| Fair Value of Financial Instruments |
6. Fair Value of Financial Instruments Investments The following tables present fair value measurements of investments as of June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hierarchy at June 30, 2026 |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First-lien debt investments |
|
$ |
— |
|
|
$ |
198,996 |
|
|
$ |
7,983,770 |
|
|
$ |
8,182,766 |
|
Second-lien debt investments |
|
|
— |
|
|
|
10 |
|
|
|
38,571 |
|
|
|
38,581 |
|
Mezzanine debt investments |
|
|
— |
|
|
|
— |
|
|
|
230,594 |
|
|
|
230,594 |
|
Equity investments |
|
|
— |
|
|
|
— |
|
|
|
174,484 |
|
|
|
174,484 |
|
Joint venture investments |
|
|
— |
|
|
|
— |
|
|
|
26,925 |
|
|
|
26,925 |
|
Total investments at fair value |
|
$ |
— |
|
|
$ |
199,006 |
|
|
$ |
8,454,344 |
|
|
$ |
8,653,350 |
|
Interest rate swaps |
|
|
— |
|
|
|
(8,413 |
) |
|
|
— |
|
|
|
(8,413 |
) |
Total |
|
$ |
— |
|
|
$ |
190,593 |
|
|
$ |
8,454,344 |
|
|
$ |
8,644,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hierarchy at December 31, 2025 |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
First-lien debt investments |
|
$ |
— |
|
|
$ |
260,984 |
|
|
$ |
7,398,928 |
|
|
$ |
7,659,912 |
|
Second-lien debt investments |
|
|
— |
|
|
|
223 |
|
|
|
37,160 |
|
|
|
37,383 |
|
Mezzanine debt investments |
|
|
— |
|
|
|
— |
|
|
|
222,366 |
|
|
|
222,366 |
|
Equity investments |
|
|
— |
|
|
|
— |
|
|
|
188,993 |
|
|
|
188,993 |
|
Total investments at fair value |
|
$ |
— |
|
|
$ |
261,207 |
|
|
$ |
7,847,447 |
|
|
$ |
8,108,654 |
|
Interest rate swaps |
|
|
— |
|
|
|
30,932 |
|
|
|
— |
|
|
|
30,932 |
|
Total |
|
$ |
— |
|
|
$ |
292,139 |
|
|
$ |
7,847,447 |
|
|
$ |
8,139,586 |
|
Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur. The following table presents the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2026:
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
|
|
June 30, 2026 |
|
|
|
First-lien
debt
investments |
|
|
Second-lien
debt
investments |
|
|
Mezzanine
debt
investments |
|
|
Equity
investments |
|
|
Joint venture investments |
|
|
Total |
|
Balance, beginning of period |
|
$ |
8,001,078 |
|
|
$ |
37,210 |
|
|
$ |
225,454 |
|
|
$ |
164,313 |
|
|
$ |
7,335 |
|
|
$ |
8,435,390 |
|
Purchases or originations |
|
|
458,535 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,369 |
|
|
|
476,904 |
|
Repayments / redemptions |
|
|
(482,370 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(482,370 |
) |
Sales proceeds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Paid-in-kind interest |
|
|
6,648 |
|
|
|
1,418 |
|
|
|
6,280 |
|
|
|
— |
|
|
|
— |
|
|
|
14,346 |
|
Net change in unrealized gains (losses) |
|
|
(8,418 |
) |
|
|
(220 |
) |
|
|
(1,282 |
) |
|
|
10,171 |
|
|
|
1,221 |
|
|
|
1,472 |
|
Net realized gains (losses) |
|
|
15 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Net amortization of discount on securities |
|
|
8,282 |
|
|
|
163 |
|
|
|
142 |
|
|
|
— |
|
|
|
— |
|
|
|
8,587 |
|
Balance, End of Period |
|
$ |
7,983,770 |
|
|
$ |
38,571 |
|
|
$ |
230,594 |
|
|
$ |
174,484 |
|
|
$ |
26,925 |
|
|
$ |
8,454,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended |
|
|
|
June 30, 2026 |
|
|
|
First-lien
debt
