XML 34 R17.htm IDEA: XBRL DOCUMENT

Asset-Specific Debt, Net

3 Months Ended

Mar. 31, 2025

SECURED DEBT, NET

Our secured debt represents borrowings under our secured credit facilities. During the three months ended March 31, 2025,

we closed $732.4 million of new borrowings against $908.0 million of collateral assets.

The following table details our secured debt ($ in thousands):


	Secured Debt Borrowings Outstanding
	March 31, 2025	December 31, 2024
Secured credit facilities	$10,011,541	$9,705,529
Deferred financing costs(1)	(11,514)	(9,195)
Net book value of secured debt	$10,000,027	$9,696,334

(1)Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred

and recognized as a component of interest expense over the life of each related facility.

Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with

sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured

to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. Our

credit facilities are diversified across 14 counterparties, primarily consisting of top global financial institutions to minimize

our counterparty risk exposure.

The following table details our secured credit facilities as of March 31, 2025 ($ in thousands):


March 31, 2025
							Recourse Limitation
Currency	Lenders(1)	Borrowings	Wtd. Avg. Maturity(2)	Loan Count	Collateral(3)	Wtd. Avg. Maturity(4)	Wtd. Avg.	Range
USD	13	$4,492,461	December 2026	87	$7,501,830	January 2027	39%	25% - 100%
GBP	6	2,301,773	June 2027	16	3,049,147	June 2027	25%	25%
EUR	7	1,757,902	December 2026	10	2,404,172	December 2026	38%	25% - 100%
Others(5)	4	1,459,405	June 2028	7	1,824,255	June 2028	25%	25%
Total	14	$10,011,541	April 2027	120	$14,779,404	April 2027	34%	25% - 100%

(1)Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of

facility lenders.

(2)Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-

average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all

extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured

credit facility is used.

(3)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.

(4)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid

prior to such date.

(5)Includes Australian Dollar, Canadian Dollar, Swedish Krona, and Swiss Franc currencies.

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which

collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a

mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the

limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each

facility, and therefore vary within and among the facilities.

The following tables detail the spread of our secured credit facilities as of March 31, 2025 and December 31, 2024 ($ in

thousands):

Three Months Ended

March 31, 2025

Spread(1)

New Financings(2)

Total

Borrowings

Wtd. Avg.

All-in

Cost(1)(3)(4)

Collateral(5)

Wtd. Avg.

All-in

Yield(1)(3)

Net Interest

Margin(6)

+ 1.50% or less

$332,431

$4,070,890

+1.52%

$6,215,254

+3.19%

+1.67%

+ 1.51% to + 1.75%

315,623

2,598,070

+1.77%

3,391,195

+3.43%

+1.66%

+ 1.76% to + 2.00%

—

952,714

+2.09%

1,751,216

+3.70%

+1.61%

+ 2.01% or more

84,305

2,389,867

+2.61%

3,421,739

+4.27%

+1.66%

Total

$732,359

$10,011,541

+1.90%

$14,779,404

+3.55%

+1.65%

Year Ended

December 31, 2024

Spread(1)

New Financings(2)

Total

Borrowings

Wtd. Avg.

All-in

Cost(1)(3)(4)

Collateral(5)

Wtd. Avg.

All-in

Yield(1)(3)

Net Interest

Margin(6)

+ 1.50% or less

$165,616

$3,976,192

+1.53%

$6,185,925

+3.18%

+1.65%

+ 1.51% to + 1.75%

74,118

2,238,376

+1.78%

3,140,937

+3.52%

+1.74%

+ 1.76% to + 2.00%

—

969,541

+2.09%

1,802,431

+3.67%

+1.58%

+ 2.01% or more

374,407

2,521,420

+2.61%

3,678,528

+4.31%

+1.70%

Total

$614,141

$9,705,529

+1.92%

$14,807,821

+3.58%

+1.66%

(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include

SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.

(2)Represents the amount of new borrowings we closed during the three months ended March 31, 2025 and year ended

December 31, 2024, respectively.

(3)In addition to spread, the cost includes the associated deferred fees and expenses related to the respective

borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension

fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans

accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets.

(4)Represents the weighted-average all-in cost as of March 31, 2025 and December 31, 2024, respectively, and is not

necessarily indicative of the spread applicable to recent or future borrowings.

(5)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.

(6)Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral

in our discretion within certain maximum/minimum amounts and frequency limitations. As of March 31, 2025, there was

an aggregate $915.7 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of March 31, 2025, we are subject to the following financial covenants related to our secured debt: (i) our ratio of

earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements,

shall be not less than 1.25 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $3.6 billion

as of each measurement date plus 75% to 85% of the net cash proceeds of future equity issuances subsequent to March 31,

2025; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) no more than 5% of our recourse

indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of March 31, 2025 and

December 31, 2024, we were in compliance with these covenants.

