v3.25.4
Borrowings
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Borrowings Borrowings
Wells Credit Facility — On December 23, 2020, the Company's wholly-owned subsidiary, SLF I SPV, entered into a Loan and Security Agreement among SLF I SPV as the borrower, the Investment Adviser as collateral manager, the Company as equity holder and seller, Wells Fargo Bank, National Association ("Wells Fargo") as the administrative agent and the collateral custodian, and each of the lenders from time to time party thereto (as amended, from time to time, the "Loan and Security Agreement"), which is structured as a secured revolving credit facility (the "Wells Credit Facility"). On October 10, 2025, the Company entered into Amendment No. 5 to the Wells Credit Facility which extended the facility maturity date from November 1, 2029 to October 10, 2030. On November 1, 2024, the Company entered into Amendment No. 4 to the Wells Credit Facility which extended the facility maturity date from December 1, 2028 to November 1, 2029 and increased the maximum facility amount from $600,000 to $700,000. Under the Wells Credit Facility, SLF I SPV is permitted to borrow up to 25.0%, 50.0%, 60.0% or 65.0% of the purchase price of pledged assets, subject to approval by Wells Fargo. The Wells Credit Facility is non-recourse to the Company and is collateralized by all of the investments of SLF I SPV on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Wells Credit Facility are capitalized on the Company's Consolidated Statements of Assets and Liabilities and charged against income as other financing expenses over the life of the Wells Credit Facility. The Wells Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of SLF I SPV investments, but rather to the performance of the underlying portfolio companies.
As of the amendment on October 10, 2025, the Wells Credit Facility bears interest at a rate of the Secured Overnight Financing Rate ("SOFR") plus 1.80% per annum. Prior to the amendment on October 10, 2025, from November 1, 2024 to October 9, 2025, the Wells Credit Facility bore interest at a rate of SOFR plus 2.05% per annum. From December 1, 2023 to October 31, 2024, the Wells Credit Facility bore interest at a rate of the SOFR plus 2.40% per annum. From April 28, 2023 to November 30, 2023, the Wells Credit Facility bore interest at a rate of SOFR plus 1.70% per annum for Broadly Syndicated Loans (as defined in the Loan and Security Agreement) and SOFR plus 2.20% per annum for all other investments. From June 29, 2021 to April 27, 2023, the Wells Credit Facility bore interest at a rate of the London Interbank Offered Rate ("LIBOR") plus 1.60% per annum for Broadly Syndicated Loans and LIBOR plus 2.10% per annum for all other investments. The Wells Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Loan and Security Agreement).
The following table summarizes the interest expense, non-usage fee and amortization of financing costs incurred on the Wells Credit Facility for the years ended December 31, 2025, December 31, 2024 and December 31, 2023:
Year Ended December 31,
202520242023
Interest expense$29,439 $33,980 $27,895 
Non-usage fee$1,200 $852 $393 
Amortization of financing costs$2,523 $2,091 $984 
Weighted average interest rate6.2 %7.5 %7.2 %
Effective interest rate7.1 %8.3 %7.6 %
Average debt outstanding$465,645 $446,701 $384,168 
As of December 31, 2025, December 31, 2024 and December 31, 2023, the outstanding balance on the Wells Credit Facility was $573,800, $504,400 and $433,800, respectively, and SLF I SPV was in compliance with the applicable covenants in the Wells Credit Facility on such dates.
Leverage risk factors—The Company utilizes and may utilize leverage to the maximum extent permitted by the law for investment and other general business purposes. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the Company's net assets. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures.