Sixth Street Specialty Lending 2025 results, dividends
Sixth Street Specialty Lending, Inc. reported full-year 2025 net investment income of $2.23 per share and net income of $1.81 per share.
Rhea-AI Filing Summary
Sixth Street Specialty Lending, Inc. reported full-year 2025 net investment income of $2.23 per share and net income of $1.81 per share. For the fourth quarter, net investment income was $0.53 per share and net income was $0.32 per share, supported by elevated interest rates and strong fee income.
Full-year 2025 return on equity was 13.1% on a net investment income basis and 10.6% on a net income basis. Net asset value per share was $16.98 at December 31, 2025, slightly below $17.14 at September 30, 2025, and the company’s economic return for 2025 was 10.9%.
The base dividend remained covered, with adjusted net investment income of $0.52 per share in Q4 exceeding the $0.46 base quarterly dividend by $0.06. The board declared a first-quarter 2026 base dividend of $0.46 per share and a fourth-quarter 2025 supplemental dividend of $0.01 per share. The portfolio totaled $3,347.3 million in fair value, was 89.2% first-lien debt, and had non-accruals of 0.6% of fair value.
Positive
- None.
Negative
- None.
Insights
TSLX delivered solid earnings, strong dividend coverage, and stable credit quality in 2025.
Sixth Street Specialty Lending generated 2025 net investment income of $209.995M or $2.23 per share and net income of $1.81 per share. Net investment income benefited from an 11.1% yield on debt and income-producing securities at fair value and lower funding costs as the average interest rate on debt fell to 6.2% from 7.5% in 2024.
The company produced double-digit return on equity, with 2025 ROE of 13.1% on a net investment income basis and economic return of 10.9%. Net asset value per share was broadly stable at $16.98, while non-accruals represented only 0.6% of the portfolio at fair value, indicating contained credit issues despite one new non-accrual.
Dividend metrics appear conservative: total 2025 dividends were $2.05 per share, and in Q4 adjusted net investment income of $0.52 per share exceeded the $0.46 base dividend. Leverage was moderate with a year-end debt-to-equity ratio of 1.10x and $1,142M in pre-commitment liquidity. A new $200M commitment to Structured Credit Partners JV was established but unfunded as of December 31, 2025, so future disclosures will show how it is deployed.
8-K Event Classification
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Sixth Street Specialty Lending (TSLX) perform financially in 2025?
What dividends did Sixth Street Specialty Lending (TSLX) declare around Q4 2025?
What was TSLX’s net asset value and economic return for 2025?
How strong was Sixth Street Specialty Lending’s (TSLX) credit quality at year-end 2025?
What were TSLX’s leverage and liquidity levels at December 31, 2025?
What new strategic initiatives did Sixth Street Specialty Lending (TSLX) undertake in 2025?
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 February 12, 2026, Sixth Street Specialty Lending, Inc. (the “Company”) issued a press release announcing its financial results for the year ended December 31, 2025. 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 February 12, 2026, the Company issued a press release, included herewith as Exhibit 99.1, announcing the declaration of a first quarter 2026 base dividend per share of $0.46 to shareholders of record as of March 16, 2026, payable on March 31, 2026, and a fourth quarter 2025 supplemental dividend per share of $0.01 to shareholders of record as of February 27, 2026, payable on March 20, 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 February 12, 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: February 12, 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
k
FULL YEAR AND FOURTH QUARTER 2025 EARNINGS RESULTS
Sixth Street Specialty Lending, Inc. Reports Full Year and Fourth Quarter Earnings Results; Declares a First Quarter Base Dividend Per Share of $0.46, and a Fourth Quarter Supplemental Dividend Per Share of $0.01.
NEW YORK—February 12, 2026— Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today reported net investment income of $2.23 per share and net income of $1.81 per share, for the year ended December 31, 2025. For the quarter ended December 31, 2025 net investment income and net income per share were $0.53 and $0.32, respectively. The Company’s net investment income for Q4 continues to reflect the impact from the elevated interest rate environment combined with strong activity-based fee income. Return on equity (ROE) for the full year 2025 was 13.1% and 10.6% on a net investment income and a net income basis, respectively. Annualized ROE for the fourth quarter 2025 was 12.5% and 7.4% on a net investment income and a net income basis, respectively.
