Sixth Street Specialty Lending Q3 EPS falls to $0.36
Weighted average yield on debt and income-producing securities at fair value was 11.4%, compared with 11.1% for the prior quarter.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Sixth Street Specialty Lending, Inc. (TSLX) reported third-quarter 2026 GAAP net investment income of $0.44 per share and net income of $0.36 per share. Investment income was $99.0 million, compared with $109.4 million in the year-earlier quarter, while net investment income was $41.604 million versus $50.680 million. Net asset value was $16.19 per share, compared with $16.24 as of June 30, 2026.
The company funded $246.5 million of investments and reported $159.6 million in exits and repayments. Investments on non-accrual represented 1.8% of portfolio cost and 1.1% of fair value, compared with 1.9% and 1.3%, respectively, as of June 30, 2026. At September 30, 2026, debt outstanding was $1,940.5 million and debt-to-equity was 1.25x, versus 1.15x a year earlier.
The board declared a fourth-quarter 2026 base dividend of $0.42 per share, payable December 31, 2026, to shareholders of record December 15, 2026, and a third-quarter 2026 supplemental dividend of $0.01 per share, payable December 21, 2026, to shareholders of record November 30, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Moderate pointNet investment income was $41.604 million, versus $50.680 million in the year-earlier quarter.
- Moderate pointThe base dividend was $0.42 per share, versus $0.46 for the quarter ended December 31, 2025.
- Minor pointInvestment income was $99.0 million, compared with $109.4 million a year earlier.
- Minor pointGAAP net income per share was $0.36, compared with $0.47 in the year-earlier quarter.
Filing Explained
At
8-K Event Classification
Key Figures
Key Terms
Net investment income financial
Non-accrual financial
Unfunded commitments financial
Weighted average total yield financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What dividends did TSLX declare, and when are they payable?
How much liquidity did TSLX report after unfunded commitments?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in charter)
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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(Address of Principal Executive Offices) |
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(zip code) |
Registrant’s telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02 – Results of Operations and Financial Condition
On November 3, 2026, Sixth Street Specialty Lending, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2026. The text of the press release is included as Exhibit 99.1 to this Form 8-K.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
Item 7.01 – Regulation FD Disclosure
On November 3, 2026, the Company issued a press release, included herewith as Exhibit 99.1, announcing the declaration of a fourth quarter 2026 base dividend per share of $0.42 to shareholders of record as of December 15, 2026, payable on December 31, 2026, and a third quarter 2026 supplemental dividend per share of $0.01 to shareholders of record as of November 30, 2026, payable on December 21, 2026.
The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits:
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Exhibit |
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Description |
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99.1 |
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Press Release, dated November 3, 2026 |
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104 |
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The cover page of this Current Report on Form 8-K, formatted in Inline XBRL |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SIXTH STREET SPECIALTY LENDING, INC. (Registrant) |
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Date: November 3, 2026 |
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By: |
/s/ Ian Simmonds |
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Ian Simmonds |
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Chief Financial Officer |
Exhibit 99.1
Third Quarter 2026 Earnings Results
NEW YORK — November 3, 2026 — Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today announced financial results for its third quarter ended September 30, 2026.
Third Quarter Highlights
“Our objective is not to compete for the same investments on the same terms, but to bring a differentiated perspective to where and how we invest capital. We believe these capabilities position us well to navigate an increasingly bifurcated market and compound long-term value for our shareholders.”
- Bo Stanley, Chief Executive Officer
Dividend Declaration
The Company announced that its Board of Directors has declared a fourth quarter 2026 base dividend of $0.42 per share to shareholders of record as of December 15, 2026, payable on December 31, 2026, and a third quarter 2026 supplemental dividend per share of $0.01 to shareholders of record as of November 30, 2026, payable on December 21, 2026.
1 Adjusted to exclude the capital gains incentive fee that was accrued, but not paid, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive fees paid inception to date.
