Fair value of Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2026

Summary of Unobservable Inputs and Ranges

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):


Asset Category	Fair value at March 31, 2026		Valuation Technique	Unobservable Input	Range of Input (Weighted Average) (1)
First lien	$	92,244	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien		2,092,114	Market Comparable	Market yield	7.0% - 20.1% (9.6%)
First lien		62,964	Enterprise Market Value	EBITDA multiple	6.5x - 17.9x (13.2x)
First lien		4,806	Market Comparable	Revenue multiple	0.9x
Subordinated debt		14,528	Market Comparable	Market yield	12.0% - 25.0% (15.5%)
Subordinated debt		4,285	Enterprise Market Value	EBITDA multiple	7.5% - 26.2% (24.3%)
Equity		221,345	Enterprise Market Value	EBITDA multiple	1.3x - 28.0x (14.4x)
Total Level 3 investments	$	2,492,286
Long-Term Credit Facility	$	328,333	Market Comparable	Market yield	5.5%

____________________________________________

(1)

The weighted averages disclosed in the table above were weighted by their relative fair value.


Asset Category	Fair value at September 30, 2025		Valuation Technique	Unobservable Input	Range of Input (Weighted Average) (1)
First lien	$	114,625	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien		2,377,201	Market Comparable	Market Yield	4.0% - 24.5% (9.9%)
First lien		17,969	Enterprise Market Value	EBITDA multiple	8.3x
First lien		3,836	Market Comparable	Revenue Multiple	0.6x
Second Lien		995	Market Comparable	Broker/Dealer bids or quotes	N/A
Subordinated debt		17,439	Market Comparable	Market Yield	7.0% - 25.4% (17.1%)
Subordinated debt		547	Enterprise Market Value	EBITDA multiple	14.8x
Equity	$	196,398	Enterprise Market Value	EBITDA multiple	0.6x - 28.3x (10.8x)
Total Level 3 investments	$	2,729,010
Long-Term Credit Facility	$	683,837	Market Comparable	Market Yield	4.8%

(1)

The weighted averages disclosed in the table above were weighted by their relative fair value.

Summary of Investments, Cash and Cash Equivalents, Credit Facility, or Prior Credit Facility, Notes and Asset Backed Debt

Our investments, cash and cash equivalents, Credit Facility, 2026 Notes, 2029 Notes, 2038-R Asset-Backed Debt, 2036-R Asset-Backed Debt, 2036 Asset-Backed Debt, and 2037 Asset-Backed Debt were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):


	Fair Value at March 31, 2026
Description	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
First lien	$	2,252,128	$	—	$	—	$	2,252,128	$	—
Subordinate debt		18,813		—		—		18,813		—
Equity		309,340		—		—		221,345		87,995
Total investments		2,580,281		—		—		2,492,286		87,995
Cash equivalents		31,427		31,427		—		—		—
Total investments and cash equivalents	$	2,611,708	$	31,427	$	—	$	2,492,286	$	87,995
Long Term Credit Facility payable	$	328,333	$	—	$	—	$	328,333	$	—
2026 Notes payable(2)		184,998		—		184,998		—		—
2029 Notes payable (2)		195,868		—		195,868		—		—
2038-R Asset-Backed Debt(2)		284,770		—		—		284,770		—
2036-R Asset-Backed Debt(2)		286,585		—		—		286,585		—
2037 Asset-Backed Debt (2)		387,145		—		—		387,145		—
Total debt	$	1,667,699	$	—	$	380,866	$	1,286,833	$	—

———————————————

(1)

In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investments in PSSL and PSSL II are measured using net asset value per share (or its equivalent) as a practical expedient for fair value, and thus have not been classified in the fair value hierarchy.

(2)

We elected not to apply the fair value option allowed by ASC 825-10 to the 2026 Notes, 2029 Notes, 2038-R Asset-Backed Debt, 2036-R Asset-Backed Debt, and 2037 Asset-Backed Debt and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair value.


