Sixth Street Specialty Lending, Inc. · NYSE:TSLX
Sixth Street Specialty Lending — Q1 2025 Earnings Presentation
19 slides from Sixth Street Specialty Lending's earnings presentation, May 1, 2025
Slide 1: Sixth Street Specialty Lending Earnings Presentation
SIXTH STREET SPECIALTY LENDING EARNINGS PRESENTATION Quarter Ended March 31, 2025
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
14.71 0.00 $14.71 Q4'11 14.88 0.06 $14.94 14.92 0.22 $15.14 15.12 0.54 $15.66 15.19 0.90 $16.09 Q4'12 15.27 1.23 $16.50 15.29 1.61 $16.90 OVERVIEW 15.35 2.01 $17.36 15.52 2.39 $17.91 Q4'13 15.51 2.79 $18.30 15.70 3.17 $18.87 15.66 3.55 $19.21 15.53 3.93 $19.46 Q4'14 15.60 4.32 $19.92 NAV per Share 1
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 of $111.8 million1 and median EBITDA of $51.8 million1 Scaled Senior Floating • Target investment hold size of $30 m
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 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Investment Income Per Share $0.59 $0.59 $0.59 $0.62 $0.62 Net Income (Loss)
Slide 6: Portfolio Highlights – Selected Metrics
PORTFOLIO HIGHLIGHTS – SELECTED METRICS DOLLAR AMOUNTS IN THOUSANDS March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Investments at Fair Value $3,380,009 $3,317,069 $3,441,075 $3,518,412 $3,412,032 Number of Portfolio Companies 124 109 115 116 115 Average Investment S
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, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Assets Investments at Fair Value $3,380,009 $3,317,069 $3,441,075 $3,51
Slide 8: Net Asset Value Bridge – Q1'25
NET ASSET VALUE BRIDGE – Q1’25 $0.04 ($0.13) $0.58 ($0.46) $17.16 $17.13 $17.09 $0.01 $17.04 $16.98 ($0.07) ($0.06) ($0.05) ($0.06) 12/31/2024 Q4'24 12/31/24 Q1'25 Q1'25 Q1'25 Q1'25 NAV Q1'25 Net Realized Q1'25 3/31/25 Q1'25 Declared 3/31/25 2 Supplemental Adjusted NAV 1 Adjusted Net Reversal of Rev
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, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Investment I
Slide 10: Portfolio Highlights – Funding Activity
PORTFOLIO HIGHLIGHTS – FUNDING ACTIVITY Q1’25 Commitments and Net Funding • New investment commitments and fundings totaled $154.4 million and $136.8 million, respectively. The fundings were distributed across 6 new portfolio companies and 4 upsizes to existing portfolio companies • Paydowns and sal
Slide 11: Portfolio Highlights – Asset Mix
PORTFOLIO HIGHLIGHTS – ASSET MIX New Investment Fundings End of Period Investments $ Millions by Par Value $ Millions by Fair Value First Lien Second Lien Structured Credit First Lien Second Lien Structured Credit Mezzanine Equity & Other Mezzanine Equity & Other $163 $164 $189 $324 $137 $3,380 $3,3
Slide 12: Portfolio Highlights – Diversification Across Borrowers & Industries
PORTFOLIO HIGHLIGHTS – DIVERSIFICATION ACROSS BORROWERS & INDUSTRIES Top 10 Borrower Diversification Industry Diversification Merative L.P. Bcto Ace Purchaser Inc. Internet Services Business Services ExtraHop Networks, Inc. Payscale Holdings Inc. Retail and consumer products Human Resource Support S
Slide 13: Portfolio Highlights – Net Interest Margin Analysis
PORTFOLIO HIGHLIGHTS – NET INTEREST MARGIN ANALYSIS Net Interest Margin 1 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 Flo
Slide 14: Liquidity Management
LIQUIDITY MANAGEMENT CASH AND CASH EQUIVALENTS Unrestricted Cash Totaled $4.6 Million as of March 31, 2025. Restricted Cash Related to Interest Rate Swaps Totaled $42.7 Million 1 Revolving Credit Facility Unsecured Notes $1.675 Billion Committed; Uncommitted Accordion Size: $300 Million $300 Million
Slide 15: Strong Liquidity and Funding Profile
STRONG LIQUIDITY AND FUNDING PROFILE CAPITAL & LIQUIDITY ROBUST BALANCE SHEET LIQUIDITY VS. NEAR-TERM OBLIGATIONS ($ in Millions) As of March 31, 2025 / $ Millions Near-term Obligations $5 Cash $1,017 Total Liquidity: $ 1,013 Undrawn Revolver $1.0BN1,2 Capacity1 $175 $639 Secured Revolver Liquidity
Slide 16: Last 3 Years Distribution Information
LAST 3 YEARS DISTRIBUTION INFORMATION Date Declared Record Date Payment Date Amount Per Share April 30, 2025 June 16, 2025 June 30, 2025 $0.46 April 30, 2025 (Q1’25 Supplemental) May 30, 2025 June 20, 2025 $0.06 February 13, 2025 March 14, 2025 March 31, 2025 $0.46 February 13, 2025 (Q4’24 Supplemen
Slide 17: Footnotes
FOOTNOTES Slide 3: Overview 1. Reflects NAV per share adjusted for the supplemental dividend per share related to Q1 2025 earnings 2. Moody’s rating upgraded 2/14/2025; S&P rating affirmed on 1/16/2025; Fitch rating affirmed on 4/14/2025; KBRA rating affirmed 6/3/2024 Slide 4: Highlights 1. Represen
Slide 18: Footnotes
FOOTNOTES Slide 14: Liquidity Management 1. Includes $150 million of remaining non-extending commitments with a maturity of April 23, 2027 and a revolving period ending April 24, 2026. The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facilit
Slide 19: Contact Us
CONTACT US: TSLX Investor Relations IRTSLX@sixthstreet.com (469) 621-2033 VISIT US: www.sixthstreetspecialtylending.com 19 SIXTH STREET SPECIALTY LENDING
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