginning of year | $ | 213,439 | $ | 260,356 | $ | 440,441 | |||||||||||
| Borrowings | 1,372,331 | 490,567 | 166,792 | ||||||||||||||
| Repayments | (1,031,769) | (535,525) | (350,408) | ||||||||||||||
| Foreign currency translation | 9,659 | (1,959) | 3,531 | ||||||||||||||
Outstanding borrowings, end of year | $ | 563,660 | $ | 213,439 | $ | 260,356 | |||||||||||
The Credit Facility consisted of the following as of December 31, 2025 and 2024:
| Total Facility | Borrowings Outstanding | Unused Portion (1) | Amount Available (2) | ||||||||||||||||||||
| December 31, 2025 | $ | 960,000 | $ | 563,660 | $ | 396,340 | $ | 396,340 | |||||||||||||||
| December 31, 2024 | $ | 790,000 | $ | 213,439 | $ | 576,561 | $ | 509,121 | |||||||||||||||
(1)The unused portion is the amount upon which commitment fees are based.
(2)The amount available is based on the computation of collateral to support the borrowings and subject to compliance with applicable covenants and financial ratios.
For the years ended December 31, 2025, 2024, and 2023, the components of interest expense and credit facility fees of the Credit Facility were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Interest expense | $ | 18,599 | $ | 13,195 | $ | 27,189 | |||||||||||
| Facility unused commitment fee | 2,277 | 2,370 | 1,297 | ||||||||||||||
| Amortization of deferred financing costs and debt issuance costs | 1,025 | 856 | 763 | ||||||||||||||
| Total interest expense and credit facility fees | $ | 21,901 | $ | 16,421 | $ | 29,249 | |||||||||||
| Cash paid for interest expense and credit facility fees | $ | 20,391 | $ | 15,446 | $ | 28,645 | |||||||||||
| Weighted average debt principal outstanding | $ | 330,110 | $ | 186,517 | $ | 391,923 | |||||||||||
Weighted average interest rate(1) | 5.56 | % | 6.96 | % | 6.84 | % | |||||||||||
(1)Excludes facility unused commitment fee and amortization of deferred financing costs and debt issuance costs.
As of December 31, 2025 and 2024, the components of interest and credit facility fees payable of the Credit Facility were as follows:
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Interest expense payable | $ | 877 | $ | 88 | |||||||
| Unused commitment fees payable | 558 | 699 | |||||||||
| Interest and credit facility fees payable | $ | 1,435 | $ | 787 | |||||||
| Weighted average interest rate | 5.28 | % | 6.18 | % | |||||||
CSL III SPV Credit Facility
Effective March 27, 2025, as a result of the completion of the CSL III Merger, the Company succeeded to the obligations of CSL III under a senior secured revolving credit facility (as amended, the “CSL III SPV Credit Facility” and together with the Credit Facility, the “Credit Facilities”) previously entered into by CSL III SPV on September 30, 2022. The CSL III SPV Credit Facility was most recently amended on March 27, 2025. The CSL III SPV Credit Facility provided for secured borrowings of up to $250,000, subject to availability under the CSL III SPV Credit Facility and borrowing restrictions under the Investment Company Act. The CSL III SPV Credit Facility had a revolving period through September 30, 2025 and a stated maturity date of September 30, 2030, with a one-year extension option available at the election of CSL III SPV. Borrowings may have been made in U.S. Dollars and bore interest initially at a rate equal to three-month SOFR (or, if applicable, a base rate comprised of the prime rate or the federal funds rate plus 0.50%) plus 2.85%. The SPV also paid an unused commitment fee of 0.30% per annum on unused amounts under the CSL III SPV Credit Facility. Payments of interest and fees were made quarterly.
The CSL III SPV Credit Facility was secured by a first lien security interest on substantially all of the assets of CSL III SPV. The CSL III SPV Credit Facility included customary covenants, limitations on the incurrence of additional indebtedness and liens, and other maintenance requirements, as well as standard events of default for senior secured revolving credit facilities of this nature.
On October 2, 2025, all outstanding borrowings of the CSL III SPV Credit Facility were repaid in full. Upon such repayment, the CSL III SPV Credit Facility was terminated and all commitments and obligations of the lenders were cancelled.
Below is a summary of the borrowings and repayments under the CSL III SPV Credit Facility for the period from March 27, 2025 through October 2, 2025, and the outstanding balance under the CSL III SPV Credit Facility for the period.
