Blackstone Secured Lending Fund · NYSE:BXSL

Blackstone Secured Lending Fund — Q1 2023 Earnings Presentation

22 slides from Blackstone Secured Lending Fund's earnings presentation, May 10, 2023

  1. Slide 1: Blackstone Secured Lending Fund Reports First Quarter 2023 Results

    Blackstone Secured Lending Fund Reports First Quarter 2023 Results NEW YORK — May 10, 2023 — Blackstone Secured Lending Fund (NYSE: BXSL, or the “Company”) today reported its first quarter 2023 results. Brad Marshall and Jonathan Bock, Co-Chief Executive Officers of Blackstone Secured Lending Fund,

  2. Slide 2: Quarterly Investor Call Details

    Quarterly Investor Call Details Blackstone Secured Lending Fund will host its conference call today at 9:30 a.m. ET to discuss results. To register for the webcast, please use the following link: https://event.webcasts.com/starthere.jsp?ei=1610895&tp_key=942bbd7160 Blackstone Secured Lending Fund is

  3. Slide 3: Blackstone Secured Lending Fund First Quarter 2023 Results

    Blackstone Secured Lending Fund First Quarter 2023 Results MAY 10, 2023 This presentation should be read in conjunction with BXSL’s latest quarterly report filed on Form 10-Q for the period ended March 31, 2023. Numbers are approximate and may not add up due to rounding.

  4. Slide 4: Highlights

    BXSL HIGHLIGHTS  Powerful earnings expansion as ~98% floating rate portfolio benefits from higher interest rates. Net investment income of $0.93 per share in the quarter, up 3% from the prior quarter  Portfolio is well-positioned with investments in companies with solid fundamentals and only 1 iss

  5. Slide 5: First Quarter Results

    FIRST QUARTER RESULTS  Net investment income of $149 million, or $0.93 per share in the quarter, up 3% from $0.90 in the prior quarter, and up 52% over the last 12 months  Net income of $139 million, or $0.86 per share in the quarter, up 13% from $0.76 in the prior quarter Earnings Summary  Regul

  6. Slide 6: First Quarter 2023 Selected Financial Highlights

    BXSL FIRST QUARTER 2023 SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) 1Q'22 1Q'23 1Q'22 LTM 1Q'23 LTM Operating results Net investment income $ 103 $ 149 $ 379 $ 530 Net income 107 139 456 436 Net investment income per share 0.61 0.93 2.45 3.25 Net income per share 0.63 0.86

  7. Slide 7: Portfolio Characteristics

    BXSL PORTFOLIO CHARACTERISTICS 97.9% 99.9% $9.6B of investments in first lien, of debt investments are investments at fair value senior secured debt(1) floating rate(1) 45.2% 181 0.14% Average loan to value portfolio companies non-accrual debt (LTV)(2)(3) investments(1) Portfolio Predominantly Portf

  8. Slide 8: Private Credit Market Trends by Size

    PRIVATE CREDIT MARKET TRENDS BY SIZE  BXSL invests in the Upper Middle Market because we believe it provides the best risk-adjusted return  Private credit market data from Lincoln International shows similar pricing trends for larger borrowers, yet greater growth and fewer defaults than that for s

  9. Slide 9: Portfolio Construction

    BXSL PORTFOLIO CONSTRUCTION  Portfolio has broad diversity across industries with no issuer accounting for more than 4% of the portfolio  Broad industry representation with largest exposures in software, health care providers & services, and professional services Top Ten Portfolio Companies(1,2) T

  10. Slide 10: Portfolio Company Fundamentals

    PORTFOLIO COMPANY FUNDAMENTALS  BXSL portfolio companies are generally larger, growing faster, and more profitable than the typical private credit borrower ~2x the Scale ~3x the Growth ~25% More Profitable LTM EBITDA LTM EBITDA Growth Year-over-Year LTM EBITDA Margin $179M 14% 29% 23% $80M 5% Priva

  11. Slide 11: Dividend Coverage History

    BXSL DIVIDEND COVERAGE HISTORY  Regular dividend increased to $0.70 per share quarter over quarter  Our dividend is exceeded by net investment income, with a dividend coverage ratio of 133%(1) $0.93 $0.90 Quarterly Dividends Per Share $0.80 $0.78 $0.67 $0.67 $0.63 $0.62 $0.30 $0.61 $0.58 $0.20 $0.

