v3.26.3
Borrowings (Tables)
 9 Months Ended
Sep. 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 nine months ended September 30, 2026 and September 30, 2025:
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Interest expense$5,048 $4,726 $16,698 $13,741 
Non-usage fee$115 $557 $483 $1,865 
Amortization of financing costs$660 $677 $3,372 $1,921 
Weighted average interest rate5.5 %6.3 %5.5 %6.4 %
Effective interest rate6.4 %8.0 %6.9 %8.2 %
Average debt outstanding$359,174 $293,932 $398,377 $285,184 
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 nine months ended September 30, 2026 and September 30, 2025:
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Interest expense$371 $390 $2,248 $1,149 
Non-usage fee$482 $476 $1,340 $1,563 
Amortization of financing costs$223 $189 $633 $560 
Weighted average interest rate4.8 %4.7 %5.1 %5.0 %
Effective interest rate13.9 %13.5 %9.7 %14.6 %
Average debt outstanding$30,658 $30,991 $58,155 $29,879 
The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2026 and September 30, 2025:
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Interest expense(1)$13,505 $16,385 $40,748 $47,979 
Amortization of financing costs$766 $827 $2,301 $2,440 
Amortization of discount$314 $314 $932 $932 
Weighted average interest rate6.7 %6.5 %6.6 %6.5 %
Effective interest rate7.4 %7.1 %7.2 %6.9 %
Average debt outstanding$790,000 $990,000 $811,245 $990,000 
(1)Interest expense includes net expense recognized on fair value hedges.
The following table summarizes the Company’s SBA-guaranteed debentures repayments as of September 30, 2026:
Issuance DateMaturity DateRepayment DateRepayment  Amount
Fixed SBA-guaranteed debentures(1):
March 25, 2015March 1, 2025February 28, 2025$37,500 
September 23, 2015September 1, 2025August 29, 202566,295 
March 23, 2016March 1, 2026February 27, 202613,950 
September 21, 2016September 1, 2026August 31, 20264,000 
September 20, 2017September 1, 2027August 31, 202613,000 
March 21, 2018March 1, 2028August 31, 202615,255 
Fixed SBA-guaranteed debentures(2):
September 19, 2018September 1, 2028March 2, 202613,000 
September 19, 2018September 1, 2028August 31, 20262,000 
September 25, 2019September 1, 2029August 31, 202615,000 
Total SBA-guaranteed debentures repaid$180,000 
(1)SBA-guaranteed debentures repaid by SBIC I
(2)SBA-guaranteed debentures repaid by SBIC II
The following table summarizes the Company’s SBA-guaranteed debentures as of September 30, 2026:
Issuance DateMaturity DateDebenture AmountInterest RateSBA Annual Charge
Fixed SBA-guaranteed debentures(1):
September 25, 2019September 1, 2029$4,000 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$120,000 
(1)As of September 30, 2026, the outstanding SBA-guaranteed debentures were issued by SBIC II. All SBA-guaranteed debentures that were issued by SBIC I were repaid.
The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2026 and September 30, 2025:
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Interest expense$843 $1,588 $2,910 $5,247 
Amortization of financing costs$415 $203 $818 $659 
Weighted average interest rate2.2 %2.6 %2.3 %2.7 %
Effective interest rate3.3 %3.0 %2.9 %3.0 %
Average debt outstanding$153,194 $240,882 $169,667 $263,319 
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 nine months ended September 30, 2025:
Three Months EndedNine Months Ended
September 30, 2025(1)September 30, 2025(1)
Interest expense$4,852 $14,570 
Amortization of financing costs$430 $1,282 
Amortization of premium$(29)$(74)
Weighted average interest rate7.5 %7.5 %
Effective interest rate8.1 %8.1 %
Average debt outstanding$258,777 $259,022 
(1)On October 15, 2025, the 2022 Convertible Notes matured and were repaid.
Schedule of Effect of Hedging Derivative Instruments
The following table presents the effect of hedging derivative instruments on the Consolidated Statements of Operations and the total amounts for the respective line items affected:
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
(Losses) gains on fair value hedging relationship:
Interest rate swap contract:
Interest expense recognized on derivative$(206)$(1,182)$(242)$(3,184)
(Losses) gains recognized on derivative(6,362)719 (14,576)12,436 
Gains (losses) recognized on hedged item6,347 (698)14,504 (11,564)
Net expense recognized on fair value hedge$(221)$(1,161)$(314)$(2,312)
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 September 30, 2026 and December 31, 2025.
As of
September 30, 2026December 31, 2025
DescriptionCarrying ValueCumulative Amount of Basis AdjustmentCarrying ValueCumulative Amount of Basis Adjustment
February 2029 Notes
$292,551 $5,995 $303,000 $(4,918)
October 2027 Notes295,462 3,887 298,585 296