v3.26.3
DEBT
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
DEBT
5. DEBT

In accordance with the Investment Company Act, a BDC generally is allowed to borrow amounts such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 150% (or 200% if certain requirements under the Investment Company Act are not met) immediately after such borrowing. The Fund’s sole initial shareholder approved a proposal that allows the Fund to reduce its asset coverage ratio applicable to senior securities from 200% to 150% effective October 7, 2022. As of September 30, 2026, the Fund’s asset coverage was 179%.
The Fund’s outstanding debt as of September 30, 2026 and December 31, 2025 was as follows:

As of
September 30, 2026December 31, 2025
Total Aggregate Principal Amount Committed/ Outstanding (1)Principal Amount OutstandingCarrying ValueTotal Aggregate Principal Amount Committed/ Outstanding (1)Principal Amount OutstandingCarrying Value
Revolving Credit Facility
$4,138,000 (2)$2,104,596 $2,101,059 $3,250,000 (2)$2,523,737 $2,525,642 
SG Funding Facility2,325,000 (3)1,470,811 1,470,811 1,825,000 (3)612,811 612,811 
SB Funding Facility1,500,000 (4)650,000 650,000 750,000 400,000 400,000 
BNP Funding Facility1,000,000 568,000 568,000 1,000,000 900,000 900,000 
January 2037 CLO Secured Notes(5)476,000 476,000 473,501 (6)476,000 476,000 473,310 (6)
April 2038 CLO Secured Debt(5)350,000 350,000 348,312 (6)350,000 350,000 348,196 (6)
January 2039 CLO Secured Debt(5)532,000 532,000 530,259 (6)532,000 532,000 529,820 (6)
March 2028 Notes1,000,000 1,000,000 984,196 (6)(7)1,000,000 1,000,000 1,004,008 (6)(7)
September 2028 Notes600,000 600,000 582,416 (6)(7)600,000 600,000 597,103 (6)(7)
January 2029 Notes600,000 600,000 573,479 (6)(7)600,000 600,000 589,036 (6)(7)
August 2029 Notes700,000 700,000 677,992 (6)(7)700,000 700,000 705,261 (6)(7)
February 2030 Notes750,000 750,000 702,715 (6)(7)750,000 750,000 731,239 (6)(7)
September 2030 Notes500,000 500,000 472,698 (6)(7)500,000 500,000 496,117 (6)(7)
January 2031 Notes500,000 500,000 459,545 (6)(7)500,000 500,000 483,459 (6)(7)
April 2031 Notes700,000 700,000 654,482 (6)(7)— — — 
March 2032 Notes750,000 750,000 717,245 (6)(7)750,000 750,000 764,594 (6)(7)
Total$16,421,000 $12,251,407 $11,966,710 $13,583,000 $11,194,548 $11,160,596 
________________________________________

(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, SG Funding Facility, SB Funding Facility and BNP Funding Facility (each as defined below) are subject to borrowing base and other restrictions.

(2)Provides for an “accordion” feature that allows the Fund, under certain circumstances, to increase the size of the Revolving Credit Facility to a maximum of $6,150,000 and $4,553,000 as of September 30, 2026 and December 31, 2025, respectively.

(3)Provides for an “accordion” feature that allows ASIF Funding I (as defined below), under certain circumstances, to increase the size of the SG Funding Facility to a maximum of $2,500,000.

(4)As of September 30, 2026, $1,125,000 of the total commitment was available under the SB Funding Facility and subject to borrowing base and other restrictions. The remaining $375,000 became fully available after October 29, 2026.
(5)Excludes the subordinated notes issued by certain of the Fund’s wholly owned, consolidated subsidiaries in connection with the Debt Securitizations described below, all of which were retained by the Fund and, as such, eliminated in consolidation.

(6)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the unaccreted discount recorded upon issuance.