Both net investment income per share and net income per share for the year include approximately $0.05 per share of unwind of previously accrued capital gains incentive fee expenses. Excluding the impact of the accrued capital gains incentive fee expenses, the Company’s adjusted net investment income and adjusted net income for the year ended December 31, 2025 were $2.18 per share and $1.76 per share, respectively. For the quarter ended December 31, 2025, adjusted net investment income per share was $0.52 and adjusted net income per share was $0.30. Return on equity (ROE) for the full year 2025 was 12.7% and 10.3% on an adjusted net investment income and an adjusted net income basis, respectively. Annualized ROE for the fourth quarter 2025 was 12.0% and 7.0% on an adjusted net investment income and an adjusted net income basis, respectively.
Reported net asset value (NAV) per share was $16.98 at December 31, 2025 as compared to $17.14 at September 30, 2025. The Company’s base dividend remained well covered with adjusted net investment income of $0.52 per share exceeding the base quarterly dividend by $0.06 per share. The Company announced that its Board of Directors has declared a first quarter 2026 base dividend of $0.46 per share to shareholders of record as of March 16, 2026 and payable on March 31, 2026. The Board also announced a fourth quarter supplemental dividend of $0.01 per share to shareholders of record as of February 27, 2026, payable on March 20, 2026. The primary drivers of this year’s change in NAV were the over-earning of the base dividend through net investment income, offset by the reversal of net unrealized gains from investment realizations during the year and portfolio company specific events. The Company’s economic return for 2025, calculated as change in net asset value plus dividends paid in the year, was 10.9%.
During Q4, affiliates of Sixth Street, including TSLX, formed Structured Credit Partners JV, LLC (“SCP”), a joint venture between TSLX, Sixth Street Lending Partners and two BDCs managed by Carlyle Group Inc. (“Carlyle”). SCP is 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. TSLX’s total commitment to the joint venture is $200 million. As of December 31, 2025, SCP had not commenced operations and no capital had been contributed to SCP. |
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Net Investment Income Per Share |
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2025: Q4 2025: |
$2.23 $0.53 |
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2025 (adjusted): Q4 2025 (adjusted): |
$2.18 $0.52 |
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Net Income Per Share |
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2025: Q4 2025: |
$1.81 $0.32 |
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2025 (adjusted): Q4 2025 (adjusted): |
$1.76 $0.30 |
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Return on Equity |
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2025 (NII): Q4 2025 (NII): |
13.1% 12.5% |
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2025 (NI): Q4 2025 (NI): |
10.6% 7.4% |
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2025 (Adj. NII): Q4 2025 (Adj. NII): |
12.7% 12.0% |
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2025 (Adj. NI): Q4 2025 (Adj. NI): |
10.3% 7.0% |
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NAV |
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Q4 2025 ($MM): |
$1,607.7 |
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Q4 2025 (per share): |
$16.98 |
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Q4 2025 (per share, adj): |
$16.97 |
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Dividends Declared (per share) |
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Q4 2025 (Base): |
$0.46 |
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2025 (Base): |
$1.84 |
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2025 (Supplemental): |
$0.21 |
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2025 (Total): |
$2.05 |
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1
Portfolio and Investment Activity
For the year ended December 31, 2025, new investment commitments totaled $1,082.2 million. This compares to $1,242.9 million for the year ended December 31, 2024. For the year ended December 31, 2025, the principal amount of new investments funded was $894.0 million in 20 new portfolio companies, 16 existing portfolio companies and several structured credit investments. For this period, the Company had $1,196.1 million aggregate principal amount in exits and repayments.
For the year ended December 31, 2024, the principal amount of new investments funded was $838.9 million in 34 new portfolio companies and 21 existing portfolio companies. For this period, the Company had $793.7 million aggregate principal amount in exits and repayments.
Fourth Quarter
For the quarter ended December 31, 2025, new investment commitments totaled $242.4 million. This compares to $387.7 million for the quarter ended September 30, 2025.
