Sixth Street Specialty Lending, Inc. Reports Full Year and Fourth Quarter 2024 Earnings Results; Declares a First Quarter Base Dividend Per Share of $0.46, and a Fourth Quarter Supplemental Dividend Per Share of $0.07

Rhea-AI Summary

Sixth Street Specialty Lending (NYSE: TSLX) has announced its financial results for the full year and fourth quarter ended December 31, 2024. The company has declared a first quarter base dividend of $0.46 per share and a fourth quarter supplemental dividend of $0.07 per share.

The company will host a conference call on February 14, 2025, at 8:30 a.m. Eastern Time to discuss these results. The call will be available in listen-only mode through TSLX's website, accompanied by a complementary slide presentation.

Positive

• Declared Q1 2025 base dividend of $0.46 per share
• Additional supplemental dividend of $0.07 per share for Q4 2024

Negative

• None.

Insights

Financial Analyst

The announced dividend structure reveals important insights about TSLX's financial strength and earnings generation capacity. The $0.46 base quarterly dividend demonstrates management's confidence in the sustainability of their core earnings, while the $0.07 supplemental dividend indicates excess earnings beyond their regular distribution requirements.

For BDCs like TSLX, which are required to distribute at least 90% of their taxable income to shareholders, the ability to maintain both base and supplemental dividends is particularly noteworthy in the current market environment. The supplemental dividend specifically suggests that the company's net investment income is exceeding their base dividend coverage, indicating strong underlying portfolio performance and effective interest rate management.

The combined quarterly distribution of $0.53 per share represents an attractive yield relative to the current share price, positioning TSLX competitively within the BDC sector. This dividend structure reflects a balanced approach between providing reliable shareholder returns through the base dividend while sharing additional earnings through the supplemental component, which helps maintain flexibility in varying market conditions.

The timing of this announcement, coming alongside their full year and Q4 2024 results, suggests management has clear visibility into their near-term earnings potential and portfolio performance. This is particularly relevant given the current interest rate environment and its impact on BDCs' net interest margins.

NEW YORK--(BUSINESS WIRE)-- Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today reported financial results for the full year and fourth quarter ended December 31, 2024. Please view a printable version of the 2024 Full Year and Fourth Quarter Results.

Conference Call Information:

A conference call to discuss the Company’s financial results will be held at 8:30 a.m. Eastern Time on February 14, 2025. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX’s website at https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations. The Events & Presentations page of the Investor Resources section of TSLX’s website also includes a slide presentation that complements the Earnings Conference Call. Please visit the website to test your connection before the webcast.

Research analysts who wish to participate in the conference call must first register at https://register.vevent.com/register/BId4da19d376e74d5e9bc3ec09781e87fc. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call.

Replay Information:

A recorded version will be available under the same webcast link (https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations) following the conclusion of the conference call.

Please direct any questions regarding the conference call to TSLX Investor Relations, IRTSLX@sixthstreet.com.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The Company has elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. The Company is externally managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of Sixth Street and a Securities and Exchange Commission (“SEC”) registered investment adviser. The Company leverages the deep investment, sector, and operating resources of Sixth Street, a global investment firm with over $100 billion in assets under management and committed capital. For more information, visit the Company’s website at https://sixthstreetspecialtylending.com.

About Sixth Street

Sixth Street is a global investment firm with over $100 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 650 team members including over 250 investment professionals around the world. For more information, visit https://sixthstreet.com or follow Sixth Street on LinkedIn.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements,” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which relate to future events or the Company’s future performance or financial condition. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as otherwise required by federal securities laws, the Company assumes no obligation to update any such forward-looking statements, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

Adjusted net investment income and adjusted net income are each non-GAAP financial measures, which represent net investment income and net income, respectively, in each case less the impact of accrued capital gains incentive fee expenses. The Company believes that adjusted net investment income and adjusted net income provide useful information to investors regarding the fundamental earnings power of the business, and these figures are used by the Company to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213907383/en/

Investors:

Cami VanHorn, 469-621-2033

Sixth Street Specialty Lending

IRTSLX@sixthstreet.com

Media:

Patrick Clifford, 617-793-2004

Sixth Street

PClifford@sixthstreet.com

Source: Sixth Street Specialty Lending, Inc.

FAQ

What dividends did TSLX declare for Q1 2025 and Q4 2024?

TSLX declared a base dividend of $0.46 per share for Q1 2025 and a supplemental dividend of $0.07 per share for Q4 2024.

When will TSLX hold its Q4 2024 earnings conference call?

TSLX will hold its Q4 2024 earnings conference call on February 14, 2025, at 8:30 a.m. Eastern Time.

How can investors access TSLX's Q4 2024 earnings call?

Investors can access the earnings call in listen-only mode through TSLX's website at their Investor Resources section, along with accompanying presentation slides.

What is the total dividend payout for TSLX shareholders combining base and supplemental dividends?

The total dividend payout combines a $0.46 base dividend and $0.07 supplemental dividend, totaling $0.53 per share.