Quarterly report [Sections 13 or 15(d)]

Debt (Tables)

v3.26.1
Debt (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Debt Information
As of June 30, 2026 and December 31, 2025, the Company had the following available and outstanding debt:
(in thousands) June 30, 2026 December 31, 2025
  Total Available Principal
Outstanding
Carrying Value(1)
Total Available Principal
Outstanding
Carrying Value(1)
SBA Debentures(2)(4)
$ 350,000  $ 350,000  $ 341,593  $ 350,000  $ 350,000  $ 341,012 
March 2026 A Notes —  —  —  50,000  50,000  49,984 
March 2026 B Notes —  —  —  50,000  50,000  49,983 
September 2026 Notes 325,000  325,000  324,793  325,000  325,000  324,302 
January 2027 Notes 350,000  350,000  349,261  350,000  350,000  348,596 
2028 Convertible Notes 287,500  287,500  281,741  287,500  287,500  280,412 
February 2029 Notes 300,000  300,000  294,768  —  —  — 
June 2030 Notes 350,000  350,000  343,514  350,000  350,000  342,694 
2031 Asset-Backed Notes 50,794  50,794  50,794  64,636  64,636  64,530 
2033 Notes 40,000  40,000  39,205  40,000  40,000  39,151 
MUFG Bank Facility(2)
440,000  88,000  88,000  440,000  168,000  168,000 
SMBC Facility(2)(3)(5)
475,000  221,689  221,554  475,000  277,934  277,780 
Total $ 2,968,294  $ 2,362,983  $ 2,335,223  $ 2,782,136  $ 2,313,070  $ 2,286,444 
(1)Except for the SMBC Facility and MUFG Bank Facility, all carrying values represent the principal amount outstanding less the remaining unamortized debt issuance costs and unaccreted premium or discount, if any, associated with the debt as of the balance sheet date.
(2)Availability subject to the Company meeting the borrowing base and/or capital commitment requirements.
(3)“Total Available” includes $175.0 million of available commitment through the letter of credit facility as of June 30, 2026 and December 31, 2025.
(4)As of June 30, 2026 and December 31, 2025, the total available debt under the SBA Debentures was $350.0 million, of which $175.0 million was available to HC IV and $175.0 million was available to SBIC V. HC IV and SBIC V have each issued the entire $175.0 million in SBIC Debentures.
(5)In November 2024, the Company amended its SMBC Facility and converted a portion of the existing revolver facility into a term loan facility in connection therewith. As of June 30, 2026, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.9 million respectively. As of December 31, 2025, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million, respectively.
The overall weighted average interest cost, cost of debt and debt outstanding for the Company for the three and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2026 2025 2026 2025
Weighted average interest cost
 4.5  % 4.4  % 4.5  % 4.3  %
Weighted average cost of debt(1)
5.2  % 5.0  % 5.1  % 4.9  %
Weighted average debt outstanding
 $ 2,409,041  $ 2,045,905  $ 2,414,679  $ 1,931,719 
(1)Cost of debt includes interest and fees.