For the quarter ended December 31, 2025, the principal amount of new investments funded was $196.7 million across five new portfolio companies and four upsizes to existing portfolio companies. For this period, the Company had $234.9 million aggregate principal amount in exits and repayments. For the quarter ended September 30, 2025, the principal amount of new investments funded was $351.8 million across four new portfolio companies, five upsizes to existing portfolio companies and several structured credit investments. For this period, the Company had $302.8 million aggregate principal amount in exits and repayments.
As of December 31, 2025 and September 30, 2025, the Company had investments in 1431 and 1452 portfolio companies, respectively, with an aggregate fair value of $3,347.3 million and $3,376.3 million, respectively. As of December 31, 2025, the average investment size in each portfolio company was $23.41 million based on fair value.
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 and other investments and 2.9% structured credit investments. As of September 30, 2025, the Company’s 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 December 31, 2025, 96.3% 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.
For the period ended December 31, 2025 and September 30, 2025, 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 11.1% and 11.4%, 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 11.3% and 11.7%, respectively.
One new investment, representing 0.01% of the portfolio by fair value, was added to non-accrual status during the quarter. As of December 31, 2025, non-accrual investments represented 0.6% of the portfolio at fair value. |
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2025 Origination Activity |
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Commitments: |
$1,082.2MM |
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Fundings: |
$894.0MM |
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Net Repayments: |
$302.1MM |
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Q4 2025 Origination Activity |
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Commitments: |
$242.4MM |
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Fundings: |
$196.7MM |
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Net Repayments: |
$38.2MM |
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Average Investment Size1 |
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$23.4MM |
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(0.7% of the portfolio at fair value) |
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First Lien Debt Investments (% FV) |
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89.2% |
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Floating Rate Debt Investments3 |
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(% FV) |
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96.3% |
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Weighted Average Yield of Debt and Incoming-Producing Securities |
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Yield at Fair Value: |
11.1% |
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Yield at Amortized Cost: |
11.3% |
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1. As of December 31, 2025, includes 36 structured credit investments with a total fair value of $97.9 million. 2. As of September 30, 2025, includes 37 structured credit investments with a total fair value of $99.3 million. 3. Calculation includes income earning debt investments only. |
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2
RESULTS OF OPERATIONS FOR THE FULL YEAR AND THREE MONTHS ENDED DECEMBER 31, 2025
Full Year |
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2025 |
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For the years ended December 31, 2025 and 2024, investment income totaled $449.1 million and $482.5 million, respectively. The decrease in investment income was primarily the result of a decrease in reference rates for the year ended December 31, 2025 compared to 2024.
Net expenses totaled $233.7 million and $258.6 million for the years ended December 31, 2025 and 2024, respectively. The decrease in net expenses was primarily due to a decrease in the average interest rate on our debt outstanding. The average interest rate on our debt outstanding decreased from 7.5% for the year ended December 31, 2024 to 6.2% for the year ended December 31, 2025 due to a change in SOFR rates and the mix of our debt financing sources. |
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Investment Income: |
$449.1MM |
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Net Expenses: |
$233.7MM |
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Fourth Quarter |
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Q4 2025 |
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For the three months ended December 31, 2025 and 2024, total investment income was $108.2 million and $123.7 million, respectively. The decrease in total investment income was primarily from a decrease in total interest from investments and other income. Net expenses totaled $56.4 million and $64.9 million for the three months ended December 31, 2025 and 2024, respectively. The decrease in expenses was primarily driven a decrease in the average interest rate on our debt outstanding. |
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Investment Income: |
$108.2MM |
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Net Expenses: |
$56.4MM |
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Debt and Capital Resources |
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As of December 31, 2025, the Company had $19.7 million in cash and cash equivalents (including $16.7 million of restricted cash), total principal value of debt outstanding of $1,763.9 million, and $1,139.3 million of undrawn capacity on its revolving credit facility, subject to borrowing base and other limitations. At year end, aggregate commitments under the Company’s revolving credit facility were $1,675 million, in accordance with the accordion feature.