	Fair Value at September 30, 2025
Description	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
First lien	$	2,513,631	$	—	$	—	$	2,513,631	$	—
Second lien and Subordinate debt		18,981		—		—		18,981		—
Equity		240,716		—		—		196,398		44,318
Total investments		2,773,328		—		—		2,729,010		44,318
Cash equivalents		40,729		40,729		—		—		—
Total investments and cash equivalents	$	2,814,057	$	40,729	$	—	$	2,729,010	$	44,318
Long Term Credit Facility payable	$	683,837	$	—	$	—	$	683,837	$	—
2026 Notes payable(2)		184,609		—		184,609		—		—
2036 Asset-Backed Debt(2)		284,627		—		—		284,627		—
2036-R Asset-Backed Debt(2)		265,366		—		—		265,366		—
2037 Asset-Backed Debt(2)		358,331		—		—		358,331		—
Total debt	$	1,776,770	$	—	$	184,609	$	1,592,161	$	—

(1)

In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investments in PSSL is measured using net asset value per share (or its equivalent) as a practical expedient for fair value in accordance with the specialized accounting guidance for investment companies, and thus has not been classified in the fair value hierarchy.

(2)

We elected not to apply the fair value option allowed by ASC 825-10 to the 2026 Notes, 2036 Asset-Backed Debt, the 2036-R Asset-Backed Debt, and the 2037 Asset-Backed Debt and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair value.

Reconciliation of Investments Measured at Fair Value Using Significant Unobservable Inputs Level 3

The tables below show a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3)

($ in thousands):


	Six Months Ended March 31, 2026
Description	First Lien			Second lien, subordinated debt and equity investments			Totals
Beginning balance	$	2,513,631		$	215,379		$	2,729,010
Net realized gain (loss)		(8,012	)		1,945			(6,067	)
Net change in unrealized appreciation (depreciation)		(20,609	)		24,353			3,744
Purchases, PIK interest, net discount accretion and non-cash exchanges		394,789			7,167			401,956
Sales, repayments and non-cash exchanges		(627,671	)		(8,686	)		(636,357	)
Transfers in and/or out of Level 3		—			—			—
Ending balance	$	2,252,128		$	240,158		$	2,492,286
Net change in unrealized appreciation (depreciation) reported within the net change in unrealized appreciation (depreciation) on investments in our consolidated statements of operations attributable to our Level 3 assets still held at the reporting date.	$	(25,226	)	$	24,575		$	(651	)


	Six Months Ended March 31, 2025
Description	First Lien			Second lien, subordinated debt and equity investments			Totals
Beginning balance	$	1,746,697		$	171,142		$	1,917,839
Net realized gain (loss)		879			22,318			23,197
Net change in unrealized appreciation (depreciation)		(18,852	)		(11,597	)		(30,449	)
Purchases, PIK interest, net discount accretion and non-cash exchanges		870,397			18,472			888,869
Sales, repayments and non-cash exchanges		(498,948	)		(24,720	)		(523,668	)
Transfers in and/or out of Level 3		—			—			—
Ending balance	$	2,100,173		$	175,615		$	2,275,788
Net change in unrealized depreciation reported within the net change in unrealized depreciation on investments in our consolidated statements of operations attributable to our Level 3 assets still held at the reporting date.	$	(14,454	)	$	7,798		$	(6,656	)

Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs Level 3

The table below shows a reconciliation of the beginning and ending balances for liabilities recognized at fair value and measured using significant unobservable inputs (Level 3)($ in thousands):


	Six Months Ended March 31,
Long-Term Credit Facility	2026			2025
Beginning balance (cost – $683,855 and $443,855, respectively)	$	683,837		$	443,880
Net change in unrealized (depreciation) appreciation included in earnings		(4	)		(91	)
Borrowings		141,500			235,001
Repayments		(497,000	)		(405,000	)
Ending balance (cost – $328,355 and $273,855, respectively)	$	328,333		$	273,790

Schedule of Non US Dollar Outstanding Borrowings on Credit Facility

As of March 31, 2026, we had outstanding non-U.S. dollar borrowings on our Credit Facility. The following table shows our non-U.S. dollar borrowings as of March 31, 2026 (CAD and $ in thousands):


Foreign Currency	Amount Borrowed		Borrowing Cost		Current Value		Reset Date	Unrealized appreciation (depreciation)
Canadian Dollar		CAD 2,000	$	1,455	$	1,433	4/1/26		(22	)

As of September 30, 2025 we had outstanding non-U.S. dollar borrowings on our Credit Facility. The following table shows our non-U.S dollar borrowings as of September 30, 2025. (CAD and $ in thousands):


Foreign Currency	Amount Borrowed		Borrowing Cost		Current Value		Reset Date	Unrealized appreciation (depreciation)
Canadian Dollar		CAD 2,000	$	1,455	$	1,437	10/1/2025		(18	)

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details