Financial Highlights
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Three Months Ended |
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(unaudited) |
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September 30, 2026 |
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December 31, 2025 |
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September 30, 2025 |
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GAAP Results: |
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Net Investment Income Per Share |
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$ |
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0.44 |
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$ |
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0.53 |
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$ |
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0.54 |
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Net Income (Loss) Per Share |
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$ |
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0.36 |
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$ |
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0.32 |
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$ |
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0.47 |
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Annualized Return on Equity (Net Investment Income) (1) |
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10.7 |
% |
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12.5 |
% |
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12.5 |
% |
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Annualized Return on Equity (Net Income (Loss)) (1) |
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8.9 |
% |
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7.4 |
% |
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11.0 |
% |
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Non-GAAP financial measures: |
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Adjusted Net Investment Income Per Share (2) |
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$ |
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0.44 |
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$ |
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0.52 |
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$ |
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0.53 |
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Adjusted Net Income (Loss) Per Share (2) |
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$ |
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0.36 |
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$ |
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0.30 |
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$ |
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0.46 |
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Annualized Return on Equity (Adjusted Net Investment Income) (1)(2) |
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10.7 |
% |
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12.0 |
% |
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12.3 |
% |
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Annualized Return on Equity (Adjusted Net Income (Loss)) (1)(2) |
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8.9 |
% |
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7.0 |
% |
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10.8 |
% |
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Investments at Fair Value |
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$ |
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3,393.0 |
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$ |
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3,347.3 |
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$ |
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3,376.3 |
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Total Assets |
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$ |
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3,481.8 |
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$ |
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3,421.7 |
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$ |
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3,509.3 |
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Total debt (outstanding principal) |
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$ |
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1,940.5 |
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$ |
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1,763.9 |
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$ |
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1,858.7 |
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Net Assets |
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$ |
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1,549.3 |
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$ |
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1,607.7 |
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$ |
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1,619.7 |
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Debt-to-equity at quarter-end |
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1.25x |
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1.10x |
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1.15x |
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Net Asset Value Per Share |
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$ |
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16.19 |
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$ |
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16.98 |
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$ |
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17.14 |
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Adjusted Net Asset Value Per Share (3) |
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$ |
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16.18 |
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$ |
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16.97 |
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$ |
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17.11 |
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Base Dividend per share |
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$ |
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0.42 |
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$ |
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0.46 |
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$ |
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0.46 |
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Supplemental Dividend Per Share |
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$ |
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0.01 |
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$ |
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0.01 |
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$ |
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0.03 |
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1. Return on equity is calculated using prior period’s ending net asset value per share.
2. Adjusted to exclude the capital gains incentive fee that was accrued, but not paid, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive fees paid inception to date.
3. Adjusted net asset value per share gives effect to the supplemental dividend declared related to earnings or special dividend in the applicable period.
Portfolio and Investment Activity
For the quarter ended September 30, 2026, new investment commitments totaled $241.7 million. This compares to $114.6 million for the quarter ended June 30, 2026.
For the quarter ended September 30, 2026, the principal amount of new investments funded was $246.5 million across four new portfolio companies, five upsizes to existing portfolio companies and capital called by our joint venture, Structured Credit Partners, LLC. For this period, the Company had $159.6 million aggregate principal amount in exits and repayments. For the quarter ended June 30, 2026, the principal amount of new investments funded was $136.7 million across two new portfolio companies and capital called by Structured Credit Partners, LLC. For this period, the Company had $192.1 million aggregate principal amount in exits and repayments.
2
The Company had investments in 1331 portfolio companies as of September 30, 2026 and 1372 as of June 30, 2026 with an aggregate fair value of $3,393.0 million and $3,302.1 million, respectively. As of September 30, 2026, the average investment size in each portfolio company was $32.21 million based on fair value.
As of September 30, 2026, the Company’s portfolio based on fair value consisted of 86.9% first-lien debt investments, 0.7% second-lien debt investments, 1.9% mezzanine debt investments, 5.7% equity investments, 2.4% structured credit investments and 2.4% joint venture investments. As of June 30, 2026, the Company’s 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 September 30, 2026, 97.6% of debt investments3 based on fair value in the portfolio bore interest at floating rates with 100.0% of these subject to reference rate floors. The Company’s credit facilities also bear interest at floating rates. In connection with the Company’s Unsecured Notes, which bear interest at fixed rates, the Company has entered into fixed-to-floating interest rate swaps in order to align the nature of the interest rates of its liabilities with its investment portfolio.
As of September 30, 2026 and June 30, 2026, the weighted average total yield of debt and income-producing securities at fair value (which includes interest income and amortization of fees and discounts) was 11.4% and 11.1%, respectively, and the weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 11.4% and 11.2% for the quarter ended September 30, 2026 and June 30, 2026, respectively.
