Sixth Street Specialty Lending : Creditor Information - Balance Sheet & Capital (f1a60e)

Published: 2025-05-09 16:07:05 ET TSLX

Published on 05/09/2025 at 16:07

($ in millions, except per share amounts)

Principal Amount Committed

Maturity

Interest Rate (Swap Pricing(2))

Revolving Credit Facility(1)

$1,675.0

March 4, 2030

SOFR+1.775% / SOFR+1.65% / SOFR+1.525%

2026 Unsecured Notes

$300.0

August 1, 2026

2.500% (S + 2.17%)

2028 Unsecured Notes

$300.0

August 14, 2028

6.950% (S + 2.99%)

2029 Unsecured Notes

$350.0

March 1, 2029

6.125% (S + 2.44%)

2030 Unsecured Notes

$300.0

August 15, 2030

5.625% (S + 1.53%)

June 30, 2024

September 30, 2024

December 31, 2024

March 31, 2025

Total net assets

$1,599.0

$1,597.2

$1,607.5

$1,601.3

Debt to equity at quarter-end

1.12x

1.19x

1.22x

1.18x

Average debt to equity(3)

1.17x

1.14x

1.23x

1.19x

Interest coverage(4)

2.8x

2.4x

2.4x

2.5x

Interest & dividend coverage(4)

1.3x

1.2x

1.2x

1.2x

Interest rate on the facility is a formula-based calculation. If the Borrowing Base is less than 1.6x times the the Combined Debt Amount (i.e. 1.6x total commitments), the applicable margin is SOFR+1.775%. If the Borrowing Base is great than or equal to 1.6x and less than 2.0x the Combined Debt Amount (i.e. 1.6x total commitments), the applicable margin is SOFR+1.65%. If the Borrowing Base is greater than or equal to 2.0x the Combined Debt Amount (i.e. 2.0x total commitments), the applicable margin is SOFR+1.525%. Includes $150 million of remaining non-extending commitments with a maturity of April 23, 2027 and a revolving period ending April 24, 2026. The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility, outstanding letters of credit and asset coverage requirements

In connection with the note offerings, the Company entered into interest rate swaps to align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. In connection with certain notes repurchases, the Company entered into additional interest rate swaps to reduce the notional exposure of its existing interest rate swaps related to the notes to match the current principal amount of notes outstanding. As a result of the swaps, the effective interest rate (excluding OID) on the 2026 notes is SOFR plus 2.17%; the effective interest rate (excluding OID) on the 2028 notes is SOFR plus 2.99%; the effective interest rate (excluding OID) on the 2029 notes is SOFR plus 2.44%; and the effective interest rate (excluding OID) on the 2030 notes is SOFR plus 1.53%

Daily average debt outstanding during the quarter divided by 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)

Interest coverage defined as (LTM net investment income + LTM interest expense) / LTM interest expense. Interest & dividend coverage defined as (LTM net investment income + LTM interest expense) / (LTM interest expense + LTM regular dividends paid); excludes supplemental and special dividends paid. LTM net investment income is adjusted to exclude the capital gains incentive fee expense 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

($ in millions, except share and per share amounts)

June 30, 2024

September 30, 2024

December 31, 2024

March 31, 2025

Total net assets

$1,599.0

$1,597.2

$1,607.5

$1,601.3

Net asset value per share

$17.19

$17.12

$17.16

$17.04

Net asset value per share (adjusted)(1)

$17.13

$17.07

$17.09

$16.98

Shares outstanding (end of period)

93,017,205

93,317,621

93,661,436

93,964,358

Net investment income per share

$0.59

$0.59

$0.62

$0.62

Net income per share

$0.51

$0.44

$0.55

$0.39

Adjusted net investment income per share(2)

$0.58

$0.57

$0.61

$0.58

Adjusted net income per share(2)

$0.50

$0.41

$0.54

$0.36

Annualized ROE on net investment income(3)

13.9%

13.7%

14.4%

14.4%

Annualized ROE on net income(3)

11.9%

10.2%

12.8%

9.2%

Annualized ROE on adjusted net investment income(2)(3)

13.5%

13.2%

14.2%

13.5%

Annualized ROE on adjusted net income(2)(3)

11.6%

9.6%

12.5%

8.3%

Reflects NAV per share adjusted for the supplemental dividend per share related to that quarter's earnings and/or special dividends per share

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

Return on equity is calculated using the prior period's ending net asset value per share

Disclaimer

Sixth Street Specialty Lending Inc. published this content on May 09, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 09, 2025 at 20:06 UTC.