v3.26.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Schedule of Debt Information
As of March 31, 2026 and December 31, 2025, the Company had the following available and outstanding debt:
(in thousands)March 31, 2026December 31, 2025
 Total AvailablePrincipal
Outstanding
Carrying Value(1)
Total AvailablePrincipal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$350,000 $350,000 $341,301 $350,000 $350,000 $341,012 
March 2026 A Notes— — — 50,000 50,000 49,984 
March 2026 B Notes— — — 50,000 50,000 49,983 
September 2026 Notes325,000 325,000 324,548 325,000 325,000 324,302 
January 2027 Notes350,000 350,000 348,928 350,000 350,000 348,596 
2028 Convertible Notes287,500 287,500 281,076 287,500 287,500 280,412 
February 2029 Notes300,000 300,000 294,267 — — — 
June 2030 Notes350,000 350,000 343,104 350,000 350,000 342,694 
2031 Asset-Backed Notes64,512 64,512 64,466 64,636 64,636 64,530 
2033 Notes40,000 40,000 39,178 40,000 40,000 39,151 
MUFG Bank Facility(2)
440,000 220,000 220,000 440,000 168,000 168,000 
SMBC Facility(2)(3)(5)
475,000 282,307 282,164 475,000 277,934 277,780 
Total$2,982,012 $2,569,319 $2,539,032 $2,782,136 $2,313,070 $2,286,444 
(1)Except for the SMBC Facility and MUFG Bank Facility, all carrying values represent the principal amount outstanding less the remaining unamortized debt issuance costs and unaccreted premium or discount, if any, associated with the debt as of the balance sheet date.
(2)Availability subject to the Company meeting the borrowing base and/or capital commitment requirements.
(3)“Total Available” includes $175.0 million of available commitment through the letter of credit facility as of March 31, 2026 and December 31, 2025.
(4)As of March 31, 2026 and December 31, 2025, the total available debt under the SBA Debentures was $350.0 million, of which $175.0 million was available to HC IV and $175.0 million was available to SBIC V. HC IV and SBIC V have each issued the entire $175.0 million in SBIC Debentures.
(5)In November 2024, the Company amended its SMBC Facility and converted a portion of the existing revolver facility into a term loan facility in connection therewith. As of March 31, 2026, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.9 million respectively. As of December 31, 2025, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million, respectively.
The overall weighted average interest cost, cost of debt and debt outstanding for the Company for the three months ended March 31, 2026 and 2025 were as follows:
Three Months Ended March 31,
(in thousands)20262025
Weighted average interest cost
4.5 %4.3 %
Weighted average cost of debt(1)
5.1 %4.9 %
Weighted average debt outstanding
$2,420,380 $1,815,224 
(1)Cost of debt includes interest and fees.
The Company held the following SBA debentures outstanding principal balances as of March 31, 2026 and December 31, 2025:
(in thousands)
Issuance/Pooling Date		Maturity Date
Interest Rate(1)
March 31, 2026December 31, 2025
March 26, 2021September 1, 20311.58%$37,500 $37,500 
June 25, 2021September 1, 20311.58%16,200 16,200 
July 28, 2021September 1, 20311.58%5,400 5,400 
August 20, 2021September 1, 20311.58%5,400 5,400 
October 21, 2021March 1, 20323.21%14,000 14,000 
November 1, 2021March 1, 20323.21%21,000 21,000 
November 15, 2021March 1, 20323.21%5,200 5,200 
November 30, 2021March 1, 20323.21%20,800 20,800 
December 20, 2021March 1, 20323.21%10,000 10,000 
December 23, 2021March 1, 20323.21%10,000 10,000 
December 28, 2021March 1, 20323.21%5,000 5,000 
January 14, 2022March 1, 20323.21%4,500 4,500 
January 21, 2022March 1, 20323.21%20,000 20,000 
November 8, 2024March 1, 20355.09%30,000 30,000 
December 6, 2024March 1, 20355.09%33,600 33,600 
December 12, 2024March 1, 20355.09%8,400 8,400 
December 20, 2024March 1, 20355.09%32,000 32,000 
February 5, 2025March 1, 20355.09%6,000 6,000 
March 28, 2025September 1, 20354.66%10,000 10,000 
April 25, 2025September 1, 20354.66%15,000 15,000 
May 9, 2025September 1, 20354.66%5,000 5,000 
June 5, 2025September 1, 20354.66%17,000 17,000 
June 12, 2025September 1, 20354.66%3,000 3,000 
June 25, 2025September 1, 20354.66%15,000 15,000 
Total SBA Debentures  $350,000 $350,000 
(1)     Interest rates are determined initially at issuance and reset to a fixed rate at the debentures pooling date. The rates are inclusive of annual SBA charges.