investments |
|
|
Second-lien
debt
investments |
|
|
Mezzanine
debt
investments |
|
|
Equity
investments |
|
|
Joint venture investments |
|
|
Total |
|
Balance, beginning of period |
|
$ |
7,398,928 |
|
|
$ |
37,160 |
|
|
$ |
222,366 |
|
|
$ |
188,993 |
|
|
$ |
— |
|
|
$ |
7,847,447 |
|
Purchases or originations |
|
|
1,391,246 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,704 |
|
|
|
1,416,950 |
|
Repayments / redemptions |
|
|
(684,461 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(684,461 |
) |
Sales proceeds |
|
|
(3,088 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,088 |
) |
Paid-in-kind interest |
|
|
15,939 |
|
|
|
2,772 |
|
|
|
12,630 |
|
|
|
— |
|
|
|
— |
|
|
|
31,341 |
|
Net change in unrealized gains (losses) |
|
|
(151,174 |
) |
|
|
(1,682 |
) |
|
|
(4,684 |
) |
|
|
(14,509 |
) |
|
|
1,221 |
|
|
|
(170,828 |
) |
Net realized gains (losses) |
|
|
49 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49 |
|
Net amortization of discount on securities |
|
|
16,331 |
|
|
|
321 |
|
|
|
282 |
|
|
|
— |
|
|
|
— |
|
|
|
16,934 |
|
Balance, End of Period |
|
$ |
7,983,770 |
|
|
$ |
38,571 |
|
|
$ |
230,594 |
|
|
$ |
174,484 |
|
|
$ |
26,925 |
|
|
$ |
8,454,344 |
|
The following table presents the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
|
|
June 30, 2025 |
|
|
|
First-lien
debt
investments |
|
|
Second-lien
debt
investments |
|
|
Mezzanine
debt
investments |
|
|
Equity
investments |
|
|
Total |
|
Balance, beginning of period |
|
$ |
6,686,427 |
|
|
$ |
121,036 |
|
|
$ |
204,815 |
|
|
$ |
164,182 |
|
|
$ |
7,176,460 |
|
Purchases or originations |
|
|
382,321 |
|
|
|
— |
|
|
|
— |
|
|
|
667 |
|
|
|
382,988 |
|
Repayments / redemptions |
|
|
(374,771 |
) |
|
|
(83,916 |
) |
|
|
— |
|
|
|
— |
|
|
|
(458,687 |
) |
Sales proceeds |
|
|
(5,659 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,763 |
) |
|
|
(17,422 |
) |
Paid-in-kind interest |
|
|
10,390 |
|
|
|
1,229 |
|
|
|
4,192 |
|
|
|
— |
|
|
|
15,811 |
|
Net change in unrealized gains (losses) |
|
|
128,445 |
|
|
|
(11,140 |
) |
|
|
935 |
|
|
|
(973 |
) |
|
|
117,267 |
|
Net realized gains (losses) |
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
7,188 |
|
|
|
7,214 |
|
Net amortization of discount on securities |
|
|
11,530 |
|
|
|
5,056 |
|
|
|
150 |
|
|
|
— |
|
|
|
16,736 |
|
Balance, End of Period |
|
$ |
6,838,709 |
|
|
$ |
32,265 |
|
|
$ |
210,092 |
|
|
$ |
159,301 |
|
|
$ |
7,240,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended |
|
|
|
June 30, 2025 |
|
|
|
First-lien
debt
investments |
|
|
Second-lien
debt
investments |
|
|
Mezzanine
debt
investments |
|
|
Equity
investments |
|
|
Total |
|
Balance, beginning of period |
|
$ |
6,728,411 |
|
|
$ |
93,469 |
|
|
$ |
123,184 |
|
|
$ |
154,511 |
|
|
$ |
7,099,575 |
|
Purchases or originations |
|
|
1,059,498 |
|
|
|
19,198 |
|
|
|
76,440 |
|
|
|
4,063 |
|
|
|
1,159,199 |
|
Repayments / redemptions |
|
|
(1,015,095 |
) |
|
|
(83,916 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,099,011 |
) |
Sale proceeds |
|
|
(115,419 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,763 |
) |
|
|
(127,182 |
) |
Paid-in-kind interest |
|
|
20,009 |
|
|
|
2,167 |
|
|
|
7,709 |
|
|
|
— |
|
|
|
29,885 |