(7)The carrying value of the March 2028 Notes, the September 2028 Notes, the January 2029 Notes, the August 2029 Notes, the February 2030 Notes, the September 2030 Notes, the January 2031 Notes, the April 2031 Notes and the March 2032 Notes (each as defined below) as of September 30, 2026 and December 31, 2025 includes adjustments as a result of effective hedge accounting relationships, as applicable. See Note 6 for more information on the interest rate swaps related to these unsecured notes issuances.

The weighted average stated interest rate and weighted average maturity, both on aggregate principal amount outstanding, of all the Fund’s outstanding debt as of September 30, 2026 were 5.5% and 4.7 years, respectively, and as of December 31, 2025 were 5.5% and 5.0 years, respectively. The weighted average stated interest rate of all the Fund’s outstanding debt as of September 30, 2026 and December 31, 2025 includes the impact of interest rate swaps. See Note 6 for more information on the interest rate swaps.

Revolving Credit Facility
 
The Fund is party to a senior secured revolving credit facility (as amended and restated, the “Revolving Credit Facility”), that allows the Fund to borrow up to $4,138,000 at any one time outstanding. As of September 30, 2026, the end of the revolving period and the stated maturity date were May 21, 2030 and May 21, 2031, respectively. The Revolving Credit Facility also provides for an “accordion” feature that allows the Fund, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of $6,150,000. The Revolving Credit Facility generally requires payments of interest at the end of each Secured Overnight Financing Rate (“SOFR”) interest period, but no less frequently than quarterly, on SOFR based loans, and monthly payments of interest on other loans. Subsequent to the end of the respective revolving periods and prior to the respective stated maturity dates, the Fund is required to repay the relevant outstanding principal amounts under both the term loan tranche and revolving tranche on a monthly basis in an amount equal to 1/12th of the outstanding principal amount at the end of the respective revolving periods.

Under the Revolving Credit Facility, the Fund has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain asset transfers and restricted payments, (d) maintaining a certain minimum shareholders’ equity, (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness of the Fund and its consolidated subsidiaries (subject to certain exceptions) of not less than 1.5:1.0 and (f) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Fund and certain of its subsidiaries. These covenants are subject to important limitations and exceptions that are described in the documents governing the Revolving Credit Facility. Amounts available to borrow under the Revolving Credit Facility (and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value as determined pursuant to the Revolving Credit Facility) that are pledged as collateral. As of September 30, 2026, the Fund was in compliance in all material respects with the terms of the Revolving Credit Facility.
 
As of September 30, 2026 and December 31, 2025, there was $2,104,596 and $2,523,737 outstanding, respectively, under the Revolving Credit Facility. The Revolving Credit Facility also provides for a sub-limit for the issuance of letters of credit for up to an aggregate amount of $175,000. As of September 30, 2026 and December 31, 2025, the Fund had no letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit and swingline loans issued.
 
Since May 21, 2026, the interest rate charged on the Revolving Credit Facility is based on SOFR (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.525%, 1.650%, 1.775% or an “alternate base rate” (as defined in the documents governing the Revolving Credit Facility) plus an applicable spread of either 0.525%, 0.650% or 0.775%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving credit exposure under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving credit exposure) plus (ii) other debt, if any,
secured by the same collateral as the Revolving Credit Facility. From April 15, 2025 to May 20, 2026, the interest rate charged on the Revolving Credit Facility was based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.525%, 1.650% or 1.775% or an “alternate base rate” plus an applicable spread of either 0.525%, 0.650% or 0.775%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving credit exposure under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving credit exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. Prior to April 15, 2025, the interest rate charged on the Revolving Credit Facility was based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.750% or 1.875% or an “alternate base rate” plus an applicable spread of either 0.750% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving credit exposure under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving credit exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. The Revolving Credit Facility allows for borrowings to be made using one, three or six month SOFR. As of September 30, 2026, the one, three and six month SOFR was 3.91%, 4.08% and 4.27%, respectively. As of September 30, 2026, the applicable spread in effect was 1.525%. In addition to the stated interest expense on the Revolving Credit Facility, the Fund is required to pay a commitment fee of 0.325% per annum on any unused portion of the Revolving Credit Facility.

The Revolving Credit Facility is secured by certain assets in the Fund’s portfolio and excludes investments held by ASIF Funding I (as defined below) under the SG Funding Facility, those held by ASIF Funding II (as defined below) under the SB Funding Facility, those held by ASIF Funding III (as defined below) under the BNP Funding Facility and those held by ADL CLO 3, ADL CLO 5 and ADL CLO 8 (each as defined below), and certain other investments.

For the three and nine months ended September 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Credit Facility were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Stated interest expense$23,990 $11,637 $58,040 $16,456 
Credit facility fees1,947 2,008 5,429 5,885 
Amortization of debt issuance costs2,075 1,163 4,771 2,860 
Total interest and credit facility fees expense$28,012 $14,808 $68,240 $25,201 
Cash paid for interest expense$17,231 $12,759 $54,314 $22,348 
Average stated interest rate5.16 %5.91 %5.13 %5.93 %
Average outstanding balance$1,819,735 $770,921 $1,490,535 $365,761 

SG Funding Facility

The Fund and the Fund’s wholly owned subsidiary, ASIF Funding I, LLC (“ASIF Funding I”), are party to a revolving funding facility (as amended, the “SG Funding Facility”), that allows ASIF Funding I to borrow up to $2,325,000 at any one time outstanding. The SG Funding Facility consists of a $650,000 term loan tranche with a stated maturity date of August 1, 2030 and a $1,675,000 revolving tranche with an end of the reinvestment period and a stated maturity date of August 1, 2028 and August 1, 2030, respectively. The SG Funding Facility also provides for an “accordion” feature that allows ASIF Funding I, under certain circumstances, to increase the overall size of the SG Funding Facility to a maximum of $2,500,000.

In addition, the Fund, as transferor, and ASIF Funding I, as transferee, are party to a contribution agreement, pursuant to which the Fund will transfer to ASIF Funding I certain originated or acquired loans and related assets from time to time. The obligations of ASIF Funding I under the SG Funding Facility are secured by substantially all assets held by ASIF Funding I.

Under the SG Funding Facility, the Fund and ASIF Funding I, as applicable, have made representations and warranties regarding their businesses, among other things, and are required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the SG Funding Facility. As of September 30, 2026, the Fund and ASIF Funding I were in compliance in all material respects with the terms of the SG Funding Facility.
As of September 30, 2026 and December 31, 2025, there was $1,470,811 and $612,811 outstanding, respectively, under the SG Funding Facility. Since February 6, 2026, the interest rate charged on the SG Funding Facility is based on SOFR plus (i) 1.75% per annum, with respect to $500,000 of commitments and (ii) 1.80% per annum, with respect to $1,825,000 of commitments. From December 5, 2025 to February 5, 2026, the interest rate charged on the SG Funding Facility was based on SOFR plus an applicable margin of 1.80% per annum. From August 1, 2025 to December 4, 2025, the interest rate charged on the SG Funding Facility was based on SOFR plus an applicable margin of (i) with respect to term loans under the SG Funding Facility, 1.85% per annum, and (ii) with respect to revolving loans under the SG Funding Facility, 1.90% per annum. Prior to August 1, 2025, the interest rate charged on the SG Funding Facility was based on SOFR plus an applicable margin of 2.05% per annum. In addition to the stated interest expense on the SG Funding Facility, ASIF Funding I is required to pay, among other fees, a daily commitment fee on any monthly distribution date, termination date or on the date of any payment or prepayment of a loan outstanding under the SG Funding Facility.

For the three and nine months ended September 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SG Funding Facility were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Stated interest expense$20,926 $14,884 $50,548 $41,882 
Credit facility fees1,058 1,152 1,956 3,910 
Amortization of debt issuance costs1,105 958 3,218 2,854 
Total interest and credit facility fees expense$23,089 $16,994 $55,722 $48,646 
Cash paid for interest expense$21,853 $16,239 $51,623 $46,016 
Average stated interest rate5.57 %6.23 %5.51 %6.34 %
Average outstanding balance$1,470,811 $935,637 $1,209,034 $871,539 

SB Funding Facility

The Fund and the Fund’s wholly owned subsidiary, ASIF Funding II, LLC (“ASIF Funding II”), are party to a revolving funding facility (as amended, the “SB Funding Facility”), that allows ASIF Funding II to borrow up to $1,500,000 at any one time outstanding, of which $1,125,000 was available as of September 30, 2026 and the remaining $375,000 became fully available after October 29, 2026. The end of the reinvestment period and the stated maturity date are July 29, 2028 and January 29, 2035, respectively.

In addition, the Fund, as transferor, and ASIF Funding II, as transferee, are party to a contribution agreement, pursuant to which the Fund will transfer to ASIF Funding II certain originated or acquired loans and related assets from time to time. The obligations of ASIF Funding II under the SB Funding Facility are secured by substantially all assets held by ASIF Funding II.

Under the SB Funding Facility, the Fund and ASIF Funding II, as applicable, have made representations and warranties regarding their businesses, among other things, and are required to comply with various covenants, servicing procedures, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the SB Funding Facility. The SB Funding Facility includes usual and customary events of default for facilities of this nature. As of September 30, 2026, the Fund and ASIF Funding II were in compliance in all material respects with the terms of the SB Funding Facility.

As of September 30, 2026 and December 31, 2025, there was $650,000 and $400,000 outstanding, respectively, under the SB Funding Facility. Since January 29, 2026, the interest rate charged on the SB Funding Facility is based on SOFR plus an applicable margin of (i) 1.80% during the reinvestment period and (ii) 2.00% following the reinvestment period. From April 8, 2025 to January 28, 2026, the interest rate charged on the SB Funding Facility was based on SOFR plus an applicable margin of (i) 1.90% during the reinvestment period and (ii) 2.20% following the reinvestment period. Prior to April 8, 2025, the interest rate charged on the SB Funding Facility was based on SOFR plus an applicable margin of (i) 2.10% during the reinvestment period and (ii) 2.40% following the reinvestment period. As of September 30, 2026, the applicable spread in effect was 1.80%. In addition to the stated interest expense on the SB Funding Facility, ASIF Funding II is also required to pay, among other fees, a commitment fee of 0.50% per annum on any unused portion of the SB Funding Facility between 0.50%, 0.75% and 1.00% per annum depending on the aggregate amount of unused commitments under the SB Funding Facility.
For the three and nine months ended September 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SB Funding Facility were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Stated interest expense$9,064 $3,622 $21,450 $6,983 
Credit facility fees630 684 2,209 1,547 
Amortization of debt issuance costs420 244 1,179 576 
Total interest and credit facility fees expense$10,114 $4,550 $24,838 $9,106 
Cash paid for interest expense$8,322 $2,532 $20,616 $6,761 
Average stated interest rate5.57 %6.20 %5.53 %6.25 %
Average outstanding balance$636,957 $228,804 $511,538 $147,436 

BNP Funding Facility

The Fund and the Fund’s wholly owned subsidiary, ASIF Funding III, LLC (“ASIF Funding III”), are party to a revolving funding facility (the “BNP Funding Facility”), that allows ASIF Funding III to borrow up to $1,000,000. The end of the reinvestment period and the stated maturity date are October 21, 2028 and October 21, 2029, respectively.

In addition, the Fund, as transferor, and ASIF Funding III, as transferee, are party to a contribution agreement, pursuant to which the Fund will transfer to ASIF Funding III certain originated or acquired loans and related assets from time to time. The obligations of ASIF Funding III under the BNP Funding Facility are secured by substantially all assets held by ASIF Funding III.