Schedule of Debt Issuance Costs, Net of Accumulated Amortization
Debt issuance costs, net of accumulated amortization, were as follows as of March 31, 2026 and December 31, 2025:
(in thousands)March 31, 2026December 31, 2025
SBA Debentures$8,699 $8,988 
March 2026 A Notes— 16 
March 2026 B Notes— 17 
September 2026 Notes452 698 
January 2027 Notes1,072 1,404 
2028 Convertible Notes6,424 7,088 
February 2029 Notes5,733 — 
June 2030 Notes6,896 7,306 
2031 Asset-Backed Notes46 106 
2033 Notes822 849 
MUFG Bank Facility(1)
3,278 3,537 
SMBC Facility(1)(2)
2,010 2,214 
Total$35,432 $32,223 
(1)The MUFG Bank Facility and SMBC Facility are line-of-credit arrangements, the debt issuance costs associated with these instruments are included within Other assets on the Consolidated Statements of Assets and Liabilities in accordance with ASC Subtopic 835-30.
(2)As part of the November 2024 amendment of the SMBC Facility, the existing revolver facility was split into a revolver facility and a term loan facility. As of March 31, 2026, the debt issuance costs, net of accumulated amortization of the revolver facility is $1.9 million and the term loan is $0.1 million. As of December 31, 2025, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.0 million and the term loan is $0.2 million.
Schedule of Components of Interest Expense, Related Fees and Cash Paid for Interest Expense for Debt
For the three months ended March 31, 2026, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands)Three Months Ended March 31, 2026
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$3,253 $289 $— $3,542 $6,343 
March 2026 A Notes393 16 — 409 1,125 
March 2026 B Notes398 17 — 415 1,138 
September 2026 Notes2,175 203 — 2,378 4,266 
January 2027 Notes3,079 207 — 3,286 5,906 
2028 Convertible Notes3,725 354 — 4,079 6,828 
February 2029 Notes2,284 174 — 2,458 — 
June 2030 Notes5,441 219 — 5,660 — 
2031 Asset-Backed Notes(2)
818 42 — 860 799 
2033 Notes625 27 — 652 625 
MUFG Bank Facility2,663 259 455 3,377 2,316 
SMBC Facility3,292 203 212 3,707 3,050 
Total$28,146 $2,010 $667 $30,823 $32,396 
(1)Interest expense includes amortization of OID for the three months ended March 31, 2026, of $42 thousand, $126 thousand, $311 thousand, $99 thousand, $191 thousand, and $19 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, February 2029 Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three months ended March 31, 2026, we did not have any loss on debt extinguishment for 2031 Asset-Backed Notes.
For the three months ended March 31, 2025, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands)Three Months Ended March 31, 2025
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees)Unused facility and other fees (loan fees)Total interest expense and feesCash paid for interest expense
SBA Debentures$2,499 $227 $— $2,726 $3,971 
February 2025 Notes202 19 — 221 1,070 
June 2025 Notes754 40 — 794 — 
June 2025 3-Year Notes750 39 — 789 — 
March 2026 A Notes562 24 — 586 1,125 
March 2026 B Notes568 26 — 594 1,138 
September 2026 Notes2,175 203 — 2,378 4,266 
January 2027 Notes3,079 207 — 3,286 5,906 
2028 Convertible Notes827 77 — 904 — 
2031 Asset-Backed Notes(2)
1,492 80 — 1,572 1,457 
2033 Notes625 27 — 652 625 
MUFG Bank Facility2,570 442 560 3,572 2,179 
SMBC Facility3,595 208 219 4,022 3,843 
Total$19,698 $1,619 $779 $22,096 $25,580 
(1)Interest expense includes amortization of OID for the three months ended March 31, 2025 of $42 thousand, $126 thousand, $68 thousand, and $38 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three months ended March 31, 2025, the Company has recognized $15 thousand of loss on debt extinguishment for 2031 Asset-Backed Notes.
