Carlyle Secured Lending, Inc.

Previous wording

We use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may,” “plans,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and condition could differ materially from those implied or expressed in the forward-looking information for any reason, including the factors set forth in “Risk Factors” in Part I, Item 1A of our annual report on Form 10-K for the year ended December 31, 2025 (or “2025 Form 10-K”).

Current wording

We use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may,” “plans,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and condition could differ materially from those implied or expressed in the forward-looking information for any reason, including the factors set forth in “Risk Factors” in Part I, Item 1A of our annual report on Form 10-K for the year ended December 31, 2025 (our “2025 Form 10-K”).

Previous wording

Our investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through assembling a portfolio of secured debt investments in U.S. middle market companies. Our core investment strategy focuses on lending to U.S. middle market companies, which we define as companies with approximately $25.0 million or greater of earnings before interest, taxes, depreciation and amortization (“EBITDA”), supported by financial sponsors. This core strategy is opportunistically supplemented with differentiated and complementary lending and investing strategies, which take advantage of the broad capabilities of Carlyle's Global Credit platform while offering risk-diversifying portfolio benefits. We seek to achieve our investment objective primarily through direct origination of secured debt instruments, including first lien senior secured loans (which may include stand-alone first lien loans, first lien/last out loans and “unitranche” loans) and second lien senior secured loans (collectively, “Middle Market Senior Loans”), with a minority of our assets invested in higher yielding investments (which may include unsecured debt, subordinated debt and investments in equities and structured products). The Middle Market Senior Loans are generally made to private U.S. middle market companies that are, in many cases, controlled by private equity firms.

Current wording

Our investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through assembling a portfolio of secured debt investments in U.S. middle market companies. Our core investment strategy focuses on lending to U.S. middle market companies, which we define as companies with approximately $25 million or greater of earnings before interest, taxes, depreciation and amortization (“EBITDA”), supported by financial sponsors. This core strategy is opportunistically supplemented with differentiated and complementary lending and investing strategies, which take advantage of the broad capabilities of Carlyle's Global Credit platform while offering risk-diversifying portfolio benefits. We seek to achieve our investment objective primarily through direct origination of secured debt instruments, including first lien senior secured loans (which may include stand-alone first lien loans, first lien/last out loans and “unitranche” loans) and second lien senior secured loans (collectively, “Middle Market Senior Loans”), with a minority of our assets invested in higher yielding investments (which may include unsecured debt, subordinated debt and investments in equities and structured products). The Middle Market Senior Loans are generally made to private U.S. middle market companies that are, in many cases, controlled by private equity firms.

Previous wording

We are externally managed by the Investment Adviser, an investment adviser registered under the Investment Advisers Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Advisers Act”) and a subsidiary of Carlyle. We benefit from the Investment Adviser’s investment team of over 210 investment professionals with deep knowledge and expertise across multiple asset classes who are supported by a team of finance, operations and administrative professionals currently employed by Carlyle Employee Co., a wholly owned subsidiary of Carlyle. In conducting our investment activities, we believe that we benefit from the significant scale, relationships and resources of Carlyle, including the Investment Adviser and its affiliates.

Current wording

We are externally managed by the Investment Adviser, an investment adviser registered under the Investment Advisers Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Advisers Act”) and a subsidiary of Carlyle. We benefit from the Investment Adviser’s investment team of over 215 investment professionals with deep knowledge and expertise across multiple asset classes who are supported by a team of finance, operations and administrative professionals currently employed by Carlyle Employee Co., a wholly owned subsidiary of Carlyle. In conducting our investment activities, we believe that we benefit from the significant scale, relationships and resources of Carlyle, including the Investment Adviser and its affiliates.

Previous wording

•Adjusted for purchase accounting adjustments, the adjusted net investment income per common share (a non-GAAP financial measure) was $0.36. Refer to the Adjusted Net Investment Income and Adjusted Net Income discussion within this section for further details.

Current wording

•Adjusted for purchase accounting adjustments, the adjusted net investment income per common share (a non-GAAP financial measure) was $0.35. Refer to the Adjusted Net Investment Income and Adjusted Net Income discussion within this section for further details.

Previous wording

•For the first quarter, dividends declared on common shares were $28.1 million, or $0.40 per share.

