The Company may enter into interest rate swap transactions from time to time to hedge fixed rate debt obligations and certain fixed rate debt investments. The Company’s interest rate swaps are all with one counterparty and are centrally cleared through a registered commodities exchange. Refer to the Consolidated Schedule of Investments for additional disclosure regarding these interest rate swaps.

The following table presents the amounts paid and received on the Company’s interest rate swap transactions, excluding upfront fees, for the three and nine months ended September 30, 2024. The Company had no interest rate swaps for the three and nine months ended September 30, 2023.


				For the three months ended September 30, 2024								For the nine months ended September 30, 2024
	Maturity Date	Notional Amount		Paid			Received		Net			Paid			Received		Net
Interest rate swap	3/11/2029	$	600,000	$	(12,038	)	$	9,750	$	(2,288	)	$	(25,925	)	$	21,017	$	(4,908	)
Interest rate swap	3/11/2029		150,000		(2,900	)		2,438		(462	)		(3,151	)		2,654		(497	)
Interest rate swap	1/15/2030		600,000		(1,133	)		862		(271	)		(1,133	)		862		(271	)
Total		$	1,350,000	$	(16,071	)	$	13,050	$	(3,021	)	$	(30,209	)	$	24,533	$	(5,676	)

For the three and nine months ended September 30, 2024, the Company recognized $21.6 million and $19.3 million, respectively, in unrealized gains on interest rate swaps designated as hedging instruments in the Consolidated Statements of Operations. For the three and nine months ended September 30, 2024, this amount was offset by a $24.8 million and $22.5 million, respectively, increase in the carrying value of the 2029 Notes. For the three and nine months ended September 30, 2024, this amount was offset by a $(3.2) million and $(3.2) million, respectively, decrease in the carrying value of the 2030 Notes.

As of September 30, 2024, the swap transaction had a fair value of $19.3 million which is netted against cash collateral on the Company’s Consolidated Balance Sheet.

The Company is required under the terms of its derivatives agreements to pledge assets as collateral to secure its obligations underlying the derivatives. The amount of collateral required varies over time based on the mark-to-market value, notional amount and remaining term of the derivatives, and may exceed the amount owed by the Company on a mark-to-market basis. Any failure by the Company to fulfill any collateral requirement (e.g., a so-called “margin call”) may result in a default. In the event of a default by a counterparty, the Company would be an unsecured creditor to the extent of any such overcollateralization.

As of September 30, 2024, $41.9 million of cash is pledged as collateral under the Company’s derivative agreements and is included in restricted cash as a component of cash and cash equivalents on the Company’s Consolidated Balance Sheet.

The Company may enter into other derivative instruments and incur other exposures with the same or other counterparties in the future.