|
Net change in unrealized gains (losses) |
|
|
134,497 |
|
|
|
(4,055 |
) |
|
|
2,500 |
|
|
|
5,302 |
|
|
|
138,244 |
|
Net realized gains (losses) |
|
|
486 |
|
|
|
— |
|
|
|
— |
|
|
|
7,188 |
|
|
|
7,674 |
|
Net amortization of discount on securities |
|
|
26,322 |
|
|
|
5,402 |
|
|
|
259 |
|
|
|
— |
|
|
|
31,983 |
|
Balance, End of Period |
|
$ |
6,838,709 |
|
|
$ |
32,265 |
|
|
$ |
210,092 |
|
|
$ |
159,301 |
|
|
$ |
7,240,367 |
|
The following table presents information with respect to the net change in unrealized gains or losses on investments for which Level 3 inputs were used in determining fair value that are still held by the Company at June 30, 2026 and June 30, 2025:
|
|
|
|
|
|
|
|
|
|
|
Net Change in Unrealized |
|
|
Net Change in Unrealized |
|
|
|
Gains or (Losses) |
|
|
Gains or (Losses) |
|
|
|
For the Three Months Ended |
|
|
For the Three Months Ended |
|
|
|
June 30, 2026 on |
|
|
June 30, 2025 on |
|
|
|
Investments Held at |
|
|
Investments Held at |
|
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
First-lien debt investments |
|
$ |
1,266 |
|
|
$ |
140,705 |
|
Second-lien debt investments |
|
|
(220 |
) |
|
|
699 |
|
Mezzanine debt investments |
|
|
(1,282 |
) |
|
|
935 |
|
Equity investments |
|
|
10,171 |
|
|
|
4,802 |
|
Joint venture investments |
|
|
1,221 |
|
|
|
— |
|
Total |
|
$ |
11,156 |
|
|
$ |
147,141 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Unrealized |
|
|
Net Change in Unrealized |
|
|
|
Gains or (Losses) |
|
|
Gains or (Losses) |
|
|
|
For the Six Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, 2026 on |
|
|
June 30, 2025 on |
|
|
|
Investments Held at |
|
|
Investments Held at |
|
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
First-lien debt investments |
|
$ |
(143,350 |
) |
|
$ |
154,408 |
|
Second-lien debt investments |
|
|
(1,682 |
) |
|
|
1,105 |
|
Mezzanine debt investments |
|
|
(4,684 |
) |
|
|
2,499 |
|
Equity investments |
|
|
(14,509 |
) |
|
|
8,984 |
|
Joint venture investments |
|
|
1,221 |
|
|
|
— |
|
Total |
|
$ |
(163,004 |
) |
|
$ |
166,996 |
|
The following tables present the fair value of Level 3 Investments at fair value and the significant unobservable inputs used in the valuations as of June 30, 2026 and December 31, 2025. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
|
|
|
Valuation |
|
Unobservable |
|
Range (Weighted |
|
Impact to Valuation
from an |
|
|
Fair Value |
|
|
Technique |
|
Input |
|
Average) |
|
Increase to Input |
First-lien debt investments |
|
$ |
7,983,770 |
|
|
Income approach (1) |
|
Discount rate |
|
7.6% — 27.5% (10.9%) |
|
Decrease |
Second-lien debt investments |
|
|
38,571 |
|
|
Income approach |
|
Discount rate |
|
16.2% — 16.5% (16.3%) |
|
Decrease |
Mezzanine debt investments |
|
|
230,594 |
|
|
Income approach |
|
Discount rate |
|
11.9% — 11.9% (11.9%) |
|
Decrease |
Equity investments |
|
|
174,484 |
|
|
Market Multiple (2) |
|
Comparable multiple |
|
10.4x — 22.0x (14.6x) |
|
Increase |
Joint venture investments |
|
|
26,925 |
|
|
Income approach (3) |
|
Discount rate |
|
12.5% — 12.5% (12.5%) |
|
Decrease |
Total |
|
$ |
8,454,344 |
|
|
|
|
|
|
|
|
|
