Carlyle Secured Lending, Inc. (CGBD)

NII per share of $0.36 covers the declared quarterly dividend of $0.35 (annualized $1.40) at approximately 103% on a run-rate basis, placing coverage near the 95–105% midpoint of the rubric. The company reports estimated $0.70 per share in spillover income, providing additional cushion beyond base NII. Portfolio non-accruals are low at 0.9% of fair value, and the weighted average yield of 10.0% on the portfolio supports stable income generation. However, NII per share has declined from $0.40 in Q1 2025 to $0.36 in Q1 2026, indicating a slight downward trend rather than growth, which prevents a higher score despite adequate current coverage and supplemental income flexibility.

CGBD's leverage profile aligns with a mid-range assessment. Total debt of $1.38 billion against total assets of $2.56 billion yields a debt-to-assets ratio of approximately 54%, placing leverage within a reasonable band for a BDC. The company demonstrates mixed funding sources: it maintains a $200 million credit facility at SOFR + 1.80% and has priced CLO debt described as predominantly investment-grade rated, indicating access to capital markets funding. However, the earnings presentation does not disclose an explicit leverage target band, credit ratings for the company itself, or detailed maturity ladder information, limiting assessment of whether leverage is optimally positioned or if funding is sufficiently laddered. Liquidity appears adequate with $97.2 million in cash and $214.5 million in net working capital as of Q1 2026, supporting the "adequate liquidity" criterion at the 3-anchor level.

Non-accruals stand at 0.9% of fair value, well below the 1% threshold for a score of 5, indicating strong portfolio credit quality. The earnings presentation does not disclose PIK income or realized gains/losses data needed for a complete assessment, but the non-accrual metric alone—combined with a stable NII of $0.36 per share and no mention of material PIK or recurring losses—supports a strong rating. The modest unrealized losses in Q1 2026 ($29.4 million) reflect market spread widening rather than fundamental portfolio deterioration, and the portfolio's 10.0% weighted average yield suggests healthy underlying credit performance.

CGBD's portfolio shows mixed quality characteristics. The company reports 171 portfolio companies with a weighted average yield of 10.0% and non-accruals at only 0.9% of fair value, indicating reasonable credit quality. However, the earnings presentation does not explicitly disclose the percentage of first-lien versus junior capital investments, making it difficult to assess the full lien position. The portfolio appears moderately diversified across 171 companies, suggesting granularity better than concentrated portfolios, though top-10 concentration data is not provided. The company's involvement in structured credit and middle-market lending suggests exposure to both defensive and cyclical sectors. Based on available evidence of low non-accruals, reasonable diversification, and participation in secured lending, the portfolio quality aligns with the 3-anchor profile of 60–80% first-lien with moderate concentration, though explicit first-lien percentages would be needed for higher confidence.

CGBD is managed by Carlyle Global Credit Investment Management LLC, an external adviser (subsidiary of The Carlyle Group). The earnings presentation does not disclose specific fee structures, but standard BDC external management typically follows the 1.5% base fee on assets under management with 17.5% incentive fee structure. NAV per share declined from $16.26 at year-end 2025 to $15.89 at Q1 2026, representing a modest decline primarily attributed to unrealized losses from widening spreads rather than operational deterioration. The company generated $0.36 NII per share in Q1 2026 with a payout coverage ratio of 0.93, indicating sustainable dividend support. Without explicit disclosure of fee terms, hurdle rates, or lookback provisions in the available materials, the assessment defaults to standard external management characteristics typical of the BDC industry.

Valuation scored against the same-category peer cross-section (peer_fallback) from this nightly pass, because this name has fewer than 8 own-history points so far.