Under the BNP Funding Facility, the Fund and ASIF Funding III, as applicable, have made representations and warranties regarding their businesses, among other things, and are required to comply with various covenants, servicing procedures, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the BNP Funding Facility. The BNP Funding Facility includes usual and customary events of default for facilities of this nature. As of September 30, 2026, the Fund and ASIF Funding III were in compliance in all material respects with the terms of the BNP Funding Facility.

As of September 30, 2026 and December 31, 2025, there was $568,000 and $900,000 outstanding, respectively, under the BNP Funding Facility. Since October 21, 2025, the interest rate charged on the BNP Funding Facility is based on SOFR plus an applicable margin of (i) 1.30% during the reinvestment period and (ii) 2.30% following the reinvestment period. Prior to October 21, 2025, the interest rate charged on the BNP Funding Facility was based on SOFR plus an applicable margin of (i) 1.40% during the reinvestment period and (ii) 2.40% following the reinvestment period. As of September 30, 2026, the applicable spread in effect was 1.30%. In addition to the stated interest expense on the BNP Funding Facility, ASIF Funding III is also required to pay, among other fees, a commitment fee dependent on the aggregate amount of unused commitments under the BNP Funding Facility.

For the three and nine months ended September 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the BNP Funding Facility were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Stated interest expense$7,483 $6,224 $25,133 $15,405 
Credit facility fees257 — 661 150 
Amortization of debt issuance costs634 245 1,881 725 
Total interest and credit facility fees expense$8,374 $6,469 $27,675 $16,280 
Cash paid for interest expense$7,537 $5,440 $27,398 $10,628 
Average stated interest rate5.02 %5.71 %5.03 %5.70 %
Average outstanding balance$582,837 $421,630 $659,308 $354,471 
Debt Securitizations

Certain of the Fund’s wholly owned, consolidated subsidiaries (Ares Direct Lending CLO 3 LLC (“ADL CLO 3”), Ares Direct Lending CLO 5 LLC (“ADL CLO 5”) and Ares Direct Lending CLO 8 LLC (“ADL CLO 8” and, together with ADL CLO 3 and ADL CLO 5, the “CLO Subsidiaries”)) have completed on-balance sheet financings through term debt securitizations (also known as collateralized loan obligations), which are consolidated by the Fund for financial reporting purposes and count as debt for the purposes of determining the Fund’s asset coverage. These include (i) a $694,100 term debt securitization completed by ADL CLO 3 (the “ADL CLO 3 Debt Securitization”), (ii) a $499,100 term debt securitization completed by ADL CLO 5 (the “ADL CLO 5 Debt Securitization”) and (iii) a $696,400 term debt securitization completed by ADL CLO 8 (the “ADL CLO 8 Debt Securitization”). The Fund refers to the ADL CLO 3 Debt Securitization, ADL CLO 5 Debt Securitization and ADL CLO 8 Debt Securitization collectively as the “Debt Securitizations.” The Fund’s investment adviser serves as asset manager to the CLO Subsidiaries under asset management agreements with each CLO Subsidiary and has agreed to waive any management fees from the CLO Subsidiaries for such services.

ADL CLO 3 Debt Securitization

The following table presents information on the ADL CLO 3 Debt Securitization as of September 30, 2026:

ClassTypePrincipal Amount
Outstanding		Maturity DateInterest Rate
January 2037 Class A-1 CLO Notes(1)Senior Secured Floating Rate$399,000 January 20, 2037
SOFR+1.58%
January 2037 Class A-2 CLO Notes(1)Senior Secured Floating Rate35,000 January 20, 2037
SOFR+1.75%
January 2037 Class B CLO Notes(1)Senior Secured Floating Rate42,000 January 20, 2037
SOFR+1.85%
Total January 2037 CLO Secured Notes476,000 
SOFR+1.62%
January 2037 CLO Subordinated Notes(2)Subordinated218,100 January 20, 2037None
Total January 2037 CLO Notes$694,100 
________________________________________

(1)The January 2037 Class A-1 CLO Notes, the January 2037 Class A-2 CLO Notes and the January 2037 Class B CLO Notes are referred to collectively as the “January 2037 CLO Secured Notes” and are the secured obligations of ADL CLO 3 and are backed by a diversified portfolio of first lien senior secured loans contributed by the Fund to ADL CLO 3. The January 2037 CLO Secured Notes and the January 2037 CLO Subordinated Notes are referred to collectively as the “January 2037 CLO Notes.”

