Carlyle Secured LendingNASDAQ: CGBD

Carlyle Secured Lending is a BDC that offers funding to middle market companies in the US, primarily through first-lien debt. CGBD saw a 5.5% rise in net investment income in 2023, with solid asset quality. The 2028 debt securities have a yield to call of around 7.1-7.2% and a yield to maturity of approximately 7.75-7.8%.

Carlyle Secured Lending has demonstrated strong performance, surpassing the BDC index with a year-to-date total return of 12.8%. Q4 2023 earnings were impressive, with net investment income per share rising by 8% and base dividend coverage increasing to 140%. The company anticipates steady earnings for the remainder of 2024 due to the strong and improving credit performance of its current portfolio.

Carlyle Secured Lending has re-rated to net asset value, limiting potential for further valuation upside. The business development company reported solid Q4 results, out-earning its dividend and raising it by 8%. With positive developments already reflected in the stock price, the appreciation potential is limited, leading to a Hold rating.

NEW YORK, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (“Carlyle Secured Lending”) (NASDAQ: CGBD) will host a conference call at 11:00 a.m. EST on Tuesday, February 27, 2024 to announce its fourth quarter and full year 2023 financial results, updated from 10:00 a.m. EST as part of the prior announcement. A news release containing the quarterly results will be issued after market close on Monday, February 26, 2024.

NEW YORK, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (“Carlyle Secured Lending”) (NASDAQ: CGBD) will host a conference call at 10:00 a.m. EST on Tuesday, February 27, 2024 to announce its fourth quarter and full year 2023 financial results. A news release containing the quarterly results will be issued after market close on Monday, February 26, 2024.

Carlyle Secured Lending is a conventional BDC with a market cap of $785 million, focusing on US middle market companies with EBITDA between $25 to $100 million. While CGBD has a well-structured portfolio with the right focus on first lien in a diversified manner, there are some elevated risks associated with subpar performance of the underlying investments. In this article, I elaborate on the key details behind my thesis of avoiding CGBD.

We take a look at the action in preferreds and baby bonds through the first week of December and highlight some of the key themes we are watching. Preferred stocks had a strong return of over 3% this week, pushing the sector to a 7% return for the year. BDC Prospect Capital completed a tender offer of their public preferred Series A, with low participation due to falling yields.

Carlyle Secured Lending focuses on secured debt investments in middle market companies with below investment grade debt. The BDC reported a net investment income of $27.1M and a net income of $29.1M for the quarter. The common shares offer a healthy dividend yield of over 11% but the 2028 debt securities could be an interesting, safer alternative.

Carlyle Secured Lending Inc. (NASDAQ:CGBD ) Q3 2023 Earnings Conference Call November 8, 2023 10:00 AM ET Company Participants Daniel Hahn - Shareholder Relations Aren LeeKong - Chief Executive Officer Tom Hennigan - Chief Financial Officer Conference Call Participants Operator Hello and welcome to the Carlyle Secured Lending Inc. Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.