Leadership Transition
Bo Stanley has been announced as Co-CEO of Sixth Street Specialty Lending, Inc., succeeding Joshua Easterly who will step down as CEO but continue to serve as Chairman of SLX and Co-President and Co-Chief Investment Officer of the broader Sixth Street platform.
Q3 Financial Performance
Reported third quarter adjusted net investment income of $0.53 per share or an annualized return on equity of 12.3%. Adjusted net income was $0.46 per share or an annualized return on equity of 10.8%.
Dividend Declaration
The Board approved a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.03 per share related to Q3 earnings.
Investment Activity
Provided total commitments of $388 million and total fundings of $352 million across new investments, upsizes, and structured credit investments. The largest investment was in Walgreens, with a $2.5 billion term loan.
Portfolio Stability
Net asset value per share has grown by 1.9% since the interest rate hiking cycle began, representing significant outperformance compared to the average decline of 8.5% for public BDC peers.
Credit Quality
Overall portfolio performance remains strong with a weighted average rating of 1.12 on a scale of 1 to 5. Only 0.6% of the portfolio is on nonaccrual status.