Current wording

•For the second quarter, dividends declared on common shares were $24.2 million, or $0.35 per share.

Previous wording

•Net investment income for the three months ended March 31, 2026 increased from the comparable period in the prior year primarily driven by a higher average outstanding investment balance due to net origination activity over the last twelve months, including assets acquired in the CSL III Merger and the Credit Fund II Purchase in the first quarter of 2025. This was partially offset by lower yields on investments.

Current wording

•Net investment income for the three months ended June 30, 2026 decreased from the comparable period in the prior year primarily driven by lower yields on investments. This was partially offset by a higher average outstanding investment balance due to net origination activity over the last twelve months.

Previous wording

•The NAV per common share decreased to $15.89 as of March 31, 2026 from $16.26 as of December 31, 2025.

Current wording

•The NAV per common share decreased to $15.61 as of June 30, 2026 from $15.89 as of March 31, 2026.

Previous wording

•As of March 31, 2026, we held 248 investments across 171 portfolio companies and 31 industries for a total fair value of $2.3 billion.

Current wording

•As of June 30, 2026, we held 263 investments across 177 portfolio companies and 31 industries for a total fair value of $2.4 billion.

Previous wording

•During the three months ended March 31, 2026, our investment balance decreased from $2.5 billion to $2.3 billion primarily due to sales to Credit Fund.

Current wording

•During the three months ended June 30, 2026, our investment balance increased from $2.3 billion to $2.4 billion primarily due to net origination activity.

Previous wording

•As of March 31, 2026, non-accrual investments represented 1.0% and 0.9% of our portfolio based on cost and fair value, respectively.

Current wording

•As of June 30, 2026, non-accrual investments represented 1.2% and 0.6% of our portfolio based on cost and fair value, respectively.

Previous wording

•Total liquidity as of March 31, 2026 was $641.9 million in cash and unused debt capacity.

Current wording

•Total liquidity as of June 30, 2026 was $592.2 million in cash and unused debt capacity.

Previous wording

•During the three months ended March 31, 2026, we repurchased 1,536,254 shares of our common stock for an aggregate purchase price of approximately $18.5 million, resulting in accretion to NAV per common share of approximately $0.09.

Current wording

•During the three months ended June 30, 2026, we repurchased 1,110,122 shares of our common stock for an aggregate purchase price of approximately $12.5 million, resulting in accretion to NAV per common share of approximately $0.07.

Previous wording

•From April 1, 2026 through May 8, 2026, we repurchased 773,808 shares of our common stock for an aggregate purchase price of approximately $8.8 million resulting in $0.09 per common share of NAV accretion.

Current wording

•From July 1, 2026 through August 5, 2026, we repurchased 356,233 shares of our common stock for an aggregate purchase price of approximately $3.7 million resulting in $0.03 per common share of NAV accretion.

Previous wording

As a BDC, we believe that the key components of our results of operations for our business are earnings per share, dividends declared, net investment income and net asset value per common share. For the three months ended March 31, 2026, we recorded basic earnings per common share of $(0.06), declared a dividend of $0.40 per common share and earned $0.36 of net investment income per common share.

Current wording

As a BDC, we believe that the key components of our results of operations for our business are earnings per share, dividends declared, net investment income and net asset value per common share. For the three months ended June 30, 2026, we recorded basic earnings per common share of $0.00, declared a dividend of $0.35 per common share and earned $0.35 of net investment income per common share.

Previous wording

For the three months ended March 31, 2026 and December 31, 2025, we declared dividends per common share of $0.40 in each period. As of March 31, 2026 and December 31, 2025, our NAV per share was $15.89 and $16.26, respectively.

Current wording

For the three months ended June 30, 2026 and March 31, 2026, we declared dividends per common share of $0.35 and $0.40, respectively. As of June 30, 2026 and December 31, 2025, our NAV per share was $15.61 and $16.26, respectively.

Previous wording

(2)This adjustment represents the difference between GAAP amortization under the asset acquisition method of accounting, in accordance with ASC 805 and management’s non-GAAP measure of amortization related to assets acquired in connection with the CSL III Merger on March 27, 2025, and the Credit Fund II Purchase on February 11, 2025. This adjustment reflects management’s view of the economic yield on the acquired assets and is consistent with the internal evaluation of performance.