The Company held the following SBA debentures outstanding principal balances as of June 30, 2026 and December 31, 2025:
(in thousands)
Issuance/Pooling Date		 Maturity Date
Interest Rate(1)
June 30, 2026 December 31, 2025
March 26, 2021 September 1, 2031 1.58% $ 37,500  $ 37,500 
June 25, 2021 September 1, 2031 1.58% 16,200  16,200 
July 28, 2021 September 1, 2031 1.58% 5,400  5,400 
August 20, 2021 September 1, 2031 1.58% 5,400  5,400 
October 21, 2021 March 1, 2032 3.21% 14,000  14,000 
November 1, 2021 March 1, 2032 3.21% 21,000  21,000 
November 15, 2021 March 1, 2032 3.21% 5,200  5,200 
November 30, 2021 March 1, 2032 3.21% 20,800  20,800 
December 20, 2021 March 1, 2032 3.21% 10,000  10,000 
December 23, 2021 March 1, 2032 3.21% 10,000  10,000 
December 28, 2021 March 1, 2032 3.21% 5,000  5,000 
January 14, 2022 March 1, 2032 3.21% 4,500  4,500 
January 21, 2022 March 1, 2032 3.21% 20,000  20,000 
November 8, 2024 March 1, 2035 5.09% 30,000  30,000 
December 6, 2024 March 1, 2035 5.09% 33,600  33,600 
December 12, 2024 March 1, 2035 5.09% 8,400  8,400 
December 20, 2024 March 1, 2035 5.09% 32,000  32,000 
February 5, 2025 March 1, 2035 5.09% 6,000  6,000 
March 28, 2025 September 1, 2035 4.66% 10,000  10,000 
April 25, 2025 September 1, 2035 4.66% 15,000  15,000 
May 9, 2025 September 1, 2035 4.66% 5,000  5,000 
June 5, 2025 September 1, 2035 4.66% 17,000  17,000 
June 12, 2025 September 1, 2035 4.66% 3,000  3,000 
June 25, 2025 September 1, 2035 4.66% 15,000  15,000 
Total SBA Debentures     $ 350,000  $ 350,000 
(1)     Interest rates are determined initially at issuance and reset to a fixed rate at the debentures pooling date. The rates are inclusive of annual SBA charges.
Schedule of Debt Issuance Costs, Net of Accumulated Amortization
Debt issuance costs, net of accumulated amortization, were as follows as of June 30, 2026 and December 31, 2025:
(in thousands) June 30, 2026 December 31, 2025
SBA Debentures $ 8,407  $ 8,988 
March 2026 A Notes —  16 
March 2026 B Notes —  17 
September 2026 Notes 207  698 
January 2027 Notes 739  1,404 
2028 Convertible Notes 5,759  7,088 
February 2029 Notes 5,232  — 
June 2030 Notes 6,486  7,306 
2031 Asset-Backed Notes —  106 
2033 Notes 795  849 
MUFG Bank Facility(1)
3,042  3,537 
SMBC Facility(1)(2)
1,809  2,214 
Total $ 32,476  $ 32,223 
(1)The MUFG Bank Facility and SMBC Facility are line-of-credit arrangements, the debt issuance costs associated with these instruments are included within Other assets on the Consolidated Statements of Assets and Liabilities in accordance with ASC Subtopic 835-30.
(2)As part of the November 2024 amendment of the SMBC Facility, the existing revolver facility was split into a revolver facility and a term loan facility. As of June 30, 2026, the debt issuance costs, net of accumulated amortization of the revolver facility is $1.7 million and the term loan is $0.1 million. As of December 31, 2025, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.0 million and the term loan is $0.2 million.
Schedule of Components of Interest Expense, Related Fees and Cash Paid for Interest Expense for Debt
For the three and six months ended June 30, 2026, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees) Unused facility and other fees (loan fees) Total interest expense and fees Cash paid for interest expense
Interest expense(1)
Amortization of debt issuance cost (loan fees) Unused facility and other fees (loan fees) Total interest expense and fees Cash paid for interest expense
SBA Debentures $ 3,289  $ 292  $ —  $ 3,581  $ —  $ 6,542  $ 581  $ —  $ 7,123  $ 6,343 
March 2026 A Notes —  —  —  —  —  393  16  —  409  1,125 
March 2026 B Notes —  —  —  —  —  398  17  —  415  1,138 
September 2026 Notes 2,174  203  —  2,377  —  4,349  406  —  4,755  4,266 
January 2027 Notes 3,078  207  —  3,285  —  6,157  414  —  6,571  5,906 
2028 Convertible Notes 3,725  354  —  4,079  —  7,450  708  —  8,158  6,828 
February 2029 Notes 4,195  319  —  4,514  —  6,479  493  —  6,972  — 
June 2030 Notes 5,441  219  —  5,660  10,500  10,882  438  —  11,320  10,500 
2031 Asset-Backed Notes(2)
780  29  —  809  785  1,598  71  —  1,669  1,584 
2033 Notes 625  27  —  652  625  1,250  54  —  1,304  1,250 
MUFG Bank Facility 1,606  259  663  2,528  2,148  4,269  518  1,118  5,905  4,464 
SMBC Facility 3,217  203  231  3,651  3,614  6,509  406  443  7,358  6,664 
Total $ 28,130  $ 2,112  $ 894  $ 31,136  $ 17,672  $ 56,276  $ 4,122  $ 1,561  $ 61,959  $ 50,068 
(1)Interest expense includes amortization of OID for the three months ended June 30, 2026, of $42 thousand, $126 thousand, $311 thousand, $182 thousand, $191 thousand, and $14 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, February 2029 Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the six months ended June 30, 2026, of $83 thousand, $251 thousand, $621 thousand, $281 thousand, $383 thousand, and $33 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, February 2029 Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three and six months ended June 30, 2026, the Company has recognized $2 thousand and $2 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes.
