EX-99.1 2 tslx-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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k

Second Quarter 2024 Earnings Results

Sixth Street Specialty Lending, Inc. Reports Second Quarter Results; Declares a Third Quarter Base Dividend Per Share of $0.46, and a Second Quarter Supplemental Dividend Per Share of $0.06.

 

NEW YORK — July 31, 2024 — Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today reported net investment income of $0.59 per share and net income of $0.51 per share for the second quarter ended June 30, 2024. These results correspond to an annualized return on equity (ROE) on net investment income and net income of 13.9% and 11.9%, respectively.

 

Both net investment income per share and net income per share include $0.01 per share of unwind of previously accrued capital gains incentive fee expenses that were accrued, but not paid or payable, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive fees paid inception-to-date. Excluding the impact of the partial reversal or unwind of previously accrued capital gains incentive fee expenses, the Company’s adjusted net investment income and adjusted net income for the quarter ended June 30, 2024, were $53.8 million, or $0.58 per share, and $46.1 million, or $0.50 per share, respectively. These results correspond to an annualized return on equity (ROE) on adjusted net investment income and adjusted net income of 13.5% and 11.6%, respectively. The Company’s strong net investment income in the second quarter reflects continued strength of the core earnings power of its portfolio driven by higher interest rates.

Reported net asset value (NAV) per share was $17.19 at June 30, 2024 as compared to NAV per share of $17.17 or an adjusted NAV per share of $17.11 at March 31, 2024 (which accounts for the impact of the $0.06 per share first quarter 2024 supplemental dividend). The primary driver of this quarter’s NAV per share growth was the continued overearning of the Company’s base quarterly dividend.

The Company announced that its Board of Directors has declared a third quarter 2024 base dividend of $0.46 per share to shareholders of record as of September 16, 2024, payable on September 30, 2024, and a second quarter supplemental dividend of $0.06 per share to shareholders of record as of August 30, 2024, payable on September 20, 2024. Adjusted for the impact of the supplemental dividend related to this quarter’s earnings, the Company’s Q2 adjusted NAV per share was $17.13.

On April 1, 2024, the Company issued 600,000 shares of common stock pursuant to the overallotment option granted to underwriters related to the Company’s previously reported common stock issuance on March 5, 2024. Net of underwriting fees and offering costs, total cash proceeds to the Company, inclusive of the overallotment shares issued, were approximately $93.3 million.

On April 24, 2024, the Company completed an amendment to its Revolving Credit Facility, which, among other changes, (a) increased the aggregate commitments under the facility to $1.700 billion and (b) extended the stated maturity date to April 24, 2029 for $1.505 billion of commitments.

 

Net Investment Income Per Share

Q2 2024:

$0.59

Q2 2024 (adjusted):

$0.58

 

 

Net Income Per Share

Q2 2024:

$0.51

Q2 2024 (adjusted):

$0.50

 

 

Return on Equity

Q2 2024 (NII):

13.9%

Q2 2024 (NI):

11.9%

Q2 2024 (Adj. NII):

13.5%

Q2 2024 (Adj. NI):

11.6%

 

 

NAV

Q2 2024 ($MM):

$1,599.0

Q2 2024 (per share):

$17.19

Q2 2024 (per share, adj):

$17.13

 

 

Dividends Declared (per share)

Q2 2024 (Base):

$0.46

LTM Q2'24 (Base):

$1.84

LTM Q2'24 (Supplemental):

$0.27

LTM Q2'24 (Total):

$2.11

 

 

 

 

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Portfolio and Investment Activity

 

 

 

For the quarter ended June 30, 2024, new investment commitments totaled $231.0 million. This compares to $263.6 million for the quarter ended March 31, 2024.

For the quarter ended June 30, 2024, the principal amount of new investments funded was $163.6 million across eight new portfolio companies and five upsizes to existing portfolio companies. For this period, the Company had $290.3 million aggregate principal amount in exits and repayments. For the quarter ended March 31, 2024, the principal amount of new investments funded was $162.8 million across nine new portfolio companies and five upsizes to existing portfolio companies. For that period, the Company had $108.6 million aggregate principal amount in exits and repayments.

As of June 30, 2024 and March 31, 2024, the Company had investments in 1051 and 1002 portfolio companies, respectively, with an aggregate fair value of $3,317.1 million and $3,380.0 million, respectively. As of June 30, 2024, the average investment size in each portfolio company was $31.51 million based on fair value.

As of June 30, 2024, the Company’s portfolio based on fair value consisted of 92.8% first-lien debt investments, 0.8% second-lien debt investments, 0.2% structured credit investments, 1.3% mezzanine debt investments, and 4.9% equity and other investments. As of March 31, 2024, the Company’s portfolio based on fair value consisted of 92.3% first-lien debt investments, 0.8% second-lien debt investments, 0.9% structured credit investments, 1.2% mezzanine debt investments, and 4.8% equity and other investments.

As of June 30, 2024, 99.6% of debt investments3 based on fair value in the portfolio bore interest at floating rates with 100.0% of these subject to reference rate floors. The Company’s credit facilities also bear interest at floating rates. In connection with the Company’s Unsecured Notes, which bear interest at fixed rates, the Company has entered into fixed-to-floating interest rate swaps in order to align the nature of the interest rates of its liabilities with its investment portfolio.

As of June 30, 2024 and March 31, 2024, the weighted average total yield of debt and income-producing securities at fair value (which includes interest income and amortization of fees and discounts) was 13.8%, and the weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 13.9% and 14.0% for the quarter ended June 30, 2024 and March 31, 2024, respectively.

As of June 30, 2024 and March 31, 2024, 1.1% of the portfolio at fair value was on non-accrual status. There were no new investments added to non-accrual status during the quarter.

 

Q2 2024 Origination Activity

 

Commitments:

$231.0MM

 

Fundings:

$163.6MM

 

Net Payoffs:

$126.7MM

 

 

 

 

Average Investment Size1

 

$31.5MM

 

(1.0% of the portfolio at fair value)

 

 

 

 

 

 

 

First Lien Debt Investments (% FV)

 

92.8%

 

 

 

 

 

 

Floating Rate Debt Investments3

 

(% FV)

 

99.6%

 

 

 

 

Weighted Average Yield of Debt and Incoming-Producing Securities

 

Yield at Fair Value:

13.8%

 

Yield at Amortized Cost:

13.9%

 

 

 

 
1.
As of June 30, 2024, excludes 4 structured credit investments with a total fair value of $6.1 million.
2.
As of March 31, 2024, excludes 24 structured credit investments with a total fair value of $30.6 million.
3.
Calculation includes income earning debt investments only.

 

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Results of Operations for the Three Months Ended June 30, 2024

 

Total Investment Income

 

 

 

 

Total Investment Income

For the three months ended June 30, 2024 and 2023, investment income was $121.8 million and $107.6 million, respectively. The increase in investment income was largely the result of net funding activity and an increase in reference rates.

 

 

 

 

 

$121.8MM

 

 

 

Net Expenses

 

 

 

 

Net Expenses

Net expenses totaled $65.4 million and $57.9 million for the three months ended June 30, 2024 and 2023, respectively. The increase in net expenses was primarily due to the upward movement in reference rates which increased the Company’s weighted average interest rate on average debt outstanding.

 

 

 

 

 

$65.4MM

 

 

 

Debt and Capital Resources

 

 

 

 

 

As of June 30, 2024, the Company had $34.6 million in cash and cash equivalents (including $29.5 million of restricted cash), total principal value of debt outstanding of $1,785.0 million, and $1,209.5 million of undrawn capacity on its revolving credit facility, subject to borrowing base, outstanding letters of credit, asset coverage requirements and other limitations. The Company’s weighted average interest rate on debt outstanding was 7.7% and 7.6% for the three-month periods ended June 30, 2024 and March 31, 2024, respectively. At June 30, 2024, the Company’s debt to equity ratio was 1.12x, compared to 1.19x at March 31, 2024. Average debt to equity was 1.17x for the three-month period ended June 30, 2024, compared to 1.24x for the three-month period ended March 31, 2024.

 

Total Principal Debt Outstanding

 

$1,785.0MM

 

 

 

 

Debt-to-Equity Ratio

 

Q2 2024 Quarter End:

1.12x

 

Q2 2024 Average1:

1.17x
1.
Daily average debt outstanding during the quarter divided by the average net assets during the quarter. Average net assets is calculated by starting with the prior quarter end net asset value and adjusting for capital activity during the quarter (adding common stock offerings / DRIP contributions).