Current wording

(1)This adjustment represents the difference between GAAP amortization under the asset acquisition method of accounting, in accordance with ASC 805 and management’s non-GAAP measure of amortization related to assets acquired in connection with the CSL III Merger on March 27, 2025, and the Credit Fund II Purchase on February 11, 2025. This adjustment reflects management’s view of the economic yield on the acquired assets and is consistent with the internal evaluation of performance.

Previous wording

(1)Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of March 31, 2026. Weighted average yield at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount (“OID”) and market discount earned, divided by (b) total fair value included in such securities. Weighted average yield at amortized cost is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned, divided by (b) total amortized cost included in such securities. Weighted average yields exclude investments on non-accrual status. Actual yields earned over the life of each investment could differ materially from the yields presented above. Inclusive of all debt and income producing investments and investments on non-accrual status, the weighted average yield on amortized cost was 9.9% as of March 31, 2026.

Current wording

(1)Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of June 30, 2026. Weighted average yield at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount (“OID”) and market discount earned, divided by (b) total fair value included in such securities. Weighted average yield at amortized cost is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned, divided by (b) total amortized cost included in such securities. Weighted average yields exclude investments on non-accrual status. Actual yields earned over the life of each investment could differ materially from the yields presented above. Inclusive of all debt and income producing investments and investments on non-accrual status, the weighted average yield on amortized cost was 10.2% as of June 30, 2026.

Previous wording

As of March 31, 2026 and December 31, 2025, the weighted average Internal Risk Rating of our first lien and second lien debt investment portfolio was 2.1. As of March 31, 2026 and December 31, 2025, five and six of our first lien and second lien debt investments were assigned an Internal Risk Rating of 4 or 5, respectively.

Current wording

As of both June 30, 2026 and December 31, 2025, the weighted average Internal Risk Rating of our first lien and second lien debt investment portfolio was 2.1. As of both June 30, 2026 and December 31, 2025, six of our first lien and second lien debt investments were assigned an Internal Risk Rating of 4 or 5.

Previous wording

On March 21, 2014, we closed on a senior secured revolving credit facility (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, we increased the total commitments under the Credit Facility by $25,000, resulting in total commitments increasing to $960,000 ($935,000 prior to the July 10, 2025 increase), pursuant to the terms of the agreement, subject to availability under the Credit Facility, which is based on certain advance rates multiplied by the value of our portfolio investments (subject to certain concentration limitations) net of certain other indebtedness that we 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, subject to certain conditions, to $1,402,500 through the exercise by us 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 limit for swingline loans and a $30,000 limit for letters of credit. Subject to certain exceptions, the Credit Facility is secured by a first lien security interest in substantially all of the portfolio investments held by us and Credit Fund II. 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.

Current wording

On March 21, 2014, we closed on a senior secured revolving credit facility (the “Credit Facility”), which was most recently amended and restated on March 12, 2025, and may be further amended from time to time. The total commitments under the Credit Facility are $875,457 ($960,000 prior to the May 25, 2026 expiration of $135,000 of the commitments, of which $50,457 remained outstanding as of June 30, 2026 and matures on May 25, 2027), pursuant to the terms of the agreement, subject to availability under the Credit Facility, which is based on certain advance rates multiplied by the value of our portfolio investments (subject to certain concentration limitations) net of certain other indebtedness that we 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, subject to certain conditions, to $1,402,500 through the exercise by us 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 limit for swingline loans and a $30,000 limit for letters of credit. Subject to certain exceptions, the Credit Facility is secured by a first lien security interest in substantially all of the portfolio investments held by us and Credit Fund II. 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.

Previous wording

Since inception of Credit Fund and through March 31, 2026, we and Credit Partners each made capital contributions of $1 in members’ equity and $216,000 in subordinated loans to Credit Fund. On March 24, 2025, we and Credit Partners each received an aggregate return of capital on subordinated loans of $62,500. Since inception, we and Credit Partners each have received an aggregate return of capital on subordinated loans of $85,500. The cost and fair value of our investment in Credit Fund were $130,501 and $122,983, respectively, as of March 31, 2026 and $171,001 and $163,614, respectively, as of December 31, 2025.

