v3.26.1
Debt (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Debt Information
As of June 30, 2026 and December 31, 2025, the Company had the following available and outstanding debt:
(in thousands)June 30, 2026December 31, 2025
 Total AvailablePrincipal
Outstanding
Carrying Value(1)
Total AvailablePrincipal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$350,000 $350,000 $341,593 $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 Notes325,000 325,000 324,793 325,000 325,000 324,302 
January 2027 Notes350,000 350,000 349,261 350,000 350,000 348,596 
2028 Convertible Notes287,500 287,500 281,741 287,500 287,500 280,412 
February 2029 Notes300,000 300,000 294,768 — — — 
June 2030 Notes350,000 350,000 343,514 350,000 350,000 342,694 
2031 Asset-Backed Notes50,794 50,794 50,794 64,636 64,636 64,530 
2033 Notes40,000 40,000 39,205 40,000 40,000 39,151 
MUFG Bank Facility(2)
440,000 88,000 88,000 440,000 168,000 168,000 
SMBC Facility(2)(3)(5)
475,000 221,689 221,554 475,000 277,934 277,780 
Total$2,968,294 $2,362,983 $2,335,223 $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 June 30, 2026 and December 31, 2025.
(4)As of June 30, 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 June 30, 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 and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Weighted average interest cost
4.5 %4.4 %4.5 %4.3 %
Weighted average cost of debt(1)
5.2 %5.0 %5.1 %4.9 %
Weighted average debt outstanding
$2,409,041 $2,045,905 $2,414,679 $1,931,719 
(1)Cost of debt includes interest and fees.
The Company held the following SBA debentures outstanding principal balances as of June 30, 2026 and December 31, 2025:
(in thousands)
Issuance/Pooling Date		Maturity Date
Interest Rate(1)
June 30, 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 June 30, 2026 and December 31, 2025:
(in thousands)June 30, 2026December 31, 2025
SBA Debentures$8,407 $8,988 
March 2026 A Notes— 16 
March 2026 B Notes— 17 
September 2026 Notes207 698 
January 2027 Notes739 1,404 
2028 Convertible Notes5,759 7,088 
February 2029 Notes5,232 — 
June 2030 Notes6,486 7,306 
2031 Asset-Backed Notes— 106 
2033 Notes795 849 
MUFG Bank Facility(1)
3,042 3,537 
SMBC Facility(1)(2)
1,809 2,214 
Total$32,476 $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 June 30, 2026, the debt issuance costs, net of accumulated amortization of the revolver facility is $1.7 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 and six months ended June 30, 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 June 30, 2026Six Months Ended June 30, 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
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$3,289 $292 $— $3,581 $— $6,542 $581 $— $7,123 $6,343 
March 2026 A Notes— — — — — 393 16 — 409 1,125 
March 2026 B Notes— — — — — 398 17 — 415 1,138 
September 2026 Notes2,174 203 — 2,377 — 4,349 406 — 4,755 4,266 
January 2027 Notes3,078 207 — 3,285 — 6,157 414 — 6,571 5,906 
2028 Convertible Notes3,725 354 — 4,079 — 7,450 708 — 8,158 6,828 
February 2029 Notes4,195 319 — 4,514 — 6,479 493 — 6,972 — 
June 2030 Notes5,441 219 — 5,660 10,500 10,882 438 — 11,320 10,500 
2031 Asset-Backed Notes(2)
780 29 — 809 785 1,598 71 — 1,669 1,584 
2033 Notes625 27 — 652 625 1,250 54 — 1,304 1,250 
MUFG Bank Facility1,606 259 663 2,528 2,148 4,269 518 1,118 5,905 4,464 
SMBC Facility3,217 203 231 3,651 3,614 6,509 406 443 7,358 6,664 
Total$28,130 $2,112 $894 $31,136 $17,672 $56,276 $4,122 $1,561 $61,959 $50,068 
(1)Interest expense includes amortization of OID for the three months ended June 30, 2026, of $42 thousand, $126 thousand, $311 thousand, $182 thousand, $191 thousand, and $14 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. Interest expense includes amortization of OID for the six months ended June 30, 2026, of $83 thousand, $251 thousand, $621 thousand, $281 thousand, $383 thousand, and $33 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 and six months ended June 30, 2026, the Company has recognized $2 thousand and $2 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes.
