Carlyle Secured Lending's 2028 Baby Bonds: An Interesting 7.1-7.8% Yield

Summary

  • Carlyle Secured Lending is a BDC providing funding to US middle market companies with a focus on first-lien debt.
  • CGBD reported a 5.5% increase in net investment income in 2023, with a strong asset quality.
  • The 2028 debt securities offer a yield to call of approximately 7.1-7.2% and a yield to maturity of approximately 7.75-7.8%.
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Introduction

Carlyle Secured Lending (NASDAQ:CGBD) is a business development company providing US middle market companies (with an EBITDA between $25M and $100M, although the company recently also provided larger companies with funding) with access to funding. And while the BDC

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may initiate a first small long position in CGBDL, but that is unlikely to happen in the next 72 hours.

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