Current wording

Since inception of Credit Fund and through June 30, 2026, we and Credit Partners each made capital contributions of $1 in members’ equity and $216,000 in subordinated loans to Credit Fund. On March 24, 2025, we and Credit Partners each received an aggregate return of capital on subordinated loans of $62,500. Since inception, we and Credit Partners each have received an aggregate return of capital on subordinated loans of $85,500. The cost and fair value of our investment in Credit Fund were $130,501 and $123,753, respectively, as of June 30, 2026 and $171,001 and $163,614, respectively, as of December 31, 2025.

Previous wording

Our share of the dividends declared by Credit Fund was $5,000 for the three months ended March 31, 2026 and $5,000 for the three months ended December 31, 2025. As of both March 31, 2026 and December 31, 2025, our annualized dividend yield from Credit Fund was 15.3%. Below is a summary of Credit Fund’s portfolio as of March 31, 2026 and December 31, 2025:

Current wording

Our share of the dividends declared by Credit Fund was $5,750 and $5,000 for the three months ended June 30, 2026 and March 31, 2026, respectively. As of June 30, 2026 and March 31, 2026, our annualized dividend yield from Credit Fund was 17.6% and 15.3%, respectively. Below is a summary of Credit Fund’s portfolio as of June 30, 2026 and December 31, 2025:

Previous wording

On December 23, 2025, we, together with CARS, an affiliated BDC, and Sixth Street (collectively, the “SCP Members”), entered into an amended and restated limited liability company agreement, as amended from time to time, to co-manage Structured Credit Partners, a Delaware limited liability company that is not consolidated in our consolidated financial statements. Structured Credit Partners is managed by a board consisting of eight members, on which each Member has equal representation. The SCP Members each hold 25% voting interests through non-economic Class A membership interests. Economic interests are based on funded capital contributions and capital commitments through Class B and Class C membership as follows:

Current wording

On December 23, 2025, we, together with CARS, an affiliated BDC, and Sixth Street (collectively, the “SCP Members”), entered into an amended and restated limited liability company agreement, as amended from time to time, to co-manage Structured Credit Partners, a Delaware limited liability company that is not consolidated in our consolidated financial statements. Structured Credit Partners is managed by a board consisting of eight members, on which each Member has equal representation. The SCP Members each hold 25% voting interests through non-economic Class A membership interests. Economic interests are based on funded capital contributions and capital commitments through Class B and Class C membership interests as follows:

Previous wording

Our share of the dividends declared by Structured Credit Partners was $302 for the three months ended March 31, 2026. As of March 31, 2026, our annualized dividend yield from Structured Credit Partners was 10.7%.

Current wording

Our share of the dividends declared by Structured Credit Partners was $2,282 and $302 for the three months ended June 30, 2026 and March 31, 2026, respectively. As of June 30, 2026 and March 31, 2026, our annualized dividend yield from Structured Credit Partners was 18.7% and 10.7%, respectively. Below is a summary of Structured Credit Partners’ portfolio as of June 30, 2026:

Previous wording

The decrease in investment income for the three months ended March 31, 2026, as compared to the three months ended December 31, 2025, was primarily driven by a lower weighted average yield on the portfolio and a lower average outstanding principal balance. As of March 31, 2026, the size of our portfolio decreased to $2,306,378 from $2,469,396 as of December 31, 2025, at amortized cost. As of March 31, 2026 and December 31, 2025, the weighted average yield of our total debt and income producing investments was 10.0% and 10.1%, respectively, based on amortized cost.

Current wording

The decrease in investment income for the three months ended June 30, 2026, as compared to the three months ended March 31, 2026, was primarily driven by a lower average principal balance of our total debt and income-producing investments and lower other income, partially offset by an increase in dividend income from Credit Fund and Structured Credit Partners. As of June 30, 2026, our portfolio at amortized cost increased to $2,414,341 from $2,306,378 as of March 31, 2026. As of June 30, 2026 and March 31, 2026, the weighted average yield of our total debt and income producing investments was 10.4% and 10.0%, respectively, based on amortized cost.

Previous wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of March 31, 2026 and December 31, 2025, six and seven of our debt and preferred equity investments, respectively, were on non-accrual status. As of March 31, 2026 and December 31, 2025, non-accrual investments had a fair value of $20,617 and $30,541, which represented approximately 0.9% and 1.2% of total investments at fair value, respectively. The remaining income producing investments were performing and current on their interest payments as of March 31, 2026 and December 31, 2025.

