Carlyle Credit Solutions Restructures Capital, Increases Share Capacity

Carlyle Credit Solutions Inc., a non-traded perpetual-life business development company managed by The Carlyle Group, has overhauled its capital structure and expanded its share capacity, marking a strategic shift following recent regulatory approvals.

The restructuring began with Carlyle filing articles of amendment to its charter to increase its total authorized common stock from 200 million to 300 million shares. As part of this initial move, all existing common stock, par value $0.01, was renamed and redesignated as Class I common stock.

Immediately following the share increase, the BDC filed supplementary articles to further diversify its equity offerings. Carlyle reclassified 100 million of its newly authorized shares into two categories: Class S common stock: 50 million shares; and Class D common stock: 50 million shares.

This leaves the company with a tri-class structure consisting of Class I, Class S, and Class D shares.

The move comes on the heels of Carlyle receiving exemptive relief from the U.S. Securities and Exchange Commission. This regulatory green light allows the company to offer multiple classes of shares with varying sales loads and fee structures, targeting different investor segments with its offerings.

The company, formed in 2017 and having elected to be regulated as a BDC shortly thereafter, primarily invests in senior secured loans debt and focuses on U.S. middle-market companies, specifically those backed by private equity sponsors.

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