CGBD 10-Q Quarter ended Sept. 30, 2015

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

Class

Outstanding at November 6, 2015

Part I.

Financial Information

Item 1.

Financial Statements

Consolidated Statements of Assets and Liabilities as of September 30, 2015 (unaudited) and December 31, 2014

Consolidated Statements of Operations for the three month and nine month periods ended September 30, 2015 (unaudited) and September 30, 2014 (unaudited)

Consolidated Statements of Changes in Net Assets for the nine month periods ended September  30, 2015 (unaudited) and September 30, 2014 (unaudited)

Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2015 (unaudited) and September 30, 2014 (unaudited)

Consolidated Schedules of Investments as of September 30, 2015 (unaudited) and December 31, 2014

Notes to Consolidated Financial Statements (unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Part II.

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

Item 5.

Other Information

Item 6.

Exhibits

Signatures

ASSETS

Investments—non-controlled/non-affiliated, at fair value (amortized cost of $982,026 and $707,701, respectively)

Cash

Deferred financing costs

Interest receivable

Prepaid expenses and other assets

Total assets

LIABILITIES

Payable for investments purchased

Secured borrowings (Note 5)

2015-1 Notes payable (Note 6)

Interest and credit facility fees payable (Notes 5 and 6)

Base management and incentive fees payable (Note 4)

Due to Investment Adviser

Dividend payable (Note 8)

Administrative service fees payable (Note 4)

Other accrued expenses and liabilities

Total liabilities

Commitments and contingencies (Notes 7 and 11)

NET ASSETS

Common stock, $0.01 par value; 200,000,000 shares authorized; 27,895,411 shares and 17,932,697 shares, respectively, issued and outstanding

Paid-in capital in excess of par value

Subscribed but unissued shares

Subscriptions receivable

Offering costs

Accumulated net investment income (loss), net of cumulative dividends of $47,567 and $18,162, respectively

Accumulated net realized gain (loss)

Accumulated net unrealized appreciation (depreciation)

Total net assets

NET ASSETS PER SHARE

Investment income:

Interest income from non-controlled/non-affiliated investments

Total investment income

Expenses:

Base management fees (Note 4)

Incentive fees (Note 4)

Professional fees

Administrative service fees (Note 4)

Interest expense (Notes 5 and 6)

Credit facility fees (Note 5)

Directors’ fees and expenses

Transfer agency fees

Trustee fees

Other general and administrative

Total expenses

Waiver of base management fees (Note 4)

Net expenses

Net investment income (loss)

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:

Net realized gain (loss) on investments—non-controlled/non-affiliated

Net change in unrealized appreciation (depreciation) on investments—non-controlled/non-affiliated

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments

Net increase (decrease) in net assets resulting from operations

Basic and diluted earnings per common share (Note 8)

Weighted-average shares of common stock outstanding—Basic and Diluted (Note 8)

Dividends declared per common share (Note 8)

Increase (decrease) in net assets resulting from operations:

Net investment income (loss)

Net realized gain (loss) on investments—non-controlled/non-affiliated

Net change in unrealized appreciation (depreciation) on investments—non-controlled/non-affiliated

Net increase (decrease) in net assets resulting from operations

Capital transactions:

Common stock issued

Reinvestment of dividends

Dividends declared (Note 11)

Net increase (decrease) in net assets resulting from capital share transactions

Net increase (decrease) in net assets

Net assets at beginning of period

Net assets at end of period

Cash flows from operating activities:

Net increase (decrease) in net assets resulting from operations

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

Amortization of deferred financing costs

Net accretion of discount on securities

Net realized (gain) loss on investments—non-controlled/non-affiliated

Net change in unrealized (appreciation) depreciation on investments—non-controlled/non-affiliated

Cost of investments purchased and change in payable for investments purchased

Proceeds from sales and repayments of investments

Changes in operating assets:

Interest receivable

Prepaid expenses and other assets

Changes in operating liabilities:

Due to Investment Adviser

Interest and credit facility fees payable

Base management and incentive fees payable

Administrative service fees payable

Other accrued expenses and liabilities

Net cash provided by (used in) operating activities

Cash flows from financing activities:

Proceeds from issuance of common stock

Borrowings on Revolving Credit Facility and Facility

Repayments of Revolving Credit Facility and Facility

Proceeds from issuance of 2015-1 Notes

Debt issuance costs paid

Dividends paid in cash

Net cash provided by (used in) financing activities

Net increase (decrease) in cash

Cash, beginning of period

Cash, end of period

Supplemental disclosures:

