v3.26.1
Derivatives
3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 5. Derivatives

In connection with the issuance of the 2025 Notes, the Company entered into an interest rate swap agreement with the Royal Bank of Canada as counterparty pursuant to an International Swaps and Derivatives Association, Inc. Master Agreement. As of March 31, 2026 and December 31, 2025, the Company posted $6,080 and $3,180, respectively, to cover collateral obligations under the terms of the interest swap agreement, which is included in cash collateral held at broker on the Consolidated Statements of Assets and Liabilities.

Certain information related to the Company’s interest rate swap is presented below as of March 31, 2026 and December 31, 2025.

 

March 31, 2026

Counterparty

 

Notional amount

 

 

Maturity date

 

Gross Amount of Recognized Assets

 

 

Gross Amount of Recognized Liabilities

 

 

Balance Sheet Location of Net Amounts

Royal Bank of Canada

 

$

500,000

 

 

3/30/2030

 

$

 

 

$

5,605

 

 

Derivative liability at fair value

 

 

 

 

 

 

 

$

 

 

$

5,605

 

 

 

 

December 31, 2025

Counterparty

 

Notional amount

 

 

Maturity date

 

Gross Amount of Recognized Assets

 

 

Gross Amount of Recognized Liabilities

 

 

Balance Sheet Location of Net Amounts

Royal Bank of Canada

 

$

500,000

 

 

3/30/2030

 

$

 

 

$

2,951

 

 

Derivative liability at fair value

 

 

 

 

 

 

 

$

 

 

$

2,951

 

 

 

The Company’s interest rate swap has been designated in a qualifying hedge accounting relationship. Net realized and unrealized gains and losses for the three months ended March 31, 2026 are in the following locations in the Consolidated Statements of Operations. There were no derivatives designated in a qualifying hedge accounting relationship for the three months ended March 31, 2025.

 

 

 

 

 

Three Months Ended March 31,

 

Derivative Instrument

 

Financial Statement Location

 

2026

 

 

2025

 

Interest rate swaps

 

Interest and debt expenses

 

$

2,654

 

 

$

 

Hedged items

 

Interest and debt expenses

 

 

(2,654

)

 

 

 

 

 

 

 

$

 

 

$

 

The tables below present the carrying value of the 2025 Notes as of March 31, 2026 and December 31, 2025 that is designated in a qualifying hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from the current hedging relationships included in such carrying value:

 

March 31, 2026

 

Description

 

Carrying Value

 

 

Cumulative Hedging Adjustment

 

2025 Notes

 

$

494,395

 

 

$

(5,605

)

 

December 31, 2025

 

Description

 

Carrying Value

 

 

Cumulative Hedging Adjustment

 

2025 Notes

 

$

497,049

 

 

$

(2,951

)