 

 

 

 

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LIQUIDITY AND FUNDING PROFILE

 

Liquidity

The following tables summarize the Company’s liquidity at June 30, 2024 and changes to unfunded commitments since March 31, 2024.

 

$ Millions

Revolving Credit Facility

 

Unfunded Commitment Activity

Revolver Capacity

$1,700

 

Unfunded Commitments (See Note 8 in 3/31/24 10-Q)

$364

Drawn on Revolver

($488)

 

Extinguished Unfunded Commitments

($21)

Unrestricted Cash Balance

$5

 

New Unfunded Commitments

$45

Issued Letters of Credit

($3)

 

Net Drawdown of Unfunded Commitments

($60)

Total Liquidity (Pre-Unfunded Commitments)

$1,215

 

Total Unfunded Commitments

$328

Available Unfunded Commitments1

($250)

 

Unavailable Unfunded Commitments1

($78)

Total Liquidity (Burdened for Unfunded Commitments)

$965

 

Available Unfunded Commitments1

$250

 

1.
Commitments may be subject to limitations on borrowings set forth in the agreements between the Company and the applicable portfolio company. As a result, portfolio companies may not be eligible to borrow the full commitment amount on such date.

Note: May not sum due to rounding.

 

Funding Profile

At June 30, 2024, the Company’s funding mix was comprised of approximately 73% unsecured and 27% secured debt. As illustrated below, the Company’s nearest debt maturity is in November 2024 at $348 million, and the weighted average remaining life of investments funded with debt was ~2.6 years, compared to a weighted average remaining maturity on debt of ~3.8 years2.

 

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1.
Includes $25 million of non-extending commitments with a maturity of February 4, 2026 and a revolving period ending February 4, 2025 and $170 million of non-extending commitments with a maturity of April 23, 2027 and a revolving period ending April 24, 2026.
2.
Weighted by gross commitment amount.

Note: Numbers may not sum due to rounding.

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Conference Call and Webcast

 

Conference Call Information:

A conference call to discuss the Company’s financial results will be held at 8:30 a.m. Eastern Time on August 1, 2024. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX’s website at https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations. The Events & Presentations page of the Investor Resources section of TSLX’s website also includes a slide presentation that complements the Earnings Conference Call. Please visit the website to test your connection before the webcast.

 

Research analysts who wish to participate in the conference call must first register at https://register.vevent.com/register/BI46292d14404d4f17a64ea95eac508eef. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call.

 

Replay Information:

 

A recorded version will be available under the same webcast link (https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations) following the conclusion of the conference call.

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Financial Highlights

 

(Amounts in millions, except per share amounts)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

June 30, 2023

 

Investments at Fair Value

 

$

 

3,317.1

 

 

$

 

3,283.1

 

 

$

 

3,089.0

 

Total Assets

 

$

 

3,387.0

 

 

$

 

3,343.8

 

 

$

 

3,141.2

 

Net Asset Value Per Share

 

$

 

17.19

 

 

$

 

17.04

 

 

$

 

16.74

 

Supplemental Dividend Per Share

 

$

 

0.06

 

 

$

 

0.08

 

 

$

 

0.06

 

Adjusted Net Asset Value Per Share (1)

 

$

 

17.13

 

 

$

 

16.96

 

 

$

 

16.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income

 

$

 

121.8

 

 

$

 

119.5

 

 

$

 

107.6

 

Net Investment Income

 

$

 

55.1

 

 

$

 

54.7

 

 

$

 

48.8

 

Net Income

 

$

 

47.4

 

 

$

 

51.2

 

 

$

 

53.1

 

Accrued Capital Gains Incentive Fee Expense

 

$

 

(1.3

)

 

$

 

(0.7

)

 

$

 

0.7

 

Adjusted Net Investment Income (2)

 

$

 

53.8

 

 

$

 

54.0

 

 

$

 

49.5

 

Adjusted Net Income (2)

 

$

 

46.1

 

 

$

 

50.5

 

 

$

 

53.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income Per Share

 

