Carlyle Secured Lending, Inc. announced the successful closing of its merger with Carlyle Secured Lending III (CSL III), with CGBD as the surviving company. This strategic consolidation significantly expands CGBD's footprint, resulting in a combined entity with more than $2.8 billion of assets based on March 25, 2025, financial data. The merger is expected to enhance CGBD's market position and operational capabilities.
In connection with the merger, CSL III shareholders received 18,935,108 shares of CGBD common stock, along with cash in lieu of fractional shares. A key aspect of the transaction involved Carlyle Investment Management L.L.C. (CIM) exchanging its CGBD convertible preferred stock for 3,004,808 common shares at the current Net Asset Value (NAV) of $16.64. This move eliminated the risk of dilution from the preferred shares, which had a December 31, 2024, conversion price of $8.87.
Carlyle further demonstrated its commitment by incurring $5.0 million in transaction costs on behalf of CGBD, mitigating the expense impact of the merger. Justin Plouffe, CEO of CGBD, stated that the company looks forward to executing its strategy with greater scale and seamless integration to deliver consistent income and returns for shareholders of the combined company. The integration of CSL III, which had a near 100% portfolio overlap, is expected to improve stock liquidity and reduce aggregate operational costs.
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