(1)Includes $43.1 million of first-lien debt investments which were valued using an asset waterfall and $37.6 million of first-lien debt investments which were valued using a comparable market price. (2)Includes $75.7 million of equity investments which were valued using a discounted cash flow analysis. (3)Includes $26.9 million of joint venture investments which were valued using a discounted cash flow analysis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
Valuation |
|
Unobservable |
|
Range (Weighted |
|
Impact to Valuation
from an |
|
|
Fair Value |
|
|
Technique |
|
Input |
|
Average) |
|
Increase to Input |
First-lien debt investments |
|
$ |
7,398,928 |
|
|
Income approach (1) |
|
Discount rate |
|
6.6% — 17.5% (9.8%) |
|
Decrease |
Second-lien debt investments |
|
|
37,160 |
|
|
Income approach |
|
Discount rate |
|
12.5% — 14.1% (13.6%) |
|
Decrease |
Mezzanine debt investments |
|
|
222,366 |
|
|
Income approach |
|
Discount rate |
|
10.8% — 10.8% (10.8%) |
|
Decrease |
Equity investments |
|
|
188,993 |
|
|
Market Multiple (2) |
|
Comparable multiple |
|
2.8x — 25.0x (13.5x) |
|
Increase |
Total |
|
$ |
7,847,447 |
|
|
|
|
|
|
|
|
|
(1)Includes $50.8 million of first-lien debt investments which were valued using an asset waterfall and $60.9 million of first-lien debt investments which were valued using a comparable market price. (2)Includes $81.4 million of equity investments which were valued using a discounted cash flow analysis. The Company typically determines the fair value of its performing Level 3 debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected life, portfolio company performance since close, and other terms and risks associated with an investment. Among other factors, a determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company’s capital structure. Significant unobservable quantitative inputs typically considered in the fair value measurement of the Company’s Level 3 debt investments primarily include current market yields, including relevant market indices, but may also include quotes from brokers, dealers, and pricing services as indicated by comparable investments. If debt investments are credit impaired, an enterprise value analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate enterprise value. For the Company’s Level 3 equity investments, multiples of similar companies’ revenues, earnings before income taxes, depreciation and amortization (“EBITDA”) or some combination thereof and comparable market transactions are typically used.Structured Credit Partners JV, LLC (“SCP”) On December 23, 2025, affiliates of Sixth Street, including the Company and affiliates of Carlyle entered into the Limited Liability Company Agreement to co-manage SCP, a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt managed by affiliates of Sixth Street or Carlyle on a no-fee basis. Sixth Street affiliates own 50.0% of the equity interests in SCP and Carlyle affiliates own 50.0%, with investment decisions requiring approval by representatives of both the Sixth Street affiliates and the Carlyle affiliates. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments. Funding of such commitments requires the approval of SCP's board of managers, including the board members appointed by the Company. SCP's board of managers consists of an equal number of representatives appointed by the Sixth Street-affiliated members of SCP and the Carlyle-affiliated members of SCP. Portfolio construction and investment decisions must be unanimously approved by SCP’s investment committee, as delegated by the board of managers of SCP. Our investment in SCP is made with certain of our affiliates in accordance with the terms of the exemptive relief that we received from the SEC. Because the Company does not own more than 25% of the voting interests of SCP, the Company does not believe that it has control over SCP for accounting purposes under U.S. GAAP or for purposes of the 1940 Act and therefore, does not consolidate SCP. As of June 30, 2026, SCP had total capital commitments of $600.0 million comprised of $100.0 million of capital commitments from Sixth Street Lending Partners, $200.0 million of capital commitments from Sixth Street Specialty Lending, Inc., $150.0 million of capital commitments from Carlyle Secured Lending, Inc., and $150.0 million of capital commitments from Carlyle Credit Solutions, Inc., with all members of SCP having equal voting control. As of June 30, 2026, SCP had the following contributed capital and unfunded commitments from its members:
|
|
|
|
|
June 30, 2026 |
|
Total contributed capital by Sixth Street Lending Partners |
$ |
25,704 |
|
Total contributed capital by Sixth Street Specialty Lending, Inc. |
|
51,391 |
|
Total contributed capital by Carlyle |
|
77,095 |
|
Total contributed capital |
$ |
154,190 |
|
Total unfunded commitments by Sixth Street Lending Partners |
|
74,297 |
|
Total unfunded commitments by Sixth Street Specialty Lending, Inc. |
|
148,610 |
|
Total unfunded commitments by Carlyle |
|
222,907 |
|
Total unfunded commitments |
$ |
445,814 |
|
As of June 30, 2026, SCP had five wholly owned subsidiaries: (i) Carlyle US CLO 2026-3, Ltd., a Cayman Islands corporation; (ii) Carlyle US CLO 2026-B, Ltd., a Cayman Islands corporation; (iii) Sixth Street CLO 32, Ltd., a Cayman Islands corporation; (iv) Sixth Street SCP Warehouse 3, Ltd., a Cayman Islands corporation and (v) Sixth Street SCP Warehouse 4, Ltd., a Cayman Islands corporation. Each subsidiary primarily invests in broadly syndicated loans. As the subsidiaries are wholly owned subsidiaries, they are consolidated in SCP's unaudited consolidated financial statements commencing from the date of their respective formation. Below is selected consolidated balance sheet information for SCP as of June 30, 2026:
|
|
|
|
|
June 30, 2026 |
|
|
(unaudited) |
|
Selected Consolidated Balance Sheet Information: |
|
|
Assets |
|
|
Investment at fair value (amortized cost of $1,664,368) |
$ |
1,659,630 |
|
Cash and cash equivalents (1) |
|
130,014 |
|
Prepaid expenses and other assets |
|
39,844 |
|
Total Assets |
$ |
1,829,488 |
|
Liabilities and Members' Equity |
|
|
Secured borrowings |
$ |
1,357,281 |
|
Dividend payable |
|
5,070 |
|
Accrued expenses and other liabilities |
|
317,605 |
|
Members' equity (2) |
|
149,290 |
|
Non-controlling interest |
|
242 |
|
Total Liabilities and Members' Equity |
$ |
1,829,488 |
|