1 Includes 30 structured credit investments with a total fair value of $81.6 million as of September 30, 2026.
2 Includes 33 structured credit investments with a total fair value of $87.8 million as of June 30, 2026.
3 Calculation includes income earning debt investments only.
3
Results of Operations for the Three Months Ended September 30, 2026
Investment Income
For the three months ended September 30, 2026 and 2025, investment income was $99.0 million and $109.4 million, respectively. The decrease in investment income was primarily the result of a decrease in reference rates for the three months ended September 30, 2026 compared to the same period in 2025.
Net Expenses
Net expenses totaled $56.2 million and $57.4 million for the three months ended September 30, 2026 and 2025, respectively. The decrease in net expenses 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 September 30, 2025 to 5.7% for the three months ended September 30, 2026 due to a change in the mix of our debt financing sources and a change in SOFR rates.
Debt and Capital Resources
As of September 30, 2026, the Company had $40.5 million in cash and cash equivalents (including $35.4 million of restricted cash), total principal value of debt outstanding of $1,940.5 million, and $811.8 million of undrawn capacity on its revolving credit facility, subject to borrowing base and other limitations. The Company’s weighted average interest rate on debt outstanding was 5.7% and 6.3% for the three-month periods ended September 30, 2026 and 2025, respectively. At September 30, 2026, the Company’s debt to equity ratio was 1.25x, compared to 1.15x at September 30, 2025. Average debt to equity was 1.24x for the three-month period ended September 30, 2026, compared to 1.10x for the three-month period ended September 30, 2025.
4
Liquidity and Funding Profile
Liquidity
The following tables summarize the Company’s liquidity at September 30, 2026 and changes to unfunded commitments since June 30, 2026.
$ Millions
Revolving Credit Facility |
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Unfunded Commitment Activity |
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Revolver Capacity |
$1,525 |
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Unfunded Commitments (See Note 8 in 6/30/26 10-Q) |
$432 |
Drawn on Revolver |
($690) |
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Extinguished Unfunded Commitments |
($38) |
Unrestricted Cash Balance |
$5 |
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New Unfunded Commitments |
$37 |
Issued Letters of Credit |
($23) |
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Net Drawdown of Unfunded Commitments |
($55) |
Total Liquidity (Pre-Unfunded Commitments) |
$817 |
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Total Unfunded Commitments |
$377 |
Available Unfunded Commitments1 |
($219) |
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Unavailable Unfunded Commitments1 |
($158) |
Total Liquidity (Burdened for Unfunded Commitments) |
$598 |
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Available Unfunded Commitments1 |
$219 |
Note: May not sum due to rounding.
Funding Profile
At September 30, 2026, the Company’s funding mix was comprised of approximately 64% unsecured and 36% secured debt. The Company’s nearest debt maturity is in August 2028 at $300 million, and the weighted average remaining life of investments funded with debt was ~2.4 years, compared to a weighted average remaining maturity on debt of ~4.0 years2.
1 Commitments may be subject to limitations on borrowings set forth in the agreements between the Company and the applicable portfolio company. As a result, portfolio companies may not be eligible to borrow the full commitment amount on such date.
2 Weighted by gross commitment amount.
5
Conference Call and Webcast
Conference Call Information:
A conference call to discuss the Company’s financial results will be held at 8:30 a.m. Eastern Time on November 4, 2026. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX’s website at https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations. The Events & Presentations page of the Investor Resources section of TSLX’s website also includes a slide presentation that complements the Earnings Conference Call. Please visit the website to test your connection before the webcast.
Research analysts who wish to participate in the conference call must first register at https://register-conf.media-server.com/register/BIb4585bf88c3e4e1eb4406768b7c46332. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call.
Replay Information:
A recorded version will be available under the same webcast link (https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations) following the conclusion of the conference call.
