Financial Performance - For the three and nine months ended September 30, 2024, the Company recorded 3.8 million in non-recurring interest income, compared to 14.4 million for the same periods in 2023[166]. - The Company incurred 10.7 million in U.S. federal excise tax for the three and nine months ended September 30, 2024, compared to 12.6 million for the same periods in 2023[176]. - For the three and nine months ended September 30, 2024, base management fees were 84.3 million, respectively, compared to 73.2 million for the same periods in 2023, with 18.3 million waived in 2023[186]. - For the three and nine months ended September 30, 2024, the Company accrued income based incentive fees of 111.4 million, respectively, compared to 98.3 million for the same periods in 2023, with 14.0 million waived in 2023[203]. - The Company reported a net increase in net assets resulting from operations of 454.6 million for the same period in 2023[311]. - Total investment income increased to 59.3 million, or 21%, compared to the same period in the prior year[347]. - Total investment income for the nine months ended September 30, 2024, was 135.0 million, or 16%, compared to the same period in the prior year[349]. Investment Portfolio - As of September 30, 2024, the total investment portfolio at fair value was 12,006,522, indicating a slight decrease in value[217]. - The composition of the investment portfolio included 98.7% in first lien debt, 0.3% in second lien debt, 0.1% in unsecured debt, and 0.9% in equity[217]. - The geographic distribution of investments showed that 89.9% were in the United States, 7.8% in Europe, and 2.3% in Canada as of September 30, 2024[221]. - The industry composition revealed that 18.4% of investments were in software, followed by 10.2% in healthcare providers and services, and 8.9% in professional services[219]. - As of September 30, 2024, 99.8% of performing debt investments bore interest at a floating rate, while 0.2% bore interest at a fixed rate[223]. - The total amount of investments funded at principal was 351.6 million in the same period of 2023[344]. - The number of portfolio companies increased to 252 as of September 30, 2024, compared to 196 as of December 31, 2023[344]. Debt and Financing - The Company has loans with payment-in-kind (PIK) provisions, which are recorded as interest income at contractual rates and increase the loan principal[167]. - The Company must distribute at least 90% of its investment company taxable income to maintain its status as a RIC, avoiding corporate-level U.S. federal income taxes[174]. - The Company has a total committed principal of 6,402.7 million as of September 30, 2024[283]. - The average principal debt outstanding for the three months ended September 30, 2024, was 5,033.7 million for the same period in 2023, reflecting a 25.2% increase[287]. - The weighted average interest rate on all borrowings outstanding for the three months ended September 30, 2024, was 5.45%, up from 4.94% in the same period of 2023[285]. - The total interest expense for the nine months ended September 30, 2024, was 198.1 million for the same period in 2023, representing an 18.0% increase[289]. - The Company had unfunded commitments of 985.9 million as of December 31, 2023[290]. Management and Advisory - The Investment Advisory Agreement was most recently renewed on May 1, 2024, for a one-year period ending on May 31, 2025[182]. - The Waiver Period for management fees ended on October 28, 2023, during which the Adviser waived its right to receive fees above 0.75% of the average value of the Company's gross assets[185]. - The Administration Agreement was renewed on May 1, 2024, for a one-year period, providing administrative and compliance services[206]. - The Company approved a new administration agreement effective January 1, 2025, with Blackstone Private Credit Strategies LLC as the new administrator[327]. - Effective January 1, 2025, the New Adviser will become the company's investment adviser following the assignment of the Investment Advisory Agreement[326]. Shareholder Distributions - The Company intends to make quarterly distributions to shareholders, which will depend on earnings, financial condition, and compliance with applicable regulations[177]. - The Company declared total distributions of 2.31[301]. - The Company declared a distribution of $0.77 per share on November 12, 2024, payable on or about January 24, 2025[323]. - The Company issued a total of 553,799 shares through its Dividend Reinvestment Plan (DRIP) during the nine months ended September 30, 2024[307]. Risk Management - The Company has commitments and risks from investment transactions, including those involving derivative instruments, which are subject to market, credit, liquidity, and operational risks[161]. - The Company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained by tax authorities, with any penalties and interest included in tax expense[173]. - Significant increases in discount rates would lead to a significantly lower fair value measurement for investments[236]. - Future decreases in benchmark interest rates may adversely impact investment income, while increases could negatively affect free cash flow and credit quality of borrowers[351].
Blackstone Secured Lending Fund(BXSL) - 2024 Q3 - Quarterly Report