During the three months ended March 31, 2025, the financial covenant under each applicable secured debt agreement

related to the ratio of our EBITDA to fixed charges, as noted above, was amended so that the ratio shall be not less than

1.25 to 1.0 with respect to each of the four fiscal quarters beginning with the quarter ended September 30, 2024, and shall

be not less than 1.3 to 1.0 thereafter.

SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through collateralized loan obligations, or CLOs. The CLOs are consolidated

in our financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 20 for

further discussion of our CLOs. The following tables detail our securitized debt obligations and the underlying collateral

assets that are financed by our CLOs ($ in thousands):


	March 31, 2025
Securitized Debt Obligations		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)(3)	Term(4)
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	$831,250	$821,167	+ 2.08%	October 2042
Underlying Collateral Assets		19	1,000,000	1,000,000	+ 3.41%	July 2028
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	670,149	670,149	+ 1.42%	May 2038
Underlying Collateral Assets		22	849,996	849,996	+ 2.90%	October 2026
2020 FL3 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	469,730	469,730	+ 2.44%	November 2037
Underlying Collateral Assets		12	637,509	637,509	+ 3.04%	December 2026
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	598,850	598,850	+ 1.65%	February 2038
Underlying Collateral Assets		12	831,395	831,395	+ 3.27%	October 2026
Total
Senior CLO Securities Outstanding(5)		4	$2,569,979	$2,559,896	+1.88%
Underlying Collateral Assets		65	$3,318,900	$3,318,900	+ 3.31%

(1)The book value of underlying collateral assets excludes any applicable CECL reserves.

(2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan

origination costs, purchase discounts, and accrual of exit fees.

(3)The weighted-average all-in yield and cost are expressed as a spread over SOFR. All-in yield excludes loans

accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets.

(4)Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower, and excludes REO assets. Repayments of securitized debt

obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents

the rated final distribution date of the securitizations.

(5)During the three months ended March 31, 2025, we recorded $27.6 million of interest expense related to our

securitized debt obligations.


	December 31, 2024
Securitized Debt Obligations		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)(3)	Term(4)
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	$785,453	$785,442	+ 1.39%	May 2038
Underlying Collateral Assets		22	952,764	952,764	+ 2.95%	August 2026
2020 FL3 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	552,664	552,664	+ 1.92%	November 2037
Underlying Collateral Assets		12	743,914	743,914	+ 2.92%	June 2026
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	598,850	598,850	+ 1.50%	February 2038
Underlying Collateral Assets		12	855,725	855,725	+ 2.79%	August 2026
Total
Senior CLO Securities Outstanding(5)		3	$1,936,967	$1,936,956	+1.57%
Underlying Collateral Assets		46	$2,552,403	$2,552,403	+2.98%

(1)The book value of underlying collateral assets excludes any applicable CECL reserves.

(2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan

origination costs, purchase discounts, and accrual of exit fees.

(3)The weighted-average all-in yield and cost are expressed as a spread over SOFR. All-in yield excludes loans

accounted for under the cost-recovery and nonaccrual methods, if any.

(4)Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the

related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of

the securitizations.

(5)During the year ended December 31, 2024, we recorded $157.0 million of interest expense related to our securitized

debt obligations.

ASSET-SPECIFIC DEBT, NET

The following table details our asset-specific debt ($ in thousands):


	March 31, 2025
Asset-Specific Debt		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)	Wtd. Avg. Term(3)
Financing provided		2	$494,081	$492,235	+ 3.36%	September 2029
Collateral assets		2	$611,628	$606,073	+ 4.58%	September 2029

	December 31, 2024
Asset-Specific Debt		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)	Wtd. Avg. Term(3)
Financing provided		2	$1,228,110	$1,224,841	+ 3.20%	June 2026
Collateral assets		2	$1,467,185	$1,459,864	+ 4.03%	June 2026

(1)The book value of underlying collateral assets excludes any applicable CECL reserves.

(2)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates,

which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and

index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost

includes the amortization of deferred origination fees and financing costs.

(3)The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all

extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case

to the corresponding collateral loans.

TERM LOANS, NET

As of March 31, 2025, the following senior term loan facilities, or Term Loans, were outstanding ($ in thousands):


Term Loans	Face Value	Interest Rate(1)	All-in Cost(1)(2)	Maturity
B-1 Term Loan	$309,268	+ 2.36%	+ 2.53%	April 23, 2026
B-4 Term Loan	803,105	+ 3.50%	+ 4.11%	May 9, 2029
B-5 Term Loan	648,375	+ 3.75%	+ 4.27%	December 10, 2028
Total face value	$1,760,748

(1)The B-4 Term Loan and the B-5 Term Loan borrowings are subject to a floor of 0.50%. The Term Loans are

indexed to one-month SOFR.