The Company’s weighted average interest rate on debt outstanding was 6.0% and 6.3% for the three months ended December 31, 2025 and September 30, 2025, respectively. At December 31, 2025, the Company’s debt to equity ratio was 1.10x, compared to 1.15x at September 30, 2025. Average debt to equity was 1.17x and 1.10x during the three months ended December 31, 2025 and September 30, 2025, respectively. |
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Total Principal Debt Outstanding |
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$1,763.9MM |
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Debt-to-Equity Ratio |
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Q4 2025 Quarter End: |
1.10x |
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2025 Average1: |
1.17x |
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Q4 2025 Average1: |
1.17x |
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1. Daily average debt outstanding during the quarter divided by the average net assets during the quarter. Average net assets is calculated by starting with the prior quarter end net asset value and adjusting for capital activity during the quarter (adding common stock offerings / DRIP contributions). |
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3
LIQUIDITY AND FUNDING PROFILE
Liquidity
The following tables summarize the Company’s liquidity at December 31, 2025 and changes to unfunded commitments since September 30, 2025.
$ Millions
Revolving Credit Facility1 |
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Unfunded Commitment Activity |
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Revolver Capacity |
$1,675 |
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Unfunded Commitments (See Note 8 in 9/30/25 10-Q) |
$337 |
Drawn on Revolver |
($514) |
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Extinguished Unfunded Commitments |
($17) |
Unrestricted Cash Balance |
$3 |
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New Unfunded Commitments |
$55 |
Issued Letters of Credit |
($22) |
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Net Drawdown of Unfunded Commitments |
($36) |
Total Liquidity (Pre-Unfunded Commitments) |
$1,142 |
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Total Unfunded Commitments |
$339 |
Available Unfunded Commitments2 |
($199) |
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Unavailable Unfunded Commitments2 |
($139) |
Total Liquidity (Burdened for Unfunded Commitments) |
$943 |
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Available Unfunded Commitments2 |
$199 |
Note: May not sum due to rounding.
Funding Profile
At December 31, 2025, the Company’s funding mix was comprised of 71% unsecured and 29% secured debt. As illustrated below, the Company’s nearest debt maturity is in August 2026 at $300 million, and the weighted average remaining life of investments funded with debt is ~2.6 years, compared to a weighted average remaining maturity on debt of ~3.42years.
Note: Numbers may not sum due to rounding.
4
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 February 13, 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/BI8fd4599053f14d4783d578bde7c7c0be. 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.
5
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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December 31, 2025 |
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September 30, 2025 |
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December 31, 2024 |
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Investments at Fair Value |
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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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$ |
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3,518.4 |
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Total Assets |
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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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$ |
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3,582.2 |
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Net Asset Value Per Share |
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$ |
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16.98 |
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$ |
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17.14 |
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$ |
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17.16 |
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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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0.03 |
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$ |
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0.07 |
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Adjusted Net Asset Value Per Share (1) |
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$ |
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16.97 |
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$ |
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17.11 |
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$ |
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17.09 |
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Investment Income |
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$ |
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108.2 |
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$ |
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109.4 |
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$ |
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123.7 |
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Net Investment Income |
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$ |
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50.4 |
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$ |
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50.7 |
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$ |
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57.6 |
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Net Income |
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$ |
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30.0 |
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$ |
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44.6 |
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$ |
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51 |
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Accrued Capital Gains Incentive Fee Expense |
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$ |
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(1.8 |
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$ |
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(1.1 |
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$ |
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(1.0 |
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Adjusted Net Investment Income (2) |
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$ |
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48.6 |
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$ |
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49.6 |
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$ |
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56.6 |
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Adjusted Net Income (2) |
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$ |
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28.2 |
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$ |
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43.5 |
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$ |
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50.0 |
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Net Investment Income Per Share |
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$ |
0.53 |
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$ |
0.54 |
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$ |
0.62 |
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Net Income Per Share |
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$ |
0.32 |
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$ |
0.47 |
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$ |
0.55 |
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Accrued Capital Gains Incentive Fee Expense 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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(0.01 |
) |
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Adjusted Net Investment Income Per Share (2) |
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$ |
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0.52 |
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$ |
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0.53 |
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$ |
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0.61 |
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Adjusted Net Income Per Share (2) |
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$ |
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0.30 |
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$ |
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0.46 |
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$ |
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0.54 |
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Annualized Return on Equity (Net Investment Income) (3) |
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12.5 |
% |
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12.5 |
% |
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14.4 |
% |
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Annualized Return on Equity (Net Income) (3) |
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7.4 |
% |
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11.0 |
% |
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12.8 |
% |
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Annualized Return on Equity (Adjusted Net Investment Income) (2)(3) |
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12.0 |
% |
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12.3 |
% |
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14.2 |
% |
|
Annualized Return on Equity (Adjusted Net Income) (2)(3) |
|
|
|
|
7.0 |
% |
|
|
|
|
10.8 |
% |
|
|
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted Average Yield of Debt and Income Producing Securities at Fair Value |
|
|
|
|
11.1 |
% |
|
|
|
|
11.4 |
% |
|
|
|
|
12.3 |
% |
|
Weighted Average Yield of Debt and Income Producing Securities at Amortized Cost |
|
|
|
|
11.3 |
% |
|
|
|
|
11.7 |
% |
|
|
|
|
12.5 |
% |
|
Percentage of Debt Investment Commitments at Floating Rates |
|
|
|
|
96.3 |
% |
|
|
|
|
96.3 |
% |
|
|
|
|
97.2 |
% |
|
6
Financial Statements and Tables
Sixth Street Specialty Lending, Inc.
Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Assets |
|
|
|
|
|
|
||
Investments at fair value |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments (amortized cost of $3,244,762 and $3,450,644, respectively) |
|
$ |
3,288,945 |
|
|
$ |
3,453,317 |
|
Controlled, affiliated investments (amortized cost of $78,520 and $88,509, respectively) |
|
|
58,372 |
|
|
|
65,095 |
|
Total investments at fair value (amortized cost of $3,323,282 and $3,539,153, respectively) |
|
|
3,347,317 |
|
|
|
3,518,412 |
|
Cash and cash equivalents (restricted cash of $16,727 and $22,362, respectively) |
|
|
19,662 |
|
|
|
27,328 |
|
Interest receivable |
|
|
34,132 |
|
|
|
30,518 |
|
Prepaid expenses and other assets |
|
|
20,544 |
|
|
|
5,967 |
|
Total Assets |
|
$ |
3,421,655 |
|
|
$ |
3,582,225 |
|
Liabilities |
|
|
|
|
|
|
||
Debt (net of deferred financing costs of $24,411 and $23,837, respectively) |
|
$ |
1,743,234 |
|
|
$ |
1,901,142 |
|
Management fees payable to affiliate |
|
|
12,794 |
|
|
|
12,953 |
|
Incentive fees on net investment income payable to affiliate |
|
|
10,336 |
|
|
|
12,013 |
|
Incentive fees on net capital gains accrued to affiliate |
|
|
— |
|
|
|
5,071 |
|
Other payables to affiliate |
|
|
3,166 |
|
|
|
3,635 |
|
Other liabilities |
|
|
44,404 |
|
|
|
39,882 |
|
Total Liabilities |
|
|
1,813,934 |
|
|
|
1,974,696 |
|
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, 95,369,400 |
|
|
954 |
|
|
|
943 |
|
Additional paid-in capital |
|
|
1,535,583 |
|
|
|
1,519,337 |
|
Treasury stock at cost; 664,250 and 664,250 shares held, respectively |
|
|
(10,459 |
) |
|
|
(10,459 |
) |
Distributable earnings |
|
|
81,643 |
|
|
|
97,708 |
|
Total Net Assets |
|
|
1,607,721 |
|
|
|
1,607,529 |
|
Total Liabilities and Net Assets |
|
$ |
3,421,655 |
|
|
$ |
3,582,225 |
|
Net Asset Value Per Share |
|
$ |
16.98 |
|
|
$ |
17.16 |
|
7
Sixth Street Specialty Lending, Inc.