$

0.59

 

 

$

0.62

 

 

$

0.58

 

Net Income Per Share

 

$

0.51

 

 

$

0.58

 

 

$

0.63

 

Accrued Capital Gains Incentive Fee Expense Per Share

 

$

 

(0.01

)

 

$

 

(0.01

)

 

$

 

0.01

 

Adjusted Net Investment Income Per Share (2)

 

$

 

0.58

 

 

$

 

0.62

 

 

$

 

0.59

 

Adjusted Net Income Per Share (2)

 

$

 

0.50

 

 

$

 

0.58

 

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return on Equity (Net Investment Income) (3)

 

 

 

13.9

%

 

 

 

14.7

%

 

 

 

14.0

%

Annualized Return on Equity (Net Income) (3)

 

 

 

11.9

%

 

 

 

13.8

%

 

 

 

15.2

%

Annualized Return on Equity (Adjusted Net Investment Income) (2)(3)

 

 

 

13.5

%

 

 

 

14.5

%

 

 

 

14.2

%

Annualized Return on Equity (Adjusted Net Income) (2)(3)

 

 

 

11.6

%

 

 

 

13.6

%

 

 

 

15.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Yield of Debt and Income Producing Securities at Fair Value

 

 

 

13.8

%

 

 

 

14.1

%

 

 

 

14.0

%

Weighted Average Yield of Debt and Income Producing Securities at Amortized Cost

 

 

 

13.9

%

 

 

 

14.2

%

 

 

 

14.1

%

Percentage of Debt Investment Commitments at Floating Rates

 

 

 

99.6

%

 

 

 

99.7

%

 

 

 

99.2

%

 

1.
Adjusted net asset value per share gives effect to the supplemental dividend declared related to earnings or special dividend in the applicable period.
2.
Adjusted to exclude the capital gains incentive fee that was accrued, but not paid, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive fees paid inception to date.
3.
Return on equity is calculated using prior period’s ending net asset value per share.

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Financial Statements and Tables

 

Sixth Street Specialty Lending, Inc.
Consolidated Balance Sheets

(Amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

Non-controlled, non-affiliated investments (amortized cost of $3,221,394 and $3,172,853, respectively)

 

$

3,254,527

 

 

$

3,223,152

 

Controlled, affiliated investments (amortized cost of $83,169 and $78,159, respectively)

 

 

62,542

 

 

 

59,913

 

Total investments at fair value (amortized cost of $3,304,563 and $3,251,012, respectively)

 

 

3,317,069

 

 

 

3,283,065

 

Cash and cash equivalents (restricted cash of $29,527 and $23,979, respectively)

 

 

34,649

 

 

 

25,196

 

Interest receivable

 

 

30,738

 

 

 

27,969

 

Prepaid expenses and other assets

 

 

4,495

 

 

 

7,578

 

Total Assets

 

$

3,386,951

 

 

$

3,343,808

 

Liabilities

 

 

 

 

 

 

Debt (net of deferred financing costs of $27,262 and $21,930, respectively)

 

$

1,712,905

 

 

$

1,780,307

 

Management fees payable to affiliate

 

 

12,468

 

 

 

11,962

 

Incentive fees on net investment income payable to affiliate

 

 

11,414

 

 

 

11,451

 

Incentive fees on net capital gains accrued to affiliate

 

 

8,266

 

 

 

10,446

 

Other payables to affiliate

 

 

4,584

 

 

 

2,802

 

Other liabilities

 

 

38,279

 

 

 

30,465

 

Total Liabilities

 

 

1,787,916

 

 

 

1,847,433

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

Preferred stock, $0.01 par value; 100,000,000 shares authorized; no shares
   issued and outstanding

 

 

—

 

 

 

—

 

Common stock, $0.01 par value; 400,000,000 shares authorized, 93,681,455
   and 88,493,749 shares issued, respectively; and 93,017,205 and 87,829,499
   shares outstanding, respectively

 

 

937

 

 

 

885

 

Additional paid-in capital

 

 

1,510,345

 

 

 

1,405,173

 

Treasury stock at cost; 664,250 and 664,250 shares held, respectively

 

 

(10,459

)

 

 

(10,459

)

Distributable earnings

 

 

98,212

 

 

 

100,776

 

Total Net Assets

 

 

1,599,035

 

 

 

1,496,375

 

Total Liabilities and Net Assets

 

$

3,386,951

 

 

$

3,343,808

 

Net Asset Value Per Share

 

$

17.19

 

 

$

17.04

 

 

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Sixth Street Specialty Lending, Inc.