For the three and six months ended June 30, 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 June 30, 2025Six Months Ended June 30, 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
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$2,926 $263 $— $3,189 $— $5,425 $490 $— $5,915 $3,971 
February 2025 Notes— — — — — 202 19 — 221 1,070 
June 2025 Notes520 41 — 561 1,508 1,274 81 — 1,355 1,508 
June 2025 3-Year Notes683 35 — 718 1,500 1,433 74 — 1,507 1,500 
March 2026 A Notes563 24 — 587 — 1,125 48 — 1,173 1,125 
March 2026 B Notes569 26 — 595 — 1,137 52 — 1,189 1,138 
September 2026 Notes2,174 204 — 2,378 — 4,349 407 — 4,756 4,266 
January 2027 Notes3,078 206 — 3,284 — 6,157 413 — 6,570 5,906 
2028 Convertible Notes3,725 351 — 4,076 — 4,552 428 — 4,980 — 
June 2030 Notes907 37 — 944 — 907 37 — 944 — 
2031 Asset-Backed Notes(2)
1,471 80 — 1,551 1,441 2,963 160 — 3,123 2,898 
2033 Notes625 27 — 652 625 1,250 54 — 1,304 1,250 
MUFG Bank Facility1,975 382 639 2,996 2,330 4,545 824 1,199 6,568 4,509 
SMBC Facility3,714 203 229 4,146 4,024 7,309 411 448 8,168 7,867 
Total$22,930 $1,879 $868 $25,677 $11,428 $42,628 $3,498 $1,647 $47,773 $37,008 
(1)Interest expense includes amortization of OID for the three months ended June 30, 2025, of $42 thousand, $126 thousand, $311 thousand, $32 thousand, and $37 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the six months ended June 30, 2025, of $83 thousand, $251 thousand, $379 thousand, $32 thousand, and $75 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three and six months ended June 30, 2025, the Company has recognized $21 thousand and $36 thousand, respectively, 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 June 30, 2026 and December 31, 2025:
(in thousands)June 30, 2026December 31, 2025
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
Senior Secured Debt$4,299,681 93.8%$4,209,798 94.2%
Unsecured Debt76,543 1.7%69,614 1.6%
Preferred Stock55,378 1.2%52,735 1.2%
Common Stock93,924 2.0%86,275 1.9%
Warrants51,295 1.1%41,162 0.9%
Investment Funds & Vehicles7,049 0.2%7,063 0.2%
Total$4,583,870 100.0%$4,466,647 100.0%
A summary of the Company’s investment portfolio, at value, by geographic location as of June 30, 2026 and December 31, 2025 is shown as follows:
(in thousands)June 30, 2026December 31, 2025
Investments at
Fair Value		Percentage of
Total Portfolio		Investments at
Fair Value		Percentage of
Total Portfolio
United States$4,104,784 89.5%$4,035,927 90.4%
United Kingdom137,001 3.0%118,031 2.7%
Netherlands115,762 2.5%117,344 2.6%
Israel67,569 1.5%67,280 1.5%
Germany59,775 1.3%50,386 1.1%
Switzerland48,731 1.1%35,504 0.8%
Sweden21,054 0.5%18,244 0.4%
Canada17,978 0.4%16,841 0.4%
Ireland10,764 0.2%4,729 0.1%
Singapore— 0.0%1,827 0.0%
Other(1)
452 0.0%534 0.0%
Total$4,583,870 100.0%$4,466,647 100.0 %
(1)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 June 30, 2026 and December 31, 2025:
(in thousands)June 30, 2026December 31, 2025
Investments at
Fair Value		Percentage of
Total Portfolio 		Investments at
Fair Value		Percentage of
Total Portfolio
Application Software$1,125,910 24.6%$1,087,954 24.3%
Drug Discovery & Development1,027,017 22.4%1,039,712 23.3%
Healthcare Services, Other879,316 19.2%838,508 18.8%
Consumer & Business Services393,498 8.6%449,631 10.1%
System Software376,427 8.2%472,144 10.6%
Defense Technologies253,604 5.5%140,458 3.1%
Diversified Financial Services111,279 2.4%105,896 2.4%
Medical Devices & Equipment98,666 2.1%77,257 1.7%
Electronics & Computer Hardware66,766 1.5%66,992 1.5%
Space Technologies54,568 1.2%47,816 1.1%
Consumer & Business Products42,331 0.9%8,810 0.2%
Sustainable and Renewable Technology41,254 0.9%35,759 0.8%
Communications & Networking34,677 0.8%26,263 0.6%
Biotechnology Tools30,009 0.7%23,164 0.5%
Information Services27,421 0.6%25,889 0.6%
Manufacturing Technology20,866 0.4%20,190 0.4%
Semiconductors198 0.0%158 0.0%
Media/Content/Info50 0.0%32 0.0%
Drug Delivery13 0.0%14 0.0%
Total$4,583,870 100.0%$4,466,647 100.0%
The following table summarizes information related to our SBICs as of June 30, 2026 and December 31, 2025.
June 30, 2026December 31, 2025
DescriptionHC IVSBIC VHC IVSBIC V
Number of investments held39363928 
Fair value of investments (in millions)$400.7$288.0$404.8$277.6 
Percentage of fair value of investments based on the Company's total investment portfolio8.7 %6.3 %9.1 %6.2 %
Tangible assets (in millions)$406.5$293.4$421.2$283.1 
Percentage of tangible assets based on the Company's total assets8.7 %6.3 %9.2 %6.2 %