  12. Slide 12: Summary of Operating Results

    BXSL SUMMARY OF OPERATING RESULTS ($ in millions, except share and per share data) 1Q'22 1Q'23 1Q'22 LTM 1Q'23 LTM Investment Income Interest Income $ 171 $ 254 $ 654 $ 880 Payment-in-kind interest income 9 10 15 41 Dividend income 6 - 6 3 Fee Income 0 1 5 5 Total investment income $ 186 $ 265 $ 680

  13. Slide 13: Statements of Financial Condition

    BXSL STATEMENTS OF FINANCIAL CONDITION ($ in millions, except per share data) 3/31/2022 12/31/2022 3/31/2023 Assets Investments at fair value $ 10,024 $ 9,617 $ 9,626 Cash and cash equivalents 141 131 103 Interest receivable 77 98 78 Deferred financing costs 13 13 15 Receivable for investments 75 49

  14. Slide 14: Funding Profile

    BXSL FUNDING PROFILE  Well structured, diversified capital structure with significant available liquidity  Well positioned for current environment with 58% of liabilities unsecured, fixed rate at 2.97% and a low level of debt maturities with only 6% maturing within the next 2 years  BXSL maintain

  15. Slide 15: Supplemental Details

    Supplemental Details 15

  16. Slide 16: Investment Activity

    BXSL INVESTMENT ACTIVITY  Net funded investment activity of $(7) million in the quarter: – New investment commitments of $108 million at par, and investment fundings of $102 million – Proceeds from sales and repayments of $109 million Originations and Fundings Investment Activity Summary ($ in mill

  17. Slide 17: First Quarter 2023 Net Asset Value Bridge

    FIRST QUARTER 2023 NET ASSET VALUE BRIDGE $0.93 $(0.70) $26.10 $(0.06) $25.93 (1) (2) 12/31/22 NAV Net investment Regular dividends Net realized 3/31/23 NAV income declared and unrealized gain (loss) (1) The per share data was derived by using the weighted average shares outstanding during the perio

  18. Slide 18: Summary of Operating Results – Comparative

    BXSL SUMMARY OF OPERATING RESULTS – COMPARATIVE ($ in millions, except share and per share data) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Investment Income Interest Income $ 171 $ 175 $ 213 $ 237 $ 254 Payment-in-kind interest income 9 11 11 10 10 Dividend income 6 - - 3 - Fee Income 0 1 3 0 1 Total investment

  19. Slide 19: Selected Financial Highlights

    SELECTED FINANCIAL HIGHLIGHTS ($ in millions, except share and per share data) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Operating results Net investment income $ 103 $ 105 $ 132 $ 144 $ 149 Net income 107 80 96 122 139 Net investment income per share 0.61 0.62 0.80 0.90 0.93 Net income per share 0.63 0.47 0.58

  20. Slide 20: Funding Sources Summary

    BXSL FUNDING SOURCES SUMMARY  No debt maturities until July 2023  $1.2B of liquidity in cash and undrawn debt as of March 31, 2023 ($ in millions) Counterparty and Principal Total Outstanding Interest Rate Maturity Date Initial Date Entered Committed (Par) Jackson Hole Funding JPM – 11/16/18 SOFR

  21. Slide 21: Important Disclosure Information

    Important Disclosure Information 21

  22. Slide 22: Forward Looking Statements

    FORWARD LOOKING STATEMENTS Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward

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