(2)The Fund retained all of the January 2037 CLO Subordinated Notes, as such, the January 2037 CLO Subordinated Notes are eliminated in consolidation.

The indenture governing the ADL CLO 3 Debt Securitization contains customary covenants and events of default as well as certain conditions pursuant to which additional loans can be acquired by ADL CLO 3. Through January 20, 2029, all principal collections received on the underlying collateral may be used by ADL CLO 3 to purchase new collateral, including additional collateral from the Fund.
ADL CLO 5 Debt Securitization

The following table presents information on the ADL CLO 5 Debt Securitization as of September 30, 2026:

ClassTypePrincipal Amount
Outstanding		Maturity DateInterest Rate
April 2038 Class A-1 CLO Notes(1)Senior Secured Floating Rate$210,000 April 20, 2038
SOFR+1.38%
April 2038 Class A-1A CLO Loans(1)Senior Secured Floating Rate75,000 April 20, 2038
SOFR+1.38%
April 2038 Class A-2 CLO Notes(1)Senior Secured Floating Rate15,000 April 20, 2038
SOFR+1.60%
April 2038 Class B CLO Notes(1)Senior Secured Floating Rate50,000 April 20, 2038
SOFR+1.70%
Total April 2038 CLO Secured Debt350,000 
SOFR+1.44%
April 2038 CLO Subordinated Notes(2)Subordinated149,100 April 20, 2038None
Total April 2038 CLO Debt$499,100 
________________________________________

(1)The April 2038 Class A-1 CLO Notes, the April 2038 Class A-1A CLO Loans, the April 2038 Class A-2 CLO Notes and the April 2038 Class B CLO Notes are referred to collectively as the “April 2038 CLO Secured Debt” and are the secured obligations of ADL CLO 5 and are backed by a diversified portfolio of first lien senior secured loans contributed by the Fund to ADL CLO 5.

(2)The Fund retained all of the April 2038 CLO Subordinated Notes, as such, the April 2038 CLO Subordinated Notes are eliminated in consolidation. The April 2038 CLO Secured Debt and the April 2038 CLO Subordinated Notes are referred to collectively as the “April 2038 CLO Debt.”

The documents governing the ADL CLO 5 Debt Securitization contain customary covenants and events of default as well as certain conditions pursuant to which additional loans can be acquired by ADL CLO 5. Through April 20, 2030, all principal collections received on the underlying collateral may be used by ADL CLO 5 to purchase new collateral, including additional collateral from the Fund.

ADL CLO 8 Debt Securitization

The following table presents information on the ADL CLO 8 Debt Securitization as of September 30, 2026:

ClassTypePrincipal Amount
Outstanding		Maturity DateInterest Rate
January 2039 Class A-1 CLO Notes(1)Senior Secured Floating Rate$356,000 January 20, 2039
SOFR+1.40%
January 2039 Class A-1A CLO Loans(1)Senior Secured Floating Rate50,000 January 20, 2039
SOFR+1.40%
January 2039 Class A-2 CLO Notes(1)Senior Secured Floating Rate28,000 January 20, 2039
SOFR+1.60%
January 2039 Class B CLO Notes(1)Senior Secured Floating Rate42,000 January 20, 2039
SOFR+1.75%
January 2039 Class C CLO Notes(1)Senior Secured Floating Rate56,000 January 20, 2039
SOFR+2.00%
Total January 2039 CLO Secured Debt532,000 
SOFR+1.50%
January 2039 CLO Subordinated Notes(2)Subordinated164,400 January 20, 2039None
Total January 2039 CLO Debt$696,400 
________________________________________

(1)The January 2039 Class A-1 CLO Notes, the January 2039 Class A-1A CLO Loans, the January 2039 Class A-2 CLO Notes, the January 2039 Class B CLO Notes and the January 2039 Class C CLO Notes are referred to collectively as the “January 2039 CLO Secured Debt” and are the secured obligations of ADL CLO 8 and are backed by a diversified portfolio of first lien senior secured loans contributed by the Fund to ADL CLO 8.

