Financial Performance - For the three and nine months ended September 30, 2024, the Company recorded $1.6 million and $3.8 million in non-recurring interest income, compared to $1.0 million and $14.4 million for the same periods in 2023[166]. - The Company incurred $3.9 million and $10.7 million in U.S. federal excise tax for the three and nine months ended September 30, 2024, compared to $5.0 million and $12.6 million for the same periods in 2023[176]. - For the three and nine months ended September 30, 2024, base management fees were $30.2 million and $84.3 million, respectively, compared to $24.2 million and $73.2 million for the same periods in 2023, with $6.1 million and $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 $38.2 million and $111.4 million, respectively, compared to $33.4 million and $98.3 million for the same periods in 2023, with $4.8 million and $14.0 million waived in 2023[203]. - The Company reported a net increase in net assets resulting from operations of $531.6 million for the nine months ended September 30, 2024, compared to $454.6 million for the same period in 2023[311]. - Total investment income increased to $343.2 million for the three months ended September 30, 2024, an increase of $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 $974.2 million, an increase of $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 $11,978,616, with a cost of $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 $990.3 million for the three months ended September 30, 2024, compared to $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 $7,300 million, with an outstanding 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 $6,299.6 million, compared to $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 $233.8 million, compared to $198.1 million for the same period in 2023, representing an 18.0% increase[289]. - The Company had unfunded commitments of $1,850 million as of September 30, 2024, compared to $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 $461.4 million for the nine months ended September 30, 2024, with a per share amount 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