Consolidated Statements of Operations

(Amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

June 30, 2024

 

 

June 30, 2023

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

Investment income from non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments

 

$

102,707

 

 

$

96,221

 

 

$

205,114

 

 

$

184,655

 

Paid-in-kind interest income

 

 

9,435

 

 

 

4,644

 

 

 

17,543

 

 

 

7,647

 

Dividend income

 

 

1,815

 

 

 

797

 

 

 

2,596

 

 

 

1,405

 

Other income

 

 

5,533

 

 

 

4,075

 

 

 

9,787

 

 

 

6,832

 

Total investment income from non-controlled, non-affiliated investments

 

 

119,490

 

 

 

105,737

 

 

 

235,040

 

 

 

200,539

 

Investment income from controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments

 

 

2,320

 

 

 

1,867

 

 

 

4,551

 

 

 

3,570

 

Other income

 

 

5

 

 

 

1

 

 

 

8

 

 

 

2

 

Total investment income from controlled, affiliated investments

 

 

2,325

 

 

 

1,868

 

 

 

4,559

 

 

 

3,572

 

Total Investment Income

 

 

121,815

 

 

 

107,605

 

 

 

239,599

 

 

 

204,111

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

39,234

 

 

 

32,442

 

 

 

78,266

 

 

 

60,928

 

Management fees

 

 

12,765

 

 

 

11,410

 

 

 

25,361

 

 

 

22,143

 

Incentive fees on net investment income

 

 

11,414

 

 

 

10,507

 

 

 

22,342

 

 

 

19,988

 

Incentive fees on net capital gains

 

 

(1,335

)

 

 

749

 

 

 

(2,179

)

 

 

2,506

 

Professional fees

 

 

2,115

 

 

 

1,749

 

 

 

3,866

 

 

 

3,505

 

Directors’ fees

 

 

207

 

 

 

174

 

 

 

428

 

 

 

357

 

Other general and administrative

 

 

1,343

 

 

 

1,188

 

 

 

2,627

 

 

 

2,203

 

Total expenses

 

 

65,743

 

 

 

58,219

 

 

 

130,711

 

 

 

111,630

 

Management and incentive fees waived (Note 3)

 

 

(297

)

 

 

(300

)

 

 

(694

)

 

 

(556

)

Net Expenses

 

 

65,446

 

 

 

57,919

 

 

 

130,017

 

 

 

111,074

 

Net Investment Income Before Income Taxes

 

 

56,369

 

 

 

49,686

 

 

 

109,582

 

 

 

93,037

 

Income taxes, including excise taxes

 

 

1,226

 

 

 

902

 

 

 

2,076

 

 

 

1,316

 

Net Investment Income

 

 

55,143

 

 

 

48,784

 

 

 

107,506

 

 

 

91,721

 

Unrealized and Realized Gains (Losses)

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(7,852

)

 

 

7,662

 

 

 

(17,166

)

 

 

19,416

 

Controlled, affiliated investments

 

 

—

 

 

 

(2,783

)

 

 

(2,381

)

 

 

(8,987

)

Translation of other assets and liabilities in foreign currencies

 

 

(1,641

)

 

 

(2,000

)

 

 

3,085

 

 

 

(3,004

)

Interest rate swaps

 

 

—

 

 

 

(57

)

 

 

—

 

 

 

174

 

Total net change in unrealized gains (losses)

 

 

(9,493

)

 

 

2,822

 

 

 

(16,462

)

 

 

7,599

 

Realized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

1,630

 

 

 

1,623

 

 

 

3,863

 

 

 

6,436

 

Foreign currency transactions

 

 

121

 

 

 

(139

)

 

 

12

 

 

 

286

 

Total net realized gains (losses)

 

 

1,751

 

 

 

1,484

 

 

 

3,875

 

 

 

6,722

 

Total Net Unrealized and Realized Gains (Losses)