(2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the

Term Loans.

The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the aggregate initial principal

balance due in quarterly installments. The issue discount and transaction expenses on the B-1 Term Loan were $3.1 million

and $12.6 million, respectively. The issue discount and transaction expenses of the B-4 Term Loan were $17.3 million and

$10.3 million, respectively. The issue discount and transaction expenses of the B-5 Term loan were $3.3 million and

$5.9 million, respectively. These discounts and expenses are amortized into interest expense over the life of each Term

Loan. During the three months ended March 31, 2025, we recorded $36.2 million of interest expense related to our Term

Loans, including $2.2 million of amortization of deferred fees and expenses.

The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands):


	March 31, 2025	December 31, 2024
Face value	$1,760,748	$1,764,437
Deferred financing costs and unamortized discount	(30,183)	(32,364)
Net book value	$1,730,565	$1,732,073

The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of

March 31, 2025 and December 31, 2024, we were in compliance with this covenant. Refer to Note 2 for additional

discussion of our accounting policies for the Term Loans.

SENIOR SECURED NOTES, NET

As of March 31, 2025, the following senior secured notes, or Senior Secured Notes, were outstanding ($ in thousands):


Senior Secured Notes Issuance	Face Value	Interest Rate		All-in Cost(1)	Maturity
October 2021	$335,316	3.75%		4.06%	January 15, 2027
December 2024	450,000	7.75%	(2)	8.14%	December 1, 2029

(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.

(2)Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts

our fixed rate exposure to a SOFR + 3.95% floating rate exposure.

The transaction expenses on the senior secured notes due 2027, or the October 2021 senior secured notes, were

$6.3 million, which are amortized into interest expense over the life of the October 2021 senior secured notes. The

transaction expenses on the senior secured notes due 2029, or the December 2024 senior secured notes, were $7.9 million,

which are amortized into interest expense over the life of the December 2024 senior secured notes. During the three months

ended March 31, 2025, we recorded $12.6 million of interest expense related to our Senior Secured Notes, including

$697,000 of amortization of deferred fees and expenses.

There was no repurchase activity or gain on debt extinguishment during the three months ended March 31, 2025. During

the three months ended March 31, 2024, we repurchased an aggregate principal amount of $26.2 million of the October

2021 senior secured notes at a weighted-average price of 88%. This resulted in a gain on extinguishment of debt of

$3.0 million during the three months ended March 31, 2024.

The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in

thousands):


	March 31, 2025	December 31, 2024
Face value	$785,316	$785,316
Deferred financing costs	(9,237)	(9,857)
Hedging adjustments(1)	3,108	(4,424)
Net book value	$779,187	$771,035

(1)Represents the fair value of an interest rate swap that we entered into to convert the fixed rate exposure of the

December 2024 senior secured notes into floating rate. Refer to Note 14 for additional discussion.

The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets.

As of March 31, 2025 and 2024, we were in compliance with this covenant. Under certain circumstances, we may, at our

option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required to maintain

a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater. This covenant is not currently in effect

as the collateral securing our Senior Secured Notes has not been released.

CONVERTIBLE NOTES, NET

As of March 31, 2025, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands):


Convertible Notes Issuance	Face Value	Interest Rate	All-in Cost(1)	Conversion Price(2)	Maturity
March 2022 convertible notes	$266,157	5.50%	5.79%	$36.27	March 15, 2027

(1)Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the

effective interest method.

(2)Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible

Notes. The conversion rate represents the number of shares of class A common stock issuable per $1,000 principal

amount of Convertible Notes. The cumulative dividend threshold has not been exceeded as of March 31, 2025.

Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem

the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our

class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the

applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option

of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported

sale price of our class A common stock of $20.00 on March 31, 2025, the last trading day in the three months ended

March 31, 2025, was less than the per share conversion price of the Convertible Notes.

The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in

thousands):


	March 31, 2025	December 31, 2024
Face value	$266,157	$266,157
Deferred financing costs and unamortized discount	(2,259)	(2,541)
Net book value	$263,898	$263,616

The following table details our interest expense related to the Convertible Notes ($ in thousands):


	Three Months Ended March 31,
	2025	2024
Cash coupon	$3,660	$4,125
Discount and issuance cost amortization	282	319
Total interest expense	$3,942	$4,444

Accrued interest payable for the Convertible Notes was $649,000 and $4.3 million as of March 31, 2025 and December 31,

2024, respectively. Refer to Note 2 for additional discussion of our accounting policies for the Convertible Notes.