Blackstone Secured Lending Fund(US:BXSL)2024-05-08 10:18Financial Performance - For the three months ended March 31, 2024, the Company recorded $1.9 million in non-recurring interest income, compared to $0.4 million for the same period in 2023, representing a 375% increase [249]. - The Company accrued income-based incentive fees of $35.8 million for the three months ended March 31, 2024, compared to $30.4 million for the same period in 2023, reflecting a 17.8% increase [266]. - For the three months ended March 31, 2024, the Company incurred $3.4 million in U.S. federal excise tax, compared to $2.6 million for the same period in 2023 [281]. - Base management fees for the three months ended March 31, 2024, were $26.0 million, an increase from $24.7 million in the same period of 2023, with $0.0 million and $6.2 million waived respectively [289]. - The Company accrued capital gains incentive fees of $3.1 million for the three months ended March 31, 2024, while reversing previously accrued fees of $(1.6) million for the same period in 2023 [295]. - For the three months ended March 31, 2024, the net increase in net assets resulting from operations was $183.8 million, compared to $138.8 million for the same period in 2023, representing a 32.4% increase [360]. - Earnings per common share (basic and diluted) rose to $0.96 for the three months ended March 31, 2024, up from $0.86 in the same period of 2023, reflecting a 11.6% increase [360]. - Net investment income after excise tax for the three months ended March 31, 2024, was $165.85 million, compared to $149.18 million for the same period in 2023, an increase of approximately 11.2% [410]. - Total investment income for the three months ended March 31, 2024, was $303.96 million, up from $264.94 million in the same period of 2023, reflecting a growth of about 14.7% [407]. Investment and Asset Management - The Company has commitments and risks from investment transactions, including those involving derivative instruments, which are subject to various market and credit risks [269]. - The fair value of the Company's investments may fluctuate significantly due to market conditions, with potential material differences from recorded values [245]. - The Company recognizes dividend income on preferred equity securities on an accrual basis, contingent on expected collectability [273]. - The Company has loans with payment-in-kind (PIK) provisions, which are recorded as interest income but may be placed on non-accrual status if not expected to be realized [272]. - The total cost of investments as of March 31, 2024, is $10,496,753, reflecting a total fair value of $10,439,173 [329]. - The total investments as of March 31, 2024, include $10,287,119 in first lien debt, $41,515 in second lien debt, and $11,859 in unsecured debt [329]. - The fair value of total investments as of December 31, 2023, was $9,710,582, with first lien debt at $9,533,700 and second lien debt at $41,515 [337]. - The fair value of equity investments increased from $94,940 to $98,680 during the same period [306]. - The weighted average yield on new investments was 11.4% for the three months ended March 31, 2024, down from 12.6% in the same period of 2023 [402]. - The number of portfolio companies increased to 210 as of March 31, 2024, compared to 196 at the end of December 31, 2023 [402]. Tax and Regulatory Compliance - The Company is subject to a 4% nondeductible federal excise tax on certain undistributed income unless specific distribution requirements are met [253]. - The Company must distribute at least 90% of its investment company taxable income to maintain its RIC status, which affects its tax obligations [279]. - The Company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained, impacting financial statements and tax expenses [252]. - The adoption of ASU 2022-03 did not have a material impact on the Company's condensed consolidated financial statements [283]. Debt and Financing - The Jackson Hole Funding Facility has a maximum commitment amount of $500 million, potentially expandable to $900 million, with a maturity date of May 17, 2027 [355]. - The Revolving Credit Facility includes funded term loans totaling $385 million and allows for letters of credit up to $175 million, with availability terminating on June 28, 2027 [356]. - The total amount outstanding for the Jackson Hole Funding Facility was $387.9 million as of March 31, 2024, compared to $233.0 million as of December 31, 2023, marking a 66.6% increase [385]. - The Breckenridge Funding Facility had an outstanding amount of $824.4 million as of March 31, 2024, up from $741.7 million as of December 31, 2023, which is an increase of 11.1% [385]. - The Big Sky Funding Facility's outstanding amount was $500.0 million as of March 31, 2024, compared to $480.9 million as of December 31, 2023, representing a 4.6% increase [385]. - The Revolving Credit Facility's outstanding amount increased to $785.7 million as of March 31, 2024, from $682.3 million as of December 31, 2023, indicating a 15.1% increase [385]. - The company's asset coverage ratio was 197.3% as of March 31, 2024, compared to 200.3% as of December 31, 2023 [340]. - The fair value of the company's SPV Financing Facilities approximates their carrying value as of March 31, 2024, due to variable interest rates based on selected short-term rates [366]. Shareholder Information - The company declared a distribution of $0.77 per share, payable on or about July 26, 2024 [419]. - The company did not repurchase any shares under the 10b-18 Plan during the three months ended March 31, 2024 [384]. - The share repurchase plan authorized up to $250 million in buybacks, which was not renewed and terminated on February 22, 2024 [490]. - The company's net assets at the end of the preceding quarter are compared to a hurdle rate of return of 1.5% per quarter [316]. - The ratio of net expenses to average net assets improved to 10.7%, down from 11.7% in the previous year [416]. - The company had 191,874,419 shares outstanding at the end of the period, an increase from 160,571,371 shares in the previous year [416]. - Net asset value increased to $26.87 per share, up from $26.10 in the previous year, representing a growth of 2.95% [416]. - The portfolio turnover rate increased to 1.8%, compared to 1.1% in the previous year [416]. - The company experienced a net change in unrealized appreciation of $6,984 for the period ended March 31, 2024 [353].