Sixth Street Specialty Lending, Inc. Prices Public Offering of $300.0 million 5.625% Unsecured Notes due 2030
Sixth Street Specialty Lending (NYSE:TSLX) has priced a public offering of $300.0 million in 5.625% unsecured notes due 2030. The notes will mature on August 15, 2030, with an option for early redemption at par plus a make-whole premium. The company plans to use the proceeds to pay down its revolving credit facility debt, while intending to make new investments through re-borrowing under the facility.
TSLX plans to enter an interest rate swap to align liability interest rates with its investment portfolio of predominantly floating rate loans. The offering, led by multiple joint book-running managers including BofA Securities, J.P. Morgan, SMBC Nikko, and Wells Fargo Securities, is expected to close on February 25, 2025, subject to customary closing conditions.
Sixth Street Specialty Lending (NYSE:TSLX) ha annunciato un'offerta pubblica di 300,0 milioni di dollari in note non garantite al 5,625% con scadenza nel 2030. Le note scadranno il 15 agosto 2030, con un'opzione di rimborso anticipato al valore nominale più un premio di make-whole. L'azienda prevede di utilizzare i proventi per ridurre il debito della sua linea di credito revolving, con l'intenzione di effettuare nuovi investimenti attraverso il riutilizzo dei fondi disponibili.
TSLX intende entrare in uno swap sui tassi d'interesse per allineare i tassi d'interesse delle passività con il suo portafoglio di investimenti, composto principalmente da prestiti a tasso variabile. L'offerta, guidata da più manager di book-running tra cui BofA Securities, J.P. Morgan, SMBC Nikko e Wells Fargo Securities, dovrebbe chiudersi il 25 febbraio 2025, soggetta a condizioni di chiusura consuete.
Sixth Street Specialty Lending (NYSE:TSLX) ha establecido un precio para una oferta pública de 300,0 millones de dólares en notas no garantizadas al 5,625% con vencimiento en 2030. Las notas vencerán el 15 de agosto de 2030, con una opción de redención anticipada al valor nominal más una prima de make-whole. La empresa planea utilizar los ingresos para reducir la deuda de su línea de crédito renovable, mientras que tiene la intención de realizar nuevas inversiones mediante la re-dispensación bajo la instalación.
TSLX planea entrar en un swap de tasas de interés para alinear las tasas de interés de sus pasivos con su cartera de inversiones compuesta predominantemente por préstamos a tasa flotante. La oferta, liderada por varios gerentes conjuntos de book-running, incluidos BofA Securities, J.P. Morgan, SMBC Nikko y Wells Fargo Securities, se espera que cierre el 25 de febrero de 2025, sujeto a condiciones de cierre habituales.
식스 스트리트 스페셜티 렌딩 (NYSE:TSLX)가 3억 달러 규모의 5.625% 무담보 채권 공모를 가격 책정했습니다 (2030년 만기). 이 채권은 2030년 8월 15일 만기되며, 액면가와 함께 전액 상환 프리미엄 옵션이 있습니다. 회사는 수익금을 회전 신용 시설 채무를 상환하는 데 사용할 계획이며, 시설 아래에서 재차 차입하여 새로운 투자를 할 의도입니다.
TSLX는 부채의 이자율을 주로 변동 금리 대출로 구성된 투자 포트폴리오와 일치시키기 위해 금리 스왑을 체결할 계획입니다. BofA Securities, J.P. Morgan, SMBC Nikko, Wells Fargo Securities를 포함한 여러 공동 북런닝 매니저가 이끄는 이번 공모는 2025년 2월 25일에 마감될 예정이며, 일반적인 마감 조건에 따라 진행됩니다.
Sixth Street Specialty Lending (NYSE:TSLX) a fixé le prix d'une offre publique de 300,0 millions de dollars en obligations non sécurisées à 5,625% arrivant à échéance en 2030. Les obligations arriveront à échéance le 15 août 2030, avec une option de remboursement anticipé à la valeur nominale plus une prime de make-whole. L'entreprise prévoit d'utiliser les produits pour rembourser sa dette de ligne de crédit renouvelable, tout en ayant l'intention de réaliser de nouveaux investissements par le biais d'un nouvel emprunt sous la ligne de crédit.
TSLX prévoit d'entrer dans un swap de taux d'intérêt pour aligner les taux d'intérêt de ses passifs avec son portefeuille d'investissement composé principalement de prêts à taux variable. L'offre, dirigée par plusieurs gestionnaires de book-running, dont BofA Securities, J.P. Morgan, SMBC Nikko et Wells Fargo Securities, devrait se clôturer le 25 février 2025, sous réserve des conditions de clôture habituelles.