(1)As of June 30, 2026, $9,743 of Structured Credit Partner's cash and cash equivalents was restricted. (2)As of June 30, 2026, the fair value of the Company's ownership interest in the members' equity was $26,925. Below is selected consolidated statement of operations information for SCP for the three and six months ended June 30, 2026:
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, 2026 |
|
|
June 30, 2026 |
|
|
(unaudited) |
|
|
(unaudited) |
|
Selected Consolidated Statement of Operations Information: |
|
|
|
|
|
Total Investment Income |
$ |
22,123 |
|
|
$ |
23,573 |
|
Expenses |
|
|
|
|
|
Interest expense |
|
16,442 |
|
|
|
16,973 |
|
Other expenses |
|
368 |
|
|
|
1,168 |
|
Total expenses |
|
16,810 |
|
|
|
18,141 |
|
Net Investment Income |
|
5,313 |
|
|
|
5,432 |
|
Net change in unrealized gains (losses) on investments |
|
29 |
|
|
|
(4,738 |
) |
Net realized gains (losses) on investments |
|
103 |
|
|
|
133 |
|
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
5,445 |
|
|
$ |
827 |
|
Net income (loss) attributable to non-controlling interest |
|
(13 |
) |
|
|
(13 |
) |
Increase (Decrease) in Net Assets Resulting from Operations Attributable to Members |
$ |
5,458 |
|
|
$ |
840 |
|
For the three and six months ended June 30, 2026, SCP declared $5.1 million and $5.7 million, respectively, in distributions, of which $0.8 million and $1.0 million, respectively, was recognized as dividend income in the Company's Unaudited Statements of Operations. As of June 30, 2026, the daily weighted average yield on our investment in Structured Credit Partners JV, LLC was 18.7%. Below is a summary of SCP's portfolio as of June 30, 2026:
|
|
|
|
|
As of |
|
|
June 30, 2026 |
|
Total investments (1) |
$ |
1,681,254 |
|
Weighted average yield on total investments at amortized cost |
|
6.75 |
% |
Weighted average yield on total investments at fair value |
|
6.77 |
% |
Weighted average spread on investments |
|
2.79 |
% |
Number of portfolio companies in SCP |
428 |
|
Percentage of loans at floating interest rates |
|
99.52 |
% |
The industry composition of SCP's portfolio at fair value as of June 30, 2026 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
Amortized Cost |
|
|
Fair Value |
|
|
% of Fair Value |
|
Aerospace & Defense |
$ |
77,745 |
|
|
$ |
77,745 |
|
|
|
4.7 |
% |
Auto Aftermarket & Services |
|
45,943 |
|
|
|
45,985 |
|
|
|
2.8 |
% |
Beverage & Food |
|
50,150 |
|
|
|
50,261 |
|
|
|
3.0 |
% |
Business Services |
|
177,077 |
|
|
|
176,405 |
|
|
|
10.6 |
% |
Capital Equipment |
|
105,834 |
|
|
|
105,845 |
|
|
|
6.4 |
% |
Chemicals, Plastics & Rubber |
|
28,790 |
|
|
|
28,912 |
|
|
|
1.7 |
% |
Construction & Building |
|
91,558 |
|
|
|
91,241 |
|
|
|
5.5 |
% |
Consumer goods: Durable |
|
31,398 |
|
|
|
31,391 |
|
|
|
1.9 |
% |
Consumer goods: Non-durable |
|
27,749 |
|
|
|
27,792 |
|
|
|
1.7 |
% |
Consumer Services |
|
125,242 |
|
|
|
125,148 |
|
|
|
7.5 |
% |
Containers, Packaging & Glass |
|
44,160 |
|
|
|
44,139 |
|
|
|
2.7 |
% |
Diversified Financial Services |
|
212,220 |
|
|
|
210,609 |
|
|
|
12.7 |
% |
Energy: Electricity |
|
15,266 |
|
|
|
15,222 |
|
|
|
0.9 |
% |
Energy: Oil & Gas |
|
29,187 |
|
|
|
29,185 |
|
|
|
1.8 |
% |
Environmental Industries |
|
24,057 |
|
|