(2)The Fund retained all of the January 2039 CLO Subordinated Notes, as such, the January 2039 CLO Subordinated Notes are eliminated in consolidation. The January 2039 CLO Secured Debt and the January 2039 CLO Subordinated Notes are referred to collectively as the “January 2039 CLO Debt.”
The documents governing the ADL CLO 8 Debt Securitization contain customary covenants and events of default as well as certain conditions pursuant to which additional loans can be acquired by ADL CLO 8. Through January 20, 2031, all principal collections received on the underlying collateral may be used by ADL CLO 8 to purchase new collateral, including additional collateral from the Fund.

The interest rate charged on the January 2037 CLO Secured Notes, the April 2038 CLO Secured Debt and the January 2039 CLO Secured Debt is based on SOFR plus a blended weighted average spread of 1.62%, 1.44% and 1.50%, respectively. For the three and nine months ended September 30, 2026 and 2025, the components of interest expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the January 2037 CLO Secured Notes, the April 2038 CLO Secured Debt and the January 2039 CLO Secured Debt were as follows.

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Stated interest expense$18,194 $12,093 $53,771 $30,776 
Amortization of debt issuance costs4 52 547 304 
Total interest expense$18,198 $12,145 $54,318 $31,080 
Cash paid for interest expense$27,257 $7,082 $49,460 $19,733 
Average stated interest rate5.24 %5.73 %5.22 %5.81 %
Average outstanding balance$1,358,000 $826,000 $1,358,000 $699,077 

Unsecured Notes

The Fund has issued certain unsecured notes (the Fund refers to each series of unsecured notes using the defined term set forth under the “Unsecured Notes” column of the table below and collectively refers to all such series as the “Unsecured Notes”), that pay interest semi-annually and all principal amounts are due upon maturity. Each of the Unsecured Notes may be redeemed in whole or in part at any time at the Fund’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indentures governing each of the Unsecured Notes, plus any accrued and unpaid interest. Certain key terms related to the features of the Unsecured Notes as of September 30, 2026 are listed below.

Unsecured NotesAggregate Principal Amount IssuedEffective Stated Interest Rate(1)Original Issuance DateMaturity Date
March 2028 Notes$1,000,000 5.465 %November 21, 2024March 15, 2028
September 2028 Notes$600,000 5.489 %June 9, 2025September 9, 2028
January 2029 Notes$600,000 5.439 %September 15, 2025January 15, 2029
August 2029 Notes$700,000 6.025 %June 5, 2024August 15, 2029
February 2030 Notes$750,000 6.119 %October 2, 2024February 15, 2030
September 2030 Notes$500,000 5.791 %June 9, 2025September 9, 2030
January 2031 Notes$500,000 5.763 %September 15, 2025January 15, 2031
April 2031 Notes$700,000 5.692 %January 29, 2026April 15, 2031
March 2032 Notes$750,000 5.489 %January 21, 2025March 21, 2032
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(1)The effective stated interest rates include the impact of interest rate swaps.