Current wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of June 30, 2026 and March 31, 2026, eight and six of our debt and preferred equity investments were on non-accrual status, respectively. As of June 30, 2026 and March 31, 2026, non-accrual investments had a fair value of $13,765 and $20,617, which represented approximately 0.6% and 0.9% of total investments at fair value, respectively. The remaining income producing investments were performing and current on their interest payments as of June 30, 2026 and March 31, 2026.

Previous wording

The increase in other income for the three months ended March 31, 2026, compared to the three months ended December 31, 2025, was primarily driven by an increase in prepayment fees.

Current wording

The decrease in other income for the three months ended June 30, 2026, compared to the three months ended March 31, 2026, was primarily driven by a decrease in prepayment fees.

Previous wording

The decrease in interest expense and credit facility fees was primarily driven by lower base rates and the acceleration of debt issuance cost during the three months ended December 31, 2025.

Current wording

The decrease in interest expense and credit facility fees was primarily driven by a lower average principal balance during the three months ended June 30, 2026.

Previous wording

The increase in incentive fees was driven by higher pre-incentive fee net investment income for the three months ended March 31, 2026 compared to the three months ended December 31, 2025.

Current wording

The decrease in incentive fees was driven by lower pre-incentive fee net investment income for the three months ended June 30, 2026 compared to the three months ended March 31, 2026.

Previous wording

During the three months ended March 31, 2026, we recognized a net realized loss related to the restructuring of our investments in 48forty Intermediate Holdings, Inc. During the three months ended December 31, 2025, we recognized a realized net loss related to the sale of Comar Holding Company, LLC and the sale of our investment in iRobot Corporation.

Current wording

During the three months ended June 30, 2026, we recognized a net realized loss related to the restructuring of our investments in DCA Investment Holding LLC. During the three months ended March 31, 2026, we recognized a net realized loss related to the restructuring of our investments in 48forty Intermediate Holdings, Inc.

Previous wording

The following table sets forth information regarding our consolidated results of operations for the three months ended March 31, 2026 and March 31, 2025:

Current wording

The following table sets forth information regarding our consolidated results of operations for the three and six months ended June 30, 2026 and June 30, 2025:

Previous wording

The increase in investment income for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily driven by a higher average outstanding investment balance due to net origination activity over the last twelve months, including assets acquired in the CSL III Merger and the Credit Fund II Purchase in the first quarter of 2025. This was partially offset by lower yields on investments. As of March 31, 2026, the size of our portfolio increased to $2,306,378 from $2,273,998 as of March 31, 2025, at amortized cost. As of March 31, 2026 and March 31, 2025, the weighted average yield of our total debt and income producing investments was 10.0% and 10.9%, respectively, based on amortized cost.

Current wording

The decrease in investment income for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily driven by a lower weighted average yield on our total debt and income producing investments. The increase in investment income for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily driven by a higher average outstanding investment balance, including assets acquired in the CSL III Merger and the Credit Fund II Purchase in the first quarter of 2025. As of June 30, 2026, our portfolio at amortized cost increased to $2,414,341 from $2,366,445 as of June 30, 2025. As of June 30, 2026 and June 30, 2025, the weighted average yield of our total debt and income producing investments was 10.4% and 10.9%, respectively, based on amortized cost.

Previous wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of March 31, 2026 and March 31, 2025, six and five of our debt and preferred equity investments were on non-accrual status, respectively. Non-accrual investments had a fair value of $20,617 and $36,622, which represented approximately 0.9% and 1.6% of total investments at fair value as of March 31, 2026 and March 31, 2025, respectively. The remaining income producing investments were performing and current on their interest payments as of March 31, 2026 and March 31, 2025.

Current wording

Interest income and PIK income on our first and second lien debt investments are dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each loan’s credit agreement. As of June 30, 2026 and June 30, 2025, eight and six of our debt and preferred equity investments were on non-accrual status, respectively. Non-accrual investments had a fair value of $13,765 and $48,069, which represented approximately 0.6% and 2.1% of total investments at fair value as of June 30, 2026 and June 30, 2025, respectively. The remaining income producing investments were performing and current on their interest payments as of June 30, 2026 and June 30, 2025.