For the three and six months ended June 30, 2025, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands) Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
Description
Interest expense(1)
Amortization of debt issuance cost (loan fees) Unused facility and other fees (loan fees) Total interest expense and fees Cash paid for interest expense
Interest expense(1)
Amortization of debt issuance cost (loan fees) Unused facility and other fees (loan fees) Total interest expense and fees Cash paid for interest expense
SBA Debentures $ 2,926  $ 263  $ —  $ 3,189  $ —  $ 5,425  $ 490  $ —  $ 5,915  $ 3,971 
February 2025 Notes —  —  —  —  —  202  19  —  221  1,070 
June 2025 Notes 520  41  —  561  1,508  1,274  81  —  1,355  1,508 
June 2025 3-Year Notes 683  35  —  718  1,500  1,433  74  —  1,507  1,500 
March 2026 A Notes 563  24  —  587  —  1,125  48  —  1,173  1,125 
March 2026 B Notes 569  26  —  595  —  1,137  52  —  1,189  1,138 
September 2026 Notes 2,174  204  —  2,378  —  4,349  407  —  4,756  4,266 
January 2027 Notes 3,078  206  —  3,284  —  6,157  413  —  6,570  5,906 
2028 Convertible Notes 3,725  351  —  4,076  —  4,552  428  —  4,980  — 
June 2030 Notes 907  37  —  944  —  907  37  —  944  — 
2031 Asset-Backed Notes(2)
1,471  80  —  1,551  1,441  2,963  160  —  3,123  2,898 
2033 Notes 625  27  —  652  625  1,250  54  —  1,304  1,250 
MUFG Bank Facility 1,975  382  639  2,996  2,330  4,545  824  1,199  6,568  4,509 
SMBC Facility 3,714  203  229  4,146  4,024  7,309  411  448  8,168  7,867 
Total $ 22,930  $ 1,879  $ 868  $ 25,677  $ 11,428  $ 42,628  $ 3,498  $ 1,647  $ 47,773  $ 37,008 
(1)Interest expense includes amortization of OID for the three months ended June 30, 2025, of $42 thousand, $126 thousand, $311 thousand, $32 thousand, and $37 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the six months ended June 30, 2025, of $83 thousand, $251 thousand, $379 thousand, $32 thousand, and $75 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively.
(2)During the three and six months ended June 30, 2025, the Company has recognized $21 thousand and $36 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes.
