v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
Pursuant to the 1940 Act, the Company is currently only allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is maintained at a level of at least 150% after such borrowings. In the normal course, the Company intends to manage the portfolio with at least a 200% asset coverage ratio. However, the Company may reduce its asset coverage ratio to 167.5% which would allow the Company to borrow one and a half dollars for every dollar it has in assets less all liabilities and indebtedness not represented by senior securities issued by the Company. As of June 30, 2026, the Company’s asset coverage was 248.9%.
SPV Credit Facility
On September 19, 2025 (the “Effective Date”), the Company entered into a Loan Financing and Servicing Agreement (the “Loan Agreement”) with CL LSF SPV I, LLC (“CL SPV”), its wholly owned subsidiary, as borrower, the Company, as equityholder and servicer, Deutsche Bank AG, New York Branch, as facility agent, State Street Bank and Trust Company, as collateral agent and collateral custodian, and the lenders from time to time party thereto for a special purpose vehicle financing credit facility (the “SPV Credit Facility”) to provide additional liquidity to support its investment and operational activities. The SPV Credit Facility has a committed loan amount of $150 million and an uncommitted loan amount of $150 million. Borrowings under the SPV Credit Facility bear interest at SOFR plus 1.95% per annum during the revolving period ending on September 19, 2028 (the "Revolving Period"). CL SPV will pay the following unused commitment fees depending on the applicable date: (a) prior to the one-month anniversary of the Effective Date, 0.10%, (b) on and after the one-month anniversary of the Effective Date but prior to the two-month anniversary thereof, 0.20%, (c) on and after the two-month anniversary of the Effective Date but prior to the three-month anniversary thereof, 0.35% and (d) thereafter until the end of the Revolving Period, 0.50%, on the unused lender commitments under the SPV Credit Facility, in addition to other customary fees. Under the SPV Credit Facility, there is also a minimum utilization fee that is charged based on the minimum utilization percentage of the commitment. The SPV Credit Facility matures on September 19, 2030.
The Loan Agreement sets out standard terms, including affirmative and negative covenants, lists common events of default like nonpayment, misrepresentation, covenant breaches, bankruptcy, or change of control, and includes typical cure and notice provisions.
On July 29, 2026, the Company entered into Amendment No. 1 to the Loan Agreement (the “Amendment”) with CL SPV, its wholly owned subsidiary, as borrower, the Company, as servicer, Deutsche Bank AG, New York Branch, as facility agent and lender, and State Street Bank and Trust Company, as collateral agent and collateral custodian. The Amendment amended the Loan Agreement to, among other things: (i) increase the Committed Facility Amount (as defined in the Loan Agreement) from $150 million to $350 million, and (ii) adjust the Uncommitted Facility Amount (as defined in the Loan Agreement) from $150 million to $50 million, among other changes.
The SPV Credit Facility is secured by the assets of CL SPV. As of June 30, 2026, the Company and CL SPV were in compliance with all financial covenants under the Loan Agreement.
Debt obligations consisted of the following as of June 30, 2026 and December 31, 2025:
June 30, 2026
Aggregate Principal
Amount Committed		Outstanding
Principal
Amount
Available (1)
Carrying
Value(2)
SPV Credit Facility$300,000 $242,500 $57,500 $241,005 
Total Debt$300,000 $242,500 $57,500 $241,005 
December 31, 2025
Aggregate Principal
Amount Committed		Outstanding
Principal
Amount
Available (1)
Carrying
Value(2)
SPV Credit Facility$300,000 $143,950 $156,050 $142,902 
Total Debt$300,000 $143,950 $156,050 $142,902 
(1) The amount available may be subject to limitations related to the borrowing base under the SPV Credit Facility and asset coverage requirements.
(2) As of June 30, 2026 and December 31, 2025, the carrying value of the SPV Credit Facility is presented net of deferred financing costs and original issue discounts of $1.5 million and $1.0 million, respectively.
For the three and six months ended June 30, 2026, the components of interest expense related to the SPV Credit Facility are as follows:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2026
Interest expense$2,930 $5,099 
Commitment fees214 296 
Amortization of deferred financing costs21 55 
Accretion of original issue discount57 84 
Total Interest Expense$3,222 $5,534