Sixth Street Specialty Lending, Inc. ( (TSLX) ) has released its Q4 earnings. Here is a breakdown of the information Sixth Street Specialty Lending, Inc. presented to its investors.
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Sixth Street Specialty Lending, Inc. is a specialty finance company focused on lending to middle-market companies in the United States, primarily through direct originations of senior secured loans. Known for being a business development company, it is managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of the global investment firm Sixth Street.
Sixth Street Specialty Lending, Inc. has reported its financial results for the full year and fourth quarter of 2024, declaring a base dividend of $0.46 per share for the first quarter of 2025 and a supplemental dividend of $0.07 for the fourth quarter of 2024. The company’s net investment income per share stood at $2.39 for the year and $0.62 for the fourth quarter, reflecting a favorable impact from higher interest rates and increased activity-based fee income.
Key financial highlights include a return on equity of 14.1% for net investment income and 12.0% for net income for the full year. The company’s net asset value per share increased slightly from $17.04 to $17.16 over the past year. Additionally, new investment commitments for 2024 reached $1,242.9 million, with significant funding in both new and existing portfolio companies.
The company’s portfolio mainly consists of first-lien debt investments, with 97.2% of debt investments bearing interest at floating rates. The weighted average yield of debt and income-producing securities was 12.3% at fair value. As of December 31, 2024, the Company maintained a strong liquidity position with $674.2 million of undrawn capacity on its revolving credit facility.
Looking forward, Sixth Street Specialty Lending, Inc. is in the process of amending and extending its revolving credit facility, aiming to enhance its asset-liability matching and potentially lower costs. The company remains committed to its strategy of generating income through direct lending to middle-market companies and continues to leverage the resources of its parent firm, Sixth Street, to drive growth.
