Sixth Street Specialty Lending, Inc. · NYSE:TSLX
Sixth Street Specialty Lending — Q1 2023 Earnings Presentation
18 slides from Sixth Street Specialty Lending's earnings presentation, May 9, 2023
Slide 1: Sixth Street Specialty Lending Earnings Presentation
SIXTH STREET SPECIALTY LENDING EARNINGS PRESENTATION Quarter Ended March 31, 2023
Slide 2: Disclaimer and Forward-Looking Statement
DISCLAIMER AND FORWARD-LOOKING STATEMENT References in this presentation (“Presentation”) to “TSLX,” “we,” “us,” “our” and “the Company” refer to Sixth Street Specialty Lending, Inc. This Presentation includes forward-looking statements about TSLX that involve substantial risks and uncertainties. Th
Slide 3: Overview
OVERVIEW SPECIALTY FINANCE COMPANY FOCUSED ON PROVIDING FINANCING SOLUTIO NS $37.65 $36.99 $36.42 $35.66$35.50 $35.10 $34.46 $33.70 $32.85 $31.83 $31.03 $29.58 $29.22 $28.64 $28.41 $28.17 $27.43 18.81 $26.61$26.83 17.8118.26 $26.03 16.0116.5316.98 $25.49 15.53 15.10 $24.89 14.63 $24.44 $24.02 14.17
Slide 4: Highlights
HIGHLIGHTS • Core focus on investing in middle-market loans to US based companies – Target EBITDA: $10 million to $250 million Broadly Distributed, – Portfolio weighted average EBITDA: $54 million(1) Scaled Senior Floating • Target investment hold size of $30 million to $100 million Rate-focused Por
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS DOLLAR AMOUNTS IN THOUSANDS Except Per Share Data; Per Share Data is Based on Weighted Average Shares Outstanding During the Period, Except as Otherwise Noted Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Investment Income Per Share $0.47 $0.54 $0.47 $0.65 $0.53 Net Income (Loss)
Slide 6: Portfolio Highlights – Selected Metrics
PORTFOLIO HIGHLIGHTS – SELECTED METRICS DOLLAR AMOUNTS IN THOUSANDS March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Investments at Fair Value $2,451,859 $2,536,390 $2,806,063 $2,787,925 $2,918,584 Number of Portfolio Companies 69 94 118 121 127 Average Investment Siz
Slide 7: Quarterly Statements of Financial Condition
QUARTERLY STATEMENTS OF FINANCIAL CONDITION DOLLAR AMOUNTS IN THOUSANDS Except Per Share Data; Per Share Data is Based on Ending Shares Outstanding March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Assets Investments at Fair Value $2,451,859 $2,536,390 $2,806,063 $2,78
Slide 8: Net Asset Value Bridge – Q1'23
NET ASSET VALUE BRIDGE – Q1’23 ($0.02) ($0.07) $16.59 $0.55 $16.55 $16.48 ($0.46) $16.39 $16.39 $0.22 ($0.02) ($0.04) ($0.09) 12/31/22 Q4'22 12/31/22 Q1'23 Q1'23 Q1'23 Q1'23 NAV Q1'23 Q1'23 3/31/23 Q1'23 3/31/23 NAV Supplemental Adjusted NAV* Adjusted Net Accrued Capital Reversal of Net Base Dividen
Slide 9: Operating Results Detail
OPERATING RESULTS DETAIL DOLLAR AMOUNTS IN THOUSANDS Except Per Share Data; Per Share Data is Based on Weighted Average Shares Outstanding During the Period, Except as Otherwise Noted For Three Months Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Investment I
Slide 10: Portfolio Highlights – Funding Activity
PORTFOLIO HIGHLIGHTS – FUNDING ACTIVITY (Dollar amounts in millions) Q1’23 COMMITMENTS AND NET FUNDING • New investment commitments and fundings totaled $176.1 and $138.9, respectively. The fundings were distributed across 6 new portfolio companies, 5 upsizes to existing portfolio companies and 1 st
Slide 11: Portfolio Highlights – Asset Mix
PORTFOLIO HIGHLIGHTS – ASSET MIX NEW INVESTMENT FUNDINGS END OF PERIOD INVESTMENTS At Par Value | $ Millions At Fair Value | $ Millions First Lien Second Lien Structured Credit First Lien Second Lien Structured Credit Mezzanine Equity & Other Mezzanine Equity & Other $53 $325 $274 $212 $139 1% $ 2,4
Slide 12: Portfolio Highlights – Diversification Across Borrowers & Industries
PORTFOLIO HIGHLIGHTS – DIVERSIFICATION ACROSS BORROWERS & INDUSTRIES TOP 10 BORROWER DIVERSIFICATION INDUSTRY DIVERSIFICATION IBM Watson (Merative) TOPS / PriceChopper HST Pathways Internet Services Business Services Financial Services Retail and consumer products Acumatica TRP Assets Bed Bath & Bey
Slide 13: Portfolio Highlights – Net Interest Margin Analysis
PORTFOLIO HIGHLIGHTS – NET INTEREST MARGIN ANALYSIS (6) Weighted Average Total Yield on Debt and Income Producing Securities at Amortized Cost Weighted Average Interest Rate of Debt and Income Producing Securities at Fair Value Weighted Average Spread Over Reference Rate of All Floating Rate Investm
Slide 14: Liquidity Management
LIQUIDITY MANAGEMENT CASH AND CASH EQUIVALENTS Unrestricted Cash Totaled $9.6 Million as of March 31, 2023. Restricted Cash Related to Interest Rate Swaps Totaled $16.2 Million (18) Revolving Credit Facility Unsecured Notes $1.585 Billion Committed; Uncommitted Size: $348 Million $300 Million Size:
Slide 15: Funding Profile
FUNDING PROFILE STABLE FUNDING PROFILE DEBT PORTFOLIO COMPOSITION* DEBT FUNDING COMPOSITION Fixed Rate 0.8% Floating Rate (16) 100% Floating Rate¹ 99.2% PORTFOLIO FUNDING INVESTMENTS FUNDED REMAINING TIME TO MATURITY OF DEBT PROFILE (3) WITH DEBT 2026 Unsecured Notes (3-4 years) 13% 2024 Unsecured E
Slide 16: Distribution Information Since IPO
DISTRIBUTION INFORMATION SINCE IPO Date Declared Record Date Payment Date Amount Per Share March 26, 2014 March 31, 2014 April 30, 2014 $0.38 May 6, 2014 June 30, 2014 July 31, 2014 $0.38 August 4, 2014 September 30, 2014 October 31, 2014 $0.38 November 3, 2014 December 31, 2014 January 30, 2015 $0.
Slide 17: Endnotes
ENDNOTES Note: Figures are as of 3/31/23 quarter end unless otherwise noted (1) Represents our core portfolio, which excludes structured credit investments and certain investments that fall outside of our typical borrower profile. EBITDA is defined as earnings before interest, tax, depreciation and
Slide 18: Contact Us: TSLX Investor Relations
CONTACT US: TSLX Investor Relations IRTSLX@sixthstreet.com (260) 241-7837 VISIT US: www.sixthstreetspecialtylending.com 18 SIXTH STREET SPECIALTY LENDING
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