|
24,068 |
|
|
|
1.5 |
% |
Forest Products & Paper |
|
2,457 |
|
|
|
2,387 |
|
|
|
0.1 |
% |
Healthcare & Pharmaceuticals |
|
102,635 |
|
|
|
102,638 |
|
|
|
6.2 |
% |
High Tech Industries |
|
121,605 |
|
|
|
119,392 |
|
|
|
7.2 |
% |
Leisure Products & Services |
|
80,886 |
|
|
|
80,764 |
|
|
|
4.9 |
% |
Media: Advertising, Printing & Publishing |
|
12,856 |
|
|
|
12,930 |
|
|
|
0.8 |
% |
Media: Broadcasting & Subscription |
|
21,064 |
|
|
|
21,102 |
|
|
|
1.3 |
% |
Media: Diversified & Production |
|
28,004 |
|
|
|
28,023 |
|
|
|
1.7 |
% |
Metals & Mining |
|
3,976 |
|
|
|
4,000 |
|
|
|
0.2 |
% |
Retail |
|
25,826 |
|
|
|
25,717 |
|
|
|
1.5 |
% |
Telecommunications |
|
20,090 |
|
|
|
20,180 |
|
|
|
1.2 |
% |
Transportation: Cargo |
|
7,392 |
|
|
|
7,504 |
|
|
|
0.5 |
% |
Transportation: Consumer |
|
27,334 |
|
|
|
27,244 |
|
|
|
1.6 |
% |
Utilities: Electric |
|
10,158 |
|
|
|
10,209 |
|
|
|
0.6 |
% |
Utilities: Oil & Gas |
|
4,909 |
|
|
|
4,949 |
|
|
|
0.3 |
% |
Wholesale |
|
108,800 |
|
|
|
108,643 |
|
|
|
6.5 |
% |
Total |
$ |
1,664,368 |
|
|
$ |
1,659,630 |
|
|
|
100.0 |
% |
The geographic composition of SCP's portfolio at fair value as of June 30, 2026 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
Amortized Cost |
|
|
Fair Value |
|
|
% of Fair Value |
|
Australia |
$ |
1,980 |
|
|
$ |
2,009 |
|
|
|
0.1 |
% |
Canada |
|
16,308 |
|
|
|
16,208 |
|
|
|
1.0 |
% |
Germany |
|
15,482 |
|
|
|
15,573 |
|
|
|
0.9 |
% |
Ireland |
|
879 |
|
|
|
877 |
|
|
|
0.1 |
% |
Luxembourg |
|
19,504 |
|
|
|
19,393 |
|
|
|
1.2 |
% |
Netherlands |
|
22,163 |
|
|
|
22,267 |
|
|
|
1.3 |
% |
Switzerland (1) |
|
631 |
|
|
|
658 |
|
|
|
0.0 |
% |
United Kingdom |
|
21,391 |
|
|
|
21,160 |
|
|
|
1.3 |
% |
United States |
|
1,566,030 |
|
|
|
1,561,485 |
|
|
|
94.1 |
% |
Total |
$ |
1,664,368 |
|
|
$ |
1,659,630 |
|
|
|
100.0 |
% |
(1)Value rounds to less than 0.1%. Financial Instruments Not Carried at Fair Value Debt The fair value of the Company’s Credit Facilities, which are categorized as Level 3 within the fair value hierarchy, as of June 30, 2026 and December 31, 2025, approximates their carrying value as the outstanding balance is callable at carrying value. The following table presents the fair value of the Company’s 2029 Notes, January 2030 Notes and July 2030 Notes as of June 30, 2026 and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
Outstanding Principal |
|
|
Fair Value (1) |
|
|
Outstanding Principal |
|
|
Fair Value (1) |
|
2029 Notes |
|
$ |
750,000 |
|
|
$ |
764,175 |
|
|
$ |
750,000 |
|
|
$ |
778,345 |
|
January 2030 Notes |
|
|
600,000 |
|
|
|
595,446 |
|
|
|
600,000 |
|
|
|
607,796 |
|
July 2030 Notes |
|
|
750,000 |
|
|
|
753,103 |
|
|
|
750,000 |
|
|
|
769,633 |
|
Total |
|
$ |
2,100,000 |
|
|
$ |
2,112,724 |
|
|
$ |
2,100,000 |
|
|
$ |
2,155,774 |
|
(1)The fair value is based on broker quotes received by the Company and is categorized as Level 2 within the fair value hierarchy. Other Financial Assets and Liabilities Under the fair value hierarchy, cash and cash equivalents are classified as Level 1 while the Company’s other assets and liabilities, other than investments at fair value and the Credit Facilities, are classified as Level 2.
|