Floating‑rate loans, CLOs and swaps in focus at TSLX (TSLX)
TSLX presents a detailed schedule of debt, equity and structured credit positions across business services, healthcare, internet services, retail and other sectors. Many debt holdings are floating‑rate first‑lien loans with par amounts including $82 and $76,729 and maturities extending into the 2030s.
Reference rates include SOFR, Euribor (E), Sterling (S), STIBOR, Prime (P) and others, with specific contractual spreads such as SOFR + 5.25%, SOFR + 7.50% and E + 6.50%. Several loans carry high all‑in coupons through cash and payment‑in‑kind (PIK) interest, for example American Achievement and certain other retail and technology borrowers with stated rates above 10%.
The disclosure also lists second‑lien notes, subordinated debt, promissory and convertible notes, trust certificates, preferred and common equity units, partnership interests, warrants, and multiple CLO and other structured credit tranches with par amounts such as $1,000 and $4,500. Numerous interest rate swaps are outstanding, where TSLX receives fixed rates between 2.5% and 6.95% and pays SOFR plus a spread, with swap maturities reaching dates such as 8/1/2026, 8/14/2028 and 8/15/2031, some described as hedge accounting swaps.
Positive
- None.
Negative
- None.
Filing Explained
As of June 30, the filing updates portfolio holdings and near-term maturities; it does not establish a completed common-share issuance.
This Form 10-Q is an unaudited quarterly report that updates Sixth Street Specialty Lending’s interim financial and portfolio disclosures. The supplied investment schedule is presented as of
The schedule includes investments acquired during 2026, including a BCTO Ace Purchaser first-lien loan acquired on
Near-term line items include a Passport Labs convertible promissory note with an
Key Figures
Key Terms
first-lien loan financial
payment-in-kind (PIK) financial
Structured Credit financial
STIBOR financial
hedge accounting swaps financial
Super-Priority DIP term loan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What types of investments does TSLX hold in its portfolio?
How are most TSLX debt investments structured in terms of interest rates?
Does TSLX invest in instruments with payment-in-kind (PIK) interest?
What maturities do TSLX loans and structured credit positions extend to?
How does TSLX manage interest rate exposure in this portfolio?
What kinds of structured credit investments appear in TSLX’s holdings?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
|
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ |
Accelerated filer |
☐ |
|
Non-accelerated filer |
☐ |
Smaller reporting company |
|
|
|
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The number of shares of the registrant’s common stock, $.01 par value per share, outstanding at August 4, 2026 was
SIXTH STREET SPECIALTY LENDING, INC.
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INDEX |
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PAGE NO. |
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PART I. |
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FINANCIAL INFORMATION |
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4 |
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Item 1. |
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Financial Statements |
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4 |
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Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025 |
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4 |
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Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 (Unaudited) |
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5 |
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Consolidated Schedules of Investments as of June 30, 2026 (Unaudited) and December 31, 2025 |
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6 |
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Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2026 and 2025 (Unaudited) |
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26 |
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Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025 (Unaudited) |
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27 |
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Notes to Consolidated Financial Statements (Unaudited) |
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28 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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55 |
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Item 3. |
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Quantitative and Qualitative Disclosures About Market Risk |
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77 |
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Item 4. |
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Controls and Procedures |
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78 |
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PART II. |
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OTHER INFORMATION |
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79 |
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Item 1. |
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Legal Proceedings |
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79 |
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Item 1A. |
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Risk Factors |
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79 |
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Item 2. |
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Unregistered Sales of Equity Securities and Use of Proceeds |
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79 |
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Item 3. |
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Defaults Upon Senior Securities |
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79 |
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Item 4. |
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Mine Safety Disclosures |
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79 |
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Item 5. |
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Other Information |
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79 |
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Item 6. |
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Exhibits |
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80 |
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SIGNATURES |
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81 |
||
2
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.
In addition to factors previously identified elsewhere in the reports and other documents Sixth Street Specialty Lending, Inc. (the "Company", "we", "us", or "our") has filed with the Securities and Exchange Commission (the “SEC”), the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
The “TSLX” and “TAO” marks are marks of Sixth Street.
3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Sixth Street Specialty Lending, Inc.
Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
(Unaudited)
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June 30, 2026 |
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December 31, 2025 |
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Assets |
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Investments at fair value |
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Non-controlled, non-affiliated investments (amortized cost of $ |
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$ |
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$ |
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Non-controlled, affiliated investments (amortized cost of $ |
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Controlled, affiliated investments (amortized cost of $ |
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Total investments at fair value (amortized cost of $ |
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Cash and cash equivalents (restricted cash of $ |
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Interest receivable |
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Prepaid expenses and other assets |
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Total Assets |
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$ |
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$ |
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Liabilities |
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Debt (net of deferred financing costs of $ |
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$ |
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$ |
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Management fees payable to affiliate |
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Incentive fees on net investment income payable to affiliate |
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Incentive fees on net capital gains accrued to affiliate |
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Other payables to affiliate |
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Other liabilities |
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Total Liabilities |
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Commitments and contingencies (Note 8) |
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Net Assets |
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Preferred stock, $ |
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— |
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— |
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Common stock, $ |
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Additional paid-in capital |
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Treasury stock at cost; |
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( |
) |
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( |
) |
Distributable earnings |
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Total Net Assets |
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Total Liabilities and Net Assets |
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$ |
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$ |
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||
Net Asset Value Per Share |
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$ |
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$ |
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||
The accompanying notes are an integral part of these consolidated financial statements.
4
Sixth Street Specialty Lending, Inc.
Consolidated Statements of Operations
(Amounts in thousands, except share and per share amounts)
(Unaudited)
|
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Three Months Ended |
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Six Months Ended |
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||||||||||
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June 30, 2026 |
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June 30, 2025 |
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June 30, 2026 |
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June 30, 2025 |
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Income |
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Investment income from non-controlled, non-affiliated investments: |
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Interest from investments |
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$ |
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$ |
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$ |
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$ |
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||||
Paid-in-kind interest income |
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Dividend income |
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Other income |
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Total investment income from non-controlled, non-affiliated investments |
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Investment income from non-controlled, affiliated investments: |
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Dividend income |
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Total investment income from non-controlled, affiliated investments |
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Investment income from controlled, affiliated investments: |
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Interest from investments |
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Other income |
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Total investment income from controlled, affiliated investments |
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Total Investment Income |
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||||
Expenses |
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||||
Interest |
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Management fees |
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Incentive fees on net investment income |
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Incentive fees on net capital gains |
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( |
) |
|||
Professional fees |
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Directors’ fees |
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Other general and administrative |
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||||
Total expenses |
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||||
Management and incentive fees waived (Note 3) |
|
|
( |
) |
|
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( |
) |
|
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( |
) |
|
|
( |
) |
Net Expenses |
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||||
Net Investment Income Before Income Taxes |
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||||
Income taxes, including excise taxes |
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Net Investment Income |
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||||
Unrealized and Realized Gains (Losses) |
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Net change in unrealized gains (losses): |
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||||
Non-controlled, non-affiliated investments |
|
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( |
) |
|
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( |
) |
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||
Non-controlled, affiliated investments |
|
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||||
Controlled, affiliated investments |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
Translation of other assets and liabilities in foreign currencies |
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( |
) |
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( |
) |
||
Income tax provision |
|
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( |
) |
|
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( |
) |
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||
Total net change in unrealized gains (losses) |
|
|
( |
) |
|
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( |
) |
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||
Realized gains (losses): |
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||||
Non-controlled, non-affiliated investments |
|
|
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( |
) |
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( |
) |
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( |
) |
|
Foreign currency transactions |
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|
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( |
) |
|
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( |
) |
|
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( |
) |
|
Total net realized gains (losses) |
|
|
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( |
) |
|
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( |
) |
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( |
) |
|
Total Net Unrealized and Realized Gains (Losses) |
|
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( |
) |
|
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( |
) |
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( |
) |
|
Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
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$ |
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$ |
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$ |
|
||||
Earnings per common share—basic and diluted |
|
$ |
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$ |
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$ |
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$ |
|
||||
Weighted average shares of common stock outstanding—basic and diluted |
|
|
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|
||||
The accompanying notes are an integral part of these consolidated financial statements.
5
Sixth Street Specialty Lending, Inc.
Consolidated Schedule of Investments as of June 30, 2026
(Amounts in thousands, except share amounts)
(Unaudited)
6
Company (1) |
|
Investment |
|
Initial |
|
Reference |
|
|
Interest Rate |
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Amortized |
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Fair Value (9) |
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Percentage |
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|||||
Debt Investments |
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Business Services |
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|||||
Artisan Bidco, Inc.(3) |
|
First-lien loan ($ |
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|
SOFR + |
|
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|
% |
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$ |
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$ |
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% |
||||||
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First-lien loan (EUR |
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|
E + |
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% |
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% |
|||||
|
|
First-lien revolving loan ($ |
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|
SOFR + |
|
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% |
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|
|
|
|
|
|
% |
||||||
Azurite Intermediate Holdings, Inc. (3) |
|
First-lien loan ($ |
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|
SOFR + |
|
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% |
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|
|
|
|
|
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|
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% |
||||||
BCTO Ignition Purchaser, Inc. (3) |
|
First-lien holdco loan ($ |
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|
SOFR + |
|
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|
|
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|
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|
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% |
|||||||
Crewline Buyer, Inc.(3) |
|
First-lien loan ($ |
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|
SOFR + |
|
|
|
% |
|
|
|
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|
|
|
|
|
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% |
||||||
Elements Finco Limited (3)(4) |
|
First-lien loan ($ |
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|
SOFR + |
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% |
|||||||
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|
First-lien loan ($ |
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SOFR + |
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|
|
% |
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% |
||||||
|
|
First-lien loan (GBP |
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|
S + |
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|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
ExtraHop Networks, Inc. (3)(5) |
|
First-lien loan ($ |
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|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
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|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Lynx BidCo (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Mitnick Corporate Purchaser, Inc. (3)(13) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Price Fx Inc. (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
USA DeBusk, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Wrangler TopCo, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
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|
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|
|
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% |
|||||
Chemicals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Erling Lux Bidco SARL (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (GBP |
|
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (NOK |
|
|
N + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (GBP |
|
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
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% |
|||||
Communications |
|
|
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|
|
|
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|
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|
|
|
|
|
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|
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|
|
|||||
Aurelia Netherlands B.V. (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EMS Linq, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kangaroo Bidco AS (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Severin Acquisition, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Electronics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
7
Sapphire Software Buyer, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Alaska Bidco Oy (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Arlberg Bidco LLC (3)(4)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
GreenShoot BidCo B.V (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Ibis Intermediate Co. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ibis US Blocker Co. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Passport Labs, Inc. |
|
Convertible Promissory Note A ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Payroc Buyer, LLC |
|
Promissory Note ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Volante Technologies, Inc. |
|
First-lien loan ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Healthcare |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Aledade, Inc. (3) |
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
BCTO Ace Purchaser, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Eventus Buyer, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
HMP Omnimedia, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ingenovis Health Finance, LLC (3) |
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
LIHA Holdco B.V. (3)(4)(5) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Raptor US Buyer II Corp. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Symplr Software Inc. (3)(13) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Velocity Clinical Research, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Hotel, Gaming and Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ASG II, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
AVSC Holding Corp. (3) |
|
First-lien loan ($ |
|
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan ($ |
|
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Equinox Holdings, Inc. |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Second-lien loan ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
IRGSE Holding Corp. (3)(7) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Mindbody, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Sport Alliance GmbH (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Human Resource Support Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Axonify, Inc. (3)(4)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
bswift, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
8
Elysian Finco Ltd. (3)(4)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (GBP |
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
HireVue, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
PayScale Holdings, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Internet Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Arrow Buyer, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Bayshore Intermediate #2, L.P. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Big Wombat Holdings, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Coupa Holdings, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
EDB Parent, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Flight Intermediate HoldCo, Inc. |
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Hippo XPA Bidco AB (3)(4) |
|
First-lien loan (SEK |
|
|
STIBOR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (SEK |
|
|
STIBOR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kaseware Intermediate Holding Company (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Khoros, LLC |
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kryptona BidCo US, LLC (3) |
|
First-lien loan ($ |
|
12/18/2024 |
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (EUR |
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
LeanTaaS Holdings, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
RainFocus, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
SMA Technologies Holdings, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ASP Unifrax Holdings, Inc. (12)(13) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Second-lien note ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Leg Purchaser, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
P + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Varinem German BidCo GMBH (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Office Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
USR Parent, Inc. (3)(5) |
|
ABL FILO term loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Oil, Gas and Consumable Fuels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Laramie Energy, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
TRP Assets, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
9
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Boréal Bidco (3)(4) |
|
First-lien note (EUR |
|
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kahua, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Omnigo Software, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Scorpio Bidco (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Sediver S.p.A. (3)(4) |
|
First-lien note (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien note ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Arrowhead Pharmaceuticals, Inc. (4) |
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Elysium BidCo Limited (3)(4) |
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (GBP |
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cirrus (BidCo) Limited (3)(4)(5) |
|
First-lien loan (GBP |
|
|
|
S + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (GBP |
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Retail and Consumer Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acosta (3)(13) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
American Achievement, Corp. (3)(12) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Subordinated note ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Bed Bath and Beyond Inc. (3)(12)(16) |
|
ABL FILO term loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Roll Up DIP term loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Super-Priority DIP term loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Belk, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Blazing Star Parent, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Cordance Operations, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuintel, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
PDI TA Holdings, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Photo Holdings, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Rapid Data GmbH Unternehmensberatung (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Tango Management Consulting, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ben Nevis Midco Limited (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Marcura Equities LTD (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan (GBP |
|
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
10
Project44, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Rail Acquisitions LLC |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Second-lien note ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Ranger Intermediate II, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Shiftmove GMBH (3)(4)(5) |
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Total Debt Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity, Structured Credit and Joint Venture Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Artisan Topco LP (10) |
|
Class A Preferred Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Dye & Durham, Ltd. (4)(10)(14) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Insight Hideaway Aggregator, L.P. (10) |
|
Partnership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Mitnick TA Aggregator, L.P. (10) |
|
Membership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Newark FP Co-Invest, L.P. (10) |
|
Partnership ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Sprinklr, Inc. (10)(14) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Warrior TopCo LP (10) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Communications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Celtra Technologies, Inc. (10) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
IntelePeer Holdings, Inc. (10) |
|
Series C Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Series D Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Series D Warrants ( |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EMS Linq, Inc. (10) |
|
Class B Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
AF Eagle Parent, L.P. (10) |
|
Partnership Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Newport Parent Holdings, L.P. (10) |
|
Class A-2 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Passport Labs, Inc. (10) |
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
TS Imagine, Inc. (15) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Class AA Units ( |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Healthcare |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Caris Life Sciences, Inc. (10)(14) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Merative Topco L.P. (10) |
|
Class A-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Raptor US Buyer II Corp. (10) |
|
Ordinary Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Hotel, Gaming and Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IRGSE Holding Corp. (7)(10) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Class C-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Human Resource Support Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Axonify, Inc. (4)(10)(15) |
|
Class A-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
bswift, LLC (10) |
|
Class A-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
DaySmart Holdings, LLC (10) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Employment Hero Holdings Pty Ltd. (4)(10) |
|
Series E Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Internet Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bayshore Intermediate #2, L.P. (10)(15) |
|
Co-Invest Common Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Co-Invest 2 Common Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Bigtincan Holdings L.P. (10)(11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Khoros, LLC (10)(15) |
|
Earnout Interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Lucidworks, Inc. (10) |
|
Series F Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Piano Software, Inc. (10) |
|
Series C-1 Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
11
|
|
Series C-2 Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
SMA Technologies Holdings, LLC (10) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Class B Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Marketing Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Validity, Inc. (10) |
|
Series A Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Oil, Gas and Consumable Fuels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Murchison Oil and Gas, LLC (10)(15) |
|
Preferred Units ( |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
% |
||||
TRP Assets, LLC (10)(15) |
|
Partnership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
TherapeuticsMD, Inc. (4)(10) |
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
% |
|||||
Elysium BidCo Limited (4)(10) |
|
Convertible Preference Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Retail and Consumer Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
American Achievement, Corp. (10) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
% |
|||||
Copper Bidco, LLC (13) |
|
Trust Certificates ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuintel, LLC (10)(15) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RailTrac Holdings Inc. (10) |
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ranger Parent I, Inc. (11) |
|
Series A-1 Preferred Shares ( |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Total Equity Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Structured Credit Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ares CLO Ltd, Series 2022-63A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ares CLO Ltd, Series 2022-64A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ares CLO Ltd, Series 2024-72A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Benefit Street Partners CLO Ltd, Series 2025-39A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Canyon CLO Ltd, Series 2025-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Carlyle US CLO Ltd, Series 2017-2A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Carlyle US CLO Ltd, Series 2021-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
CarVal CLO Ltd, Series 2023-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
CIFC Funding Ltd, Series 2020-4A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
CIFC Funding Ltd, Series 2021-7A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
CIFC Funding Ltd, Series 2022-4A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Diameter Capital CLO Ltd, Series 2025-9A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Goldentree Loan Management US CLO Ltd, Series 2022-16A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Goldentree Loan Management US CLO Ltd, Series 2023-17A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Lake George Park CLO Ltd, Series 2025-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Madison Park Funding Ltd, Series 2025-65A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Madison Park Funding Ltd, Series 2025-72A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuberger Berman CLO Ltd, Series 2017-16SA (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuberger Berman CLO Ltd, Series 2015-20A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuberger Berman Loan Advisers CLO Ltd, Series 2017-24A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuberger Berman Loan Advisers CLO Ltd, Series 2019-33A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
12
Neuberger Berman Loan Advisers CLO Ltd, Series 2021-44A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Oaktree CLO Ltd, Series 2022-2A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Octagon 67 Ltd, Series 2023-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Oha Credit Funding Ltd, Series 2025-22A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Palmer Square CLO Ltd, Series 2021-4 (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Palmer Square CLO Ltd, Series 2025-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Pikes Peak CLO Ltd, Series 2023-14A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Regatta Funding Ltd, Series 2020-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Riverbank Park CLO Ltd, Series 2024-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
RR Ltd, Series 2021-19A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Texas Debt Capital CLO Ltd, Series 2023-1A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Whitebox CLO Ltd, Series 2023-4A (3)(4)(13) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Total Structured Credit Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Joint Venture Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Structured Credit Partners JV, LLC (4)(6)(11) |
|
Partnership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Equity, Structured Credit and Joint Venture Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total Investments |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
% |
||||
|
|
Interest Rate Swaps as of June 30, 2026 |
|
|||||||||||||||||||
|
|
Company |
|
Company |
|
Maturity Date |
|
Notional |
|
|
Fair |
|
|
Upfront |
|
|
Change in |
|
||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
|
||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
— |
|
|
|
( |
) |
||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|||
Total Hedge Accounting Swaps |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
Cash collateral |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
Total derivatives |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
( |
) |
||
13
Non-Controlled, Affiliated Investments during the six months ended June 30, 2026
Company |
|
Fair |
|
|
Gross |
|
|
Gross |
|
|
Net Change |
|
|
Realized |
|
|
Transfers |
|
|
Fair |
|
|
Interest |
|
|
Dividend |
|
|
Other |
|
||||||||||
Structured Credit Partners JV, LLC |
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
||||
Total |
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
— |
|
||||
Controlled, Affiliated Investments during the six months ended June 30, 2026
Company |
|
Fair |
|
|
Gross |
|
|
Gross |
|
|
Net Change |
|
|
Realized |
|
|
Transfers |
|
|
Fair |
|
|
Interest |
|
|
Dividend |
|
|
Other |
|
||||||||||
IRGSE Holding Corp. |
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||
Total |
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||
14
The accompanying notes are an integral part of these consolidated financial statements.
15
Sixth Street Specialty Lending, Inc.