For the period from March 27, 2025 through October 2, 2025 | |||||
Outstanding borrowings, beginning of year | $ | — | |||
| CSL III Merger | 206,000 | ||||
| Borrowings | — | ||||
| Repayments | (206,000) | ||||
Outstanding borrowings, end of year | $ | — | |||
For the period from March 27, 2025 through October 2, 2025, the components of interest expense and credit facility fees of the CSL III SPV Credit Facility were as follows:
For the period from March 27, 2025 through October 2, 2025 | ||||||||
| Interest expense | $ | 6,632 | ||||||
| Facility unused commitment fee | 118 | |||||||
| Total interest expense and credit facility fees | $ | 6,750 | ||||||
| Cash paid for interest expense and credit facility fees | $ | 9,264 | ||||||
| Weighted average debt principal outstanding | $ | 175,984 | ||||||
Weighted average interest rate(1) | 7.18 | % | ||||||
(1)Excludes facility unused commitment fee and amortization of deferred financing costs and debt issuance costs.
Senior Notes
On December 30, 2019, the Company closed a private offering of $115.0 million in aggregate principal amount of 4.75% senior unsecured notes due December 31, 2024 (the “2019 Notes”). Interest was payable quarterly, beginning March 31, 2020. On December 11, 2020, the Company issued an additional $75.0 million aggregate principal amount of 4.50% senior unsecured notes due December 31, 2024 (the “2020 Notes” and together with the 2019 Notes, the “2024 Notes”). Interest was payable quarterly, beginning December 31, 2020. The 2024 Notes were repaid in full at maturity on December 31, 2024.
On November 20, 2023, the Company completed a public offering of $85.0 million aggregate principal of its 8.20% senior unsecured notes due December 1, 2028 (the “2028 Notes”), pursuant to an indenture dated November 20, 2023 (the “CGBD Base Indenture”), as supplemented by a first supplemental indenture thereto, dated November 20, 2023 (together, the “2028 Notes Indenture”). The 2028 Notes previously traded on Nasdaq under the symbol CGBDL. On December 1, 2025, the Company redeemed the 2028 Notes at a redemption price equal to 100% of the principal amount redeemed, plus accrued and unpaid interest otherwise payable for the then-current quarterly interest period accrued to, but excluding, December 1, 2025 (the “Redemption Date”). In connection with the redemption, the 2028 Notes were delisted from Nasdaq.
On October 18, 2024, the Company completed a public offering of $300.0 million aggregate principal of its 6.75% senior unsecured notes due February 18, 2030 (the “2030 Notes”), pursuant to the CGBD Base Indenture, as supplemented by a second supplemental indenture thereto, dated October 18, 2024 (together, the “2030 Notes Indenture”). The 2030 Notes may be redeemed in whole or in part at the Company’s option at any time or from time to time at a redemption price equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the notes matured on January 18, 2030) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points less (b) interest accrued to the date of redemption, or (2) 100% of the principal amount of the 2030 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after January 18, 2030, the Company may redeem the 2030 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding the redemption date.
On October 7, 2025, the Company completed a public offering of $300.0 million aggregate principal of its 5.75% senior unsecured notes due February 15, 2031 (the “2031 Notes” and together with the 2024 Notes, 2028 Notes, and 2030 Notes, the “Senior Notes”), pursuant to the CGBD Base Indenture, as supplemented by a third supplemental indenture thereto, dated October 7, 2025 (together, the “2031 Notes Indenture”). The 2031 Notes may be redeemed, in whole or in part, at the Company’s option at any time or from time to time, at a redemption price equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the notes matured on January 15, 2031) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 35 basis points, less (b) interest accrued to the date of redemption, or (2) 100% of the principal amount of the 2031 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after January 15, 2031, the Company may redeem the 2031 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2031 Notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date.
The 2030 Notes and 2031 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.
The following table details the Company’s Senior Notes as of December 31, 2025 and 2024:
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| 2028 Notes | $ | — | $ | 85,000 | |||||||
| 2030 Notes | 300,000 | 300,000 | |||||||||
| 2031 Notes | $ | 300,000 | $ | — | |||||||
| Total principal amount | $ | 600,000 | $ | 385,000 | |||||||
| Less: unamortized debt issuance costs | (9,240) | (8,572) | |||||||||
| Effective interest rate swap hedge | (1,184) | (6,700) | |||||||||
| Total carrying value | $ | 589,576 | $ | 369,728 | |||||||
For the years ended December 31, 2025, 2024, and 2023, the components of interest expense and credit facility fees on the Senior Notes were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Interest expense(1) | $ | 31,458 | $ | 20,144 | $ | 9,660 | |||||||||||
| Amortization of deferred financing costs and debt issuance costs | 4,047 | 1,088 | 199 | ||||||||||||||
| Total interest expense and credit facility fees | $ | 35,505 | $ | 21,232 | $ | 9,859 | |||||||||||
| Cash paid for interest expense and credit facility fees | $ | 23,315 | $ | 16,345 | $ | 8,837 | |||||||||||
| Weighted average debt principal outstanding | $ | 448,466 | $ | 335,956 | $ | 199,574 | |||||||||||
Weighted average interest rate(1)(2) | 6.92 | % | 5.90 | % | 4.77 | % | |||||||||||
(1)Inclusive of net interest expense related to interest rate swaps, as applicable.
