Quarterly report pursuant to Section 13 or 15(d)

Borrowings (Tables)

v3.23.3
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Outstanding Debt Obligations
The Company’s outstanding debt obligations were as follows:
September 30, 2023
Aggregate
Principal
Committed		 Outstanding
Principal		 Carrying
Value
Unused
Portion(1)
Amount
Available(2)
HLEND A Funding Facility(3)
$ 800,000  $ 600,542  $ 600,542  $ 199,458  $ 27,451 
HLEND B Funding Facility(4)
1,000,000  490,509  490,509  509,491  367,551 
HLEND C Funding Facility 750,000  487,500  487,500  262,500  25,193 
HLEND D Funding Facility 500,000  —  —  500,000  402,197 
Revolving Credit Facility(5)
1,275,000  751,169  751,169  523,831  523,831 
November 2025 Notes(6)
170,000  170,000  167,054  —  — 
November 2027 Notes(6)
155,000  155,000  151,634  —  — 
March 2026 Notes(7)
276,000  276,000  270,419  —  — 
March 2028 Notes(7)
124,000  124,000  119,941  —  — 
September 2027 Notes(8)
75,000  75,000  73,555  —  — 
September 2028 Notes(8)
250,000  250,000  244,492  —  — 
Total $ 5,375,000  $ 3,379,720  $ 3,356,815  $ 1,995,280  $ 1,346,223 
(1)The unused portion is the amount upon which commitment fees, if any, are based.
(2)The amount available reflects any limitations related to each respective credit facility’s borrowing base.
(3)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date. As of September 30, 2023, the Company had outstanding borrowings denominated in Euros (EUR) of 7.5 million, in Australian Dollars (AUD) of 156.0 million, and in British Pounds (GBP) of 12.9 million.
(4)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date. As of September 30, 2023, the Company had outstanding borrowings denominated in Euros (EUR) of 3.4 million, in Australian Dollars (AUD) of 108.0 million, and in British Pounds (GBP) of 90.3 million.
(5)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date. As of September 30, 2023, the Company had outstanding borrowings denominated in Euros (EUR) of 231.1 million, in Australian Dollars (AUD) of 95.2 million, in Canadian Dollars (CAD) of 47.1 million and in British Pounds (GBP) of 94.2 million.
(6)The carrying value of the Company's November 2025 Notes and November 2027 Notes are presented net of unamortized debt issuance costs of $(1.4) million and $(1.5) million, respectively, as of September 30, 2023 and includes the change in the notes carrying value of $(1.6) million and $(1.9) million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(7)The carrying value of the Company's March 2026 Notes and March 2028 Notes are presented net of unamortized debt issuance costs of $(2.1) million and $(1.0) million, respectively, as of September 30, 2023 and includes the change in the notes carrying value of $(3.5) million and $(3.1) million, respectively, as a result of the qualifying fair value hedge relationship as described above.
(8)The carrying value of the Company's September 2027 Notes and September 2028 Notes are presented net of unamortized debt issuance costs of $(0.7) million and $(2.6) million, respectively, as of September 30, 2023 and includes the change in the notes carrying value of $(0.7) million and $(2.9) million, respectively, as a result of the qualifying fair value hedge relationship as described above.
December 31, 2022
Aggregate
Principal
Committed		 Outstanding
Principal		 Carrying
Value
Unused
Portion(1)
Amount
Available(2)
HLEND A Funding Facility(3)
$ 800,000  $ 453,663  $ 453,663  $ 346,337  $ 138,870 
HLEND B Funding Facility(4)
1,000,000  482,084  482,084  517,916  104,760 
Revolving Credit Facility(5)
1,125,000  704,819  704,819  420,181  420,181 
November 2025 Notes(6)
170,000  170,000  168,462  —  — 
November 2027 Notes(6)
155,000  155,000  153,958  —  — 
Short-Term Borrowings 379,081  379,081  379,081  —  — 
Total $ 3,629,081  $ 2,344,647  $ 2,342,067  $ 1,284,434  $ 663,811 
(1)The unused portion is the amount upon which commitment fees, if any, are based.
(2)The amount available reflects any limitations related to each respective credit facility’s borrowing base.
(3)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date. As of December 31, 2022, the Company had outstanding borrowings denominated in Euros (EUR) of 8.3 million, in Australian Dollars (AUD) of 34.9 million, and in British Pounds (GBP) of 14.3 million.
(4)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date. As of December 31, 2022, the Company had outstanding borrowings denominated in Euros (EUR) of 3.4 million, in Australian Dollars (AUD) of 39.0 million, and in British Pounds (GBP) of 36.3 million.
(5)The Company may borrow amounts in USD or certain other permitted currencies. Debt outstanding denominated in currencies other than USD has been converted to USD using the applicable foreign currency exchange rate as of the applicable reporting date. As of December 31, 2022, the Company had outstanding borrowings denominated in Euros (EUR) of 111.2 million, in Australian Dollars (AUD) of 285.3 million, in Canadian Dollars (CAD) of 47.1 million and in British Pounds (GBP) of 59.5 million.
(6)The carrying value of the Company's November 2025 Notes and November 2027 Notes are presented net of unamortized debt issuance costs of $1.9 million and $1.7 million, respectively, as of December 31, 2022 and includes the change in the notes carrying value of $0.3 million and $0.7 million, respectively, as a result of the qualifying fair value hedge relationship as described above.
The following table presents information on the 2023 CLO Secured Notes and 2023 CLO Unsecured Notes issued in the 2023 Debt Securitization:

Description Type Principal Outstanding Interest Rate Credit Rating
Class A Notes Senior Secured Floating Rate $ 246,500 
SF + 2.60%
 AAA
Class B Notes Senior Secured Floating Rate 42,500 
SF + 3.35%
 AA
Class C Notes Secured Deferrable Floating Rate 34,000 
SF + 4.15%
 A
Total Secured Notes $ 323,000 
Subordinated Notes(1)
106,100  None Not rated
Total Notes $ 429,100 

(1)The Company retained all of the 2023 CLO Subordinated Notes issued in the 2023 Debt Securitization which are eliminated in consolidation..
Components of Interest Expense The components of interest expense were as follows:
Three Months Ended September 30,
2023 2022
Borrowing interest expense $ 61,156  $ 11,722 
Facility unused fees 1,254  546 
Amortization of financing and debt issuance costs 2,273  844 
Gain (loss) from interest rate swaps accounted for as hedges and the related hedged items:
Interest rate swaps (9,576) — 
Hedged items 11,558  — 
Total interest expense $ 66,665  $ 13,112 
Cash paid for interest expense $ 59,534  $ 6,613 
Nine Months Ended September 30,
2023 2022
Borrowing interest expense $ 164,273  $ 14,762 
Facility unused fees 4,286  1,436 
Amortization of financing and debt issuance costs 5,820  1,288 
Financing fees (refer to Footnote 8) —  3,366 
Backstop fees (refer to Footnote 8) —  1,059 
Gain (loss) from interest rate swaps accounted for as hedges and the related hedged items:
Interest rate swaps (14,620) — 
Hedged items 18,469  — 
Total interest expense $ 178,228  $ 21,911 
Cash paid for interest expense $ 148,921  $ 13,245