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NEW YORK – Carlyle Secured Lending, Inc. (NASDAQ: CGBD), a business development company, has announced the completion of its merger with Carlyle Secured Lending III (CSL III), with CGBD emerging as the surviving entity. The merger, which was finalized based on financial data from March 25, 2025, results in a combined company with over $2.8 billion in assets. The merger strengthens CGBD’s position within its parent company, The Carlyle Group (NASDAQ: CG), which InvestingPro data shows has a market capitalization of $16.5 billion and maintains a FAIR financial health score of 2.32 out of 3.
In the merger process, CSL III shareholders received 18,935,108 shares of CGBD common stock for each CSL III common share, alongside cash compensation for fractional shares. Carlyle Investment Management L.L.C. (CIM), a Carlyle subsidiary, converted its CGBD convertible preferred stock into common stock at the current net asset value (NAV), preventing dilution from a potential conversion at the previous price of $8.87. CIM converted all preferred shares into 3,004,808 common shares and agreed to a tiered lock-up arrangement, signifying Carlyle’s support for the combined company. According to InvestingPro analysis, The Carlyle Group’s strong financial position is reflected in its impressive 95.78% revenue growth and healthy current ratio of 1.75.
The transaction incurred $5.0 million in costs, which Carlyle absorbed to lessen the financial impact of the merger on CGBD. CEO Justin Plouffe commented on the merger’s completion, expressing gratitude to shareholders for supporting the strategic initiative and anticipating the execution of CGBD’s strategy with increased scale and integration.
Legal counsel for the transaction was provided by Sullivan & Cromwell LLP for both CGBD and CSL III. Raymond James & Associates, Inc. and Sidley Austin LLP advised the special committee of CGBD’s independent directors, while Keefe, Bruyette & Woods and Sullivan & Worcester LLP advised the special committee of CSL III’s independent trustees.
Carlyle Secured Lending specializes in senior secured lending to mid-market U.S. companies and is managed by Carlyle Global Credit Investment Management L.L.C., part of the global investment firm Carlyle (NASDAQ: CG) which manages $441 billion in assets. InvestingPro analysis indicates that Carlyle Group is currently undervalued, trading at a P/E ratio of 16.14 with a strong Piotroski Score of 7, suggesting solid financial strength. For deeper insights into Carlyle’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This merger news contains forward-looking statements, and actual results could differ materially due to various risks and uncertainties. The information in this article is based on a press release statement.
In other recent news, Carlyle Group LP reported its after-tax Distributable Earnings of $0.92 per share, slightly below analyst estimates from both Citi and Evercore ISI. Carlyle’s Fee-Related Earnings also fell short of expectations, although management fees met projections, and transaction fees exceeded forecasts. The company raised $14.2 billion in fundraising, surpassing its target for 2024, but faced challenges with a decline in Fee-earning Assets Under Management. Citi maintained a Neutral rating with a $55 price target, while Evercore ISI held an ’In Line’ rating with a $51 target. Wolfe Research upgraded Carlyle stock from Peerperform to Outperform, setting a new price target of $60, citing favorable M&A conditions and growth in fee-related earnings. The upgrade reflects Wolfe Research’s view that Carlyle is undervalued compared to its peers. In other developments, Centerra Gold Inc. announced the appointment of David Hendriks as its new Chief Operating Officer. Hendriks brings over 30 years of mining industry experience, expected to enhance Centerra’s operational success and sustainable growth.
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