Offering expenses and financing costs due

Interest paid during the period

Dividends declared during the period

Reinvestment of dividends

Investments—non-controlled/non-affiliated ⁽¹⁾

First Lien Debt (73.82%)

Access CIG, LLC ^{(2) (3) (4) (13)}

AF Borrower LLC (Accuvant) ^{(2) (3) (5) (13)}

Alpha Packaging Holdings, Inc. ^{(2) (3) (4) (13)}

Anaren, Inc. ^{(2) (3) (4) (13)}

APX Group, Inc. ^{(5) (8)}

Audax AAMP Holdings, Inc. ^{(2) (3) (4) (13)}

Blue Bird Body Company ^{(2) (3) (4) (8) (13)}

Brooks Equipment Company, LLC ^{(2) (3) (4) (13)}

Capstone Logistics Acquisition, Inc. ^{(2) (3) (4) (13)}

Captive Resources Midco, LLC ^{(2) (3) (4) (5) (9) (13)}

Castle Management Borrower LLC (Highgate Hotels
L.P.) ^{(2) (3) (4) (13)}

Central Security Group, Inc. ^{(2) (3) (4) (13)}

CRCI Holdings Inc. (CLEAResult Consulting,
Inc.) ^{(2) (3) (4) (13)}

Dent Wizard International Corporation ^{(2) (3) (4) (13)}

Emerging Markets Communications LLC ^{(2) (3) (5) (13)}

EP Minerals, LLC ^{(2) (3) (4) (13)}

FCX Holdings Corp. ^{(2) (3) (4) (13)}

Genex Holdings, Inc. ^{(2) (3) (13)}

Green Energy Partners/Stonewall LLC ^{(2) (3) (5) (10) (13)}

Indra Holdings Corp. (Totes Isotoner) ^{(2) (3) (5) (13)}

Jackson Hewitt Inc. ^{(2) (3) (4) (13)}

Language Line LLC ^{(2) (3) (4)}

Miller Heiman, Inc. ^{(2) (3) (4) (13)}

MSX International, Inc. ^{(2) (3) (4) (13)}

National Technical Systems, Inc. ^{(2) (3) (4) (5) (13) (14)}

NES Global Talent Finance US LLC (United Kingdom) ^{(2) (3) (4) (8) (13)}

Novetta, LLC ^{(2) (3) (4) (13)}

Paradigm Acquisition Corp. ^{(2) (3) (5) (13)}

Investments—non-controlled/non-affiliated ⁽¹⁾

First Lien Debt (73.82%) (continued)

Pelican Products, Inc. ^{(2) (3) (4) (13)}

Plano Molding Company, LLC ^{(2) (3) (5) (13)}

Product Quest Manufacturing LLC ^{(2) (3) (4) (5) (12)}

Prowler Acquisition Corp. (Pipeline Supply and Service, LLC) ^{(2) (3) (4)}

PSC Industrial Holdings Corp ^{(2) (3) (4) (13)}

PSI Services LLC ^{(2) (3) (4) (12)}

SolAero Technologies Corp. ^{(2) (3) (4)}

SolAero Technologies Corp. ^{(2) (3) (13)}

Synarc-Biocore Holdings, LLC ^{(2) (3) (4) (13)}

Systems Maintenance Services Holding, Inc. ^{(2) (3) (13)}

TASC, Inc. ^{(2) (3) (4) (8) (13)}

Teaching Strategies, LLC ^{(2) (3) (4) (13)}

The Hilb Group, LLC ^{(2) (3) (5) (12) (13) (15)}

The Hygenic Corporation (Performance Health) ^{(2) (3) (4) (13)}

The SI Organization, Inc. ^{(2) (3) (4) (13)}

The Topps Company, Inc. ^{(2) (3) (4) (13)}

TruckPro, LLC ^{(2) (3) (4) (13)}

U.S. Farathane, LLC ^{(2) (3) (4) (13)}

Vetcor Professional Practices, LLC ^{(2) (3) (4) (5) (13) (16)}

Violin Finco S.A.R.L. (Alexander Mann Solutions) (United Kingdom) ^{(2) (3) (4) (8) (13)}