6
Financial Highlights
(Amounts in millions, except per share amounts)
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Three Months Ended |
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(unaudited) |
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September 30, 2026 |
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December 31, 2025 |
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September 30, 2025 |
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Investments at Fair Value |
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$ |
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3,393.0 |
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$ |
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3,347.3 |
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$ |
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3,376.3 |
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Total Assets |
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$ |
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3,481.8 |
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$ |
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3,421.7 |
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$ |
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3,509.3 |
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Net Asset Value Per Share |
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$ |
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16.19 |
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$ |
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16.98 |
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$ |
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17.14 |
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Supplemental Dividend Per Share |
|
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$ |
|
0.01 |
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$ |
|
0.01 |
|
|
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$ |
|
0.03 |
|
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Adjusted Net Asset Value Per Share (1) |
|
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$ |
|
16.18 |
|
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$ |
|
16.97 |
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$ |
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17.11 |
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Investment Income |
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$ |
|
99.0 |
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$ |
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108.2 |
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$ |
|
109.4 |
|
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Net Investment Income |
|
|
$ |
|
41.6 |
|
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$ |
|
50.4 |
|
|
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$ |
|
50.7 |
|
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Net Income (Loss) |
|
|
$ |
|
34.4 |
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$ |
|
30.0 |
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$ |
|
44.6 |
|
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Accrued Capital Gains Incentive Fee Expense |
|
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$ |
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0.0 |
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$ |
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(1.8 |
) |
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$ |
|
(1.1 |
) |
|
Adjusted Net Investment Income (2) |
|
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$ |
|
41.6 |
|
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|
$ |
|
48.6 |
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$ |
|
49.6 |
|
|
Adjusted Net Income (Loss) (2) |
|
|
$ |
|
34.4 |
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$ |
|
28.2 |
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$ |
|
43.5 |
|
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|||
Net Investment Income Per Share |
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|
$ |
0.44 |
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$ |
0.53 |
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$ |
0.54 |
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|||
Net Income (Loss) Per Share |
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|
$ |
|
0.36 |
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|
$ |
0.32 |
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$ |
0.47 |
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Accrued Capital Gains Incentive Fee Expense Per Share |
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$ |
|
— |
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$ |
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(0.01 |
) |
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$ |
|
(0.01 |
) |
|
Adjusted Net Investment Income Per Share (2) |
|
|
$ |
|
0.44 |
|
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|
$ |
|
0.52 |
|
|
|
$ |
|
0.53 |
|
|
Adjusted Net Income (Loss) Per Share (2) |
|
|
$ |
|
0.36 |
|
|
|
$ |
|
0.30 |
|
|
|
$ |
|
0.46 |
|
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|
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|||
Annualized Return on Equity (Net Investment Income) (3) |
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|
|
|
10.7 |
% |
|
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|
12.5 |
% |
|
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|
|
12.5 |
% |
|
Annualized Return on Equity (Net Income (Loss)) (3) |
|
|
|
|
8.9 |
% |
|
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|
|
7.4 |
% |
|
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|
|
11.0 |
% |
|
Annualized Return on Equity (Adjusted Net Investment Income) (2)(3) |
|
|
|
|
10.7 |
% |
|
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12.0 |
% |
|
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|
12.3 |
% |
|
Annualized Return on Equity (Adjusted Net Income (Loss)) (2)(3) |
|
|
|
|
8.9 |
% |
|
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|
|
7.0 |
% |
|
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|
|
10.8 |
% |
|
|
|
|
|
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|
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|
|||
Weighted Average Yield of Debt and Income Producing Securities at Fair Value |
|
|
|
|
11.4 |
% |
|
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|
|
11.1 |
% |
|
|
|
|
11.4 |
% |
|
Weighted Average Yield of Debt and Income Producing Securities at Amortized Cost |
|
|
|
|
11.4 |
% |
|
|
|
|
11.3 |
% |
|
|
|
|
11.7 |
% |
|
Percentage of Debt Investment Commitments at Floating Rates |
|
|
|
|
97.6 |
% |
|
|
|
|
96.3 |
% |
|
|
|
|
96.3 |
% |
|
1. Adjusted net asset value per share gives effect to the supplemental dividend declared related to earnings or special dividend in the applicable period.
2. Adjusted to exclude the capital gains incentive fee that was accrued, but not paid, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive fees paid inception to date.