Consolidated Statements of Operations
(Amounts in thousands, except share and per share amounts)
|
|
Year Ended |
|
|
Year Ended |
|
|
Year Ended |
|
|||
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|||
Income |
|
|
|
|
|
|
|
|
|
|||
Investment income from non-controlled, non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|||
Interest from investments |
|
$ |
390,428 |
|
|
$ |
413,547 |
|
|
$ |
391,343 |
|
Paid-in-kind interest income |
|
|
25,586 |
|
|
|
29,335 |
|
|
|
19,679 |
|
Dividend income |
|
|
2,345 |
|
|
|
11,678 |
|
|
|
4,181 |
|
Other income |
|
|
20,338 |
|
|
|
18,525 |
|
|
|
15,122 |
|
Total investment income from non-controlled, non-affiliated investments |
|
|
438,697 |
|
|
|
473,085 |
|
|
|
430,325 |
|
Investment income from controlled, affiliated investments: |
|
|
|
|
|
|
|
|
|
|||
Interest from investments |
|
|
10,347 |
|
|
|
9,428 |
|
|
|
7,756 |
|
Other income |
|
|
11 |
|
|
|
13 |
|
|
|
6 |
|
Total investment income from controlled, affiliated investments |
|
|
10,358 |
|
|
|
9,441 |
|
|
|
7,762 |
|
Total Investment Income |
|
|
449,055 |
|
|
|
482,526 |
|
|
|
438,087 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|||
Interest |
|
|
129,557 |
|
|
|
154,145 |
|
|
|
133,731 |
|
Management fees |
|
|
52,176 |
|
|
|
51,786 |
|
|
|
46,382 |
|
Incentive fees on net investment income |
|
|
43,469 |
|
|
|
45,530 |
|
|
|
42,590 |
|
Incentive fees on net capital gains |
|
|
(5,071 |
) |
|
|
(5,375 |
) |
|
|
4,382 |
|
Professional fees |
|
|
8,308 |
|
|
|
7,546 |
|
|
|
7,323 |
|
Directors’ fees |
|
|
962 |
|
|
|
877 |
|
|
|
806 |
|
Other general and administrative |
|
|
5,631 |
|
|
|
5,522 |
|
|
|
5,280 |
|
Total expenses |
|
|
235,032 |
|
|
|
260,031 |
|
|
|
240,494 |
|
Management and incentive fees waived (Note 3) |
|
|
(1,291 |
) |
|
|
(1,466 |
) |
|
|
(1,171 |
) |
Net Expenses |
|
|
233,741 |
|
|
|
258,565 |
|
|
|
239,323 |
|
Net Investment Income Before Income Taxes |
|
|
215,314 |
|
|
|
223,961 |
|
|
|
198,764 |
|
Income taxes, including excise taxes |
|
|
5,319 |
|
|
|
3,944 |
|
|
|
2,365 |
|
Net Investment Income |
|
|
209,995 |
|
|
|
220,017 |
|
|
|
196,399 |
|
Unrealized and Realized Gains (Losses) |
|
|
|
|
|
|
|
|
|
|||
Net change in unrealized gains (losses): |
|
|
|
|
|
|
|
|
|
|||
Non-controlled, non-affiliated investments |
|
|
41,511 |
|
|
|
(47,625 |
) |
|
|
40,571 |
|
Controlled, affiliated investments |
|
|
3,266 |
|
|
|
(5,169 |
) |
|
|
(21,717 |
) |
Translation of other assets and liabilities in foreign currencies |
|
|
(35,915 |
) |
|
|
13,379 |
|
|
|
(6,393 |
) |
Interest rate swaps |
|
|
— |
|
|
|
— |
|
|
|
174 |
|
Income tax provision |
|
|
520 |
|
|
|
(2,609 |
) |
|
|
556 |
|
Total net change in unrealized gains (losses) |
|
|
9,382 |
|
|
|
(42,024 |
) |
|
|
13,191 |
|
Realized gains (losses): |
|
|
|
|
|
|
|
|
|
|||
Non-controlled, non-affiliated investments |
|
|
(31,106 |
) |
|
|
9,037 |
|
|
|
12,095 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
158 |
|
Controlled, affiliated investments |
|
|
(16,309 |
) |
|
|
— |
|
|
|
— |
|
Foreign currency transactions |
|
|
(505 |
) |
|
|
(464 |
) |
|
|
180 |
|
Income tax provision |
|
|
(940 |
) |
|
|
— |
|
|
|
— |
|
Total net realized gains (losses) |
|
|
(48,860 |
) |
|
|
8,573 |
|
|
|
12,433 |
|
Total Net Unrealized and Realized Gains (Losses) |
|
|
(39,478 |
) |
|
|
(33,451 |
) |
|
|
25,624 |
|
Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
170,517 |
|
|
$ |
186,566 |
|
|
$ |
222,023 |
|
Earnings per common share—basic and diluted |
|
$ |
1.81 |
|
|
$ |
2.03 |
|
|
$ |
2.61 |
|
Weighted average shares of common stock outstanding—basic and diluted |
|
|
94,098,870 |
|
|
|
92,035,165 |
|
|
|
85,131,264 |
|
8
The Company’s investment activity for the years ended December 31, 2025, 2024 and 2023 is presented below (information presented herein is at par value unless otherwise indicated).