Sixth Street Specialty Lending (NYSE:TSLX) hat ein öffentliches Angebot von 300,0 Millionen Dollar in unbesicherten Anleihen mit 5,625% und Fälligkeit 2030 festgelegt. Die Anleihen laufen am 15. August 2030 aus, mit einer Option auf vorzeitige Rückzahlung zum Nennwert zuzüglich einer Make-Whole-Prämie. Das Unternehmen plant, die Erlöse zur Tilgung seiner revolvierenden Kreditfazilität zu verwenden, mit der Absicht, neue Investitionen durch erneute Kreditaufnahme unter der Fazilität zu tätigen.
TSLX plant, einen Zinsswap einzugehen, um die Zinssätze der Verbindlichkeiten mit seinem Anlageportfolio, das überwiegend aus variabel verzinsten Darlehen besteht, in Einklang zu bringen. Das Angebot, das von mehreren Joint Book-Running-Managern, darunter BofA Securities, J.P. Morgan, SMBC Nikko und Wells Fargo Securities, geleitet wird, soll am 25. Februar 2025 abgeschlossen werden, vorbehaltlich der üblichen Abschlussbedingungen.
- Secured $300 million in long-term financing through notes offering
- Strategic interest rate swap planned to better align with floating rate loan portfolio
- Broad syndicate of major financial institutions supporting the offering
- Additional debt burden with 5.625% interest rate
- Increased leverage through revolving credit facility re-borrowing
Insights
This $300 million notes offering at
The fixed-rate nature of these notes, combined with the planned interest rate swap, creates an elegant liability management solution. By converting the fixed-rate notes to floating rate through the swap, TSLX achieves better asset-liability matching with its predominantly floating-rate loan portfolio, reducing interest rate risk exposure.
The transition from revolving credit facility to longer-term notes offers three key advantages:
- Extended debt maturity profile to 2030, reducing refinancing risk
- Increased funding diversity and reduced reliance on bank credit
- Enhanced financial flexibility through the ability to re-borrow under the revolving facility for new investments
The impressive syndicate of 18 financial institutions, led by top-tier banks, indicates strong market confidence in TSLX's credit quality and business model. The make-whole provision, while standard for investment-grade bonds, provides noteholder protection while maintaining TSLX's flexibility to refinance if market conditions become more favorable.
This offering strengthens TSLX's liquidity position and investment capacity without significantly altering its leverage profile, as proceeds are initially earmarked for revolving credit facility repayment. The ability to redeploy capital through the revolving facility maintains strategic agility in pursuing attractive investment opportunities.
TSLX expects to use the net proceeds of the offering to pay down outstanding debt under its revolving credit facility. However, through re-borrowing under the revolving credit facility, TSLX intends to make new investments in accordance with its investment objectives and strategies outlined in the preliminary prospectus supplement and the accompanying prospectus described below in greater detail.
In connection with the offering, TSLX intends to enter into an interest rate swap to better align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans.
BofA Securities, J.P. Morgan, SMBC Nikko and Wells Fargo Securities are acting as joint book-running managers for this offering. MUFG, Truist Securities, HSBC, Mizuho, Morgan Stanley, Citigroup, Goldman Sachs & Co. LLC and RBC Capital Markets are also acting as book-running managers for this offering. ICBC Standard Bank, Keefe, Bruyette & Woods, A Stifel Company, Oppenheimer & Co., Citizens Capital Markets, Raymond James, Ladenburg Thalmann, Comerica Securities and R. Seelaus & Co., LLC are acting as co-managers for this offering. The offering is expected to close on February 25, 2025, subject to the satisfaction of customary closing conditions.
Investors are advised to carefully consider the investment objectives, risks, charges and expenses of the Company before investing. The pricing term sheet dated February 18, 2025, the preliminary prospectus supplement dated February 18, 2025 and the accompanying prospectus dated December 22, 2023, each of which have been or will be filed with the Securities and Exchange Commission (“SEC”), contain this and other information about the Company and should be read carefully before investing.
The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of TSLX and are not soliciting an offer to buy such securities in any state or jurisdiction where such offer and sale is not permitted.
A shelf registration statement relating to these securities is on file with the SEC and is effective. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus, copies of which may be obtained from BofA Securities, Inc., NC1-022-02-425, 201 North Tryon Street,
About Sixth Street Specialty Lending, Inc.
TSLX is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements,” which relate to future events or the Company’s future performance or financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Company, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its 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 the Company’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in the Company’s filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which the Company makes them. The Company does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
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Investors:
Cami VanHorn
469-621-2033
IRTSLX@sixthstreet.com
Media:
Patrick Clifford
617-793-2004
pclifford@sixthstreet.com
Source: Sixth Street Specialty Lending, Inc.
FAQ
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