Sixth Street Specialty Lending, Inc. · NYSE:TSLX
Sixth Street Specialty Lending — Proxy Contest (April 2022)
15 slides from Sixth Street Specialty Lending's proxy contest presentation, Apr 14, 2022
Slide 1: Expanding Tools for Value Creation and Financial Flexibility
EXPANDING TOOLS FOR VALUE CREATION AND FINANCIAL FLEXIBILITY April 2022 S I X T H S T R E E T S P E C I A L T Y L E N D I N G
Slide 2: Disclaimer and Forward-Looking Statements
DISCLAIMER AND FORWARD-LOOKING STATEMENTS G E N E R A L D I S CL A I M E R 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
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 Sixth Street Specialty Lending, Inc. on May 26, 2022, at 10:00 AM, Eastern Time, on the internet via live webcast at www.virtualshareholdermeeting.com/TSLX2022. The proxy statement for t
Slide 4: Market Conditions May Create Attractive Investment Opportunities
MARKET CONDITIONS MAY CREATE ATTRACTIVE INVESTMENT OPPORTUNITIES • From time to time, there may be volatility in the CREDIT MARKET DISLOCATION (LATE 2015 – EARLY 2016) broader capital markets, disruption in liquidity in 1 2 Average BDC Peer P/NAV BAML HY Index (OAS) the debt capital markets, signifi
Slide 5: Strong Performance Since TSLX IPO
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV PERFORMANCE SINCE TSLX IPO 2 2 2 NI R NI Ret etu urrn n On on E Eq qu uiity ty NII Return on Equity TSLX BDC Peers (Mean) BDC Peers Top Quartile¹ TSLX BDC Peers (Mean) BDC Peers Top Quartile¹ 2021 Since TSLX IPO 2021 Since TSLX IPO
Slide 6: Total Returns (Since TSLX IPO)
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV TOTAL RETURNS (SINCE TSLX IPO) $3.39 TSLX Total Returns Performance (Since IPO) Versus: 1. Leveraged Loans: +204 percentage points Track Record of Strong Performance $2.82 High Yield: +195 percentage points BDC Peers: +166 percentag
Slide 7: Annual NI Return on Equity (Calendar Year Basis)
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV 1 ANNUAL NI RETURN ON EQUITY (CALENDAR YEAR BASIS) 2 TSLX BDC Peers (Mean) 1. Track Record of Strong Performance 19.7% 2. Disciplined Capital 15.9% 15.6% 15.4% Allocation 14.5% 11.7% 11.6% 10.8% 8.6% 7.7% 7.6% 6.9% 6.5% 6.4% 4.6% 3.
Slide 8: Equity Raise Discipline
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV EQUITY RAISE DISCIPLINE 1.60x 1 TSLX BDC Peers TSLX Average: 1.20x 1. 1.40x Track Record of 1.20x Strong Performance 1.00x 0.80x 0.60x 0.40x BDC Peers Average: 0.92x 0.20x 2. Mar '14 Jan '15 Nov '15 Aug '16 Jun '17 Apr '18 Jan '19 N
Slide 9: TSLX Follow-On Equity Raises Post IPO
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV TSLX FOLLOW-ON EQUITY RAISES POST IPO 1. FOLLOW-ON OFFERING SIZE AS % OF MARKET CAP Track Record of Strong Performance TSLX March 2018 TSLX March 2016 TSLX February 2021 $0.24 6% 9% 7% NAV accretion $0.14 2. net NAV accretion Discip
Slide 10: Benefits of Flexibility to Sell Common Stock Below NAV
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV 1. Track Record of Flexibility for the Company to sell its common stock below NAV Strong Performance is in the Company’s best interests and the best interests of its stockholders as it would provide: Access to the capital markets to
Slide 11: Analysis Framework: Illustrative NAV Dilution
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV ANALYSIS FRAMEWORK (2) Illustrative NAV Dilution (%) 1. Track Record of Issuance Amount Strong Performance (0.0) 5.0% 7.5% 10.0% 12.5% 15.0% 17.5% 2.5% (0.1%) (0.2%) (0.2%) (0.3%) (0.3%) (0.4%) 5.0% (0.2%) (0.3%) (0.5%) (0.6%) (0.7%
Slide 12: Analysis Framework: Illustrative Annual ROE Accretion
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV ANALYSIS FRAMEWORK (2) Illustrative Annual ROE Accretion (%) 1. All-in-Yield on New Investments Track Record of Strong Performance 0.0 12.0% 14.0% 16.0% 18.0% 20.0% 2.5% 3.3% 5.7% 8.1% 10.5% 12.9% 5.0% 3.2% 5.5% 7.9% 10.3% 12.6% 7.5
Slide 13: Analysis Framework: Illustrative Payback Period on Equity Raise
REASONS FOR TSLX TO HAVE FLEXIBILITY TO SELL COMMON STOCK BELOW NAV ANALYSIS FRAMEWORK 1. Track Record of Strong Performance (2) Illustrative Payback Period on Equity Raise (years) All-in-Yield on New Investments 4.6 12.0% 14.0% 16.0% 18.0% 20.0% 2.5% 0.6 0.3 0.2 0.2 0.1 2. 5.0% 1.3 0.7 0.5 0.4 0.3
Slide 14: To Vote
TO VOTE The proxy statement is now available. You may use one of the following methods to provide your voting instructions: Online at www.proxyvote.com. Have your control number listed VOTE BY on the proxy card or voting instruction form ready and follow INTERNET the instructions VOTE BY Call 1-800-
Slide 15: Contact Us
CONTACT US For Assistance Voting Your TSLX Shares: D.F. King Toll-free at (877) 283-0318 or Collect at (212) 269-5550 For other questions: TSLX Investor Relations (469) 621-2033 (212) 601-4739 IRTSLX@sixthstreet.com 15 15 S I X T H S T R E E T S P E C I A L T Y L E N D I N G
Sixth Street Specialty Lending — Proxy Contest (April 2022) on 6ix