(2)Excludes amortization of deferred financing costs and debt issuance costs.
As of December 31, 2025 and December 31, 2024, $12,847 and $4,637, respectively, of interest expense related to the Senior Notes was included in interest and credit facility fees payable. As of December 31, 2025 and 2024, the weighted average interest rates were 6.84% and 6.95%, respectively, inclusive of the effect of the interest rate swaps.
The 2030 Notes Indenture and 2031 Notes Indenture each contain certain covenants, including certain covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a)(2) of the 1940 Act, whether or not the Company continues to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to the Company by the SEC; to comply with Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act, and subject to certain other exceptions. These covenants are subject to important limitations and exceptions that are described in the 2030 Notes Indenture and 2031 Notes Indenture. None of the 2030 Notes Indenture or the 2031 Notes Indenture limits the amount of debt (including secured debt) that may be issued by us or our subsidiaries under the indenture or otherwise. As of December 31, 2025 and 2024, the Company was in compliance with these terms and conditions.
Securitizations
On June 26, 2015, the Company completed the 2015-1 Debt Securitization. The 2015-1 Notes were issued by the 2015-1 Issuer, a wholly owned and consolidated subsidiary of the Company. The 2015-1 Debt Securitization was executed through a private placement of the 2015-1 Notes, consisting of $273,000 in notes that were issued at par and were scheduled to mature on July 15, 2027. The Company received 100% of the $125,900 in nominal value of the non-interest bearing preferred interests issued by the 2015-1 Issuer (the “2015-1 Issuer Preferred Interests”) on the closing date of the 2015-1 Debt Securitization in exchange for the Company’s contribution to the 2015-1 Issuer of the initial closing date loan portfolio. In connection with the contribution, the Company made customary representations, warranties and covenants to the 2015-1 Issuer in the purchase agreement.
On August 30, 2018, the Company and the 2015-1 Issuer closed the 2015-1 Debt Securitization Refinancing. On the closing date of the 2015-1 Debt Securitization Refinancing, the 2015-1 Issuer, refinanced the 2015-1 Notes with the 2015-1R Notes, reduced the 2015-1 Issuer Preferred Interests by approximately $21,375 to approximately $104,525 and extended the reinvestment period end date and maturity date applicable to the 2015-1 Issuer to October 15, 2023 and October 15, 2031, respectively.
Following the 2015-1 Debt Securitization Refinancing, the Company retained the 2015-1 Issuer Preferred Interests. The 2015-1R Notes in the 2015-1 Debt Securitization Refinancing were issued by the 2015-1 Issuer and were secured by a diversified portfolio of the 2015-1 Issuer consisting primarily of first and second lien senior secured loans.
On June 30, 2023, the 2015-1R Notes were amended to transition the benchmark rate to the Term SOFR Rate plus a Term SOFR adjustment (LIBOR prior to the 2015-1R Effective Date, as defined). The amendment was effective at the commencement of the next succeeding interest accrual period following the date of the amendment (the “2015-1R Effective Date”).
On July 2, 2024, the Company and the 2015-1 Issuer completed the 2015-1R Refinancing, which resulted in the issuance of a $410,000 collateralized notes and loan obligation. On the closing date of the 2015-1R Refinancing, the 2015-1 Issuer refinanced the 2015-1R Notes with the 2015-1N Debt, issued additional 2015-1 Issuer Preferred Interests to the Company in the aggregate notional amount of $13,500, increasing the 2015-1 Issuer Preferred Interest held by the Company to
approximately $118,054 and extended the reinvestment period end date and maturity date applicable to the 2015-1 Issuer to July 15, 2028 and July 1, 2036, respectively. As of December 31, 2025, the Company retains the $30,000 Class C-R Notes, which are eliminated in consolidation.
