v3.26.1
Borrowings (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Information Related to Borrowings
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and six months ended June 30, 2026 and June 30, 2025:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest expense$5,210 $3,982 $11,650 $9,015 
Non-usage fee$91 $730 $368 $1,308 
Amortization of financing costs$523 $667 $2,712 $1,244 
Weighted average interest rate5.5 %6.3 %5.5 %6.5 %
Effective interest rate6.2 %8.6 %7.1 %8.3 %
Average debt outstanding$376,974 $251,167 $418,304 $280,737 
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and six months ended June 30, 2026 and June 30, 2025:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest expense$351 $383 $1,877 $759 
Non-usage fee$471 $513 $858 $1,087 
Amortization of financing costs$206 $187 $410 $371 
Weighted average interest rate4.5 %5.0 %5.2 %5.2 %
Effective interest rate13.4 %14.3 %8.8 %15.3 %
Average debt outstanding$30,824 $30,315 $72,131 $29,314 
The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and six months ended June 30, 2026 and June 30, 2025:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest expense(1)$13,313 $16,199 $27,243 $31,594 
Amortization of financing costs$758 $811 $1,535 $1,613 
Amortization of discount$311 $311 $618 $618 
Weighted average interest rate6.7 %6.5 %6.6 %6.5 %
Effective interest rate7.3 %7.0 %7.2 %6.8 %
Average debt outstanding$790,000 $990,000 $822,044 $990,000 
(1)Interest expense includes net expense recognized on fair value hedges.
The following table summarizes the Company’s SBA-guaranteed debentures as of June 30, 2026:
Issuance DateMaturity DateDebenture AmountInterest RateSBA Annual Charge
Fixed SBA-guaranteed debentures(1):
September 21, 2016September 1, 2026$4,000 2.051 %0.742 %
September 20, 2017September 1, 202713,000 2.518 %0.742 %
March 21, 2018March 1, 202815,255 3.187 %0.742 %
Fixed SBA-guaranteed debentures(2):
September 19, 2018September 1, 20282,000 3.548 %0.222 %
September 25, 2019September 1, 202919,000 2.283 %0.222 %
March 25, 2020March 1, 203041,000 2.078 %0.222 %
March 25, 2020March 1, 203024,000 2.078 %0.275 %
September 23, 2020September 1, 203051,000 1.034 %0.275 %
Total SBA-guaranteed debentures$169,255 
(1)SBA-guaranteed debentures are issued by SBIC I.
(2)SBA-guaranteed debentures are issued by SBIC II.
The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and six months ended June 30, 2026 and June 30, 2025:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest expense$962 $1,752 $2,067 $3,659 
Amortization of financing costs$140 $219 $403 $456 
Weighted average interest rate2.3 %2.7 %2.3 %2.7 %
Effective interest rate2.6 %3.0 %2.8 %3.0 %
Average debt outstanding$169,255 $262,500 $178,040 $274,724 
Schedule of Information Related to Convertible Notes
The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the 2022 Convertible Notes for the three and six months ended June 30, 2025:
Three Months EndedSix Months Ended
June 30, 2025(1)June 30, 2025(1)
Interest expense$4,853 $9,718 
Amortization of financing costs$426 $852 
Amortization of premium$(28)$(45)
Weighted average interest rate7.5 %7.5 %
Effective interest rate8.1 %8.1 %
Average debt outstanding$258,784 $259,147 
(1)On October 15, 2025, the 2022 Convertible Notes matured and were repaid.
Schedule of Effect of Hedging Derivative Instruments
The following table presents the effect of hedging derivative instruments on the Consolidated Statements of Operations and the total amounts for the respective line items affected:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(Losses) gains on fair value hedging relationship:
Interest rate swap contract:
Interest expense recognized on derivative$(43)$(1,074)$(36)$(2,002)
(Losses) gains recognized on derivative(3,955)4,545 (8,214)11,717 
Gains (losses) recognized on hedged item3,969 (4,449)8,157 (10,866)
Net expense recognized on fair value hedge$(29)$(978)$(93)$(1,151)
Schedule of Carrying value of Hedged Assets and Liabilities
The following table summarizes the carrying value of the Company's hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of June 30, 2026 and December 31, 2025.
As of
June 30, 2026December 31, 2025
DescriptionCarrying ValueCumulative Amount of Basis AdjustmentCarrying ValueCumulative Amount of Basis Adjustment
February 2029 Notes
$297,729 $661 $303,000 $(4,918)
October 2027 Notes$296,317 $2,874 $298,585 $296