Schedule of SBIC Investments
The following table shows the fair value of the Company’s portfolio of investments by asset class as of March 31, 2026 and December 31, 2025:
(in thousands)March 31, 2026December 31, 2025
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
Senior Secured Debt$4,469,019 94.6%$4,209,798 94.2%
Unsecured Debt71,126 1.5%69,614 1.6%
Preferred Stock53,449 1.1%52,735 1.2%
Common Stock78,659 1.7%86,275 1.9%
Warrants42,507 0.9%41,162 0.9%
Investment Funds & Vehicles7,227 0.2%7,063 0.2%
Total$4,721,987 100.0%$4,466,647 100.0%
A summary of the Company’s investment portfolio, at value, by geographic location as of March 31, 2026 and December 31, 2025 is shown as follows:
(in thousands)March 31, 2026December 31, 2025
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
United States$4,249,172 90.0%$4,035,927 90.4%
United Kingdom152,389 3.2%118,031 2.7%
Netherlands115,004 2.4%117,344 2.6%
Israel66,148 1.4%67,280 1.5%
Germany49,417 1.1%50,386 1.1%
Switzerland47,763 1.0%35,504 0.8%
Canada18,432 0.4%16,841 0.4%
Sweden18,395 0.4%18,244 0.4%
Ireland4,770 0.1%4,729 0.1%
Singapore— 0.0%1,827 0.0%
Other(1)
497 0.0%534 0.0%
Total$4,721,987 100.0%$4,466,647 100.0 %
(1)Effective March 31, 2026, the Company’s investment portfolio based in Denmark has been consolidated with “Other”. Prior year amounts have been reclassified to conform to the current presentation.
The following table shows the fair value of the Company’s portfolio by industry sector as of March 31, 2026 and December 31, 2025:
(in thousands)March 31, 2026December 31, 2025
Investments at
Fair Value		Percentage of
Total Portfolio 		Investments at
Fair Value		Percentage of
Total Portfolio
Application Software$1,113,788 23.6%$1,087,954 24.3%
Drug Discovery & Development1,089,920 23.1%1,039,712 23.3%
Healthcare Services, Other890,720 18.9%838,508 18.8%
System Software507,172 10.7%472,144 10.6%
Consumer & Business Services474,202 10.0%449,631 10.1%
Defense Technologies157,631 3.3%140,458 3.1%
Diversified Financial Services106,304 2.3%105,896 2.4%
Medical Devices & Equipment81,619 1.7%77,257 1.7%
Electronics & Computer Hardware66,735 1.4%66,992 1.5%
Space Technologies53,167 1.1%47,816 1.1%
Consumer & Business Products42,187 0.9%8,810 0.2%
Sustainable and Renewable Technology35,804 0.8%35,759 0.8%
Communications & Networking32,063 0.7%26,263 0.6%
Information Services25,634 0.6%25,889 0.6%
Biotechnology Tools24,060 0.5%23,164 0.5%
Manufacturing Technology20,753 0.4%20,190 0.4%
Semiconductors187 0.0%158 0.0%
Media/Content/Info31 0.0%32 0.0%
Drug Delivery10 0.0%14 0.0%
Total$4,721,987 100.0%$4,466,647 100.0%
The following table summarizes information related to our SBICs as of March 31, 2026 and December 31, 2025.
March 31, 2026December 31, 2025
DescriptionHC IVSBIC VHC IVSBIC V
Number of investments held39313928 
Fair value of investments (in millions)$386.7$281.8$404.8$277.6 
Percentage of fair value of investments based on the Company's total investment portfolio8.2 %6.0 %9.1 %6.2 %
Tangible assets (in millions)$396.2$285.2$421.2$283.1 
Percentage of tangible assets based on the Company's total assets8.2 %5.9 %9.2 %6.2 %