3. Return on equity is calculated using prior period’s ending net asset value per share.
7
Financial Statements and Tables
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
Assets |
|
|
|
|
|
|
||
Investments at fair value |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments (amortized cost of $3,195,950 and $3,244,762, respectively) |
|
$ |
3,206,959 |
|
|
$ |
3,288,945 |
|
Non-controlled, affiliated investments (amortized cost of $75,641 and $0, respectively) |
|
|
79,990 |
|
|
|
— |
|
Controlled, affiliated investments (amortized cost of $136,049 and $78,520, respectively) |
|
|
106,086 |
|
|
|
58,372 |
|
Total investments at fair value (amortized cost of $3,407,640 and $3,323,282, respectively) |
|
|
3,393,035 |
|
|
|
3,347,317 |
|
Cash and cash equivalents (restricted cash of $35,403 and $16,727, respectively) |
|
|
40,499 |
|
|
|
19,662 |
|
Interest and dividends receivable |
|
|
38,609 |
|
|
|
34,132 |
|
Prepaid expenses and other assets |
|
|
9,623 |
|
|
|
20,544 |
|
Total Assets |
|
$ |
3,481,766 |
|
|
$ |
3,421,655 |
|
Liabilities |
|
|
|
|
|
|
||
Debt (net of deferred financing costs of $27,234 and $24,411, respectively) |
|
$ |
1,871,877 |
|
|
$ |
1,743,234 |
|
Management fees payable to affiliate |
|
|
12,745 |
|
|
|
12,794 |
|
Incentive fees on net investment income payable to affiliate |
|
|
8,825 |
|
|
|
10,336 |
|
Incentive fees on net capital gains accrued to affiliate |
|
|
— |
|
|
|
— |
|
Other payables to affiliate |
|
|
4,312 |
|
|
|
3,166 |
|
Other liabilities |
|
|
34,717 |
|
|
|
44,404 |
|
Total Liabilities |
|
|
1,932,476 |
|
|
|
1,813,934 |
|
Commitments and contingencies (Note 8) |
|
|
|
|
|
|
||
Net Assets |
|
|
|
|
|
|
||
Preferred stock, $0.01 par value; 100,000,000 shares authorized; no shares |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 400,000,000 shares authorized, 96,408,347 |
|
|
964 |
|
|
|
954 |
|
Additional paid-in capital |
|
|
1,553,178 |
|
|
|
1,535,583 |
|
Treasury stock at cost; 695,188 and 664,250 shares held, respectively |
|
|
(10,959 |
) |
|
|
(10,459 |
) |
Distributable earnings |
|
|
6,107 |
|
|
|
81,643 |
|
Total Net Assets |
|
|
1,549,290 |
|
|
|
1,607,721 |
|
Total Liabilities and Net Assets |
|
$ |
3,481,766 |
|
|
$ |
3,421,655 |
|
Net Asset Value Per Share |
|
$ |
16.19 |
|
|
$ |
16.98 |
|
8
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment income from non-controlled, non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest from investments |
|
$ |
84,362 |
|
|
$ |
92,221 |
|
|
$ |
249,311 |
|
|
$ |
295,098 |
|
Paid-in-kind interest income |
|
|
6,288 |
|
|
|
6,883 |
|
|
|
19,979 |
|
|
|
18,026 |
|
Dividend income |
|
|
251 |
|
|
|
268 |
|
|
|
745 |
|
|
|
1,563 |
|
Other income |
|
|
2,577 |
|
|
|
7,397 |
|
|
|
8,717 |
|
|
|
18,465 |
|
Total investment income from non-controlled, non-affiliated investments |
|
|
93,478 |
|
|
|
106,769 |
|
|
|
278,752 |
|
|
|
333,152 |
|
Investment income from non-controlled, affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividend income |
|
|
3,260 |
|
|
|
— |
|
|
|
5,173 |
|
|
|
— |
|
Total investment income from non-controlled, affiliated investments |
|
|
3,260 |
|
|
|
— |
|
|
|
5,173 |
|
|
|
— |
|
Investment income from controlled, affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest from investments |
|
|
2,215 |
|
|
|
2,672 |
|
|
|
6,255 |
|
|
|
7,649 |
|
Other income |
|
|
3 |
|
|
|
3 |
|
|
|
17 |
|
|
|
7 |
|
Total investment income from controlled, affiliated investments |
|
|
2,218 |
|
|
|
2,675 |
|
|
|
6,272 |
|
|
|
7,656 |
|
Total Investment Income |
|
|
98,956 |
|
|
|
109,444 |
|
|
|
290,197 |
|
|
|
340,808 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest |
|
|
30,489 |
|
|
|
31,385 |
|
|
|
88,832 |
|
|
|
98,003 |
|
Management fees |
|
|
13,268 |
|
|
|
13,081 |
|
|
|
38,821 |
|
|
|
39,082 |
|
Incentive fees on net investment income |
|
|
8,825 |
|
|
|
10,527 |
|
|
|
25,949 |
|
|
|
33,132 |
|
Incentive fees on net capital gains |
|
|
— |
|
|
|
(1,054 |
) |
|
|
— |
|
|
|
(3,303 |
) |
Professional fees |
|
|
2,497 |
|
|
|
2,022 |
|
|
|
6,660 |
|
|
|
6,544 |
|
Directors’ fees |
|
|
239 |
|
|
|
206 |
|
|
|
722 |
|
|
|
702 |
|
Other general and administrative |
|
|
1,357 |
|
|
|
1,507 |
|
|
|
4,489 |
|
|
|
4,124 |
|
Total expenses |
|
|
56,675 |
|
|
|
57,674 |
|
|
|
165,473 |
|
|
|
178,284 |
|
Management and incentive fees waived (Note 3) |
|
|
(523 |
) |
|
|
(284 |
) |
|
|
(1,311 |
) |
|
|
(990 |
) |
Net Expenses |
|
|
56,152 |
|
|
|
57,390 |
|
|
|
164,162 |
|
|
|
177,294 |
|
Net Investment Income Before Income Taxes |
|
|
42,804 |
|
|
|
52,054 |
|
|
|
126,035 |
|
|
|
163,514 |
|
Income taxes, including excise taxes |
|
|
1,200 |
|
|
|
1,374 |
|
|
|
3,705 |
|
|
|
4,016 |
|
Net Investment Income |
|
|
41,604 |
|
|
|
50,680 |
|
|
|
122,330 |
|
|
|
159,498 |
|
Unrealized and Realized Gains (Losses) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in unrealized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
2,769 |
|
|
|
(3,887 |
) |
|
|
(33,175 |
) |
|
|
60,466 |
|
Non-controlled, affiliated investments |
|
|
1,908 |
|
|
|
— |
|
|
|
4,349 |
|
|
|
— |
|
Controlled, affiliated investments |
|
|
(5,021 |
) |
|
|
(3,019 |
) |
|
|
(9,814 |
) |
|
|
(7,385 |
) |
Translation of other assets and liabilities in foreign currencies |
|
|
3,797 |
|
|
|
756 |
|
|
|
15,114 |
|
|
|
(36,052 |
) |
Interest rate swaps |
|
|
(71 |
) |
|
|
— |
|
|
|
(71 |
) |
|
|
— |
|
Income tax provision |
|
|
(913 |
) |
|
|
605 |
|
|
|
(1,640 |
) |
|
|
605 |
|
Total net change in unrealized gains (losses) |
|
|
2,469 |
|
|
|
(5,545 |
) |
|
|
(25,237 |
) |
|
|
17,634 |
|
Realized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
(9,753 |
) |
|
|
768 |
|
|
|
(48,215 |
) |
|
|
(34,919 |
) |
Foreign currency transactions |
|
|
54 |
|
|
|
(366 |
) |
|
|
(21 |
) |
|
|
(719 |
) |
Interest rate swaps |
|
|
71 |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Income tax provision |
|
|
— |
|
|
|
(937 |
) |
|
|
— |
|
|
|
(937 |
) |
Total net realized gains (losses) |
|
|
(9,628 |
) |
|
|
(535 |
) |
|
|
(48,165 |
) |
|
|
(36,575 |
) |
Total Net Unrealized and Realized Gains (Losses) |
|
|
(7,159 |
) |
|
|
(6,080 |
) |
|
|
(73,402 |
) |
|
|
(18,941 |
) |
Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
34,445 |
|
|
$ |
44,600 |
|
|
$ |
48,928 |
|
|
$ |
140,557 |
|
Earnings per common share—basic and diluted |
|
$ |
0.36 |
|
|
$ |
0.47 |
|
|
$ |
0.51 |
|
|
$ |
1.50 |
|
Weighted average shares of common stock outstanding—basic and diluted |
|
|
95,347,161 |
|
|
|
94,245,993 |
|
|
|
95,028,344 |
|
|
|
93,964,387 |
|
9
The Company’s investment activity for the quarter ended September 30, 2026 and 2025 presented below (information presented herein is at par value unless otherwise indicated).