|
|
Year Ended |
|
|||||||||
($ in millions) |
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|||
New investment commitments: |
|
|
|
|
|
|
|
|
|
|||
Gross originations (1) |
|
$ |
7,118.2 |
|
|
$ |
15,354.7 |
|
|
$ |
6,516.6 |
|
Less: Syndications/sell downs (1) |
|
|
6,036.0 |
|
|
|
14,111.8 |
|
|
|
5,558.0 |
|
Total new investment commitments |
|
$ |
1,082.2 |
|
|
$ |
1,242.9 |
|
|
$ |
958.6 |
|
Principal amount of investments funded: |
|
|
|
|
|
|
|
|
|
|||
First-lien |
|
$ |
735.6 |
|
|
$ |
823.9 |
|
|
$ |
753.4 |
|
Second-lien |
|
|
18.9 |
|
|
|
2.1 |
|
|
|
8.4 |
|
Mezzanine |
|
|
13.0 |
|
|
|
1.1 |
|
|
|
32.2 |
|
Equity and other |
|
|
11.6 |
|
|
|
10.8 |
|
|
|
12.8 |
|
Structured Credit |
|
|
114.9 |
|
|
|
1.0 |
|
|
|
1.6 |
|
Total |
|
$ |
894.0 |
|
|
$ |
838.9 |
|
|
$ |
808.4 |
|
Principal amount of investments sold or repaid: |
|
|
|
|
|
|
|
|
|
|||
First-lien |
|
$ |
1,166.1 |
|
|
$ |
717.3 |
|
|
$ |
460.3 |
|
Second-lien |
|
|
3.4 |
|
|
|
— |
|
|
|
— |
|
Mezzanine |
|
|
— |
|
|
|
4.9 |
|
|
|
— |
|
Equity and other |
|
|
7.9 |
|
|
|
13.6 |
|
|
|
6.0 |
|
Structured Credit |
|
|
18.7 |
|
|
|
57.9 |
|
|
|
2.8 |
|
Total |
|
$ |
1,196.1 |
|
|
$ |
793.7 |
|
|
$ |
469.1 |
|
Number of new investment commitments in |
|
|
65 |
|
|
|
34 |
|
|
|
30 |
|
Average new investment commitment amount in |
|
$ |
14.2 |
|
|
$ |
30.4 |
|
|
$ |
29.2 |
|
Weighted average term for new investment |
|
|
6.4 |
|
|
|
6.2 |
|
|
|
6.0 |
|
Percentage of new debt investment commitments |
|
|
97.8 |
% |
|
|
87.6 |
% |
|
|
99.5 |
% |
Percentage of new debt investment commitments |
|
|
2.2 |
% |
|
|
12.4 |
% |
|
|
0.5 |
% |
Weighted average interest rate of new |
|
|
10.8 |
% |
|
|
10.9 |
% |
|
|
12.9 |
% |
Weighted average spread over reference rate of new |
|
|
7.1 |
% |
|
|
6.4 |
% |
|
|
7.6 |
% |
Weighted average interest rate on investments |
|
|
11.9 |
% |
|
|
13.0 |
% |
|
|
13.7 |
% |
and a weighted average term of 12.3 years.
9
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 $125 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 $125 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 740 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.
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 VanHorn, 469-621-2033
Sixth Street Specialty Lending
IRTSLX@sixthstreet.com
Media:
Patrick Clifford, 617-793-2004
Sixth Street
PClifford@sixthstreet.com
10