v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings
Wells Credit Facility—On December 23, 2020, the Company's wholly-owned subsidiary, SLF I SPV, entered into a Loan and Security Agreement among SLF I SPV as the borrower, the Investment Adviser as collateral manager, the Company as equityholder and seller, Wells Fargo Bank, National Association ("Wells Fargo") as the administrative agent and the collateral custodian, and each of the lenders from time to time party thereto (as amended from time to time, the "Loan and Security Agreement"), which is structured as a secured revolving credit facility (the "Wells Credit Facility"). On November 1, 2024, the Company entered into Amendment No. 4 to the Wells Credit Facility which extended the facility maturity date from December 1, 2028 to November 1, 2029 and increased the maximum facility amount from $600,000 to $700,000. On October 10, 2025, the Company entered into Amendment No. 5 to the Wells Credit Facility which extended the facility maturity date from November 1, 2029 to October 10, 2030. Under the Wells Credit Facility, SLF I SPV is permitted to borrow up to 25.0%, 50.0%, 60.0% or 65.0% of the purchase price of pledged assets, subject to approval by Wells Fargo. The Wells Credit Facility is non-recourse to the Company and is collateralized by the investments of SLF I SPV on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Wells Credit Facility are capitalized on the Company's Consolidated Statements of Assets and Liabilities and charged against income as other financing expenses over the life of the Wells Credit Facility. The Wells Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of SLF I SPV investments, but rather to the performance of the underlying portfolio companies.
As of the amendment on October 10, 2025, the Wells Credit Facility bears interest at a rate of the Secured Overnight Financing Rate ("SOFR") plus 1.80% per annum. Prior to the amendment on October 10, 2025, from November 1, 2024 to October 9, 2025, the Wells Credit Facility bore interest at a rate of SOFR plus 2.05% per annum. Prior to the amendment on November 1, 2024, from December 1, 2023 to October 31, 2024, the Wells Credit Facility bore interest at a rate of the SOFR plus 2.40% per annum. The Wells Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Loan and Security Agreement).
The following table summarizes the interest expense, non-usage fee and amortization of financing costs incurred on the Wells 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$6,663 $6,912 $14,098 $14,649 
Non-usage fee$266 $361 $458 $627 
Amortization of financing costs$476 $615 $947 $1,223 
Weighted average interest rate5.4 %6.4 %5.4 %6.4 %
Effective interest rate6.1 %7.4 %6.1 %7.3 %
Average debt outstanding$486,531 $429,204 $515,201 $456,661 
As of June 30, 2026 and December 31, 2025, the outstanding balance on the Wells Credit Facility was $459,500 and $573,800, respectively, and SLF I SPV was in compliance with the applicable covenants in the Loan and Security Agreement on such dates.
Leverage risk factors—The Company utilizes and may utilize leverage to the maximum extent permitted by applicable laws and regulations for investment and other general business purposes. The Company's lenders will have fixed dollar claims on certain assets that are superior to the claims of the Company's common stockholders, and the Company would expect such lenders to seek recovery against these assets in the event of a default. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the Company's net assets. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures.