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YoY shift: Neutral
Year-over-year tone shift - average net-tone change across Risk Factors and MD&A vs the prior 10-K. This filing is 0.05pp more bullish than last year's.
Why YoY instead of absolute: the LM lexicon has ~6.6× more negative words than positive (legal/risk-disclosure language is heavy on hedging), so every 10-K reads bearish on raw tone. Year-over-year change strips that bias and surfaces the actual shift in management's framing.
Tone shift by section
The two components the gauge averages: how Risk Factors and MD&A each shifted in net tone versus last year's 10-K. The headline above is their average, so a green needle over a soft section just means the other section carried it.
Risk Factors
-
Not scored
Net-tone change vs last year's 10-K.
MD&A
+0.05pp
Flat
Net-tone change vs last year's 10-K.
Per-snippet highlights
Sentence-level sentiment highlighting with category and subcategory filters is coming once the snippet-scoring pipeline lands. For now, dig into the actual section text on the Sections tab.
No section text extracted for this filing. The 10-K may use a non-standard template that the parser doesn't recognize - the original doc is still linked in the Stats tab.
Language change vs prior 10-K
MD&A (Item 7) - words with the biggest YoY frequency increase
Negative rising
losses+2
restated+2
penalty+1
Positive rising
effective+7
benefit+5
gains+2
greater+2
favorable+1
MD&A (Item 7)
54,016 words
Management’s Discussion and Analysis should be read in conjunction with ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “ITEM 1A. RISK FACTORS.” Actual results may differ materially from those contained in any forward-looking statements.
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:
the requirement to invest at least 70% of our assets in “qualifying assets”;
source of income limitations;
asset diversification requirements; and
the requirement to distribute (or be treated as distributing) in each taxable year at least 90% of our investment company taxable income and tax-exempt interest for that taxable year.
Our shares are listed on the NYSE under the symbol “TSLX.”
Our investment objective is to generate current income by targeting investments with favorable “risk-adjusted returns,” which are
expected returns that are adjusted based on the levels of risk associated with the investments. Since we began our investment activities in July 2011, through December 31, 2025, we have originated more than $53.3 billion aggregate principal amount of investments and retained approximately $11.8 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 December 31, 2025, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 87.9% of our total investments based on fair value, had weighted average annual revenue of $449.2 million and weighted average annual EBITDA of $127.3 million. As of December 31, 2025, our core portfolio companies had a median annual revenue of $159.4 million and a median annual EBITDA of $48.0 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 December 31, 2025, the largest single investment based on fair value represented 2.4% of our total investment portfolio.
As of December 31, 2025, the average investment size in each of our portfolio companies was approximately $23.4 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 $30.4 million as of December 31, 2025.
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 December 31, 2025, 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 December 31, 2025, approximately 90.1% of our portfolio was invested in secured debt, including 89.2% 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 year ended December 31, 2025, the weighted average term on new investment commitments in new portfolio companies was 6.4 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 December 31, 2025, we had call protection on 78.9% of our debt investments based on fair value, with weighted average call prices of 107.9% 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 December 31, 2025, 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 $125 billion of assets under management as of December 31, 2025. 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 market purchases and restructurings, and has a team of over 740 investment and operating professionals. As of December 31, 2025, seventy-eight (78) of these personnel are dedicated to direct lending, including sixty-three (63) 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.
Key Components of Our Results of Operations
Investments
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.
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 December 31, 2025, 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 years ended December 31, 2025, 2024 and 2023, 5.7%, 6.1% and 4.5%, 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.
Expenses
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:
calculating individual asset values and our net asset value (including the cost and expenses of any independent valuation firms);
expenses, including travel expenses, incurred by the Adviser, or members of our Investment Team, or payable to third parties, in respect of due diligence on prospective portfolio companies and, if necessary, in respect of enforcing our rights with respect to investments in existing portfolio companies;
the costs of any public offerings of our common stock and other securities, including registration and listing fees;
the Management Fee and any Incentive Fee;
certain costs and expenses relating to distributions paid on our shares;
administration fees payable under our Administration Agreement;
costs of preparing financial statements and maintaining books and records and filing reports or other documents with the SEC (or other regulatory bodies) and other reporting and compliance costs, and the compensation of professionals responsible for the preparation of the foregoing, including the allocable portion of the compensation of our Chief Financial Officer, Chief Compliance Officer and other professionals who spend time on those related activities (based on the percentage of time those individuals devote, on an estimated basis, to our business and affairs);
debt service and other costs of borrowings or other financing arrangements;
the Adviser’s allocable share of costs incurred in providing significant managerial assistance to those portfolio companies that request it;
amounts payable to third parties relating to, or associated with, making or holding investments;
transfer agent and custodial fees;
costs of hedging;
commissions and other compensation payable to brokers or dealers;
taxes;
Independent Director fees and expenses;
the costs of any reports, proxy statements or other notices to our stockholders (including printing and mailing costs), the costs of any stockholders’ meetings and the compensation of investor relations personnel responsible for the preparation of the foregoing and related matters;
our fidelity bond;
directors and officers/errors and omissions liability insurance, and any other insurance premiums;
indemnification payments;
direct costs and expenses of administration, including audit, accounting, consulting and legal costs; and
all other expenses reasonably incurred by us in connection with making investments and administering our business.
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 favorableopportunities 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 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 has 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 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 December 31, 2024, our portfolio based on fair value consisted of 93.9% first-lien debt investments, 0.6% second-lien debt investments, 1.1% mezzanine debt investments, 4.4% equity and other investments and less than 0.1% structured credit investments.
As of December 31, 2025 and December 31, 2024, 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 12.3%, 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 11.3% and 12.5%, respectively.
As of December 31, 2025 and December 31, 2024, 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) and 116 portfolio companies (including one structured credit investment, which include each series of collateralized loan obligation as a separate portfolio company investment), respectively, with an aggregate fair value of $3,347.3 million and $3,518.4 million, respectively.
For the year ended December 31, 2025, the principal amount of new investments funded was $894.0 million in sixty-five new portfolio companies and sixteen existing portfolio companies. For this period, we had $1,196.1 million aggregate principal amount in exits and repayments.
For the year ended December 31, 2024, the principal amount of new investments funded was $838.9 million in thirty-four new portfolio companies and twenty-one existing portfolio companies. For this period, we had $793.7 million aggregate principal amount in exits and repayments.
Our investment activity for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 is presented below (information presented herein is at par value unless otherwise indicated).
Year Ended
($ in millions)
December 31, 2025
December 31, 2024
December 31, 2023
New investment commitments:
Gross originations (1)
Less: Syndications/sell downs (1)
Total new investment commitments
Principal amount of investments funded:
First-lien
Second-lien
Mezzanine
Equity and other
Structured Credit
Total
Principal amount of investments sold or repaid:
First-lien
Second-lien
Mezzanine
Equity and other
Structured Credit
Total
Number of new investment commitments in
new portfolio companies (2)
Average new investment commitment amount in
new portfolio companies (2)
Weighted average term for new investment
commitments in new portfolio companies
(in years) (2)
Percentage of new debt investment commitments
at floating rates
Percentage of new debt investment commitments
at fixed rates
Weighted average interest rate of new
investment commitments
Weighted average spread over reference rate of new
floating rate investment commitments
Weighted average interest rate on investments
fully sold or paid down
Includes affiliates of Sixth Street.
For the year ended December 31, 2025, includes 45 structured credit investments with a total principal amount of $114.9 million and a weighted average term of 12.3 years.
As of December 31, 2025 and December 31, 2024, our investments consisted of the following:
December 31, 2025
December 31, 2024
($ in millions)
Amortized Cost
Fair Value
Amortized Cost
Fair Value
First-lien debt investments
Second-lien debt investments
Mezzanine debt investments
Equity and other investments
Structured credit investments
Total
The following tables show the fair value and amortized cost of our performing and non-accrual investments as of December 31, 2025 and December 31, 2024:
December 31, 2025
December 31, 2024
($ in millions)
Fair Value
Percentage
Fair Value
Percentage
Performing
Non-accrual (1)
Total
December 31, 2025
December 31, 2024
($ in millions)
Amortized Cost
Percentage
Amortized Cost
Percentage
Performing
Non-accrual (1)
Total
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. 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. See “–Critical Accounting Estimates – Interest and Dividend Income Recognition.”
The weighted average yields and interest rates of our performing debt investments at fair value as of December 31, 2025 and December 31, 2024 were as follows:
December 31, 2025
December 31, 2024
Weighted average total yield of debt and income
producing securities (1)
Weighted average interest rate of debt and income
producing securities
Weighted average spread over reference rate of all floating
rate investments
Weighted average total portfolio yield at fair value was 10.5% at December 31, 2025 and 11.6% at December 31, 2024.
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 of our investments, which may include the following:
assessment of success of the portfolio company in adhering to its business plan and compliance with covenants;
periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;
comparisons to other companies in the industry;
attendance at, and participation in, board meetings; and
review of monthly and quarterly financial statements and financial projections for portfolio companies.
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:
An investment is rated 1 if, in the opinion of the Adviser, it is performing as agreed and there are no concerns about the portfolio company’s performance or ability to meet covenant requirements. For these investments, the Adviser generally prepares monthly reports on investment performance and intensive quarterly asset reviews.
An investment is rated 2 if it is performing as agreed, but, in the opinion of the Adviser, there may be concerns about the company’s operating performance or trends in the industry. For these investments, in addition to monthly reports and quarterly asset reviews, the Adviser also researches any areas of concern with the objective of early intervention with the portfolio company.
An investment will be assigned a rating of 3 if it is paying its obligations to us as agreed but a material covenant violation is expected. For these investments, in addition to monthly reports and quarterly asset reviews, the Adviser also adds the investment to its “watch list” and researches any areas of concern with the objective of early intervention with the portfolio company.
An investment will be assigned a rating of 4 if a material covenant has been violated, but the company is making its scheduled payments on its obligations to us. For these investments, the Adviser generally prepares a bi-monthly asset review email and generally has monthly meetings with the portfolio company’s senior management. For investments where there have been material defaults, including bankruptcy filings, failures to achieve financial performance requirements or failure to maintain liquidity or loan-to-value requirements, the Adviser often will take immediate action to protect its position. These remedies may include negotiating for additional collateral, modifying investment terms or structure, or payment of amendment and waiver fees.
A rating of 5 indicates an investment is in default on its interest and/or principal payments. For these investments, our Adviser reviews the investments on a bi-monthly basis and, where possible, pursues workouts that achieve an early resolution to avoid further deterioration of our investment. The Adviser retains legal counsel and takes actions to preserve our rights, which may include working with the portfolio company to have the default cured, to have the investment restructured or to have the investment repaid through a consensual workout. Investments that carry a rating of 5 would typically indicate the position has been placed on non-accrual status (for investments that otherwise would be income producing).
The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of December 31, 2025 and December 31, 2024. 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.
December 31, 2025
December 31, 2024
Investment
Investments at
Investments at
Performance
Fair Value
Percentage of
Fair Value
Percentage of
Rating
($ in millions)
Total Portfolio
($ in millions)
Total Portfolio
Total
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. 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 December 31, 2025, SCP had not commenced operations and no capital had been contributed to SCP.
Results of Operations
Operating results for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 were as follows:
Year Ended
($ in millions) (1)
December 31, 2025
December 31, 2024
December 31, 2023
Total investment income
Less: Net expenses
Net investment income before income taxes
Less: Income taxes, including excise taxes
Net investment income
Net realized gains (losses) (2)
Net change in unrealized gains (losses) (2)
Net increase (decrease) in net assets resulting from operations
Table may not sum due to rounding.
Includes foreign exchange hedging activity.
Investment Income
For the Year Ended December 31,
($ in millions) (1)
Interest from investments
Paid-in-kind interest income
Dividend income
Other income
Total investment income
Table may not sum due to rounding.
Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $423.0 million for the year ended December 31, 2024 to $400.8 million for the year ended December 31, 2025. The decrease in interest from investments was primarily the result of a decrease in reference rates for the year ended December 31, 2025 compared to 2024. Paid-in-kind interest income decreased from $29.3 million for the year ended December 31, 2024 to $25.6 million for the year ended December 31, 2025 due to decreased PIK election. Dividend income decreased from $11.7 million for the year ended December 31, 2024 to $2.3 million for the year ended December 31, 2025 due to decreased investments in dividend yielding securities in 2025. Other income increased from $18.5 million for the year ended December 31, 2024 to $20.3 million for the year ended December 31, 2025, primarily due to increased miscellaneous fees earned during 2025.
Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from $399.1 million for the year ended December 31, 2023 to $423.0 million for the year ended December 31, 2024. The increase in interest from investments was primarily the result of a larger average portfolio size for the year ended December 31, 2024 compared to the same period in 2023. Paid-in-kind interest income increased from $19.7 million for the year ended December 31, 2023 to $29.3 million for the year ended December 31, 2024 due to increased PIK election. Dividend income increased from $4.2 million for the year ended December 31, 2023 to $11.7 million for the year ended December 31, 2024 due to increased investments in dividend yielding securities in 2024.
Other income increased from $15.1 million for the year ended December 31, 2023 to $18.5 million for the year ended December 31, 2024, primarily due to increased amendment and other miscellaneous fees earned during 2024.
Expenses
Operating expenses for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 were as follows:
For the Year Ended December 31,
($ in millions) (1)
Interest
Management fees (net of waivers)
Incentive fees on net investment income
Incentive fees on net capital gains
Professional fees
Directors’ fees
Other general and administrative
Net Expenses
Table may not sum due to rounding.
Interest
Interest expense, including other debt financing expenses, decreased from $154.2 million for the year ended December 31, 2024 to $129.6 million for the year ended December 31, 2025. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding and a decrease in the average debt outstanding from $1,882.7 million for the year ended December 31, 2024 to $1,880.3 million for the year ended December 31, 2025. The average interest rate on our debt outstanding decreased from 7.5% for the year ended December 31, 2024 to 6.2% for the year ended December 31, 2025 due to a change in SOFR rates and the mix of our debt financing sources.
Interest expense, including other debt financing expenses, increased from $133.7 million for the year ended December 31, 2023 to $154.1 million for the year ended December 31, 2024. This increase was primarily due to an increase in the average interest rate on our debt outstanding and an increase in the average debt outstanding from $1,705.6 million for the year ended December 31, 2023 $1,882.7 million for the year ended December 31, 2024. The average interest rate on our debt outstanding increased from 7.3% for the year ended December 31, 2023 to 7.5% for the year ended December 31, 2024 due to a change in the mix of our debt financing sources.
Management Fees
Management Fees (gross of waivers) increased from $51.8 million for the year ended December 31, 2024 to $52.2 million for the year ended December 31, 2025 due to an increase in average assets. Management Fees (net of waivers) increased from $50.3 million for the year ended December 31, 2024 to $50.9 million for the year ended December 31, 2025. Management Fees waived were $1.3 million for the year ended December 31, 2025 and $1.5 million for the year ended December 31, 2024, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.
Management Fees (gross of waivers) increased from $46.4 million for the year ended December 31, 2023 to $51.8 million for the year ended December 31, 2024 due to an increase in average assets. Management Fees (net of waivers) increased from $45.2 million for the year ended December 31, 2023 to $50.3 million for the year ended December 31, 2024. Management Fees waived were $1.5 million for the year ended December 31, 2024, pursuant to the Leverage Waiver. Management Fees waived were $1.2 million for the year ended December 31, 2023, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.
Incentive Fees
For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, Incentive Fees were $38.4 million, $40.2 million and $47.0 million, respectively, of which $43.5 million, $45.5 million, and $42.6 million, respectively, were realized and payable to the Adviser. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, $(5.1) million, $(5.4) million, and $4.4 million, respectively, of Incentive Fees were accrued related to Capital Gains Fees. As of December 31, 2025, these accrued Incentive Fees are not contractually payable to the Adviser.
Professional Fees and Other General and Administrative Expenses
Professional fees increased from $7.5 million for the year ended December 31, 2024 to $8.3 million for the year ended December 31, 2025 due to higher legal and audit related fees. Other general and administrative fees increased from $5.5 million for the year ended December 31, 2024 to $5.6 million for the year ended December 31, 2025.
Professional fees increased from $7.3 million for the year ended December 31, 2023 to $7.5 million for the year ended December 31, 2024 due to higher legal fees, higher independent third-party valuation firm fees and higher sub-agent administration costs due to a larger portfolio. Other general and administrative fees increased from $5.3 million for the year ended December 31, 2023 to $5.5 million for the year ended December 31, 2024.
Income Taxes, Including Excise Taxes
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 our 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.
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 calendar years ended December 31, 2025, December 31, 2024 and December 31, 2023 we recorded a net expense of $5.3 million, $3.9 million and $2.4 million, respectively, for U.S. federal excise tax and other taxes.
For the calendar years ended December 31, 2025, December 31, 2024 and December 31, 2023 we recorded a deferred tax benefit of $0.5 million, a deferred tax liability of $2.6 million, and a deferred tax benefit of $0.6 million respectively. For the calendar year ended December 31, 2025 we recognized a tax expense of $0.9 million pertaining to net realized gains.
Net Realized and Unrealized Gains and Losses
The following table summarizes our net realized and unrealized gains (losses) for the years ended December 31, 2025, December 31, 2024 and December 31, 2023:
For the Year Ended December 31,
($ in millions) (1)
Net realized gains (losses) on investments
Net realized gains (losses) on foreign currency transactions (2)
Net realized gains (losses) on foreign currency investments
Net realized gains (losses) on foreign currency borrowings
Income tax provision on net realized gains
Net Realized Gains (Losses)
Change in unrealized gains on investments
Change in unrealized (losses) on investments
Net Change in Unrealized Gains (Losses) on
Investments
Unrealized gains (losses) on foreign currency borrowings
Unrealized gains (losses) on foreign currency transactions (2)(3)
Unrealized gains (losses) on interest rate swaps
Income tax provision on unrealized gains (losses)
Net Change in Unrealized Gains (Losses) on Foreign
Currency Transactions and Income Tax Provision
Net Change in Unrealized Gains (Losses)
Table may not sum due to rounding.
Includes foreign exchange hedging activity.
Amounts round to less than $0.1 million.
For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we had net realized losses on investments of $47.4 million, net realized gains of $9.0 million and net realized gains of $12.2 million, respectively. For the year ended December 31, 2025, we had net realized gains of $0.6 million, for the year ended December 31, 2024, we had net realized losses of $1.2 million and for the year ended December 31, 2023, we had net realized gains of $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 years ended December 31, 2025, December 31, 2024 and December 31, 2023, we had net realized gains of $1.1 million, net realized losses of $4.3 million and net realized losses $0.5 million, respectively, on foreign currency investments. For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we had net realized losses of $2.2 million, net realized gains of $5.1 million and net realized gains of $0.5 million, respectively, on foreign currency borrowings. The net realized gains and losses on foreign currency borrowings were a result of payments on our revolving credit facility. For the year ended December 31, 2025 we recognized a tax expense of $0.9 million pertaining to net realized gains.
For the year ended December 31, 2025, we had $110.3 million in unrealized gains on 60 portfolio company investments, which was offset by $65.5 million in unrealized losses on 108 portfolio company investments. Unrealized gains for the year ended December 31, 2025 resulted from positive portfolio company specific developments, fluctuations in GBP, EUR, AUD, CAD, and SEK exchange rates, and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the year ended December 31, 2025 resulted from negative credit-related adjustments, widening credit spreads, and the reversal of prior period unrealized gains due to realizations.
For the year ended December 31, 2024, we had $48.9 million in unrealized gains on 70 portfolio company investments, which was offset by $101.7 million in unrealized losses on 100 portfolio company investments. Unrealized gains for the year ended December 31, 2024 resulted from tightening credit spreads and positive portfolio company specific developments. Unrealized losses for the year ended December 31, 2024 resulted from negative portfolio company specific developments and the reversal of prior period unrealized gains due to realizations.
For the year ended December 31, 2023, we had $75.3 million in unrealized gains on 130 portfolio company investments, which was offset by $56.4 million in unrealized losses on 21 portfolio company investments. Unrealized gains for the year ended December 31, 2023 resulted from an increase in fair value, primarily due to positive valuation adjustments, unwind of prior period unrealized losses, and changes in credit spreads. Unrealized losses for the year ended December 31, 2023 resulted from the reversal of prior period unrealized gains due to realizations and negative credit-related adjustments.
For the year ended December 31, 2025, we had unrealized losses on foreign currency borrowings of $35.9 million, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the years ended December 31, 2024 and 2023, we had an unrealized gain on foreign currency borrowings of $13.4 million and an unrealized loss on foreign currency borrowings of $6.0 million, respectively, primarily as a result of fluctuations in the AUD, CAD, GBP and EUR exchange rates. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, we had unrealized losses of less than $0.1 million, less than $0.1 million, and $0.3 million, respectively, on foreign currency transactions. For the years ended December 31, 2025 and December 31, 2024, we had no unrealized gains or losses on interest rate swaps. For the year ended December 31, 2023 we had an unrealized gain on interest rate swaps of $0.1 million, due to fluctuations in interest rates.
As of December 31, 2025, we had a deferred tax liability of $4.6 million pertaining to net unrealized gains, related to seven of our investments. Given the unrealized gains generated by this entity, the deferred tax liability has been offset by a deferred tax asset of $0.6 million pertaining to operating losses. We recorded a deferred tax benefit of $0.5 million for the year ended December 31, 2025.
As of December 31, 2024, we had a deferred tax liability of $5.2 million pertaining to net unrealized gains, related to eight of our investments. Given the unrealized gains generated by this entity, the deferred tax liability has been offset by a deferred tax asset of $0.6 million pertaining to operating losses. We recorded a current tax expense of $0.2 million and a deferred tax expense of $2.6 million for the year ended December 31, 2024.
As of December 31, 2023, we had a deferred tax liability of $2.8 million pertaining to net unrealized gains, related to seven of our investments. Given the unrealized gains generated by this entity, the deferred tax liability has been offset by a deferred tax asset of $0.9 million pertaining to operating losses. We recorded a current tax expense of $0.1 million and a deferred tax benefit of $0.6 million for the year ended December 31, 2023.
Realized Gross Internal Rate of Return
Since we began investing in 2011 through December 31, 2025, weighted by capital invested, our exited investments have generated an average realized gross internal rate of return to us of 17.1% (based on total capital invested of $9.1 billion and total proceeds from these exited investments of $11.7 billion). Ninety-two 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 years ended December 31, 2025, December 31, 2024 and December 31, 2023, we had $35.9 million of unrealized losses, $13.4 million of unrealized gains and $6.0 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 years ended December 31, 2025, December 31, 2024 and December 31, 2023. See Note 2 for additional disclosure regarding our accounting for foreign currency. See Note 7 for additional disclosure regarding the amounts of outstanding debt denominated in each foreign currency at December 31, 2025. 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:
investments in portfolio companies and other investments and to comply with certain portfolio diversification requirements;
the cost of operations (including paying our Adviser);
debt service, repayment, and other financing costs; and
cash dividends to the holders of our shares.
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 December 31, 2025 and December 31, 2024, our asset coverage ratio was 191.5% and 182.5%, 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 December 31, 2025, 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 December 31, 2025, we had approximately $1.1 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.
As of December 31, 2025, we had $19.7 million in cash and cash equivalents, including $16.7 million of restricted cash. During the year ended December 31, 2025, cash provided by operating activities was $401.6 million, primarily attributable to repayments and proceeds from investments of $1,339.4 million, an increase in net assets resulting from operations of $170.5 million and other operating activity of $9.8 million, which was partially offset by funding portfolio investments of $1,118.1 million. Cash used in financing activities was $409.2 million during the period due to paydowns on our Revolving Credit Facility of $1,567.8 million, dividends paid of $170.3 million and deferred financing costs of $7.3 million, which was partially offset by borrowings of $1,336.2 million.
As of December 31, 2024, we had $27.3 million in cash and cash equivalents, including $22.4 million of restricted cash. During the year ended December 31, 2024, cash used in operating activities was $45.5 million, primarily attributable to funding portfolio investments of $1,096.1 million, which was partially offset by repayments and proceeds from investments of $863.4 million, an increase in net assets resulting from operations of $186.6 million and other operating activity of $0.7 million. Cash provided by financing activities was $47.6 million during the period due to borrowings of $1,784.9 million and proceeds from issuance of common stock, net of offering and underwriting costs of $93.3 million, which was partially offset by paydowns on our Revolving Credit Facility of $1,653.1 million, dividends paid of $168.7 million and deferred financing costs of $8.8 million.
As of December 31, 2023, we had $25.2 million in cash and cash equivalents, including $24.0 million of restricted cash. During the year ended December 31, 2023, cash used in operating activities was $236.8 million, primarily attributable to funding portfolio investments of $943.5 million and other operating activity of $30.0 million, which was partially offset by repayments and proceeds from investments of $514.7 million and an increase in net assets resulting from operations of $222.0 million. Cash provided by financing activities was $236.3 million during the period due to borrowings of $1,546.2 million and proceeds from issuance of common stock, net of offering and underwriting costs of $89.2 million, which was partially offset by paydowns on our Revolving Credit Facility of $1,233.3 million, dividends paid of $156.4 million and deferred financing costs of $9.4 million.
As of December 31, 2025, we had $16.7 million restricted cash pledged as collateral under our interest rate swap agreements, compared to $22.4 million for the year ended December 31, 2024.
Equity
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, the Company 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 December 31, 2025.
During the years ended December 31, 2025 and December 31, 2024, we issued 1,043,714 and 1,231,937 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $22.5 million and $24.7 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 on 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.
For the years ended December 31, 2025 and December 31, 2024, no shares were repurchased.
Debt
Revolving Credit Facility
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 a syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).
As of December 31, 2025, 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.
Pursuant to the Fifteenth Amendment dated April 24, 2024, aggregate commitments were increased to $1.7 billion. With respect to $1.505 billion of commitments, the revolving period was extended to April 24, 2028 and the stated maturity was extended to April 24, 2029. For the remaining $195.0 million of commitments, (A) with respect to $25.0 million of commitments, the revolving period ended on February 4, 2025 and the stated maturity is February 4, 2026 and (B) with respect to $170.0 million of commitments, the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027.
Pursuant to the Sixteenth Amendment dated March 4, 2025, 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 March 2, 2029 and the stated maturity was extended to March 4, 2030. For the remaining $150.0 million of commitments the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027.
We may borrow amounts in U.S. dollars or certain other permitted currencies. 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. As of December 31, 2024, we had outstanding debt denominated in Australian dollars (AUD) of 63.0 million, British pounds (GBP) of 62.4 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 80.2 million and Euro (EUR) of 167.2 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 December 31, 2025 and December 31, 2024 we had $21.7 million and $21.8 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 of 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.
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:
an asset coverage ratio of no less than 2 to 1 on the last day of any fiscal quarter;
stockholders’ equity of at least $650 million plus 25% of the net proceeds of the sale of equity interests after April 24, 2024; and
minimum asset coverage ratio of no less than 1.5 to 1 with respect to (i) the consolidated assets of our and our subsidiary’s guarantors (including certain limitations on the contribution of equity in financing subsidiaries) to (ii) the secured debt of our and our subsidiary’s guarantors plus unsecured senior securities of our and our subsidiary guarantors that mature within 90 days of the date of determination (the “Obligor Asset Coverage Ratio”).
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.
Net proceeds received from the issuance of the 2030 Notes were used to pay down borrowings on the Revolving Credit Facility.
As of December 31, 2025 and December 31, 2024, the Company was in compliance with the terms of the Revolving Credit Facility.
2023 Notes
In January 2018, we issued $ 150.0 million aggregate principal amount of unsecured notes that matured on January 22, 2023 (the “ 2023 Notes ”). The principal amount of the 2023 Notes was payable at maturity. The 2023 Notes bore interest at a rate of 4.50% per year, payable semi-annually commencing on July 22, 2018, and were redeemable 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 2023 Notes, net of underwriting discounts and offering costs, were $146.9 million. We used the net proceeds of the 2023 Notes to repay outstanding indebtedness under the Revolving Credit Facility. The 2023 Notes matured on January 22, 2023 and were fully repaid in cash. The swap transaction associated with the issuance of the 2023 Notes also matured on January 22, 2023.
2024 Notes
In November 2019, we issued $ 300.0 million aggregate principal amount of unsecured notes that matured on November 1, 2024 (the “ 2024 Notes ” ). The principal amount of the 2024 Notes was payable at maturity. The 2024 Notes bear interest at a rate of 3.875% per year, payable semi-annually commencing on May 1, 2020, 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 2024 Notes, net of underwriting discounts, offering costs and original issue discount were $292.9 million. We used the net proceeds of the 2024 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In February 2020, we issued an additional $ 50.0 million aggregate principal amount of unsecured notes that mature on November 1, 2024. The additional 2024 Notes are a further issuance of, fungible with, rank equally in right of payment with and have the same terms (other than the issue date and the public offering price) as the initial issuance of 2024 Notes. Total proceeds from the issuance of the additional 2024 Notes, net of underwriting discounts, offering costs and original issue premium were $50.1 million. We used the net proceeds of the 2024 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
During the year ended December 31, 2020, we repurchased on the open market and extinguished $2.5 million in aggregate principal amount of the 2024 Notes for $2.4 million. These repurchases resulted in a gain on extinguishment of debt of less than $0.1 million. This gain is included in the extinguishment of debt in the accompanying Consolidated Statements of Operations.
The 2024 Notes matured on November 1, 2024 and were fully repaid. The corresponding swap transaction associated with the issuance of the 2024 Notes also matured on November 1, 2024.
2026 Notes
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 December 31, 2025 and December 31, 2024, the effective hedge interest rate swaps had a fair value of $(5.8) million and $(17.6) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2026 Notes.
2028 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 13, 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 December 31, 2025 and December 31, 2024, the effective hedge interest rate swaps had a fair value of $4.5 million and $(1.4) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2028 Notes.
2029 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 December 31, 2025 and December 31, 2024 the effective hedge interest rate swaps had a fair value of $3.3 million and $(5.2) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2029 Notes.
2030 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 December 31, 2025, the effective hedge interest rate swaps had a fair value of $8.3 million which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2030 Notes.
Debt obligations consisted of the following as of December 31, 2025 and December 31, 2024:
December 31, 2025
Aggregate Principal
Outstanding
Amount
Carrying
($ in millions)
Amount Committed
Principal
Available (1)
Value (2)(3)
Revolving Credit Facility
2026 Notes
2028 Notes
2029 Notes
2030 Notes
Total Debt
The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility, outstanding letters of credit issued and asset coverage requirements.
The carrying values of the Revolving Credit Facility, 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes are presented net of the combination of deferred financing costs and original issue discounts totaling $15.1 million, $0.7 million, $3.3 million, $5.3 million and $6.6 million, respectively.
The carrying values of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes are presented inclusive of an incremental $(5.8) million, $4.5 million, $3.3 million and $8.3 million, which represents an adjustment in the carrying values of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes, each resulting from a hedge accounting relationship.
December 31, 2024
Aggregate Principal
Outstanding
Amount
Carrying
($ in millions)
Amount Committed
Principal
Available (1)
Value (2)(3)
Revolving Credit Facility
2026 Notes
2028 Notes
2029 Notes
Total Debt
The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility, outstanding letters of credit issued and asset coverage requirements.
The carrying values of the Revolving Credit Facility, 2026 Notes, 2028 Notes and 2029 Notes are presented net of the combination of deferred financing costs and original issue discounts totaling $15.4 million, $1.8 million, $4.5 million and $6.9 million, respectively.
The carrying values of the 2026 Notes, 2028 Notes and 2029 Notes are presented inclusive of an incremental $(17.6) million, $(1.4) million and $(5.2) million, which represents an adjustment in the carrying values of the 2026 Notes, 2028 Notes and 2029 Notes, each resulting from a hedge accounting relationship.
As of December 31, 2025 and December 31, 2024 , we were in compliance with the terms of our debt arrangements. We intend to continue to utilize our credit facilities to fund investments and for other general corporate purposes.
Off-Balance Sheet Arrangements
Portfolio Company Commitments
From time to time, we may enter into commitments to fund investments. We incorporate these commitments into our assessment of our liquidity position. Our senior secured revolving loan commitments are generally available on a borrower’s demand and may remain outstanding until the maturity date of the applicable loan. Our senior secured delayed draw term loan commitments are generally available on a borrower’s demand and, once drawn, generally have the same remaining term as the associated loan agreement. Undrawn senior secured delayed draw term loan commitments generally have a shorter availability period than the term of the associated loan agreement. As of December 31, 2025 and December 31, 2024, we had the following commitments to fund investments in current portfolio companies:
($ in millions)
December 31, 2025
December 31, 2024
Alaska Bidco Oy - Delayed Draw & Revolver
Aledade, Inc. - Revolver
Alpha Midco, Inc. - Delayed Draw & Revolver
American Achievement, Corp. - Revolver
Apellis Pharmaceuticals, Inc. - Delayed Draw
Aptean, Inc. - Delayed Draw & Revolver
Arcwood Environmental, Inc. - Delayed Draw & Revolver
Arrow Buyer, Inc. - Delayed Draw
Arrowhead Pharmaceuticals, Inc. - Delayed Draw
Artisan Bidco, Inc. - Revolver
Avalara, Inc. - Revolver
AVSC Holding Corp. - Revolver
Axonify, Inc. - Delayed Draw
Azurite Intermediate Holdings, Inc. - Revolver & Equity
Babylon Finco Limited - Delayed Draw
Banyan Software Holdings, LLC - Delayed Draw
Bayshore Intermediate #2, L.P. - Revolver
BCTO Ace Purchaser, Inc. - Delayed Draw & Revolver
Velocity Clinical Research, Inc. - Delayed Draw & Revolver
Wrangler Topco, LLC - Delayed Draw & Revolver
Total Portfolio Company Commitments (1)(2)
Represents the full amount of our commitments to fund investments on such date. Commitments may be subject to limitations on borrowings set forth in the agreements between us and the applicable portfolio company. As a result, portfolio companies may not be eligible to borrow the full commitment amount on such date.
Our estimate of the fair value of the current investments in these portfolio companies includes an analysis of the fair value of any unfunded commitments.
Other Commitments and Contingencies
As of December 31, 2025 and December 31, 2024, 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 December 31, 2025 and December 31, 2024, management is not aware of any material pending or threatenedlitigation 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 December 31, 2025 is as follows:
Payments Due by Period
Less than
($ in millions)
Total
1 year
1-3 years
3-5 years
After 5 years
Revolving Credit Facility
2026 Notes
2028 Notes
2029 Notes
2030 Notes
Total Contractual Obligations
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.
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 our 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:
investment company taxable income (which is generally our ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses), determined without regard to the deduction for dividends paid, for such taxable year; and
net tax-exempt interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions) for such taxable year.
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:
98% of our net ordinary income excluding certain ordinary gains or losses for that calendar year;
98.2% of our capital gain net income, adjusted for certain ordinary gains and losses, recognized for the twelve-month period ending on October 31 of that calendar year; and
100% of any income or gains recognized, but not distributed, in preceding years.
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 our 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:
the Investment Advisory Agreement;
the Administration Agreement; and
an ongoing agreement with an affiliate of TPG Global, LLC governing, inter alia, the parties’ respective ownership of and rights to use the “Sixth Street” and “TPG” trademarks and certain variations thereof.
Critical Accounting Estimates
The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described below. The critical accounting policies should be read in connection with our risk factors as disclosed in “ITEM 1A. RISK FACTORS.”
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, we utilize 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 our Board, based on, among other things, the input of the Adviser, our 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 our valuation.
The Board undertakes a multi-step valuation process, which includes, among other procedures, the following:
The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.
The Adviser’s management reviews the preliminary valuations with the investment professionals. Agreed-upon valuation recommendations are presented to the Audit Committee.
The Audit Committee reviews the valuations presented and recommends values for each investment to the Board.
The Board reviews the recommended valuations and determines the fair value of each investment; valuations that are not based on readily available market quotations are valued in good faith based on, among other things, the input of the Adviser, Audit Committee and, where applicable, other third parties, including independent third party valuation firms engaged at the direction of the Board.
We conduct 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 December 31, 2025, the independent third-party valuation firms performed their procedures over substantially all of our investments. Upon completion of such limited procedures, the third-party valuation firms determined that the fair value, as determined by the Board, of those investments subjected to their limited procedures, appeared reasonable.
We apply 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, we consider our 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:
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access.
Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
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, we apply the valuation policy approved by our Board that is consistent with ASC Topic 820. Consistent with the valuation policy, we evaluate the source of inputs, including any markets in which our 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), we subject 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, we review pricing and methodologies 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.
Our accounting policy on the fair value of our investments is critical because the determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of these valuations, and any change in these valuations, on the consolidated financial statements.
See Note 6 to our consolidated financial statements included in this Form 10-K for more information on the fair value of our investments.
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 us 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.
Our accounting policy on interest and dividend income recognition is critical because it involves the primary source of our revenue and accordingly is significant to the financial results as disclosed in our consolidated financial statements.
U.S. Federal Income Taxes
We have elected to be treated as a BDC under the 1940 Act. We also have elected to be treated as a RIC under the Code. So long as we maintain our status as a RIC, we will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that we distribute at least annually to our stockholders as dividends. As a result, any tax liability related to income earned and distributed by us represents obligations of our stockholders and will not be reflected in our consolidated financial statements.
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 reversed 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. As of December 31, 2025, we did not have any uncertain tax positions that met the recognition or measurement criteria, nor did we have any unrecognized tax benefits. Our 2024, 2023 and 2022 tax year returns remain subject to examination by the relevant federal, state, and local tax authorities.
Our accounting policy on income taxes is critical because if we are unable to maintain our status as a RIC, we would be required to record a provision for corporate-level U.S. federal income taxes which may be significant to our financial results.
I TEM 7A. 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 December 31, 2025, 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 December 31, 2025 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):
($ in millions)
Basis Point Change
Interest Income
Interest Expense
Net Interest Income
Up 300 basis points
Up 200 basis points
Up 100 basis points
Down 25 basis points
Down 50 basis points
Down 75 basis points
Down 100 basis points
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.
I TEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIXTH STREET SPECIALTY LENDING, INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of December 31, 2025 and 2024
Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023
Consolidated Schedules of Investments as of December 31, 2025 and 2024
Consolidated Statements of Changes in Net Assets for the Years Ended December 31, 2025, 2024 and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023
Notes to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors
Sixth Street Specialty Lending, Inc.:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Sixth Street Specialty Lending, Inc. and subsidiaries (the Company), including the consolidated schedules of investments, as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in the Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Such procedures also included confirmation of securities owned as of December 31, 2025 and 2024, by correspondence with custodians, agents, the underlying investees or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Assessment of the fair value of investments
As discussed in Notes 2, 4, and 6 to the consolidated financial statements, the Company classified $3.18 billion of its debt and equity investments as Level 3 in the fair value hierarchy as of December 31, 2025, as the fair value of such investments was measured using unobservable inputs. The Company typically determines the fair value of performing debt investments utilizing a yield analysis where a price is ascribed for each investment based upon an assessment of market yields for similar investments and, for its equity investments, multiples of similar companies’ revenues, earnings before income taxes, depreciation and amortization or some combination thereof and comparable market transactions.
We identified the assessment of the fair value of certain Level 3 debt and equity investments as a critical audit matter because evaluating the assumptions used to measure fair value involved subjective auditor judgment and changes in these assumptions could have had a significant impact on the investments’ estimated fair value. Specifically, the assumptions related to market yields for investments with similar terms and risks used in yield analyses, comparable financial performance multiples, and expected lives used in discounted cash flow analyses required subjective auditor judgment.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s investment valuation process, including controls related to the determination of the market yields, financial performance multiples, and expected lives used to estimate the fair value of investments. We assessed the Company’s market yield assumptions used to measure the fair value of its Level 3 investments by comparing such yields to third-party market and industry data for a selection of investments. We involved valuation professionals with specialized skills and knowledge who, for a selection of the Company’s investments, evaluated the Company’s estimate of fair value by developing an independent estimate of fair value through the use of relevant market information to develop a range of comparable financial performance multiples and market yield assumptions. We evaluated the Company’s ability to estimate fair value by comparing prior period values to prices of transactions occurring subsequent to the prior period valuation date.
/s/ KPMG LLP
We have served as the Company’s auditor since 2010.
New York, New York
February 12, 2026
Sixth Street Specialty Lending, Inc.
C onsolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
December 31,
December 31,
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $ 3,244,762 and $ 3,450,644 , respectively)
Controlled, affiliated investments (amortized cost of $ 78,520 and $ 88,509 , respectively)
Total investments at fair value (amortized cost of $ 3,323,282 and $ 3,539,153 , respectively)
Cash and cash equivalents (restricted cash of $ 16,727 and $ 22,362 , respectively)
Interest receivable
Prepaid expenses and other assets
Total Assets
Liabilities
Debt (net of deferred financing costs of $ 24,411 and $ 23,837 , respectively)
Management fees payable to affiliate
Incentive fees on net investment income payable to affiliate
Incentive fees on net capital gains accrued to affiliate
Other payables to affiliate
Other liabilities
Total Liabilities
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, 95,369,400
and 94,325,686 shares issued, respectively; and 94,705,150 and 93,661,436
shares outstanding, respectively
Additional paid-in capital
Treasury stock at cost; 664,250 and 664,250 shares held, respectively
Distributable earnings
Total Net Assets
Total Liabilities and Net Assets
Net Asset Value Per Share
The accompanying notes are an integral part of these consolidated financial statements.
Sixth Street Specialty Lending, Inc.
C onsolidated Statements of Operations
(Amounts in thousands, except share and per share amounts)
Year Ended
Year Ended
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Income
Investment income from non-controlled, non-affiliated investments:
Interest from investments
Paid-in-kind interest income
Dividend income
Other income
Total investment income from non-controlled, non-affiliated investments
Investment income from controlled, affiliated investments:
Interest from investments
Other income
Total investment income from controlled, affiliated investments
Total Investment Income
Expenses
Interest
Management fees
Incentive fees on net investment income
Incentive fees on net capital gains
Professional fees
Directors’ fees
Other general and administrative
Total expenses
Management and incentive fees waived (Note 3)
Net Expenses
Net Investment Income Before Income Taxes
Income taxes, including excise taxes
Net Investment Income
Unrealized and Realized Gains (Losses)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments
Controlled, affiliated investments
Translation of other assets and liabilities in foreign currencies
Interest rate swaps
Income tax provision
Total net change in unrealized gains (losses)
Realized gains (losses):
Non-controlled, non-affiliated investments
Non-controlled, affiliated investments
Controlled, affiliated investments
Foreign currency transactions
Income tax provision
Total net realized gains (losses)
Total Net Unrealized and Realized Gains (Losses)
Increase (Decrease) in Net Assets Resulting from Operations
Earnings per common share—basic and diluted
Weighted average shares of common stock outstanding—basic and diluted
The accompanying notes are an integral part of these consolidated financial statements.
Sixth Street Specialty Lending, Inc.
Consolidated Schedule of Investments as of December 31, 2025
(Amounts in thousands, except share amounts)
(Unaudited)
Company (1)
Investment
Initial
Acquisition
Date
Reference
Rate and
Spread
Interest Rate
Amortized
Cost (2)(7)
Fair Value (8)
Percentage
of Net Assets
Debt Investments
Business Services
Artisan Bidco, Inc. (3)
First-lien loan ($ 38,438 par, due 11/2029 )
SOFR + 7.00 %
First-lien loan (EUR 17,380 par, due 11/2029 )
(EUR 17,293 )
First-lien revolving loan ($ 4,287 par, due 11/2029 )
SOFR + 7.00 %
Azurite Intermediate Holdings, Inc. (3)
First-lien loan ($ 42,750 par, due 3/2031 )
SOFR + 6.00 %
BCTO Ignition Purchaser, Inc. (3)
First-lien holdco loan ($ 54,435 par, due 10/2030 )
SOFR + 7.50 %
11.37 % PIK
Crewline Buyer, Inc. (3)
First-lien loan ($ 58,384 par, due 11/2030 )
SOFR + 6.75 %
Dye & Durham Corp. (3)(4)(9)
First-lien loan ($ 945 par, due 4/2031 )
SOFR + 4.35 %
Elements Finco Limited (3)(4)
First-lien loan ($ 2,270 par, due 4/2031 )
SOFR + 5.25 %
8.97 % (incl. 2.25 % PIK)
First-lien loan ($ 1,848 par, due 4/2031 )
SOFR + 5.00 %
First-lien loan (GBP 10,529 par, due 4/2031 )
9.23 % (incl. 2.50 % PIK)
(GBP 10,660 )
ExtraHop Networks, Inc. (3)(5)
First-lien loan ($ 76,301 par, due 7/2027 )
SOFR + 6.60 %
First-lien revolving loan ($ 669 par, due 7/2027 )
SOFR + 6.60 %
Galileo Parent, Inc. (3)
First-lien loan ($ 63,444 par, due 5/2030 )
SOFR + 5.75 %
First-lien revolving loan ($ 6,635 par, due 5/2030 )
SOFR + 5.75 %
Lynx BidCo (3)(4)
First-lien loan ($ 1,523 par, due 7/2031 )
SOFR + 6.50 %
First-lien loan (EUR 23,956 par, due 7/2031 )
(EUR 23,735 )
Mitnick Corporate Purchaser, Inc. (3)(9)
First-lien loan ($ 323 par, due 5/2029 )
SOFR + 4.85 %
Price Fx Inc. (3)(4)
First-lien loan (EUR 910 par, due 10/2029 )
(EUR 926 )
First-lien loan (EUR 910 par, due 10/2029 )
(EUR 919 )
USA DeBusk, LLC (3)
First-lien loan ($ 8,322 par, due 4/2031 )
SOFR + 5.25 %
First-lien revolving loan ($ 901 par, due 4/2030 )
SOFR + 5.25 %
Wrangler TopCo, LLC (3)
First-lien loan ($ 5,970 par, due 9/2029 )
SOFR + 5.75 %
Chemicals
Erling Lux Bidco SARL (3)(4)
First-lien loan (EUR 11,549 par, due 9/2028 )
(EUR 11,758 )
First-lien loan (GBP 19,592 par, due 9/2028 )
(GBP 19,836 )
First-lien loan (NOK 7,427 par, due 9/2028 )
(NOK 7,520 )
First-lien revolving loan (GBP 593 par, due 9/2028 )
(GBP 600 )
Communications
Aurelia Netherlands B.V. (3)(4)
First-lien loan (EUR 32,904 par, due 5/2031 )
(EUR 33,068 )
X Holdings Inc. (9)
First-lien loan ($ 9,338 par, due 10/2029 ) (3)
SOFR + 6.75 %
First-lien loan ($ 988 par, due 10/2029 )
Education
Astra Acquisition Corp. (3)(14)
Second-lien loan ($ 40,084 par, due 10/2029 )
EMS Linq, Inc. (3)
First-lien loan ($ 56,216 par, due 12/2027 )
SOFR + 6.35 %
First-lien revolving loan ($ 2,916 par, due 12/2027 )
SOFR + 6.35 %
Kangaroo Bidco AS (3)(4)
First-lien loan ($ 30,625 par, due 11/2030 )
SOFR + 6.25 %
Severin Acquisition, LLC (3)
First-lien loan ($ 15,905 par, due 10/2031 )
SOFR + 4.75 %
8.47 % (incl. 2.25 % PIK)
Electronics
Sapphire Software Buyer, Inc. (3)
First-lien loan ($ 26,963 par, due 9/2031 )
SOFR + 5.00 %
Financial Services
Alaska Bidco Oy (3)(4)
First-lien loan (EUR 727 par, due 5/2030 )
(EUR 732 )
Arlberg Bidco LLC (3)(4)(5)
First-lien loan ($ 5,000 par, due 2/2031 )
SOFR + 5.75 %
GreenShoot BidCo B.V (3)(4)
First-lien loan (EUR 5,107 par, due 5/2030 )
(EUR 5,038 )
Ibis Intermediate Co. (3)(5)
First-lien loan ($ 1,170 par, due 5/2027 )
SOFR + 4.65 %
Ibis US Blocker Co. (3)
First-lien loan ($ 20,790 par, due 5/2028 )
SOFR + 8.40 %
12.22 % PIK
Passport Labs, Inc.
Convertible Promissory Note A ($ 1,086 par, due 8/2026 )
Payroc Buyer, LLC
Promissory Note ($ 6,000 par, due 9/2030 )
TS Imagine, Inc. (3)(5)
First-lien loan ($ 54,960 par, due 4/2027 )
SOFR + 5.85 %
First-lien revolving loan ($ 899 par, due 5/2027 )
Volante Technologies, Inc.
First-lien loan ($ 3,619 par, due 9/2028 )
16.50 % PIK
Healthcare
Aledade, Inc. (3)
First-lien revolving loan ($ 10,864 par, due 11/2028 )
SOFR + 5.75 %
BCTO Ace Purchaser, Inc. (3)
First-lien loan ($ 69,942 par, due 11/2029 )
SOFR + 6.50 %
Second-lien loan ($ 7,665 par, due 1/2030 )
SOFR + 10.70 %
15.02 % PIK
Eventus Buyer, LLC (3)
First-lien loan ($ 25,706 par, due 11/2030 )
SOFR + 5.50 %
First-lien revolving loan ($ 1,867 par, due 11/2030 )
SOFR + 5.50 %
HMP Omnimedia, LLC (3)
First-lien loan ($ 19,723 par, due 7/2032 )
SOFR + 5.25 %
First-lien revolving loan ($ 409 par, due 7/2030 )
Ingenovis Health Finance, LLC (3)
First-lien revolving loan ($ 32,500 par, due 5/2030 )
SOFR + 6.00 %
LIHA Holdco B.V. (3)(4)(5)
First-lien loan (EUR 5,903 par, due 2/2029 )
(EUR 5,951 )
First-lien revolving loan (EUR 318 par, due 2/2029 )
(EUR 321 )
Raptor US Buyer II Corp. (3)(5)
First-lien loan ($ 17,949 par, due 3/2029 )
SOFR + 6.25 %
First-lien revolving loan ($ 82 par, due 3/2029 )
SOFR + 6.25 %
Symplr Software Inc. (3)(9)
First-lien loan ($ 635 par, due 12/2027 )
SOFR + 4.60 %
Velocity Clinical Research, Inc. (3)
First-lien loan ($ 62,899 par, due 9/2031 )
SOFR + 7.50 %
First-lien revolving loan ($ 528 par, due 9/2031 )
SOFR + 7.50 %
Hotel, Gaming and Leisure
ASG II, LLC (3)(5)
First-lien loan ($ 65,000 par, due 5/2028 )
SOFR + 6.40 %
AVSC Holding Corp. (3)
First-lien loan ($ 44,828 par, due 12/2031 )
SOFR + 5.00 %
Equinox Holdings, Inc.
First-lien loan ($ 51,697 par, due 3/2029 ) (3)
SOFR + 8.25 %
11.92 % (incl. 4.13 % PIK)
Second-lien loan ($ 2,746 par, due 6/2027 )
16.00 % PIK
IRGSE Holding Corp. (3)(6)
First-lien loan ($ 30,261 par, due 6/2026 )
SOFR + 9.65 %
First-lien revolving loan ($ 27,943 par, due 6/2026 )
SOFR + 9.65 %
Sport Alliance GmbH (3)(4)
First-lien loan (EUR 37,133 par, due 4/2030 )
9.77 % (incl. 4.13 % PIK)
(EUR 37,041 )
First-lien revolving loan (EUR 208 par, due 4/2030 )
(EUR 218 )
Human Resource Support Services
Axonify, Inc. (3)(4)(5)
First-lien loan ($ 45,113 par, due 5/2027 )
SOFR + 6.65 %
bswift, LLC (3)(5)
First-lien loan ($ 54,630 par, due 11/2028 )
SOFR + 4.75 %
Elysian Finco Ltd. (3)(4)(5)
First-lien loan ($ 21,745 par, due 1/2028 )
SOFR + 5.15 %
First-lien revolving loan (GBP 1,055 par, due 1/2028 )
(GBP 1,027 )
HireVue, Inc. (3)
First-lien loan ($ 53,031 par, due 5/2029 )
SOFR + 6.75 %
First-lien revolving loan ($ 6,887 par, due 5/2029 )
SOFR + 6.75 %
Madcap Software, Inc. (3)(5)
First-lien loan ($ 31,850 par, due 12/2026 )
SOFR + 6.10 %
PayScale Holdings, Inc. (3)(5)
First-lien loan ($ 74,916 par, due 10/2029 )
SOFR + 5.25 %
Internet Services
Arrow Buyer, Inc. (3)
First-lien loan ($ 36,651 par, due 7/2030 )
SOFR + 5.00 %
Bayshore Intermediate #2, L.P. (3)
First-lien loan ($ 42,190 par, due 10/2028 )
SOFR + 5.50 %
9.19 % (incl. 3.00 % PIK)
First-lien revolving loan ($ 902 par, due 10/2027 )
SOFR + 5.00 %
Big Wombat Holdings, Inc. (3)(5)
First-lien loan ($ 47,188 par, due 4/2031 )
SOFR + 7.00 %
Coupa Holdings, LLC (3)
First-lien loan ($ 42,543 par, due 2/2030 )
SOFR + 5.25 %
EDB Parent, LLC (3)(5)
First-lien loan ($ 76,729 par, due 7/2028 )
SOFR + 7.00 %
Flight Intermediate HoldCo, Inc.
First-lien loan ($ 40,000 par, due 4/2030 )
Hippo XPA Bidco AB (3)(4)
First-lien loan (SEK 214,115 par, due 2/2031 )
STIBOR + 6.75 %
8.60 % (incl. 3.63 % PIK)
(SEK 214,115 )
First-lien loan (EUR 2,571 par, due 2/2031 )
8.77 % (incl. 3.63 % PIK)
(EUR 2,571 )
First-lien revolving loan (SEK 3,906 par, due 2/2031 )
STIBOR + 6.25 %
(SEK 3,906 )
Kaseware Intermediate Holding Company (3)(5)
First-lien loan ($ 43,251 par, due 10/2031 )
SOFR + 5.50 %
Khoros, LLC
First-lien loan ($ 11,682 par, due 5/2030 )
Kryptona BidCo US, LLC (3)
First-lien loan ($ 20,595 par, due 12/2031 )
SOFR + 6.00 %
9.70 % (incl. 3.25 % PIK)
First-lien loan (EUR 4,766 par, due 12/2031 )
8.06 % (incl. 3.25 % PIK)
(EUR 4, 802 )
LeanTaaS Holdings, Inc. (3)(5)
First-lien loan ($ 62,984 par, due 7/2028 )
SOFR + 7.75 %
RainFocus, LLC (3)(5)
First-lien loan ($ 64,232 par, due 4/2031 )
SOFR + 6.38 %
SMA Technologies Holdings, LLC (3)(5)
First-lien loan ($ 55,579 par, due 10/2028 )
SOFR + 6.50 %
Manufacturing
Arcwood Environmental, Inc. (3)
First-lien loan ($ 12,160 par, due 1/2031 )
SOFR + 5.25 %
First-lien loan ($ 3,764 par, due 1/2031 )
SOFR + 5.00 %
ASP Unifrax Holdings, Inc. (9)
First-lien loan ($ 3,619 par, due 9/2029 ) (3)
SOFR + 7.75 %
11.75 % (incl. 4.75 % PIK)
Second-lien note ($ 2,024 par, due 9/2029 ) (14)
7.10 % (incl. 1.25 % PIK)
Varinem German BidCo GMBH (3)(4)
First-lien loan (EUR 12,696 par, due 7/2031 )
(EUR 12,855 )
First-lien loan (EUR 4,392 par, due 7/2031 )
(EUR 4,392 )
Office Products
USR Parent, Inc. (3)(5)
ABL FILO term loan ($ 9,809 par, due 4/2027 )
SOFR + 6.50 %
Oil, Gas and Consumable Fuels
Laramie Energy, LLC (3)
First-lien loan ($ 27,317 par, due 2/2027 )
SOFR + 7.10 %
TRP Assets, LLC (3)
First-lien loan ($ 54,834 par, due 12/2029 )
SOFR + 7.00 %
Other
Boréal Bidco (3)(4)
First-lien note (EUR 13,605 par, due 3/2032 )
9.27 % (incl. 5.75 % PIK)
(EUR 13,503 )
Kahua, Inc. (3)
First-lien loan ($ 25,000 par, due 8/2030 )
SOFR + 6.00 %
Omnigo Software, LLC (3)
First-lien loan ($ 13,125 par, due 12/2030 )
SOFR + 5.00 %
Scorpio Bidco (3)(4)
First-lien loan (EUR 2,511 par, due 4/2031 )
(EUR 2,526 )
Sediver S.p.A. (3)(4)
First-lien note (EUR 6,368 par, due 10/2031 )
(EUR 6,368 )
First-lien note ($ 14,085 par, due 10/2031 )
SOFR + 5.00 %
Pharmaceuticals
Apellis Pharmaceuticals, Inc. (3)(4)
First-lien loan ($ 19,737 par, due 5/2030 )
SOFR + 5.75 %
Arrowhead Pharmaceuticals, Inc. (4)
First-lien loan ($ 26,873 par, due 8/2031 )
Elysium BidCo Limited (3)(4)
First-lien loan (EUR 17,985 par, due 12/2030 )
(EUR 17,805 )
First-lien loan (GBP 9,953 par, due 12/2030 )
(GBP 9,878 )
Real Estate
Cirrus (BidCo) Limited (3)(4)(5)
First-lien loan (GBP 698 par, due 8/2030 )
(GBP 698 )
Retail and Consumer Products
Acosta (3)(9)
First-lien loan ($ 13,890 par, due 8/2031 )
SOFR + 5.60 %
American Achievement, Corp. (3)(14)
First-lien loan ($ 26,664 par, due 9/2026 )
SOFR + 7.35 %
11.22 % (incl. 10.72 % PIK)
First-lien loan ($ 1,327 par, due 9/2026 )
SOFR + 15.10 %
18.97 % (incl. 18.47 % PIK)
Subordinated note ($ 4,740 par, due 9/2026 )
SOFR + 1.15 %
Bed Bath and Beyond Inc. (3)(15)
ABL FILO term loan ($ 5,910 par, due 8/2027 )
SOFR + 9.90 %
Roll Up DIP term loan ($ 25,255 par)
SOFR + 7.90 %
11.62 % PIK
Super-Priority DIP term loan ($ 3,575 par)
SOFR + 7.90 %
Belk, Inc. (3)
First-lien loan ($ 46,875 par, due 7/2029 )
SOFR + 7.00 %
Blazing Star Parent, LLC (3)
First-lien loan ($ 69,563 par, due 8/2030 )
SOFR + 7.00 %
Cordance Operations, LLC (3)
First-lien loan ($ 64,906 par, due 7/2028 )
SOFR + 8.65 %
Neuintel, LLC (3)(5)
First-lien loan ($ 53,926 par, due 12/2026 )
SOFR + 6.85 %
PDI TA Holdings, Inc. (3)
First-lien loan ($ 20,284 par, due 2/2031 )
SOFR + 5.50 %
First-lien revolving loan ($ 1,203 par, due 2/2031 )
SOFR + 5.50 %
Rapid Data GmbH Unternehmensberatung (3)(4)
First-lien loan (EUR 7,546 par, due 7/2029 )
(EUR 7,546 )
First-lien revolving loan (EUR 328 par, due 6/2029 )
(EUR 328 )
Tango Management Consulting, LLC (3)(5)
First-lien loan ($ 49,169 par, due 6/2031 )
SOFR + 6.50 %
Transportation
Ben Nevis Midco Limited (3)(4)
First-lien loan ($ 5,000 par, due 3/2028 )
SOFR + 5.50 %
Marcura Equities LTD (3)(4)
First-lien loan ($ 41,520 par, due 8/2029 )
SOFR + 8.25 %
11.92 % (incl. 4.25 % PIK)
First-lien loan (GBP 1,107 par, due 8/2029 )
11.98 % (incl. 4.25 % PIK)
(GBP 1,115 )
First-lien revolving loan ($ 1,667 par, due 8/2029 )
SOFR + 7.50 %
Project44, Inc. (3)(5)
First-lien loan ($ 54,549 par, due 11/2027 )
SOFR + 6.35 %
Rail Acquisitions LLC
First-lien loan ($ 25,217 par, due 1/2030 ) (3)
SOFR + 6.00 %
Second-lien note ($ 21,423 par, due 1/2031 )
13.75 % PIK
Ranger Intermediate II, LLC (3)
First-lien loan ($ 69,361 par, due 10/2031 )
SOFR + 5.50 %
Shiftmove GMBH (3)(4)(5)
First-lien loan (EUR 36,338 par, due 9/2030 )
(EUR 36,450 )
Total Debt Investments
Equity and Other Investments
Business Services
Artisan Topco LP (11)
Class A Preferred Units ( 2,117,264 units)
Dye & Durham, Ltd. (4)
Common Shares ( 126,968 shares)
(CAD 386 )
Insight Hideaway Aggregator, L.P. (11)
Partnership Interest ( 329,861 units)
Mitnick TA Aggregator, L.P. (11)
Membership Interest ( 0.43 % ownership)
Newark FP Co-Invest, L.P. (11)
Partnership ( 2,527,719 units)
Sprinklr, Inc. (10)(11)
Common Shares ( 283,499 shares)
Warrior TopCo LP (11)
Class A Units ( 423,729 units)
Communications
Celtra Technologies, Inc. (11)
Class A Units ( 1,250,000 units)
IntelePeer Holdings, Inc. (11)
Series C Preferred Shares ( 1,816,295 shares)
Series D Preferred Shares ( 1,598,874 shares)
Series D Warrants ( 106,592 warrants)
Education
Astra 2L Holdings II LLC (11)
Membership Interest ( 10.17 % ownership)
EMS Linq, Inc. (11)
Class B Units ( 5,522,526 units)
Financial Services
AF Eagle Parent, L.P. (11)
Partnership Units ( 121,329 units)
Newport Parent Holdings, L.P. (11)
Class A-2 Units ( 131,569 units)
Oxford Square Capital Corp. (4)(10)
Common Shares ( 1,620 shares)
Passport Labs, Inc. (11)
Warrants ( 17,534 warrants)
TS Imagine, Inc. (13)
Class A Units ( 600,000 units) (11)
Class AA Units ( 19,093 units)
Healthcare
Caris Life Sciences, Inc. (10)(11)
Common Shares ( 962,195 shares)
Merative Topco L.P. (11)
Class A-1 Units ( 989,691 units)
Raptor US Buyer II Corp. (11)
Ordinary Shares ( 13,176 shares)
Hotel, Gaming and Leisure
IRGSE Holding Corp. (6)(11)
Class A Units ( 50,140,171 units)
Class C-1 Units ( 8,800,000 units)
Human Resource Support Services
Axonify, Inc. (4)(11)(13)
Class A-1 Units ( 3,780,000 units)
bswift, LLC
Class A-1 Units ( 2,393,509 units)
DaySmart Holdings, LLC (11)
Class A Units ( 166,811 units)
Employment Hero Holdings Pty Ltd. (4)(11)
Series E Preferred Shares ( 113,250 shares)
(AUD 6,120 )
Internet Services
Bayshore Intermediate #2, L.P. (11)(13)
Co-Invest Common Units ( 8,837,008 units)
Co-Invest 2 Common Units ( 3,493,701 units)
Bigtincan Holdings L.P. (11)(12)
Class A Units ( 2,902,890 units)
Khoros, LLC (12)(13)
Earnout Interests
Lucidworks, Inc. (11)
Series F Preferred Shares ( 199,054 shares)
Piano Software, Inc. (11)
Series C-1 Preferred Shares ( 418,527 shares)
Series C-2 Preferred Shares ( 27,588 shares)
SMA Technologies Holdings, LLC (11)
Class A Units ( 1,584 units)
Class B Units ( 1,124,813 units)
Marketing Services
Validity, Inc. (11)
Series A Preferred Shares ( 3,840,000 shares)
Oil, Gas and Consumable Fuels
Murchison Oil and Gas, LLC (11)(13)
Preferred Units ( 13,355 units)
TRP Assets, LLC (11)(13)
Partnership Interest ( 1.89 % ownership)
Pharmaceuticals
TherapeuticsMD, Inc. (4)(11)
Warrants ( 14,256 warrants)
Elysium BidCo Limited (4)(11)
Convertible Preference Shares ( 4,976,563 Shares)
(GBP 5,636 )
Retail and Consumer Products
American Achievement, Corp. (11)
Class A Units ( 687 units)
Copper Bidco, LLC (9)
Trust Certificates ( 996,958 Certificates)
Neuintel, LLC (11)(13)
Class A Units ( 1,176,494 units)
Transportation
RailTrac Holdings Inc. (11)(12)
Warrants ( 3,059 warrants)
Ranger Parent I, Inc. (12)
Series A-1 Preferred Shares ( 5,639 Shares)
14.50 % PIK
Warrants ( 3,841 warrants) (11)
Total Equity Investments
Other Investments
Apidos CLO, Series 2015-23A (3)(4)(9)
Structured Credit ($ 4,000 par, due 4/2033 )
SOFR + 5.20 %
Ares CLO Ltd, Series 2022-63A (3)(4)(9)
Structured Credit ($ 2,500 par, due 10/2038 )
SOFR + 6.00 %
Ares CLO Ltd, Series 2022-64A (3)(4)(9)
Structured Credit ($ 2,000 par, due 10/2039 )
SOFR + 6.50 %
Ares CLO Ltd, Series 2024-72A (3)(4)(9)
Structured Credit ($ 3,500 par, due 7/2036 )
SOFR + 6.00 %
Benefit Street Partners CLO Ltd, Series 2025-39A (3)(4)(9)
Structured Credit ($ 1,725 par, due 4/2038 )
SOFR + 4.50 %
Birch Grove CLO Ltd, Series 2025-14A (3)(4)(9)
Structured Credit ($ 1,250 par, due 7/2037 )
SOFR + 6.65 %
Canyon CLO Ltd, Series 2025-1A (3)(4)(9)
Structured Credit ($ 1,125 par, due 4/2038 )
SOFR + 4.75 %
Carlyle US CLO Ltd, Series 2017-2A (3)(4)(9)
Structured Credit ($ 2,500 par, due 7/2037 )
SOFR + 7.56 %
Carlyle US CLO Ltd, Series 2021-1A (3)(4)(9)
Structured Credit ($ 3,225 par, due 1/2040 )
SOFR + 7.30 %
CarVal CLO Ltd, Series 2021-2A (3)(4)(9)
Structured Credit ($ 2,000 par, due 10/2034 )
SOFR + 7.01 %
CarVal CLO Ltd, Series 2023-1A (3)(4)(9)
Structured Credit ($ 3,000 par, due 7/2037 )
SOFR + 6.35 %
CIFC Funding Ltd, Series 2020-4A (3)(4)(9)
Structured Credit ($ 4,000 par, due 1/2040 )
SOFR + 4.90 %
CIFC Funding Ltd, Series 2021-7A (3)(4)(9)
Structured Credit ($ 2,800 par, due 1/2035 )
SOFR + 4.90 %
CIFC Funding Ltd, Series 2022-4A (3)(4)(9)
Structured Credit ($ 3,000 par, due 7/2035 )
SOFR + 5.25 %
Diameter Capital CLO Ltd, Series 2025-9A (3)(4)(9)
Structured Credit ($ 3,500 par, due 4/2038 )
SOFR + 4.70 %
Goldentree Loan Management US CLO Ltd, Series 2022-16A (3)(4)(9)
Structured Credit ($ 5,000 par, due 1/2038 )
SOFR + 4.50 %
Goldentree Loan Management US CLO Ltd, Series 2023-17A (3)(4)(9)
Structured Credit ($ 3,000 par, due 1/2039 )
SOFR + 5.40 %
Lake George Park CLO Ltd, Series 2025-1A (3)(4)(9)
Structured Credit ($ 4,500 par, due 4/2038 )
SOFR + 4.60 %
Madison Park Funding Ltd, Series 2025-65A (3)(4)(9)
Structured Credit ($ 4,400 par, due 7/2038 )
SOFR + 5.00 %
Madison Park Funding Ltd, Series 2025-72A (3)(4)(9)
Structured Credit ($ 4,500 par, due 7/2038 )
SOFR + 5.25 %
Neuberger Berman CLO Ltd, Series 2017-16SA (3)(4)(9)
Structured Credit ($ 4,000 par, due 4/2039 )
SOFR + 4.90 %
Neuberger Berman CLO Ltd, Series 2015-20A (3)(4)(9)
Structured Credit ($ 1,150 par, due 4/2039 )
SOFR + 4.75 %
Neuberger Berman Loan Advisers CLO Ltd, Series 2017-24A (3)(4)(9)
Structured Credit ($ 1,000 par, due 10/2038 )
SOFR + 7.00 %
Neuberger Berman Loan Advisers CLO Ltd, Series 2019-33A (3)(4)(9)
Structured Credit ($ 2,000 par, due 4/2039 )
SOFR + 5.50 %
Neuberger Berman Loan Advisers CLO Ltd, Series 2021-44A (3)(4)(9)
Structured Credit ($ 1,000 par, due 10/2035 )
SOFR + 5.15 %
Oaktree CLO Ltd, Series 2022-2A (3)(4)(9)
Structured Credit ($ 3,500 par, due 10/2037 )
SOFR + 6.40 %
Octagon 67 Ltd, Series 2023-1A (3)(4)(9)
Structured Credit ($ 3,000 par, due 7/2038 )
SOFR + 7.41 %
Oha Credit Funding Ltd, Series 2025-22A (3)(4)(9)
Structured Credit ($ 1,250 par, due 7/2038 )
SOFR + 5.55 %
Palmer Square CLO Ltd, Series 2021-4 (3)(4)(9)
Structured Credit ($ 4,000 par, due 7/2038 )
SOFR + 5.75 %
Palmer Square CLO Ltd, Series 2025-1A (3)(4)(9)
Structured Credit ($ 2,250 par, due 4/2038 )
SOFR + 4.50 %
Pikes Peak CLO Ltd, Series 2023-14A (3)(4)(9)
Structured Credit ($ 3,000 par, due 7/2038 )
SOFR + 6.00 %
Regatta Funding Ltd, Series 2020-1A (3)(4)(9)
Structured Credit ($ 1,000 par, due 10/2037 )
SOFR + 6.50 %
Riverbank Park CLO Ltd, Series 2024-1A (3)(4)(9)
Structured Credit ($ 4,500 par, due 1/2038 )
SOFR + 4.80 %
RR Ltd, Series 2021-19A (3)(4)(9)
Structured Credit ($ 1,000 par, due 4/2040 )
SOFR + 4.70 %
Texas Debt Capital CLO Ltd, Series 2023-1A (3)(4)(9)
Structured Credit ($ 2,000 par, due 7/2038 )
SOFR + 4.95 %
Whitebox CLO Ltd, Series 2023-4A (3)(4)(9)
Structured Credit ($ 1,500 par, due 4/2036 )
SOFR + 6.48 %
Total Other Investments
Total Equity and Other Investments
Total Investments
Interest Rate Swaps as of December 31, 2025
Company
Receives
Company
Pays
Maturity Date
Notional
Amount
Fair
Market
Value
Upfront
(Payments) /
Receipts
Change in
Unrealized
Gains / (Losses)
Interest rate swap (a)(b)
SOFR + 2.17 %
Interest rate swap (a)(b)
SOFR + 2.99 %
Interest rate swap (a)(b)
SOFR + 2.44 %
Interest rate swap (a)(b)
SOFR + 1.53 %
Total Hedge Accounting Swaps
Cash collateral
Total derivatives
Contains a variable rate structure. Bears interest at a rate determined by SOFR.
Instrument is used in a hedge accounting relationship. The associated change in fair value is recorded along with the change in fair value of the hedged item within interest expense.
Certain portfolio company investments are subject to contractual restrictions on sales.
The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
Investment contains a variable rate structure, subject to an interest rate floor. Variable rate investments bear interest at a rate that may be determined by reference to either Euro Interbank Offer Rate (“Euribor” or “E”), Sterling Overnight Index Average (“SONIA”), Secured Overnight Financing Rate (“SOFR”) which may also contain a credit spread adjustment depending on the tenor election, Stockholm Interbank Offered Rate (“STIBOR”), Norwegian Interbank Offered Rate (“NIBOR” or “N”) or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate or “P”), all of which include an available tenor, selected at the borrower’s option, which reset periodically based on the terms of the credit agreement. For investments with multiple interest rate contracts, the interest rate shown is the weighted average interest rate in effect at December 31, 2025 .
This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70 % of total assets. Non-qualifying assets represented 19.9 % of total assets as of December 31, 2025 .
In addition to the interest earned based on the stated interest rate of this investment, which is the amount reflected in this schedule, the Company may be entitled to receive additional interest as a result of an arrangement with other members in the syndicate to the extent an investment has been allocated to “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any amounts due thereunder and the Company holds the “last out” tranche.
Under the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control,” as such terms are defined in the 1940 Act, this portfolio company, as the Company owns more than 25 % of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). Transactions during the year ended December 31, 2025 in which the issuer was an Affiliated Person of and was deemed to Control a portfolio company are as follows:
Controlled, Affiliated Investments during the year ended December 31, 2025
Company
Fair
Value at
December 31,
Gross
Additions (a)
Gross
Reductions (b)
Net Change
In Unrealized
Gain/(Loss)
Realized
Gain/(Loss)
Transfers
Fair
Value at
December 31,
Other
Income
Interest
Income
IRGSE Holding Corp.
Total
Gross additions include increases in the cost basis of investments resulting from new investments, payment-in-kind interest or dividends, the amortization of any unearned income or discounts on debt investments, as applicable.
Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, and the amortization of any premiums on debt investments, as applicable. When an investment is placed on non-accrual status, any cash flows received by the Company are applied to the outstanding principal balance.
As of December 31, 2025, the estimated cost basis of investments for U.S. federal tax purposes was $ 3,332,367 resulting in estimated gross unrealized gains and losses of $ 219,540 and $ 231,975 , respectively.
In accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements (“ASC Topic 820”), unless otherwise indicated, the fair values of all investments were determined using significant unobservable inputs and are considered Level 3 investments. See Note 6 for further information related to investments at fair value.
This investment is valued using observable inputs and is considered a Level 2 investment. See Note 6 for further information related to investments at fair value.
This investment is valued using observable inputs and is considered a Level 1 investment. See Note 6 for further information related to investments at fair value.
This investment is non-income producing.
All or a portion of this security was acquired in a transaction exempt from registration under the Securities Act of 1933, and may be deemed to be “restricted securities” under the Securities Act. As of December 31, 2025, the aggregate fair value of these securities is $ 18,527 , or 1.2 % of the Company’s net assets.
Ownership of equity investments may occur through a holding company or partnership.
Investment is on non-accrual status as of December 31, 2025 .
In addition to the principal amount outstanding and accrued interest owed on this investment, the Company is entitled to a separate Make-Whole Amount (the “Make-Whole”) of $ 15.9 million. The Make-Whole is a contractual obligation of the borrower and accrues interest on the balance outstanding. The Make-Whole is included on the Company’s Consolidated Balance Sheet within other assets, net of any valuation allowance. Given uncertainty relating to collectability of the Make-Whole, the Company has applied a full valuation allowance against the amount of the Make-Whole balance outstanding.
The accompanying notes are an integral part of these consolidated financial statements.
Sixth Street Specialty Lending, Inc.
Consolidated Schedule of Investments as of December 31, 2024
(Amounts in thousands, except share amounts)
Company (1)
Investment
Initial
Acquisition
Date
Reference
Rate and
Spread
Interest Rate
Amortized
Cost (2)(7)
Fair Value (8)
Percentage
of Net Assets
Debt Investments
Automotive
Truck-Lite Co., LLC (3)
First-lien loan ($ 40,134 par, due 2/2031 )
SOFR + 5.75 %
Business Services
Alpha Midco, Inc. (3)(5)
First-lien loan ($ 69,624 par, due 8/2028 )
SOFR + 6.88 %
Artisan Bidco, Inc. (3)
First-lien loan ($ 38,830 par, due 11/2029 )
SOFR + 7.00 %
First-lien loan (EUR 17,558 par, due 11/2029 )
(EUR 17,558 )
Azurite Intermediate Holdings, Inc. (3)
First-lien loan ($ 42,750 par, due 3/2031 )
SOFR + 6.50 %
BCTO Ignition Purchaser, Inc. (3)
First-lien holdco loan ($ 36,231 par, due 10/2030 )
SOFR + 8.50 %
13.13 % PIK
Crewline Buyer, Inc. (3)
First-lien loan ($ 58,384 par, due 11/2030 )
SOFR + 6.75 %
Dye & Durham Corp. (3)(4)(9)
First-lien loan ($ 955 par, due 4/2031 )
SOFR + 4.10 %
Elements Finco Limited (3)(4)
First-lien loan ($ 4,069 par, due 4/2031 )
SOFR + 4.97 %
9.33 % (incl. 1.97 % PIK)
First-lien loan (GBP 10,275 par, due 4/2031 )
9.95 % (incl. 2.25 % PIK)
(GBP 10,275 )
ExtraHop Networks, Inc. (3)(5)
First-lien loan ($ 74,616 par, due 7/2027 )
SOFR + 7.60 %
ForeScout Technologies, Inc. (3)
First-lien loan ($ 5,597 par, due 5/2031 )
SOFR + 5.00 %
Galileo Parent, Inc. (3)
First-lien loan ($ 64,093 par, due 5/2030 )
SOFR + 5.75 %
First-lien revolving loan ($ 4,615 par, due 5/2030 )
SOFR + 5.75 %
Lynx BidCo (3)(4)
First-lien loan ($ 1,421 par, due 7/2031 )
SOFR + 7.11 %
11.7 5% (incl. 5.61 % PIK)
First-lien loan (EUR 597 par, due 7/2031 )
10.38 % (incl. 5.61 % PIK)
(EUR 590 )
Mitnick Corporate Purchaser, Inc. (3)(9)
First-lien loan ($ 326 par, due 5/2029 )
SOFR + 4.50 %
Price Fx Inc. (3)(4)
First-lien loan (EUR 910 par, due 10/2029 )
(EUR 915 )
First-lien loan (EUR 910 par, due 10/2029 )
(EUR 887 )
USA DeBusk, LLC (3)
First-lien loan ($ 6,899 par, due 4/2031 )
SOFR + 5.25 %
First-lien revolving loan ($ 275 par, due 4/2030 )
SOFR + 5.25 %
Wrangler TopCo, LLC (3)
First-lien loan ($ 5,484 par, due 9/2029 )
SOFR + 6.00 %
Chemicals
Erling Lux Bidco SARL (3)(4)
First-lien loan (EUR 7,239 par, due 9/2028 )
(EUR 7,388 )
First-lien loan (GBP 19,591 par, due 9/2028 )
(GBP 19,885 )
First-lien loan (NOK 7,428 par, due 9/2028 )
(NOK 7,538 )
Communications
Aurelia Netherlands MidCo 2 B.V. (3)(4)
First-lien loan (EUR 32,904 par, due 5/2031 )
(EUR 32,986 )
Babylon Finco Limited (3)(4)
First-lien loan ($ 1,557 par, due 1/2031 )
SOFR + 5.75 %
Banyan Software Holdings, LLC (3)(4)
First-lien loan ($ 39,386 par, due 10/2026 )
SOFR + 7.35 %
First-lien loan ($ 16,045 par, due 10/2026 )
SOFR + 6.25 %
Celtra Technologies, Inc. (3)(5)
First-lien loan ($ 26,437 par, due 11/2026 )
SOFR + 5.75 %
Education
Astra Acquisition Corp. (3)(14)
Second-lien loan ($ 40,302 par, due 10/2029 )
SOFR + 9.14 %
Destiny Solutions Parent Holding Company (3)(5)
First-lien loan ($ 58,950 par, due 6/2026 )
SOFR + 5.60 %
EMS Linq, Inc. (3)
First-lien loan ($ 56,216 par, due 12/2027 )
SOFR + 6.35 %
First-lien revolving loan ($ 4,216 par, due 12/2027 )
SOFR + 6.35 %
Kangaroo Bidco AS (3)(4)
First-lien loan ($ 30,625 par, due 11/2030 )
SOFR + 6.25 %
Severin Acquisition, LLC (3)
First-lien loan ($ 15,046 par, due 10/2031 )
SOFR + 5.00 %
9.36 % (incl. 2.25 % PIK)
Electronics
Sapphire Software Buyer, Inc. (3)
First-lien loan ($ 26,962 par, due 9/2031 )
SOFR + 5.50 %
9.75 % (incl. 3.0 % PIK)
Financial Services
Alaska Bidco Oy (3)(4)
First-lien loan (EUR 727 par, due 5/2030 )
(EUR 739 )
BCTO Bluebill Buyer, Inc. (3)(5)
First-lien loan ($ 29,532 par, due 7/2029 )
SOFR + 6.25 %
BlueSnap, Inc. (3)(5)
First-lien loan ($ 45,106 par, due 8/2025 )
SOFR + 9.15 %
BTRS Holdings, Inc. (3)
First-lien loan ($ 48,983 par, due 12/2028 )
SOFR + 7.25 %
First-lien revolving loan ($ 1,807 par, due 12/2028 )
SOFR + 7.25 %
CLGF Holdco 2, LLC (3)(4)
First-lien loan ($ 3,916 par, due 11/2027 )
SOFR + 8.50 %
Second-lien loan ($ 3,357 par, due 11/2028 )
SOFR + 12.00 %
Fullsteam Operations, LLC (3)
First-lien loan ($ 40,048 par, due 11/2029 )
SOFR + 8.38 %
GreenShoot BidCo B.V (3)(4)
First-lien loan (EUR 5,107 par, due 5/2030 )
(EUR 5,066 )
Ibis Intermediate Co. (3)(5)
First-lien loan ($ 1,185 par, due 5/2027 )
SOFR + 4.65 %
Ibis US Blocker Co. (3)
First-lien loan ($ 18,290 par, due 5/2028 )
SOFR + 8.40 %
12.91 % PIK
Passport Labs, Inc.
First-lien loan ($ 24,995 , par, due 4/2026 ) (3)
SOFR + 8.40 %
Convertible Promissory Note A ($ 1,086 par, due 8/2026 )
TradingScreen, Inc. (3)(5)
First-lien loan ($ 55,528 par, due 4/2027 )
SOFR + 6.35 %
First-lien revolving loan ($ 899 par, due 5/2027 )
Volante Technologies, Inc.
First-lien loan ($ 3,072 par, due 9/2028 )
16.50 % PIK
Healthcare
BCTO Ace Purchaser, Inc. (3)
First-lien loan ($ 70,154 par, due 11/2029 )
SOFR + 6.50 %
Second-lien loan ($ 6,596 par, due 1/2030 )
SOFR + 10.70 %
15.33 % PIK
Edge Bidco B.V. (3)(4)(5)
First-lien loan (EUR 5,947 par, due 2/2029 )
(EUR 6,068 )
Eventus Buyer, LLC (3)
First-lien loan ($ 25,900 par, due 11/2030 )
SOFR + 5.50 %
First-lien revolving loan ($ 467 par, due 11/2030 )
SOFR + 5.50 %
Merative L.P. (3)(5)
First-lien loan ($ 70,103 par, due 6/2028 )
SOFR + 7.25 %
Raptor US Buyer II Corp. (3)(5)
First-lien loan ($ 18,133 par, due 3/2029 )
SOFR + 6.25 %
SL Buyer Corp. (3)(5)
First-lien loan ($ 33,416 par, due 7/2029 )
SOFR + 7.75 %
Hotel, Gaming and Leisure
ASG II, LLC (3)(5)
First-lien loan ($ 65,000 par, due 5/2028 )
SOFR + 6.40 %
AVSC Holding Corp. (3)
First-lien loan ($ 45,167 par, due 12/2031 )
SOFR + 5.00 %
Equinox Holdings, Inc.
First-lien loan ($ 49,590 par, due 3/2029 ) (3)
SOFR + 8.25 %
12.58 % (incl. 4.13 % PIK)
Second-lien loan ($ 2,347 par, due 6/2027 )
16.00 % PIK
IRGSE Holding Corp. (3)(6)
First-lien loan ($ 30,261 par, due 6/2025 )
SOFR + 9.65 %
First-lien revolving loan ($ 37,972 par, due 6/2025 )
SOFR + 9.65 %
QSR Acquisition Co. (3)(5)
First-lien loan ($ 30,000 par, due 10/2030 )
SOFR + 5.25 %
Sport Alliance GmbH (3)(4)
First-lien loan (EUR 4,494 par, due 4/2030 )
10.15 % (incl. 3.88 % PIK)
(EUR 4,443 )
Human Resource Support Services
Axonify, Inc. (3)(4)(5)
First-lien loan ($ 44,419 par, due 5/2026 )
SOFR + 7.65 %
bswift, LLC (3)(5)
First-lien loan ($ 43,910 par, due 11/2028 )
SOFR + 6.38 %
Elysian Finco Ltd. (3)(4)(5)
First-lien loan ($ 21,899 par, due 1/2028 )
SOFR + 6.65 %
First-lien revolving loan (GBP 325 par, due 1/2028 )
(GBP 316 )
Employment Hero Holdings Pty Ltd. (3)(4)
First-lien loan (AUD 60,000 par, due 12/2026 )
(AUD 60,158 )
HireVue, Inc. (3)
First-lien loan ($ 53,572 par, due 5/2029 )
SOFR + 6.75 %
First-lien revolving loan ($ 4,378 par, due 5/2029 )
SOFR + 6.75 %
Madcap Software, Inc. (3)(5)
First-lien loan ($ 32,175 par, due 12/2026 )
SOFR + 6.10 %
PayScale Holdings, Inc. (3)(5)
First-lien loan ($ 70,465 par, due 5/2027 )
SOFR + 5.85 %
PrimePay Intermediate, LLC (3)(5)
First-lien loan ($ 34,025 par, due 12/2026 )
SOFR + 7.15 %
Insurance
Disco Parent, Inc. (3)
First-lien loan ($ 5,319 par, due 3/2029 )
SOFR + 7.50 %
Internet Services
Arrow Buyer, Inc. (3)
First-lien loan ($ 34,944 par, due 7/2030 )
SOFR + 5.75 %
Bayshore Intermediate #2, L.P. (3)
First-lien loan ($ 40,663 par, due 10/2028 )
SOFR + 6.25 %
10.77 % (incl. 3.38 % PIK)
Coupa Holdings, LLC (3)
First-lien loan ($ 42,975 par, due 2/2030 )
SOFR + 5.25 %
CrunchTime Information, Systems, Inc. (3)(5)
First-lien loan ($ 58,898 par, due 6/2028 )
SOFR + 5.75 %
EDB Parent, LLC (3)(5)
First-lien loan ($ 69,873 par, due 7/2028 )
SOFR + 6.75 %
Flight Intermediate HoldCo, Inc.
First-lien loan ($ 40,000 par, due 4/2030 )
Higher Logic, LLC (3)(5)
First-lien loan ($ 50,054 par, due 1/2025 )
SOFR + 6.25 %
Hippo XPA Bidco AB (3)(4)
First-lien loan (SEK 80,225 par, due 2/2031 )
STIBOR + 6.50 %
9.16 % (incl. 3.50 % PIK)
(SEK 79,977 )
First-lien loan (EUR 2,472 par, due 2/2031 )
9.87 % (incl. 3.50 % PIK)
(EUR 2,466 )
Kryptona BidCo US, LLC (3)
First-lien loan ($ 19,912 par, due 12/2031 )
SOFR + 5.75 %
First-lien loan (EUR 4,608 par, due 12/2031 )
(EUR 4,527 )
LeanTaaS Holdings, Inc. (3)(5)
First-lien loan ($ 56,156 par, due 7/2028 )
SOFR + 7.50 %
Lithium Technologies, LLC (3)(14)
First-lien loan ($ 61,483 par, due 1/2025 )
SOFR + 11.00 %
Lucidworks, Inc. (3)(5)
First-lien loan ($ 9,477 par, due 2/2027 )
SOFR + 7.50 %
11.86 % (incl. 3.5 % PIK)
Merit Software Finance Holdings, LLC (3)
First-lien loan ($ 43,214 par, due 6/2029 )
SOFR + 7.50 %
SMA Technologies Holdings, LLC (3)(5)
First-lien loan ($ 53,991 par, due 10/2028 )
SOFR + 6.50 %
Manufacturing
Aptean, Inc. (3)
First-lien loan ($ 8,835 par, due 1/2031 )
SOFR + 5.00 %
ASP Unifrax Holdings, Inc. (9)
First-lien loan ($ 3,449 par, due 9/2029 ) (3)
SOFR + 7.75 %
12.08 % (incl. 4.75 % PIK)
Second-lien note ($ 1,999 par, due 9/2029 )
7.10 % (incl. 1.25 % PIK)
Avalara, Inc. (3)
First-lien loan ($ 38,636 par, due 10/2028 )
SOFR + 6.25 %
Heritage Environmental Services, Inc. (3)
First-lien loan ($ 12,284 par, due 1/2031 )
SOFR + 5.25 %
First-lien loan ($ 1,329 par, due 1/2031 )
SOFR + 5.00 %
Skylark UK DebtCo Limited (3)(4)
First-lien loan ($ 16,340 par, due 9/2030 )
SOFR + 5.66 %
First-lien loan (EUR 4,851 par, due 9/2030 )
(EUR 4,900 )
First-lien loan (GBP 16,640 par, due 9/2030 )
(GBP 16,861 )
Varinem German BidCo GMBH (3)(4)
First-lien loan (EUR 12,696 par, due 7/2031 )
(EUR 12,656 )
Office Products
USR Parent, Inc. (3)(5)
ABL FILO term loan ($ 15,000 par, due 4/2027 )
SOFR + 6.50 %
Oil, Gas and Consumable Fuels
Laramie Energy, LLC (3)
First-lien loan ($ 27,317 par, due 2/2027 )
SOFR + 7.10 %
Mach Natural Resources LP (3)(4)
First-lien loan ($ 4,625 par, due 12/2026 )
SOFR + 6.65 %
TRP Assets, LLC (3)
First-lien loan ($ 54,834 par, due 12/2029 )
SOFR + 7.00 %
Other
Omnigo Software, LLC (3)(5)
First-lien loan ($ 39,533 par, due 3/2027 )
SOFR + 5.50 %
Scorpio Bidco (3)(4)
First-lien loan (EUR 2,511 par, due 4/2031 )
(EUR 2,496 )
Sky Bidco S.p.A. (3)(4)
First-lien note (EUR 6,368 par, due 10/2031 )
(EUR 6,195 )
First-lien note ($ 14,085 par, due 10/2031 )
SOFR + 5.25 %
Pharmaceuticals
Apellis Pharmaceuticals, Inc. (3)(4)
First-lien loan ($ 19,737 par, due 5/2030 )
SOFR + 5.75 %
Arrowhead Pharmaceuticals, Inc. (4)
First-lien loan ($ 33,059 par, due 8/2031 )
Elysium BidCo Limited (3)(4)
First-lien loan (EUR 17,985 par, due 12/2030 )
(EUR 17,580 )
First-lien loan (GBP 9,953 par, due 6/2030 )
(GBP 9,684 )
Real Estate
Cirrus (BidCo) Limited (3)(4)(5)
First-lien loan (GBP 675 par, due 8/2030 )
10.95 % (incl. 3.00 % PIK)
(GBP 667 )
Retail and Consumer Products
Acosta (3)(9)
First-lien loan ($ 10,000 par, due 8/2031 )
SOFR + 5.60 %
American Achievement, Corp. (3)(14)
First-lien loan ($ 26,864 par, due 9/2026 )
SOFR + 7.35 %
11.90 % (incl. 11.40 % PIK)
First-lien loan ($ 1,341 par, due 9/2026 )
SOFR + 15.10 %
19.65 % (incl. 19.15 % PIK)
Subordinated note ($ 4,740 par, due 9/2026 )
SOFR + 1.15 %
Bed Bath and Beyond Inc. (3)(15)
ABL FILO term loan ($ 8,994 par, due 8/2027 )
SOFR + 9.90 %
Roll Up DIP term loan ($ 24,924 par)
SOFR + 7.90 %
12.26 % PIK
Super-Priority DIP term loan ($ 3,988 par)
SOFR + 7.90 %
Belk, Inc. (3)
First-lien loan ($ 49,375 par, due 7/2029 )
SOFR + 7.00 %
Cordance Operations, LLC (3)
First-lien loan ($ 60,781 par, due 7/2028 )
SOFR + 9.25 %
Neuintel, LLC (3)(5)
First-lien loan ($ 55,038 par, due 12/2026 )
SOFR + 6.85 %
PDI TA Holdings, Inc. (3)
First-lien loan ($ 18,133 par, due 2/2031 )
SOFR + 5.50 %
Rapid Data GmbH Unternehmensberatung (3)(4)
First-lien loan (EUR 7,378 par, due 7/2029 )
9.47 % (incl. 3.00 % PIK)
(EUR 7,422 )
Tango Management Consulting, LLC (3)(5)
First-lien loan ($ 69,218 par, due 12/2027 )
SOFR + 6.90 %
First-lien revolving loan ($ 2,454 par, due 12/2027 )
Transportation
Ben Nevis Midco Limited (3)(4)
First-lien loan ($ 3,635 par, due 3/2028 )
SOFR + 5.25 %
Marcura Equities LTD (3)(4)
First-lien loan ($ 33,874 par, due 8/2029 )
SOFR + 7.00 %
First-lien revolving loan ($ 2,333 par, due 8/2029 )
SOFR + 7.00 %
Project44, Inc. (3)(5)
First-lien loan ($ 54,824 par, due 11/2027 )
SOFR + 6.35 %
Shiftmove GMBH (3)(4)(5)
First-lien loan (EUR 31,875 par, due 9/2030 )
(EUR 31,088 )
Total Debt Investments
Equity and Other Investments
Automotive
Clarience Technologies, LLC (11)(12)
Class A Units ( 333 units)
Business Services
Artisan Topco LP (11)
Class A Preferred Units ( 2,117,264 units)
Dye & Durham, Ltd. (4)(10)
Common Shares ( 126,968 shares)
(CAD 2,232 )
Insight Hideaway Aggregator, L.P. (11)(12)
Partnership Interest ( 329,861 units)
Mitnick TA Aggregator, L.P. (11)
Membership Interest ( 0.43 % ownership)
Newark FP Co-Invest, L.P. (11)
Partnership ( 2,527,719 units)
ReliaQuest, LLC (13)
Class A-1 Units ( 637,713 units) (11)
Class A-2 Units ( 10,611 units) (11)(12)
Class A-3 Units ( 16,957 units) (11)
Series A Preferred Stock ( 1,667 units) (3)
SOFR + 12.00 %
16.60 % PIK
Warrants ( 90,634 warrants) (11)
Sprinklr, Inc. (10)(11)
Common Shares ( 283,499 shares)
Warrior TopCo LP
Class A Units ( 423,729 units)
Communications
Celtra Technologies, Inc. (11)
Class A Units ( 1,250,000 units)
IntelePeer Holdings, Inc. (11)
Series C Preferred Shares ( 1,816,295 shares)
Series D Preferred Shares ( 1,598,874 shares)
Series C Warrants ( 280,000 warrants)
Series D Warrants ( 106,592 warrants)
Education
Astra 2L Holdings II LLC (11)
Membership Interest ( 10.17 % ownership)
EMS Linq, Inc. (11)
Class B Units ( 5,522,526 units)
RMCF IV CIV XXXV, LP. (11)
Partnership Interest ( 11.94 % ownership)
Financial Services
AF Eagle Parent, L.P. (11)
Partnership Units ( 121,329 units)
CLGF Holdings, L.P. (4)(11)
Warrants ( 334,682 warrants)
Newport Parent Holdings, L.P. (11)
Class A-2 Units ( 131,569 units)
Oxford Square Capital Corp. (4)(10)
Common Shares ( 1,620 shares)
Passport Labs, Inc. (11)
Warrants ( 17,534 warrants)
TradingScreen, Inc. (13)
Class A Units ( 600,000 units) (11)
Class AA Units ( 19,093 units) (12)
Healthcare
Caris Life Sciences, Inc. (11)
Series C Preferred Shares ( 1,915,114 shares)
Series D Preferred Shares ( 1,240,740 shares)
Warrants ( 633,376 warrants)
Warrants ( 569,991 warrants)
Merative Topco L.P. (11)
Class A-1 Units ( 989,691 units)
Raptor US Buyer II Corp. (11)
Ordinary Shares ( 13,176 shares)
Hotel, Gaming and Leisure
IRGSE Holding Corp. (6)(11)
Class A Units ( 33,790,171 units)
Class C-1 Units ( 8,800,000 units)
Human Resource Support Services
Axonify, Inc. (4)(11)(13)
Class A-1 Units ( 3,780,000 units)
bswift, LLC (11)
Class A-1 Units ( 2,393,509 units)
DaySmart Holdings, LLC (11)
Class A Units ( 166,811 units)
Employment Hero Holdings Pty Ltd. (4)(11)
Series E Preferred Shares ( 113,250 shares)
(AUD 4,552 )
Internet Services
Bayshore Intermediate #2, L.P. (11)(13)
Co-Invest Common Units ( 8,837,008 units)
Co-Invest 2 Common Units ( 3,493,701 units)
Lucidworks, Inc. (11)
Series F Preferred Shares ( 199,054 shares)
Piano Software, Inc. (11)
Series C-1 Preferred Shares ( 418,527 shares)
Series C-2 Preferred Shares ( 27,588 shares)
SMA Technologies Holdings, LLC (11)(12)
Class A Units ( 1,584 units)
Class B Units ( 1,124,813 units)
Marketing Services
Validity, Inc. (11)
Series A Preferred Shares ( 3,840,000 shares)
Oil, Gas and Consumable Fuels
Murchison Oil and Gas, LLC (13)
Preferred Units ( 13,355 units)
TRP Assets, LLC (13)
Partnership Interest ( 1.89 % ownership)
Pharmaceuticals
TherapeuticsMD, Inc. (4)(11)
Warrants ( 14,256 warrants)
Elysium BidCo Limited (4)(11)(12)
Convertible Preference Shares ( 4,976,563 Shares)
(GBP 5,063 )
Retail and Consumer Products
American Achievement, Corp. (11)
Class A Units ( 687 units)
Copper Bidco, LLC (9)
Trust Certificates ( 996,958 Certificates)
Neuintel, LLC (11)(13)
Class A Units ( 1,176,494 units)
Structured Credit
Dryden Senior Loan Fund, Series 2020-86A (3)(4)(9)
Structured Credit ($ 1,500 par, due 7/2034 )
SOFR + 6.76 %
Total Equity and Other Investments
Total Investments
Interest Rate Swaps as of December 31, 2024
Company
Receives
Company
Pays
Maturity Date
Notional
Amount
Fair
Market
Value
Upfront
(Payments) /
Receipts
Change in
Unrealized
Gains / (Losses)
Interest rate swap (a)(b)
SOFR + 2.17 %
Interest rate swap (a)(b)
SOFR + 2.99 %
Interest rate swap (a)(b)
SOFR + 2.44 %
Total Hedge Accounting Swaps
Cash collateral
Total derivatives
Contains a variable rate structure. Bears interest at a rate determined by SOFR.
Instrument is used in a hedge accounting relationship. The associated change in fair value is recorded along with the change in fair value of the hedged item within interest expense.
Certain portfolio company investments are subject to contractual restrictions on sales.
The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
Investment contains a variable rate structure, subject to an interest rate floor. Variable rate investments bear interest at a rate that may be determined by reference to either Euro Interbank Offer Rate (“Euribor” or “E”), Sterling Overnight Index Average (“SONIA”), Secured Overnight Financing Rate (“SOFR”) which may also contain a credit spread adjustment depending on the tenor election, Bank Bill Swap Bid Rate (“BBSY” or “B”), Stockholm Interbank Offered Rate (“STIBOR”), Norwegian Interbank Offered Rate (“NIBOR” or “N”), or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate or “P”), all of which include an available tenor, selected at the borrower’s option, which reset periodically based on the terms of the credit agreement. For investments with multiple interest rate contracts, the interest rate shown is the weighted average interest rate in effect at December 31, 2024.
This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70 % of total assets. Non-qualifying assets represented 16.5 % of total assets as of December 31, 2024.
In addition to the interest earned based on the stated interest rate of this investment, which is the amount reflected in this schedule, the Company may be entitled to receive additional interest as a result of an arrangement with other members in the syndicate to the extent an investment has been allocated to “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any amounts due thereunder and the Company holds the “last out” tranche.
Under the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control,” as such terms are defined in the 1940 Act, this portfolio company, as the Company owns more than 25 % of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). Transactions during the year ended December 31, 2024 in which the issuer was an Affiliated Person of and was deemed to Control a portfolio company are as follows:
Controlled, Affiliated Investments during the year ended December 31, 2024
Company
Fair
Value at
December 31,
Gross
Additions (a)
Gross
Reductions (b)
Net Change
In Unrealized
Gain/(Loss)
Realized
Gain/(Loss)
Transfers
Fair
Value at
December 31,
Other
Income
Interest
Income
IRGSE Holding Corp.
Total
Gross additions include increases in the cost basis of investments resulting from new investments, payment-in-kind interest or dividends, the amortization of any unearned income or discounts on debt investments, as applicable.
Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, and the amortization of any premiums on debt investments, as applicable. When an investment is placed on non-accrual status, any cash flows received by the Company are applied to the outstanding principal balance.
As of December 31, 2024, the estimated cost basis of investments for U.S. federal tax purposes was $ 3,535,963 resulting in estimated gross unrealized gains and losses of $ 207,435 and $ 216,975 , respectively.
In accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements (“ASC Topic 820”), unless otherwise indicated, the fair values of all investments were determined using
significant unobservable inputs and are considered Level 3 investments. See Note 6 for further information related to investments at fair value.
This investment is valued using observable inputs and is considered a Level 2 investment. See Note 6 for further information related to investments at fair value.
This investment is valued using observable inputs and is considered a Level 1 investment. See Note 6 for further information related to investments at fair value.