Consolidated Schedule of Investments as of December 31, 2025
(Amounts in thousands, except share amounts)
16
Company (1) |
|
Investment |
|
Initial |
|
Reference |
|
|
Interest Rate |
|
|
|
Amortized |
|
|
|
Fair Value (8) |
|
|
Percentage |
|
|||||
Debt Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Artisan Bidco, Inc.(3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
$ |
|
|
|
$ |
|
|
|
% |
||||||
|
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Azurite Intermediate Holdings, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
BCTO Ignition Purchaser, Inc. (3) |
|
First-lien holdco loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Crewline Buyer, Inc.(3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Dye & Durham Corp. (3)(4)(9) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Elements Finco Limited (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (GBP |
|
|
S + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
ExtraHop Networks, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Galileo Parent, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Lynx BidCo (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Mitnick Corporate Purchaser, Inc. (3)(9) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Price Fx Inc. (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
USA DeBusk, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Wrangler TopCo, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Chemicals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Erling Lux Bidco SARL (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (GBP |
|
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (NOK |
|
|
N + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (GBP |
|
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Communications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Aurelia Netherlands B.V. (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
X Holdings Inc. (9) |
|
First-lien loan ($ |
|
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
17
Astra Acquisition Corp. (3)(14) |
|
Second-lien loan ($ |
|
|
P + |
|
|
|
% |
|
|
|
|
|
|
|
— |
|
|
|
% |
|||||
EMS Linq, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kangaroo Bidco AS (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Severin Acquisition, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Electronics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sapphire Software Buyer, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Alaska Bidco Oy (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Arlberg Bidco LLC (3)(4)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
GreenShoot BidCo B.V (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Ibis Intermediate Co. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ibis US Blocker Co. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Passport Labs, Inc. |
|
Convertible Promissory Note A ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Payroc Buyer, LLC |
|
Promissory Note ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
TS Imagine, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
P + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Volante Technologies, Inc. |
|
First-lien loan ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Healthcare |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Aledade, Inc. (3) |
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
BCTO Ace Purchaser, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Second-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Eventus Buyer, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
HMP Omnimedia, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
P + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ingenovis Health Finance, LLC (3) |
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
LIHA Holdco B.V. (3)(4)(5) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Raptor US Buyer II Corp. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Symplr Software Inc. (3)(9) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Velocity Clinical Research, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Hotel, Gaming and Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ASG II, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
AVSC Holding Corp. (3) |
|
First-lien loan ($ |
|
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Equinox Holdings, Inc. |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
18
|
|
Second-lien loan ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
IRGSE Holding Corp. (3)(6) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Sport Alliance GmbH (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Human Resource Support Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Axonify, Inc. (3)(4)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
bswift, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Elysian Finco Ltd. (3)(4)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (GBP |
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
HireVue, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Madcap Software, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
PayScale Holdings, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Internet Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Arrow Buyer, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Bayshore Intermediate #2, L.P. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Big Wombat Holdings, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Coupa Holdings, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
EDB Parent, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Flight Intermediate HoldCo, Inc. |
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Hippo XPA Bidco AB (3)(4) |
|
First-lien loan (SEK |
|
|
STIBOR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan (SEK |
|
|
STIBOR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kaseware Intermediate Holding Company (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Khoros, LLC |
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kryptona BidCo US, LLC (3) |
|
First-lien loan ($ |
|
12/18/2024 |
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (EUR |
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
LeanTaaS Holdings, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
RainFocus, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
SMA Technologies Holdings, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Arcwood Environmental, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
ASP Unifrax Holdings, Inc. (9) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
19
|
|
Second-lien note ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Varinem German BidCo GMBH (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Office Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
USR Parent, Inc. (3)(5) |
|
ABL FILO term loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Oil, Gas and Consumable Fuels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Laramie Energy, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
TRP Assets, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Boréal Bidco (3)(4) |
|
First-lien note (EUR |
|
|
|
E + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Kahua, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Omnigo Software, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Scorpio Bidco (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Sediver S.p.A. (3)(4) |
|
First-lien note (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien note ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Apellis Pharmaceuticals, Inc. (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Arrowhead Pharmaceuticals, Inc. (4) |
|
First-lien loan ($ |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Elysium BidCo Limited (3)(4) |
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien loan (GBP |
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cirrus (BidCo) Limited (3)(4)(5) |
|
First-lien loan (GBP |
|
|
|
S + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Retail and Consumer Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acosta (3)(9) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
American Achievement, Corp. (3)(14) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Subordinated note ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Bed Bath and Beyond Inc. (3)(15) |
|
ABL FILO term loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Roll Up DIP term loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Super-Priority DIP term loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Belk, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Blazing Star Parent, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Cordance Operations, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuintel, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
PDI TA Holdings, Inc. (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
20
Rapid Data GmbH Unternehmensberatung (3)(4) |
|
First-lien loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
First-lien revolving loan (EUR |
|
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Tango Management Consulting, LLC (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ben Nevis Midco Limited (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Marcura Equities LTD (3)(4) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
First-lien loan (GBP |
|
|
|
S + |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
First-lien revolving loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Project44, Inc. (3)(5) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Rail Acquisitions LLC |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Second-lien note ($ |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
Ranger Intermediate II, LLC (3) |
|
First-lien loan ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Shiftmove GMBH (3)(4)(5) |
|
First-lien loan (EUR |
|
|
E + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Total Debt Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity and Other Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Artisan Topco LP (11) |
|
Class A Preferred Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Dye & Durham, Ltd. (4) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Insight Hideaway Aggregator, L.P. (11) |
|
Partnership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Mitnick TA Aggregator, L.P. (11) |
|
Membership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Newark FP Co-Invest, L.P. (11) |
|
Partnership ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Sprinklr, Inc. (10)(11) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Warrior TopCo LP (11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Communications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Celtra Technologies, Inc. (11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
IntelePeer Holdings, Inc. (11) |
|
Series C Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Series D Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Series D Warrants ( |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Astra 2L Holdings II LLC (11) |
|
Membership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
% |
|||||
EMS Linq, Inc. (11) |
|
Class B Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
AF Eagle Parent, L.P. (11) |
|
Partnership Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Newport Parent Holdings, L.P. (11) |
|
Class A-2 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Oxford Square Capital Corp. (4)(10) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Passport Labs, Inc. (11) |
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
% |
|||||
TS Imagine, Inc. (13) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Class AA Units ( |
|
|
|
% |
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Healthcare |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Caris Life Sciences, Inc. (10)(11) |
|
Common Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Merative Topco L.P. (11) |
|
Class A-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Raptor US Buyer II Corp. (11) |
|
Ordinary Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Hotel, Gaming and Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IRGSE Holding Corp. (6)(11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Class C-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
21
Human Resource Support Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Axonify, Inc. (4)(11)(13) |
|
Class A-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
bswift, LLC |
|
Class A-1 Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
DaySmart Holdings, LLC (11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Employment Hero Holdings Pty Ltd. (4)(11) |
|
Series E Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Internet Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bayshore Intermediate #2, L.P. (11)(13) |
|
Co-Invest Common Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Co-Invest 2 Common Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Bigtincan Holdings L.P. (11)(12) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Khoros, LLC (12)(13) |
|
Earnout Interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Lucidworks, Inc. (11) |
|
Series F Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Piano Software, Inc. (11) |
|
Series C-1 Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Series C-2 Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
SMA Technologies Holdings, LLC (11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
Class B Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Marketing Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Validity, Inc. (11) |
|
Series A Preferred Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Oil, Gas and Consumable Fuels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Murchison Oil and Gas, LLC (11)(13) |
|
Preferred Units ( |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
% |
||||
TRP Assets, LLC (11)(13) |
|
Partnership Interest ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
TherapeuticsMD, Inc. (4)(11) |
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
% |
|||||
Elysium BidCo Limited (4)(11) |
|
Convertible Preference Shares ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Retail and Consumer Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
American Achievement, Corp. (11) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
% |
|||||
Copper Bidco, LLC (9) |
|
Trust Certificates ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Neuintel, LLC (11)(13) |
|
Class A Units ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RailTrac Holdings Inc. (11)(12) |
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ranger Parent I, Inc. (12) |
|
Series A-1 Preferred Shares ( |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||||
|
|
Warrants ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Total Equity Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Apidos CLO, Series 2015-23A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ares CLO Ltd, Series 2022-63A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ares CLO Ltd, Series 2022-64A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Ares CLO Ltd, Series 2024-72A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Benefit Street Partners CLO Ltd, Series 2025-39A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Birch Grove CLO Ltd, Series 2025-14A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Canyon CLO Ltd, Series 2025-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Carlyle US CLO Ltd, Series 2017-2A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
Carlyle US CLO Ltd, Series 2021-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
CarVal CLO Ltd, Series 2021-2A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
CarVal CLO Ltd, Series 2023-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
||||||
22
CIFC Funding Ltd, Series 2020-4A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
CIFC Funding Ltd, Series 2021-7A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
CIFC Funding Ltd, Series 2022-4A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Diameter Capital CLO Ltd, Series 2025-9A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Goldentree Loan Management US CLO Ltd, Series 2022-16A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Goldentree Loan Management US CLO Ltd, Series 2023-17A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Lake George Park CLO Ltd, Series 2025-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Madison Park Funding Ltd, Series 2025-65A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Madison Park Funding Ltd, Series 2025-72A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Neuberger Berman CLO Ltd, Series 2017-16SA (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Neuberger Berman CLO Ltd, Series 2015-20A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Neuberger Berman Loan Advisers CLO Ltd, Series 2017-24A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Neuberger Berman Loan Advisers CLO Ltd, Series 2019-33A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Neuberger Berman Loan Advisers CLO Ltd, Series 2021-44A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Oaktree CLO Ltd, Series 2022-2A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Octagon 67 Ltd, Series 2023-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Oha Credit Funding Ltd, Series 2025-22A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Palmer Square CLO Ltd, Series 2021-4 (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Palmer Square CLO Ltd, Series 2025-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Pikes Peak CLO Ltd, Series 2023-14A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Regatta Funding Ltd, Series 2020-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Riverbank Park CLO Ltd, Series 2024-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
RR Ltd, Series 2021-19A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Texas Debt Capital CLO Ltd, Series 2023-1A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Whitebox CLO Ltd, Series 2023-4A (3)(4)(9) |
|
Structured Credit ($ |
|
|
SOFR + |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
% |
|||||
Total Other Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total Equity and Other Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total Investments |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
% |
||||
|
|
Interest Rate Swaps as of December 31, 2025 |
|
|||||||||||||||||||
|
|
Company |
|
Company |
|
Maturity Date |
|
Notional |
|
|
Fair |
|
|
Upfront |
|
|
Change in |
|
||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
|
||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||||
Interest rate swap (a)(b) |
|
|
SOFR + |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||||
Total Hedge Accounting Swaps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
Cash collateral |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
Total derivatives |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||
23
Controlled, Affiliated Investments during the year ended December 31, 2025
Company |
|
Fair |
|
|
Gross |
|
|
Gross |
|
|
Net Change |
|
|
Realized |
|
|
Transfers |
|
|
Fair |
|
|
Other |
|
|
Interest |
|
|||||||||
IRGSE Holding Corp. |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Total |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
24
The accompanying notes are an integral part of these consolidated financial statements.
25
Sixth Street Specialty Lending, Inc.
Consolidated Statements of Changes in Net Assets
(Amounts in thousands, except share amounts)
(Unaudited)
|
|
Common Stock |
|
|
Treasury Stock |
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares |
|
|
Par |
|
|
Shares |
|
|
Cost |
|
|
Paid in Capital in |
|
|
Distributable |
|
|
Total Net |
|
|||||||
Balance at December 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net increase (decrease) in net assets resulting from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Net change in unrealized gains (losses) on investments and |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net realized gains (losses) on investments and foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Dividends to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Stock issued in connection with dividend reinvestment plan |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||||
Dividends declared from distributable earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance at March 31, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net increase (decrease) in net assets resulting from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Net change in unrealized gains (losses) on investments and |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net realized gains (losses) on investments and foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Increase (decrease) in Net Assets Resulting from Capital Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchases of treasury stock |
|
|
( |
) |
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
Dividends to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Stock issued in connection with dividend reinvestment plan |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||||
Dividends declared from distributable earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
Common Stock |
|
|
Treasury Stock |
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares |
|
|
Par |
|
|
Shares |
|
|
Cost |
|
|
Paid in Capital in |
|
|
Distributable |
|
|
Total Net |
|
|||||||
Balance at December 31, 2024 |
|
|
|
|
$ |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net increase (decrease) in net assets resulting from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Net change in unrealized gains (losses) on investments and |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net realized gains (losses) on investments and foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Dividends to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Stock issued in connection with dividend reinvestment plan |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||||
Dividends declared from distributable earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance at March 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net increase (decrease) in net assets resulting from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Net change in unrealized gains (losses) on investments and |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Net realized gains (losses) on investments and foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Dividends to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Stock issued in connection with dividend reinvestment plan |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||||
Dividends declared from distributable earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
The accompanying notes are an integral part of these consolidated financial statements.
26
Sixth Street Specialty Lending, Inc.
Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
|
|
Six Months Ended |
|
|
Six Months Ended |
|
||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||
Cash Flows from Operating Activities |
|
|
|
|
|
|
||
Increase (decrease) in net assets resulting from operations |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Net change in unrealized (gains) losses on investments |
|
|
|
|
|
( |
) |
|
Net change in unrealized (gains) losses on foreign currency transactions |
|
|
( |
) |
|
|
|
|
Net realized (gains) losses on investments |
|
|
|
|
|
|
||
Net realized (gains) losses on foreign currency transactions |
|
|
|
|
|
|
||
Net amortization of discount on investments |
|
|
( |
) |
|
|
( |
) |
Amortization of deferred financing costs |
|
|
|
|
|
|
||
Amortization of discount on debt |
|
|
|
|
|
|
||
Purchases and originations of investments, net |
|
|
( |
) |
|
|
( |
) |
Proceeds from investments, net |
|
|
|
|
|
|
||
Repayments on investments |
|
|
|
|
|
|
||
Paid-in-kind interest |
|
|
( |
) |
|
|
( |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Interest receivable |
|
|
( |
) |
|
|
|
|
Interest receivable paid-in-kind |
|
|
( |
) |
|
|
( |
) |
Prepaid expenses and other assets |
|
|
( |
) |
|
|
( |
) |
Management fees payable to affiliate |
|
|
( |
) |
|
|
( |
) |
Incentive fees on net investment income payable to affiliate |
|
|
( |
) |
|
|
( |
) |
Incentive fees on net capital gains accrued to affiliate |
|
|
|
|
|
( |
) |
|
Payable to affiliate |
|
|
|
|
|
|
||
Other liabilities |
|
|
( |
) |
|
|
|
|
Net Cash Provided by (Used in) Operating Activities |
|
|
|
|
|
|
||
Cash Flows from Financing Activities |
|
|
|
|
|
|
||
Borrowings on debt |
|
|
|
|
|
|
||
Repayments on debt |
|
|
( |
) |
|
|
( |
) |
Deferred financing costs |
|
|
( |
) |
|
|
( |
) |
Dividends paid to stockholders |
|
|
( |
) |
|
|
( |
) |
Purchases of treasury stock |
|
|
( |
) |
|
|
|
|
Net Cash Provided by (Used in) Financing Activities |
|
|
|
|
|
( |
) |
|
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash |
|
|
|
|
|
|
||
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
|
|
|
|
||
Cash, Cash Equivalents, and Restricted Cash, End of Period |
|
$ |
|
|
$ |
|
||
Supplemental Information: |
|
|
|
|
|
|
||
Interest paid during the period |
|
$ |
|
|
$ |
|
||
Excise and other taxes paid during the period |
|
$ |
|
|
$ |
|
||
Dividends declared during the period |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Non-Cash Financing Activities: |
|
|
|
|
|
|
||
Reinvestment of dividends during the period |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these consolidated financial statements.
27
Sixth Street Specialty Lending, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
(Amounts in thousands, unless otherwise indicated;
for example, with the word “million” or otherwise)
1. Organization and Basis of Presentation
Organization
Sixth Street Specialty Lending, Inc. (the “Company”) is a Delaware corporation formed on July 21, 2010. The Company was formed primarily to lend to, and selectively invest in, middle-market companies in the United States. The Company has elected to be regulated as a business development company (“BDC”) under the 1940 Act. In addition, for tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is managed by Sixth Street Specialty Lending Advisers, LLC (the “Adviser”).
On June 1, 2011, the Company formed a wholly-owned subsidiary, TC Lending, LLC, a Delaware limited liability company.
On March 22, 2012, the Company formed a wholly-owned subsidiary, Sixth Street SL SPV, LLC, a Delaware limited liability company.
On May 19, 2014, the Company formed a wholly-owned subsidiary, Sixth Street SL Holding, LLC, a Delaware limited liability company.
On December 9, 2020, the Company formed a wholly-owned subsidiary, Sixth Street Specialty Lending Sub, LLC, a Cayman Islands limited liability company.
On March 21, 2014, the Company completed its initial public offering (“IPO”) and the Company’s shares began trading on the New York Stock Exchange (“NYSE”) under the symbol “TSLX.”
On December 23, 2025, affiliates of Sixth Street, including the Company, and affiliates of Carlyle Group Inc. (“Carlyle”) entered into an amended and restated limited liability company agreement, as amended from time to time (the “Limited Liability Company Agreement”) to co-manage Structured Credit Partners JV, LLC (“SCP”), a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt. The Company has
Basis of Presentation
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and include the accounts of the Company and its subsidiaries. In the opinion of management, all adjustments considered necessary for the fair presentation of the consolidated financial statements for the periods presented have been included. The results of operations for interim periods are not indicative of results to be expected for the full year. All intercompany balances and transactions have been eliminated in consolidation.
Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with U.S. GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”), on February 12, 2026.
The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies.
Fiscal Year End
The Company’s fiscal year ends on December 31.
2. Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual amounts could differ from those estimates and such differences could be material.
28
Cash and Cash Equivalents
Cash and cash equivalents may consist of demand deposits, highly liquid investments (e.g., money market funds, U.S. Treasury notes, and similar type instruments) with original maturities of three months or less, and restricted cash pledged as collateral for certain centrally cleared derivative instruments. Cash and cash equivalents denominated in U.S. dollars are carried at cost, which approximates fair value. The Company deposits its cash and cash equivalents with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law.
Investments at Fair Value
Loan originations are recorded on the date of the binding commitment, which is generally the funding date. Investment transactions purchased through the secondary markets are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. The net change in unrealized gains or losses primarily reflects the change in investment values and also includes the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period.
Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available, as is the case for substantially all of our investments, are valued at fair value as determined in good faith by the Company’s Board of Directors (the “Board”), based on, among other things, the input of the Adviser, the Company’s Audit Committee and independent third-party valuation firms engaged at the direction of the Board.
As part of the valuation process, the Board takes into account relevant factors in determining the fair value of our investments, including and in combination of: the estimated enterprise value of a portfolio company (that is, the total value of the portfolio company’s net debt and equity), the nature and realizable value of any collateral, the portfolio company’s ability to make payments based on its earnings and cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, and overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Board considers whether the pricing indicated by the external event corroborates its valuation.
The Board undertakes a multi-step valuation process, which includes, among other procedures, the following:
The Company conducts this valuation process on a quarterly basis.
The Board has engaged independent third-party valuation firms to perform certain limited procedures that the Board has identified and requested them to perform in connection with the valuation process of investments for which no market quotations are readily available. At June 30, 2026, the independent third-party valuation firms performed their procedures over substantially all of the Company’s investments. Upon completion of such limited procedures, the third-party valuation firms concluded that the fair value, as determined by the Board, of those investments subjected to their limited procedures, appeared reasonable.
The Company applies Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurement (“ASC Topic 820”), as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and required disclosures of fair value measurements. ASC Topic 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC Topic 820, the Company
29
considers its principal market to be the market that has the greatest volume and level of activity. ASC Topic 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in determination of fair value. In accordance with ASC Topic 820, these levels are summarized below:
Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur. In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC Topic 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various additional criteria in making the determination as to whether a particular investment would qualify for treatment as a Level 2 or Level 3 investment. For example, the Company reviews pricing provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality, such as the depth of the relevant market relative to the size of the Company’s position.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.
In addition, changes in the market environment including the impact of changes in broader market indices and credit spreads and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein.
Financial and Derivative Instruments
The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated financial statements, pursuant to ASC Topic 815 Derivatives and Hedging, further clarified by the FASB’s issuance of the Accounting Standards Update (“ASU”) No. 2017-12, Derivatives and Hedging, which was adopted in 2019 by the Company. For all derivative instruments designated in a hedge accounting relationship, the entire change in the fair value of the hedging instrument shall be recorded in the same line item of the Consolidated Statements of Operations as the hedged item. The Company uses certain interest rate swaps as derivative instruments to hedge the Company’s fixed rate debt, and therefore both the periodic payment and the change in fair value for the effective hedge, if applicable, will be recognized as components of interest expense in the Consolidated Statements of Operations. For derivative contracts entered into by the Company that are not designated in a hedge accounting relationship, the Company presents changes in the fair value through current period earnings.
In the normal course of business, the Company has commitments and risks resulting from its investment transactions, which may include those involving derivative instruments. Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. While the notional amount gives some indication of the Company’s derivative activity, it generally is not exchanged, but is only used as the basis on which interest and other payments are exchanged. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity, and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process.
Derivatives, including the Company’s interest rate swaps, for which broker quotes are available are typically valued at those broker quotes.
Offsetting Assets and Liabilities
Foreign currency forward contract and interest rate swap receivables or payables pending settlement are offset, and the net amount is included with receivable or payable for foreign currency forward contracts or interest rate swaps in the Consolidated Balance Sheets when, and only when, they are with the same counterparty, the Company has the legal right to offset the recognized amounts, and it intends to either settle on a net basis or realize the asset and settle the liability simultaneously.
30
Foreign Currency
Foreign currency amounts are translated into U.S. dollars on the following basis:
Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. The Company’s current approach to hedging the foreign currency exposure in its non-U.S. dollar denominated investments is primarily to borrow the par amount in local currency under the Company’s Revolving Credit Facility to fund these investments. Fluctuations arising from the translation of foreign currency borrowings are included with the net change in unrealized gains (losses) on translation of assets and liabilities in foreign currencies on the Consolidated Statements of Operations.
Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.
Equity Offering Expenses
The Company records expenses related to equity offerings as a reduction of capital upon completion of an offering of registered securities. The costs associated with renewals of the Company’s shelf registration statement are expensed as incurred.
Debt Issuance Costs
The Company records origination and other expenses related to its debt obligations as deferred financing costs, which are presented as a direct deduction from the carrying value of the related debt liability. These expenses are deferred and amortized using the effective interest method, or straight-line method, over the stated maturity of the debt obligation.
Interest and Dividend Income Recognition
Interest income is recorded on an accrual basis and includes the amortization of discounts and premiums. Discounts and premiums to par value on securities purchased or originated are amortized into interest income over the contractual life of the respective security using the effective interest method. The amortized cost of investments represents the original cost adjusted for the amortization of discounts and premiums, if any.
Unless providing services in connection with an investment, such as syndication, structuring or diligence, all or a portion of any loan fees received by the Company will be deferred and amortized over the investment’s life using the effective interest method.
Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when management has reasonable doubt that the borrower will pay principal or interest in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest has been paid and, in management’s judgment, the borrower is likely to make principal and interest payments in the future. Management may determine to not place a loan on non-accrual status if, notwithstanding any failure to pay, the loan has sufficient collateral value and is in the process of collection.
Dividend income on preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies.
Other Income
From time to time, the Company may receive fees for services provided to portfolio companies by the Adviser. The services that the Adviser provides vary by investment, but may include syndication, structuring, arranger, diligence fees, or other service-based fees and fees for providing managerial assistance to our portfolio companies and are recognized as revenue when earned.
31
Earnings per share
The Company's earnings per share (“EPS”) amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock assuming all potential shares had been issued and the additional shares of common stock were dilutive. Diluted EPS reflects the potential dilution, using the if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised.
Reimbursement of Transaction-Related Expenses
The Company may receive reimbursement for certain transaction-related expenses in pursuing investments. Transaction-related expenses, which are expected to be reimbursed by third parties, are typically deferred until the transaction is consummated and are recorded in Prepaid expenses and other assets on the date incurred. The transaction-related costs of pursuing investments not otherwise reimbursed are borne by the Company and for successfully completed investments included as a component of the investment’s cost basis.
Cash advances received in respect of transaction-related expenses are recorded as Cash and cash equivalents with an offset to Other liabilities or Other payables to affiliates. Other liabilities or Other payables to affiliates are relieved as reimbursable expenses are incurred.
Income Taxes, Including Excise Taxes
The Company has elected to be treated as a RIC under Subchapter M of the Code, and the Company intends to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must, among other things, distribute to its stockholders in each taxable year generally at least
The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.
Depending on the level of taxable income earned in a tax year, the Company can be expected to carry forward taxable income (including net capital gains, if any) in excess of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible
For the three and six months ended June 30, 2026, the Company recorded a net expense of $
For the three and six months ended June 30, 2026, the Company recorded an increase in our deferred tax liability of $
Dividends to Common Stockholders
Dividends to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Board and is generally based upon the earnings estimated by the Adviser. Net realized long-term capital gains, if any, would generally be distributed at least annually, although the Company may decide to retain such capital gains.
The Company has adopted a dividend reinvestment plan that provides for reinvestment of any dividends declared in cash on behalf of stockholders, unless a stockholder elects to receive cash. As a result, if the Board authorizes, and it declares, a cash dividend, then the stockholders who have not “opted out” of the dividend reinvestment plan will have their cash dividends automatically reinvested
32
in additional shares of the Company’s common stock, rather than receiving the cash dividend. The Company may use newly issued shares to satisfy the dividend reinvestment plan or, if the Company is otherwise permitted under applicable law to purchase such shares, the Company may purchase shares in the open market in connection with satisfying the dividend reinvestment plan.
Segment Reporting
The Company has one reportable segment: Investment Activity. The Investment Activity segment generates revenue primarily in the form of interest income from the investments it holds. In addition, the Company may generate income from dividends on equity investments, capital gains on the sale of investments and various loan origination and other fees.
The Company’s chief operating decision maker (the “CODM”) is comprised of the senior executive committee that includes the Chief Executive Officer, Chief Financial Officer, and the Deputy Chief Financial Officer.
The CODM uses the net increase (decrease) in net assets resulting from operations to evaluate income generated from segment investment activities. The evaluation and assessment of this metric is used in implementing investment policy decisions, strategic initiatives, managing the Company’s portfolio, evaluation of the Company’s distribution policy and assessing the performance of the portfolio.
The accounting policies of the Investment Activity segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the segment and determines how to allocate resources based on the net increase (decrease) in net assets resulting from operations that also is reported on the Consolidated Statement of Operations. Significant segment expenses are reported as total expenses on the Consolidated Statement of Operations. The measure of segment assets is reported on the Consolidated Balance Sheet as total assets.
Recent Accounting Standards and Regulatory Updates
In November 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”, which intends to more closely align hedge accounting with the economics of an entity’s risk management activities. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years, though early adoption is permitted. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements.
In March 2026, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”)”, which intends to improve the guidance in Topic 270, Interim Reporting, in order to improve navigability of required interim disclosures and clarify when that guidance is applicable. This update is effective for interim periods in fiscal years beginning after December 15, 2027. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements.
In March 2026, the FASB issued ASU No. 2025-12, “Codification Improvements”, which is part of a standing project to address suggestions received from stakeholders that intends to clarify accounting guidance, correct errors and make technical corrections to the Accounting Standards Codification. This update is effective for interim periods in fiscal years beginning after December 15, 2026, though early adoption is permitted. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements.
3. Agreements and Related Party Transactions
Administration Agreement
On March 15, 2011, the Company entered into the Administration Agreement with the Adviser. Under the terms of the Administration Agreement, the Adviser provides administrative services to the Company. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the oversight of the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Adviser under the terms of the Administration Agreement. In addition, the Adviser is permitted to delegate its duties under the Administration Agreement to affiliates or third parties and the Company pays or reimburses the Adviser for certain expenses incurred by any such affiliates or third parties for work done on its behalf.
In February 2017, the Board of Directors of the Company and the Adviser entered into an amended and restated administration agreement (the “Administration Agreement”) reflecting certain clarifications to the agreement to provide greater detail regarding the scope of the reimbursable costs and expenses of the Administrator’s services.
33
In November 2025, the Board renewed the Administration Agreement. Unless earlier terminated as described below, the Administration Agreement will remain in effect until November 2026, and may be extended subject to required approvals. The Administration Agreement may be terminated by either party without penalty on
No person who is an officer, director or employee of the Adviser or its affiliates and who serves as a director of the Company receives any compensation from the Company for his or her services as a director. However, the Company reimburses the Adviser (or its affiliates) for the allocable portion of the costs of compensation, benefits, and related administrative expenses of the Company’s officers who provide operational and administrative services to the Company pursuant to the Administration Agreement, their respective staffs and other professionals who provide services to the Company (including, in each case, employees of the Adviser or an affiliate). Such reimbursable amounts include the allocable portion of the compensation paid by the Adviser or its affiliates to the Company’s Chief Financial Officer, Chief Compliance Officer, and other professionals who provide operational and administrative services to the Company pursuant to the Administration Agreement, including individuals who provide “back office” or “middle office” financial, operational, legal and/or compliance services to the Company. The Company reimburses the Adviser (or its affiliates) for the allocable portion of the compensation paid by the Adviser (or its affiliates) to such individuals based on the percentage of time those individuals devote, on an estimated basis, to the business and affairs of the Company and in acting on behalf of the Company. The Company may also reimburse the Adviser or its affiliates for the allocable portion of overhead expenses (including rent, office equipment and utilities) attributable thereto. Directors who are not affiliated with the Adviser receive compensation for their services and reimbursement of expenses incurred to attend meetings.
For the three and six months ended June 30, 2026, the Company incurred expenses of $
Investment Advisory Agreement
On April 15, 2011, the Company entered into the Investment Advisory Agreement with the Adviser. The Investment Advisory Agreement was subsequently amended on December 12, 2011. Under the terms of the Investment Advisory Agreement, the Adviser provides investment advisory services to the Company. The Adviser’s services under the Investment Advisory Agreement are not exclusive, and the Adviser is free to furnish similar or other services to others so long as its services to the Company are not impaired. Under the terms of the Investment Advisory Agreement, the Company will pay the Adviser the Management Fee and may also pay certain Incentive Fees.
In November 2025, the Board renewed the Investment Advisory Agreement. Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect until November 2026, and may be extended subject to required approvals. The Investment Advisory Agreement may be terminated by either party without penalty on
The Management Fee is calculated at an annual rate of
For the three and six months ended June 30, 2026, Management Fees (gross of waivers) were $
Any waived Management Fees are not subject to recoupment by the Adviser.
The Adviser intends to waive a portion of the Management Fee payable under the Investment Advisory Agreement by reducing the Management Fee on assets financed using leverage over
The Incentive Fee consists of two parts, as follows:
34
Pre-Incentive Fee net investment income means dividends, interest and fee income accrued by the Company during the calendar quarter, minus the Company’s operating expenses for the quarter (including the Management Fee, expenses payable under the Administration Agreement to the Administrator, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay-in-kind interest and zero coupon securities), accrued income that the Company may not have received in cash. Pre-Incentive Fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital gains or losses.
For purposes of determining whether pre-Incentive Fee net investment income exceeds the hurdle rate, pre-Incentive Fee net investment income is expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter.
Section 205(b)(3) of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), prohibits the Adviser from receiving the payment of fees on unrealized gains until those gains are realized, if ever. There can be no assurance that such unrealized gains will be realized in the future.
For the three and six months ended June 30, 2026, Incentive Fees were $
Any waived Incentive Fees are not subject to recoupment by the Adviser.
Since the Company’s IPO, with the exception of its waiver of Management Fees and certain Incentive Fees attributable to the Company’s ownership of certain investments and the Leverage Waiver, the Adviser has not waived its right to receive any Management Fees or Incentive Fees payable pursuant to the Investment Advisory Agreement.
From time to time, the Adviser may pay amounts owed by the Company to third-party providers of goods or services, including the Board, and the Company will subsequently reimburse the Adviser for such amounts paid on its behalf. Amounts payable to the Adviser are settled in the normal course of business without formal payment terms.
4. Investments at Fair Value
Under the 1940 Act, the Company is required to separately identify non-controlled investments where it owns
35
“controlled” companies. Detailed information with respect to the Company’s non-controlled, non-affiliated; non-controlled, affiliated; and controlled, affiliated investments is contained in the accompanying consolidated financial statements, including the Consolidated Schedules of Investments. The information in the tables below is presented on an aggregate portfolio basis, without regard to whether they are non-controlled, non-affiliated; non-controlled, affiliated; or controlled, affiliated investments.
Investments at fair value consisted of the following at June 30, 2026 and December 31, 2025:
|
|
June 30, 2026 |
|
|||||||||
|
|
Amortized Cost (1) |
|
|
Fair Value |
|
|
Net Unrealized |
|
|||
First-lien debt investments |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
||
Second-lien debt investments |
|
|
|
|
|
|
|
|
( |
) |
||
Mezzanine debt investments |
|
|
|
|
|
|
|
|
|
|||
Equity investments |
|
|
|
|
|
|
|
|
|
|||
Structured credit investments |
|
|
|
|
|
|
|
|
( |
) |
||
Joint venture investments |
|
|
|
|
|
|
|
|
|
|||
Total Investments |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
||
|
|
December 31, 2025 |
|
|||||||||
|
|
Amortized Cost (1) |
|
|
Fair Value |
|
|
Net Unrealized |
|
|||
First-lien debt investments |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Second-lien debt investments |
|
|
|
|
|
|
|
|
( |
) |
||
Mezzanine debt investments |
|
|
|
|
|
|
|
|
|
|||
Equity investments |
|
|
|
|
|
|
|
|
|
|||
Structured credit investments |
|
|
|
|
|
|
|
|
( |
) |
||
Total Investments |
|
$ |
|
|
$ |
|
|
$ |
|
|||
The industry composition of investments at fair value at June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Business Services |
|
|
% |
|
|
% |
||
Chemicals |
|
|
% |
|
|
% |
||
Communications |
|
|
% |
|
|
% |
||
Education |
|
|
% |
|
|
% |
||
Electronics |
|
|
% |
|
|
% |
||
Financial Services |
|
|
% |
|
|
% |
||
Healthcare |
|
|
% |
|
|
% |
||
Hotel, Gaming and Leisure |
|
|
% |
|
|
% |
||
Human Resource Support Services |
|
|
% |
|
|
% |
||
Internet Services |
|
|
% |
|
|
% |
||
Manufacturing |
|
|
% |
|
|
% |
||
Marketing Services |
|
|
% |
|
|
% |
||
Office Products |
|
|
% |
|
|
% |
||
Oil, Gas and Consumable Fuels |
|
|
% |
|
|
% |
||
Other (1) |
|
|
% |
|
|
% |
||
Pharmaceuticals |
|
|
% |
|
|
% |
||
Real Estate (2) |
|
|
% |
|
|
% |
||
Retail and Consumer Products |
|
|
% |
|
|
% |
||
Transportation |
|
|
% |
|
|
% |
||
Total |
|
|
% |
|
|
% |
||
36
The geographic composition of investments at fair value at June 30, 2026 and December 31, 2025 is as follows:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
United States |
|
|
|
|
|
|
||
Midwest |
|
|
% |
|
|
% |
||
Northeast |
|
|
% |
|
|
% |
||
South |
|
|
% |
|
|
% |
||
West |
|
|
% |
|
|
% |
||
Australia |
|
|
% |
|
|
% |
||
Canada |
|
|
% |
|
|
% |
||
Finland (1) |
|
|
% |
|
|
% |
||
France |
|
|
% |
|
|
% |
||
Germany |
|
|
% |
|
|
% |
||
Italy |
|
|
% |
|
|
% |
||
Netherlands |
|
|
% |
|
|
% |
||
Norway |
|
|
% |
|
|
% |
||
Sweden |
|
|
% |
|
|
% |
||
United Kingdom |
|
|
% |
|
|
% |
||
Total |
|
|
% |
|
|
% |
||
5. Derivatives
Interest Rate Swaps
The Company enters into interest rate swap transactions from time to time to hedge fixed rate debt obligations and certain fixed rate debt investments. The Company’s interest rate swaps are all with one counterparty and are centrally cleared through a registered commodities exchange. Refer to the Consolidated Schedule of Investments for additional disclosure regarding these interest rate swaps.
Cash flows related to the Company's derivatives are included within operating activities on the Consolidated Statements of Cash Flows.
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2026 |
|
|
For the Six Months Ended June 30, 2026 |
|
|||||||||||||||||||
|
|
Maturity Date |
|
Notional Amount |
|
|
Paid |
|
|
Received |
|
|
Net |
|
|
Paid |
|
|
Received |
|
|
Net |
|
|||||||
Interest rate swap |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
||||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
||||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
||||||
Total |
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2025 |
|
|
For the Six Months Ended June 30, 2025 |
|
|||||||||||||||||||
|
|
Maturity Date |
|
Notional Amount |
|
|
Paid |
|
|
Received |
|
|
Net |
|
|
Paid |
|
|
Received |
|
|
Net |
|
|||||||
Interest rate swap |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Interest rate swap |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Total |
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
For the three and six months ended June 30, 2026, the Company recognized $
37
$
For the three and six months ended June 30, 2025, the Company recognized $
As of June 30, 2026, the swap transactions had a fair value of $(
The Company is required under the terms of its derivatives agreements to pledge assets as collateral to secure its obligations underlying the derivatives. The amount of collateral required varies over time based on the mark-to-market value, notional amount and remaining term of the derivatives, and may exceed the amount owed by the Company on a mark-to-market basis. Any failure by the Company to fulfill any collateral requirement (e.g., a so-called “margin call”) may result in a default. In the event of a default by a counterparty, the Company would be an unsecured creditor to the extent of any such overcollateralization.
The Company may enter into other derivative instruments and incur other exposures with the same or other counterparties in the future.
6. Fair Value of Financial Instruments
Investments
The following tables present fair value measurements of investments as of June 30, 2026 and December 31, 2025:
|
|
Fair Value Hierarchy at June 30, 2026 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
First-lien debt investments |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
Second-lien debt investments |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||
Mezzanine debt investments |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Equity investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Structured credit investments |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Joint venture investments |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Total investments at fair value |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest rate swaps |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
Fair Value Hierarchy at December 31, 2025 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
First-lien debt investments |
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
Second-lien debt investments |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||
Mezzanine debt investments |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Equity investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Structured credit investments |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Total investments at fair value |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest rate swaps |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur.
38
The following tables present the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2026:
|
|
As of and for the Three Months Ended |
|
|||||||||||||||||||||
|
|
June 30, 2026 |
|
|||||||||||||||||||||
|
|
First-lien |
|
|
Second-lien |
|
|
Mezzanine |
|
|
Equity |
|
|
Joint venture investments |
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Purchases or originations |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Repayments / redemptions |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Sales Proceeds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Paid-in-kind interest |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Net change in unrealized gains (losses) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Net realized gains (losses) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Net amortization of discount on securities |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Transfers within Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers into (out of) Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance, End of Period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
As of and for the Six Months Ended |
|
|||||||||||||||||||||
|
|
June 30, 2026 |
|
|||||||||||||||||||||
|
|
First-lien |
|
|
Second-lien |
|
|
Mezzanine |
|
|
Equity |
|
|
Joint venture investments |
|
|
Total |
|
||||||
Balance, beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||
Purchases or originations |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||
Repayments / redemptions |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Sales Proceeds |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Paid-in-kind interest |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Net change in unrealized gains (losses) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Net realized gains (losses) |
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
Net amortization of discount on securities |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Transfers within Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Transfers into (out of) Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Balance, End of Period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Dye & Durham, Ltd. was transferred out of Level 3 into Level 1 for fair value measurement purposes during the six months ended June 30, 2026, as a result of changes in the observability of inputs into the security valuation for this portfolio company.
39
The following tables present the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2025:
|
|
As of and for the Three Months Ended |
|
|||||||||||||||||
|
|
June 30, 2025 |
|
|||||||||||||||||
|
|
First-lien |
|
|
Second-lien |
|
|
Mezzanine |
|
|
Equity |
|
|
Total |
|
|||||
Balance, beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Purchases or originations |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|||
Repayments / redemptions |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Sales Proceeds |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Paid-in-kind interest |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Net change in unrealized gains (losses) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Net realized gains (losses) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
Net amortization of discount on securities |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Transfers within Level 3 |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
Transfers into (out of) Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance, End of Period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Caris Life Sciences, Inc. was transferred out of Level 3 into Level 1 for fair value measurement purposes during the three months ended June 30, 2025, as a result of changes in the observability of inputs into the security valuation for this portfolio company.
|
|
As of and for the Six Months Ended |
|
|||||||||||||||||
|
|
June 30, 2025 |
|
|||||||||||||||||
|
|
First-lien |
|
|
Second-lien |
|
|
Mezzanine |
|
|
Equity |
|
|
Total |
|
|||||
Balance, beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Purchases or originations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Repayments / redemptions |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Sales Proceeds |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Paid-in-kind interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net change in unrealized gains (losses) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
||
Net realized gains (losses) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
Net amortization of discount on securities |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Transfers within Level 3 |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
Transfers into (out of) Level 3 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance, End of Period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Caris Life Sciences, Inc. was transferred out of Level 3 into Level 1 for fair value measurement purposes during the six months ended June 30, 2025, as a result of changes in the observability of inputs into the security valuation for this portfolio company.
The following table presents information with respect to the net change in unrealized gains or losses on investments for which Level 3 inputs were used in determining fair value that are still held by the Company at June 30, 2026 and 2025:
|
|
Net Change in Unrealized |
|
|
Net Change in Unrealized |
|
||
|
|
Gains or (Losses) |
|
|
Gains or (Losses) |
|
||
|
|
for the Three Months Ended |
|
|
for the Three Months Ended |
|
||
|
|
June 30, 2026 on |
|
|
June 30, 2025 on |
|
||
|
|
Investments Held at |
|
|
Investments Held at |
|
||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||
First-lien debt investments |
|
$ |
( |
) |
|
$ |
|
|
Second-lien debt investments |
|
|
( |
) |
|
|
( |
) |
Mezzanine debt investments |
|
|
( |
) |
|
|
|
|
Equity investments |
|
|
|
|
|
( |
) |
|
Joint venture investments |
|
|
|
|
|
— |
|
|
Total |
|
$ |
( |
) |
|
$ |
|
|
40
|
|
Net Change in Unrealized |
|
|
Net Change in Unrealized |
|
||
|
|
Gains or (Losses) |
|
|
Gains or (Losses) |
|
||
|
|
for the Six Months Ended |
|
|
for the Six Months Ended |
|
||
|
|
June 30, 2026 on |
|
|
June 30, 2025 on |
|
||
|
|
Investments Held at |
|
|
Investments Held at |
|
||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||
First-lien debt investments |
|
$ |
( |
) |
|
$ |
|
|
Second-lien debt investments |
|
|
( |
) |
|
|
( |
) |
Mezzanine debt investments |
|
|
|
|
|
( |
) |
|
Equity investments |
|
|
|
|
|
( |
) |
|
Joint venture investments |
|
|
|
|
|
— |
|
|
Total |
|
$ |
( |
) |
|
$ |
|
|
The following tables present the fair value of Level 3 Investments and the significant unobservable inputs used in the valuations as of June 30, 2026 and December 31, 2025. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.
|
|
June 30, 2026 |
||||||||||
|
|
|
|
|
Valuation |
|
Unobservable |
|
Range (Weighted |
|
Impact to Valuation |
|
|
|
Fair Value |
|
|
Technique |
|
Input |
|
Average) |
|
Increase to Input |
|
First-lien debt investments |
|
$ |
|
|
Income approach (1) |
|
Discount rate |
|
|
Decrease |
||
Second-lien debt investments |
|
|
|
|
Income approach |
|
Discount rate |
|
|
Decrease |
||
Mezzanine debt investments |
|
|
|
|
Income approach (2) |
|
Discount rate |
|
|
Decrease |
||
Equity investments |
|
|
|
|
Market Multiple (3) |
|
Comparable multiple |
|
|
Increase |
||
Joint venture investments |
|
|
|
|
Income approach (4) |
|
Discount rate |
|
|
Decrease |
||
Total |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
||||||||||
|
|
|
|
|
Valuation |
|
Unobservable |
|
Range (Weighted |
|
Impact to Valuation |
|
|
|
Fair Value |
|
|
Technique |
|
Input |
|
Average) |
|
Increase to Input |
|
First-lien debt investments |
|
$ |
|
|
Income approach (1) |
|
Discount rate |
|
|
Decrease |
||
Second-lien debt investments |
|
|
|
|
Income approach |
|
Discount rate |
|
|
Decrease |
||
Mezzanine debt investments |
|
|
|
|
Income approach (2) |
|
Discount rate |
|
|
Decrease |
||
Equity investments |
|
|
|
|
Market Multiple (3) |
|
Comparable multiple |
|
|
Increase |
||
Total |
|
$ |
|
|
|
|
|
|
|
|
|
|
The Company typically determines the fair value of its performing Level 3 debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected life, portfolio company performance since close, and other terms and risks associated with an investment. Among other factors, a determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company’s capital structure.
Significant unobservable quantitative inputs typically considered in the fair value measurement of the Company’s Level 3 debt investments primarily include current market yields, including relevant market indices, but may also include quotes from brokers, dealers, and pricing services as indicated by comparable investments. If debt investments are credit impaired, an enterprise value
41
analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate enterprise value. For the Company’s Level 3 equity investments, multiples of similar companies’ revenues, earnings before income taxes, depreciation and amortization (“EBITDA”) or some combination thereof and comparable market transactions are typically used.
Structured Credit Partners JV, LLC (“SCP”)
On December 23, 2025, affiliates of Sixth Street, including us, and affiliates of Carlyle entered into the Limited Liability Company Agreement to co-manage SCP, a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt managed by affiliates of Sixth Street or Carlyle on a no-fee basis.
Sixth Street affiliates own
As of June 30, 2026 SCP had total capital commitments of $
As of June 30, 2026, SCP had the following contributed capital and unfunded commitments from its members:
|
|
June 30, 2026 |
|
|
Total contributed capital by Sixth Street Specialty Lending Inc. |
|
$ |
|
|
Total contributed capital by Sixth Street Lending Partners |
|
|
|
|
Total contributed capital by Carlyle |
|
|
|
|
Total contributed capital |
|
$ |
|
|
Total unfunded commitments by Sixth Street Specialty Lending Inc. |
|
|
|
|
Total unfunded commitments by Sixth Street Lending Partners |
|
|
|
|
Total unfunded commitments by Carlyle |
|
|
|
|
Total unfunded commitments |
|
$ |
|
|
As of June 30, 2026, SCP had five wholly owned subsidiaries: (i) Carlyle US CLO 2026-3, Ltd., a Cayman Islands corporation; (ii) Carlyle US CLO 2026-B, Ltd., a Cayman Islands corporation; (iii) Sixth Street CLO 32, Ltd., a Cayman Islands corporation; (iv) Sixth Street SCP Warehouse 3, Ltd., a Cayman Islands corporation and (v) Sixth Street SCP Warehouse 4, Ltd., a Cayman Islands corporation. Each subsidiary primarily invests in broadly syndicated loans. As the subsidiaries are wholly owned subsidiaries, they are consolidated in SCP’s unaudited consolidated financial statements commencing from the date of their respective formation.
Below is selected consolidated balance sheet information for SCP as of June 30, 2026:
42
|
|
June 30, 2026 |
|
|
|
|
(unaudited) |
|
|
Selected Consolidated Balance Sheet Information: |
|
|
|
|
Assets |
|
|
|
|
Investments at fair value (amortized cost of $ |
|
$ |
|
|
Cash and cash equivalents (1) |
|
|
|
|
Prepaid expenses and other assets |
|
|
|
|
Total Assets |
|
$ |
|
|
Liabilities and Members' Equity |
|
|
|
|
Secured borrowings |
|
$ |
|
|
Dividend payable |
|
|
|
|
Accrued expenses and other liabilities |
|
|
|
|
Members equity (2) |
|
|
|
|
Non-controlling interest |
|
|
|
|
Total Liabilities and Members' Equity |
|
$ |
|
|
Below is selected consolidated statement of operations information for SCP for the three and six months ended June 30, 2026:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||
|
|
June 30, 2026 |
|
|
June 30, 2026 |
|
||
|
|
(unaudited) |
|
|
(unaudited) |
|
||
Selected Consolidated Statement of Operations Information: |
|
|
|
|
|
|
||
Total Investment Income |
|
$ |
|
|
$ |
|
||
Expenses |
|
|
|
|
|
|
||
Interest expense |
|
|
|
|
|
|
||
Other expenses |
|
|
|
|
|
|
||
Total expenses |
|
|
|
|
|
|
||
Net Investment Income |
|
|
|
|
|
|
||
Net change in unrealized gains (losses) on investments |
|
|
|
|
|
( |
) |
|
Net realized gains (losses) on investments |
|
|
|
|
|
|||
Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
|
|
$ |
|
||
Net income (loss) attributable to non-controlling interest |
|
|
( |
) |
|
|
( |
) |
Increase (Decrease) in Net Assets Resulting from Operations Attributable to Members |
|
$ |
|
|
$ |
|
||
For the three and six months ended June 30, 2026, SCP declared $
Below is a summary of SCP’s portfolio as of June 30, 2026:
|
|
June 30, 2026 |
|
|
Total investments (1) |
|
$ |
|
|
Weighted average yield on total investments at amortized cost |
|
|
% |
|
Weighted average yield on total investments at fair value |
|
|
% |
|
Weighted average spread on investments |
|
|
% |
|
Number of portfolio companies in SCP |
|
|
|
|
Percentage of loans at floating interest rates |
|
|
% |
|
43
The industry composition of SCP’s portfolio at fair value as of June 30, 2026 is as follows:
|
|
June 30, 2026 |
|
|||||||||
|
|
Amortized Cost |
|
|
Fair Value |
|
|
% of Fair Value |
|
|||
Aerospace & Defense |
|
$ |
|
|
$ |
|
|
|
% |
|||
Auto Aftermarket & Services |
|
|
|
|
|
|
|
|
% |
|||
Beverage & Food |
|
|
|
|
|
|
|
|
% |
|||
Business Services |
|
|
|
|
|
|
|
|
% |
|||
Capital Equipment |
|
|
|
|
|
|
|
|
% |
|||
Chemicals, Plastics & Rubber |
|
|
|
|
|
|
|
|
% |
|||
Construction & Building |
|
|
|
|
|
|
|
|
% |
|||
Consumer goods: Durable |
|
|
|
|
|
|
|
|
% |
|||
Consumer goods: Non-durable |
|
|
|
|
|
|
|
|
% |
|||
Consumer Services |
|
|
|
|
|
|
|
|
% |
|||
Containers, Packaging & Glass |
|
|
|
|
|
|
|
|
% |
|||
Diversified Financial Services |
|
|
|
|
|
|
|
|
% |
|||
Energy: Electricity |
|
|
|
|
|
|
|
|
% |
|||
Energy: Oil & Gas |
|
|
|
|
|
|
|
|
% |
|||
Environmental Industries |
|
|
|
|
|
|
|
|
% |
|||
Forest Products & Paper |
|
|
|
|
|
|
|
|
% |
|||
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
|
% |
|||
High Tech Industries |
|
|
|
|
|
|
|
|
% |
|||
Leisure Products & Services |
|
|
|
|
|
|
|
|
% |
|||
Media: Advertising, Printing & Publishing |
|
|
|
|
|
|
|
|
% |
|||
Media: Broadcasting & Subscription |
|
|
|
|
|
|
|
|
% |
|||
Media: Diversified & Production |
|
|
|
|
|
|
|
|
% |
|||
Metals & Mining |
|
|
|
|
|
|
|
|
% |
|||
Retail |
|
|
|
|
|
|
|
|
% |
|||
Telecommunications |
|
|
|
|
|
|
|
|
% |
|||
Transportation: Cargo |
|
|
|
|
|
|
|
|
% |
|||
Transportation: Consumer |
|
|
|
|
|
|
|
|
% |
|||
Utilities: Electric |
|
|
|
|
|
|
|
|
% |
|||
Utilities: Oil & Gas |
|
|
|
|
|
|
|
|
% |
|||
Wholesale |
|
|
|
|
|
|
|
|
% |
|||
Total |
|
$ |
|
|
$ |
|
|
|
% |
|||
The geographic composition of SCP’s portfolio at fair value as of June 30, 2026 is as follows:
|
|
June 30, 2026 |
|
|||||||||
|
|
Amortized Cost |
|
|
Fair Value |
|
|
% of Fair Value |
|
|||
Australia |
|
$ |
|
|
$ |
|
|
|
% |
|||
Canada |
|
|
|
|
|
|
|
|
% |
|||
Germany |
|
|
|
|
|
|
|
|
% |
|||
Ireland |
|
|
|
|
|
|
|
|
% |
|||
Luxembourg |
|
|
|
|
|
|
|
|
% |
|||
Netherlands |
|
|
|
|
|
|
|
|
% |
|||
Switzerland (1) |
|
|
|
|
|
|
|
|
% |
|||
United Kingdom |
|
|
|
|
|
|
|
|
% |
|||
United States |
|
|
|
|
|
|
|
|
% |
|||
Total |
|
$ |
|
|
$ |
|
|
|
% |
|||
Financial Instruments Not Carried at Fair Value
Debt
The fair value of the Company’s Revolving Credit Facility, which is categorized as Level 3 within the fair value hierarchy, as of June 30, 2026 and December 31, 2025, approximates its carrying value as the outstanding balance is callable at carrying value.
44
The following table presents the fair value of the Company’s 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes as of June 30, 2026 and December 31, 2025.
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
|
|
Outstanding |
|
|
Fair |
|
|
Outstanding |
|
|
Fair |
|
||||
2026 Notes |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
2028 Notes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2029 Notes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2030 Notes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2031 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other Financial Assets and Liabilities
The carrying amounts of the Company’s assets and liabilities, other than investments at fair value and the 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes, approximate fair value due to their short maturities or their close proximity of the originations to the measurement date. Under the fair value hierarchy, cash and cash equivalents are classified as Level 1 while the Company’s other assets and liabilities, other than investments at fair value and Revolving Credit Facility, are classified as Level 2.
7. Debt
Revolving Credit Facility
On August 23, 2012, the Company entered into a senior secured revolving credit agreement with Truist Bank (as a successor by merger to SunTrust Bank), as administrative agent, and J.P. Morgan Chase Bank, N.A., as syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).
As of June 30, 2026, aggregate commitments under the Revolving Credit Facility were $
Pursuant to the Seventeenth Amendment dated May 1, 2026, with respect to $
The Company may borrow amounts in U.S. dollars or certain other permitted currencies. As of June 30, 2026, the Company had outstanding debt denominated in Australian dollars (AUD) of
The Revolving Credit Facility also provides for the issuance of letters of credit up to an aggregate amount of $
45
For the $
The Revolving Credit Facility is guaranteed by Sixth Street SL SPV, LLC, TC Lending, LLC and Sixth Street SL Holding, LLC. The Revolving Credit Facility is secured by a perfected first-priority security interest in substantially all the portfolio investments held by the Company and each guarantor. Proceeds from borrowings may be used for general corporate purposes, including the funding of portfolio investments.
The Revolving Credit Facility includes customary events of default, as well as customary covenants, including restrictions on certain distributions and financial covenants. In accordance with the terms of the Sixteenth Amendment, the financial covenants require:
The Revolving Credit Facility also contains certain additional concentration limits in connection with the calculation of the borrowing base, based on the Obligor Asset Coverage Ratio.
As of June 30, 2026 and December 31, 2025, the Company was in compliance with the terms of the Revolving Credit Facility.
2026 Notes
In February 2021, the Company issued $
In connection with the issuance of the 2026 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap was $
2028 Notes
In August 2023, the Company issued $
46
underwriting discounts, offering costs and original issue discount, were $
In connection with the issuance of the 2028 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $
2029 Notes
In January 2024, the Company issued $
In connection with the issuance of the 2029 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $
2030 Notes
In February 2025, the Company issued $
In connection with the issuance of the 2030 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $
2031 Notes
In May 2026, the Company issued $
In connection with the issuance of the 2031 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $
47
interest rate swaps had a fair value of $(
For the three and six months ended June 30, 2026 and 2025, the components of interest expense related to the 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes were as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Accretion of original issue discount |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of deferred financing costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Interest Expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total interest expense in the table above does not include the effect of the interest rate swaps related to the 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes. During the three and six months ended June 30, 2026, the Company received $
As of June 30, 2026, the components of the carrying value of the 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes and the stated interest rates were as follows:
|
|
June 30, 2026 |
|
|||||||||||||||||
|
|
2026 Notes |
|
|
2028 Notes |
|
|
2029 Notes |
|
|
2030 Notes |
|
|
2031 Notes |
|
|||||
Principal amount of debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Original issue discount, net of accretion |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Deferred financing costs |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Fair value of an effective hedge |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Carrying value of debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Stated interest rate |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|||||
As of December 31, 2025, the components of the carrying value of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes and the stated interest rates were as follows:
|
|
December 31, 2025 |
|
|||||||||||||
|
|
2026 Notes |
|
|
2028 Notes |
|
|
2029 Notes |
|
|
2030 Notes |
|
||||
Principal amount of debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Original issue discount, net of accretion |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Deferred financing costs |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Fair value of an effective hedge |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Carrying value of debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Stated interest rate |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
||||
The stated interest rate in the table above does not include the effect of the interest rate swaps. As of June 30, 2026, the Company's swap-adjusted interest rate on the 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes was
As of June 30, 2026 and December 31, 2025, the Company was in compliance with the terms of the indentures governing the 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes.
In accordance with the 1940 Act, with certain limitations, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. As of June 30, 2026 and December 31, 2025, the Company’s asset coverage was
48
Debt obligations consisted of the following as of June 30, 2026 and December 31, 2025:
|
|
June 30, 2026 |
|
|||||||||||||
|
|
Aggregate |
|
|
Outstanding |
|
|
Amount |
|
|
Carrying |
|
||||
Revolving Credit Facility |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
2026 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2028 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2029 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2030 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2031 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
Total Debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Aggregate |
|
|
Outstanding |
|
|
Amount |
|
|
Carrying |
|
||||
Revolving Credit Facility |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
2026 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2028 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2029 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
2030 Notes |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|||
Total Debt |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
For the three and six months ended June 30, 2026 and 2025, the components of interest expense were as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Commitment fees |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of deferred financing costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accretion of original issue discount |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Swap settlement |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Interest Expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Average debt outstanding (in millions) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Weighted average interest rate |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
||||
49
8. Commitments and Contingencies
Portfolio Company Commitments
From time to time, the Company may enter into commitments to fund investments; such commitments are incorporated into the Company’s assessment of its liquidity position. The Company’s senior secured revolving loan commitments are generally available on a borrower’s demand and may remain outstanding until the maturity date of the applicable loan. The Company’s senior secured delayed draw term loan commitments are generally available on a borrower’s demand and, once drawn, generally have the same remaining term as the associated loan agreement. Undrawn senior secured delayed draw term loan commitments generally have a shorter availability period than the term of the associated loan agreement.
As of June 30, 2026 and December 31, 2025, the Company had the following commitments to fund investments in current portfolio companies:
50
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Alaska Bidco Oy - Delayed Draw & Revolver |
|
$ |
|
|
$ |
|
||
Aledade, Inc. - Revolver |
|
|
|
|
|
|
||
American Achievement, Corp. - Revolver |
|
|
|
|
|
|
||
Arcwood Environmental, Inc. - Revolver |
|
|
|
|
|
|
||
Arrowhead Pharmaceuticals, Inc. - Delayed Draw |
|
|
|
|
|
|
||
Artisan Bidco, Inc. - Revolver |
|
|
|
|
|
|
||
AVSC Holding Corp. - Revolver |
|
|
|
|
|
|
||
Azurite Intermediate Holdings, Inc. - Revolver & Equity |
|
|
|
|
|
|
||
Bayshore Intermediate #2, L.P. - Revolver |
|
|
|
|
|
|
||
BCTO Ace Purchaser, Inc. - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Cirrus (Bidco) Ltd - Delayed Draw |
|
|
|
|
|
|
||
Cordance Operations, LLC - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Coupa Holdings, LLC - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Crewline Buyer, Inc. - Revolver & Equity |
|
|
|
|
|
|
||
EDB Parent, LLC - Delayed Draw |
|
|
|
|
|
|
||
Elysian Finco Ltd. - Revolver |
|
|
|
|
|
|
||
EMS Linq, Inc. - Revolver |
|
|
|
|
|
|
||
Erling Lux Bidco SARL - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Eventus Buyer, LLC - Delayed Draw & Revolver |
|
|
|
|
|
|
||
ExtraHop Networks, Inc. - Revolver |
|
|
|
|
|
|
||
Flight Intermediate HoldCo, Inc. - Delayed Draw |
|
|
|
|
|
|
||
Galileo Parent, Inc. - Revolver |
|
|
|
|
|
|
||
Greenshoot Bidco B.V. - Revolver |
|
|
|
|
|
|
||
Hippo XPA Bidco AB - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Hirevue, Inc. - Delayed Draw |
|
|
|
|
|
|
||
HMP Omnimedia, LLC - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Ingenovis Health Finance, LLC - Revolver |
|
|
|
|
|
|
||
IRGSE Holding Corp. - Revolver |
|
|
|
|
|
|
||
Kahua, Inc. - Delayed Draw |
|
|
|
|
|
|
||
Kangaroo Bidco AS - Delayed Draw |
|
|
|
|
|
|
||
Kaseware Intermediate Holding Company - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Kryptona BidCo US, LLC - Revolver |
|
|
|
|
|
|
||
LeanTaaS Holdings, Inc. - Delayed Draw |
|
|
|
|
|
|
||
Leg Purchaser Inc. - Revolver |
|
|
|
|
|
|
||
LIHA Holdco B.V. - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Lynx BidCo - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Marcura Equities LTD - Revolver |
|
|
|
|
|
|
||
MindBody, Inc. - Revolver |
|
|
|
|
|
|
||
Omnigo Software, LLC - Delayed Draw & Revolver |
|
|
|
|
|
|
||
PDI TA Holdings, Inc. - Revolver |
|
|
|
|
|
|
||
Rail Acquisitions LLC - Delayed Draw & Revolver |
|
|
|
|
|
|
||
RainFocus, LLC - Delayed Draw |
|
|
|
|
|
|
||
Rapid Data GmbH Unternehmensberatung - Delayed Draw & Revolver |
|
|
|
|
|
|
||
Raptor US Buyer II Corp. - Revolver |
|
|
|
|
|
|
||
Sapphire Software Buyer, Inc. - Revolver |
|
|
|
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Scorpio Bidco - Delayed Draw |
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Sediver S.p.A. - Delayed Draw |
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Severin Acquisition, LLC - Delayed Draw & Revolver |
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Shiftmove GmbH - Delayed Draw |
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SMA Technologies Holdings, LLC - Revolver |
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Sport Alliance GmbH - Revolver |
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Structured Credit Partners JV, LLC - Equity |
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Tango Management Consulting, LLC - Delayed Draw & Revolver |
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TRP Assets, LLC - Delayed Draw |
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TS Imagine Inc. - Revolver |
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USA Debusk LLC - Delayed Draw & Revolver |
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51
Varinem German Bidco GmbH - Delayed Draw |
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Velocity Clinical Research, Inc. - Delayed Draw & Revolver |
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Wrangler Topco, LLC - Delayed Draw & Revolver |
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Total Portfolio Company Commitments (1)(2) |
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$ |
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$ |
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Other Commitments and Contingencies
As of June 30, 2026 and December 31, 2025, the Company did
From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of June 30, 2026 and December 31, 2025, management is not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.
9. Net Assets
The Company has a dividend reinvestment plan, whereby the Company may buy shares of its common stock in the open market or issue new shares in order to satisfy dividend reinvestment requests. The number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the cash dividend or distribution payable to a stockholder by the market price per share of the Company’s common stock at the close of regular trading on the NYSE on the payment date of a distribution, or if no sale is reported for such day, the average of the reported bid and ask prices. However, if the market price per share on the payment date of a cash dividend or distribution exceeds the most recently computed net asset value per share, the Company will issue shares at the greater of (i) the most recently computed net asset value per share and (ii)
Pursuant to the Company’s dividend reinvestment plan, the following tables summarize the shares issued to stockholders who have not opted out of the Company’s dividend reinvestment plan during the six months ended June 30, 2026 and 2025. All shares issued to stockholders in the tables below are newly issued shares.
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For the Six Months Ended |
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June 30, 2026 |
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Date |
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Date Declared |
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Dividend (1) |
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Record Date |
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Shares Issued |
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Shares Issued |
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Supplemental |
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Base |
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Base |
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Total Shares Issued |
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For the Six Months Ended |
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June 30, 2025 |
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Date |
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Date Declared |
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Dividend (1) |
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Record Date |
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Shares Issued |
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Shares Issued |
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Supplemental |
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Base |
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Supplemental |
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Base |
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Total Shares Issued |
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On August 4, 2015, the Company's Board authorized the Company to acquire up to $
52
amount authorized under and extension of the stock repurchase program prior to its expiration since that time, most recently as of
During the three and six months ended June 30, 2026, the Company repurchased
At the Market Offerings
The Company is a party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that the Company may from time to time issue and sell, by means of “at the market” offerings, up to $
10. Earnings per share
The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025:
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Three Months Ended |
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Six Months Ended |
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Earnings (losses) per common share — basic and diluted |
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June 30, 2026 |
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June 30, 2025 |
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June 30, 2026 |
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June 30, 2025 |
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Increase (decrease) in net assets resulting from operations |
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$ |
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$ |
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$ |
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$ |
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Weighted average shares of common stock outstanding—basic and diluted |
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Earnings per common share—basic and diluted |
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$ |
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$ |
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$ |
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$ |
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11. Dividends
The Company has historically paid a dividend to stockholders on a quarterly basis. The Company has a dividend framework that provides for a quarterly base dividend and a variable supplemental dividend, subject to satisfaction of certain measurement tests and the approval of the Board.
The following tables summarize dividends declared during the six months ended June 30, 2026 and 2025:
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For the Six Months Ended |
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June 30, 2026 |
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Date Declared |
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Dividend |
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Record Date |
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Payment Date |
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Dividend per Share |
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Total Dividends Declared |
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$ |
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For the Six Months Ended |
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June 30, 2025 |
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Date Declared |
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Dividend |
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Record Date |
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Payment Date |
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Dividend per Share |
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$ |
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Total Dividends Declared |
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$ |
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The dividends declared during the six months ended June 30, 2026 and 2025 were derived from net investment income, determined on a tax basis.
53
12. Financial Highlights
The following per share data and ratios have been derived from information provided in the consolidated financial statements. The following are the financial highlights for one share of common stock outstanding during the six months ended June 30, 2026 and 2025:
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Six Months Ended |
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Six Months Ended |
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June 30, 2026 |
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June 30, 2025 |
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Per Share Data (8) |
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Net asset value, beginning of period |
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$ |
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$ |
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Net investment income (1) |
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Net realized and unrealized gains (losses) (1) |
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( |
) |
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( |
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Total from operations |
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Issuance of common stock, net of offering costs (2) |
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Dividends declared (2) |
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( |
) |
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( |
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Total increase/(decrease) in net assets |
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( |
) |
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Net Asset Value, End of Period |
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$ |
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$ |
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Per share market value at end of period |
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$ |
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$ |
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Total return based on market value with reinvestment of dividends (3) |
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( |
)% |
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% |
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Total return based on market value (4) |
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( |
)% |
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% |
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Total return based on net asset value (5) |
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% |
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Shares Outstanding, End of Period |
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Ratios / Supplemental Data (6) |
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Ratio of net expenses to average net assets (7) |
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Ratio of net investment income to average net assets |
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Portfolio turnover |
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Net assets, end of period |
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$ |
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$ |
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13. Subsequent Events
The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events, except as already disclosed, that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of June 30, 2026.
54
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward-Looking Statements” in this report.
Overview
Sixth Street Specialty Lending, Inc. is a Delaware corporation formed on July 21, 2010. The Adviser is our external manager. We have four wholly owned subsidiaries, TC Lending, LLC, a Delaware limited liability company, which holds a California finance lender and broker license, Sixth Street SL SPV, LLC, a Delaware limited liability company, Sixth Street SL Holding, LLC, a Delaware limited liability company, and Sixth Street Specialty Lending Sub, LLC, a Cayman Islands limited liability company.
We have elected to be regulated as a BDC under the 1940 Act and as a RIC under the Code. We made our BDC election on April 15, 2011. As a result, we are required to comply with various statutory and regulatory requirements, such as:
Our shares are listed on the NYSE under the symbol “TSLX.”
Our Investment Framework
We are a specialty finance company focused on lending to middle-market companies. Since we began our investment activities in July 2011, through June 30, 2026, we have originated approximately $56.0 billion aggregate principal amount of investments and retained approximately $12.0 billion aggregate principal amount of these investments on our balance sheet prior to any subsequent exits and repayments. We seek to generate current income primarily in U.S.-domiciled middle-market companies through direct investment originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds, equity securities, and other instruments.
By “middle-market companies,” we mean companies that have annual EBITDA, which we believe is a useful proxy for cash flow, of $10 million to $250 million, although we may invest in larger or smaller companies on occasion. As of June 30, 2026, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 87.0% of our total investments based on fair value, had weighted average annual revenue of $464.8 million and weighted average annual EBITDA of $137.1 million. As of June 30, 2026, our core portfolio companies had a median annual revenue of $179.9 million and a median annual EBITDA of $56.5 million.
We invest in first-lien debt, second-lien debt, mezzanine and unsecured debt and equity and other investments. Our first-lien debt may include stand-alone first-lien loans; “last out” first-lien loans, which are loans that have a secondary priority behind super-senior “first out” first-lien loans; “unitranche” loans, which are loans that combine features of first-lien, second-lien and mezzanine debt, generally in a first-lien position; and secured corporate bonds with similar features to these categories of first-lien loans. Our second-lien debt may include secured loans, and, to a lesser extent, secured corporate bonds, with a secondary priority behind first-lien debt.
The debt in which we invest typically is not rated by any rating agency, but if these instruments were rated, they would likely receive a rating of below investment grade (that is, below BBB- or Baa3 as defined by Standard & Poor’s and Moody’s Investors Services, respectively), which is often referred to as “junk.”
The companies in which we invest use our capital to support organic growth, acquisitions, market or product expansion and recapitalizations (including restructurings). As of June 30, 2026, the largest single investment based on fair value represented 2.4% of our total investment portfolio.
As of June 30, 2026, the average investment size in each of our portfolio companies was approximately $24.1 million based on fair value. Portfolio companies includes investments in structured credit investments, which include each series of collateralized loan
55
obligation as a portfolio company investment. When excluding investments in structured credit investments, the average investment in our remaining portfolio companies was approximately $30.9 million based on fair value as of June 30, 2026.
Through our Adviser, we consider potential investments utilizing a four-tiered investment framework and against our existing portfolio as a whole:
Business and sector selection. We focus on companies with enterprise value between $50 million and $1 billion. When reviewing potential investments, we seek to invest in businesses with high marginal cash flow, recurring revenue streams and where we believe credit quality will improve over time. We look for portfolio companies that we think have a sustainable competitive advantage in growing industries or distressed situations. We also seek companies where our investment will have a low loan-to-value ratio.
We currently do not limit our focus to any specific industry and we may invest in larger or smaller companies on occasion. We classify the industries of our portfolio companies by end-market (such as healthcare, and business services) and not by the products or services (such as software) directed to those end-markets.
As of June 30, 2026, the largest industry represented 19.0% of our total investment portfolio based on fair value.
Investment Structuring. We focus on investing at the top of the capital structure and protecting that position. As of June 30, 2026, approximately 89.1% of our portfolio was invested in secured debt, including 88.3% in first-lien debt investments. We carefully perform diligence and structure investments to include strong investor covenants. As a result, we structure investments with a view to creating opportunities for early intervention in the event of non-performance or stress. In addition, we seek to retain effective voting control in investments over the loans or particular class of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We also aim for our loans to mature on a medium term, between two to seven years after origination. For the three months ended June 30, 2026, the weighted average term on new investment commitments in new portfolio companies was 5.0 years.
Deal Dynamics. We focus on, among other deal dynamics, direct origination of investments, where we identify and lead the investment transaction. A substantial majority of our portfolio investments are sourced through our direct or proprietary relationships.
Risk Mitigation. We seek to mitigate non-credit-related risk on our returns in several ways, including call protection provisions to protect future interest income. As of June 30, 2026, we had call protection on 70.3% of our debt investments based on fair value, with weighted average call prices of 108.4% for the first year, 104.6% for the second year and 101.8% for the third year, in each case from the date of the initial investment. As of June 30, 2026, 96.1% of our debt investments based on fair value bore interest at floating rates, with 100.0% of these subject to interest rate floors, which we believe helps act as a portfolio-wide hedge against inflation.
Relationship with our Adviser and Sixth Street
Our Adviser is a Delaware limited liability company. Our Adviser acts as our investment adviser and administrator and is a registered investment adviser with the SEC under the Advisers Act. Our Adviser sources and manages our portfolio through a dedicated team of investment professionals predominately focused on direct lending, which we refer to as our Investment Team. Our Investment Team is led by our Adviser’s Co-Chief Investment Officer, Co-Head of Sixth Street Direct Lending and Co-Head of Growth Robert “Bo” Stanley, Co-Head of Direct Lending Michael Griffin, and our Adviser’s Co-Founding Partner, Chief Executive Officer, and Co-Chief Investment Officer Alan Waxman, all of whom have substantial experience in credit origination, underwriting and asset management. Our investment decisions are made by our Investment Review Committee, which includes senior personnel of our Adviser and affiliates of Sixth Street Partners, LLC, or “Sixth Street.”
Sixth Street is a global investment business with over $135 billion of assets under management as of June 30, 2026. Sixth Street’s direct lending platforms include Sixth Street Specialty Lending and Sixth Street Lending Partners, which are aimed at U.S. middle-market loan originations and upper middle-market loan originations, respectively, and Sixth Street Specialty Lending Europe, which is aimed at European middle-market loan originations. Additional Sixth Street core platforms include Sixth Street TAO, which has the flexibility to invest across all of Sixth Street’s private credit market investments, Sixth Street Opportunities, which focuses on actively managed opportunistic investments across the credit cycle, Sixth Street Credit Market Strategies, which is the firm’s “public-side” credit investment platform focused on investment opportunities in broadly syndicated leveraged loan markets, Sixth Street Growth, which provides financing solutions to growing companies, Sixth Street Fundamental Strategies, which primarily invests in secondary credit, and Sixth Street Agriculture, which invests in niche agricultural opportunities. Sixth Street has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes. Sixth Street has extensive experience with highly complex, global public and private investments executed through primary originations, secondary market purchases and restructurings, and has a team of over 750 investment and operating professionals. As of June 30, 2026, seventy-five (75) of these personnel are dedicated to direct lending, including sixty (60) investment professionals.
56
Our Adviser consults with Sixth Street in connection with a substantial number of our investments. The Sixth Street platform provides us with a breadth of large and scalable investment resources. We believe we benefit from Sixth Street’s market expertise, insights into industry, sector and macroeconomic trends and intensive due diligence capabilities, which help us discern market conditions that vary across industries and credit cycles, identify favorable investment opportunities and manage our portfolio of investments. The Adviser will determine whether it would be permissible, advisable or otherwise appropriate for us to pursue a particular investment opportunity allocated to us.
On May 6, 2025, we, the Adviser and certain of our affiliates were granted an exemptive order from the SEC that allows us to co-invest, subject to certain conditions, with certain of our affiliates (including affiliates of Sixth Street) in middle-market loan origination activities for companies domiciled in the United States.
We believe our ability to co-invest with Sixth Street affiliates is particularly useful where we identify larger capital commitments than otherwise would be appropriate for us. We expect that with the ability to co-invest with Sixth Street affiliates we will continue to be able to provide “one-stop” financing to a potential portfolio company in these circumstances, which may allow us to capture opportunities where we alone could not commit the full amount of required capital or would have to spend additional time to locate unaffiliated co-investors.
Under the terms of the Investment Advisory Agreement and Administration Agreement, the Adviser’s services are not exclusive, and the Adviser is free to furnish similar or other services to others, so long as its services to us are not impaired. Under the terms of the Investment Advisory Agreement, we will pay the Adviser the base management fee (the “Management Fee”), and may also pay certain incentive fees (the “Incentive Fees”).
Under the terms of the Administration Agreement, the Adviser also provides administrative services to us. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the oversight of the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Adviser under the terms of the Administration Agreement.
General Economic Conditions
To date, 2026 has been marked by continued uncertainty in global markets, driven by investor concerns over inflation, elevated interest rates, ongoing political and regulatory uncertainty, including potential shifts in U.S. trade policy and the imposition of new tariffs, as well as geopolitical instability stemming from the conflicts in Iran and elsewhere in the Middle East and Ukraine.
Further contributing to economic uncertainty, the current U.S. presidential administration has signaled its intention to implement, and has implemented, significant changes to U.S. trade policy, tax policy and the enforcement of various regulations and a reduction of the size of the federal government (and government spending). These policy shifts could introduce additional market instability and reduce investor confidence. For example, the U.S. government announced tariffs on goods imported from various countries to the United States and countries subject to such tariffs have imposed, or may in the future, impose reciprocal or retaliatory tariffs and other trade measures. In February 2026, the U.S. Supreme Court ruled that many of the tariffs recently imposed by the U.S. government exceeded its authority, thereby invalidating many, but not all, of such tariffs. Subsequent to the U.S. Supreme Court’s ruling, the U.S. presidential administration raised potential alternative means through which the administration could impose tariffs. We are actively monitoring macroeconomic developments and analyzing the potential impacts on our business, the businesses of our portfolio companies and the broader economic environment. In light of these developments, there can be no assurances that political and regulatory conditions will not worsen and/or adversely affect the Company, its portfolio companies or their respective financial performance.
Key Components of Our Results of Operations
Investments
We focus primarily on the direct origination of loans to middle-market companies domiciled in the United States.
Our level of investment activity (both the number of investments and the size of each investment) can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital generally available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make.
In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors.
57
Revenues
We generate revenues primarily in the form of interest income from the investments we hold. In addition, we may generate income from dividends on direct equity investments, capital gains on the sale of investments and various loan origination and other fees. Our debt investments typically have a term of two to seven years, and, as of June 30, 2026, 96.1% of these investments based on fair value bore interest at a floating rate, with 100.0% of these subject to interest rate floors. Interest on debt investments is generally payable monthly or quarterly. Some of our investments provide for deferred interest payments or PIK interest. For the three and six months ended June 30, 2026, 6.9% and 7.2%, respectively, of our total investment income was comprised of PIK interest. For the three and six months ended June 30, 2025, 5.0% and 4.8%, respectively, of our total investment income was comprised of PIK interest.
Changes in our net investment income are primarily driven by the spread between the payments we receive from our investments in our portfolio companies against our cost of funding, rather than by changes in interest rates. Our investment portfolio primarily consists of floating rate loans, and our Revolving Credit Facility, 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes after taking into account the effect of the interest rate swaps we have entered into in connection with these securities, all bear interest at floating rates. Macro trends in base interest rates like SOFR or other reference rates may affect our net investment income over the long term. However, because we generally originate loans to a limited number of portfolio companies each quarter, and those investments also vary in size, our results in any given period—including the interest rate on investments that were sold or repaid in a period compared to the interest rate of new investments made during that period—often are idiosyncratic, and reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business.
In addition to interest income, our net investment income is also driven by prepayment and other fees, which also can vary significantly from quarter to quarter. The level of prepayment fees is generally correlated to the movement in credit spreads and risk premiums, but also will vary based on corporate events that may take place at an individual portfolio company in a given period—e.g., merger and acquisition activity, initial public offerings and restructurings. As noted above, generally a small but varied number of portfolio companies may make prepayments in any quarter, meaning that changes in the amount of prepayment fees received can vary significantly between periods and can vary without regard to underlying credit trends.
Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income using the effective interest method for term instruments and the straight-line method for revolving or delayed draw instruments. Repayments of our debt investments can reduce interest income from period to period. We record prepayment premiums on loans as interest income when earned. We also may generate revenue in the form of commitment, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees. The frequency or volume of these items of revenue may fluctuate significantly.
Dividend income on common equity investments is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.
Our portfolio activity also reflects the proceeds of sales of investments. We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized gains (losses) on investments in the Consolidated Statements of Operations.
Expenses
Our primary operating expenses include the payment of fees to our Adviser under the Investment Advisory Agreement, expenses reimbursable under the Administration Agreement and other operating costs described below. Additionally, we pay interest expense on our outstanding debt. We bear all other costs and expenses of our operations, administration and transactions, including those relating to:
58
We expect that during periods of asset growth, our general and administrative expenses will be relatively stable or will decline as a percentage of total assets, and will increase as a percentage of total assets during periods of asset declines.
Leverage
While as a BDC the amount of leverage that we are permitted to use is limited in significant respects, we use leverage to increase our ability to make investments. The amount of leverage we use in any period depends on a variety of factors, including cash available for investing, the cost of financing and general economic and market conditions, however, under the 1940 Act, our total borrowings are limited so that our asset coverage ratio cannot fall below 150% immediately after any borrowing, as defined in the 1940 Act. In any period, our interest expense will depend largely on the extent of our borrowing and we expect interest expense will increase as we increase leverage over time within the limits of the 1940 Act. In addition, we may dedicate assets as collateral to financing facilities from time to time.
Market Trends
We believe trends in the middle-market lending environment, including the limited availability of capital from traditional regulated financial institutions, strong demand for debt capital and specialized lending requirements, are likely to continue to create favorable opportunities for us to invest at attractive risk-adjusted rates.
Subsequent to the global financial crisis, the implementation of regulatory changes such as Basel III requirements, Leverage Lending Guidance, and the Volcker Rule, tightened risk appetites and reduced the capacity of traditional lenders to serve middle-market companies. We believe that these dynamics have created a significant opportunity for us to directly originate investments. We also believe that the large amount of uninvested capital held by private equity firms will continue to drive deal activity, which may in turn create additional demand for debt capital.
This market dynamic is further exacerbated by the specialized due diligence and underwriting capabilities, as well as extensive ongoing monitoring, required for middle-market lending. We believe middle-market lending is generally more labor-intensive than lending to larger companies due to smaller investment sizes and the lack of publicly available information on these companies. As a result, the opportunities for dedicated private lenders such as us have continued to expand.
59
An imbalance between the supply of, and demand for, middle-market debt capital creates attractive pricing dynamics for investors such as BDCs. The negotiated nature of middle-market financings also generally provides for more favorable terms to the lenders, including stronger covenant and reporting packages, better call protection and lender-protective change of control provisions. We believe that BDCs have flexibility to develop loans that reflect each borrower’s distinct situation, provide long-term relationships and a potential source for future capital, which renders BDCs, including us, attractive lenders.
Portfolio and Investment Activity
As of June 30, 2026, our portfolio based on fair value consisted of 88.3% first-lien debt investments, 0.7% second-lien debt investments, 2.0% mezzanine debt investments, 4.7% equity investments, 2.7% structured credit investments and 1.6% joint venture investments. As of December 31, 2025, our portfolio based on fair value consisted of 89.2% first-lien debt investments, 0.9% second-lien debt investments, 1.8% mezzanine debt investments, 5.2% equity investments and 2.9% structured credit investments.
As of June 30, 2026 and December 31, 2025, our weighted average total yield of debt and income producing securities at fair value (which includes interest income and amortization of fees and discounts) was 11.1% and 11.1%, respectively, and our weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 11.2% and 11.3%, respectively.
As of June 30, 2026, we had investments in 137 portfolio companies (including 33 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment) with an aggregate fair value of $3,302.1 million. As of December 31, 2025, we had investments in 143 portfolio companies (including 36 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment) with an aggregate fair value of $3,347.3 million.
For the three months ended June 30, 2026, the principal amount of new investments funded was $136.7 million in two new portfolio companies and one existing portfolio company. For this period, we had $192.1 million aggregate principal amount in exits and repayments.
For the three months ended June 30, 2025, the principal amount of new investments funded was $208.6 million in thirteen new portfolio companies and four existing portfolio companies. For this period, we had $388.7 million aggregate principal amount in exits and repayments.
Our investment activity for the three months ended June 30, 2026 and 2025 is presented below (information presented herein is at par value unless otherwise indicated).
60
|
|
Three Months Ended |
|
|||||
($ in millions) |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||
New investment commitments: |
|
|
|
|
|
|
||
Gross originations (1) |
|
$ |
821.3 |
|
|
$ |
604.1 |
|
Less: Syndications/sell downs (1) |
|
|
706.7 |
|
|
|
306.4 |
|
Total new investment commitments |
|
$ |
114.6 |
|
|
$ |
297.7 |
|
Principal amount of investments funded: |
|
|
|
|
|
|
||
First-lien |
|
$ |
100.0 |
|
|
$ |
190.1 |
|
Second-lien |
|
|
— |
|
|
|
— |
|
Mezzanine |
|
|
— |
|
|
|
— |
|
Equity |
|
|
— |
|
|
|
2.3 |
|
Structured Credit |
|
|
— |
|
|
|
16.2 |
|
Joint Venture |
|
|
36.7 |
|
|
|
— |
|
Total |
|
$ |
136.7 |
|
|
$ |
208.6 |
|
Principal amount of investments sold or repaid: |
|
|
|
|
|
|
||
First-lien |
|
$ |
175.2 |
|
|
$ |
365.9 |
|
Second-lien |
|
|
8.2 |
|
|
|
3.4 |
|
Mezzanine |
|
|
— |
|
|
|
— |
|
Equity |
|
|
1.4 |
|
|
|
3.2 |
|
Structured Credit |
|
|
7.3 |
|
|
|
16.2 |
|
Joint Venture |
|
|
— |
|
|
|
— |
|
Total |
|
$ |
192.1 |
|
|
$ |
388.7 |
|
Number of new investment commitments in |
|
|
2 |
|
|
|
13 |
|
Average new investment commitment amount in |
|
$ |
50.9 |
|
|
$ |
20.0 |
|
Weighted average term for new investment |
|
|
5.0 |
|
|
|
6.2 |
|
Percentage of new debt investment commitments |
|
|
100.0 |
% |
|
|
99.7 |
% |
Percentage of new debt investment commitments |
|
|
0.0 |
% |
|
|
0.3 |
% |
Weighted average interest rate of new |
|
|
10.4 |
% |
|
|
10.7 |
% |
Weighted average spread over reference rate of new |
|
|
6.9 |
% |
|
|
6.7 |
% |
Weighted average interest rate on investments |
|
|
10.7 |
% |
|
|
12.2 |
% |
(1) Includes affiliates of Sixth Street.
As of June 30, 2026 and December 31, 2025, our investments consisted of the following:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
($ in millions) |
|
Amortized Cost |
|
|
Fair Value |
|
|
Amortized Cost |
|
|
Fair Value |
|
||||
First-lien debt investments |
|
$ |
2,933.3 |
|
|
$ |
2,917.4 |
|
|
$ |
2,934.2 |
|
|
$ |
2,984.4 |
|
Second-lien debt investments |
|
|
24.5 |
|
|
|
23.7 |
|
|
|
69.6 |
|
|
|
30.7 |
|
Mezzanine debt investments |
|
|
63.8 |
|
|
|
64.6 |
|
|
|
61.1 |
|
|
|
61.7 |
|
Equity investments |
|
|
152.2 |
|
|
|
154.8 |
|
|
|
159.8 |
|
|
|
172.6 |
|
Structured credit investments |
|
|
91.2 |
|
|
|
87.8 |
|
|
|
98.6 |
|
|
|
97.9 |
|
Joint venture investments |
|
|
51.4 |
|
|
|
53.8 |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
3,316.4 |
|
|
$ |
3,302.1 |
|
|
$ |
3,323.3 |
|
|
$ |
3,347.3 |
|
61
The following tables show the fair value and amortized cost of our performing and non-accrual investments as of June 30, 2026 and December 31, 2025:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
($ in millions) |
|
Fair Value |
|
|
Percentage |
|
|
Fair Value |
|
|
Percentage |
|
||||
Performing |
|
$ |
3,259.4 |
|
|
|
98.7 |
% |
|
$ |
3,327.3 |
|
|
|
99.4 |
% |
Non-accrual (1) |
|
|
42.7 |
|
|
|
1.3 |
|
|
|
20.0 |
|
|
|
0.6 |
|
Total |
|
$ |
3,302.1 |
|
|
|
100.0 |
% |
|
$ |
3,347.3 |
|
|
|
100.0 |
% |
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
($ in millions) |
|
Amortized Cost |
|
|
Percentage |
|
|
Amortized Cost |
|
|
Percentage |
|
||||
Performing |
|
$ |
3,252.8 |
|
|
|
98.1 |
% |
|
$ |
3,254.5 |
|
|
|
97.9 |
% |
Non-accrual (1) |
|
|
63.6 |
|
|
|
1.9 |
|
|
|
68.8 |
|
|
|
2.1 |
|
Total |
|
$ |
3,316.4 |
|
|
|
100.0 |
% |
|
$ |
3,323.3 |
|
|
|
100.0 |
% |
The weighted average yields and interest rates of our performing debt investments at fair value as of June 30, 2026 and December 31, 2025 were as follows:
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Weighted average total yield of debt and income |
|
|
11.1 |
% |
|
|
11.1 |
% |
Weighted average interest rate of debt and income |
|
|
10.7 |
% |
|
|
10.6 |
% |
Weighted average spread over reference rate of all floating |
|
|
7.0 |
% |
|
|
7.1 |
% |
The Adviser monitors our portfolio companies on an ongoing basis. The Adviser monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Adviser has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:
As part of the monitoring process, the Adviser regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories:
62
The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of June 30, 2026 and December 31, 2025. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors.
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
Investment |
|
Investments at |
|
|
|
|
|
Investments at |
|
|
|
|
||||
Performance |
|
Fair Value |
|
|
Percentage of |
|
|
Fair Value |
|
|
Percentage of |
|
||||
Rating |
|
($ in millions) |
|
|
Total Portfolio |
|
|
($ in millions) |
|
|
Total Portfolio |
|
||||
1 |
|
$ |
2,846.9 |
|
|
|
86.2 |
% |
|
$ |
3,002.3 |
|
|
|
89.7 |
% |
2 |
|
|
349.3 |
|
|
|
10.6 |
|
|
|
296.9 |
|
|
|
8.9 |
|
3 |
|
|
63.2 |
|
|
|
1.9 |
|
|
|
28.0 |
|
|
|
0.8 |
|
4 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
5 |
|
|
42.7 |
|
|
|
1.3 |
|
|
|
20.1 |
|
|
|
0.6 |
|
Total |
|
$ |
3,302.1 |
|
|
|
100.0 |
% |
|
$ |
3,347.3 |
|
|
|
100.0 |
% |
Structured Credit Partners JV, LLC (“SCP”)
On December 23, 2025, affiliates of Sixth Street, including us, and affiliates of Carlyle entered into the Limited Liability Company Agreement, to co-manage SCP, a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt managed by affiliates of Sixth Street or Carlyle on a no-fee basis. SCP is managed by a board of managers, consisting of an equal number of representatives appointed by the Sixth Street-affiliated members of SCP and the Carlyle-affiliated members of SCP and which acts unanimously. Portfolio construction and investment decisions must be unanimously approved by SCP’s investment committee, as delegated by SCP’s board of managers. Our investment in SCP is made with certain of our affiliates in accordance with the terms of the exemptive relief that we received from the SEC. We do not consolidate our non-controlling interest in SCP.
As of June 30, 2026 SCP had total capital commitments of $600.0 million comprised of $200.0 million of capital commitments from Sixth Street Specialty Lending, Inc., $100.0 million of capital commitments from Sixth Street Lending Partners, $150.0 million of capital commitments from Carlyle Secured Lending, Inc., and $150.0 million of capital commitments from Carlyle Credit Solutions, Inc., with all members of SCP having equal voting control.
As of June 30, 2026 SCP had the following contributed capital and unfunded commitments from its members:
63
($ in millions) |
|
June 30, 2026 |
|
|
Total contributed capital by Sixth Street Specialty Lending Inc. |
|
$ |
51.4 |
|
Total contributed capital by Sixth Street Lending Partners |
|
|
25.7 |
|
Total contributed capital by Carlyle |
|
|
77.1 |
|
Total contributed capital |
|
$ |
154.2 |
|
Total unfunded commitments by Sixth Street Specialty Lending Inc. |
|
|
148.6 |
|
Total unfunded commitments by Sixth Street Lending Partners |
|
|
74.3 |
|
Total unfunded commitments by Carlyle |
|
|
222.9 |
|
Total unfunded commitments |
|
$ |
445.8 |
|
For the three and six months ended June 30, 2026 SCP declared $5.1 million and $5.7 million, respectively, in distributions, of which $1.7 million and $1.9 million, respectively, was recognized as dividend income in the Company’s Unaudited Statements of Operations. As of June 30, 2026, the daily weighted average yield on our investment in Structured Credit Partners JV, LLC was 18.7%.
Below is a summary of SCP’s portfolio as of June 30, 2026:
($ in millions) |
|
June 30, 2026 |
|
|
Total investments (1) |
|
$ |
1,681.3 |
|
Weighted average yield on total investments at amortized cost |
|
|
6.75 |
% |
Weighted average yield on total investments at fair value |
|
|
6.77 |
% |
Weighted average spread on investments |
|
|
2.79 |
% |
Number of portfolio companies in SCP |
|
|
428 |
|
Percentage of loans at floating interest rates |
|
|
99.52 |
% |
Results of Operations
Operating results for the three and six months ended June 30, 2026 and 2025 were as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
($ in millions)(1) |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Total investment income |
|
$ |
97.8 |
|
|
$ |
115.0 |
|
|
$ |
191.2 |
|
|
$ |
231.4 |
|
Less: Net expenses |
|
|
55.7 |
|
|
|
62.9 |
|
|
|
108.0 |
|
|
|
119.9 |
|
Net investment income before income taxes |
|
|
42.2 |
|
|
|
52.1 |
|
|
|
83.2 |
|
|
|
111.5 |
|
Less: Income taxes, including excise taxes |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
2.5 |
|
|
|
2.6 |
|
Net investment income |
|
|
40.9 |
|
|
|
50.8 |
|
|
|
80.7 |
|
|
|
108.8 |
|
Net realized gains (losses) (2) |
|
|
0.8 |
|
|
|
(36.9 |
) |
|
|
(38.5 |
) |
|
|
(36.0 |
) |
Net change in unrealized gains (losses) (2) |
|
|
(1.2 |
) |
|
|
45.0 |
|
|
|
(27.7 |
) |
|
|
23.2 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ |
40.5 |
|
|
$ |
59.0 |
|
|
$ |
14.5 |
|
|
$ |
96.0 |
|
Investment Income
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
($ in millions) (1) |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Interest from investments |
|
$ |
85.2 |
|
|
$ |
101.2 |
|
|
$ |
169.0 |
|
|
$ |
207.9 |
|
Paid-in-kind interest income |
|
|
6.7 |
|
|
|
5.8 |
|
|
|
13.7 |
|
|
$ |
11.1 |
|
Dividend income |
|
|
2.0 |
|
|
|
0.4 |
|
|
|
2.4 |
|
|
|
1.3 |
|
Other income |
|
|
4.0 |
|
|
|
7.6 |
|
|
|
6.2 |
|
|
|
11.1 |
|
Total investment income |
|
$ |
97.8 |
|
|
$ |
115.0 |
|
|
$ |
191.2 |
|
|
$ |
231.4 |
|
64
Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $101.2 million for the three months ended June 30, 2025 to $85.2 million for the three months ended June 30, 2026. The decrease in interest from investments was primarily the result of a decrease in reference rates for the three months ended June 30, 2026 compared to the same period in 2025. Paid-in-kind interest income increased from $5.8 million for the three months ended June 30, 2025 to $6.7 million for the three months ended June 30, 2026 due to increased PIK investments. Dividend income increased from $0.4 million for the three months ended June 30, 2025 to $2.0 million for the three months ended June 30, 2026 due to increased dividend yielding investments in 2026. Other income decreased from $7.6 million for the three months ended June 30, 2025 to $4.0 million for the three months ended June 30, 2026, primarily due to decreased miscellaneous fees earned during the three months ended June 30, 2026.
Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $207.9 million for the six months ended June 30, 2025 to $169.0 million for the six months ended June 30, 2026. The decrease in interest from investments was primarily the result of a decrease in reference rates for the six months ended June 30, 2026 compared to the same period in 2025. Paid-in-kind interest income increased from $11.1 million for the six months ended June 30, 2025 to $13.7 million for the six months ended June 30, 2026 due to increased PIK investments. Dividend income increased from $1.3 million for the six months ended June 30, 2025 to $2.4 million for the six months ended June 30, 2026 due to increased dividend yielding investments in 2026. Other income decreased from $11.1 million for the six months ended June 30, 2025 to $6.2 million for the six months ended June 30, 2026, primarily due to decreased miscellaneous fees earned during the six months ended June 30, 2026.
Expenses
Operating expenses for the three and six months ended June 30, 2026 and 2025 were as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
($ in millions)(1) |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Interest |
|
$ |
30.1 |
|
|
$ |
33.6 |
|
|
$ |
58.3 |
|
|
$ |
66.6 |
|
Management fees (net of waivers) |
|
|
12.5 |
|
|
|
12.6 |
|
|
|
24.8 |
|
|
|
25.3 |
|
Incentive fees on net investment income |
|
|
8.7 |
|
|
|
11.1 |
|
|
|
17.1 |
|
|
|
22.6 |
|
Incentive fees on net capital gains |
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
(2.2 |
) |
Professional fees |
|
|
2.4 |
|
|
|
2.6 |
|
|
|
4.2 |
|
|
|
4.5 |
|
Directors’ fees |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.5 |
|
Other general and administrative |
|
|
1.8 |
|
|
|
1.3 |
|
|
|
3.1 |
|
|
|
2.6 |
|
Net Expenses |
|
$ |
55.7 |
|
|
$ |
62.9 |
|
|
$ |
108.0 |
|
|
$ |
119.9 |
|
Interest
Interest expense, including other debt financing expenses, decreased from $33.6 million for the three months ended June 30, 2025 to $30.1 million for the three months ended June 30, 2026. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding, which decreased from 6.3% for the three months ended June 30, 2025 to 5.6% for the three months ended June 30, 2026 due to a change in the mix of our debt financing sources and a change in SOFR rates.
Interest expense, including other debt financing expenses, decreased from $66.6 million for the six months ended June 30, 2025 to $58.3 million for the six months ended June 30, 2026. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding, which decreased from 6.4% for the six months ended June 30, 2025 to 5.5% for the six months ended June 30, 2026 due to a change in the mix of our debt financing sources and a change in SOFR rates.
Management Fees
Management Fees (gross of waivers) increased from $12.9 million for the three months ended June 30, 2025 to $13.0 million for the three months ended June 30, 2026 due to an increase in average assets for the three months ended June 30, 2026 compared to the same period in 2025. Management Fees (net of waivers) decreased from $12.6 million for the three months ended June 30, 2025 to $12.5 million for the three months ended June 30, 2026. Management Fees waived were $0.5 million for the three months ended June 30, 2026 and $0.3 million for the three months ended June 30, 2025, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.
Management Fees (gross of waivers) decreased from $26.0 million for the six months ended June 30, 2025 to $25.6 million for the six months ended June 30, 2026 due to a decrease in average assets for the six months ended June 30, 2026 compared to the same period in 2025. Management Fees (net of waivers) decreased from $25.3 million for the six months ended June 30, 2025 to $24.8 million for the six months ended June 30, 2026. Management Fees waived were $0.8 million for the six months ended June 30, 2026
65
and $0.7 million for the six months ended June 30, 2025, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.