The Unsecured Notes were sold to initial purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act, and for the resale by such initial purchasers to (i) qualified institutional buyers in transactions exempt from registration under the Securities Act pursuant to Rule 144A thereunder or (ii) certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Unsecured Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

In connection with the issuances of the Unsecured Notes, the Fund entered into registration rights agreements (each, a “Registration Rights Agreement”) for the benefit of the initial purchasers of the Unsecured Notes. Pursuant to these Registration Rights Agreements, the Fund is obligated to file one or more registration statements with the SEC with respect to an offer to exchange each series of Unsecured Notes for a new issue of debt securities registered under the Securities Act with
terms substantially identical to such series of Unsecured Notes (except for provisions relating to transfer restrictions and payment of additional interest) and to use its commercially reasonable efforts to consummate such exchange offer on the earliest practicable date after the registration statement has become or been declared effective but in no event later than 365 days after the initial issuance of such series of Unsecured Notes. If the Fund fails to satisfy its registration obligations under each Registration Rights Agreement, it will be required to pay additional interest to the holders of the applicable Unsecured Notes.

Pursuant to the terms of the Registration Rights Agreements, the Fund filed registration statements with the SEC and completed exchange offers to exchange the unregistered notes of each series of Unsecured Notes for newly issued registered notes with substantially identical terms to such series of Unsecured Notes. The following exchange offers were completed during 2025 and 2026:

Unsecured NotesOriginal Issuance DateExchange Offer CommencedExchange Offer Expired(1)
March 2028 NotesNovember 21, 2024April 24, 2025May 23, 2025
August 2029 NotesJune 5, 2024April 24, 2025May 23, 2025
February 2030 NotesOctober 2, 2024April 24, 2025May 23, 2025
March 2032 NotesJanuary 21, 2025April 24, 2025May 23, 2025
September 2028 NotesJune 9, 2025April 28, 2026May 28, 2026
January 2029 NotesSeptember 15, 2025April 28, 2026May 28, 2026
September 2030 NotesJune 9, 2025April 28, 2026May 28, 2026
January 2031 NotesSeptember 15, 2025April 28, 2026May 28, 2026
April 2031 NotesJanuary 29, 2026April 28, 2026May 28, 2026
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(1)The related exchange was completed promptly following the expiration of the applicable exchange offer.

AMCM served as an initial purchaser in connection with the Fund’s offering of certain of the Unsecured Notes issued during the nine months ended September 30, 2026 and 2025. Under the purchase agreements the Fund entered into in connection with such issuances, AMCM received an aggregate of $195 and $844 of underwriting and advisory fees for the nine months ended September 30, 2026 and 2025, respectively. The underwriting and advisory fees AMCM received were on terms equivalent to those of other initial purchasers.
In connection with the Unsecured Notes issued by the Fund, the Fund has entered into interest rate swaps to more closely align the interest rates of such liabilities with the Fund’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swaps, the Fund receives a fixed interest rate and pays a floating interest rate based on SOFR plus an applicable spread. The Fund designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. See Note 6 for more information on the interest rate swaps.
 
For the three and nine months ended September 30, 2026 and 2025, the components of interest expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Unsecured Notes were as follows:

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2026202520262025
Stated interest expense(1)$86,844 $72,112 $253,257 $175,410 
Amortization of debt issuance costs2,892 1,994 8,381 4,603 
Accretion of discount3,037 2,085 8,787 4,850 
Net (gain) loss on interest rate swaps accounted for as hedge instruments and the related hedged items1,345 (118)2,026 (1,878)
Total interest expense$94,118 $76,073 $272,451 $182,985 
Cash paid for interest expense(1)$97,011 $68,486 $258,579 $167,027 
Average stated interest rate(1)5.57 %6.26 %5.54 %6.29 %
Average outstanding balance$6,100,000 $4,491,305 $6,025,641 $3,668,865 
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(1)Includes the impact of interest rate swaps.
 
The Unsecured Notes contain certain covenants, including covenants requiring the Fund to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act, or any successor provisions, and to provide financial information to the holders of such notes under certain circumstances. These covenants are subject to important limitations and exceptions set forth in the indentures governing such notes. As of September 30, 2026, the Fund was in compliance in all material respects with the terms of the respective indentures governing each of the Unsecured Notes.
 
The Unsecured Notes are the Fund’s senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to the Fund’s existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of its secured indebtedness (including existing unsecured indebtedness that the Fund later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Fund’s subsidiaries, financing vehicles or similar facilities.