Vistage Worldwide Inc. ^{(2) (3) (4) (13)}

Vitera Healthcare Solutions, LLC ^{(2) (3) (4) (13)}

Zest Holdings, LLC ^{(2) (3) (4) (13)}

First Lien Debt Total

Investments—non-controlled/non-affiliated ⁽¹⁾

Second Lien Debt (20.42%)

AF Borrower LLC (Accuvant) ^{(2) (3) (5)}

Allied Security Holdings LLC ^{(2) (3) (5) (13)}

AmeriLife Group, LLC ^{(2) (3) (5)}

Ascensus, Inc. ^{(2) (3) (4)}

Berlin Packaging L.L.C. ^{(2) (3) (5) (13)}

Charter NEX US Holdings, Inc. ^{(2) (3) (5) (13)}

Confie Seguros Holding II Co. ^{(2) (3) (5)}

Creganna Finance (US) LLC (Ireland) ^{(2) (3) (5) (8)}

DiversiTech Corporation ^{(2) (3) (5) (13)}

Drew Marine Group Inc. ^{(2) (3) (4) (5)}

Genex Holdings, Inc. ^{(2) (3) (5)}

Genoa, a QoL Healthcare Company, LLC ^{(2) (3) (5) (13)}

Institutional Shareholder Services Inc. ^{(2) (3) (5) (13)}

Jazz Acquisition, Inc. (Wencor) ^{(2) (3) (5) (13)}

Landslide Holdings, Inc. (LANDesk Software) ^{(2) (3) (13)}

MRI Software, LLC ^{(2) (3) (5)}

Phillips-Medisize Corporation ^{(2) (3) (5) (13)}

Power Stop, LLC ^{(5) (17)}

Prime Security Services Borrower, LLC (Protection One Inc.) ^{(2) (3) (5)}

Prowler Acquisition Corp. (Pipeline Supply and Service, LLC) ^{(2) (3) (5)}

Systems Maintenance Services Holding, Inc. ^{(2) (3) (4)}

TASC, Inc. ^{(5) (8)}

Vitera Healthcare Solutions, LLC ^{(2) (3) (4)}

Watchfire Enterprises, Inc. ^{(2) (3) (5) (13)}

Second Lien Debt Total

Investments—non-controlled/non-affiliated ⁽¹⁾

Structured Finance Obligations (5.52%) ^{(5) (8) (11)}

1776 CLO I, Ltd., Subordinated Notes

AIMCO CLO, Series 2014-A, Class F, 5.47% ⁽²⁾

AIMCO CLO, Series 2014-A, Subordinated Notes

Ares XXVIII CLO Ltd., Subordinated Notes

Babson CLO Ltd. 2005-I, Subordinated Notes

CIFC Funding 2007-III, Ltd., Income Notes

Clydesdale CLO 2005, Ltd., Subordinated Notes

Flagship VII Limited, Subordinated Notes

ING IM CLO 2012-1 LLC, Preferred Shares

ING IM CLO 2012-1 LLC, Subordinated Notes

MSIM Peconic Bay, Ltd., Subordinated Notes

Nautique Funding Ltd., Income Notes

Steele Creek CLO 2014-I, LLC, Subordinated Notes

Venture VI CDO Limited, Preference Shares

Westwood CDO I, Ltd., Subordinated Notes

Structured Finance Obligations Total

Investments—non-controlled/non-affiliated ⁽¹⁾

Equity Investments (0.24%) ⁽⁵⁾

Power Stop, LLC

The Hilb Group, LLC

Equity Investments Total

Total Investments—non-controlled/non-affiliated

Unless otherwise indicated, issuers of debt and equity investments held by Carlyle GMS Finance, Inc. (“GMS Finance” or the “Company”) are domiciled in the United States and issuers of structured finance obligations are domiciled in the Cayman Islands. Under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”), the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. As of September 30, 2015, the Company does not “control” any of these portfolio

Type

First Lien Debt

Second Lien Debt

Structured Finance Obligations

Equity Investments

Total

Industry

Aerospace & Defense

Automotive

Banking, Finance, Insurance & Real Estate

Business Services

Capital Equipment

Chemicals, Plastics & Rubber

Construction & Building

Consumer Services

Containers, Packaging & Glass

Durable Consumer Goods

Energy: Electricity

Energy: Oil & Gas

Environmental Industries

Healthcare & Pharmaceuticals

High Tech Industries

Hotel, Gaming & Leisure