v3.26.1
Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company may enter into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies.
In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs OTC derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that it believes to be of good standing and by monitoring the financial stability of those counterparties.
For the three and six months ended June 30, 2026, the Company’s monthly average USD notional exposure to derivatives was approximately $865.1 million and $790.2 million . For the three and six months ended June 30, 2025, the Company’s monthly average USD notional exposure to derivatives was approximately $648.7 million and $632.0 million .
The tables below present derivatives contracts as of June 30, 2026 and their respective classification on the consolidated statement of assets and liabilities:
Derivative Contracts/Hedged ItemsFair Value (Amounts in Thousands)Statement of Assets and Liabilities Classification
Foreign currency forward contracts$5 Unrealized gain on derivative contracts
Foreign currency forward contracts(1)Unrealized loss on derivative contracts
Interest rate swaps(1)
222 Unrealized gain on derivative contracts
Interest rate swaps(1)
(9,930)Unrealized loss on derivative contracts
Interest rate options266 Unrealized gain on derivative contracts
Hedged items(2)
(3,788)Debt
(1) The interest rate swaps above are designated in a qualifying hedging relationship with unsecured borrowings.
(2) The hedged items above represent the carrying value adjustment to unsecured borrowings in a designated hedging relationship as further described in the hedging note below.
The table below presents the impact to the consolidated statements of operations from derivative contracts that were not designated in a qualifying hedging relationship during the three and six months ended June 30, 2026 and 2025:
(Amounts in thousands)Three Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months
Ended
June 30,
2026		Six Months Ended June 30, 2025
Net change in unrealized gain (loss) on foreign currency forward contracts$— $(7)$9 $(52)
Net change in unrealized gain (loss) on interest rate swaps and options(346)(110)(84)326 
Realized (loss) on foreign currency forward contracts(1)(11)(7)36 
The Company has not applied counterparty netting or collateral netting; as such, the amounts of cash collateral received and posted are not offset against the derivative assets and derivative liabilities in the consolidated statements of assets and liabilities.
The following tables present the Company’s assets and liabilities related to derivatives by counterparty, net of amounts available for offset under a master netting arrangement and net of any collateral received or pledged by the Company for such assets and liabilities as of June 30, 2026:
(Amounts in thousands)
As of June 30, 2026
AssetsDerivative Assets Subject to Master Netting AgreementDerivatives Available for OffsetNon-Cash Collateral ReceivedCash Collateral Received
Net Amount of Derivative Assets(1)
Morgan Stanley Capital Services, LLC$240 $(240)$— $— $— 
MUFG Bank, Ltd.97 (97)— — — 
Wells Fargo Bank, N.A.58 (58)— — — 
Regions Bank98 (98)— — — 
Total$493 $(493)$— $— $— 
(Amounts in thousands)
As of June 30, 2026
LiabilitiesDerivative Liabilities Subject to Master Netting AgreementDerivatives Available for OffsetNon-Cash Collateral Received
Cash Collateral Pledged(2)
Net Amount of Derivative Liabilities(3)
Morgan Stanley Capital Services, LLC$(1,303)$240 $— $1,063 $— 
MUFG Bank, Ltd.(4,972)97 — 4,875 — 
Wells Fargo Bank, N.A.(2,206)58 — 2,148 — 
Regions Bank(1,450)98 — 1,352 — 
Total$(9,931)$493 $— $9,438 $— 
(1) Net amount of derivative assets represents the net amount due from the counterparty to the Company.
(2) The actual collateral pledged could be more than the amount shown due to over collateralization.
(3) Net amount of derivative liabilities represents the net amount due from the Company to the counterparty.
Hedging
In connection with certain fixed rate unsecured notes issued by the Company, the Company has entered into fixed to floating interest rate swaps to more closely align the interest rates of such liabilities with the Company’s investment
portfolio, which consists primarily of floating rate loans. For derivative instruments designated in qualifying hedge relationships, the change in fair value of the hedging instrument are recorded as interest expense and in the consolidated statements of operations.
The table below presents the impact to the consolidated statements of operations from derivative assets and liabilities designated in a qualifying hedge accounting relationship for the three and six months ended June 30, 2026 and 2025:

(Amounts in thousands)Three Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months
Ended
June 30,
2026		Six Months
Ended
June 30,
2025		Financial Statement Location
Interest rate swaps$5,846 $(5,084)$10,232 $(13,695)Interest expense
Hedged items$(6,270)$4,569 $(11,275)$12,723 Interest expense


The table below presents the carrying value of unsecured borrowings as of June 30, 2026 that are designated in a qualifying hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values:

DescriptionPrincipal Amount (Amounts in thousands)Carrying Value (Amounts in thousands)Cumulative Hedging Adjustments (Amounts in thousands)
Series A Tranche A Notes$90,000 $90,000 $— 
Series A Tranche B Notes150,000 149,411 (589)
Series B, Tranche A Notes85,000 84,661 (339)
Series B, Tranche C Notes290,000 288,496 (1,504)
Series C, Tranche A Notes25,000 23,834 (1,166)
Series C, Tranche B Notes75,000 74,757 (243)
Series D, Tranche A Notes50,000 49,944 (56)
Series D, Tranche B Notes175,000 175,109 109 
Total$940,000 $936,212 $(3,788)

The table below presents the carrying value of unsecured borrowings as of December 31, 2025 that are designated in a qualifying hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values:

DescriptionPrincipal Amount (Amounts in thousands)Carrying Value (Amounts in thousands)Cumulative Hedging Adjustments (Amounts in thousands)
Series A, Tranche A Notes$90,000 $90,406 $406 
Series A, Tranche B Notes150,000 151,856 1,856 
Series B, Tranche A Notes85,000 86,045 1,045 
Series B, Tranche C Notes290,000 293,911 3,911 
Series C, Tranche A Notes25,000 25,178 178 
Series C, Tranche B Notes75,000 75,092 92 
Total$715,000 $722,488 $7,488