 

 

(7,742

)

 

 

4,306

 

 

 

(12,587

)

 

 

14,321

 

Increase (Decrease) in Net Assets Resulting from Operations

 

$

47,401

 

 

$

53,090

 

 

$

94,919

 

 

$

106,042

 

Earnings per common share—basic and diluted

 

$

0.51

 

 

$

0.63

 

 

$

1.04

 

 

$

1.28

 

Weighted average shares of common stock outstanding—basic and diluted

 

 

92,734,320

 

 

 

84,223,032

 

 

 

90,883,350

 

 

 

82,819,734

 

 

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img52863034_0.jpg 

 

The Company’s investment activity for the quarter ended June 30, 2024 and 2023 is presented below (information presented herein is at par value unless otherwise indicated).

 

 

Three Months Ended

 

($ in millions)

 

June 30, 2024

 

 

June 30, 2023

 

New investment commitments:

 

 

 

 

 

 

Gross originations (1)

 

$

1,858.8

 

 

$

1,522.9

 

Less: Syndications/sell downs (1)

 

 

1,627.8

 

 

 

1,262.5

 

Total new investment commitments

 

$

231.0

 

 

$

260.4

 

Principal amount of investments funded:

 

 

 

 

 

 

First-lien

 

$

163.6

 

 

$

209.3

 

Second-lien

 

 

—

 

 

 

30.0

 

Mezzanine

 

 

—

 

 

 

—

 

Equity and other

 

 

—

 

 

 

0.7

 

Structured Credit

 

 

—

 

 

 

—

 

Total

 

$

163.6

 

 

$

240.0

 

Principal amount of investments sold or repaid:

 

 

 

 

 

 

First-lien

 

$

265.2

 

 

$

112.3

 

Second-lien

 

 

—

 

 

 

—

 

Mezzanine

 

 

—

 

 

 

—

 

Equity and other

 

 

25.1

 

 

 

1.7

 

Structured Credit

 

 

—

 

 

 

—

 

Total

 

$

290.3

 

 

$

114.0

 

Number of new investment commitments in
   new portfolio companies

 

 

8

 

 

 

6

 

Average new investment commitment amount in
   new portfolio companies

 

$

21.2

 

 

$

41.3

 

Weighted average term for new investment
   commitments in new portfolio companies
   (in years)

 

 

6.1

 

 

 

6.7

 

Percentage of new debt investment commitments
   at floating rates

 

 

100.0

%

 

 

100.0

%

Weighted average interest rate of new
   investment commitments

 

 

11.6

%

 

 

12.6

%

Weighted average spread over reference rate of new
   floating rate investment commitments

 

 

6.6

%

 

 

7.3

%

Weighted average interest rate on investments
   fully sold or paid down

 

 

13.4

%

 

 

15.6

%

 

1.
Includes affiliates of Sixth Street.

 

9

 

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About Sixth Street Specialty Lending

Sixth Street Specialty Lending is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The Company has elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. The Company is externally managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of Sixth Street and a Securities and Exchange Commission (“SEC”) registered investment adviser. The Company leverages the deep investment, sector, and operating resources of Sixth Street, a global investment firm with over $78 billion in assets under management and committed capital. For more information, visit the Company’s website at https://sixthstreetspecialtylending.com.

About Sixth Street

Sixth Street is a global investment firm with over $78 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 600 team members including over 250 investment professionals around the world. For more information, visit https://sixthstreet.com or follow Sixth Street on LinkedIn.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements,” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which relate to future events or the Company’s future performance or financial condition. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as otherwise required by federal securities laws, the Company assumes no obligation to update any such forward-looking statements, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

Adjusted net investment income and adjusted net income are each non-GAAP financial measures, which represent net investment income and net income, respectively, in each case less the impact of accrued capital gains incentive fee expenses. The Company believes that adjusted net investment income and adjusted net income provide useful information to investors regarding the fundamental earnings power of the business, and these figures are used by the Company to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

 

 

Investors:

Cami VanHorn, 469-621-2033
Sixth Street Specialty Lending
IRTSLX@sixthstreet.com

 

Media:

Patrick Clifford, 617-793-2004
Sixth Street
PClifford@sixthstreet.com

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