Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Q2 2023 Earnings Presentation
22 slides from Blackstone Secured Lending Fund's earnings presentation, Aug 9, 2023
Slide 1: Blackstone Secured Lending Fund Reports Second Quarter 2023 Results
Blackstone Secured Lending Fund Reports Second Quarter 2023 Results NEW YORK — August 9, 2023 — Blackstone Secured Lending Fund (NYSE: BXSL, or the “Company”) today reported its second quarter 2023 results. Brad Marshall and Jonathan Bock, Co-Chief Executive Officers of Blackstone Secured Lending Fu
Slide 2: About BXSL and Forward-Looking Statements
For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of BXSL’s website at https://ir.bxsl.com. About Blackstone Secured Lending Fund Blackstone Secured Lending Fund (NYSE:BXSL) is a specialty finance company that invests primarily in the debt o
Slide 3: Blackstone Secured Lending Fund Second Quarter 2023 Results
Blackstone Secured Lending Fund Second Quarter 2023 Results AUGUST 9, 2023 This presentation should be read in conjunction with BXSL’s latest quarterly report filed on Form 10-Q for the period ended June 30, 2023. Numbers are approximate and may not add up due to rounding.
Slide 4: Highlights
BXSL HIGHLIGHTS ▪ Powerful earnings expansion as 98.7%(1) floating rate portfolio benefited from higher interest rates. Net investment income of $1.06 per share in the quarter, up 14% from the prior quarter ▪ Portfolio is well positioned with investments in companies with solid fundamentals and only
Slide 5: Second Quarter Results
SECOND QUARTER RESULTS ▪ Net investment income of $171 million, or $1.06 per share in the quarter, up 14% from $0.93 in the prior quarter, and up 71% compared to 2Q 2022 ▪ Net income of $145 million, or $0.90 per share in the quarter, up 5% from $0.86 in the prior quarter Earnings Summary ▪ Announce
Slide 6: Second Quarter 2023 Selected Financial Highlights
BXSL SECOND QUARTER 2023 SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) 2Q'22 2Q'23 2Q'22 LTM 2Q'23 LTM Operating results Net investment income $ 105 $ 171 $ 413 $ 597 Net income 80 145 419 502 Net investment income per share 0.62 1.06 2.43 3.69 Net income per share 0.47 0.90
Slide 7: Portfolio Characteristics
BXSL PORTFOLIO CHARACTERISTICS 98.4% 98.7% $9.3B of investments in first lien, of investments are floating rate(1) investments at fair value senior secured debt(1) 46.5% 180 0.1% Average loan to value portfolio companies non-accrual debt (LTV)(2)(3) investments(4) Portfolio Predominantly Portfolio C
Slide 8: Portfolio Construction
BXSL PORTFOLIO CONSTRUCTION ▪ Broad industry representation with largest exposures in software, health care providers & services, professional services, and commercial services & supplies ▪ Diversified portfolio across issuers with no single issuer accounting for more than 4% of the portfolio Top Te
Slide 9: Private Credit Market Trends by Size
PRIVATE CREDIT MARKET TRENDS BY SIZE ▪ BXSL invests in larger companies because we believe they provide the best risk-adjusted returns ▪ Private credit market data from Lincoln International shows similar pricing trends for larger borrowers, yet greater growth and fewer defaults than those for small
Slide 10: Portfolio Company Fundamentals
PORTFOLIO COMPANY FUNDAMENTALS ▪ BXSL portfolio companies are generally larger, growing faster, and more profitable than the average private credit borrower 2x the Scale 2x the Growth 30% More Profitable LTM EBITDA LTM EBITDA Growth LTM EBITDA Margin ($ in millions) (Year-over-Year %) (%) $183M 28%
Slide 11: Dividend Coverage History
BXSL DIVIDEND COVERAGE HISTORY ▪ Announced 10% increase of regular dividend from $0.70 per share for 2Q’23 to $0.77 per share for 3Q’23, representing annualized dividend yields of 10.6%(1) and 11.7%(2), respectively ▪ Our dividend is exceeded by net investment income, with a dividend coverage ratio
Slide 12: Summary of Operating Results
BXSL SUMMARY OF OPERATING RESULTS ($ in millions, except share and per share data) 2Q'22 2Q'23 2Q'22 LTM 2Q'23 LTM Investment Income Interest Income $ 175 $ 274 $ 698 $ 979 Payment-in-kind interest income 11 11 25 42 Dividend income - 0 6 4 Fee Income 1 5 2 9 Total investment income $ 187 $ 290 $ 73
Slide 13: Summary Statements of Financial Condition
BXSL SUMMARY STATEMENTS OF FINANCIAL CONDITION ($ in millions, except per share data) 6/30/2022 3/31/2023 6/30/2023 Assets Investments at fair value $ 10,085 $ 9,626 $ 9,289 Cash and cash equivalents 169 103 147 Interest receivable 72 78 75 Deferred financing costs 18 15 16 Receivable for investment
Slide 14: Funding Profile
BXSL FUNDING PROFILE ▪ Well structured, diversified capital structure with significant available liquidity ▪ Well positioned for current environment with 64% of liabilities unsecured, fixed rate at 2.97% and a low level of debt maturities with only 12% maturing within the next 2 years, as of June 30
Slide 15: Supplemental Details
Supplemental Details 15
Slide 16: Investment Activity
BXSL INVESTMENT ACTIVITY ▪ Net funded investment activity of $(348) million in the quarter: – New investment commitments of $144 million at par, and investment fundings of $117 million – Proceeds from sales and repayments of $465 million Originations and Fundings Investment Activity Summary ($ in mi
Slide 17: Second Quarter 2023 Net Asset Value Bridge
SECOND QUARTER 2023 NET ASSET VALUE BRIDGE $1.06 $(0.70) $26.30 $(0.16) $26.10 (1) (2) 3/31/23 NAV Net investment Regular dividends Net realized 6/30/23 NAV income declared and unrealized gain (loss) (1) The per share data was derived by using the weighted average shares outstanding during the perio
Slide 18: Summary of Operating Results – Comparative
BXSL SUMMARY OF OPERATING RESULTS – COMPARATIVE ($ in millions, except share and per share data) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Investment Income Interest Income $ 175 $ 213 $ 237 $ 254 $ 274 Payment-in-kind interest income 11 11 10 10 11 Dividend income - - 3 - 0 Fee Income 1 3 0 1 5 Total investmen
Slide 19: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS ($ in millions, except share and per share data) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Operating results Net investment income $ 105 $ 132 $ 144 $ 149 $ 171 Net income 80 96 122 139 145 Net investment income per share 0.62 0.80 0.90 0.93 1.06 Net income per share 0.47 0.58 0.76
Slide 20: Funding Sources Summary
BXSL FUNDING SOURCES SUMMARY ▪ $1.8B of liquidity in cash and undrawn debt (subject to borrowing base availability) as of June 30, 2023 ($ in millions) Counterparty and Principal Total Outstanding Interest Rate Maturity Date Initial Date Entered Committed (Par) Jackson Hole Funding JPM – 11/16/18 SO
Slide 21: Important Disclosure Information
Important Disclosure Information 21
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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