CGBD - Carlyle Secured Lending's 2028 Baby Bonds: An Interesting 7.1-7.8% Yield

2024-04-19 10:30:00 ET

Summary

• Carlyle Secured Lending is a BDC providing funding to US middle market companies with a focus on first-lien debt.
• CGBD reported a 5.5% increase in net investment income in 2023, with a strong asset quality.
• The 2028 debt securities offer a yield to call of approximately 7.1-7.2% and a yield to maturity of approximately 7.75-7.8%.

Introduction

Carlyle Secured Lending ( CGBD ) is a business development company providing US middle market companies (with an EBITDA between $25M and $100M, although the company recently also provided larger companies with funding) with access to funding. And while the BDC predominantly owns debt in companies that don't have a credit rating, in excess of 70% of the portfolio consists of first-lien debt, which would be very helpful in case some of its borrowers default on their debt....

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