Sixth Street Specialty Lending, Inc. · NYSE:TSLX
Sixth Street Specialty Lending — TPG Specialty Lending — Proxy Contest (August 2018)
13 slides from Sixth Street Specialty Lending's proxy contest presentation, Aug 27, 2018
Slide 1: Regulatory Relief and Expanding Tools for Value Creation
Regulatory Relief and Expanding Tools for Value Creation August 2018
Slide 2: Disclaimer and Forward-Looking Statement
Disclaimer and Forward-Looking Statement TSLX (NYSE) General Disclaimer The information contained in this presentation (the ʺPresentationʺ) is preliminary, may not be complete and may be changed. By acceptance hereof, you agree that the information contained herein may not be used, reproduced or dis
Slide 3: Special Meeting of TSLX Stockholders
Special Meeting of TSLX Stockholders To Our Stockholders: We will be holding a Special Meeting of Stockholders of TPG Specialty Lending, Inc. on October 8, 2018, at 9:30 AM, local time, at the offices of Cleary Gottlieb Steen & Hamilton LLP, 450 Park Avenue, 28th Floor, New York, NY 10022. At the me
Slide 4: TSLX's Plan For Reduced Asset Coverage Requirement
TSLX’s Plan For Reduced Asset Coverage Requirement Obtaining regulatory relief in conjunction with a revised financial policy of 0.90x-1.25x debt-to-equity will allow TSLX to drive incremental ROEs while maintaining an investment grade ratings profile Key Elements No change to our senior secured por
Slide 5: Regulatory Limit Cushion
Regulatory Limit Cushion Significant expansion to regulatory limit cushion TSLX (NYSE) Reasons For TSLX to Have Increased Leverage Flexibility Old Cushion 0.15x-0.25x 0.85x 0.75x Old Regulatory Leverage Limit Expanded Cushion 0.75x-1.10x 1.25x 0.90x 8.1% to 14.3% 16.7% to 28.9% % Portfolio Depreciat
Slide 6: Investment Grade Ratings Under Revised Financial Policy
Current: BBB- Outlook: Stable Current: BBB- Outlook: Stable Current: BBB+ Outlook: Stable TSLX (NYSE) Reasons For TSLX to Have Increased Leverage Flexibility Investment Grade Ratings Under Revised Financial Policy TSLX's ratings remain supported by its senior lending focus, with lower underlying por
Slide 7: Analysis Framework – Incremental ROE
TSLX (NYSE) Reasons For TSLX to Have Increased Leverage Flexibility Analysis Framework – Incremental ROE Track Record of Strong Performance Investment Grade Ratings Profile Potential For Incremental ROE and Dividend Cushion 4 Increased Regulatory Limit Cushion 1 2 3 Operating at the top end of our f
Slide 8: Analysis Framework – Incremental Dividend Cushion
TSLX (NYSE) Reasons For TSLX to Have Increased Leverage Flexibility Analysis Framework – Incremental Dividend Cushion Operating at the top end of our financial policy provides incremental cushion as annual credit losses could increase by approximately 50% (compared to operating at 0.75x debt-to-equi
Slide 9: High Quality Portfolio and Strong Track Record
High Quality Portfolio and Strong Track Record Focus on high quality portfolio construction and superior long term performance TSLX (NYSE) Reasons For TSLX to Have Increased Leverage Flexibility Note: Figures as of 6/30/2018, unless otherwise stated Includes one or more fixed rate investments for wh
Slide 10: Portfolio Construction Approach
TSLX (NYSE) Reasons For TSLX to Have Increased Leverage Flexibility Portfolio Construction Approach Maintain focus on senior secured, first lien investments with continued portfolio diversification Top 10 Borrower Diversification Top of the capital Structure 94% First Lien 97% Secured Note: Numbers
Slide 11: Total Returns (since TSLX IPO)
Total Returns (since TSLX IPO) Strong stockholder total returns versus peer and industry benchmarks TSLX (NYSE) Note: Returns from 3/20/2014 through 8/21/2018 BDC Peers consist of consist of 17 externally managed BDCs in the S&P BDC Index with total assets greater than $600 million as of 6/30/17 fin
Slide 12: To Vote
To Vote TSLX (NYSE) The proxy statement is now available. You may use one of the following methods to provide your voting instructions: Vote by Internet: Online at www.proxyvote.com. Have your control number listed on the proxy card or voting instruction form ready and follow the instructions; or Vo
Slide 13: Contact Us
Contact Us: For other questions: TSLX Investor Relations IRTSL@tpg.com (212) 601-4753 (212) 601-4739 For assistance voting your TSLX shares: D.F. King Toll-free at (877) 283-0324 or Collect at (212) 269-5550