Schedule of SBIC Investments
The following table shows the fair value of the Company’s portfolio of investments by asset class as of June 30, 2026 and December 31, 2025:
(in thousands) June 30, 2026 December 31, 2025
Investments at
Fair Value		 Percentage of
Total Portfolio		 Investments at
Fair Value		 Percentage of
Total Portfolio
Senior Secured Debt $ 4,299,681  93.8 % $ 4,209,798  94.2 %
Unsecured Debt 76,543  1.7 % 69,614  1.6 %
Preferred Stock 55,378  1.2 % 52,735  1.2 %
Common Stock 93,924  2.0 % 86,275  1.9 %
Warrants 51,295  1.1 % 41,162  0.9 %
Investment Funds & Vehicles 7,049  0.2 % 7,063  0.2 %
Total $ 4,583,870  100.0 % $ 4,466,647  100.0 %
A summary of the Company’s investment portfolio, at value, by geographic location as of June 30, 2026 and December 31, 2025 is shown as follows:
(in thousands) June 30, 2026 December 31, 2025
Investments at
Fair Value		 Percentage of
Total Portfolio		 Investments at
Fair Value		 Percentage of
Total Portfolio
United States $ 4,104,784  89.5 % $ 4,035,927  90.4 %
United Kingdom 137,001  3.0 % 118,031  2.7 %
Netherlands 115,762  2.5 % 117,344  2.6 %
Israel 67,569  1.5 % 67,280  1.5 %
Germany 59,775  1.3 % 50,386  1.1 %
Switzerland 48,731  1.1 % 35,504  0.8 %
Sweden 21,054  0.5 % 18,244  0.4 %
Canada 17,978  0.4 % 16,841  0.4 %
Ireland 10,764  0.2 % 4,729  0.1 %
Singapore —  0.0 % 1,827  0.0 %
Other(1)
452  0.0 % 534  0.0 %
Total $ 4,583,870  100.0 % $ 4,466,647  100.0  %
(1)The Company’s investment portfolio based in Denmark has been consolidated with “Other”. Prior year amounts have been reclassified to conform to the current presentation.
The following table shows the fair value of the Company’s portfolio by industry sector as of June 30, 2026 and December 31, 2025:
(in thousands) June 30, 2026 December 31, 2025
Investments at
Fair Value		 Percentage of
Total Portfolio 		Investments at
Fair Value		 Percentage of
Total Portfolio
Application Software $ 1,125,910  24.6 % $ 1,087,954  24.3 %
Drug Discovery & Development 1,027,017  22.4 % 1,039,712  23.3 %
Healthcare Services, Other 879,316  19.2 % 838,508  18.8 %
Consumer & Business Services 393,498  8.6 % 449,631  10.1 %
System Software 376,427  8.2 % 472,144  10.6 %
Defense Technologies 253,604  5.5 % 140,458  3.1 %
Diversified Financial Services 111,279  2.4 % 105,896  2.4 %
Medical Devices & Equipment 98,666  2.1 % 77,257  1.7 %
Electronics & Computer Hardware 66,766  1.5 % 66,992  1.5 %
Space Technologies 54,568  1.2 % 47,816  1.1 %
Consumer & Business Products 42,331  0.9 % 8,810  0.2 %
Sustainable and Renewable Technology 41,254  0.9 % 35,759  0.8 %
Communications & Networking 34,677  0.8 % 26,263  0.6 %
Biotechnology Tools 30,009  0.7 % 23,164  0.5 %
Information Services 27,421  0.6 % 25,889  0.6 %
Manufacturing Technology 20,866  0.4 % 20,190  0.4 %
Semiconductors 198  0.0 % 158  0.0 %
Media/Content/Info 50  0.0 % 32  0.0 %
Drug Delivery 13  0.0 % 14  0.0 %
Total $ 4,583,870  100.0 % $ 4,466,647  100.0 %
The following table summarizes information related to our SBICs as of June 30, 2026 and December 31, 2025.
June 30, 2026 December 31, 2025
Description HC IV SBIC V HC IV SBIC V
Number of investments held 39 36 39 28 
Fair value of investments (in millions) $ 400.7 $ 288.0 $ 404.8 $ 277.6 
Percentage of fair value of investments based on the Company's total investment portfolio 8.7  % 6.3  % 9.1  % 6.2  %
Tangible assets (in millions) $ 406.5 $ 293.4 $ 421.2 $ 283.1 
Percentage of tangible assets based on the Company's total assets 8.7  % 6.3  % 9.2  % 6.2  %