Previous wording

The increase in other income for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily driven by an increase in prepayment fees.

Current wording

The decrease in other income for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily driven by a decrease in prepayment fees and amendment fees. The increase in other income for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily driven by an increase in prepayment fees in the first quarter of 2026.

Previous wording

The increase in interest expense and credit facility fees for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily driven by a higher average principal balance during the three months ended March 31, 2026.

Current wording

The decrease in interest expense and credit facility fees for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was primarily driven by a lower weighted average cost of borrowings during the three months ended June 30, 2026. The increase in interest expense and credit facility fees for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily driven by a higher average principal balance during the six months ended June 30, 2026.

Previous wording

The increase in base management fees for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was driven by a higher average gross assets for the three months ended March 31, 2026.

Current wording

The decrease in base management fees for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was driven by a lower average gross assets for the three months ended June 30, 2026. The increase in base management fees for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was driven by a higher average gross assets for the six months ended June 30, 2026.

Previous wording

For the three months ended March 31, 2026, there were no accrued capital gains incentive fees based upon the cumulative net realized and unrealized appreciation (depreciation) as of March 31, 2026. The accrual for any capital gains incentive fee under U.S. GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. See Note 4, Related Party Transactions, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on the incentive and base management fees.

Current wording

For the three and six months ended June 30, 2026, there were no accrued capital gains incentive fees based upon the cumulative net realized and unrealized appreciation (depreciation) as of June 30, 2026. The accrual for any capital gains incentive fee under U.S. GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. See Note 4, Related Party Transactions, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on the incentive and base management fees.

Previous wording

The amount of and number of investments with realized gain (loss) and change in unrealized appreciation (depreciation) for the three months ended March 31, 2026 and March 31, 2025 were as follows:

Current wording

The amount of and number of investments with realized gain (loss) and change in unrealized appreciation (depreciation) for the three and six months ended June 30, 2026 and June 30, 2025 were as follows:

Previous wording

During the three months ended March 31, 2026, we recognized a net realized loss related to the restructuring of our investments in 48forty Intermediate Holdings, Inc. During the three months ended March 31, 2025, we recognized a realized loss related to the restructuring of our investment in Aimbridge Acquisition Co., Inc. and the consolidation of our investment in Credit Fund II as a result of Credit Fund II Purchase.

Current wording

During the six months ended June 30, 2026, we recognized a net realized loss related to the restructurings of our investments in 48forty Intermediate Holdings, Inc. and DCA Investment Holding LLC. During the six months ended June 30, 2025, we recognized a realized loss related to the restructuring of our investment in Aimbridge Acquisition Co., Inc. and the consolidation of our investment in Credit Fund II as a result of Credit Fund II Purchase.

Previous wording

We have capitalized our business to date primarily through the issuance and sale of our common stock, asset-level financing, and the issuance of unsecured senior debt. As of March 31, 2026, we had $1,395,319 of outstanding consolidated indebtedness under the Credit Facility, the 2015-1N Debt, the 2030 Notes, and the 2031 Notes as previously discussed within Portfolio and Investment Activity - Portfolio Financing. As of March 31, 2026, we had $641,873 of liquidity that can be used to satisfy our short-term cash requirements and working capital for our business. Refer to Note 9, Borrowings, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our financing.

Current wording

We have capitalized our business to date primarily through the issuance and sale of our common stock, asset-level financing, and the issuance of unsecured senior debt. As of June 30, 2026, we had $1,312,137 of outstanding consolidated indebtedness under the Credit Facility, the 2015-1N Debt, the 2030 Notes, and the 2031 Notes as previously discussed within Portfolio and Investment Activity - Portfolio Financing. As of June 30, 2026, we had $592,176 of liquidity that can be used to satisfy our short-term cash requirements and working capital for our business. Refer to Note 9, Borrowings, to the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our financing.

Previous wording

(1) Net financial leverage adjusts for net working capital at period end, which was $214.5 million and $225.8 million as of March 31, 2026 and December 31, 2025, respectively.

Current wording

(1) Net financial leverage adjusts for net working capital at period end, which was $12.1 million and $214.5 million as of June 30, 2026 and December 31, 2025, respectively.