Sixth Street Specialty Lending, Inc. Files 2023 Annual Report

TL;DR

<b>Sixth Street Specialty Lending, Inc. filed its 2023 10-K report detailing its investment portfolio and financial performance.</b>

AI Summary

Sixth Street Specialty Lending, Inc. (TSLX) filed a Annual Report (10-K) with the SEC on February 15, 2024. The company's total investments as of December 31, 2023, are detailed across various segments. Specific debt investments include loans to Neuintel, LLC with a $56,400 par value and an interest rate of 10.76%, and Omnigo Software, LLC with a $39,943 par value and an interest rate of 11.96%. Equity and other investments include structured products like Southwick Park CLO Ltd, Series 2019-4A with a reference rate and spread of L + 6.25% and an interest rate of 8.96%. The filing references specific accounting standards for interest expense and unrealized gains/losses on derivatives. Key dates mentioned include December 31, 2023, as the fiscal year end and February 15, 2024, as the filing date.

Why It Matters

For investors and stakeholders tracking Sixth Street Specialty Lending, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sixth Street Specialty Lending's investment activities and financial health for the fiscal year ended December 31, 2023. Investors can analyze the specific details of the company's debt and equity investments, including interest rates, par values, and acquisition dates, to assess portfolio performance and risk.

Risk Assessment

Risk Level: medium — Sixth Street Specialty Lending, Inc. shows moderate risk based on this filing. The company's investment portfolio includes various debt and equity instruments, some of which carry specific risks related to their underlying assets and market conditions, as indicated by the detailed investment descriptions.

Analyst Insight

Review the detailed breakdown of debt and equity investments to understand the specific risks and potential returns within the portfolio.

Key Numbers

• 56,400 — Par Value (Neuintel, LLC first-lien loan)
• 10.76% — Interest Rate (Neuintel, LLC first-lien loan)
• 39,943 — Par Value (Omnigo Software, LLC first-lien loan)
• 11.96% — Interest Rate (Omnigo Software, LLC first-lien loan)
• 8.96% — Interest Rate (Southwick Park CLO Ltd, Series 2019-4A)
• 5.21% — Interest Rate (Eaton CLO Ltd, Series 2015-1A)
• 12.10% — Interest Rate (Higher Logic, LLC first-lien loan)
• 11.73% — Interest Rate (PrimePay Intermediate, LLC first-lien loan)

Key Players & Entities

• Sixth Street Specialty Lending, Inc. (company) — Filer name
• TSLX (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-15 (date) — Filing date
• Neuintel, LLC (company) — Debt investment
• Omnigo Software, LLC (company) — Debt investment
• Southwick Park CLO Ltd, Series 2019-4A (company) — Structured product investment
• Eaton CLO Ltd, Series 2015-1A (company) — Structured product investment

FAQ

Risk Factors

• Investment Portfolio Risks [medium — financial]: The company's investments in debt and equity securities are subject to various market and credit risks, which could impact their value and the company's financial performance.
• Regulatory Compliance [medium — regulatory]: As a specialty lending company, TSLX is subject to various regulations that could change and affect its operations and profitability.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share TSLX The New York Stock E
• $18.69 — ed on the closing price on that date of $18.69 on The New York Stock Exchange, was app
• $31.5 billion — 2023, we have originated approximately $31.5 billion aggregate principal amount of investmen
• $10.0 billion — investments and retained approximately $10.0 billion aggregate principal amount of these inv
• $10 million — eve is a useful proxy for cash flow, of $10 million to $250 million, although we may invest
• $250 m — proxy for cash flow, of $10 million to $250 million, although we may invest in larger
• $230.3 million — had weighted average annual revenue of $230.3 million and weighted average annual EBITDA of $
• $79.3 million — n and weighted average annual EBITDA of $79.3 million. We generate revenues primarily in th
• $24.1 million — r portfolio companies was approximately $24.1 million based on fair value. Portfolio companie
• $34.3 million — g portfolio companies was approximately $34.3 million as of December 31, 2023. The companies
• $75 billion — a global investment business with over $75 billion of assets under management as of Decemb

Filing Documents

• tslx-20231231.htm (10-K) — 10430KB
• tslx-ex4_8.htm (EX-4.8) — 32KB
• tslx-ex21_1.htm (EX-21.1) — 7KB
• tslx-ex23_1.htm (EX-23.1) — 4KB
• tslx-ex31_1.htm (EX-31.1) — 14KB
• tslx-ex31_2.htm (EX-31.2) — 14KB
• tslx-ex32.htm (EX-32) — 11KB
• tslx-ex97_1.htm (EX-97.1) — 37KB
• tslx-ex99_1.htm (EX-99.1) — 7KB
• img142218496_0.jpg (GRAPHIC) — 705KB
• 0000950170-24-015845.txt (&nbsp;) — 43632KB
• tslx-20231231.xsd (EX-101.SCH) — 2997KB
• tslx-20231231_htm.xml (XML) — 9701KB

Business

Business 4 ITEM 1A.

Risk Factors

Risk Factors 27 ITEM 1B. Unresolved Staff Comments 55 ITEM 1C. Cybersecurity 55 ITEM 2.

Properties

Properties 56 ITEM 3.

Legal Proceedings

Legal Proceedings 56 ITEM 4. Mine Safety Disclosures 56 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 57 ITEM 6. Reserved 59 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 60 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 84 ITEM 8. Consolidated Financial Statements and Supplementary Data F- 1 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 86 ITEM 9A.

Controls and Procedures

Controls and Procedures 86 ITEM 9B. Other Information 86 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 86 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 87 ITEM 11.

Executive Compensation

Executive Compensation 87 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 87 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 87 ITEM 14. Principal Accountant Fees and Services 87 PART IV ITEM 15. Exhibits and Financial Statement Schedules 88 ITEM 16. Form 10-K Summary 91 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Annual Report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "would," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In addition to factors previously identified elsewhere in the reports and other documents Sixth Street Specialty Lending, Inc. has filed with the Securities and Exchange Commission, or SEC, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: an economic downturn, could impair our portfolio companies' abilities to continue to operate, which could lead to the loss of some or all of our investments in those portfolio companies; such an economic downturn could disproportionately impact the companies in which we have invested and others that we intend to target for investment, potential

View Full Filing

View this 10-K filing on SEC EDGAR