Incentive Fees
Incentive Fees related to pre-incentive net investment income decreased from $11.1 million for the three months ended June 30, 2025 to $8.7 million for the three months ended June 30, 2026. For the three months ended June 30, 2026, there were no Incentive Fees accrued related to Capital Gains Fees. For the three months ended June 30, 2025, $1.4 million of Incentive Fees were accrued related to Capital Gains Fees. As of June 30, 2026, these accrued Incentive Fees are not contractually payable to the Adviser.
Incentive Fees related to pre-incentive net investment income decreased from $22.6 million for the six months ended June 30, 2025 to $17.1 million for the six months ended June 30, 2026. For the six months ended June 30, 2026, there were no Incentive Fees accrued related to Capital Gains Fees. For the six months ended June 30, 2025, $(2.2) million of Incentive Fees were accrued related to Capital Gains Fees. As of June 30, 2026, these accrued Incentive Fees are not contractually payable to the Adviser.
Professional Fees and Other General and Administrative Expenses
Professional fees decreased from $2.6 million for the three months ended June 30, 2025 to $2.4 million for the three months ended June 30, 2026 due to lower audit related, independent third-party valuation firm and sub-agent administration costs. Other general and administrative fees were $1.3 million for the three months ended June 30, 2025 and $1.8 million for the three months ended June 30, 2026.
Professional fees decreased from $4.5 million for the six months ended June 30, 2025 to $4.2 million for the six months ended June 30, 2026 due to lower audit related, independent third-party valuation firm and sub-agent administration costs. Other general and administrative fees were $2.6 million for the six months ended June 30, 2025 and $3.1 million for the six months ended June 30, 2026.
Income Taxes, Including Excise Taxes
We have elected to be treated as a RIC under Subchapter M of the Code, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other things, distribute to our stockholders in each taxable year generally at least 90% of our investment company taxable income, as defined by the Code, and net tax-exempt income for that taxable year. To maintain RIC status, we, among other things, have made and intend to continue to make the requisite distributions to our stockholders, which generally relieve us from corporate-level U.S. federal income taxes.
We evaluate tax positions taken or expected to be taken in the course of preparing our financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.
Depending on the level of taxable income earned in a tax year, we can be expected to carry forward taxable income (including net capital gains, if any) in excess of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such taxable income, as required. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such income, we accrue excise tax on estimated excess taxable income.
For the three and six months ended June 30, 2026, we recorded a net expense of $1.3 million and $2.5 million, respectively, for U.S. federal excise tax and other taxes. For the three and six months ended June 30, 2025 we recorded a net expense of $1.3 million and $2.6 million, respectively, for U.S. federal excise tax and other taxes.
For the three and six months ended June 30, 2026, the Company recorded an increase in our deferred tax liability of $0.7 million pertaining to net unrealized gains. As of June 30, 2026, the balance of our deferred tax liability was $4.7 million.
66
Net Realized and Unrealized Gains and Losses
The following table summarizes our net realized and unrealized gains (losses) for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
($ in millions)(1) |
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Net realized gains (losses) on investments |
|
$ |
0.8 |
|
|
$ |
(36.8 |
) |
|
$ |
(38.5 |
) |
|
$ |
(35.7 |
) |
Net realized gains (losses) on foreign currency transactions (2)(3) |
|
(0.0) |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
Net realized gains (losses) on foreign currency investments (3) |
|
|
0.0 |
|
|
0.8 |
|
|
|
0.0 |
|
|
|
0.8 |
|
|
Net realized gains (losses) on foreign currency borrowings (3) |
|
0.0 |
|
|
|
(1.0 |
) |
|
0.0 |
|
|
|
(1.0 |
) |
||
Net Realized Gains (Losses) |
|
$ |
0.8 |
|
|
$ |
(36.9 |
) |
|
$ |
(38.5 |
) |
|
$ |
(36.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in unrealized gains on investments |
|
$ |
24.4 |
|
|
$ |
94.6 |
|
|
$ |
65.9 |
|
|
$ |
104.9 |
|
Change in unrealized (losses) on investments |
|
|
(27.7 |
) |
|
|
(23.8 |
) |
|
|
(104.2 |
) |
|
|
(44.9 |
) |
Net Change in Unrealized Gains (Losses) on |
|
$ |
(3.4 |
) |
|
$ |
70.8 |
|
|
$ |
(38.3 |
) |
|
$ |
60.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gains (losses) on foreign currency borrowings |
|
|
2.9 |
|
|
|
(25.8 |
) |
|
|
11.3 |
|
|
|
(36.8 |
) |
Unrealized gains (losses) on foreign currency transactions (2)(3) |
|
0.0 |
|
|
|
0.0 |
|
|
|
0.1 |
|
|
(0.0) |
|
||
Income tax provision on unrealized gains (losses) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
|
|
— |
|
Net Change in Unrealized Gains (Losses) on Foreign |
|
$ |
2.2 |
|
|
$ |
(25.8 |
) |
|
$ |
10.6 |
|
|
$ |
(36.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Change in Unrealized Gains (Losses) |
|
$ |
(1.2 |
) |
|
$ |
45.0 |
|
|
$ |
(27.7 |
) |
|
$ |
23.2 |
|
For the three and six months ended June 30, 2026, we had net realized gains on investments of $0.8 million and net realized losses on investments of $38.5 million, respectively. For the three and six months ended June 30, 2026, we had net realized losses of less than $0.1 million and $0.1 million, respectively, on foreign currency transactions, primarily as a result of translating foreign currency related to our non-USD denominated investments. For both the three and six months ended June 30, 2026, we had net realized gains on foreign currency investments of less than $0.1 million. For both the three and six months ended June 30, 2026, we had net realized gains on foreign currency borrowings of less than $0.1 million. The net realized gains on foreign currency borrowings were a result of payments on our revolving credit facility.
For the three months ended June 30, 2026, we had $24.4 million in unrealized gains on 68 portfolio company investments, which was offset by $27.7 million in unrealized losses on 73 portfolio company investments. Unrealized gains for the three months ended June 30, 2026 resulted from positive portfolio company specific developments and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the three months ended June 30, 2026 resulted from negative credit-related adjustments, widening credit spreads, and the reversal of prior period unrealized gains due to realizations. For the six months ended June 30, 2026, we had $65.9 million in unrealized gains on 27 portfolio company investments, which was offset by $104.2 million in unrealized losses on 120 portfolio company investments. Unrealized gains for the six months ended June 30, 2026 resulted from positive portfolio company specific developments and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the six months ended June 30, 2026 resulted from negative credit-related adjustments, widening credit spreads, and the reversal of prior period unrealized gains due to realizations.
For the three and six months ended June 30, 2026, we had unrealized gains of $2.9 million and $11.3 million, respectively, on foreign currency borrowings, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the three and six months ended June 30, 2026, we had unrealized gains of less than $0.1 million and $0.1 million, respectively, on foreign currency transactions. For both the three and six months ended June 30, 2026, we had unrealized losses of $0.7 million, related to a deferred tax liability.
For the three and six months ended June 30, 2025, we had net realized losses on investments of $36.8 million and $35.7 million, respectively. For the three and six months ended June 30, 2025, we had net realized gains of $0.1 million and net realized losses of $0.1 million, respectively, on foreign currency transactions, primarily as a result of translating foreign currency related to our non-USD denominated investments. For the three and six months ended June 30, 2025, we had net realized gains on foreign currency
67
investments of $0.8 million and $0.8 million, respectively. For the three and six months ended June 30, 2025, we had net realized losses on foreign currency borrowings of $1.0 million and $1.0 million, respectively. The net realized losses on foreign currency borrowings were a result of payments on our revolving credit facility.
For the three months ended June 30, 2025, we had $94.6 million in unrealized gains on 77 portfolio company investments, which was offset by $23.8 million in unrealized losses on 40 portfolio company investments. Unrealized gains for the three months ended June 30, 2025 resulted from positive portfolio company specific developments, tightening credit spreads, and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the three months ended June 30, 2025 resulted from negative credit-related adjustments and the reversal of prior period unrealized gains due to realizations. For the six months ended June 30, 2025, we had $104.9 million in unrealized gains on 67 portfolio company investments, which was offset by $44.9 million in unrealized losses on 57 portfolio company investments. Unrealized gains for the six months ended June 30, 2025 resulted from positive portfolio company specific developments, tightening credit spreads, and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the six months ended June 30, 2025 resulted from negative credit-related adjustments and the reversal of prior period unrealized gains due to realizations.
For the three and six months ended June 30, 2025 we had unrealized losses on foreign currency borrowings of $25.8 million and $36.8 million, respectively, on foreign currency borrowings, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the three and six months ended June 30, 2025, we had unrealized gains of less than $0.1 million and unrealized losses of less than $0.1 million, respectively, on foreign currency transactions.
Realized Gross Internal Rate of Return
Since we began investing in 2011 through June 30, 2026, weighted by capital invested, our exited investments have generated an average realized gross internal rate of return to us of 16.7% (based on total capital invested of $9.5 billion and total proceeds from these exited investments of $12.2 billion). Ninety-four percent of these exited investments resulted in a realized gross internal rate of return to us of 10% or greater.
Gross IRR, with respect to an investment, is calculated based on the dates that we invested capital and dates we received distributions, regardless of when we made distributions to our stockholders. Initial investments are assumed to occur at time zero, and all cash flows are deemed to occur on the fifteenth of each month in which they occur.
Gross IRR reflects historical results relating to our past performance and is not necessarily indicative of our future results. In addition, gross IRR does not reflect the effect of Management Fees, expenses, Incentive Fees or taxes borne, or to be borne, by us or our stockholders, and would be lower if it did.
Average gross IRR is the average of the gross IRR for each of our exited investments (each calculated as described above), weighted by the total capital invested for each of those investments.
Average gross IRR on our exited investments reflects only invested and realized cash amounts as described above, and does not reflect any unrealized gains or losses in our portfolio.
Internal rate of return, or IRR, is a measure of our discounted cash flows (inflows and outflows). Specifically, IRR is the discount rate at which the net present value of all cash flows is equal to zero. That is, IRR is the discount rate at which the present value of total capital invested in each of our investments is equal to the present value of all realized returns from that investment. Our IRR calculations are unaudited.
Capital invested, with respect to an investment, represents the aggregate cost basis allocable to the realized or unrealized portion of the investment, net of any upfront fees paid at closing for the term loan portion of the investment. Capital invested also includes realized losses on hedging activity, with respect to an investment, which represents any inception-to-date realized losses on foreign currency forward contracts allocable to the investment, if any.
Realized returns, with respect to an investment, represents the total cash received with respect to each investment, including all amortization payments, interest, dividends, prepayment fees, upfront fees, administrative fees, agent fees, amendment fees, accrued interest, and other fees and proceeds. Realized returns also include realized gains on hedging activity, with respect to an investment, which represents any inception-to-date realized gains on foreign currency forward contracts allocable to the investment, if any.
Interest Rate and Foreign Currency Hedging
We use interest rate swaps to hedge our fixed rate debt and certain fixed rate investments. We have designated certain interest rate swaps to be in a hedge accounting relationship. See Note 2 for additional disclosure regarding our accounting for derivative
68
instruments designated in a hedge accounting relationship. See Note 5 for additional disclosure regarding these derivative instruments and the interest payments paid and received. See Note 7 for additional disclosure regarding the carrying value of our debt.
Our current approach to hedging the foreign currency exposure in our non-U.S. dollar denominated investments is primarily to borrow the par amount in local currency under our Revolving Credit Facility to fund these investments. For the six months ended June 30, 2026 and 2025, we had $11.3 million of unrealized gains and $36.8 million of unrealized losses, respectively, on the translation of our non-U.S. dollar denominated debt into U.S. dollars; such amounts approximate the corresponding unrealized gains and losses on the translation of our non-U.S. dollar denominated investments into U.S. dollars for the six months ended June 30, 2026 and 2025. See Note 2 for additional disclosure regarding our accounting for foreign currency. See Note 7 for additional disclosure regarding the amounts of outstanding debt denominated in each foreign currency at June 30, 2026. See our Consolidated Schedule of Investments for additional disclosure regarding the foreign currency amounts (in both par and fair value) of our non-U.S. dollar denominated investments.
Financial Condition, Liquidity and Capital Resources
Our liquidity and capital resources are derived primarily from proceeds from equity issuances, advances from our credit facilities, and cash flows from operations. The primary uses of our cash and cash equivalents are:
We intend to continue to generate cash primarily from cash flows from operations, future borrowings and future offerings of securities. We may from time to time enter into additional debt facilities, increase the size of existing facilities or issue debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock if immediately after the borrowing or issuance our ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 150%. For more information, see “Key Components of Our Results of Operations — Leverage” above. As of June 30, 2026 and December 31, 2025, our asset coverage ratio was 179.1% and 191.5%, respectively. We carefully consider our unfunded commitments for the purpose of planning our capital resources and ongoing liquidity, including our financial leverage. Further, we maintain sufficient borrowing capacity within the 150% asset coverage limitation under the 1940 Act and the asset coverage limitation under our credit facilities to cover any outstanding unfunded commitments we are required to fund.
Cash and cash equivalents as of June 30, 2026, taken together with cash available under our credit facilities, is expected to be sufficient for our investing activities and to conduct our operations in the near term. As of June 30, 2026, we had approximately $1.1 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.
As of June 30, 2026, we had $193.6 million in cash and cash equivalents, including $40.1 million of restricted cash. During the six months ended June 30, 2026, cash provided by operating activities was $45.0 million, primarily attributable to repayments and proceeds from investments of $335.5 million, an increase in net assets resulting from operations of $14.5 million and cash provided by other operating activities of $42.8 million which was partially offset by funding portfolio investments of $347.8 million. Cash provided by financing activities was $128.9 million during the period due to borrowings of $651.9 million which was partially offset by paydowns on our Revolving Credit Facility of $441.3 million, dividends paid of $73.2 million, deferred financing costs of $8.0 million and repurchases of common stock of $0.5 million.
As of June 30, 2025, we had $39.2 million in cash and cash equivalents, including $35.3 million of restricted cash. During the six months ended June 30, 2025, cash provided by operating activities was $343.1 million, primarily attributable to repayments and proceeds from investments of $733.2 million and an increase in net assets resulting from operations of $96.0 million, which was partially offset by cash used in other operating activities of $26.6 million and funding portfolio investments of $459.5 million. Cash used in financing activities was $331.3 million during the period due to paydowns on our Revolving Credit Facility of $977.8 million, dividends paid of $85.9 million and deferred financing costs of $7.3 million, which was partially offset by borrowings of $739.7 million.
69
Equity
We are a party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that we may from time to time issue and sell, by means of “at the market” offerings, up to $100 million of the Company's common stock. Under the currently effective Equity Distribution Agreements, common stock with an aggregate offering amount of $100 million remained available for issuance as of June 30, 2026.
During the six months ended June 30, 2026 and 2025, we issued 668,927 and 578,912 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $11.3 million and $12.7 million, respectively.
On August 4, 2015, our Board authorized us to acquire up to $50 million in aggregate of our common stock from time to time over an initial six month period, and has continued to authorize the refreshment of the $50 million amount authorized under and extension of the stock repurchase program prior to its expiration since that time, most recently as of May 5, 2026 (expiring November 30, 2026). Under the program, we may repurchase up to $50 million in the aggregate of our outstanding common stock in the open market, from time to time, at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The amount and timing of stock repurchases under the program may vary depending on market conditions, and no assurance can be given that any particular amount of common stock will be repurchased.
During the three and six months ended June 30, 2026, we repurchased 30,938 shares at a weighted average price per share of $16.17 inclusive of commissions, for a total cost of $0.5 million. During the three and six months ended June 30, 2025, no shares were repurchased.
Debt
Revolving Credit Facility
On August 23, 2012, we entered into a senior secured revolving credit agreement with Truist Bank (as a successor by merger to SunTrust Bank), as administrative agent, and J.P. Morgan Chase Bank, N.A., as syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).
As of June 30, 2026, aggregate commitments under the Revolving Credit Facility were $1.525 billion. The Revolving Credit Facility includes an uncommitted accordion feature that allows us, under certain circumstances, to increase the size of the Revolving Credit Facility to up to $2.5 billion.
Pursuant to the Seventeenth Amendment dated May 1, 2026, with respect to $1.525 billion of commitments, the revolving period, during which period we, subject to certain conditions, may make borrowings under the Revolving Credit Facility, was extended to May 1, 2030 and the stated maturity date was extended to May 1, 2031.
We may borrow amounts in U.S. dollars or certain other permitted currencies. As of June 30, 2026, we had outstanding debt denominated in Australian dollars (AUD) of 3.0 million, British pounds (GBP) of 49.3 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 290.0 million and Euro (EUR) of 275.5 million on our Revolving Credit Facility, included in the Outstanding Principal amount in the table below. As of December 31, 2025, we had outstanding debt denominated in Australian dollars (AUD) of 3.0 million, British pounds (GBP) of 48.5 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 218.0 million and Euro (EUR) of 245.9 million on our Revolving Credit Facility, included in the Outstanding Principal amount in the table below.
The Revolving Credit Facility also provides for the issuance of letters of credit up to an aggregate amount of $75 million. As of June 30, 2026 and December 31, 2025, we had $22.8 million and $21.7 million, respectively, in outstanding letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit issued through the Revolving Credit Facility.
For the $1.525 billion of commitments, amounts drawn under the Revolving Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either the applicable reference rate plus an applicable credit spread adjustment, plus a margin of either 1.525%, 1.65% or 1.775%, or the base rate plus a margin of either 0.525%, 0.65% or 0.775%, in each case, based on the total amount of the borrowing base relative to the sum of the total commitments (or, if greater, the total exposure) under the Revolving Credit Facility plus certain other designated secured debt. For the remaining $150.0 million of commitments, amounts drawn under the Revolving Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either the applicable reference rate plus an applicable credit spread adjustment, plus a margin of either 1.75% or 1.875% or the base rate plus a margin of either 0.75% or 0.875%, in each case, based on the total amount of the borrowing base relative to the sum of the total commitments (or, if greater, the total exposure) under the Revolving Credit Facility plus certain other designated secured debt. We may elect either the applicable
70
reference rate or base rate at the time of drawdown, and loans may be converted from one rate to another at any time, subject to certain conditions. We also pay a fee of 0.325% on undrawn amounts and, in respect of each undrawn letter of credit, a fee and interest rate equal to the then applicable margin while the letter of credit is outstanding.
The Revolving Credit Facility is guaranteed by Sixth Street SL SPV, LLC, TC Lending, LLC and Sixth Street SL Holding, LLC. The Revolving Credit Facility is secured by a perfected first-priority security interest in substantially all the portfolio investments held by us and each guarantor. Proceeds from borrowings may be used for general corporate purposes, including the funding of portfolio investments.
The Revolving Credit Facility includes customary events of default, as well as customary covenants, including restrictions on certain distributions and financial covenants. In accordance with the terms of the Sixteenth Amendment, the financial covenants require:
and
The Revolving Credit Facility also contains certain additional concentration limits in connection with the calculation of the borrowing base, based on the Obligor Asset Coverage Ratio.
As of June 30, 2026 and December 31, 2025, we were in compliance with the terms of the Revolving Credit Facility.
2026 Notes
In February 2021, we issued $
In connection with the issuance of the 2026 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap was $300.0 million, which matured on August 1, 2026, matching the maturity date of the 2026 Notes. As a result of the swap, our effective interest rate on the 2026 Notes was SOFR plus 2.17%. The interest expense related to the 2026 Notes was offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of June 30, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $(1.1) million and $(5.8) million, respectively, which was offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2026 Notes.
2028 Notes
In August 2023, we issued $
In connection with the issuance of the 2028 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 14, 2028, matching the maturity date of the 2028 Notes. As a result of the swap, our effective interest rate on the 2028 Notes is SOFR plus 2.99%. The interest expense related to the 2028 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of June 30, 2026 and December 31, 2025, the effective hedge interest rate
71
swaps had a fair value of $(0.4) million and $4.5 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2028 Notes.
2029 Notes
In January 2024, we issued $
In connection with the issuance of the 2029 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $350.0 million, which matures on March 1, 2029, matching the maturity date of the 2029 Notes. As a result of the swap, our effective interest rate on the 2029 Notes is SOFR plus 2.44%. The interest expense related to the 2029 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of June 30, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $(2.6) million and $3.3 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2029 Notes.