The following table summarizes the terms of the 2015-1N Debt and the principal amount and carrying value as of December 31, 2025 and December 31, 2024:
| As of December 31, | |||||||||||||||||||||||||||||
2015-1N Debt Tranche (1) | Credit Rating | Reference Rate | Spread | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Class A-1-1-A Notes | AAA | SOFR | 1.80% | $ | 240,000 | $ | 240,000 | ||||||||||||||||||||||
| Class A-L Loans | AAA | SOFR | 1.80% | 50,000 | 50,000 | ||||||||||||||||||||||||
| Class A-1-2-B Notes | AAA | SOFR | 2.00% | 20,000 | 20,000 | ||||||||||||||||||||||||
| Class A-2-RR Notes | AA | SOFR | 2.15% | 30,000 | 30,000 | ||||||||||||||||||||||||
| Class B-R Notes | Single A | SOFR | 2.75% | 40,000 | 40,000 | ||||||||||||||||||||||||
| Total Principal Amount Outstanding | $ | 380,000 | $ | 380,000 | |||||||||||||||||||||||||
| Less: unamortized debt issuance costs | (2,026) | (2,218) | |||||||||||||||||||||||||||
| Total Carrying Value | $ | 377,974 | $ | 377,782 | |||||||||||||||||||||||||
(1)Excludes $30 million of Class C-R notes, which are rated BBB-, accrue interest at SOFR plus spread of 3.75%, and are retained by the Company.
The Company contributed the loans that comprised the initial closing date loan portfolio (including the loans distributed to the Company from the SPV) to the 2015-1 Issuer pursuant to a contribution agreement. Future loan transfers from the Company to the 2015-1 Issuer will be made pursuant to a sale agreement and are subject to the approval of the Company’s Board of Directors. Assets of the 2015-1 Issuer are not available to the creditors of the SPV or the Company. In connection with the issuance and sale of the 2015-1R Notes and 2015-1N Debt, the Company made customary representations, warranties and covenants in the purchase agreement.
During the reinvestment period, pursuant to the indenture governing the 2015-1R Notes and 2015-1N Debt, all principal collections received on the underlying collateral may be used by the 2015-1 Issuer to purchase new collateral under the direction of Investment Adviser in its capacity as collateral manager under a collateral management agreement (the “Collateral Management Agreement”) of the 2015-1 Issuer and in accordance with the Company’s investment strategy.
Pursuant to the Collateral Management Agreement, the 2015-1 Issuer pays management fees (comprised of base management fees, subordinated management fees and incentive management fees) to the Investment Adviser for rendering collateral management services. As per the Collateral Management Agreement, for the period the Company retains all of the 2015-1 Issuer Preferred Interests, the Investment Adviser does not earn management fees for providing such collateral management services. The Company currently retains all of the 2015-1 Issuer Preferred Interests, thus the Investment Adviser did not earn any management fees from the 2015-1 Issuer for the years ended December 31, 2025 and 2024. Any such waived fees may not be recaptured by the Investment Adviser.
Pursuant to an undertaking by the Company in connection with the 2015-1 Debt Securitization Refinancing, the Company has agreed to hold on an ongoing basis the 2015-1 Issuer Preferred Interests with an aggregate dollar purchase price at least equal to 5% of the aggregate outstanding amount of all collateral obligations by the 2015-1 Issuer for so long as any securities of the 2015-1 Issuer remain outstanding. As of December 31, 2025, the Company was in compliance with its undertaking.
As of December 31, 2025, the 2015-1N Debt was secured by 67 investments with a total fair value of approximately $487,820, including $13,004 of net purchases that were unsettled as of December 31, 2025, and cash of $29,764. The pool of investments in the securitization must meet certain requirements, including asset mix and concentration, term, agency rating, collateral coverage, minimum coupon, minimum spread and sector diversity requirements in the indenture governing the 2015-1N Debt.
For the years ended December 31, 2025, 2024, and 2023, the components of interest expense and credit facility fees on the Securitizations were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Interest expense | $ | 23,738 | $ | 29,373 | $ | 32,356 | |||||||||||
| Amortization of deferred financing costs and debt issuance costs | 192 | 1,459 | 247 | ||||||||||||||
| Total interest expense and credit facility fees | $ | 23,930 | $ | 30,832 | $ | 32,603 | |||||||||||
| Cash paid for interest expense and credit facility fees | $ | 24,357 | $ | 31,836 | $ | 30,875 | |||||||||||
| Weighted average debt principal outstanding | $ | 380,000 | $ | 398,459 | $ | 449,200 | |||||||||||
Weighted average interest rate(1) | 6.21 | % | 7.61 | % | 7.16 | % | |||||||||||
(1)Includes amortization of deferred financing costs and debt issuance costs.
As of December 31, 2025 and 2024, $4,810 and $5,429, respectively, of interest expense related to securitizations was included in interest and credit facility fees payable. As of December 31, 2025 and 2024, the weighted average interest rates were 5.84% and 6.59%, respectively, based on benchmark rates.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.