Quarterly report pursuant to Section 13 or 15(d)

Borrowings (Tables)

v3.24.3
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Outstanding Debt Obligations
The following table presents information on the 2023 Debt Securitization:

Description Type Principal Outstanding Interest Rate Credit Rating
Class A Notes Senior Secured Floating Rate $ 246,500 
SF + 2.60%
 AAA
Class B Notes Senior Secured Floating Rate 42,500 
SF + 3.35%
 AA
Class C Notes Secured Deferrable Floating Rate 34,000 
SF + 4.15%
 A
Total Secured Notes $ 323,000 
Subordinated Notes(1)
106,100  None Not rated
Total Notes $ 429,100 
(1)The Company retained all of the 2023 CLO Subordinated Notes issued in the 2023 Debt Securitization which are eliminated in consolidation.
The following table presents information on the 2024 Debt Securitization:

Description Type Principal Outstanding Interest Rate Credit Rating Price
Class A-1 Notes
 Senior Secured Floating Rate $ 255,000 
SF + 0.250%
 AAA(sf) 93.22
Class A-2 Notes
 Senior Secured Floating Rate 40,850
SF + 1.875%
 AAA(sf) 100.00
Class A-F Notes
 Senior Secured Fixed Rate 9,150 6.275% AAA(sf) 100.00
Class B-1 Notes
 Senior Secured Floating Rate 35,000
SF + 0.500%
 AA(sf) 89.93
Class B-2 Notes
 Senior Secured Floating Rate 13,500
SF + 2.400%
 AA(sf) 100.00
Class B-F Notes
 Senior Secured Fixed Rate 1,500 6.714% AA(sf) 100.00
Class C-1 Notes
 Secured Deferrable Floating Rate 31,500
SF + 0.750%
 A(sf) 86.54
Class C-2 Notes
 Secured Deferrable Floating Rate 12,150
SF + 3.200%
 A(sf) 100.00
Class C-F Notes
 Secured Deferrable Fixed Rate 1,350 7.490% A(sf) 100.00
Total Secured Notes $ 400,000 
Subordinated Notes(1)
126,000
None
 Not Rated None
Total Notes $ 526,000 
(1)The Company retained all of the 2024 CLO Subordinated Notes issued in the 2024 Debt Securitization which are eliminated in consolidation.
The Company’s outstanding debt obligations were as follows:
September 30, 2024
Aggregate
Principal
Committed		 Outstanding
Principal		 Carrying
Value
Unused
Portion(1)
Amount
Available(2)
HLEND A Funding Facility(3)
$ 800,000  $ 608,781  $ 608,781  $ 191,219  $ 11,932 
HLEND B Funding Facility(3)
1,250,000  763,388  763,388  486,612  29,662 
HLEND C Funding Facility 750,000  487,500  487,500  262,500  17,482 
HLEND D Funding Facility 500,000  275,000  275,000  225,000  61,945 
HLEND E Funding Facility 300,000  —  —  300,000  175,061 
Revolving Credit Facility(3)
1,375,000  675,773  675,773  699,227  699,227 
November 2025 Notes(4)
170,000  170,000  169,255  —  — 
November 2027 Notes(4)
155,000  155,000  154,838  —  — 
March 2026 Notes(5)
276,000  276,000  277,137  —  — 
March 2028 Notes(5)
124,000  124,000  125,205  —  — 
September 2027 Notes(6)
75,000  75,000  76,275  —  — 
September 2028 Notes(6)
250,000  250,000  255,529  —  — 
January 2029 Notes(7)
550,000  550,000  548,498  —  — 
September 2029 Notes(8)
400,000  400,000  404,602  —  — 
2023 CLO Secured Notes(9)
323,000  323,000  319,949  —  — 
2024 CLO Secured Notes(10)
400,000  400,000  374,921  —  — 
Total $ 7,698,000  $ 5,533,442  $ 5,516,651  $ 2,164,558  $ 995,309 
(1)The unused portion is the amount upon which commitment fees, if any, are based.
(2)The amount available reflects any limitations related to each respective credit facility’s borrowing base.
(3)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date.

Under the HLEND A Funding Facility, as of September 30, 2024, the Company had outstanding borrowings denominated in the following non-USD currencies:
•Australian Dollars (AUD) of 94.4 million
•British Pounds (GBP) of 42.9 million
Under the HLEND B Funding Facility, as of September 30, 2024, the Company had outstanding borrowings denominated in the following non-USD currencies:
•Euros (EUR) of 3.4 million
•Australian Dollars (AUD) of 25.5 million
•British Pounds (GBP) of 90.3 million
Under the Revolving Credit Facility, as of September 30, 2024, the Company had outstanding borrowings denominated in the following non-USD currencies:
•Euros (EUR) of 130.3 million
•British Pounds (GBP) of 64.2 million
(4)The carrying value of the Company's November 2025 Notes and November 2027 Notes are presented net of unamortized debt issuance costs of $(0.7) million and $(1.1) million, respectively, as of September 30, 2024 and includes the change in the notes carrying value of $(0.0) million and $0.9 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(5)The carrying value of the Company's March 2026 Notes and March 2028 Notes are presented net of unamortized debt issuance costs of $(1.2) million and $(0.8) million, respectively, as of September 30, 2024 and includes the change in the notes carrying value of $2.4 million and $2.0 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(6)The carrying value of the Company's September 2027 Notes and September 2028 Notes are presented net of unamortized debt issuance costs of $(0.6) million and $(2.1) million, respectively, as of September 30, 2024 and includes the change in the notes carrying value of $1.9 million and $7.6 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(7)The carrying value of the Company's January 2029 Notes are presented net of unamortized debt issuance costs and original issue discount of $(10.9) million as of September 30, 2024 and includes the change in the notes carrying value of $9.4 million as a result of the qualifying fair value hedge relationship as described above.
(8)The carrying value of the Company's September 2029 Notes are presented net of unamortized debt issuance costs and original issue discount of $(9.1) million as of September 30, 2024 and includes the change in the notes carrying value of $13.7 million as a result of the qualifying fair value hedge relationship as described above.
(9)The carrying value of the Company's 2023 CLO Secured Notes are presented net of unamortized debt issuance costs of $(3.1) million as of September 30, 2024.
(10)The carrying value of the Company's 2024 CLO Secured Notes are presented net of unamortized debt issuance costs and original issue discount of $(25.1) million as of September 30, 2024.

