Derivatives |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Derivatives | Derivatives Interest Rate Swaps The Company may enter into interest rate swaps from time to time in an effort to mitigate its exposure to fluctuations in interest rates. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In connection with the Company’s issuance of the 2030 Notes, the Company entered into an interest rate swap agreement for a total notional amount of $300 million that matures on October 2, 2030. The Company receives fixed interest rate of 6.00% and pays floating interest rate of three-month SOFR plus 2.515%. The Company designated this interest rate swap and the 2030 Notes as a qualifying fair value hedge accounting relationship. As of March 31, 2026 and December 31, 2025, the interest rate swap had a fair value of $(2.6) million and $(0.6) million, respectively, included as a component of other liabilities on the consolidated statement of assets and liabilities. The Company may also enter into interest rate swap agreements for which the Company does not utilize hedge accounting. These agreements are marked-to-market by recognizing the difference between the contract interest rate and the current market rate as unrealized gain (loss) on derivatives on the consolidated statements of assets and liabilities. As of March 31, 2026 and December 31, 2025, there was $0.2 million and $0.3 million of unrealized loss, respectively. For the three months ended March 31, 2026 and 2025, the net change in unrealized appreciation (depreciation) on derivatives that does not utilize hedge accounting was $0.1 million and $(0.2) million, respectively. For the three months ended March 31, 2026 and 2025, the net realized loss on derivatives that does not utilize hedge accounting was $(19) thousand and $(11) thousand, respectively. As of March 31, 2026 and December 31, 2025, the interest rate swaps are classified within Level 2 of the fair value hierarchy and is subject to ISDA Master Agreements or similar agreements. As of March 31, 2026 and December 31, 2025, there was $40 thousand and $1.4 million, respectively, of collateral pledged for derivatives which is included in restricted cash on the consolidated statements of assets and liabilities.
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