TSLX Q3 2024 10-Q: Investment Gains & Losses Detailed

TL;DR

TSLX 10-Q out: Unrealized/realized gains & losses on investments detailed. Check the links for specifics.

AI Summary

Sixth Street Specialty Lending, Inc. (TSLX) filed its 10-Q for the period ending September 30, 2024. The company reported a net change in unrealized gains and losses on investments and foreign currency translation, as well as net realized gains and losses on investments and foreign currency translation. Specific details on these financial movements are available via provided URLs within the filing.

Why It Matters

This filing provides investors with a detailed look at the performance of Sixth Street Specialty Lending's investment portfolio, including realized and unrealized gains and losses, which directly impacts the company's profitability and shareholder value.

Risk Assessment

Risk Level: medium — The company's performance is tied to the volatility of its investment portfolio, which can lead to significant fluctuations in realized and unrealized gains and losses.

Key Numbers

• $2.2 — Second-lien loan (Associated with Equinox Holdings, Inc., indicating a specific debt investment.)

Key Players & Entities

• Sixth Street Specialty Lending, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241105 (date) — Filing date
• TPG Specialty Lending, Inc. (company) — Former company name
• Equinox Holdings, Inc. (company) — Mentioned in relation to a debt investment

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share TSLX The New York Stock E

Filing Documents

• tslx-20240930.htm (10-Q) — 8640KB
• tslx-ex31_1.htm (EX-31.1) — 15KB
• tslx-ex31_2.htm (EX-31.2) — 15KB
• tslx-ex32.htm (EX-32) — 13KB
• 0000950170-24-121434.txt ( ) — 36131KB
• tslx-20240930.xsd (EX-101.SCH) — 1707KB
• tslx-20240930_htm.xml (XML) — 8779KB

Financial Statements

Financial Statements 4 Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 4 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 5 Consolidated Schedules of Investments as of September 30, 2024 (Unaudited) and December 31, 2023 6 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 22 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited) 24

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 25 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 70 Item 4.

Controls and Procedures

Controls and Procedures 71 PART II. OTHER INFORMATION 72 Item 1.

Legal Proceedings

Legal Proceedings 72 Item 1A.

Risk Factors

Risk Factors 72 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 72 Item 3. Defaults Upon Senior Securities 72 Item 4. Mine Safety Disclosures 72 Item 5. Other Information 72 Item 6. Exhibits 73

SIGNATURES

SIGNATURES 74 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This 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. (the "Company", "we", "us", or "our") 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, which could impair our portfolio companies' abilities to continue to operate, and 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, potentially causing us to experience a decrease in investment opportunities and diminished demand for capital from these companies; such an economic downturn could also impact availability and pricing of our financing; an inability to access the capital markets could impair our ability to raise capital and ou

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements Sixth Street Specialty Lending, Inc. Consolidated Ba lance Sheets (Amounts in thousands, except share and per share amounts) (Unaudited) September 30, December 31, 2024 2023 Assets Investments at fair value Non-controlled, non-affiliated investments (amortized cost of $ 3,345,221 and $ 3,172,853 , respectively) $ 3,375,851 $ 3,223,152 Controlled, affiliated investments (amortized cost of $ 85,869 and $ 78,159 , respectively) 65,224 59,913 Total investments at fair value (amortized cost of $ 3,431,090 and $ 3,251,012 , respectively) 3,441,075 3,283,065 Cash and cash equivalents (restricted cash of $ 23,197 and $ 23,979 , respectively) 29,727 25,196 Interest receivable 34,756 27,969 Prepaid expenses and other assets 24,306 7,578 Total Assets $ 3,529,864 $ 3,343,808 Liabilities Debt (net of deferred financing costs of $ 25,481 and $ 21,930 , respectively) $ 1,870,445 $ 1,780,307 Management fees payable to affiliate 12,699 11,962 Incentive fees on net investment income payable to affiliate 11,175 11,451 Incentive fees on net capital gains accrued to affiliate 6,022 10,446 Other payables to affiliate 5,619 2,802 Other liabilities 26,723 30,465 Total Liabilities 1,932,683 1,847,433 Commitments and contingencies (Note 8) Net Assets Preferred stock, $ 0.01 par value; 100,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.01 par value; 400,000,000 shares authorized, 93,981,871 and 88,493,749 shares issued, respectively; and 93,317,621 and 87,829,499 shares outstanding, respectively 940 885 Additional paid-in capital 1,516,201 1,405,173 Treasury stock at cost; 664,250 and 664,250 shares held, respectively ( 10,459 ) ( 10,459 ) Distributable earnings 90,499 100,776 Total Net Assets 1,597,181 1,496,375 Total Liabilities and Net Assets $ 3,529,864 $

View Full Filing

View this 10-Q filing on SEC EDGAR