Business development companies, or BDCs, benefited greatly from the rising rate era. However, with the Fed having begun lowering rates in September '24, the market has been taking a more cautious approach to the BDC industry. The main worry is that BDCs' earnings will decline inWith Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at ...

When I previously covered Sixth Street Specialty Lending (NYSE: TSLX ), I issued a buy rating because of the consistent earnings and price range. However, my outlook has changed, and I am downgrading my rating to a hold becauseFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 10 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles - seeking ...

Financial Data and Key Metrics Changes - Adjusted net investment income per share for Q3 2024 was $0.57, with an annualized return on equity of 13.2% [8] - Adjusted net income per share was $0.41, corresponding to an annualized return on equity of 9.6% [8] - Net investment income for the quarter was $0.59 per share, while net income per share was $0.44, reflecting the impact of non-cash accrued capital gains incentive expense [8][11] - Net asset value (NAV) per share decreased to $17.12 from $17.19 as of June 30, but increased from $16.97 over the last 12 months [15] Business Line Data and Key Metrics Changes - The company closed $269 million in commitments across eight new investments and upsizes to four existing portfolio companies during Q3 [19] - The weighted average yield on debt and income-producing securities at amortized costs decreased from 13.9% to 13.4% [26] - Non-accruals represented 1.9% of the portfolio at fair value, with one new investment added to non-accrual status in Q3 [25] Market Data and Key Metrics Changes - The weighted average interest coverage on the core portfolio improved from 2.1 times to 2.2 times quarter-over-quarter [25] - The company reported that 24% of BDC portfolios based on count had spreads below 550 basis points as of Q2 2024, compared to only 7% in its own portfolio [14] Company Strategy and Development Direction - The company continues to focus on investing at the top of the capital structure, with 100% of Q3 fundings in first lien positions [19] - The strategy includes leveraging sector themes and deep relationships to source unique investment opportunities [20] - The company aims to maintain a disciplined capital allocation approach, as evidenced by the lower percentage of sub-550 deals in its portfolio [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the lower cost of capital should improve the cash flow profile of borrowers, benefiting corporate credit and activity levels [17] - The company anticipates a more active M&A environment as rates decline, although significant increases in deal flow may take time [18] - Management expressed confidence in the overall credit quality of the portfolio, with no credit names below 90% [53] Other Important Information - The company declared a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.05 per share related to Q3 earnings [15] - The company has significant liquidity with nearly $1.1 billion of unfunded revolver capacity at quarter end [28] Q&A Session Summary Question: Details on non-sponsored business activity - Management indicated that the non-sponsored business was approximately 50% of total transactions this quarter, with significant activity in non-sponsored deals like Belk and Arrowhead [42] Question: Impact of election on M&A activity - Management noted that while there was a cautious tone leading into the election, the primary drivers of M&A activity would be interest rates and valuation unlocks [49] Question: Improvement in interest coverage - Interest coverage improved from 2.1 times to 2.2 times, attributed to earnings growth and a delayed impact from lower base rates [51] Question: Credit outlook and amendment activity - Amendment activity was low, with all amendments being positive credit amendments, indicating strong credit quality [52] Question: Risks of high rates on non-accruals - Management acknowledged the risk of surprises in non-accruals but indicated that fundamentally challenged names were already identified [62]

Quarter Ended September 30, 2024 EARNINGS PRESENTATION S I X T H S T R E E T S P E C I A L T Y L E N D I N G DISCLAIMER AND FORWARD-LOOKING STATEMENT References in this presentation ("Presentation") to "TSLX," "we," "us," "our" and "the Company" refer to Sixth Street Specialty Lending, Inc. This Presentation includes forward-looking statements about TSLX that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, ...

Sixth Street (TSLX) reported $119.22 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.2%. EPS of $0.57 for the same period compares to $0.60 a year ago.The reported revenue represents a surprise of -0.52% over the Zacks Consensus Estimate of $119.85 million. With the consensus EPS estimate being $0.58, the EPS surprise was -1.72%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Sixth Street (TSLX) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.72%. A quarter ago, it was expected that this business development company would post earnings of $0.57 per share when it actually produced earnings of $0.58, delivering a surprise of 1.75%.Over the last four quart ...

Exhibit 99.1 K THIRD QUARTER 2024 EARNINGS RESULTS Sixth Street Specialty Lending, Inc. Reports Third Quarter Results; Declares a Fourth Quarter Base Dividend Per Share of $0.46, and a Third Quarter Supplemental Dividend Per Share of $0.05. NEW YORK — November 5, 2024 — Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the "Company") today reported net investment income of $0.59 per share and net income of $0.44 per share for the third quarter ended September 30, 2024. These results correspond to an annu ...

Our investment activity for the three months ended September 30, 2024 and 2023 is presented below (information presented herein is at par value unless otherwise indicated). As of September 30, 2024 and December 31, 2023, our investments consisted of the following: The weighted average yields and interest rates of our performing debt investments at fair value as of September 30, 2024 and December 31, 2023 were as follows: 55 Results of Operations | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----- ...

Sixth Street Specialty Lending (NYSE: TSLX ) positions itself as one of the safest business development companies regarding portfolio structure and regular dividend safety. As we will later review the numbers, that's not an unreasonable stance given its regular (base) dividend coverage, which ensures its resilience Welcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I've built a rock-solid pil ...

S I X T H S T R E E T S P E C I A L T Y L E N D I N G Quarter Ended June 30, 2024 EARNINGS PRESENTATION DISCLAIMER AND FORWARD-LOOKING STATEMENT References in this presentation ("Presentation") to "TSLX," "we," "us," "our" and "the Company" refer to Sixth Street Specialty Lending, Inc. This Presentation includes forward-looking statements about TSLX that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estim ...