|
|
Three Months Ended |
|
|||||
($ in millions) |
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||
New investment commitments: |
|
|
|
|
|
|
||
Gross originations (1) |
|
$ |
1,195.9 |
|
|
$ |
3,735.0 |
|
Less: Syndications/sell downs (1) |
|
|
954.2 |
|
|
|
3,347.3 |
|
Total new investment commitments |
|
$ |
241.7 |
|
|
$ |
387.7 |
|
Principal amount of investments funded: |
|
|
|
|
|
|
||
First-lien |
|
$ |
195.6 |
|
|
$ |
253.1 |
|
Second-lien |
|
|
— |
|
|
|
— |
|
Mezzanine |
|
|
— |
|
|
|
— |
|
Equity |
|
|
26.7 |
|
|
|
— |
|
Structured Credit |
|
|
— |
|
|
|
98.7 |
|
Joint Venture |
|
|
24.2 |
|
|
|
— |
|
Total |
|
$ |
246.5 |
|
|
$ |
351.8 |
|
Principal amount of investments sold or repaid: |
|
|
|
|
|
|
||
First-lien |
|
$ |
145.6 |
|
|
$ |
302.0 |
|
Second-lien |
|
|
— |
|
|
|
— |
|
Mezzanine |
|
|
0.9 |
|
|
|
— |
|
Equity |
|
|
6.8 |
|
|
|
0.8 |
|
Structured Credit |
|
|
6.3 |
|
|
|
— |
|
Joint Venture |
|
|
— |
|
|
|
— |
|
Total |
|
$ |
159.6 |
|
|
$ |
302.8 |
|
Number of new investment commitments in |
|
|
4 |
|
|
|
41 |
|
Average new investment commitment amount in |
|
$ |
48.7 |
|
|
$ |
7.3 |
|
Weighted average term for new debt investment |
|
|
5.5 |
|
|
|
7.8 |
|
Percentage of new debt investment commitments |
|
|
100.0 |
% |
|
|
100.0 |
% |
Percentage of new debt investment commitments |
|
|
— |
|
|
|
— |
|
Weighted average interest rate of new |
|
|
10.2 |
% |
|
|
10.3 |
% |
Weighted average spread over reference rate of new |
|
|
6.0 |
% |
|
|
6.6 |
% |
Weighted average interest rate on investments |
|
|
10.2 |
% |
|
|
12.6 |
% |
1. Includes affiliates of Sixth Street.
2. For three months ended September 30, 2025, includes 37 structured credit investments with a total principal amount of $98.7 million and a weighted average term of 12.2 years.
10
About Sixth Street Specialty Lending
Sixth Street Specialty Lending is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The Company has elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. The Company is externally managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of Sixth Street and a Securities and Exchange Commission (“SEC”) registered investment adviser. The Company leverages the deep investment, sector, and operating resources of Sixth Street, a global investment firm with over $140 billion in assets under management and committed capital. For more information, visit the Company’s website at https://sixthstreetspecialtylending.com.
About Sixth Street
Sixth Street is a global investment firm with over $140 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 750 team members including over 300 investment professionals around the world. For more information, visit https://sixthstreet.com or follow Sixth Street on LinkedIn.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements,” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which relate to future events or the Company’s future performance or financial condition. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as otherwise required by federal securities laws, the Company assumes no obligation to update any such forward-looking statements, whether as a result of new information, future developments or otherwise.
11
Non-GAAP Financial Measures
Adjusted net investment income and adjusted net income are each non-GAAP financial measures, which represent net investment income and net income, respectively, in each case less the impact of accrued capital gains incentive fee expenses. The Company believes that adjusted net investment income and adjusted net income provide useful information to investors regarding the fundamental earnings power of the business, and these figures are used by the Company to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
Investors:
Cami Senatore, 469-621-2033
Sixth Street Specialty Lending
IRTSLX@sixthstreet.com
Media:
Patrick Clifford, 617-793-2004
Sixth Street
PClifford@sixthstreet.com
12