Blackstone Secured Lending Fund(US:BXSL)2025-05-07 10:02PART I FINANCIAL INFORMATION Item 1. Financial Statements Total net assets increased to $6.24 billion with a stable NAV per share of $27.39 as of March 31, 2025 Condensed Consolidated Statements of Assets and Liabilities Total assets reached $13.97 billion, driven by increased cash, while net assets grew to $6.24 billion Key Balance Sheet Items (As of March 31, 2025 vs December 31, 2024) | Item (in millions of U.S. dollars) | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Investments (at fair value) | 12,834.2 | 13,092.5 | ▼ | | Cash and Cash Equivalents | 965.0 | 229.6 | ▲ | | Total Assets | 13,968.8 | 13,472.2 | ▲ | | Total Debt | 7,383.1 | 7,056.1 | ▲ | | Total Liabilities | 7,727.9 | 7,395.7 | ▲ | | Total Net Assets | 6,240.9 | 6,076.5 | ▲ | | Net Asset Value (NAV) per Share | $27.39 | $27.39 | - | Condensed Consolidated Statements of Operations Q1 2025 total investment income rose 18% to $358 million, driving net investment income to $189 million Summary of Operations (For the three months ended March 31, 2025 vs 2024) | Item (in millions of U.S. dollars) | Q1 2025 | Q1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Investment Income | 357.8 | 304.0 | +17.7% | | Interest Income | 335.7 | 283.3 | +18.5% | | Total Expenses | 164.8 | 134.8 | +22.3% | | Interest Expense | 93.0 | 66.7 | +39.4% | | Net Investment Income | 188.8 | 165.8 | +13.9% | | Net Realized and Unrealized Gain (Loss) | (39.0) | 17.9 | N/A | | Net Increase in Net Assets from Operations | 149.8 | 183.8 | -18.5% | | Earnings Per Share (EPS) | $0.66 | $0.96 | -31.3% | Condensed Consolidated Statements of Cash Flows Net cash from operations was $425 million, and financing activities provided $310 million in Q1 2025 Cash Flow Summary (For the three months ended March 31, 2025 vs 2024) | Item (in millions of U.S. dollars) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 424.7 | (395.5) | | Net Cash Provided by Financing Activities | 310.1 | 388.3 | | Net Increase in Cash and Cash Equivalents | 734.8 | (7.2) | | Cash and Cash Equivalents at End of Period | 965.0 | 147.7 | Condensed Consolidated Schedules of Investments The $12.83 billion portfolio is dominated by first lien debt (98.2%) and is diversified across industries Portfolio by Investment Type (As of March 31, 2025) | Investment Type | Fair Value (in millions of U.S. dollars) | % of Total Portfolio | | :--- | :--- | :--- | | First Lien Debt | 12,602.9 | 98.2% | | Second Lien Debt | 118.5 | 0.9% | | Unsecured Debt | 13.7 | 0.1% | | Equity | 99.2 | 0.8% | | Total | 12,834.2 | 100.0% | Portfolio by Industry (Top 5) | Industry | % of Total Portfolio (March 31, 2025) | | :--- | :--- | | Software | 20.8% | | Healthcare Providers & Services | 9.5% | | Professional Services | 8.7% | | Insurance | 8.3% | | Commercial Services & Supplies | 8.2% | - As of March 31, 2025, four borrowers were on non-accrual status, representing 0.3% of the total investment portfolio at amortized cost272401 Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, related-party transactions, debt, fair value, and equity changes - The company pays its Advisor a management fee at an annual rate of 1.0% of average gross assets and an incentive fee subject to a 1.5% quarterly hurdle rate244245247 - As of March 31, 2025, total debt was $7.41 billion, and the asset coverage ratio was 184.2%, compliant with the 150% regulatory requirement294344 - The company declared a dividend of $0.77 per share and issued 5.76 million shares for net proceeds of $184.8 million through its "at-the-market" (ATM) program in Q1 2025359361 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 performance, highlighting investment income growth and strong liquidity Portfolio and Investment Activity Q1 2025 saw $756 million in new investment commitments, primarily in first lien debt Q1 2025 Investment Activity Summary (in millions of U.S. dollars) | Item | Amount | | :--- | :--- | | Beginning Total Investments | 13,193.2 | | New Investment Purchases | 689.2 | | Investment Sales or Repayments | (978.0) | | Ending Total Investments | 12,952.0 | - The weighted average yield on performing debt investments was 10.1% at amortized cost and 10.2% at fair value as of March 31, 2025394 - The weighted average annual revenue and EBITDA of portfolio companies were $818 million and $210 million, respectively, as of March 31, 2025397 Results of Operations Total investment income grew 18% to $358 million, while expenses rose 30% due to higher interest costs - Total investment income grew by 18%, driven by an increase in average investments from $10.15 billion to $12.96 billion year-over-year399 - Interest expense increased by 39% year-over-year, primarily due to a rise in average debt principal from $5.05 billion to $7.31 billion405 - The income-based incentive fee decreased to $34.3 million from $35.8 million due to the Incentive Fee Cap407 - No capital gains incentive fee was accrued this quarter, compared to $3.1 million in the prior-year period409 Financial Condition, Liquidity and Capital Resources The company maintains strong liquidity with $965 million in cash and $2.4 billion in undrawn credit - As of March 31, 2025, the company had $965 million in cash and cash equivalents and $2.4 billion in undrawn credit capacity424426 - The company's asset coverage ratio was 184.2%, compliant with the 150% regulatory requirement294423 - A shelf registration statement, effective until July 2025, allows for the issuance of various securities422 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company's primary market risk is interest rate risk, managed through floating-rate assets and derivatives Hypothetical Impact of Interest Rate Changes on Annual Net Income (in millions of U.S. dollars) | Basis Point Change in Rates | Impact on Interest Income | Impact on Interest Expense | Impact on Net Income | | :--- | :--- | :--- | :--- | | +300 bps | 387.9 | (88.7) | 299.2 | | +200 bps | 258.6 | (59.1) | 199.5 | | +100 bps | 129.3 | (29.6) | 99.7 | | -100 bps | (129.3) | 29.6 | (99.7) | | -200 bps | (258.1) | 59.1 | (199.0) | | -300 bps | (384.0) | 88.7 | (295.3) | - As of March 31, 2025, 99.8% of the company's debt investments at fair value bore floating interest rates447 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The company's co-CEOs and CFO concluded that disclosure controls and procedures are effective at a reasonable assurance level450 - There were no changes to internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, such controls451 PART II OTHER INFORMATION Item 1. Legal Proceedings The company is not currently involved in any material legal proceedings - The company is not currently a party to any material legal proceedings454 Item 1A. Risk Factors No material changes have occurred in the risk factors since the last annual report on Form 10-K - There have been no material changes from the risk factors discussed in the Annual Report for fiscal year 2024455 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the reporting period - None456 Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the reporting period - None457 Item 6. Exhibits Filed exhibits include supplemental indentures and CEO/CFO certifications required by the Sarbanes-Oxley Act - An Eighth Supplemental Indenture related to the 5.300% Notes due 2030 was filed461 - Certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act were filed461