December 31, 2023
Aggregate
Principal
Committed		 Outstanding
Principal		 Carrying
Value
Unused
Portion(1)
Amount
Available(2)
HLEND A Funding Facility(3)
$ 800,000  $ 615,838  $ 615,838  $ 184,162  $ 38,218 
HLEND B Funding Facility(3)
1,000,000  513,747  513,747  486,253  356,891 
HLEND C Funding Facility 750,000  487,500  487,500  262,500  12,576 
HLEND D Funding Facility 500,000  195,000  195,000  305,000  205,018 
Revolving Credit Facility(3)
1,275,000  1,025,294  1,025,294  249,706  249,706 
November 2025 Notes(4)
170,000  170,000  168,749  —  — 
November 2027 Notes(4)
155,000  155,000  154,366  —  — 
March 2026 Notes(5)
276,000  276,000  274,716  —  — 
March 2028 Notes(5)
124,000  124,000  123,588  —  — 
September 2027 Notes(6)
75,000  75,000  75,545  —  — 
September 2028 Notes(6)
250,000  250,000  252,814  —  — 
2023 CLO Secured Notes(7)
323,000  323,000  319,743  —  — 
Total $ 5,698,000  $ 4,210,379  $ 4,206,900  $ 1,487,621  $ 862,409 
(1)The unused portion is the amount upon which commitment fees, if any, are based.
(2)The amount available reflects any limitations related to each respective credit facility’s borrowing base.
(3)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date.
Under the HLEND A Funding Facility, as of December 31, 2023, the Company had outstanding borrowings denominated in the following non-USD currencies:
•Euros (EUR) of 7.5 million
•Australian Dollars (AUD) of 156.0 million
•British Pounds (GBP) of 42.9 million
Under the HLEND B Funding Facility, as of December 31, 2023, the Company had outstanding borrowings denominated in the following non-USD currencies:
•Euros (EUR) of 3.4 million
•Australian Dollars (AUD) of 108.0 million
•British Pounds (GBP) of 90.3 million
Under the Revolving Credit Facility, as of December 31, 2023, the Company had outstanding borrowings denominated in the following non-USD currencies:
•Euros (EUR) of 312.1 million
•Australian Dollars (AUD) of 95.2 million
•Canadian Dollars (CAD) of 47.1 million
•British Pounds (GBP) of 64.2 million
(4)The carrying value of the Company's November 2025 Notes and November 2027 Notes are presented net of unamortized debt issuance costs of $(1.2) million and $(1.4) million, respectively, as of December 31, 2023 and includes the change in the notes carrying value of $(0.0) million and $0.7 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(5)The carrying value of the Company's March 2026 Notes and March 2028 Notes are presented net of unamortized debt issuance costs of $(1.8) million and $(0.9) million, respectively, as of December 31, 2023 and includes the change in the notes carrying value of $0.6 million and $0.5 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(6)The carrying value of the Company's September 2027 Notes and September 2028 Notes are presented net of unamortized debt issuance costs of $(0.7) million and $(2.5) million, respectively, as of December 31, 2023 and includes the change in the notes carrying value of $1.3 million and $5.3 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(7)The carrying value of the Company's 2023 CLO Secured Notes are presented net of unamortized debt issuance costs of $(3.3) million as of December 31, 2023.
Schedule of Components of Interest Expense
The components of interest expense were as follows:

Three Months Ended September 30,
2024 2023
Borrowing interest expense $ 91,203  $ 61,156 
Facility unused fees 3,268  1,254 
Amortization of deferred financing costs 1,686  1,720 
Amortization of original issue discount and debt issuance costs 3,222  553 
Gain (loss) from interest rate swaps accounted for as hedges and the related hedged items:
Interest rate swaps 55,764  (9,576)
Hedged items (48,869) 11,558 
Total interest expense $ 106,274  $ 66,665 
Cash paid for interest expense $ 103,429  $ 59,534 
Nine Months Ended September 30,
2024 2023
Borrowing interest expense $ 241,745  $ 164,273 
Facility unused fees 10,439  4,286 
Amortization of deferred financing costs 6,057  4,458 
Amortization of original issue discount and debt issuance costs 6,469  1,362 
Gain (loss) from interest rate swaps accounted for as hedges and the related hedged items:
Interest rate swaps 29,510  (14,620)
Hedged items (13,185) 18,469 
Total interest expense $ 281,035  $ 178,228 
Cash paid for interest expense $ 251,591  $ 148,921