2030 Notes
In February 2025, we issued $
In connection with the issuance of the 2030 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 15, 2030, matching the maturity date of the 2030 Notes. As a result of the swap, our effective interest rate on the 2030 Notes is SOFR plus 1.53%. The interest expense related to the 2030 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of June 30, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $2.0 million and $8.3 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2030 Notes.
2031 Notes
In May 2026, we issued $
In connection with the issuance of the 2031 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 15, 2031, matching the maturity date of the 2031 Notes. As a result of the swap, our effective interest rate on the 2031 Notes is SOFR plus 1.85%. The interest expense related to the 2031 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of June 30, 2026, the effective hedge interest rate swaps had a fair value of $(1.7) million, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2031 Notes.
72
Debt obligations consisted of the following as of June 30, 2026 and December 31, 2025:
|
|
June 30, 2026 |
|
|||||||||||||
|
|
Aggregate Principal |
|
|
Outstanding |
|
|
Amount |
|
|
Carrying |
|
||||
($ in millions) |
|
Amount Committed |
|
|
Principal |
|
|
Available (1) |
|
|
Value (2)(3) |
|
||||
Revolving Credit Facility |
|
$ |
1,525.0 |
|
|
$ |
416.0 |
|
|
$ |
1,086.2 |
|
|
$ |
398.8 |
|
2026 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
298.8 |
|
|
2028 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
296.9 |
|
|
2029 Notes |
|
|
350.0 |
|
|
|
350.0 |
|
|
— |
|
|
|
342.9 |
|
|
2030 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
296.1 |
|
|
2031 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
291.5 |
|
|
Total Debt |
|
$ |
3,075.0 |
|
|
$ |
1,966.0 |
|
|
$ |
1,086.2 |
|
|
$ |
1,925.0 |
|
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Aggregate Principal |
|
|
Outstanding |
|
|
Amount |
|
|
Carrying |
|
||||
($ in millions) |
|
Amount Committed |
|
|
Principal |
|
|
Available (1) |
|
|
Value (2)(3) |
|
||||
Revolving Credit Facility |
|
$ |
1,675.0 |
|
|
$ |
513.9 |
|
|
$ |
1,139.3 |
|
|
$ |
498.8 |
|
2026 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
293.5 |
|
|
2028 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
301.2 |
|
|
2029 Notes |
|
|
350.0 |
|
|
|
350.0 |
|
|
— |
|
|
|
348.0 |
|
|
2030 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
— |
|
|
|
301.7 |
|
|
Total Debt |
|
$ |
2,925.0 |
|
|
$ |
1,763.9 |
|
|
$ |
1,139.3 |
|
|
$ |
1,743.2 |
|
As of June 30, 2026 and December 31, 2025, we were in compliance with the terms of our debt arrangements. We intend to continue to utilize our credit facilities to fund investments and for other general corporate purposes.
Off-Balance Sheet Arrangements
Portfolio Company Commitments
From time to time, we may enter into commitments to fund investments. We incorporate these commitments into our assessment of our liquidity position. Our senior secured revolving loan commitments are generally available on a borrower’s demand and may remain outstanding until the maturity date of the applicable loan. Our senior secured delayed draw term loan commitments are generally available on a borrower’s demand and, once drawn, generally have the same remaining term as the associated loan agreement. Undrawn senior secured delayed draw term loan commitments generally have a shorter availability period than the term of the associated loan agreement. As of June 30, 2026 and December 31, 2025, we had the following commitments to fund investments in current portfolio companies:
73
($ in millions) |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Alaska Bidco Oy - Delayed Draw & Revolver (3) |
|
$ |
0.0 |
|
|
$ |
0.2 |
|
Aledade, Inc. - Revolver |
|
|
18.6 |
|
|
|
24.1 |
|
American Achievement, Corp. - Revolver |
|
|
2.4 |
|
|
|
2.4 |
|
Arcwood Environmental, Inc. - Revolver |
|
|
— |
|
|
|
1.8 |
|
Arrowhead Pharmaceuticals, Inc. - Delayed Draw |
|
|
25.6 |
|
|
|
27.7 |
|
Artisan Bidco, Inc. - Revolver |
|
|
1.0 |
|
|
|
1.4 |
|
AVSC Holding Corp. - Revolver |
|
|
4.3 |
|
|
|
4.8 |
|
Azurite Intermediate Holdings, Inc. - Revolver & Equity |
|
|
5.6 |
|
|
|
5.6 |
|
Bayshore Intermediate #2, L.P. - Revolver |
|
|
1.9 |
|
|
|
2.7 |
|
BCTO Ace Purchaser, Inc. - Delayed Draw & Revolver |
|
|
1.8 |
|
|
|
0.3 |
|
Cirrus (Bidco) Ltd - Delayed Draw |
|
|
0.4 |
|
|
|
0.4 |
|
Cordance Operations, LLC - Delayed Draw & Revolver |
|
|
1.9 |
|
|
|
2.6 |
|
Coupa Holdings, LLC - Delayed Draw & Revolver |
|
|
1.0 |
|
|
|
6.8 |
|
Crewline Buyer, Inc. - Revolver & Equity |
|
|
6.1 |
|
|
|
6.1 |
|
EDB Parent, LLC - Delayed Draw |
|
|
1.6 |
|
|
|
5.6 |
|
Elysian Finco Ltd. - Revolver |
|
|
0.4 |
|
|
|
0.8 |
|
EMS Linq, Inc. - Revolver |
|
|
4.0 |
|
|
|
5.9 |
|
Erling Lux Bidco SARL - Delayed Draw & Revolver |
|
|
5.4 |
|
|
|
6.1 |
|
Eventus Buyer, LLC - Delayed Draw & Revolver |
|
|
9.8 |
|
|
|
8.6 |
|
ExtraHop Networks, Inc. - Revolver |
|
|
— |
|
|
|
0.4 |
|
Flight Intermediate HoldCo, Inc. - Delayed Draw |
|
|
29.7 |
|
|
|
32.1 |
|
Galileo Parent, Inc. - Revolver |
|
|
— |
|
|
|
3.5 |
|
Greenshoot Bidco B.V. - Revolver |
|
|
0.4 |
|
|
|
0.5 |
|
Hippo XPA Bidco AB - Delayed Draw & Revolver |
|
|
14.9 |
|
|
|
9.4 |
|
Hirevue, Inc. - Delayed Draw |
|
|
5.8 |
|
|
|
— |
|
HMP Omnimedia, LLC - Delayed Draw & Revolver |
|
|
10.2 |
|
|
|
9.8 |
|
Ingenovis Health Finance, LLC - Revolver |
|
|
32.5 |
|
|
|
32.5 |
|
IRGSE Holding Corp. - Revolver |
|
|
0.9 |
|
|
|
5.7 |
|
Kahua, Inc. - Delayed Draw |
|
|
— |
|
|
|
5.0 |
|
Kangaroo Bidco AS - Delayed Draw |
|
|
4.4 |
|
|
|
4.4 |
|
Kaseware Intermediate Holding Company - Delayed Draw & Revolver |
|
|
2.6 |
|
|
|
6.8 |
|
Kryptona BidCo US, LLC - Revolver |
|
|
2.2 |
|
|
|
2.2 |
|
LeanTaaS Holdings, Inc. - Delayed Draw |
|
|
11.0 |
|
|
|
12.0 |
|
Leg Purchaser Inc. - Revolver |
|
|
2.3 |
|
|
|
— |
|
LIHA Holdco B.V. - Delayed Draw & Revolver |
|
|
0.2 |
|
|
|
0.8 |
|
Lynx BidCo - Delayed Draw & Revolver |
|
|
2.1 |
|
|
|
6.7 |
|
Marcura Equities LTD - Revolver |
|
|
1.7 |
|
|
|
1.7 |
|
MindBody, Inc. - Revolver |
|
|
3.6 |
|
|
|
— |
|
Omnigo Software, LLC - Delayed Draw & Revolver |
|
|
1.9 |
|
|
|
1.9 |
|
PDI TA Holdings, Inc. - Revolver |
|
|
— |
|
|
|
0.4 |
|
Rail Acquisitions LLC - Delayed Draw & Revolver |
|
|
5.7 |
|
|
|
5.7 |
|
RainFocus, LLC - Delayed Draw |
|
|
2.8 |
|
|
|
5.3 |
|
Rapid Data GmbH Unternehmensberatung - Delayed Draw & Revolver |
|
|
1.2 |
|
|
|
1.2 |
|
Raptor US Buyer II Corp. - Revolver |
|
|
0.6 |
|
|
|
0.6 |
|
Sapphire Software Buyer, Inc. - Revolver |
|
|
3.2 |
|
|
|
3.3 |
|
Scorpio Bidco - Delayed Draw |
|
|
0.6 |
|
|
|
0.6 |
|
Sediver S.p.A. - Delayed Draw |
|
|
4.0 |
|
|
|
4.1 |
|
Severin Acquisition, LLC - Delayed Draw & Revolver |
|
|
3.3 |
|
|
|
4.4 |
|
Shiftmove GmbH - Delayed Draw |
|
|
9.9 |
|
|
|
10.2 |
|
SMA Technologies Holdings, LLC - Revolver |
|
|
1.0 |
|
|
|
1.0 |
|
Sport Alliance GmbH - Revolver |
|
|
0.5 |
|
|
|
0.5 |
|
Structured Credit Partners JV, LLC - Equity |
|
|
148.6 |
|
|
|
— |
|
Tango Management Consulting, LLC - Delayed Draw & Revolver |
|
|
20.5 |
|
|
|
23.8 |
|
74
TRP Assets, LLC - Delayed Draw |
|
|
— |
|
|
|
10.2 |
|
TS Imagine Inc. - Revolver |
|
|
— |
|
|
|
0.8 |
|
USA Debusk LLC - Delayed Draw & Revolver |
|
|
0.4 |
|
|
|
2.5 |
|
Varinem German Bidco GmbH - Delayed Draw |
|
|
3.8 |
|
|
|
4.9 |
|
Velocity Clinical Research, Inc. - Delayed Draw & Revolver |
|
|
7.1 |
|
|
|
8.8 |
|
Wrangler Topco, LLC - Delayed Draw & Revolver |
|
|
0.6 |
|
|
|
0.9 |
|
Total Portfolio Company Commitments (1)(2) |
|
$ |
432.0 |
|
|
$ |
338.5 |
|
Other Commitments and Contingencies
As of June 30, 2026 and December 31, 2025, we did not have any unfunded commitments to fund investments to new borrowers that were not current portfolio companies as of such date.
From time to time, we may become a party to certain legal proceedings incidental to the normal course of our business. As of June 30, 2026, management is not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.
We have certain contracts under which we have material future commitments. Under the Investment Advisory Agreement, our Adviser provides us with investment advisory and management services. For these services, we pay the Management Fee and the Incentive Fee.
Under the Administration Agreement, our Adviser furnishes us with office facilities and equipment, provides us clerical, bookkeeping and record keeping services at such facilities and provides us with other administrative services necessary to conduct our day-to-day operations. We reimburse our Adviser for the allocable portion (subject to the review and approval of our Board) of expenses incurred by it in performing its obligations under the Administration Agreement, the fees and expenses associated with performing compliance functions and our allocable portion of the compensation of our Chief Compliance Officer, Chief Financial Officer and other professionals who spend time on those related activities (based on a percentage of time those individuals devote, on an estimated basis, to our business and affairs). Our Adviser also offers on our behalf significant managerial assistance to those portfolio companies to which we are required to offer to provide such assistance.
Contractual Obligations
A summary of our contractual payment obligations as of June 30, 2026 is as follows:
|
|
Payments Due by Period |
|
|||||||||||||||||
|
|
|
|
|
Less than |
|
|
|
|
|
|
|
|
|
|
|||||
($ in millions) |
|
Total |
|
|
1 year |
|
|
1-3 years |
|
|
3-5 years |
|
|
After 5 years |
|
|||||
Revolving Credit Facility |
|
$ |
416.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
416.0 |
|
|
$ |
— |
|
2026 Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
2028 Notes |
|
|
300.0 |
|
|
|
— |
|
|
|
300.0 |
|
|
|
— |
|
|
|
— |
|
2029 Notes |
|
|
350.0 |
|
|
|
— |
|
|
|
350.0 |
|
|
|
— |
|
|
|
— |
|
2030 Notes |
|
|
300.0 |
|
|
|
— |
|
|
|
— |
|
|
|
300.0 |
|
|
|
— |
|
2031 Notes |
|
|
300.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
300.0 |
|
Total Contractual Obligations |
|
$ |
1,966.0 |
|
|
$ |
300.0 |
|
|
$ |
650.0 |
|
|
$ |
716.0 |
|
|
$ |
300.0 |
|
In addition to the contractual payment obligations in the tables above, we also have commitments to fund investments and to pledge assets as collateral under the terms of our derivatives agreements.
75
Distributions
We have elected and qualified to be treated for U.S. federal income tax purposes as a RIC under subchapter M of the Code. To maintain RIC status, we must distribute (or be treated as distributing) in each taxable year dividends for tax purposes equal to at least 90 percent of the sum of our:
As a RIC, we (but not our stockholders) generally will not be subject to U.S. federal income tax on investment company taxable income and net capital gains that we distribute to our stockholders.
We intend to distribute annually all or substantially all of such income. To the extent that we retain our net capital gains or any investment company taxable income, we generally will be subject to corporate-level U.S. federal income tax. We may choose to retain our net capital gains or any investment company taxable income, and pay the U.S. federal excise tax described below.
Amounts not distributed on a timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% U.S. federal excise tax payable by us. To avoid this tax, we must distribute (or be treated as distributing) during each calendar year an amount at least equal to the sum of:
While we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise tax, sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of this tax. In that event, we will be liable for this tax only on the amount by which we do not meet the foregoing distribution requirement.
We intend to pay quarterly dividends to our stockholders out of assets legally available for distribution. All dividends will be paid at the discretion of our Board and will depend on our earnings, financial condition, maintenance of RIC status, compliance with applicable BDC regulations and such other factors as our Board may deem relevant from time to time.
To the extent our current taxable earnings for a year fall below the total amount of our distributions for that year, a portion of those distributions may be deemed a return of capital to our stockholders for U.S. federal income tax purposes. Thus, the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our income or gains. Stockholders should read any written disclosure carefully and should not assume that the source of any distribution is our ordinary income or gains.
We have adopted an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a cash dividend or other distribution, each stockholder that has not “opted out” of our dividend reinvestment plan will have their dividends or distributions automatically reinvested in additional shares of our common stock rather than receiving cash dividends. Stockholders who receive distributions in the form of shares of common stock will be subject to the same U.S. federal, state and local tax consequences as if they received cash distributions.
Related-Party Transactions
We have entered into a number of business relationships with affiliated or related parties, including the following:
76
Critical Accounting Estimates
Our critical accounting policies and estimates, including those relating to the valuation of our investment portfolio, are described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 12, 2026, and elsewhere in our filings with the SEC. The critical accounting policies and estimates should be read in connection with our risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are subject to financial market risks, including valuation risk, interest rate risk and currency risk.
Valuation Risk
We have invested, and plan to continue to invest, primarily in illiquid debt and equity securities of private companies. Most of our investments will not have a readily available market price, and we value these investments at fair value as determined in good faith by our Board in accordance with our valuation policy. There is no single standard for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material.
Interest Rate Risk
Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund portions of our investments with borrowings. Our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, we cannot assure you that a significant change in market interest rates will not have a material adverse effect on our net investment income.
We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.
As of June 30, 2026, 96.1% of our debt investments based on fair value in our portfolio bore interest at floating rates, with 100.0% of these subject to interest rate floors. Our credit facilities also bear interest at floating rates, and in connection with our 2026 Notes, 2028 Notes, 2029 Notes, 2030 Notes and 2031 Notes, which bear interest at fixed rates, we entered into fixed-to-floating interest rate swaps in order to align the interest rates of our liabilities with our investment portfolio.
Assuming that our Consolidated Balance Sheet as of June 30, 2026 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments):
($ in millions) |
|
|
|
|
|
|
|
|
|
|||
Basis Point Change |
|
Interest Income |
|
|
Interest Expense |
|
|
Net Interest Income |
|
|||
Up 300 basis points |
|
$ |
89.7 |
|
|
$ |
59.0 |
|
|
$ |
30.7 |
|
Up 200 basis points |
|
$ |
59.8 |
|
|
$ |
39.3 |
|
|
$ |
20.5 |
|
Up 100 basis points |
|
$ |
29.9 |
|
|
$ |
19.7 |
|
|
$ |
10.2 |
|
Down 25 basis points |
|
$ |
(7.5 |
) |
|
$ |
(4.9 |
) |
|
$ |
(2.6 |
) |
Down 50 basis points |
|
$ |
(14.9 |
) |
|
$ |
(9.8 |
) |
|
$ |
(5.1 |
) |
Down 75 basis points |
|
$ |
(22.4 |
) |
|
$ |
(14.7 |
) |
|
$ |
(7.7 |
) |
Down 100 basis points |
|
$ |
(29.9 |
) |
|
$ |
(19.7 |
) |
|
$ |
(10.2 |
) |
Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above.
We may in the future hedge against interest rate fluctuations by using hedging instruments such as additional interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of changes in interest rates with respect to our portfolio investments.
77
Currency Risk
From time to time, we may make investments that are denominated in a foreign currency. These investments are translated into U.S. dollars at each balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates. We also have the ability to borrow in certain foreign currencies under our Revolving Credit Facility. Instead of entering into a foreign exchange forward contract in connection with loans or other investments we have made that are denominated in a foreign currency, we may borrow in that currency to establish a natural hedge against our loan or investment. To the extent the loan or investment is based on a floating rate other than a rate under which we can borrow under our Revolving Credit Facility, we may seek to utilize interest rate derivatives to hedge our exposure to changes in the associated rate.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them to material information relating to us that is required to be disclosed by us in the reports we file or submit under the Exchange Act.
Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
78
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information regarding shares of our common stock repurchased in the open market by the Company for each month in the three month period ended June 30, 2026.
ISSUER PURCHASES OF EQUITY SECURITIES
|
|
|||||||||||||||
Period |
|
Total Number of |
|
|
Average Price |
|
|
Total Number of |
|
|
Maximum Number (or |
|
||||
April 1-April 30, 2026 |
|
— |
|
|
$ |
— |
|
|
— |
|
|
$ |
— |
|
||
May 1-May 31, 2026 |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|||
June 1-June 30, 2026 |
|
|
30,938 |
|
|
|
16.17 |
|
|
|
30,938 |
|
|
|
49,500,000 |
|
Total |
|
|
30,938 |
|
|
$ |
16.17 |
|
|
|
30,938 |
|
|
$ |
49,500,000 |
|
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
Rule 10b5-1 Trading Plans
During the three months ended June 30, 2026, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act)
79
ITEM 6. Exhibits
Exhibit No |
|
Description of Exhibits |
|
|
|
3.1 |
|
Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to the Company’s Current Report on Form 8-K filed on June 19, 2020). |
|
|
|
3.2 |
|
Third Amended and Restated Bylaws dated November 4, 2025 (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2025). |
|
|
|
4.1 |
|
Third Supplemental Indenture, dated as of May 14, 2026, between Sixth Street Specialty Lending, Inc. and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on May 14, 2026). |
|
|
|
4.2 |
|
Form of 5.650% Note Due 2031 (included in Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on May 14, 2026 and incorporated by reference). |
|
|
|
10.1 |
|
Seventeenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of May 1, 2026, among Sixth Street Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on May 5, 2026). |
|
|
|
31.1 |
|
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|
|
|
31.2 |
|
Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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32 |
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Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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101.INS |
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Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
101.SCH |
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Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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The agreements and other documents filed as exhibits to this Quarterly Report on Form 10-Q are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and shareholders should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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SIXTH STREET SPECIALTY LENDING, INC. |
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Date: August 4, 2026 |
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/s/ Robert “Bo” Stanley |
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Robert “Bo” Stanley |
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Chief Executive Officer |
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(Principal Executive Officer) |
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Date: August 4, 2026 |
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/s/ Ian Simmonds |
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Ian Simmonds |
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Chief Financial Officer |
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(Principal Financial Officer) |
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81