UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-36364
Sixth Street Specialty Lending, Inc.
(Exact name of registrant as specified in its charter)
Delaware
27-3380000
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
2100 McKinney Avenue, Suite 1500
Dallas, TX
75201
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (469) 621-3001
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
TSLX
The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares of the registrant’s common stock, $.01 par value per share, outstanding at May 5, 2026 was 95,019,600.
SIXTH STREET SPECIALTY LENDING, INC.
INDEX
PAGE
NO.
PART I.
FINANCIAL INFORMATION
4
Item 1.
Financial Statements
Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025
Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 (Unaudited)
5
Consolidated Schedules of Investments as of March 31, 2026 (Unaudited) and December 31, 2025
6
Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2026 and 2025 (Unaudited)
26
Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (Unaudited)
27
Notes to Consolidated Financial Statements (Unaudited)
28
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
53
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
74
Item 4.
Controls and Procedures
75
PART II.
OTHER INFORMATION
76
Legal Proceedings
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
77
SIGNATURES
78
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 (the “SEC”), the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
The “TSLX” and “TAO” marks are marks of Sixth Street.
3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
(Unaudited)
March 31, 2026
December 31, 2025
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $3,228,777 and $3,244,762, respectively)
$
3,240,271
3,288,945
Non-controlled, affiliated investments (amortized cost of $14,665 and $0, respectively)
14,665
—
Controlled, affiliated investments (amortized cost of $80,890 and $78,520, respectively)
58,505
58,372
Total investments at fair value (amortized cost of $3,324,332 and $3,323,282, respectively)
3,313,441
3,347,317
Cash and cash equivalents (restricted cash of $28,072 and $16,727, respectively)
29,178
19,662
Interest receivable
34,547
34,132
Prepaid expenses and other assets
15,983
20,544
Total Assets
3,393,149
3,421,655
Liabilities
Debt (net of deferred financing costs of $22,693 and $24,411, respectively)
1,803,391
1,743,234
Management fees payable to affiliate
12,275
12,794
Incentive fees on net investment income payable to affiliate
8,451
10,336
Incentive fees on net capital gains accrued to affiliate
Other payables to affiliate
2,808
3,166
Other liabilities
23,551
44,404
Total Liabilities
1,850,476
1,813,934
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, 95,683,850 and 95,369,400 shares issued, respectively; and 95,019,600 and 94,705,150 shares outstanding, respectively
957
954
Additional paid-in capital
1,541,068
1,535,583
Treasury stock at cost; 664,250 and 664,250 shares held, respectively
(10,459
)
Distributable earnings
11,107
81,643
Total Net Assets
1,542,673
1,607,721
Total Liabilities and Net Assets
Net Asset Value Per Share
16.24
16.98
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Operations
Three Months Ended
March 31, 2025
Income
Investment income from non-controlled, non-affiliated investments:
Interest from investments
81,807
104,192
Paid-in-kind interest income
6,969
5,360
Dividend income
237
908
Other income
2,181
3,459
Total investment income from non-controlled, non-affiliated investments
91,194
113,919
Investment income from non-controlled, affiliated investments:
223
Total investment income from non-controlled, affiliated investments
Investment income from controlled, affiliated investments:
1,971
2,429
9
1
Total investment income from controlled, affiliated investments
1,980
2,430
Total Investment Income
93,397
116,349
Expenses
Interest
28,258
32,971
Management fees
12,593
13,083
Incentive fees on net investment income
11,516
Incentive fees on net capital gains
(3,686
Professional fees
1,743
1,961
Directors’ fees
254
248
Other general and administrative
1,369
1,337
Total expenses
52,668
57,430
Management and incentive fees waived (Note 3)
(317
(409
Net Expenses
52,351
57,021
Net Investment Income Before Income Taxes
41,046
59,328
Income taxes, including excise taxes
1,204
1,350
Net Investment Income
39,842
57,978
Unrealized and Realized Gains (Losses)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments
(32,688
(9,438
Controlled, affiliated investments
(2,237
(1,379
Translation of other assets and liabilities in foreign currencies
8,401
(11,043
Total net change in unrealized gains (losses)
(26,524
(21,860
Realized gains (losses):
(39,257
1,115
Foreign currency transactions
(86
(278
Total net realized gains (losses)
(39,343
837
Total Net Unrealized and Realized Gains (Losses)
(65,867
(21,023
Increase (Decrease) in Net Assets Resulting from Operations
(26,025
36,955
Earnings per common share—basic and diluted
(0.27
0.39
Weighted average shares of common stock outstanding—basic and diluted
94,709,407
93,669,671
Consolidated Schedule of Investments as of March 31, 2026
(Amounts in thousands, except share amounts)
Company (1)
Investment
InitialAcquisitionDate
ReferenceRate andSpread
Interest Rate
AmortizedCost (2)(8)
Fair Value (9)
Percentageof Net Assets
Debt Investments
Business Services
Artisan Bidco, Inc.(3)
First-lien loan ($38,340 par, due 11/2029)
11/7/2023
SOFR + 7.00%
10.65
%
37,835
37,666
2.3
First-lien loan (EUR 17,336 par, due 11/2029)
E + 7.00%
9.03
18,383
19,625 (EUR 17,033)
1.3
First-lien revolving loan ($4,287 par, due 11/2029)
10.66
4,219
4,187
0.3
Azurite Intermediate Holdings, Inc. (3)
First-lien loan ($42,750 par, due 3/2031)
3/19/2024
SOFR + 6.00%
9.67
42,165
42,037
2.7
BCTO Ignition Purchaser, Inc. (3)
First-lien holdco loan ($56,017 par, due 10/2030)
4/18/2023
SOFR + 7.50%
11.17% PIK
55,135
56,157
3.6
Crewline Buyer, Inc.(3)
First-lien loan ($58,384 par, due 11/2030)
11/8/2023
SOFR + 6.75%
10.42
57,196
57,099
3.7
Elements Finco Limited (3)(4)
First-lien loan ($2,283 par, due 4/2031)
4/29/2024
SOFR + 5.25%
8.92% (incl. 2.25% PIK)
2,270
2,255
0.1
First-lien loan ($1,848 par, due 4/2031)
SOFR + 5.00%
8.67
1,842
1,821
First-lien loan (GBP 10,594 par, due 4/2031)
S + 5.50%
9.23% (incl. 2.50% PIK)
13,193
13,865 (GBP 10,514)
0.9
ExtraHop Networks, Inc. (3)(5)
First-lien loan ($76,107 par, due 7/2027)
7/22/2021
SOFR + 6.60%
10.27
75,725
75,346
4.9
First-lien revolving loan ($892 par, due 7/2027)
882
880
Lynx BidCo (3)(4)
First-lien loan ($1,545 par, due 7/2031)
7/5/2024
SOFR + 6.25%
9.95
1,444
1,381
First-lien loan (EUR 24,300 par, due 7/2031)
E + 6.25%
8.38
27,789
27,378 (EUR 23,762)
1.8
Mitnick Corporate Purchaser, Inc. (3)(13)
First-lien loan ($322 par, due 5/2029)
5/2/2022
SOFR + 4.85%
8.52
322
139
0.0
Price Fx Inc. (3)(4)
First-lien loan (EUR 910 par, due 10/2029)
10/27/2023
9.04
971
1,054 (EUR 915)
12/19/2024
8.29
927
USA DeBusk, LLC (3)
First-lien loan ($9,469 par, due 4/2031)
4/30/2024
8.92
9,356
9,519
0.6
First-lien revolving loan ($1,023 par, due 4/2030)
1,010
1,030
Wrangler TopCo, LLC (3)
First-lien loan ($5,955 par, due 9/2029)
7/7/2023
SOFR + 5.75%
9.43
5,866
5,954
0.4
356,530
358,447
23.2
Chemicals
Erling Lux Bidco SARL (3)(4)
First-lien loan (EUR 11,549 par, due 9/2028)
9/6/2022
11,672
13,212 (EUR 11,467)
First-lien loan (GBP 19,959 par, due 9/2028)
S + 7.00%
10.73
23,678
26,189 (GBP 19,859)
1.7
First-lien loan (NOK 7,427 par, due 9/2028)
N + 7.00%
11.11
712
759 (NOK 7,390)
First-lien revolving loan (GBP 636 par, due 9/2028)
790
834 (GBP 632)
36,852
40,994
Communications
Aurelia Netherlands B.V. (3)(4)
First-lien loan (EUR 32,904 par, due 5/2031)
5/22/2024
E + 4.75%
6.77
35,023
37,627 (EUR 32,657)
2.4
Education
EMS Linq, Inc. (3)
First-lien loan ($56,216 par, due 12/2027)
12/22/2021
SOFR + 6.35%
10.02
55,825
54,249
3.5
First-lien revolving loan ($3,303 par, due 12/2027)
3,252
2,995
0.2
Kangaroo Bidco AS (3)(4)
First-lien loan ($30,625 par, due 11/2030)
11/2/2023
9.74
29,979
30,275
2.0
Severin Acquisition, LLC (3)
First-lien loan ($16,049 par, due 10/2031)
10/1/2024
SOFR + 4.75%
8.42% (incl. 2.25% PIK)
16,046
15,680
1.0
First-lien revolving loan ($504 par, due 10/2031)
SOFR + 4.50%
8.18
489
466
105,591
103,665
6.7
Electronics
7
Sapphire Software Buyer, Inc. (3)
First-lien loan ($26,897 par, due 9/2031)
9/30/2024
8.70
26,653
26,068
Financial Services
Alaska Bidco Oy (3)(4)
First-lien loan (EUR 727 par, due 5/2030)
5/30/2023
E + 5.75%
7.84
764
843 (EUR 732)
Arlberg Bidco LLC (3)(4)(5)
First-lien loan ($5,000 par, due 2/2031)
2/14/2025
9.40
4,906
4,913
GreenShoot BidCo B.V (3)(4)
First-lien loan (EUR 5,107 par, due 5/2030)
5/28/2024
7.76
5,442
5,737 (EUR 4,979)
First-lien revolving loan (EUR 79 par, due 5/2030)
79
79 (EUR 69)
Ibis Intermediate Co. (3)(5)
First-lien loan ($1,166 par, due 5/2027)
5/28/2021
SOFR + 4.65%
8.32
1,150
1,169
Ibis US Blocker Co. (3)
First-lien loan ($21,697 par, due 5/2028)
SOFR + 8.50%
12.13% PIK
21,575
21,534
Passport Labs, Inc.
Convertible Promissory Note A ($1,086 par, due 8/2026)
3/2/2023
8.00
1,086
2,348
Payroc Buyer, LLC
Promissory Note ($6,086 par, due 9/2030)
9/30/2025
5.50
5.50% PIK
6,086
5,188
TS Imagine, Inc. (3)(5)
First-lien loan ($54,818 par, due 4/2027)
4/30/2021
SOFR + 5.85%
9.52
54,466
54,133
First-lien revolving loan ($1,232 par, due 5/2027)
11/1/2024
P + 4.75%
11.50
1,221
1,211
Volante Technologies, Inc.
First-lien loan ($3,768 par, due 9/2028)
9/29/2023
16.50
16.50% PIK
3,752
3,957
100,527
101,112
6.6
Healthcare
Aledade, Inc. (3)
First-lien revolving loan ($12,250 par, due 11/2028)
11/21/2025
9.42
11,942
11,725
0.8
BCTO Ace Purchaser, Inc. (3)
First-lien loan ($71,888 par, due 11/2029)
11/23/2020
SOFR + 6.50%
10.17
71,468
72,608
4.7
Second-lien loan ($7,956 par, due 1/2030)
1/23/2023
SOFR + 10.70%
14.37% PIK
7,874
8,354
0.5
Eventus Buyer, LLC (3)
First-lien loan ($28,667 par, due 11/2030)
SOFR + 5.50%
9.17
28,340
28,577
1.9
First-lien revolving loan ($933 par, due 11/2030)
893
922
HMP Omnimedia, LLC (3)
First-lien loan ($19,674 par, due 7/2032)
7/31/2025
19,264
19,450
Ingenovis Health Finance, LLC (3)
First-lien revolving loan ($32,500 par, due 5/2030)
5/13/2025
31,430
31,850
LIHA Holdco B.V. (3)(4)(5)
First-lien loan (EUR 5,888 par, due 2/2029)
2/24/2023
E + 6.50%
8.63
6,214
6,716 (EUR 5,829)
First-lien revolving loan (EUR 318 par, due 2/2029)
363
361 (EUR 313)
Raptor US Buyer II Corp. (3)(5)
First-lien loan ($17,903 par, due 3/2029)
3/24/2023
9.92
17,602
17,858
1.2
First-lien revolving loan ($82 par, due 3/2029)
80
Symplr Software Inc. (3)(13)
First-lien loan ($633 par, due 12/2027)
4/4/2025
SOFR + 4.60%
8.27
559
443
Velocity Clinical Research, Inc. (3)
First-lien loan ($63,764 par, due 9/2031)
9/9/2025
11.20
62,763
62,808
4.1
First-lien revolving loan ($528 par, due 9/2031)
471
481
259,259
262,233
17.0
Hotel, Gaming and Leisure
ASG II, LLC (3)(5)
First-lien loan ($65,000 par, due 5/2028)
5/25/2022
SOFR + 6.40%
10.07
64,324
62,887
AVSC Holding Corp. (3)
First-lien loan ($44,716 par, due 12/2031)
12/5/2024
43,951
44,492
2.9
First-lien revolving loan ($870 par, due 12/2029)
799
846
Equinox Holdings, Inc.
First-lien loan ($52,094 par, due 3/2029) (3)
3/8/2024
SOFR + 7.25%
10.95
51,544
53,396
Second-lien loan ($2,854 par, due 6/2027)
3/13/2024
16.00
16.00% PIK
2,827
3,204
IRGSE Holding Corp. (3)(7)
First-lien loan ($30,261 par, due 6/2026)
12/21/2018
SOFR + 9.65%
13.35
28,594
29,202
First-lien revolving loan ($30,313 par, due 6/2026)
13.33
30,313
29,135
Mindbody, Inc. (3)
First-lien loan ($28,889 par, due 3/2033)
3/30/2026
9.70
28,401
Sport Alliance GmbH (3)(4)
First-lien loan (EUR 37,525 par, due 4/2030)
4/10/2024
E + 7.75%
9.77% (incl. 4.13% PIK)
42,509
42,561 (EUR 36,939)
8
First-lien revolving loan (EUR 208 par, due 4/2030)
E + 7.25%
9.38
213
238 (EUR 207)
293,475
294,362
19.1
Human Resource Support Services
Axonify, Inc. (3)(4)(5)
First-lien loan ($45,113 par, due 5/2027)
5/5/2021
SOFR + 6.65%
10.31
44,897
44,550
bswift, LLC (3)(5)
First-lien loan ($54,490 par, due 11/2028)
11/7/2022
8.41
53,847
54,081
Elysian Finco Ltd. (3)(4)(5)
First-lien loan ($21,668 par, due 1/2028)
1/31/2021
SOFR + 5.65%
9.35
21,494
21,072
1.4
First-lien revolving loan (GBP 812 par, due 1/2028)
S + 4.50%
8.23
1,028
979 (GBP 743)
HireVue, Inc. (3)
First-lien loan ($55,044 par, due 5/2029)
5/3/2023
SOFR + 7.75%
11.42
54,119
50,090
3.2
First-lien revolving loan ($6,958 par, due 5/2029)
6,854
6,331
PayScale Holdings, Inc. (3)(5)
First-lien loan ($74,729 par, due 10/2029)
5/3/2019
8.95
74,564
73,584
4.8
256,803
250,687
16.3
Internet Services
Arrow Buyer, Inc. (3)
First-lien loan ($36,558 par, due 7/2030)
6/30/2023
35,928
36,192
Bayshore Intermediate #2, L.P. (3)
First-lien loan ($42,489 par, due 10/2028)
10/1/2021
9.18% (incl. 3.00% PIK)
42,201
41,639
First-lien revolving loan ($902 par, due 10/2027)
8.69
888
829
Big Wombat Holdings, Inc. (3)(5)
First-lien loan ($47,070 par, due 4/2031)
10/20/2025
10.67
46,583
46,129
3.0
Coupa Holdings, LLC (3)
First-lien loan ($42,435 par, due 2/2030)
2/27/2023
41,780
41,450
EDB Parent, LLC (3)(5)
First-lien loan ($78,710 par, due 7/2028)
7/7/2022
77,911
77,333
5.0
Flight Intermediate HoldCo, Inc.
First-lien loan ($40,000 par, due 4/2030)
10/3/2024
39,192
40,000
2.6
Hippo XPA Bidco AB (3)(4)
First-lien loan (SEK 216,077 par, due 2/2031)
2/20/2024
STIBOR + 6.75%
8.94% (incl. 3.63% PIK)
21,543
22,453 (SEK 213,894)
1.5
First-lien loan (EUR 2,594 par, due 2/2031)
E + 6.75%
8.88% (incl. 3.63% PIK)
2,786
2,967 (EUR 2,575)
First-lien revolving loan (SEK 3,906 par, due 2/2031)
STIBOR + 6.25%
8.44
385
398 (SEK 3,789)
Kaseware Intermediate Holding Company (3)(5)
First-lien loan ($45,090 par, due 10/2031)
44,195
43,590
Khoros, LLC
First-lien loan ($11,682 par, due 5/2030)
5/23/2025
10.00
11,682
11,595
Kryptona BidCo US, LLC (3)
First-lien loan ($20,762 par, due 12/2031)
12/18/2024
9.44% (incl. 3.13% PIK)
20,392
20,532
First-lien loan (EUR 4,805 par, due 12/2031)
8.06% (incl. 3.13% PIK)
4,972
5,481 (EUR 4,757)
LeanTaaS Holdings, Inc. (3)(5)
First-lien loan ($63,480 par, due 7/2028)
7/12/2022
11.45
62,946
62,210
4.0
RainFocus, LLC (3)(5)
First-lien loan ($65,802 par, due 4/2031)
4/25/2025
SOFR + 6.38%
10.12
65,309
65,144
4.2
SMA Technologies Holdings, LLC (3)(5)
First-lien loan ($55,579 par, due 10/2028)
10/31/2022
54,523
55,579
573,216
573,521
37.1
Manufacturing
Arcwood Environmental, Inc. (3)
First-lien loan ($12,130 par, due 1/2031)
1/31/2024
12,081
12,130
First-lien loan ($3,759 par, due 1/2031)
9/27/2024
3,742
3,759
ASP Unifrax Holdings, Inc. (13)
First-lien loan ($3,661 par, due 9/2029) (3)
11.42% (incl. 4.75% PIK)
3,604
2,002
Second-lien note ($2,031 par, due 9/2029) (12)
8/31/2023
7.10
7.10% (incl. 1.25% PIK)
1,529
122
Leg Purchaser, Inc. (3)
First-lien loan ($57,522 par, due 1/2032)
1/12/2026
9.15
56,604
56,262
Varinem German BidCo GMBH (3)(4)
First-lien loan (EUR 12,696 par, due 7/2031)
7/11/2024
E + 5.50%
7.63
13,704
14,738 (EUR 12,791)
First-lien loan (EUR 5,216 par, due 7/2031)
6.88
5,644
5,960 (EUR 5,173)
96,908
94,973
6.2
Office Products
USR Parent, Inc. (3)(5)
ABL FILO term loan ($9,309 par, due 4/2027)
4/25/2022
9,242
9,263
Oil, Gas and Consumable Fuels
Laramie Energy, LLC (3)
First-lien loan ($27,317 par, due 2/2027)
2/21/2023
SOFR + 7.10%
10.77
27,196
27,522
TRP Assets, LLC (3)
First-lien loan ($54,834 par, due 12/2029)
12/20/2024
10.70
53,936
55,809
81,132
83,331
5.4
Other
Boréal Bidco (3)(4)
First-lien note (EUR 13,741 par, due 3/2032)
3/24/2025
9.13% (incl. 4.00% PIK)
14,626
15,594 (EUR 13,535)
Kahua, Inc. (3)
First-lien loan ($30,000 par, due 8/2030)
8/22/2025
29,685
30,000
Omnigo Software, LLC (3)
First-lien loan ($13,092 par, due 12/2030)
12/19/2025
13,023
12,793
Scorpio Bidco (3)(4)
First-lien loan (EUR 2,511 par, due 4/2031)
4/4/2024
7.88
2,685
2,867 (EUR 2,488)
Sediver S.p.A. (3)(4)
First-lien note (EUR 6,368 par, due 10/2031)
10/29/2024
E + 5.00%
7.13
6,733
7,309 (EUR 6,343)
First-lien note ($14,085 par, due 10/2031)
13,866
14,049
80,618
82,612
Pharmaceuticals
Apellis Pharmaceuticals, Inc. (3)(4)
First-lien loan ($19,737 par, due 5/2030)
5/13/2024
9.45
19,737
20,428
Arrowhead Pharmaceuticals, Inc. (4)
First-lien loan ($27,177 par, due 8/2031)
8/7/2024
15.00
26,999
29,962
Elysium BidCo Limited (3)(4)
First-lien loan (EUR 40,905 par, due 12/2030)
12/11/2024
45,049
45,660 (EUR 39,628)
First-lien loan (GBP 9,953 par, due 12/2030)
S + 7.25%
10.98
12,416
12,895 (GBP 9,779)
104,201
108,945
7.0
Real Estate
Cirrus (BidCo) Limited (3)(4)(5)
First-lien loan (GBP 698 par, due 8/2030)
8/9/2024
S + 5.25%
8.98
872
910 (GBP 690)
Retail and Consumer Products
Acosta (3)(13)
First-lien loan ($13,855 par, due 8/2031)
8/20/2024
SOFR + 5.60%
9.22
13,606
13,483
American Achievement, Corp. (3)(12)
First-lien loan ($26,611 par, due 9/2027)
9/30/2015
SOFR + 7.35%
11.02% (incl. 10.52% PIK)
25,796
19,626
First-lien loan ($1,323 par, due 9/2027)
6/10/2021
SOFR + 15.10%
18.77% (incl. 18.27% PIK)
1,323
99
Subordinated note ($4,740 par, due 9/2027)
3/16/2021
SOFR + 1.15%
4.81
545
59
Bed Bath and Beyond Inc. (3)(12)(16)
ABL FILO term loan ($5,910 par, due 8/2027)
9/2/2022
SOFR + 9.90%
13.57
5,851
4,684
Roll Up DIP term loan ($25,255 par)
4/24/2023
SOFR + 7.90%
11.57% PIK
25,255
20,015
Super-Priority DIP term loan ($3,575 par)
11.57
3,575
2,833
Belk, Inc. (3)
First-lien loan ($45,921 par, due 7/2029)
7/22/2024
45,331
45,806
Blazing Star Parent, LLC (3)
First-lien loan ($69,125 par, due 8/2030)
8/28/2025
68,201
68,434
4.3
Cordance Operations, LLC (3)
First-lien loan ($65,447 par, due 7/2028)
7/25/2022
SOFR + 8.40%
12.07
64,759
65,187
Neuintel, LLC (3)(5)
First-lien loan ($53,648 par, due 12/2026)
12/20/2021
SOFR + 6.85%
10.52
53,454
50,697
3.3
PDI TA Holdings, Inc. (3)
First-lien loan ($20,232 par, due 2/2031)
2/1/2024
9.67% (incl. 2.50% PIK)
20,012
19,777
First-lien revolving loan ($1,531 par, due 2/2031)
1,514
1,494
Rapid Data GmbH Unternehmensberatung (3)(4)
First-lien loan (EUR 7,546 par, due 7/2029)
7/11/2023
8,137
8,528 (EUR 7,401)
First-lien revolving loan (EUR 328 par, due 6/2029)
374
364 (EUR 316)
Tango Management Consulting, LLC (3)(5)
First-lien loan ($50,898 par, due 6/2031)
6/25/2025
10.16
49,881
49,280
387,614
370,366
24.0
Transportation
Ben Nevis Midco Limited (3)(4)
First-lien loan ($5,000 par, due 3/2028)
3/26/2024
4,967
4,988
Marcura Equities LTD (3)(4)
First-lien loan ($41,962 par, due 8/2029)
8/11/2023
SOFR + 8.25%
11.95% (incl. 4.25% PIK)
41,339
41,752
First-lien loan (GBP 1,118 par, due 8/2029)
S + 8.25%
11.98% (incl. 4.25% PIK)
1,394
1,467 (GBP 1,113)
10
First-lien revolving loan ($1,667 par, due 8/2029)
1,620
1,650
Project44, Inc. (3)(5)
First-lien loan ($54,481 par, due 11/2027)
11/12/2021
53,959
53,527
Rail Acquisitions LLC
First-lien loan ($22,530 par, due 1/2030) (3)
1/27/2025
22,119
22,164
Second-lien note ($22,160 par, due 1/2031)
13.75
13.75% PIK
19,139
19,516
Ranger Intermediate II, LLC (3)
First-lien loan ($69,361 par, due 10/2031)
10/28/2025
68,385
68,320
4.4
Shiftmove GMBH (3)(4)(5)
First-lien loan (EUR 36,338 par, due 9/2030)
E + 6.00%
8.13
40,028
41,479 (EUR 36,000)
252,950
254,863
16.5
Total Debt Investments
3,057,466
3,053,979
198.0
Equity, Structured Credit and Joint Venture Investments
Equity Investments
Artisan Topco LP (10)
Class A Preferred Units (2,117,264 units)
2,117
1,583
Dye & Durham, Ltd. (4)(10)(14)
Common Shares (126,968 shares)
12/3/2021
3,909
356 (CAD 496)
Insight Hideaway Aggregator, L.P. (10)
Partnership Interest (329,861 units)
3,299
3,331
Mitnick TA Aggregator, L.P. (10)
Membership Interest (0.43% ownership)
5,249
2,087
Newark FP Co-Invest, L.P. (10)
Partnership (2,527,719 units)
2,532
1,792
Sprinklr, Inc. (10)(14)
Common Shares (283,499 shares)
6/24/2021
2,445
1,701
Warrior TopCo LP (10)
Class A Units (423,729 units)
424
598
19,975
11,448
0.7
Celtra Technologies, Inc. (10)
Class A Units (1,250,000 units)
11/19/2021
1,250
1,387
IntelePeer Holdings, Inc. (10)
Series C Preferred Shares (1,816,295 shares)
4/8/2021
1,816
141
Series D Preferred Shares (1,598,874 shares)
2,925
154
Series D Warrants (106,592 warrants)
5,991
1,682
EMS Linq, Inc. (10)
Class B Units (5,522,526 units)
5,523
815
AF Eagle Parent, L.P. (10)
Partnership Units (121,329 units)
11/27/2023
4,091
3,815
Newport Parent Holdings, L.P. (10)
Class A-2 Units (131,569 units)
12/10/2020
4,177
11,027
Oxford Square Capital Corp. (4)(14)
Common Shares (1,620 shares)
8/5/2015
Passport Labs, Inc. (10)
Warrants (17,534 warrants)
4/28/2021
192
1,223
TS Imagine, Inc. (15)
Class A Units (600,000 units) (10)
5/14/2021
600
611
Class AA Units (19,093 units)
20.00
46
45
9,112
16,724
1.1
Caris Life Sciences, Inc. (10)(14)
Common Shares (714,020 shares)
6/20/2025
8,254
12,767
Merative Topco L.P. (10)
Class A-1 Units (989,691 units)
6/30/2022
9,897
13,880
Raptor US Buyer II Corp. (10)
Ordinary Shares (13,176 shares)
2,033
2,150
20,184
28,797
IRGSE Holding Corp. (7)(10)
Class A Units (50,140,171 units)
21,883
125
Class C-1 Units (8,800,000 units)
100
43
21,983
168
Axonify, Inc. (4)(10)(15)
Class A-1 Units (3,780,000 units)
3,780
2,325
bswift, LLC (10)
Class A-1 Units (2,393,509 units)
2,394
3,351
DaySmart Holdings, LLC (10)
Class A Units (166,811 units)
12/18/2020
1,347
1,747
Employment Hero Holdings Pty Ltd. (4)(10)
Series E Preferred Shares (113,250 shares)
3/1/2022
2,134
4,089 (AUD 5,970)
9,655
11,512
Bayshore Intermediate #2, L.P. (10)(15)
Co-Invest Common Units (8,837,008 units)
8,837
12,526
Co-Invest 2 Common Units (3,493,701 units)
3,494
4,952
Bigtincan Holdings L.P. (10)(11)
Class A Units (2,902,890 units)
4/16/2025
3,019
Khoros, LLC (10)(11)(15)
Earnout Interests
7,614
7,176
11
Lucidworks, Inc. (10)
Series F Preferred Shares (199,054 shares)
8/2/2019
800
454
Piano Software, Inc. (10)
Series C-1 Preferred Shares (418,527 shares)
3,000
2,400
Series C-2 Preferred Shares (27,588 shares)
11/18/2022
198
316
SMA Technologies Holdings, LLC (10)
Class A Units (1,584 units)
11/21/2022
1,584
2,297
Class B Units (1,124,813 units)
68
28,614
33,006
2.1
Marketing Services
Validity, Inc. (10)
Series A Preferred Shares (3,840,000 shares)
5/31/2018
3,840
9,024
Murchison Oil and Gas, LLC (10)(15)
Preferred Units (13,355 units)
TRP Assets, LLC (10)(15)
Partnership Interest (1.89% ownership)
8/25/2022
8,926
11,916
TherapeuticsMD, Inc. (4)(10)
Warrants (14,256 warrants)
8/5/2020
1,029
Elysium BidCo Limited (4)(10)
Convertible Preference Shares (4,976,563 Shares)
6,341
6,891 (GBP 5,225)
7,370
6,891
American Achievement, Corp. (10)
Class A Units (687 units)
50
Copper Bidco, LLC (13)
Trust Certificates (996,958 Certificates)
1/30/2021
1,083
10,767
Neuintel, LLC (10)(15)
Class A Units (1,176,494 units)
60
4,083
10,877
RailTrac Holdings Inc. (10)
Warrants (3,059 warrants)
2,717
Ranger Parent I, Inc. (11)
Series A-1 Preferred Shares (5,639 Shares)
14.50
14.50% PIK
5,362
5,103
Warrants (3,841 warrants) (10)
312
8,391
8,132
Total Equity Investments
153,647
150,992
9.7
Structured Credit Investments
Apidos CLO, Series 2015-23A (3)(4)(13)
Structured Credit ($4,000 par, due 4/2033)
9/3/2025
SOFR + 5.20%
8.87
4,015
3,931
Ares CLO Ltd, Series 2022-63A (3)(4)(13)
Structured Credit ($2,500 par, due 10/2038)
8/7/2025
2,523
Ares CLO Ltd, Series 2022-64A (3)(4)(13)
Structured Credit ($2,000 par, due 10/2039)
9/4/2025
2,043
1,912
Ares CLO Ltd, Series 2024-72A (3)(4)(13)
Structured Credit ($3,500 par, due 7/2036)
3,545
3,255
Benefit Street Partners CLO Ltd, Series 2025-39A (3)(4)(13)
Structured Credit ($1,725 par, due 4/2038)
7/16/2025
8.17
1,725
1,670
Birch Grove CLO Ltd, Series 2025-14A (3)(4)(13)
Structured Credit ($1,250 par, due 7/2037)
9/2/2025
10.32
1,268
Canyon CLO Ltd, Series 2025-1A (3)(4)(13)
Structured Credit ($1,125 par, due 4/2038)
7/28/2025
8.42
1,118
1,090
Carlyle US CLO Ltd, Series 2017-2A (3)(4)(13)
Structured Credit ($2,500 par, due 7/2037)
SOFR + 7.56%
11.23
2,546
Carlyle US CLO Ltd, Series 2021-1A (3)(4)(13)
Structured Credit ($3,225 par, due 1/2040)
SOFR + 7.30%
10.97
3,321
3,134
CarVal CLO Ltd, Series 2021-2A (3)(4)(13)
Structured Credit ($2,000 par, due 10/2034)
SOFR + 7.01%
10.68
2,013
1,853
CarVal CLO Ltd, Series 2023-1A (3)(4)(13)
Structured Credit ($3,000 par, due 7/2037)
8/13/2025
3,030
2,805
CIFC Funding Ltd, Series 2020-4A (3)(4)(13)
Structured Credit ($4,000 par, due 1/2040)
7/29/2025
SOFR + 4.90%
8.57
4,026
3,856
CIFC Funding Ltd, Series 2021-7A (3)(4)(13)
Structured Credit ($2,800 par, due 1/2035)
9/8/2025
2,809
2,684
CIFC Funding Ltd, Series 2022-4A (3)(4)(13)
Structured Credit ($3,000 par, due 7/2035)
8/27/2025
3,008
2,873
Diameter Capital CLO Ltd, Series 2025-9A (3)(4)(13)
Structured Credit ($3,500 par, due 4/2038)
SOFR + 4.70%
8.37
3,530
3,407
Goldentree Loan Management US CLO Ltd, Series 2022-16A (3)(4)(13)
Structured Credit ($5,000 par, due 1/2038)
9/16/2025
4,974
4,843
Goldentree Loan Management US CLO Ltd, Series 2023-17A (3)(4)(13)
Structured Credit ($3,000 par, due 1/2039)
SOFR + 5.40%
9.07
3,021
2,942
Lake George Park CLO Ltd, Series 2025-1A (3)(4)(13)
Structured Credit ($4,500 par, due 4/2038)
4,500
4,357
Madison Park Funding Ltd, Series 2025-65A (3)(4)(13)
Structured Credit ($4,400 par, due 7/2038)
8/19/2025
4,408
12
Madison Park Funding Ltd, Series 2025-72A (3)(4)(13)
Structured Credit ($4,500 par, due 7/2038)
8/18/2025
4,550
4,359
Neuberger Berman CLO Ltd, Series 2017-16SA (3)(4)(13)
Structured Credit ($4,000 par, due 4/2039)
4,009
3,859
Neuberger Berman CLO Ltd, Series 2015-20A (3)(4)(13)
Structured Credit ($1,150 par, due 4/2039)
1,151
1,113
Neuberger Berman Loan Advisers CLO Ltd, Series 2017-24A (3)(4)(13)
Structured Credit ($1,000 par, due 10/2038)
8/25/2025
1,024
961
Neuberger Berman Loan Advisers CLO Ltd, Series 2019-33A (3)(4)(13)
Structured Credit ($2,000 par, due 4/2039)
2,029
1,955
Neuberger Berman Loan Advisers CLO Ltd, Series 2021-44A (3)(4)(13)
Structured Credit ($1,000 par, due 10/2035)
8/15/2025
SOFR + 5.15%
8.82
1,006
956
Oaktree CLO Ltd, Series 2022-2A (3)(4)(13)
Structured Credit ($3,500 par, due 10/2037)
7/17/2025
3,541
3,411
Octagon 67 Ltd, Series 2023-1A (3)(4)(13)
Structured Credit ($3,000 par, due 7/2038)
SOFR + 7.41%
11.08
3,100
2,896
Oha Credit Funding Ltd, Series 2025-22A (3)(4)(13)
Structured Credit ($1,250 par, due 7/2038)
7/24/2025
SOFR + 5.55%
1,271
1,234
Palmer Square CLO Ltd, Series 2021-4 (3)(4)(13)
Structured Credit ($4,000 par, due 7/2038)
4,036
3,722
Palmer Square CLO Ltd, Series 2025-1A (3)(4)(13)
Structured Credit ($2,250 par, due 4/2038)
8/21/2025
2,251
2,178
Pikes Peak CLO Ltd, Series 2023-14A (3)(4)(13)
7/30/2025
3,066
2,832
Regatta Funding Ltd, Series 2020-1A (3)(4)(13)
Structured Credit ($1,000 par, due 10/2037)
1,019
964
Riverbank Park CLO Ltd, Series 2024-1A (3)(4)(13)
Structured Credit ($4,500 par, due 1/2038)
SOFR + 4.80%
8.47
4,528
4,121
RR Ltd, Series 2021-19A (3)(4)(13)
Structured Credit ($1,000 par, due 4/2040)
999
980
Texas Debt Capital CLO Ltd, Series 2023-1A (3)(4)(13)
Structured Credit ($2,000 par, due 7/2038)
8/12/2025
SOFR + 4.95%
8.62
2,023
1,973
Whitebox CLO Ltd, Series 2023-4A (3)(4)(13)
Structured Credit ($1,500 par, due 4/2036)
8/20/2025
SOFR + 6.48%
10.15
1,528
1,491
Total Structured Credit Investments
98,554
93,805
6.1
Joint Venture Investments
Structured Credit Partners JV, LLC (4)(6)(11)
Partnership Interest (25.00% ownership)
12/23/2025
Total Equity, Structured Credit and Joint Venture Investments
266,866
259,462
16.8
Total Investments
3,324,332
214.8
Interest Rate Swaps as of March 31, 2026
CompanyReceives
CompanyPays
Maturity Date
NotionalAmount
FairMarketValue
Upfront(Payments) /Receipts
Change inUnrealizedGains / (Losses)
Interest rate swap (a)(b)
2.50%
SOFR + 2.17%
8/1/2026
300,000
(3,675
2,110
6.95%
SOFR + 2.99%
8/14/2028
2,047
(2,448
6.125%
SOFR + 2.44%
3/1/2029
350,000
616
(2,691
5.625%
SOFR + 1.53%
8/15/2030
5,740
(2,544
Total Hedge Accounting Swaps
1,250,000
4,728
(5,573
Cash collateral
28,072
Total derivatives
32,800
13
Non-Controlled, Affiliated Investments during the three months ended March 31, 2026
Company
FairValue atDecember 31,2025
GrossAdditions (a)
GrossReductions (b)
Net ChangeIn UnrealizedGain/(Loss)
RealizedGain/(Loss)
Transfers
FairValue atMarch 31,2026
InterestIncome
Dividend Income
OtherIncome
Structured Credit Partners JV, LLC
Total
Controlled, Affiliated Investments during the three months ended March 31, 2026
IRGSE Holding Corp.
2,370
14
15
Consolidated Schedule of Investments as of December 31, 2025
16
AmortizedCost (2)(7)
Fair Value (8)
First-lien loan ($38,438 par, due 11/2029)
10.94
37,903
38,245
First-lien loan (EUR 17,380 par, due 11/2029)
18,414
20,310 (EUR 17,293)
4,214
4,259
9.72
42,138
42,988
First-lien holdco loan ($54,435 par, due 10/2030)
11.37% PIK
53,519
55,388
3.4
10.59
57,145
58,705
Dye & Durham Corp. (3)(4)(9)
First-lien loan ($945 par, due 4/2031)
SOFR + 4.35%
8.02
933
869
First-lien loan ($2,270 par, due 4/2031)
8.97% (incl. 2.25 % PIK)
2,256
2,293
8.72
1,841
1,858
First-lien loan (GBP 10,529 par, due 4/2031)
13,101
14,338 (GBP 10,660)
First-lien loan ($76,301 par, due 7/2027)
75,851
76,492
First-lien revolving loan ($669 par, due 7/2027)
10.33
657
672
Galileo Parent, Inc. (3)
First-lien loan ($63,444 par, due 5/2030)
62,098
64,078
First-lien revolving loan ($6,635 par, due 5/2030)
6,466
6,736
First-lien loan ($1,523 par, due 7/2031)
1,415
1,467
First-lien loan (EUR 23,956 par, due 7/2031)
27,370
27,875 (EUR 23,735)
Mitnick Corporate Purchaser, Inc. (3)(9)
First-lien loan ($323 par, due 5/2029)
323
206
9.08
970
1,087 (EUR 926)
8.33
926
1,079 (EUR 919)
First-lien loan ($8,322 par, due 4/2031)
9.00
8,212
8,374
First-lien revolving loan ($901 par, due 4/2030)
9.06
First-lien loan ($5,970 par, due 9/2029)
9.49
5,876
6,038
422,516
434,265
27.0
11,630
13,809 (EUR 11,758)
First-lien loan (GBP 19,592 par, due 9/2028)
23,151
26,681 (GBP 19,836)
1.6
745 (NOK 7,520)
First-lien revolving loan (GBP 593 par, due 9/2028)
730
807 (GBP 600)
36,223
42,042
6.78
35,003
38,837 (EUR 33,068)
X Holdings Inc. (9)
First-lien loan ($9,338 par, due 10/2029) (3)
2/5/2025
10.45
9,098
9,164
First-lien loan ($988 par, due 10/2029)
4/28/2025
9.50
984
45,072
48,985
17
Astra Acquisition Corp. (3)(14)
Second-lien loan ($40,084 par, due 10/2029)
10/22/2021
P + 9.88%
16.63
39,489
55,773
55,232
First-lien revolving loan ($2,916 par, due 12/2027)
2,858
2,762
9.99
29,945
30,975
First-lien loan ($15,905 par, due 10/2031)
8.47% (incl. 2.25% PIK)
15,887
15,855
143,952
104,824
6.5
First-lien loan ($26,963 par, due 9/2031)
26,711
26,812
7.77
763
860 (EUR 732)
9.60
4,903
4,962
7.82
5,431
5,917 (EUR 5,038)
First-lien loan ($1,170 par, due 5/2027)
1,184
First-lien loan ($20,790 par, due 5/2028)
12.22% PIK
20,656
20,946
1,085
1,167
Promissory Note ($6,000 par, due 9/2030)
6,000
5,070
First-lien loan ($54,960 par, due 4/2027)
9.69
54,529
54,960
First-lien revolving loan ($899 par, due 5/2027)
886
899
First-lien loan ($3,619 par, due 9/2028)
3,601
3,755
99,005
99,720
First-lien revolving loan ($10,864 par, due 11/2028)
9.54
10,527
10,513
First-lien loan ($69,942 par, due 11/2029)
69,504
70,818
4.5
Second-lien loan ($7,665 par, due 1/2030)
15.02% PIK
7,577
7,856
First-lien loan ($25,706 par, due 11/2030)
25,358
25,542
First-lien revolving loan ($1,867 par, due 11/2030)
1,824
1,849
First-lien loan ($19,723 par, due 7/2032)
8.97
19,368
19,537
First-lien revolving loan ($409 par, due 7/2030)
P + 4.25%
11.00
339
371
9.82
31,366
32,013
First-lien loan (EUR 5,903 par, due 2/2029)
6,219
6,989 (EUR 5,951)
377 (EUR 321)
First-lien loan ($17,949 par, due 3/2029)
9.97
17,622
18,083
87
Symplr Software Inc. (3)(9)
First-lien loan ($635 par, due 12/2027)
551
537
First-lien loan ($62,899 par, due 9/2031)
11.17
61,865
62,585
3.9
468
513
253,027
257,670
16.0
10.24
64,254
64,025
First-lien loan ($44,828 par, due 12/2031)
43,960
44,704
2.8
First-lien loan ($51,697 par, due 3/2029) (3)
11.92% (incl. 4.13% PIK)
51,126
53,377
18
Second-lien loan ($2,746 par, due 6/2027)
2,713
3,240
IRGSE Holding Corp. (3)(6)
13.32
30,261
First-lien revolving loan ($27,943 par, due 6/2026)
13.44
27,943
First-lien loan (EUR 37,133 par, due 4/2030)
42,004
43,502 (EUR 37,041)
9.27
212
256 (EUR 218)
260,806
267,308
16.6
10.55
44,851
45,113
First-lien loan ($54,630 par, due 11/2028)
8.64
53,925
54,766
First-lien loan ($21,745 par, due 1/2028)
21,548
21,691
First-lien revolving loan (GBP 1,055 par, due 1/2028)
S + 4.00%
7.73
1,352
1,381 (GBP 1,027)
First-lien loan ($53,031 par, due 5/2029)
52,041
50,909
First-lien revolving loan ($6,887 par, due 5/2029)
10.57
6,775
6,612
Madcap Software, Inc. (3)(5)
First-lien loan ($31,850 par, due 12/2026)
12/15/2023
SOFR + 6.10%
9.77
31,582
First-lien loan ($74,916 par, due 10/2029)
74,721
74,879
286,795
287,201
17.9
First-lien loan ($36,651 par, due 7/2030)
35,988
36,834
First-lien loan ($42,190 par, due 10/2028)
9.19% (incl. 3.00% PIK)
41,875
42,085
First-lien loan ($47,188 par, due 4/2031)
10.88
46,682
46,598
First-lien loan ($42,543 par, due 2/2030)
9.09
41,844
42,913
First-lien loan ($76,729 par, due 7/2028)
10.84
75,879
76,729
39,154
40,300
2.5
First-lien loan (SEK 214,115 par, due 2/2031)
8.60% (incl. 3.63% PIK)
21,310
23,226 (SEK 214,115)
First-lien loan (EUR 2,571 par, due 2/2031)
8.77% (incl. 3.63% PIK)
2,756
3,019 (EUR 2,571)
384
424 (SEK 3,906)
First-lien loan ($43,251 par, due 10/2031)
9.23
42,339
42,501
11,711
First-lien loan ($20,595 par, due 12/2031)
9.70% (incl. 3.25% PIK)
20,211
20,765
First-lien loan (EUR 4,766 par, due 12/2031)
8.06% (incl. 3.25% PIK)
4,924
5,640 (EUR 4,802)
First-lien loan ($62,984 par, due 7/2028)
62,403
62,827
First-lien loan ($64,232 par, due 4/2031)
63,701
64,072
54,434
56,710
566,452
577,247
35.9
First-lien loan ($12,160 par, due 1/2031)
12,110
12,231
First-lien loan ($3,764 par, due 1/2031)
8.71
3,746
3,764
ASP Unifrax Holdings, Inc. (9)
First-lien loan ($3,619 par, due 9/2029) (3)
11.75% (incl. 4.75% PIK)
3,558
2,877
19
Second-lien note ($2,024 par, due 9/2029) (14)
1,559
7.57
13,699
15,097 (EUR 12,855)
First-lien loan (EUR 4,392 par, due 7/2031)
6.82
5,158 (EUR 4,392)
39,356
39,350
ABL FILO term loan ($9,809 par, due 4/2027)
10.37
9,723
9,809
10.82
27,162
27,590
53,855
55,485
81,017
83,075
5.2
First-lien note (EUR 13,605 par, due 3/2032)
9.27% (incl. 5.75% PIK)
14,458
15,858 (EUR 13,503)
First-lien loan ($25,000 par, due 8/2030)
24,671
24,700
First-lien loan ($13,125 par, due 12/2030)
13,053
13,049
2,682
2,967 (EUR 2,526)
7.02
6,721
7,479 (EUR 6,368)
13,856
14,085
75,441
78,138
19,786
First-lien loan ($26,873 par, due 8/2031)
26,686
30,098
First-lien loan (EUR 17,985 par, due 12/2030)
18,463
20,911 (EUR 17,805)
12,407
13,287 (GBP 9,878)
77,293
84,082
871
939 (GBP 698)
Acosta (3)(9)
First-lien loan ($13,890 par, due 8/2031)
13,632
13,566
American Achievement, Corp. (3)(14)
First-lien loan ($26,664 par, due 9/2026)
11.22% (incl. 10.72% PIK)
25,848
19,665
First-lien loan ($1,327 par, due 9/2026)
18.97% (incl. 18.47% PIK)
1,327
Subordinated note ($4,740 par, due 9/2026)
5.14
Bed Bath and Beyond Inc. (3)(15)
13.62
4,758
11.62% PIK
20,331
11.62
2,878
First-lien loan ($46,875 par, due 7/2029)
46,252
46,992
First-lien loan ($69,563 par, due 8/2030)
68,574
68,693
First-lien loan ($64,906 par, due 7/2028)
SOFR + 8.65%
12.53
64,160
65,748
First-lien loan ($53,926 par, due 12/2026)
53,666
53,522
First-lien loan ($20,284 par, due 2/2031)
9.34
20,054
20,334
First-lien revolving loan ($1,203 par, due 2/2031)
1,185
1,207
20
8.51
8,127
8,862 (EUR 7,546)
8.43
385 (EUR 328)
First-lien loan ($49,169 par, due 6/2031)
10.50
48,120
48,312
386,545
375,412
23.3
9.33
4,963
5,038
First-lien loan ($41,520 par, due 8/2029)
11.92% (incl. 4.25% PIK)
40,856
41,832
First-lien loan (GBP 1,107 par, due 8/2029)
1,378
1,500 (GBP 1,115)
1,617
1,692
First-lien loan ($54,549 par, due 11/2027)
53,982
54,140
First-lien loan ($25,217 par, due 1/2030) (3)
9.86
24,742
24,946
Second-lien note ($21,423 par, due 1/2031)
18,292
19,360
9.36
68,341
68,667
8.03
39,967
42,809 (EUR 36,450)
254,138
259,984
3,064,943
3,076,863
191.4
Equity and Other Investments
Artisan Topco LP (11)
1,800
Dye & Durham, Ltd. (4)
282 (CAD 386)
Insight Hideaway Aggregator, L.P. (11)
3,835
Mitnick TA Aggregator, L.P. (11)
3,176
Newark FP Co-Invest, L.P. (11)
2,399
Sprinklr, Inc. (10)(11)
2,205
Warrior TopCo LP (11)
661
14,358
Celtra Technologies, Inc. (11)
1,578
IntelePeer Holdings, Inc. (11)
309
329
2,216
Astra 2L Holdings II LLC (11)
Membership Interest (10.17% ownership)
1/13/2022
EMS Linq, Inc. (11)
1,602
8,778
AF Eagle Parent, L.P. (11)
5,717
Newport Parent Holdings, L.P. (11)
9,972
Oxford Square Capital Corp. (4)(10)
Passport Labs, Inc. (11)
TS Imagine, Inc. (13)
Class A Units (600,000 units) (11)
723
16,461
Caris Life Sciences, Inc. (10)(11)
Common Shares (962,195 shares)
11,122
25,960
Merative Topco L.P. (11)
14,128
Raptor US Buyer II Corp. (11)
2,353
23,052
42,441
IRGSE Holding Corp. (6)(11)
21
Axonify, Inc. (4)(11)(13)
3,497
bswift, LLC
4,727
DaySmart Holdings, LLC (11)
2,259
Employment Hero Holdings Pty Ltd. (4)(11)
4,081 (AUD 6,120)
14,564
Bayshore Intermediate #2, L.P. (11)(13)
12,880
5,092
Bigtincan Holdings L.P. (11)(12)
3,020
Khoros, LLC (12)(13)
7,233
Lucidworks, Inc. (11)
530
Piano Software, Inc. (11)
SMA Technologies Holdings, LLC (11)
2,752
119
34,342
Validity, Inc. (11)
9,600
Murchison Oil and Gas, LLC (11)(13)
TRP Assets, LLC (11)(13)
8,917
9,496
TherapeuticsMD, Inc. (4)(11)
Elysium BidCo Limited (4)(11)
7,581 (GBP 5,636)
7,581
American Achievement, Corp. (11)
Copper Bidco, LLC (9)
1,104
11,016
Neuintel, LLC (11)(13)
413
4,104
11,479
RailTrac Holdings Inc. (11)(12)
Ranger Parent I, Inc. (12)
5,245
Warrants (3,841 warrants) (11)
8,274
159,782
172,582
10.7
Other Investments
Apidos CLO, Series 2015-23A (3)(4)(9)
9.10
4,016
4,002
Ares CLO Ltd, Series 2022-63A (3)(4)(9)
10.28
2,522
2,501
Ares CLO Ltd, Series 2022-64A (3)(4)(9)
10.40
2,018
Ares CLO Ltd, Series 2024-72A (3)(4)(9)
9.90
3,546
3,510
Benefit Street Partners CLO Ltd, Series 2025-39A (3)(4)(9)
8.40
1,711
Birch Grove CLO Ltd, Series 2025-14A (3)(4)(9)
1,267
1,261
Canyon CLO Ltd, Series 2025-1A (3)(4)(9)
8.65
1,102
Carlyle US CLO Ltd, Series 2017-2A (3)(4)(9)
11.44
2,547
2,528
Carlyle US CLO Ltd, Series 2021-1A (3)(4)(9)
3,322
3,290
CarVal CLO Ltd, Series 2021-2A (3)(4)(9)
10.92
1,996
CarVal CLO Ltd, Series 2023-1A (3)(4)(9)
10.23
2,973
22
CIFC Funding Ltd, Series 2020-4A (3)(4)(9)
8.80
4,007
CIFC Funding Ltd, Series 2021-7A (3)(4)(9)
8.76
2,779
CIFC Funding Ltd, Series 2022-4A (3)(4)(9)
9.14
3,009
3,005
Diameter Capital CLO Ltd, Series 2025-9A (3)(4)(9)
8.58
3,519
Goldentree Loan Management US CLO Ltd, Series 2022-16A (3)(4)(9)
4,973
4,956
Goldentree Loan Management US CLO Ltd, Series 2023-17A (3)(4)(9)
9.28
3,022
3,018
Lake George Park CLO Ltd, Series 2025-1A (3)(4)(9)
8.50
4,507
Madison Park Funding Ltd, Series 2025-65A (3)(4)(9)
9.32
4,407
Madison Park Funding Ltd, Series 2025-72A (3)(4)(9)
9.37
4,547
4,535
Neuberger Berman CLO Ltd, Series 2017-16SA (3)(4)(9)
4,010
3,947
Neuberger Berman CLO Ltd, Series 2015-20A (3)(4)(9)
1,144
Neuberger Berman Loan Advisers CLO Ltd, Series 2017-24A (3)(4)(9)
1,017
Neuberger Berman Loan Advisers CLO Ltd, Series 2019-33A (3)(4)(9)
9.39
2,030
Neuberger Berman Loan Advisers CLO Ltd, Series 2021-44A (3)(4)(9)
1,001
Oaktree CLO Ltd, Series 2022-2A (3)(4)(9)
10.30
3,542
3,516
Octagon 67 Ltd, Series 2023-1A (3)(4)(9)
11.27
3,102
3,057
Oha Credit Funding Ltd, Series 2025-22A (3)(4)(9)
9.83
Palmer Square CLO Ltd, Series 2021-4 (3)(4)(9)
9.65
Palmer Square CLO Ltd, Series 2025-1A (3)(4)(9)
2,250
Pikes Peak CLO Ltd, Series 2023-14A (3)(4)(9)
9.88
3,067
2,992
Regatta Funding Ltd, Series 2020-1A (3)(4)(9)
1,011
Riverbank Park CLO Ltd, Series 2024-1A (3)(4)(9)
8.66
4,502
RR Ltd, Series 2021-19A (3)(4)(9)
8.60
995
Texas Debt Capital CLO Ltd, Series 2023-1A (3)(4)(9)
8.83
2,017
Whitebox CLO Ltd, Series 2023-4A (3)(4)(9)
10.36
Total Other Investments
98,557
97,872
Total Equity and Other Investments
258,339
270,454
3,323,282
208.2
Interest Rate Swaps as of December 31, 2025
(5,785
11,833
4,495
5,872
3,307
8,550
8,284
10,301
34,539
16,727
27,028
23
Controlled, Affiliated Investments during the year ended December 31, 2025
FairValue atDecember 31,2024
65,095
(5,310
3,266
(16,309
10,347
24
25
Consolidated Statements of Changes in Net Assets
Common Stock
Treasury Stock
Shares
ParAmount
Cost
Paid in Capital inExcess of Par
DistributableEarnings
Total NetAssets
Balance at December 31, 2025
94,705,150
664,250
Net increase (decrease) in net assets resulting from operations:
Net investment income
Net change in unrealized gains (losses) on investments and foreign currency translation
Net realized gains (losses) on investments and foreign currency transactions
Dividends to stockholders:
Stock issued in connection with dividend reinvestment plan
314,450
5,485
5,488
Dividends declared from distributable earnings
(44,511
Balance at March 31, 2026
95,019,600
Balance at December 31, 2024
93,661,436
943
1,519,337
97,708
1,607,529
302,922
6,437
6,440
(49,641
Balance at March 31, 2025
93,964,358
946
1,525,774
85,022
1,601,283
Consolidated Statements of Cash Flows
(Amounts in thousands)
Cash Flows from Operating Activities
Increase (decrease) in net assets resulting from operations
Adjustments to reconcile increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net change in unrealized (gains) losses on investments
34,925
10,817
Net change in unrealized (gains) losses on foreign currency transactions
(8,401
11,043
Net realized (gains) losses on investments
39,257
(1,115
Net realized (gains) losses on foreign currency transactions
(25
Net amortization of discount on investments
(4,637
(6,159
Amortization of deferred financing costs
1,718
Amortization of discount on debt
495
395
Purchases and originations of investments, net
(162,769
(183,742
Proceeds from investments, net
8,173
3,721
Repayments on investments
125,650
288,163
Paid-in-kind interest
(6,719
(5,281
Changes in operating assets and liabilities:
(164
(561
Interest receivable paid-in-kind
(251
(80
(996
(2,090
(519
(279
(1,885
(497
Payable to affiliate
(358
(934
(20,851
1,780
Net Cash Provided by (Used in) Operating Activities
(23,354
149,919
Cash Flows from Financing Activities
Borrowings on debt
310,289
530,044
Repayments on debt
(238,395
(609,518
Deferred financing costs
(7,303
Dividends paid to stockholders
(39,024
(43,201
Net Cash Provided by (Used in) Financing Activities
32,870
(129,978
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
9,516
19,941
Cash, cash equivalents, and restricted cash, beginning of period
27,328
Cash, Cash Equivalents, and Restricted Cash, End of Period
47,269
Supplemental Information:
Interest paid during the period
43,841
45,459
Excise and other taxes paid during the period
4,604
Dividends declared during the period
44,511
49,641
Non-Cash Financing Activities:
Reinvestment of dividends during the period
Notes to Consolidated Financial Statements
(Amounts in thousands, unless otherwise indicated)
1. Organization and Basis of Presentation
Organization
Sixth Street Specialty Lending, Inc. (the “Company”) is a Delaware corporation formed on July 21, 2010. The Company was formed primarily to lend to, and selectively invest in, middle-market companies in the United States. The Company has elected to be regulated as a business development company (“BDC”) under the 1940 Act. In addition, for tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is managed by Sixth Street Specialty Lending Advisers, LLC (the “Adviser”).
On June 1, 2011, the Company formed a wholly-owned subsidiary, TC Lending, LLC, a Delaware limited liability company.
On March 22, 2012, the Company formed a wholly-owned subsidiary, Sixth Street SL SPV, LLC, a Delaware limited liability company.
On May 19, 2014, the Company formed a wholly-owned subsidiary, Sixth Street SL Holding, LLC, a Delaware limited liability company.
On December 9, 2020, the Company formed a wholly-owned subsidiary, Sixth Street Specialty Lending Sub, LLC, a Cayman Islands limited liability company.
On March 21, 2014, the Company completed its initial public offering (“IPO”) and the Company’s shares began trading on the New York Stock Exchange (“NYSE”) under the symbol “TSLX.”
On December 23, 2025, affiliates of Sixth Street, including the Company, and affiliates of Carlyle Group Inc. (“Carlyle”) entered into an amended and restated limited liability company agreement, as amended from time to time (the “Limited Liability Company Agreement”) to co-manage Structured Credit Partners JV, LLC (“SCP”), a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt. The Company has 25.0% voting ownership in SCP and has commitments to fund, from time to time, capital of up to $200.0 million. Refer to Note 6, Fair Value of Financial Instruments, to these consolidated financial statements for further details.
Basis of Presentation
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and include the accounts of the Company and its subsidiaries. In the opinion of management, all adjustments considered necessary for the fair presentation of the consolidated financial statements for the periods presented have been included. The results of operations for interim periods are not indicative of results to be expected for the full year. All intercompany balances and transactions have been eliminated in consolidation.
Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with U.S. GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”), on February 12, 2026.
The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies.
Fiscal Year End
The Company’s fiscal year ends on December 31.
2. Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual amounts could differ from those estimates and such differences could be material.
Cash and Cash Equivalents
Cash and cash equivalents may consist of demand deposits, highly liquid investments (e.g., money market funds, U.S. Treasury notes, and similar type instruments) with original maturities of three months or less, and restricted cash pledged as collateral for certain centrally cleared derivative instruments. Cash and cash equivalents denominated in U.S. dollars are carried at cost, which approximates fair value. The Company deposits its cash and cash equivalents with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law.
Investments at Fair Value
Loan originations are recorded on the date of the binding commitment, which is generally the funding date. Investment transactions purchased through the secondary markets are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. The net change in unrealized gains or losses primarily reflects the change in investment values and also includes the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period.
Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available, as is the case for substantially all of our investments, are valued at fair value as determined in good faith by the Company’s Board of Directors (the “Board”), based on, among other things, the input of the Adviser, the Company’s Audit Committee and independent third-party valuation firms engaged at the direction of the Board.
As part of the valuation process, the Board takes into account relevant factors in determining the fair value of our investments, including and in combination of: the estimated enterprise value of a portfolio company (that is, the total value of the portfolio company’s net debt and equity), the nature and realizable value of any collateral, the portfolio company’s ability to make payments based on its earnings and cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, and overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Board considers whether the pricing indicated by the external event corroborates its valuation.
The Board undertakes a multi-step valuation process, which includes, among other procedures, the following:
The Company conducts this valuation process on a quarterly basis.
The Board has engaged independent third-party valuation firms to perform certain limited procedures that the Board has identified and requested them to perform in connection with the valuation process of investments for which no market quotations are readily available. At March 31, 2026, the independent third-party valuation firms performed their procedures over substantially all of the Company’s investments. Upon completion of such limited procedures, the third-party valuation firms concluded that the fair value, as determined by the Board, of those investments subjected to their limited procedures, appeared reasonable.
The Company applies Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurement (“ASC Topic 820”), as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and required disclosures of fair value measurements. ASC Topic 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC Topic 820, the Company
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considers its principal market to be the market that has the greatest volume and level of activity. ASC Topic 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in determination of fair value. In accordance with ASC Topic 820, these levels are summarized below:
Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur. In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC Topic 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various additional criteria in making the determination as to whether a particular investment would qualify for treatment as a Level 2 or Level 3 investment. For example, the Company reviews pricing provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality, such as the depth of the relevant market relative to the size of the Company’s position.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.
In addition, changes in the market environment including the impact of changes in broader market indices and credit spreads and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein.
Financial and Derivative Instruments
The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated financial statements, pursuant to ASC Topic 815 Derivatives and Hedging, further clarified by the FASB’s issuance of the Accounting Standards Update (“ASU”) No. 2017-12, Derivatives and Hedging, which was adopted in 2019 by the Company. For all derivative instruments designated in a hedge accounting relationship, the entire change in the fair value of the hedging instrument shall be recorded in the same line item of the Consolidated Statements of Operations as the hedged item. The Company uses certain interest rate swaps as derivative instruments to hedge the Company’s fixed rate debt, and therefore both the periodic payment and the change in fair value for the effective hedge, if applicable, will be recognized as components of interest expense in the Consolidated Statements of Operations. For derivative contracts entered into by the Company that are not designated in a hedge accounting relationship, the Company presents changes in the fair value through current period earnings.
In the normal course of business, the Company has commitments and risks resulting from its investment transactions, which may include those involving derivative instruments. Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. While the notional amount gives some indication of the Company’s derivative activity, it generally is not exchanged, but is only used as the basis on which interest and other payments are exchanged. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity, and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process.
Derivatives, including the Company’s interest rate swaps, for which broker quotes are available are typically valued at those broker quotes.
Offsetting Assets and Liabilities
Foreign currency forward contract and interest rate swap receivables or payables pending settlement are offset, and the net amount is included with receivable or payable for foreign currency forward contracts or interest rate swaps in the Consolidated Balance Sheets when, and only when, they are with the same counterparty, the Company has the legal right to offset the recognized amounts, and it intends to either settle on a net basis or realize the asset and settle the liability simultaneously.
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Foreign Currency
Foreign currency amounts are translated into U.S. dollars on the following basis:
Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. The Company’s current approach to hedging the foreign currency exposure in its non-U.S. dollar denominated investments is primarily to borrow the par amount in local currency under the Company’s Revolving Credit Facility to fund these investments. Fluctuations arising from the translation of foreign currency borrowings are included with the net change in unrealized gains (losses) on translation of assets and liabilities in foreign currencies on the Consolidated Statements of Operations.
Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.
Equity Offering Expenses
The Company records expenses related to equity offerings as a reduction of capital upon completion of an offering of registered securities. The costs associated with renewals of the Company’s shelf registration statement are expensed as incurred.
Debt Issuance Costs
The Company records origination and other expenses related to its debt obligations as deferred financing costs, which are presented as a direct deduction from the carrying value of the related debt liability. These expenses are deferred and amortized using the effective interest method, or straight-line method, over the stated maturity of the debt obligation.
Interest and Dividend Income Recognition
Interest income is recorded on an accrual basis and includes the amortization of discounts and premiums. Discounts and premiums to par value on securities purchased or originated are amortized into interest income over the contractual life of the respective security using the effective interest method. The amortized cost of investments represents the original cost adjusted for the amortization of discounts and premiums, if any.
Unless providing services in connection with an investment, such as syndication, structuring or diligence, all or a portion of any loan fees received by the Company will be deferred and amortized over the investment’s life using the effective interest method.
Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when management has reasonable doubt that the borrower will pay principal or interest in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest has been paid and, in management’s judgment, the borrower is likely to make principal and interest payments in the future. Management may determine to not place a loan on non-accrual status if, notwithstanding any failure to pay, the loan has sufficient collateral value and is in the process of collection.
Dividend income on preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies.
Other Income
From time to time, the Company may receive fees for services provided to portfolio companies by the Adviser. The services that the Adviser provides vary by investment, but may include syndication, structuring, arranger, diligence fees, or other service-based fees and fees for providing managerial assistance to our portfolio companies and are recognized as revenue when earned.
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Earnings per share
The Company's earnings per share (“EPS”) amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock assuming all potential shares had been issued and the additional shares of common stock were dilutive. Diluted EPS reflects the potential dilution, using the if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised.
Reimbursement of Transaction-Related Expenses
The Company may receive reimbursement for certain transaction-related expenses in pursuing investments. Transaction-related expenses, which are expected to be reimbursed by third parties, are typically deferred until the transaction is consummated and are recorded in Prepaid expenses and other assets on the date incurred. The transaction-related costs of pursuing investments not otherwise reimbursed are borne by the Company and for successfully completed investments included as a component of the investment’s cost basis.
Cash advances received in respect of transaction-related expenses are recorded as Cash and cash equivalents with an offset to Other liabilities or Other payables to affiliates. Other liabilities or Other payables to affiliates are relieved as reimbursable expenses are incurred.
Income Taxes, Including Excise Taxes
The Company has elected to be treated as a RIC under Subchapter M of the Code, and the Company intends to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must, among other things, distribute to its stockholders in each taxable year generally at least 90% of its investment company taxable income, as defined by the Code, and net tax-exempt income for that taxable year. To maintain its RIC status, the Company, among other things, has made and intends to continue to make the requisite distributions to its stockholders, which generally relieves the Company from corporate-level U.S. federal income taxes.
The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.
Depending on the level of taxable income earned in a tax year, the Company can be expected to carry forward taxable income (including net capital gains, if any) in excess of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such taxable income, as required. To the extent that the Company determines that the estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such income, the Company accrues excise tax on estimated excess taxable income.
For the three months ended March 31, 2026 and 2025, the Company recorded a net expense of $1.2 million and $1.4 million, respectively, for U.S. federal excise tax and other taxes.
Dividends to Common Stockholders
Dividends to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Board and is generally based upon the earnings estimated by the Adviser. Net realized long-term capital gains, if any, would generally be distributed at least annually, although the Company may decide to retain such capital gains.
The Company has adopted a dividend reinvestment plan that provides for reinvestment of any dividends declared in cash on behalf of stockholders, unless a stockholder elects to receive cash. As a result, if the Board authorizes, and it declares, a cash dividend, then the stockholders who have not “opted out” of the dividend reinvestment plan will have their cash dividends automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash dividend. The Company expects to use newly issued shares to satisfy the dividend reinvestment plan.
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Segment Reporting
The Company has one reportable segment: Investment Activity. The Investment Activity segment generates revenue primarily in the form of interest income from the investments it holds. In addition, the Company may generate income from dividends on equity investments, capital gains on the sale of investments and various loan origination and other fees.
The Company’s chief operating decision maker (the “CODM”) is comprised of the senior executive committee that includes the Chief Executive Officer, President, Chief Financial Officer, and the Deputy Chief Financial Officer.
The CODM uses the net increase (decrease) in net assets resulting from operations to evaluate income generated from segment investment activities. The evaluation and assessment of this metric is used in implementing investment policy decisions, strategic initiatives, managing the Company’s portfolio, evaluation of the Company’s distribution policy and assessing the performance of the portfolio.
The accounting policies of the Investment Activity segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the segment and determines how to allocate resources based on the net increase (decrease) in net assets resulting from operations that also is reported on the Consolidated Statement of Operations. Significant segment expenses are reported as total expenses on the Consolidated Statement of Operations. The measure of segment assets is reported on the Consolidated Balance Sheet as total assets.
Recent Accounting Standards and Regulatory Updates
In December 2024, the FASB issued ASU No. 2024-04, “Debt with Conversion and Other Options (Subtopic 470): Induced Conversions of Convertible Debt Instruments”, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions rather than as debt extinguishments. This update is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years, though early adoption is permitted. The Company adopted ASU 2024-04, effective March 31, 2026, and concluded that the application of this guidance did not have any material impact on its consolidated financial statements.
In November 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”, which intends to more closely align hedge accounting with the economics of an entity’s risk management activities. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years, though early adoption is permitted. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements.
In March 2026, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”)”, which intends to improve the guidance in Topic 270, Interim Reporting, in order to improve navigability of required interim disclosures and clarify when that guidance is applicable. This update is effective for interim periods in fiscal years beginning after December 15, 2027. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements.
In March 2026, the FASB issued ASU No. 2025-12, “Codification Improvements”, which is part of a standing project to address suggestions received from stakeholders that intends to clarify accounting guidance, correct errors and make technical corrections to the Accounting Standards Codification. This update is effective for interim periods in fiscal years beginning after December 15, 2026, though early adoption is permitted. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements.
3. Agreements and Related Party Transactions
Administration Agreement
On March 15, 2011, the Company entered into the Administration Agreement with the Adviser. Under the terms of the Administration Agreement, the Adviser provides administrative services to the Company. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the oversight of the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Adviser under the terms of the Administration Agreement. In addition, the Adviser is permitted to delegate its duties under the Administration Agreement to affiliates or third parties and the Company pays or reimburses the Adviser for certain expenses incurred by any such affiliates or third parties for work done on its behalf.
In February 2017, the Board of Directors of the Company and the Adviser entered into an amended and restated administration agreement (the “Administration Agreement”) reflecting certain clarifications to the agreement to provide greater detail regarding the scope of the reimbursable costs and expenses of the Administrator’s services.
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In November 2025, the Board renewed the Administration Agreement. Unless earlier terminated as described below, the Administration Agreement will remain in effect until November 2026, and may be extended subject to required approvals. The Administration Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party.
No person who is an officer, director or employee of the Adviser or its affiliates and who serves as a director of the Company receives any compensation from the Company for his or her services as a director. However, the Company reimburses the Adviser (or its affiliates) for the allocable portion of the costs of compensation, benefits, and related administrative expenses of the Company’s officers who provide operational and administrative services to the Company pursuant to the Administration Agreement, their respective staffs and other professionals who provide services to the Company (including, in each case, employees of the Adviser or an affiliate). Such reimbursable amounts include the allocable portion of the compensation paid by the Adviser or its affiliates to the Company’s Chief Financial Officer, Chief Compliance Officer, and other professionals who provide operational and administrative services to the Company pursuant to the Administration Agreement, including individuals who provide “back office” or “middle office” financial, operational, legal and/or compliance services to the Company. The Company reimburses the Adviser (or its affiliates) for the allocable portion of the compensation paid by the Adviser (or its affiliates) to such individuals based on the percentage of time those individuals devote, on an estimated basis, to the business and affairs of the Company and in acting on behalf of the Company. The Company may also reimburse the Adviser or its affiliates for the allocable portion of overhead expenses (including rent, office equipment and utilities) attributable thereto. Directors who are not affiliated with the Adviser receive compensation for their services and reimbursement of expenses incurred to attend meetings.
For the three months ended March 31, 2026 and 2025, the Company incurred expenses of $0.9 million and $1.0 million, respectively, for administrative services payable to the Adviser under the terms of the Administration Agreement, which is included in other general and administrative expenses in the Consolidated Statements of Operations.
Investment Advisory Agreement
On April 15, 2011, the Company entered into the Investment Advisory Agreement with the Adviser. The Investment Advisory Agreement was subsequently amended on December 12, 2011. Under the terms of the Investment Advisory Agreement, the Adviser provides investment advisory services to the Company. The Adviser’s services under the Investment Advisory Agreement are not exclusive, and the Adviser is free to furnish similar or other services to others so long as its services to the Company are not impaired. Under the terms of the Investment Advisory Agreement, the Company will pay the Adviser the Management Fee and may also pay certain Incentive Fees.
In November 2025, the Board renewed the Investment Advisory Agreement. Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect until November 2026, and may be extended subject to required approvals. The Investment Advisory Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party.
The Management Fee is calculated at an annual rate of 1.5% based on the average value of the Company’s gross assets calculated using the values at the end of the two most recently completed calendar quarters, adjusted for any share issuances or repurchases during the period. The Management Fee is payable quarterly in arrears.
For the three months ended March 31, 2026 and 2025, Management Fees (gross of waivers) were $12.6 million and $13.1 million, respectively.
Any waived Management Fees are not subject to recoupment by the Adviser.
The Adviser intends to waive a portion of the Management Fee payable under the Investment Advisory Agreement by reducing the Management Fee on assets financed using leverage over 200% asset coverage (in other words, over 1.0x debt to equity) (the “Leverage Waiver”). Pursuant to the Leverage Waiver, the Adviser intends to waive the portion of the Management Fee in excess of an annual rate of 1.0% (0.250% per quarter) on the average value of the Company's gross assets as of the end of the two most recently completed calendar quarters that exceeds the product of (i) 200% and (ii) the average value of our net asset value at the end of the two most recently completed calendar quarters. For the three months ended March 31, 2026 and 2025, the Adviser waived Management Fees of $0.3 million and $0.4 million, respectively, pursuant to the Leverage Waiver.
The Incentive Fee consists of two parts, as follows:
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Pre-Incentive Fee net investment income means dividends, interest and fee income accrued by the Company during the calendar quarter, minus the Company’s operating expenses for the quarter (including the Management Fee, expenses payable under the Administration Agreement to the Administrator, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay-in-kind interest and zero coupon securities), accrued income that the Company may not have received in cash. Pre-Incentive Fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital gains or losses.
For purposes of determining whether pre-Incentive Fee net investment income exceeds the hurdle rate, pre-Incentive Fee net investment income is expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter.
Section 205(b)(3) of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), prohibits the Adviser from receiving the payment of fees on unrealized gains until those gains are realized, if ever. There can be no assurance that such unrealized gains will be realized in the future.
For the three months ended March 31, 2026 and 2025, Incentive Fees were $8.5 million and $7.8 million, respectively, of which $8.5 million and $11.5 million, respectively, were realized and payable to the Adviser. For the three months ended March 31, 2026, there were no Incentive Fees accrued related to Capital Gains Fees. For the three months ended March 31, 2025, $(3.7) million of Incentive Fees were accrued related to Capital Gains Fees. As of March 31, 2026, the Capital Gains Fees accrued are not contractually payable to the Adviser.
Any waived Incentive Fees are not subject to recoupment by the Adviser.
Since the Company’s IPO, with the exception of its waiver of Management Fees and certain Incentive Fees attributable to the Company’s ownership of certain investments and the Leverage Waiver, the Adviser has not waived its right to receive any Management Fees or Incentive Fees payable pursuant to the Investment Advisory Agreement.
From time to time, the Adviser may pay amounts owed by the Company to third-party providers of goods or services, including the Board, and the Company will subsequently reimburse the Adviser for such amounts paid on its behalf. Amounts payable to the Adviser are settled in the normal course of business without formal payment terms.
4. Investments at Fair Value
Under the 1940 Act, the Company is required to separately identify non-controlled investments where it owns 5% or more of a portfolio company’s outstanding voting securities as investments in “affiliated” companies. In addition, under the 1940 Act, the Company is required to separately identify investments where it owns more than 25% of a portfolio company’s outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company as investments in “controlled” companies. Detailed information with respect to the Company’s non-controlled, non-affiliated; non-controlled, affiliated; and controlled, affiliated investments is contained in the accompanying consolidated financial statements, including the Consolidated Schedules of Investments. The information in the tables below is presented on an aggregate portfolio basis, without regard to whether they are non-controlled, non-affiliated; non-controlled, affiliated; or controlled, affiliated investments.
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Investments at fair value consisted of the following at March 31, 2026 and December 31, 2025:
Amortized Cost (1)
Fair Value
Net UnrealizedGain (Loss)
First-lien debt investments
2,963,245
2,959,032
(4,213
Second-lien debt investments
31,369
31,195
(174
Mezzanine debt investments
62,852
63,752
900
Equity investments
(2,655
Structured credit investments
(4,749
Joint venture investments
(10,891
2,934,162
2,984,501
50,339
69,631
30,678
(38,953
61,150
61,684
534
Equity and other investments
12,800
(685
24,035
The industry composition of investments at fair value at March 31, 2026 and December 31, 2025 is as follows:
11.2
13.4
3.1
8.8
9.0
8.9
8.0
7.9
18.3
Other (1)
5.8
5.3
Real Estate (2)
11.5
11.6
100.0
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The geographic composition of investments at fair value at March 31, 2026 and December 31, 2025 is as follows:
United States
Midwest
12.5
Northeast
18.0
18.6
South
22.9
West
28.5
29.8
Australia
Canada
Finland (1)
France
Germany
Italy
Netherlands
Norway
Sweden
United Kingdom
5. Derivatives
Interest Rate Swaps
The Company enters into interest rate swap transactions from time to time to hedge fixed rate debt obligations and certain fixed rate debt investments. The Company’s interest rate swaps are all with one counterparty and are centrally cleared through a registered commodities exchange. Refer to the Consolidated Schedule of Investments for additional disclosure regarding these interest rate swaps.
Cash flows related to the Company's derivatives are included within operating activities on the Consolidated Statements of Cash Flows. The following tables present the amounts paid and received on the Company’s interest rate swap transactions for the three months ended March 31, 2026 and 2025:
For the Three Months Ended March 31, 2026
Notional Amount
Paid
Received
Net
Interest rate swap
(4,195
(2,403
(4,952
5,213
261
(5,297
5,359
62
(3,865
4,172
307
(18,309
16,536
(1,773
For the Three Months Ended March 31, 2025
(4,788
1,833
(2,955
(5,453
(240
(5,881
(522
(1,367
1,406
39
(17,489
13,811
(3,678
For the three months ended March 31, 2026 and 2025, the Company recognized $5.5 million of unrealized losses and $17.6 million of unrealized gains, respectively, on interest rate swaps designated as hedging instruments in the Consolidated Statements of Operations. For the three months ended March 31, 2026 and 2025, this amount was offset by an increase of $2.1 million and $3.4 million, respectively, for a change in carrying value of the 2026 Notes, a decrease of $2.4 million and an increase of $3.6 million, respectively, for a change in carrying value of the 2028 Notes, a decrease of $2.7 million and an increase of $5.0 million, respectively, for a change in carrying value of the 2029 Notes and a decrease of $2.5 million and an increase of $5.6 million, respectively, for a change in carrying value of the 2030 Notes.
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As of March 31, 2026, the swap transactions had a fair value of $4.7 million, which is netted against cash collateral of $28.1 million. Cash is pledged as collateral under the Company’s derivative agreements and is included in restricted cash as a component of cash and cash equivalents on the Company’s Consolidated Balance Sheet. As of December 31, 2025, the swap transactions had a fair value of $10.3 million, which is netted against cash collateral of $16.7 million. Cash is pledged as collateral under the Company’s derivative agreements and is included in restricted cash as a component of cash and cash equivalents on the Company’s Consolidated Balance Sheet.
The Company is required under the terms of its derivatives agreements to pledge assets as collateral to secure its obligations underlying the derivatives. The amount of collateral required varies over time based on the mark-to-market value, notional amount and remaining term of the derivatives, and may exceed the amount owed by the Company on a mark-to-market basis. Any failure by the Company to fulfill any collateral requirement (e.g., a so-called “margin call”) may result in a default. In the event of a default by a counterparty, the Company would be an unsecured creditor to the extent of any such overcollateralization.
The Company may enter into other derivative instruments and incur other exposures with the same or other counterparties in the future.
6. Fair Value of Financial Instruments
Investments
The following tables present fair value measurements of investments as of March 31, 2026 and December 31, 2025:
Fair Value Hierarchy at March 31, 2026
Level 1
Level 2
Level 3
16,067
2,942,965
31,073
14,826
125,399
Total investments at fair value
120,761
3,177,854
Interest rate swaps
125,489
3,318,169
Fair Value Hierarchy at December 31, 2025
28,204
2,956,297
222
30,456
28,169
133,397
137,314
3,181,834
147,615
3,357,618
Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur.
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The following tables present the changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three months ended March 31, 2026 and 2025:
As of and for the Three Months Ended
First-liendebtinvestments
Second-liendebtinvestments
Mezzanine debtinvestments
Equityand structuredcredit investments
Balance, beginning of period
Purchases or originations
148,095
162,769
Repayments / redemptions
(116,146
Sales Proceeds
3,873
1,136
1,667
6,676
Net change in unrealized gains (losses)
(53,390
38,849
367
(4,470
(18,644
Net realized gains (losses)
(39,489
(3,255
(42,739
Net amortization of discount on securities
4,221
121
4,376
Transfers within Level 3
Transfers into (out of) Level 3
(282
Balance, End of Period
Dye & Durham, Ltd. was transferred out of Level 3 into Level 1 for fair value measurement purposes during the three months ended March 31, 2026, as a result of changes in the observability of inputs into the security valuation for these portfolio companies.
Equityand otherinvestments
3,287,829
18,535
39,091
139,586
3,485,041
143,772
15,357
12,740
2,721
174,590
(287,890
(1,557
3,292
805
1,055
81
5,233
(8,324
(2,486
(728
746
(10,792
375
399
6,095
89
6,205
3,144,798
32,300
52,179
141,952
3,371,229
The following table presents information with respect to the net change in unrealized gains or losses on investments for which Level 3 inputs were used in determining fair value that are still held by the Company at March 31, 2026 and 2025:
Net Change in Unrealized
Gains or (Losses)
for the Three Months Ended
March 31, 2026 on
March 31, 2025 on
Investments Held at
(50,872
(2,959
(640
(55,615
(5,427
The following tables present the fair value of Level 3 Investments and the significant unobservable inputs used in the valuations as of March 31, 2026 and December 31, 2025. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.
Valuation
Unobservable
Range (Weighted
Impact to Valuationfrom an
Technique
Input
Average)
Increase to Input
Income approach (1)
Discount rate
7.1% — 25.0% (12.2%)
Decrease
Income approach
12.4% — 15.7% (14.8%)
Income approach (2)
8.0% — 12.1% (11.4%)
Market Multiple (3)
Comparable multiple
1.5x — 20.0x (10.9x)
Increase
Income approach (4)
6.6% — 17.5% (11.0%)
12.5% — 15.3% (14.2%)
10.8% — 20.0% (11.1%)
1.8x — 25.0x (10.4x)
The Company typically determines the fair value of its performing Level 3 debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to the expected life, portfolio company performance since close, and other terms and risks associated with an investment. Among other factors, a determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company’s capital structure.
Significant unobservable quantitative inputs typically considered in the fair value measurement of the Company’s Level 3 debt investments primarily include current market yields, including relevant market indices, but may also include quotes from brokers, dealers, and pricing services as indicated by comparable investments. If debt investments are credit impaired, an enterprise value analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate enterprise value. For the Company’s Level 3 equity investments, multiples of similar companies’ revenues, earnings before income taxes, depreciation and amortization (“EBITDA”) or some combination thereof and comparable market transactions are typically used.
Structured Credit Partners JV, LLC (“SCP”)
On December 23, 2025, affiliates of Sixth Street, including us, and affiliates of Carlyle entered into the Limited Liability Company Agreement to co-manage SCP, a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt managed by affiliates of Sixth Street or Carlyle on a no-fee basis.
Sixth Street affiliates own 50.0% of the equity interests in SCP and Carlyle affiliates own 50.0%, with investment decisions requiring approval by representatives of both the Sixth Street affiliates and the Carlyle affiliates. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments. Funding of such commitments requires the approval of
40
SCP’s board of managers, including the board members appointed by the Company. SCP’s board of managers consists of an equal number of representatives appointed by the Sixth Street-affiliated members of SCP and the Carlyle-affiliated members of SCP. Portfolio construction and investment decisions must be unanimously approved by SCP’s investment committee, as delegated by the board of managers of SCP. Our investment in SCP is made with certain of our affiliates in accordance with the terms of the exemptive relief that we received from the SEC. Because the Company does not own more than 25% of the voting interests of SCP, the Company does not believe that it has control over SCP for accounting purposes under U.S. GAAP or for purposes of the 1940 Act and therefore, does not consolidate SCP.
As of March 31, 2026 SCP had total capital commitments of $600.0 million comprised of $200.0 million of capital commitments from Sixth Street Specialty Lending, Inc., $100.0 million of capital commitments from Sixth Street Lending Partners, $150.0 million of capital commitments from Carlyle Secured Lending, Inc., and $150.0 million of capital commitments from Carlyle Credit Solutions, Inc., with all members of SCP having equal voting control.
As of March 31, 2026, SCP had the following contributed capital and unfunded commitments from its members:
Total contributed capital by Sixth Street Specialty Lending Inc.
Total contributed capital by Sixth Street Lending Partners
7,335
Total contributed capital by Carlyle
22,000
Total contributed capital
44,000
Total unfunded commitments by Sixth Street Specialty Lending Inc.
185,336
Total unfunded commitments by Sixth Street Lending Partners
92,666
Total unfunded commitments by Carlyle
278,002
Total unfunded commitments
556,004
As of March 31, 2026, SCP had three wholly owned subsidiaries: (i) Carlyle US CLO 2026-A, Ltd., a Cayman Islands corporation, formed on December 23, 2025; (ii) Carlyle US CLO 2026-B, Ltd., a Cayman Islands corporation, formed on January 5, 2026 and (iii) Sixth Street SCP Warehouse 2, Ltd., a Cayman Islands corporation, formed on January 14, 2026. Each subsidiary primarily invests in broadly syndicated loans. As the subsidiaries are wholly owned subsidiaries, they are consolidated in SCP’s unaudited consolidated financial statements commencing from the date of their respective formation.
Below is selected consolidated balance sheet information for SCP as of March 31, 2026:
Selected Consolidated Balance Sheet Information:
Investments at fair value (amortized cost of $1,033,006)
1,028,239
Cash and cash equivalents (1)
12,389
4,042
1,044,670
Liabilities and Members' Equity
Secured borrowings
320,581
Dividend payable
670
Accrued expenses and other liabilities
684,707
Members equity (2)
38,712
Total Liabilities and Members' Equity
Below is selected consolidated statement of operations information for SCP for the three months ended March 31, 2026:
41
Selected Consolidated Statement of Operations Information:
1,450
Interest expense
531
Other expenses
1,331
Net change in unrealized gains (losses) on investments
(4,767
Net realized gains (losses) on investments
(4,618
For the three months ended March 31, 2026, SCP declared $0.7 million in distributions, of which $0.2 million was recognized as dividend income in the Company’s Unaudited Statements of Operations. As of March 31, 2026, the daily weighted average yield on our investment in Structured Credit Partners JV, LLC was 10.7%.
Below is a summary of SCP’s portfolio as of March 31, 2026:
Senior secured loans (1)
1,044,693
Weighted average yield on senior secured loans at amortized cost
6.92
Weighted average yield on senior secured loans at fair value
6.95
Weighted average spread on senior secured loans
2.89
Number of portfolio companies in SCP
334
Percentage of loans at floating interest rates
42
The industry composition of SCP’s portfolio at fair value as of March 31, 2026 is as follows:
Amortized Cost
% of Fair Value
Aerospace & Defense
40,712
40,659
Auto Aftermarket & Services
30,623
30,497
Beverage & Food
32,615
32,606
130,746
130,199
12.6
Capital Equipment
59,961
59,813
Chemicals, Plastics & Rubber
21,009
20,809
Construction & Building
41,280
40,894
Consumer goods: Durable
16,495
16,416
Consumer goods: Non-durable
13,240
13,156
Consumer Services
84,546
84,303
8.2
Containers, Packaging & Glass
30,493
30,035
Diversified Financial Services
121,301
120,611
11.7
Energy: Electricity
5,451
5,436
Energy: Oil & Gas
15,418
15,414
Environmental Industries
8,720
8,742
Forest Products & Paper
5,386
5,130
Healthcare & Pharmaceuticals
60,156
60,096
High Tech Industries
72,970
72,589
7.1
Leisure Products & Services
66,587
66,372
Media: Advertising, Printing & Publishing
12,118
Media: Broadcasting & Subscription
2,723
Media: Diversified & Production
21,050
Metals & Mining
3,981
3,975
Retail
22,661
22,493
2.2
Telecommunications
10,481
10,454
Transportation: Cargo
5,198
5,184
Transportation: Consumer
19,309
19,194
Utilities: Electric
3,187
3,202
Utilities: Oil & Gas
1,954
1,948
Wholesale
72,643
72,105
1,033,006
The geographic composition of SCP’s portfolio at fair value as of March 31, 2026 is as follows:
1,855
Bermuda
1,359
1,386
11,106
11,021
Denmark
589
587
15,050
15,048
Hong Kong
3,210
3,174
Luxembourg
19,525
19,446
13,418
13,314
15,189
15,126
951,705
947,288
92.1
Financial Instruments Not Carried at Fair Value
Debt
The fair value of the Company’s Revolving Credit Facility, which is categorized as Level 3 within the fair value hierarchy, as of March 31, 2026 and December 31, 2025, approximates its carrying value as the outstanding balance is callable at carrying value.
The following table presents the fair value of the Company’s 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes as of March 31, 2026 and December 31, 2025.
OutstandingPrincipal
FairValue (1)
2026 Notes
297,152
296,659
2028 Notes
306,794
314,473
2029 Notes
351,822
361,359
2030 Notes
294,065
303,186
1,249,833
1,275,677
Other Financial Assets and Liabilities
The carrying amounts of the Company’s assets and liabilities, other than investments at fair value and the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes, approximate fair value due to their short maturities or their close proximity of the originations to the measurement date. Under the fair value hierarchy, cash and cash equivalents are classified as Level 1 while the Company’s other assets and liabilities, other than investments at fair value and Revolving Credit Facility, are classified as Level 2.
7. Debt
Revolving Credit Facility
On August 23, 2012, the Company entered into a senior secured revolving credit agreement with Truist Bank (as a successor by merger to SunTrust Bank), as administrative agent, and J.P. Morgan Chase Bank, N.A., as syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).
As of March 31, 2026, aggregate commitments under the Revolving Credit Facility were $1.675 billion. The Revolving Credit Facility includes an uncommitted accordion feature that allows the Company, under certain circumstances, to increase the size of the Revolving Credit Facility to up to $2.5 billion.
Pursuant to the Seventeenth Amendment dated May 1, 2026, with respect to $1.525 billion of commitments, the revolving period, during which period we, subject to certain conditions, may make borrowings under the Revolving Credit Facility, was extended to May 1, 2030 and the stated maturity was extended to May 1, 2031.
The Company may borrow amounts in U.S. dollars or certain other permitted currencies. As of March 31, 2026, the Company had outstanding debt denominated in Australian dollars (AUD) of 3.0 million, British pounds (GBP) of 48.7 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 220.0 million and Euro (EUR) of 270.7 million on its Revolving Credit Facility, included in the Outstanding Principal amount in the table above. As of December 31, 2025, the Company had outstanding debt denominated in Australian dollars (AUD) of 3.0 million, British pounds (GBP) of 48.5 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 218.0 million and Euro (EUR) of 245.9 million on its Revolving Credit Facility, included in the Outstanding Principal amount in the table above.
The Revolving Credit Facility also provides for the issuance of letters of credit up to an aggregate amount of $75 million. As of March 31, 2026 and December 31, 2025, the Company had $22.8 million and $21.7 million outstanding letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit issued through the Revolving Credit Facility.
44
For the $1.525 billion of commitments, amounts drawn under the Revolving Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either the applicable reference rate plus an applicable credit spread adjustment, plus a margin of either 1.525%, 1.65% or 1.775%, or the base rate plus a margin of either 0.525%, 0.65% or 0.775%, in each case, based on the total amount of the borrowing base relative to the sum of the total commitments (or, if greater, the total exposure) under the Revolving Credit Facility plus certain other designated secured debt. For the remaining $150.0 million of commitments, amounts drawn under the Revolving Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either the applicable reference rate plus an applicable credit spread adjustment, plus a margin of either 1.75% or 1.875% or the base rate plus a margin of either 0.75% or 0.875%, in each case, based on the total amount of the borrowing base relative to the sum of the total commitments (or, if greater, the total exposure) under the Revolving Credit Facility plus certain other designated secured debt. The Company may elect either the applicable reference rate or base rate at the time of drawdown, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company also pays a fee of 0.325% on undrawn amounts and, in respect of each undrawn letter of credit, a fee and interest rate equal to the then applicable margin while the letter of credit is outstanding.
The Revolving Credit Facility is guaranteed by Sixth Street SL SPV, LLC, TC Lending, LLC and Sixth Street SL Holding, LLC. The Revolving Credit Facility is secured by a perfected first-priority security interest in substantially all the portfolio investments held by the Company and each guarantor. Proceeds from borrowings may be used for general corporate purposes, including the funding of portfolio investments.
The Revolving Credit Facility includes customary events of default, as well as customary covenants, including restrictions on certain distributions and financial covenants. In accordance with the terms of the Sixteenth Amendment, the financial covenants require:
The Revolving Credit Facility also contains certain additional concentration limits in connection with the calculation of the borrowing base, based on the Obligor Asset Coverage Ratio.
As of March 31, 2026 and December 31, 2025, the Company was in compliance with the terms of the Revolving Credit Facility.
In February 2021, the Company issued $300.0 million aggregate principal amount of unsecured notes that mature on August 1, 2026 (the “2026 Notes”). The principal amount of the 2026 Notes is payable at maturity. The 2026 Notes bear interest at a rate of 2.50% per year, payable semi-annually commencing on August 1, 2021, and may be redeemed in whole or in part at the Company’s option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2026 Notes, net of underwriting discounts and estimated offering costs, were $293.7 million. The Company used the net proceeds of the 2026 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2026 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 1, 2026, matching the maturity date of the 2026 Notes. As a result of the swap, the Company’s effective interest rate on the 2026 Notes is SOFR plus 2.17%. The interest expense related to the 2026 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on the Company’s Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $(3.7) million and $(5.8) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2026 Notes.
In August 2023, the Company issued $300.0 million aggregate principal amount of unsecured notes that mature on August 14, 2028 (the “2028 Notes”). The principal amount of the 2028 Notes is payable at maturity. The 2028 Notes bear interest at a rate of 6.95% per year, payable semi-annually commencing on February 14, 2024, and may be redeemed in whole or in part at the Company’s option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2028 Notes, net of
underwriting discounts, offering costs and original issue discount, were $293.9 million. The Company used the net proceeds of the 2028 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2028 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 14, 2028, matching the maturity date of the 2028 Notes. As a result of the swap, the Company’s effective interest rate on the 2028 Notes is SOFR plus 2.99%. The interest expense related to the 2028 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on the Company’s Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $2.1 million and $4.5 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2028 Notes.
In January 2024, the Company issued $350.0 million aggregate principal amount of unsecured notes that mature on March 1, 2029 (the “2029 Notes”). The principal amount of the 2029 Notes is payable at maturity. The 2029 Notes bear interest at a rate of 6.125% per year, payable semi-annually commencing on September 1, 2024, and may be redeemed in whole or in part at the Company’s option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2029 Notes, net of underwriting discounts, offering costs and original issue discount, were $341.6 million. The Company used the net proceeds of the 2029 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2029 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $350.0 million, which matures on March 1, 2029, matching the maturity date of the 2029 Notes. As a result of the swap, the Company’s effective interest rate on the 2029 Notes is SOFR plus 2.44%. The interest expense related to the 2029 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on the Company’s Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $0.6 million and $3.3 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2029 Notes.
In February 2025, the Company issued $300.0 million aggregate principal amount of unsecured notes that mature on August 15, 2030 (the “2030 Notes”). The principal amount of the 2030 Notes is payable at maturity. The 2030 Notes bear interest at a rate of 5.625% per year, payable semi-annually commencing on August 15, 2025, and may be redeemed in whole or in part at our option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2030 Notes, net of underwriting discounts, offering costs and original issue discount, were $293.4 million. The Company used the net proceeds of the 2030 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2030 Notes, the Company entered into an interest rate swap to align the interest rates of its liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 15, 2030, matching the maturity date of the 2030 Notes. As a result of the swap, the Company's effective interest rate on the 2030 Notes is SOFR plus 1.53%. The interest expense related to the 2030 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on the Company's Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $5.7 million and $8.3 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2030 Notes.
For the three months ended March 31, 2026 and 2025, the components of interest expense related to the 2026 Notes, 2028 Notes, 2029 Notes, and 2030 Notes were as follows:
16,666
14,134
Accretion of original issue discount
824
711
Total Interest Expense
17,985
15,240
Total interest expense in the table above does not include the effect of the interest rate swaps related to the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes. During the three months ended March 31, 2026 and 2025, the Company received $16.5 million and $13.8 million, respectively, and paid $18.3 million and $17.5 million respectively, related to the settlements of its interest rate swaps related
to the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes. These net amounts are included in interest expense in the Company’s Consolidated Statements of Operations. Please see Note 5 for further information about the Company’s interest rate swaps.
As of March 31, 2026, the components of the carrying value of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes and the stated interest rates were as follows:
Principal amount of debt
Original issue discount, net of accretion
(143
(928
(2,050
(2,954
(252
(2,051
(2,873
(3,276
Fair value of an effective hedge
Carrying value of debt
295,930
299,068
345,693
299,510
Stated interest rate
2.50
6.13
5.63
As of December 31, 2025, the components of the carrying value of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes and the stated interest rates were as follows:
(249
(1,015
(2,207
(3,099
(436
(2,264
(3,115
(3,461
293,530
301,216
347,985
301,724
The stated interest rate in the table above does not include the effect of the interest rate swaps. As of March 31, 2026, the Company's swap-adjusted interest rate on the 2026 Notes, 2028 Notes, 2029 Notes and 2030 notes was SOFR plus 2.17%, 2.99%, 2.44% and 1.53%, respectively. As of December 31, 2025, the Company's swap-adjusted interest rate on the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes was SOFR plus 2.17%, 2.99%, 2.44% and 1.53%, respectively.
As of March 31, 2026 and December 31, 2025, the Company was in compliance with the terms of the indentures governing the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes.
In accordance with the 1940 Act, with certain limitations, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. As of March 31, 2026 and December 31, 2025, the Company’s asset coverage was 184.7% and 191.5% respectively.
Debt obligations consisted of the following as of March 31, 2026 and December 31, 2025:
AggregatePrincipalAmountCommitted
AmountAvailable (1)
CarryingValue (2)(3)
1,675,000
577,432
1,074,795
563,190
Total Debt
2,925,000
1,827,432
47
513,915
1,139,337
498,779
1,763,915
For the three months ended March 31, 2026 and 2025, the components of interest expense were as follows:
23,399
26,780
Commitment fees
873
624
Swap settlement
1,773
3,678
Average debt outstanding (in millions)
1,830.9
1,908.1
Weighted average interest rate
5.5
6.4
8. Commitments and Contingencies
Portfolio Company Commitments
From time to time, the Company may enter into commitments to fund investments; such commitments are incorporated into the Company’s assessment of its liquidity position. The Company’s senior secured revolving loan commitments are generally available on a borrower’s demand and may remain outstanding until the maturity date of the applicable loan. The Company’s senior secured delayed draw term loan commitments are generally available on a borrower’s demand and, once drawn, generally have the same remaining term as the associated loan agreement. Undrawn senior secured delayed draw term loan commitments generally have a shorter availability period than the term of the associated loan agreement.
As of March 31, 2026 and December 31, 2025, the Company had the following commitments to fund investments in current portfolio companies:
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Alaska Bidco Oy - Delayed Draw & Revolver
241
246
Aledade, Inc. - Revolver
22,750
24,136
American Achievement, Corp. - Revolver
2,403
Arcwood Environmental, Inc. - Revolver
1,815
Arrowhead Pharmaceuticals, Inc. - Delayed Draw
26,645
27,643
Artisan Bidco, Inc. - Revolver
1,429
AVSC Holding Corp. - Revolver
3,963
4,833
Azurite Intermediate Holdings, Inc. - Revolver & Equity
5,575
Bayshore Intermediate #2, L.P. - Revolver
2,734
BCTO Ace Purchaser, Inc. - Delayed Draw & Revolver
324
Cirrus (Bidco) Ltd - Delayed Draw
440
448
Cordance Operations, LLC - Delayed Draw & Revolver
2,053
2,594
Coupa Holdings, LLC - Delayed Draw & Revolver
6,809
Crewline Buyer, Inc. - Revolver & Equity
6,148
EDB Parent, LLC - Delayed Draw
3,621
5,603
Elysian Finco Ltd. - Revolver
1,070
EMS Linq, Inc. - Revolver
5,481
5,868
Erling Lux Bidco SARL - Delayed Draw & Revolver
5,466
6,134
Eventus Buyer, LLC - Delayed Draw & Revolver
10,733
8,633
ExtraHop Networks, Inc. - Revolver
446
Flight Intermediate HoldCo, Inc. - Delayed Draw
30,893
32,131
Galileo Parent, Inc. - Revolver
3,462
Greenshoot Bidco B.V. - Revolver
362
461
Hippo XPA Bidco AB - Delayed Draw & Revolver
9,103
9,407
HireVue, Inc. - Delayed Draw
7,643
HMP Omnimedia, LLC - Delayed Draw & Revolver
10,227
9,818
Ingenovis Health Finance, LLC - Revolver
32,500
IRGSE Holding Corp. - Revolver
3,337
5,707
Kahua, Inc. - Delayed Draw
5,000
Kangaroo Bidco AS - Delayed Draw
4,375
Kaseware Intermediate Holding Company - Delayed Draw & Revolver
4,910
6,749
Kryptona BidCo US, LLC - Revolver
2,165
LeanTaaS Holdings, Inc. - Delayed Draw
11,520
12,015
Leg Purchaser Inc. - Revolver
5,478
LIHA Holdco B.V. - Delayed Draw & Revolver
157
753
Lynx BidCo - Delayed Draw & Revolver
Marcura Equities LTD - Revolver
MindBody, Inc. - Revolver
3,611
Omnigo Software, LLC - Delayed Draw & Revolver
1,875
PDI TA Holdings, Inc. - Revolver
109
437
Rail Acquisitions LLC - Delayed Draw & Revolver
5,660
RainFocus, LLC - Delayed Draw
5,322
Rapid Data GmbH Unternehmensberatung - Delayed Draw & Revolver
1,208
1,231
Raptor US Buyer II Corp. - Revolver
Sapphire Software Buyer, Inc. - Revolver
3,243
Scorpio Bidco - Delayed Draw
564
575
Sediver S.p.A. - Delayed Draw
4,035
4,113
Severin Acquisition, LLC - Delayed Draw & Revolver
3,783
4,380
Shiftmove GmbH - Delayed Draw
9,981
10,174
SMA Technologies Holdings, LLC - Revolver
1,009
Sport Alliance GmbH - Revolver
480
Structured Credit Partners JV, LLC - Equity
Tango Management Consulting, LLC - Delayed Draw & Revolver
22,070
23,799
TRP Assets, LLC - Delayed Draw
10,166
TS Imagine Inc. - Revolver
434
768
USA Debusk LLC - Delayed Draw & Revolver
1,038
2,519
49
Varinem German Bidco GmbH - Delayed Draw
3,875
4,917
Velocity Clinical Research, Inc. - Delayed Draw & Revolver
7,949
8,814
Wrangler Topco, LLC - Delayed Draw & Revolver
626
Total Portfolio Company Commitments (1)(2)
512,397
338,507
Other Commitments and Contingencies
As of March 31, 2026 and December 31, 2025, the Company did not have any unfunded commitments to fund investments to new borrowers that were not current portfolio companies as of such date.
From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of March 31, 2026 and December 31, 2025, management is not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.
9. Net Assets
The Company has a dividend reinvestment plan, whereby the Company may buy shares of its common stock in the open market or issue new shares in order to satisfy dividend reinvestment requests. The number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the cash dividend or distribution payable to a stockholder by the market price per share of the Company’s common stock at the close of regular trading on the NYSE on the payment date of a distribution, or if no sale is reported for such day, the average of the reported bid and ask prices. However, if the market price per share on the payment date of a cash dividend or distribution exceeds the most recently computed net asset value per share, the Company will issue shares at the greater of (i) the most recently computed net asset value per share and (ii) 95% of the current market price per share (or such lesser discount to the current market price per share that still exceeded the most recently computed net asset value per share). Shares purchased in open market transactions by the plan administrator will be allocated to a stockholder based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market.
Pursuant to the Company’s dividend reinvestment plan, the following tables summarize the shares issued to stockholders who have not opted out of the Company’s dividend reinvestment plan during the three months ended March 31, 2026 and 2025. All shares issued to stockholders in the tables below are newly issued shares.
For the three months ended
Date
Date Declared
Dividend (1)
Record Date
Shares Issued
February 12, 2026
Supplemental
February 27, 2026
March 20, 2026
6,241
Base
March 16, 2026
308,209
Total Shares Issued
February 13, 2025
February 28, 2025
March 20, 2025
39,839
March 14, 2025
263,083
On August 4, 2015, the Company's Board authorized the Company to acquire up to $50 million in aggregate of the Company’s common stock from time to time over an initial six month period, and has continued to authorize the refreshment of the $50 million amount authorized under and extension of the stock repurchase program prior to its expiration since that time, most recently as of November 4, 2025 (expiring May 31, 2026). Under the program, we may repurchase up to $50 million in the aggregate of our outstanding common stock in the open market, from time to time, at certain thresholds below our net asset value per share, in
accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The amount and timing of stock repurchases under the program may vary depending on market conditions, and no assurance can be given that any particular amount of common stock will be repurchased.
No shares were repurchased during the three months ended March 31, 2026 and 2025.
At the Market Offerings
The Company is a party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that the Company may from time to time issue and sell, by means of “at the market” offerings, up to $100 million of the Company's common stock. Subject to the terms and conditions of the Equity Distribution Agreements, sales of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. Under the currently effective Equity Distribution Agreements, common stock with an aggregate offering amount of $100 million remained available for issuance as of March 31, 2026.
10. Earnings per share
The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2026 and 2025:
11. Dividends
The Company has historically paid a dividend to stockholders on a quarterly basis. The Company has a dividend framework that provides for a quarterly base dividend and a variable supplemental dividend, subject to satisfaction of certain measurement tests and the approval of the Board.
The following tables summarize dividends declared during the three months ended March 31, 2026 and 2025:
Dividend
Payment Date
Dividend per Share
0.01
0.46
Total Dividends Declared
0.47
0.07
0.53
The dividends declared during the three months ended March 31, 2026 and 2025 were derived from net investment income and long-term capital gains, determined on a tax basis.
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12. Financial Highlights
The following per share data and ratios have been derived from information provided in the consolidated financial statements. The following are the financial highlights for one share of common stock outstanding during the three months ended March 31, 2026 and 2025:
Per Share Data (8)
Net asset value, beginning of period
17.16
Net investment income (1)
0.42
0.62
Net realized and unrealized gains (losses) (1)
(0.69
(0.23
Total from operations
Issuance of common stock, net of offering costs (2)
0.02
Dividends declared (2)
(0.47
(0.53
Total increase/(decrease) in net assets
(0.74
(0.12
Net Asset Value, End of Period
17.04
Per share market value at end of period
18.38
22.38
Total return based on market value with reinvestment of dividends (3)
(13.10
)%
7.70
Total return based on market value (4)
(13.21
7.56
Total return based on net asset value (5)
(1.59
2.40
Shares Outstanding, End of Period
Ratios / Supplemental Data (6)
Ratio of net expenses to average net assets (7)
13.60
14.55
Ratio of net investment income to average net assets
10.11
14.45
Portfolio turnover
16.07
21.21
Net assets, end of period
13. Subsequent Events
The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events, except as already disclosed, that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three months ended March 31, 2026.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward-Looking Statements” in this report.
Overview
Sixth Street Specialty Lending, Inc. is a Delaware corporation formed on July 21, 2010. The Adviser is our external manager. We have four wholly owned subsidiaries, TC Lending, LLC, a Delaware limited liability company, which holds a California finance lender and broker license, Sixth Street SL SPV, LLC, a Delaware limited liability company, Sixth Street SL Holding, LLC, a Delaware limited liability company, and Sixth Street Specialty Lending Sub, LLC, a Cayman Islands limited liability company.
We have elected to be regulated as a BDC under the 1940 Act and as a RIC under the Code. We made our BDC election on April 15, 2011. As a result, we are required to comply with various statutory and regulatory requirements, such as:
Our shares are listed on the NYSE under the symbol “TSLX.”
Our Investment Framework
We are a specialty finance company focused on lending to middle-market companies. Since we began our investment activities in July 2011, through March 31, 2026, we have originated approximately $55.2 billion aggregate principal amount of investments and retained approximately $11.9 billion aggregate principal amount of these investments on our balance sheet prior to any subsequent exits and repayments. We seek to generate current income primarily in U.S.-domiciled middle-market companies through direct investment originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds, equity securities, and other instruments.
By “middle-market companies,” we mean companies that have annual EBITDA, which we believe is a useful proxy for cash flow, of $10 million to $250 million, although we may invest in larger or smaller companies on occasion. As of March 31, 2026, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 87.8% of our total investments based on fair value, had weighted average annual revenue of $425.1 million and weighted average annual EBITDA of $126.8 million. As of March 31, 2026, our core portfolio companies had a median annual revenue of $174.4 million and a median annual EBITDA of $53.5 million.
We invest in first-lien debt, second-lien debt, mezzanine and unsecured debt and equity and other investments. Our first-lien debt may include stand-alone first-lien loans; “last out” first-lien loans, which are loans that have a secondary priority behind super-senior “first out” first-lien loans; “unitranche” loans, which are loans that combine features of first-lien, second-lien and mezzanine debt, generally in a first-lien position; and secured corporate bonds with similar features to these categories of first-lien loans. Our second-lien debt may include secured loans, and, to a lesser extent, secured corporate bonds, with a secondary priority behind first-lien debt.
The debt in which we invest typically is not rated by any rating agency, but if these instruments were rated, they would likely receive a rating of below investment grade (that is, below BBB- or Baa3 as defined by Standard & Poor’s and Moody’s Investors Services, respectively), which is often referred to as “junk.”
The companies in which we invest use our capital to support organic growth, acquisitions, market or product expansion and recapitalizations (including restructurings). As of March 31, 2026, the largest single investment based on fair value represented 2.4% of our total investment portfolio.
As of March 31, 2026, the average investment size in each of our portfolio companies was approximately $23.2 million based on fair value. Portfolio companies includes investments in structured credit investments, which include each series of collateralized loan
obligation as a portfolio company investment. When excluding investments in structured credit investments, the average investment in our remaining portfolio companies was approximately $30.1 million based on fair value as of March 31, 2026.
Through our Adviser, we consider potential investments utilizing a four-tiered investment framework and against our existing portfolio as a whole:
Business and sector selection. We focus on companies with enterprise value between $50 million and $1 billion. When reviewing potential investments, we seek to invest in businesses with high marginal cash flow, recurring revenue streams and where we believe credit quality will improve over time. We look for portfolio companies that we think have a sustainable competitive advantage in growing industries or distressed situations. We also seek companies where our investment will have a low loan-to-value ratio.
We currently do not limit our focus to any specific industry and we may invest in larger or smaller companies on occasion. We classify the industries of our portfolio companies by end-market (such as healthcare, and business services) and not by the products or services (such as software) directed to those end-markets.
As of March 31, 2026, the largest industry represented 18.3% of our total investment portfolio based on fair value.
Investment Structuring. We focus on investing at the top of the capital structure and protecting that position. As of March 31, 2026, approximately 90.2% of our portfolio was invested in secured debt, including 89.3% in first-lien debt investments. We carefully perform diligence and structure investments to include strong investor covenants. As a result, we structure investments with a view to creating opportunities for early intervention in the event of non-performance or stress. In addition, we seek to retain effective voting control in investments over the loans or particular class of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We also aim for our loans to mature on a medium term, between two to seven years after origination. For the three months ended March 31, 2026, the weighted average term on new investment commitments in new portfolio companies was 6.3 years.
Deal Dynamics. We focus on, among other deal dynamics, direct origination of investments, where we identify and lead the investment transaction. A substantial majority of our portfolio investments are sourced through our direct or proprietary relationships.
Risk Mitigation. We seek to mitigate non-credit-related risk on our returns in several ways, including call protection provisions to protect future interest income. As of March 31, 2026, we had call protection on 72.7% of our debt investments based on fair value, with weighted average call prices of 108.1% for the first year, 104.3% for the second year and 101.7% for the third year, in each case from the date of the initial investment. As of March 31, 2026, 96.3% of our debt investments based on fair value bore interest at floating rates, with 100.0% of these subject to interest rate floors, which we believe helps act as a portfolio-wide hedge against inflation.
Relationship with our Adviser and Sixth Street
Our Adviser is a Delaware limited liability company. Our Adviser acts as our investment adviser and administrator and is a registered investment adviser with the SEC under the Advisers Act. Our Adviser sources and manages our portfolio through a dedicated team of investment professionals predominately focused on direct lending, which we refer to as our Investment Team. Our Investment Team is led by our Adviser’s Co-Founding Partner, Co-President and Co-Chief Investment Officer Joshua Easterly, our Co-Head of Sixth Street Direct Lending and Co-Head of Growth Robert “Bo” Stanley, Co-Head of Direct Lending Michael Griffin, and our Adviser’s Co-Founding Partner, Chief Executive Officer, and Co-Chief Investment Officer Alan Waxman, all of whom have substantial experience in credit origination, underwriting and asset management. Our investment decisions are made by our Investment Review Committee, which includes senior personnel of our Adviser and affiliates of Sixth Street Partners, LLC, or “Sixth Street.”
Sixth Street is a global investment business with over $130 billion of assets under management as of March 31, 2026. Sixth Street’s direct lending platforms include Sixth Street Specialty Lending and Sixth Street Lending Partners, which are aimed at U.S. middle-market loan originations and upper middle-market loan originations, respectively, Sixth Street Specialty Lending Europe, which is aimed at European middle-market loan originations. Additional Sixth Street core platforms include Sixth Street TAO, which has the flexibility to invest across all of Sixth Street’s private credit market investments, Sixth Street Opportunities, which focuses on actively managed opportunistic investments across the credit cycle, Sixth Street Credit Market Strategies, which is the firm’s “public-side” credit investment platform focused on investment opportunities in broadly syndicated leveraged loan markets, Sixth Street Growth, which provides financing solutions to growing companies, Sixth Street Fundamental Strategies, which primarily invests in secondary credit, and Sixth Street Agriculture, which invests in niche agricultural opportunities. Sixth Street has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes. Sixth Street has extensive experience with highly complex, global public and private investments executed through primary originations, secondary
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market purchases and restructurings, and has a team of over 750 investment and operating professionals. As of March 31, 2026, seventy-three (73) of these personnel are dedicated to direct lending, including fifty-nine (59) investment professionals.
Our Adviser consults with Sixth Street in connection with a substantial number of our investments. The Sixth Street platform provides us with a breadth of large and scalable investment resources. We believe we benefit from Sixth Street’s market expertise, insights into industry, sector and macroeconomic trends and intensive due diligence capabilities, which help us discern market conditions that vary across industries and credit cycles, identify favorable investment opportunities and manage our portfolio of investments. Sixth Street and its affiliates will refer all middle-market loan origination activities for companies domiciled in the United States to us and conduct those activities through us. The Adviser will determine whether it would be permissible, advisable or otherwise appropriate for us to pursue a particular investment opportunity allocated to us.
On May 6, 2025, we, the Adviser and certain of our affiliates were granted an exemptive order from the SEC that allows us to co-invest, subject to certain conditions, with certain of our affiliates (including affiliates of Sixth Street) in middle-market loan origination activities for companies domiciled in the United States.
We believe our ability to co-invest with Sixth Street affiliates is particularly useful where we identify larger capital commitments than otherwise would be appropriate for us. We expect that with the ability to co-invest with Sixth Street affiliates we will continue to be able to provide “one-stop” financing to a potential portfolio company in these circumstances, which may allow us to capture opportunities where we alone could not commit the full amount of required capital or would have to spend additional time to locate unaffiliated co-investors.
Under the terms of the Investment Advisory Agreement and Administration Agreement, the Adviser’s services are not exclusive, and the Adviser is free to furnish similar or other services to others, so long as its services to us are not impaired. Under the terms of the Investment Advisory Agreement, we will pay the Adviser the base management fee (the “Management Fee”), and may also pay certain incentive fees (the “Incentive Fees”).
Under the terms of the Administration Agreement, the Adviser also provides administrative services to us. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the oversight of the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Adviser under the terms of the Administration Agreement.
General Economic Conditions
To date, 2026 has been marked by continued uncertainty in global markets, driven by investor concerns over inflation, elevated interest rates, ongoing political and regulatory uncertainty, including potential shifts in U.S. trade policy and the imposition of new tariffs, as well as geopolitical instability stemming from the conflicts in Ukraine and the Middle East.
Further contributing to economic uncertainty, the current U.S. presidential administration has signaled its intention to implement, and has started to implement, significant changes to U.S. trade policy, the size of the federal government, tax policy and the enforcement of various regulations. These policy shifts could introduce additional market instability and reduce investor confidence. For example, the U.S. government announced tariffs on goods imported from various countries to the United States and countries subject to such tariffs have imposed, or may in the future, impose reciprocal or retaliatory tariffs and other trade measures. We are actively monitoring macroeconomic developments and analyzing the potential impacts on our business, the businesses of our portfolio companies and the broader economic environment. In light of these developments, there can be no assurances that political and regulatory conditions will not worsen and/or adversely affect the Company, its portfolio companies or their respective financial performance.
Key Components of Our Results of Operations
We focus primarily on the direct origination of loans to middle-market companies domiciled in the United States.
Our level of investment activity (both the number of investments and the size of each investment) can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital generally available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make.
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In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors.
Revenues
We generate revenues primarily in the form of interest income from the investments we hold. In addition, we may generate income from dividends on direct equity investments, capital gains on the sale of investments and various loan origination and other fees. Our debt investments typically have a term of two to seven years, and, as of March 31, 2026, 96.3% of these investments based on fair value bore interest at a floating rate, with 100.0% of these subject to interest rate floors. Interest on debt investments is generally payable monthly or quarterly. Some of our investments provide for deferred interest payments or PIK interest. For the three months ended March 31, 2026 and 2025, 7.5% and 4.6%, respectively, of our total investment income was comprised of PIK interest.
Changes in our net investment income are primarily driven by the spread between the payments we receive from our investments in our portfolio companies against our cost of funding, rather than by changes in interest rates. Our investment portfolio primarily consists of floating rate loans, and our Revolving Credit Facility, 2026 Notes, 2028 Notes, 2029 Notes, and 2030 Notes after taking into account the effect of the interest rate swaps we have entered into in connection with these securities, all bear interest at floating rates. Macro trends in base interest rates like SOFR or other reference rates may affect our net investment income over the long term. However, because we generally originate loans to a limited number of portfolio companies each quarter, and those investments also vary in size, our results in any given period—including the interest rate on investments that were sold or repaid in a period compared to the interest rate of new investments made during that period—often are idiosyncratic, and reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business.
In addition to interest income, our net investment income is also driven by prepayment and other fees, which also can vary significantly from quarter to quarter. The level of prepayment fees is generally correlated to the movement in credit spreads and risk premiums, but also will vary based on corporate events that may take place at an individual portfolio company in a given period—e.g., merger and acquisition activity, initial public offerings and restructurings. As noted above, generally a small but varied number of portfolio companies may make prepayments in any quarter, meaning that changes in the amount of prepayment fees received can vary significantly between periods and can vary without regard to underlying credit trends.
Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income using the effective interest method for term instruments and the straight-line method for revolving or delayed draw instruments. Repayments of our debt investments can reduce interest income from period to period. We record prepayment premiums on loans as interest income when earned. We also may generate revenue in the form of commitment, amendment, structuring, syndication or due diligence fees, fees for providing managerial assistance and consulting fees. The frequency or volume of these items of revenue may fluctuate significantly.
Dividend income on common equity investments is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.
Our portfolio activity also reflects the proceeds of sales of investments. We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized gains (losses) on investments in the Consolidated Statements of Operations.
Our primary operating expenses include the payment of fees to our Adviser under the Investment Advisory Agreement, expenses reimbursable under the Administration Agreement and other operating costs described below. Additionally, we pay interest expense on our outstanding debt. We bear all other costs and expenses of our operations, administration and transactions, including those relating to:
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We expect that during periods of asset growth, our general and administrative expenses will be relatively stable or will decline as a percentage of total assets, and will increase as a percentage of total assets during periods of asset declines.
Leverage
While as a BDC the amount of leverage that we are permitted to use is limited in significant respects, we use leverage to increase our ability to make investments. The amount of leverage we use in any period depends on a variety of factors, including cash available for investing, the cost of financing and general economic and market conditions, however, under the 1940 Act, our total borrowings are limited so that our asset coverage ratio cannot fall below 150% immediately after any borrowing, as defined in the 1940 Act. In any period, our interest expense will depend largely on the extent of our borrowing and we expect interest expense will increase as we increase leverage over time within the limits of the 1940 Act. In addition, we may dedicate assets as collateral to financing facilities from time to time.
Market Trends
We believe trends in the middle-market lending environment, including the limited availability of capital from traditional regulated financial institutions, strong demand for debt capital and specialized lending requirements, are likely to continue to create favorable opportunities for us to invest at attractive risk-adjusted rates.
Subsequent to the global financial crisis, the implementation of regulatory changes such as Basel III requirements, Leverage Lending Guidance, and the Volcker Rule, tightened risk appetites and reduced the capacity of traditional lenders to serve middle-market companies. We believe that these dynamics create a significant opportunity for us to directly originate investments. We also believe that the large amount of uninvested capital held by private equity firms will continue to drive deal activity, which may in turn create additional demand for debt capital.
This market dynamic is further exacerbated by the specialized due diligence and underwriting capabilities, as well as extensive ongoing monitoring, required for middle-market lending. We believe middle-market lending is generally more labor-intensive than
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lending to larger companies due to smaller investment sizes and the lack of publicly available information on these companies. As a result, the opportunities for dedicated private lenders such as us have continued to expand.
An imbalance between the supply of, and demand for, middle-market debt capital creates attractive pricing dynamics for investors such as BDCs. The negotiated nature of middle-market financings also generally provides for more favorable terms to the lenders, including stronger covenant and reporting packages, better call protection and lender-protective change of control provisions. We believe that BDCs have flexibility to develop loans that reflect each borrower’s distinct situation, provide long-term relationships and a potential source for future capital, which renders BDCs, including us, attractive lenders.
Portfolio and Investment Activity
As of March 31, 2026, our portfolio based on fair value consisted of 89.3% first-lien debt investments, 1.0% second-lien debt investments, 1.9% mezzanine debt investments, 4.6% equity investments, 2.8% structured credit investments and 0.4% joint venture investments. As of December 31, 2025, our portfolio based on fair value consisted of 89.2% first-lien debt investments, 0.9% second-lien debt investments, 1.8% mezzanine debt investments, 5.2% equity and other investments and 2.9% structured credit investments.
As of March 31, 2026 and December 31, 2025, our weighted average total yield of debt and income producing securities at fair value (which includes interest income and amortization of fees and discounts) was 11.1% and 11.1%, respectively, and our weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 11.2% and 11.3%, respectively.
As of March 31, 2026, we had investments in 143 portfolio companies (including 36 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment) with an aggregate fair value of $3,313.4 million. As of December 31, 2025, we had investments in 143 portfolio companies (including 36 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment) with an aggregate fair value of $3,347.3 million.
For the three months ended March 31, 2026, the principal amount of new investments funded was $134.8 million in three new portfolio companies and four existing portfolio companies. For this period, we had $113.0 million aggregate principal amount in exits and repayments.
For the three months ended March 31, 2025, the principal amount of new investments funded was $136.8 million in six new portfolio companies and four existing portfolio companies. For this period, we had $269.6 million aggregate principal amount in exits and repayments.
Our investment activity for the three months ended March 31, 2026 and 2025 is presented below (information presented herein is at par value unless otherwise indicated).
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($ in millions)
New investment commitments:
Gross originations (1)
1,879.3
1,254.9
Less: Syndications/sell downs (1)
1,541.2
1,100.5
Total new investment commitments
338.1
154.4
Principal amount of investments funded:
First-lien
120.1
102.2
Second-lien
18.9
Mezzanine
13.0
Equity
Structured Credit
Joint Venture
14.7
134.8
136.8
Principal amount of investments sold or repaid:
110.1
267.1
113.0
269.6
Number of new investment commitments in new portfolio companies
Average new investment commitment amount in new portfolio companies (2)
98.5
21.4
Weighted average term for new investment commitments in new portfolio companies (in years) (2)
6.3
Percentage of new debt investment commitments at floating rates
85.1
Percentage of new debt investment commitments at fixed rates
14.9
Weighted average interest rate of new investment commitments
9.6
11.3
Weighted average spread over reference rate of new floating rate investment commitments
Weighted average interest rate on investments fully sold or paid down
10.4
11.8
(1) Includes affiliates of Sixth Street.
(2) For three months ended March 31, 2026, includes the joint venture investment commitment of $200.0 million which is excluded from the calculation of weighted average term for new investment commitments in new portfolio companies.
As of March 31, 2026 and December 31, 2025, our investments consisted of the following:
2,963.2
2,959.0
2,934.2
2,984.4
31.4
31.2
69.6
30.7
62.9
63.7
61.1
61.7
153.6
151.0
159.8
172.6
93.8
98.6
97.9
3,324.3
3,313.4
3,323.3
3,347.3
The following tables show the fair value and amortized cost of our performing and non-accrual investments as of March 31, 2026 and December 31, 2025:
Percentage
Performing
3,266.0
3,327.3
99.4
Non-accrual (1)
47.4
20.0
3,260.4
98.1
3,254.5
63.9
68.8
The weighted average yields and interest rates of our performing debt investments at fair value as of March 31, 2026 and December 31, 2025 were as follows:
Weighted average total yield of debt and income producing securities (1)
11.1
Weighted average interest rate of debt and income producing securities
10.6
Weighted average spread over reference rate of all floating rate investments
The Adviser monitors our portfolio companies on an ongoing basis. The Adviser monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Adviser has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:
As part of the monitoring process, the Adviser regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories:
The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of March 31, 2026 and December 31, 2025. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors.
Investments at
Performance
Percentage of
Rating
Total Portfolio
2,884.7
87.1
3,002.3
89.7
310.1
9.4
296.9
71.1
28.0
47.5
20.1
On December 23, 2025, affiliates of Sixth Street, including us, and affiliates of Carlyle entered into the Limited Liability Company Agreement, to co-manage SCP, a joint venture focused on investing in broadly syndicated first lien senior secured loans, financed with long-term, non-mark-to-market, and predominantly investment grade rated CLO debt managed by affiliates of Sixth Street or Carlyle on a no-fee basis. SCP is managed by a board of managers, consisting of an equal number of representatives appointed by the Sixth Street-affiliated members of SCP and the Carlyle-affiliated members of SCP and which acts unanimously. Portfolio construction and investment decisions must be unanimously approved by SCP’s investment committee, as delegated by SCP’s board of managers. Our investment in SCP is made with certain of our affiliates in accordance with the terms of the exemptive relief that we received from the SEC. We do not consolidate our non-controlling interest in SCP.
As of March 31, 2026 SCP had the following contributed capital and unfunded commitments from its members:
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7.3
22.0
44.0
185.3
92.7
278.0
556.0
For the three months ended March 31, 2026 SCP declared $0.7 million in distributions, of which $0.2 million was recognized as dividend income in the Company’s Unaudited Statements of Operations. As of March 31, 2026, the daily weighted average yield on our investment in Structured Credit Partners JV, LLC was 10.7%.
1,044.7
Results of Operations
Operating results for the three months ended March 31, 2026 and 2025 were as follows:
($ in millions)(1)
Total investment income
93.4
116.3
Less: Net expenses
52.4
57.0
Net investment income before income taxes
41.0
59.3
Less: Income taxes, including excise taxes
39.8
58.0
Net realized gains (losses) (2)
(39.3
Net change in unrealized gains (losses) (2)
(26.5
(21.8
Net increase (decrease) in net assets resulting from operations
(26.0
37.0
Investment Income
($ in millions) (1)
83.8
106.6
Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $106.6 million for the three months ended March 31, 2025 to $83.8 million for the three months ended March 31, 2026. The decrease in interest from investments was primarily the result of a decrease in reference rates for the three months ended March 31, 2026 compared to the same
period in 2025. Paid-in-kind interest income increased from $5.4 million for the three months ended March 31, 2025 to $7.0 million for the three months ended March 31, 2026 due to increased PIK investments. Dividend income decreased from $0.9 million for the three months ended March 31, 2025 to $0.4 million for the three months ended March 31, 2026 due to the timing of dividend payments in 2025. Other income decreased from $3.4 million for the three months ended March 31, 2025 to $2.2 million for the three months ended March 31, 2026, primarily due to decreased miscellaneous fees earned during the three months ended March 31, 2026.
Operating expenses for the three months ended March 31, 2026 and 2025 were as follows:
28.3
33.0
Management fees (net of waivers)
12.3
12.7
8.5
(3.7
Interest expense, including other debt financing expenses, decreased from $33.0 million for the three months ended March 31, 2025 to $28.3 million for the three months ended March 31, 2026. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding, which decreased from 6.4% for the three months ended March 31, 2025 to 5.5% for the three months ended March 31, 2026 due to a change in the mix of our debt financing sources and a change in SOFR rates.
Management Fees
Management Fees (gross of waivers) decreased from $13.1 million for the three months ended March 31, 2025 to $12.6 million for the three months ended March 31, 2026 due to a decrease in average assets. Management Fees (net of waivers) decreased from $12.7 million for the three months ended March 31, 2025 to $12.3 million for the three months ended March 31, 2026. Management Fees waived were $0.3 million for the three months ended March 31, 2026 and $0.4 million for the three months ended March 31, 2025, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.
Incentive Fees
For the three months ended March 31, 2026 and 2025, Incentive Fees were $8.5 million and $7.8 million, respectively, of which $8.5 million and $11.5 million, respectively, were realized and payable to the Adviser. For the three months ended March 31, 2026 there were no Incentive Fees accrued related to Capital Gains Fees. For the three months ended March 31, 2025 $(3.7) million of Incentive Fees were accrued related to Capital Gains Fees. As of March 31, 2026, these accrued Incentive Fees are not contractually payable to the Adviser.
Professional Fees and Other General and Administrative Expenses
Professional fees decreased from $2.0 million for the three months ended March 31, 2025 to $1.7 million for the three months ended March 31, 2026 due to lower independent third-party valuation firm and sub-agent administration costs. Other general and administrative fees were $1.3 million for the three months ended March 31, 2025 and $1.4 million for the three months ended March 31, 2026.
We have elected to be treated as a RIC under Subchapter M of the Code, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other things, distribute to our stockholders in each taxable year generally at least 90% of our investment company taxable income, as defined by the Code, and net tax-exempt income for that taxable year. To maintain RIC status, we, among other things, have made and intend to continue to make the requisite distributions to our stockholders, which generally relieve us from corporate-level U.S. federal income taxes.
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We evaluate tax positions taken or expected to be taken in the course of preparing our financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.
Depending on the level of taxable income earned in a tax year, we can be expected to carry forward taxable income (including net capital gains, if any) in excess of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such taxable income, as required. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such income, we accrue excise tax on estimated excess taxable income.
For the three months ended March 31, 2026 and 2025, we recorded a net expense of $1.2 million and $1.4 million, respectively, for U.S. federal excise tax and other taxes.
Net Realized and Unrealized Gains and Losses
The following table summarizes our net realized and unrealized gains (losses) for the three months ended March 31, 2026 and 2025:
Net realized gains (losses) on foreign currency transactions (2)
(0.1
(0.2
Net realized gains (losses) on foreign currency investments (3)
Net realized gains (losses) on foreign currency borrowings (3)
(0.0)
Net Realized Gains (Losses)
Change in unrealized gains on investments
50.2
23.7
Change in unrealized (losses) on investments
(85.2
(34.5
Net Change in Unrealized Gains (Losses) on Investments
(34.9
(10.8
Unrealized gains (losses) on foreign currency borrowings
8.4
(11.0
Unrealized gains (losses) on foreign currency transactions (2)(3)
Net Change in Unrealized Gains (Losses) on Foreign Currency Transactions
Net Change in Unrealized Gains (Losses)
For the three months ended March 31, 2026 and 2025, we had net realized losses on investments of $39.3 million and net realized gains on investments of $1.1 million, respectively. For the three months ended March 31, 2026 and 2025, we had net realized losses of $0.1 million and $0.2 million, respectively, on foreign currency transactions, primarily as a result of translating foreign currency related to our non-USD denominated investments. For the three months ended March 31, 2026 and 2025, we had net realized gains on foreign currency investments of less than $0.1 million and less than $0.1 million, respectively. For the three months ended March 31, 2026 and 2025, we had net realized losses on foreign currency borrowings of less than $0.1 million and $0.1 million, respectively. The net realized losses on foreign currency borrowings were a result of payments on our revolving credit facility.
For the three months ended March 31, 2026, we had $50.2 million in unrealized gains on 16 portfolio company investments, which was offset by $85.2 million in unrealized losses on 127 portfolio company investments. Unrealized gains for the three months ended March 31, 2026 resulted from positive portfolio company specific developments and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the three months ended March 31, 2026 resulted from negative credit-related adjustments, widening credit spreads, and the reversal of prior period unrealized gains due to realizations.
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For the three months ended March 31, 2025, we had $23.7 million in unrealized gains on 53 portfolio company investments, which was offset by $34.5 million in unrealized losses on 68 portfolio company investments. Unrealized gains for the three months ended March 31, 2025 resulted from positive portfolio company specific developments. Unrealized losses for the three months ended March 31, 2025 resulted from widening credit spreads, negative credit-related adjustments and the reversal of prior period unrealized gains due to realizations.
For the three months ended March 31, 2026 and 2025, we had unrealized gains of $8.4 million and unrealized losses of $11.0 million, respectively, on foreign currency borrowings, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the three months ended March 31, 2026 and 2025, we had unrealized gains of less than $0.1 million and unrealized losses of less than $0.1 million, respectively, on foreign currency transactions.
Realized Gross Internal Rate of Return
Since we began investing in 2011 through March 31, 2026, weighted by capital invested, our exited investments have generated an average realized gross internal rate of return to us of 16.8% (based on total capital invested of $9.3 billion and total proceeds from these exited investments of $11.9 billion). Ninety-one percent of these exited investments resulted in a realized gross internal rate of return to us of 10% or greater.
Gross IRR, with respect to an investment, is calculated based on the dates that we invested capital and dates we received distributions, regardless of when we made distributions to our stockholders. Initial investments are assumed to occur at time zero, and all cash flows are deemed to occur on the fifteenth of each month in which they occur.
Gross IRR reflects historical results relating to our past performance and is not necessarily indicative of our future results. In addition, gross IRR does not reflect the effect of Management Fees, expenses, Incentive Fees or taxes borne, or to be borne, by us or our stockholders, and would be lower if it did.
Average gross IRR is the average of the gross IRR for each of our exited investments (each calculated as described above), weighted by the total capital invested for each of those investments.
Average gross IRR on our exited investments reflects only invested and realized cash amounts as described above, and does not reflect any unrealized gains or losses in our portfolio.
Internal rate of return, or IRR, is a measure of our discounted cash flows (inflows and outflows). Specifically, IRR is the discount rate at which the net present value of all cash flows is equal to zero. That is, IRR is the discount rate at which the present value of total capital invested in each of our investments is equal to the present value of all realized returns from that investment. Our IRR calculations are unaudited.
Capital invested, with respect to an investment, represents the aggregate cost basis allocable to the realized or unrealized portion of the investment, net of any upfront fees paid at closing for the term loan portion of the investment. Capital invested also includes realized losses on hedging activity, with respect to an investment, which represents any inception-to-date realized losses on foreign currency forward contracts allocable to the investment, if any.
Realized returns, with respect to an investment, represents the total cash received with respect to each investment, including all amortization payments, interest, dividends, prepayment fees, upfront fees, administrative fees, agent fees, amendment fees, accrued interest, and other fees and proceeds. Realized returns also include realized gains on hedging activity, with respect to an investment, which represents any inception-to-date realized gains on foreign currency forward contracts allocable to the investment, if any.
Interest Rate and Foreign Currency Hedging
We use interest rate swaps to hedge our fixed rate debt and certain fixed rate investments. We have designated certain interest rate swaps to be in a hedge accounting relationship. See Note 2 for additional disclosure regarding our accounting for derivative instruments designated in a hedge accounting relationship. See Note 5 for additional disclosure regarding these derivative instruments and the interest payments paid and received. See Note 7 for additional disclosure regarding the carrying value of our debt.
Our current approach to hedging the foreign currency exposure in our non-U.S. dollar denominated investments is primarily to borrow the par amount in local currency under our Revolving Credit Facility to fund these investments. For the three months ended March 31, 2026 and 2025, we had $8.4 million of unrealized gains and $11.0 million of unrealized losses, respectively, on the translation of our non-U.S. dollar denominated debt into U.S. dollars; such amounts approximate the corresponding unrealized gains and losses on the translation of our non-U.S. dollar denominated investments into U.S. dollars for the three months ended March 31, 2026 and 2025. See Note 2 for additional disclosure regarding our accounting for foreign currency. See Note 7 for additional
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disclosure regarding the amounts of outstanding debt denominated in each foreign currency at March 31, 2026. See our Consolidated Schedule of Investments for additional disclosure regarding the foreign currency amounts (in both par and fair value) of our non-U.S. dollar denominated investments.
Financial Condition, Liquidity and Capital Resources
Our liquidity and capital resources are derived primarily from proceeds from equity issuances, advances from our credit facilities, and cash flows from operations. The primary uses of our cash and cash equivalents are:
We intend to continue to generate cash primarily from cash flows from operations, future borrowings and future offerings of securities. We may from time to time enter into additional debt facilities, increase the size of existing facilities or issue debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock if immediately after the borrowing or issuance our ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 150%. For more information, see “Key Components of Our Results of Operations — Leverage” above. As of March 31, 2026 and December 31, 2025, our asset coverage ratio was 184.7% and 191.5%, respectively. We carefully consider our unfunded commitments for the purpose of planning our capital resources and ongoing liquidity, including our financial leverage. Further, we maintain sufficient borrowing capacity within the 150% asset coverage limitation under the 1940 Act and the asset coverage limitation under our credit facilities to cover any outstanding unfunded commitments we are required to fund.
Cash and cash equivalents as of March 31, 2026, taken together with cash available under our credit facilities, is expected to be sufficient for our investing activities and to conduct our operations in the near term. As of March 31, 2026, we had approximately $1.1 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.
As of March 31, 2026, we had $29.2 million in cash and cash equivalents, including $28.1 million of restricted cash. During the three months ended March 31, 2026, cash used in operating activities was $23.4 million, primarily attributable to funding portfolio investments of $162.8 million and a decrease in net assets resulting from operations of $26.0 million which was partially offset by repayments and proceeds from investments of $133.8 million and cash provided by other operating activities of $31.6 million. Cash provided by financing activities was $32.9 million during the period due to borrowings of $310.3 million which was partially offset by paydowns on our Revolving Credit Facility of $238.4 million and dividends paid of $39.0 million.
As of March 31, 2025, we had $47.3 million in cash and cash equivalents, including $42.7 million of restricted cash. During the three months ended March 31, 2025, cash provided by operating activities was $149.9 million, primarily attributable to repayments and proceeds from investments of $291.9 million, an increase in net assets resulting from operations of $37.0 million and other operating activity of $4.7 million, which was partially offset by funding portfolio investments of $183.7 million. Cash used in financing activities was $130.0 million during the period due to paydowns on our Revolving Credit Facility of $609.5 million, dividends paid of $43.2 million and deferred financing costs of $7.3 million, which was partially offset by borrowings of $530.0 million.
On March 5, 2024, we issued a total of 4,000,000 shares of common stock at $20.52 per share. Net of underwriting fees and offering costs, we received total cash proceeds of $81.5 million. Subsequent to the offering, we issued an additional 600,000 shares on April 1, 2024 pursuant to the overallotment option granted to underwriters and received, net of offering and underwriting fees, additional total cash proceeds of $11.9 million.
We are a party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that we may from time to time issue and sell, by means of “at the market” offerings, up to $100 million of the Company's common stock. Under the currently effective Equity Distribution Agreements, common stock with an aggregate offering amount of $100 million remained available for issuance as of March 31, 2026.
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During the three months ended March 31, 2026 and 2025, we issued 314,450 and 302,922 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $5.5 million and $6.4 million, respectively.
On August 4, 2015, our Board authorized us to acquire up to $50 million in aggregate of our common stock from time to time over an initial six month period, and has continued to authorize the refreshment of the $50 million amount authorized under and extension of the stock repurchase program prior to its expiration since that time, most recently as of November 4, 2025 (expiring May 31, 2026). Under the program, we may repurchase up to $50 million in the aggregate of our outstanding common stock in the open market, from time to time, at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The amount and timing of stock repurchases under the program may vary depending on market conditions, and no assurance can be given that any particular amount of common stock will be repurchased.
No shares were repurchased for the three months ended March 31, 2026 and 2025.
On August 23, 2012, we entered into a senior secured revolving credit agreement with Truist Bank (as a successor by merger to SunTrust Bank), as administrative agent, and J.P. Morgan Chase Bank, N.A., as syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).
As of March 31, 2026, aggregate commitments under the Revolving Credit Facility were $1.675 billion. The Revolving Credit Facility includes an uncommitted accordion feature that allows us, under certain circumstances, to increase the size of the Revolving Credit Facility to up to $2.5 billion.
We may borrow amounts in U.S. dollars or certain other permitted currencies. As of March 31, 2026, we had outstanding debt denominated in Australian dollars (AUD) of 3.0 million, British pounds (GBP) of 48.7 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 220.0 million and Euro (EUR) of 270.7 million on our Revolving Credit Facility, included in the Outstanding Principal amount in the table below. As of December 31, 2025, we had outstanding debt denominated in Australian dollars (AUD) of 3.0 million, British pounds (GBP) of 48.5 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 218.0 million and Euro (EUR) of 245.9 million on our Revolving Credit Facility, included in the Outstanding Principal amount in the table below.
The Revolving Credit Facility also provides for the issuance of letters of credit up to an aggregate amount of $75 million. As of March 31, 2026 and December 31, 2025, we had $22.8 million and $21.7 million respectively in outstanding letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit issued through the Revolving Credit Facility.
For the $1.525 billion of commitments, amounts drawn under the Revolving Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either the applicable reference rate plus an applicable credit spread adjustment, plus a margin of either 1.525%, 1.65% or 1.775%, or the base rate plus a margin of either 0.525%, 0.65% or 0.775%, in each case, based on the total amount of the borrowing base relative to the sum of the total commitments (or, if greater, the total exposure) under the Revolving Credit Facility plus certain other designated secured debt. For the remaining $150.0 million of commitments, amounts drawn under the Revolving Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either the applicable reference rate plus an applicable credit spread adjustment, plus a margin of either 1.75% or 1.875% or the base rate plus a margin of either 0.75% or 0.875%, in each case, based on the total amount of the borrowing base relative to the sum of the total commitments (or, if greater, the total exposure) under the Revolving Credit Facility plus certain other designated secured debt. We may elect either the applicable reference rate or base rate at the time of drawdown, and loans may be converted from one rate to another at any time, subject to certain conditions. We also pay a fee of 0.325% on undrawn amounts and, in respect of each undrawn letter of credit, a fee and interest rate equal to the then applicable margin while the letter of credit is outstanding.
The Revolving Credit Facility is guaranteed by Sixth Street SL SPV, LLC, TC Lending, LLC and Sixth Street SL Holding, LLC. The Revolving Credit Facility is secured by a perfected first-priority security interest in substantially all the portfolio investments held by us and each guarantor. Proceeds from borrowings may be used for general corporate purposes, including the funding of portfolio investments.
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As of March 31, 2026 and December 31, 2024, we were in compliance with the terms of the Revolving Credit Facility.
In February 2021, we issued $300.0 million aggregate principal amount of unsecured notes that mature on August 1, 2026 (the “2026 Notes”). The principal amount of the 2026 Notes is payable at maturity. The 2026 Notes bear interest at a rate of 2.50% per year, payable semi-annually commencing on August 1, 2021, and may be redeemed in whole or in part at our option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2026 Notes, net of underwriting discounts, offering costs and original issue discount, were $293.7 million. We used the net proceeds of the 2026 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2026 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 1, 2026, matching the maturity date of the 2026 Notes. As a result of the swap, our effective interest rate on the 2026 Notes is SOFR plus 2.17%. The interest expense related to the 2026 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $(3.7) million and $(5.8) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2026 Notes.
In August 2023, we issued $300.0 million aggregate principal amount of unsecured notes that mature on August 14, 2028 (the “2028 Notes”). The principal amount of the 2028 Notes is payable at maturity. The 2028 Notes bear interest at a rate of 6.95% per year, payable semi-annually commencing on February 14, 2024, and may be redeemed in whole or in part at our option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2028 Notes, net of underwriting discounts, offering costs and original issue discount, were $293.9 million. We used the net proceeds of the 2028 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2028 Notes, we entered into an interest rate swap to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 14, 2028, matching the maturity date of the 2028 Notes. As a result of the swap, our effective interest rate on the 2028 Notes is SOFR plus 2.99%. The interest expense related to the 2028 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $2.1 million and $4.5 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2028 Notes.
In January 2024, we issued $350.0 million aggregate principal amount of unsecured notes that mature on March 1, 2029 (the “2029 Notes”). The principal amount of the 2029 Notes is payable at maturity. The 2029 Notes bear interest at a rate of 6.125% per year, payable semi-annually commencing on September 1, 2024, and may be redeemed in whole or in part at our option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2029 Notes, net of underwriting discounts, offering costs and
original issue discount, were $341.6 million. We used the net proceeds of the 2029 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2029 Notes, we entered into an interest rate swap to align the interest rates of its liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $350.0 million, which matures on March 1, 2029, matching the maturity date of the 2029 Notes. As a result of the swap, our effective interest rate on the 2029 Notes is SOFR plus 2.44%. The interest expense related to the 2029 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $0.6 million and $3.3 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2029 Notes.
In February 2025, we issued $300.0 million aggregate principal amount of unsecured notes that mature on August 15, 2030 (the “2030 Notes”). The principal amount of the 2030 Notes is payable at maturity. The 2030 Notes bear interest at a rate of 5.625% per year, payable semi-annually commencing on August 15, 2025, and may be redeemed in whole or in part at our option at any time at par plus a “make whole” premium. Total proceeds from the issuance of the 2030 Notes, net of underwriting discounts, offering costs and original issue discount, were $293.4 million. We used the net proceeds of the 2030 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In connection with the issuance of the 2030 Notes, we entered into an interest rate swap to align the interest rates of its liabilities with our investment portfolio, which consists of predominately floating rate loans. The notional amount of the interest rate swap is $300.0 million, which matures on August 15, 2030, matching the maturity date of the 2030 Notes. As a result of the swap, our effective interest rate on the 2030 Notes is SOFR plus 1.53%. The interest expense related to the 2030 Notes is offset by proceeds received from the interest rate swaps designated as a hedge. The swap adjusted interest expense is included as a component of interest expense on our Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, the effective hedge interest rate swaps had a fair value of $5.7 million and $8.3 million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2030 Notes.
Aggregate Principal
Outstanding
Amount
Carrying
Amount Committed
Principal
Available (1)
Value (2)(3)
1,675.0
577.4
1,074.8
563.2
300.0
295.9
299.1
350.0
345.7
299.5
2,925.0
1,827.4
1,803.4
513.9
1,139.3
498.8
293.5
301.2
348.0
301.7
1,763.9
1,743.2
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As of March 31, 2026 and December 31, 2025, we were in compliance with the terms of our debt arrangements. We intend to continue to utilize our credit facilities to fund investments and for other general corporate purposes.
Off-Balance Sheet Arrangements
From time to time, we may enter into commitments to fund investments. We incorporate these commitments into our assessment of our liquidity position. Our senior secured revolving loan commitments are generally available on a borrower’s demand and may remain outstanding until the maturity date of the applicable loan. Our senior secured delayed draw term loan commitments are generally available on a borrower’s demand and, once drawn, generally have the same remaining term as the associated loan agreement. Undrawn senior secured delayed draw term loan commitments generally have a shorter availability period than the term of the associated loan agreement. As of March 31, 2026 and December 31, 2025, we had the following commitments to fund investments in current portfolio companies:
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22.8
24.1
26.6
27.7
5.6
6.8
5.9
8.6
30.9
32.1
9.1
7.7
10.2
9.8
32.5
5.7
12.0
3.8
10.0
22.1
23.8
71
512.4
338.5
As of March 31, 2026 and December 31, 2025, we did not have any unfunded commitments to fund investments to new borrowers that were not current portfolio companies as of such date.
From time to time, we may become a party to certain legal proceedings incidental to the normal course of our business. As of March 31, 2026, management is not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.
We have certain contracts under which we have material future commitments. Under the Investment Advisory Agreement, our Adviser provides us with investment advisory and management services. For these services, we pay the Management Fee and the Incentive Fee.
Under the Administration Agreement, our Adviser furnishes us with office facilities and equipment, provides us clerical, bookkeeping and record keeping services at such facilities and provides us with other administrative services necessary to conduct our day-to-day operations. We reimburse our Adviser for the allocable portion (subject to the review and approval of our Board) of expenses incurred by it in performing its obligations under the Administration Agreement, the fees and expenses associated with performing compliance functions and our allocable portion of the compensation of our Chief Compliance Officer, Chief Financial Officer and other professionals who spend time on those related activities (based on a percentage of time those individuals devote, on an estimated basis, to our business and affairs). Our Adviser also offers on our behalf significant managerial assistance to those portfolio companies to which we are required to offer to provide such assistance.
Contractual Obligations
A summary of our contractual payment obligations as of March 31, 2026 is as follows:
Payments Due by Period
Less than
1 year
1-3 years
3-5 years
After 5 years
Total Contractual Obligations
1,227.4
In addition to the contractual payment obligations in the tables above, we also have commitments to fund investments and to pledge assets as collateral under the terms of our derivatives agreements.
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Distributions
We have elected and qualified to be treated for U.S. federal income tax purposes as a RIC under subchapter M of the Code. To maintain RIC status, we must distribute (or be treated as distributing) in each taxable year dividends for tax purposes equal to at least 90 percent of the sum of our:
As a RIC, we (but not our stockholders) generally will not be subject to U.S. federal income tax on investment company taxable income and net capital gains that we distribute to our stockholders.
We intend to distribute annually all or substantially all of such income. To the extent that we retain our net capital gains or any investment company taxable income, we generally will be subject to corporate-level U.S. federal income tax. We may choose to retain our net capital gains or any investment company taxable income, and pay the U.S. federal excise tax described below.
Amounts not distributed on a timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% U.S. federal excise tax payable by us. To avoid this tax, we must distribute (or be treated as distributing) during each calendar year an amount at least equal to the sum of:
While we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise tax, sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of this tax. In that event, we will be liable for this tax only on the amount by which we do not meet the foregoing distribution requirement.
We intend to pay quarterly dividends to our stockholders out of assets legally available for distribution. All dividends will be paid at the discretion of our Board and will depend on our earnings, financial condition, maintenance of RIC status, compliance with applicable BDC regulations and such other factors as our Board may deem relevant from time to time.
To the extent our current taxable earnings for a year fall below the total amount of our distributions for that year, a portion of those distributions may be deemed a return of capital to our stockholders for U.S. federal income tax purposes. Thus, the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our income or gains. Stockholders should read any written disclosure carefully and should not assume that the source of any distribution is our ordinary income or gains.
We have adopted an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a cash dividend or other distribution, each stockholder that has not “opted out” of our dividend reinvestment plan will have their dividends or distributions automatically reinvested in additional shares of our common stock rather than receiving cash dividends. Stockholders who receive distributions in the form of shares of common stock will be subject to the same U.S. federal, state and local tax consequences as if they received cash distributions.
Related-Party Transactions
We have entered into a number of business relationships with affiliated or related parties, including the following:
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Critical Accounting Estimates
Our critical accounting policies and estimates, including those relating to the valuation of our investment portfolio, are described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 12, 2026, and elsewhere in our filings with the SEC. The critical accounting policies and estimates should be read in connection with our risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are subject to financial market risks, including valuation risk, interest rate risk and currency risk.
Valuation Risk
We have invested, and plan to continue to invest, primarily in illiquid debt and equity securities of private companies. Most of our investments will not have a readily available market price, and we value these investments at fair value as determined in good faith by our Board in accordance with our valuation policy. There is no single standard for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material.
Interest Rate Risk
Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund portions of our investments with borrowings. Our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, we cannot assure you that a significant change in market interest rates will not have a material adverse effect on our net investment income.
We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.
As of March 31, 2026, 96.3% of our debt investments based on fair value in our portfolio bore interest at floating rates, with 100.0% of these subject to interest rate floors. Our credit facilities also bear interest at floating rates, and in connection with our 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes, which bear interest at fixed rates, we entered into fixed-to-floating interest rate swaps in order to align the interest rates of our liabilities with our investment portfolio.
Assuming that our Consolidated Balance Sheet as of March 31, 2026 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments):
Basis Point Change
Interest Income
Interest Expense
Net Interest Income
Up 300 basis points
91.0
54.8
36.2
Up 200 basis points
60.7
36.5
24.2
Up 100 basis points
30.3
Down 25 basis points
(7.6
(4.6
(3.0
Down 50 basis points
(15.2
(9.1
(6.1
Down 75 basis points
(22.7
(13.7
(9.0
Down 100 basis points
(30.3
(18.3
(12.0
Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above.
We may in the future hedge against interest rate fluctuations by using hedging instruments such as additional interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of changes in interest rates with respect to our portfolio investments.
Currency Risk
From time to time, we may make investments that are denominated in a foreign currency. These investments are translated into U.S. dollars at each balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates. We also have the ability to borrow in certain foreign currencies under our Revolving Credit Facility. Instead of entering into a foreign exchange forward contract in connection with loans or other investments we have made that are denominated in a foreign currency, we may borrow in that currency to establish a natural hedge against our loan or investment. To the extent the loan or investment is based on a floating rate other than a rate under which we can borrow under our Revolving Credit Facility, we may seek to utilize interest rate derivatives to hedge our exposure to changes in the associated rate.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them to material information relating to us that is required to be disclosed by us in the reports we file or submit under the Exchange Act.
Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Mine Safety Disclosures
Item 5. Other Information
Rule 10b5-1 Trading Plans
During the three months ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).
ITEM 6. Exhibits
Exhibit No
Description of Exhibits
Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to the Company’s Current Report on Form 8-K filed on June 19, 2020).
Third Amended and Restated Bylaws dated November 4, 2025 (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed on November 4, 2025).
10.1
Seventeenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of May 1, 2026, among Sixth Street Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent.
31.1
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: May 5, 2026
/s/ Robert “Bo” Stanley
Robert “Bo” Stanley
Chief Executive Officer
(Principal Executive Officer)
/s/ Ian Simmonds
Ian Simmonds
Chief Financial Officer
(Principal Financial Officer)