This investment is non-income producing.
All or a portion of this security was acquired in a transaction exempt from registration under the Securities Act of 1933, and may be deemed to be “restricted securities” under the Securities Act. As of December 31, 2024, the aggregate fair value of these securities is $ 12,926 , or 0.8 % of the Company’s net assets.
Ownership of equity investments may occur through a holding company or partnership.
Investment is on non-accrual status as of December 31, 2024.
In addition to the principal amount outstanding and accrued interest owed on this investment, the Company is entitled to a separate Make-Whole Amount (the “Make-Whole”) of $ 13.7 million. The Make-Whole is a contractual obligation of the borrower and accrues interest on the balance outstanding. The Make-Whole is included on the Company’s Consolidated Balance Sheet within other assets, net of any valuation allowance. Given uncertainty relating to collectability of the Make-Whole, the Company has applied a full valuation allowance against the amount of the Make-Whole balance outstanding.
The accompanying notes are an integral part of these consolidated financial statements.
Sixth Street Specialty Lending, Inc.
C onsolidated Statements of Changes in Net Assets
(Amounts in thousands, except share amounts)
Common Stock
Treasury Stock
Shares
Par
Amount
Shares
Cost
Paid in
Capital in
Excess
of Par
Distributable
Earnings
Total Net
Assets
Balance at December 31, 2022
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 gain (loss) on investments and foreign currency transactions
Increase (decrease) in net assets resulting from capital share transactions:
Issuance of common stock, net of offering and underwriting costs
Dividends to stockholders:
Stock issued in connection with dividend reinvestment plan
Dividends declared from distributable earnings
Tax reclassification of stockholders’ equity in accordance with GAAP (1)
Balance at December 31, 2023
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 gain (loss) on investments and foreign currency transactions
Increase (decrease) in net assets resulting from capital share transactions:
Issuance of common stock, net of offering and underwriting costs
Dividends to stockholders:
Stock issued in connection with dividend reinvestment plan
Dividends declared from distributable earnings
Tax reclassification of stockholders’ equity in accordance with GAAP (1)
Balance at December 31, 2024
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 gain (loss) on investments and foreign currency transactions
Increase (decrease) in net assets resulting from capital share transactions:
Issuance of common stock, net of offering and underwriting costs
Dividends to stockholders:
Stock issued in connection with dividend reinvestment plan
Dividends declared from distributable earnings
Tax reclassification of stockholders’ equity in accordance with GAAP
Balance at December 31, 2025
The Company changed its tax year end from March 31st to December 31st.
The accompanying notes are an integral part of these consolidated financial statements.
Sixth Street Specialty Lending, Inc.
C onsolidated Statements of Cash Flows
(Amounts in thousands)
Year Ended
Year Ended
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
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
Net change in unrealized (gains) losses on foreign currency transactions
Net change in unrealized (gains) losses on interest rate swaps
Net realized (gains) losses on investments
Net realized (gains) losses on foreign currency transactions
Net amortization of discount on investments
Amortization of deferred financing costs
Amortization of discount on debt
Purchases and originations of investments, net
Proceeds from investments, net
Repayments on investments
Paid-in-kind interest
Changes in operating assets and liabilities:
Interest receivable
Interest receivable paid-in-kind
Prepaid expenses and other assets
Management fees payable to affiliate
Incentive fees on net investment income payable to affiliate
Incentive fees on net capital gains accrued to affiliate
Payable to affiliate
Other liabilities
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Financing Activities
Borrowings on debt
Repayments on debt
Deferred financing costs
Proceeds from issuance of common stock, net of offering and
underwriting costs
Dividends paid to stockholders
Net Cash Provided by (Used in) Financing Activities
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
Cash, cash equivalents, and restricted cash, beginning of period
Cash, Cash Equivalents, and Restricted Cash, End of Period
Supplemental Information:
Interest paid during the period
Excise and other taxes paid during the period
Dividends declared during the period
Non-Cash Financing Activities:
Reinvestment of dividends during the period
The accompanying notes are an integral part of these consolidated financial statements.
Sixth Street Specialty Lending, Inc.
N otes 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. All intercompany balances and transactions have been eliminated in consolidation.
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 valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.
The Adviser’s management reviews the preliminary valuations with the investment professionals. Agreed upon valuation recommendations are presented to the Audit Committee.
The Audit Committee reviews the valuations presented and recommends values for each investment to the Board.
The Board reviews the recommended valuations and determines the fair value of each investment; valuations that are not based on readily available market quotations are valued in good faith based on, among other things, the input of the Adviser, Audit Committee and, where applicable, other third parties including independent third-party valuation firms engaged at the direction of the Board.
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 December 31, 2025, 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 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:
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
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.
Foreign Currency
Foreign currency amounts are translated into U.S. dollars on the following basis:
cash and cash equivalents, market value of investments, outstanding debt on revolving credit facilities, other assets and liabilities: at the spot exchange rate on the last business day of the period; and
purchases and sales of investments, borrowings and repayments of such borrowings, income and expenses: at the rates of exchange prevailing on the respective dates of such transactions.
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, diligence fees, or other service-based fees and fees for providing managerial assistance to our portfolio companies and are recognized as revenue when earned.
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. As of December 31, 2025, the Company did not have any uncertain tax positions that met the recognition or measurement criteria, nor did the Company have any unrecognized tax benefits. The Company’s 2024, 2023 and 2022 tax year returns remain subject to examination by the relevant federal, state, and local tax authorities.
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 calendar years ended December 31, 2025, December 31, 2024 and December 31, 2023 we recorded a net expense of $ 5.3 million, $ 3.9 million and $ 2.4 million, respectively, for U.S. federal excise tax and other taxes.
For the calendar years ended December 31, 2025, December 31, 2024 and December 31, 2023 we recorded a deferred tax benefit of $ 0.5 million, a deferred tax liability of $ 2.6 million, and a deferred tax benefit of $ 0.6 million, respectively. For the calendar year ended December 31, 2025 we recognized a tax expense of $ 0.9 million pertaining to net realized gains.
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.
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 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”),” which intends to improve the transparency of income tax disclosures. ASU No. 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company adopted ASU 2023-09 effective December 31, 2025 and concluded that the application of this guidance did no t have any material impact on its consolidated financial statements.
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 does not expect this update to have a material effect on the Company’s 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.
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.
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 years ended December 31, 2025, December 31, 2024 and December 31, 2023, the Company incurred expenses of $ 3.9 million, $ 3.9 million and $ 3.2 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 years ended December 31, 2025, December 31, 2024 and December 31, 2023, Management Fees (gross of waivers) were $ 52.2 million, $ 51.8 million and $ 46.4 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 years ended December 31, 2025, December 31, 2024 and December 31, 2023, Management Fees of $ 1.3 million, $ 1.5 million, and $ 1.2 million, respectively, have been waived pursuant to the Leverage Waiver.
The Incentive Fee consists of two parts, as follows:
The first component, payable at the end of each quarter in arrears, equals 100 % of the pre-Incentive Fee net investment income in excess of a 1.5 % quarterly “hurdle rate,” the calculation of which is further explained below, until the Adviser has received 17.5 % of the total pre-Incentive Fee net investment income for that quarter and, for pre-Incentive Fee net investment income in excess of 1.82 % quarterly, 17.5 % of all remaining pre-Incentive Fee net investment income for that quarter. The 100 % “catch-up” provision for pre-Incentive Fee net investment income in excess of the 1.5 % “hurdle rate” is intended to provide the Adviser with an Incentive Fee of 17.5 % on all pre-Incentive Fee net investment income when that amount equals 1.82 % in a quarter ( 7.28 % annualized), which is the rate at which catch-up is achieved. Once the “hurdle rate” is reached and catch-up is achieved, 17.5 % of any pre-Incentive Fee net investment income in excess of 1.82 % in any quarter is payable to the Adviser.
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.
The second component, payable at the end of each fiscal year in arrears, equaled 15 % through March 31, 2014 and, beginning April 1, 2014, equals a weighted percentage of cumulative realized capital gains from the Company’s inception to the end of that fiscal year, less cumulative realized capital losses and unrealized capital losses. This component of the Incentive Fee is referred to as the Capital Gains Fee. Each year, the fee paid for this component of the Incentive Fee is net of the aggregate amount of any previously paid Capital Gains Fee for prior periods. For capital gains that accrue following March 31, 2014, the Incentive Fee rate is 17.5 %. The Company accrues, but does not pay, a Capital Gains Fee with respect to unrealized capital gains because a Capital Gains Fee would be owed to the Adviser if the Company were to sell the relevant investment and realize a capital gain. The weighted percentage is intended to ensure that for each fiscal year following the completion of the IPO, the portion of the Company’s realized capital gains that accrued prior to March 31, 2014, is subject to an Incentive Fee rate of 15 % and the portion of the Company’s realized capital gains that accrued beginning April 1, 2014 is subject to an Incentive Fee rate of 17.5 %. In the determination of the second component of the Incentive Fee, any unrealized gains or losses specifically related to the foreign currency denominated borrowings of non-US dollar denominated investments is offset against any associated unrealized gains or losses related to foreign currency denominated investments. As of March 31, 2020, there are no remaining investments that were made prior to April 1, 2014, and as a result, the Incentive Fee rate of 17.5 % is applicable to any future realized capital gains.
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 years ended December 31, 2025, December 31, 2024 and December 31, 2023, Incentive Fees were $ 38.4 million, $ 40.2 million and $ 47.0 million, respectively, of which $ 43.5 million, $ 45.5 million and $ 42.6 million, respectively, were realized and payable to the Adviser. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, $( 5.1 ) million, $( 5.4 ) million, and $ 4.4 million, respectively, of Incentive Fees were accrued related to Capital Gains Fees. As of December 31, 2025, December 31, 2024 and December 31, 2023, these accrued Incentive Fees 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.
Investments at fair value consisted of the following at December 31, 2025 and December 31, 2024:
December 31, 2025
Amortized Cost (1)
Fair Value
Net Unrealized
Gain (Loss)
First-lien debt investments
Second-lien debt investments
Mezzanine debt investments
Equity and other investments
Structured credit investments
Total Investments
December 31, 2024
Amortized Cost (1)
Fair Value
Net Unrealized
Gain (Loss)
First-lien debt investments
Second-lien debt investments
Mezzanine debt investments
Equity and other investments
Structured credit investments
Total Investments
The amortized cost represents the original cost adjusted for the amortization of discounts or premiums, as applicable, on debt investments using the effective interest method.
The industry composition of investments at fair value at December 31, 2025 and December 31, 2024 is as follows:
December 31, 2025
December 31, 2024
Automotive
Business Services
Chemicals
Communications
Education
Electronics
Financial Services
Healthcare
Hotel, Gaming and Leisure
Human Resource Support Services
Insurance
Internet Services
Manufacturing
Marketing Services
Office Products
Oil, Gas and Consumable Fuels
Other
Pharmaceuticals
Real Estate (1)
Retail and Consumer Products
Transportation
Total
Value sums to less than 0.1 %.
The geographic composition of investments at fair value at December 31, 2025 and December 31, 2024 is as follows:
December 31, 2025
December 31, 2024
United States
Midwest
Northeast
South
West
Australia
Canada
Finland (1)
France
Germany
Italy
Netherlands
Norway
Sweden
United Kingdom
Total
Value sums to less than 0.1 %.
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 year ended December 31, 2025 and December 31, 2024:
For the Year Ended December 31, 2025
Maturity Date
Notional Amount
Paid
Received
Net
Interest rate swap
Interest rate swap
Interest rate swap
Interest rate swap
Total
For the Year Ended December 31, 2024
Maturity Date
Notional Amount
Paid
Received
Net
Interest rate swap (1)
Interest rate swap (1)
Interest rate swap (1)
Interest rate swap
Interest rate swap
Interest rate swap
Total
As of December 31, 2024 , these interest rate swaps had either matured or been terminated due to repayment of the underlying investment or security.
For the years ended December 31, 2025 and December 31, 2024 , the Company recognized no net change in unrealized gains or losses, on interest rate swaps not designated as hedging instruments in the Consolidated Statement of Operations related to the swap transactions. For the years ended December 31, 2025 and December 31, 2024, the Company recognized a $ 34.5 million net change in gains and a $ 7.6 million net change in gains, respectively, on interest rate swaps designated as hedging instruments in the Consolidated Statements of Operations. For the years ended December 31, 2025 and December 31, 2024 , the Company recognized no net realized gain or loss on interest rate swaps. For the year ended December 31, 2024 , this amount is offset by an increase of $ 10.4 million for a change in the carrying value of the 2024 Notes. For the years ended December 31, 2025 and December 31, 2024, this amount is offset by an increase of $ 11.8 million and $ 8.5 million, respectively, for a change in carrying value of the 2026 Notes, an increase of $ 5.9 million and a decrease of $ 6.1 million, respectively, for a change in carrying value of the 2028 Notes, and an increase of $ 8.6 million and a decrease of $ 5.2 million, respectively, for a change in carrying value of the 2029 Notes. For the year ended December 31, 2025 this amount is offset by an increase of $ 8.3 million for a change in carrying value of the 2030 Notes.
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. As of December 31, 2025, the derivatives had a fair value of $ 27.0 million. As of December 31, 2024 , the swap transactions had a fair value of $( 24.2 ) million, which is netted against cash collateral of $ 46.6 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, 2024 , the derivatives had a fair value of $ 22.4 million.
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 December 31, 2025 and December 31, 2024:
Fair Value Hierarchy at December 31, 2025
Level 1
Level 2
Level 3
Total
First-lien debt investments
Second-lien debt investments
Mezzanine debt investments
Equity and other investments
Structured credit investments
Total investments at fair value
Interest rate swaps
Total
Fair Value Hierarchy at December 31, 2024
Level 1
Level 2
Level 3
Total
First-lien debt investments
Second-lien debt investments
Mezzanine debt investments
Equity and other investments
Structured credit investments
Total investments at fair value
Interest rate swaps
Total
Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur.
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 year ended December 31, 2025 and December 31, 2024:
As of and for the Year Ended
December 31, 2025
First-lien
debt
investments
Second-lien
debt
investments
Mezzanine
debt
investments
Equity
and other
investments
Total
Balance, beginning of period
Purchases or originations
Repayments / redemptions
Sales Proceeds
Paid-in-kind interest
Net change in unrealized gains (losses)
Net realized gains (losses)
Net amortization of discount on securities
Transfers within Level 3
Transfers into (out of) Level 3
Balance, End of Period
Caris Life Sciences, Inc. was transferred out of Level 3 into Level 1 and Dye & Durham, Ltd. was transferred out of Level 1 into Level 3 for fair value measurement purposes during the year ended December 31, 2025, as a result of changes in the observability of inputs into the security valuation for these portfolio companies.
As of and for the Year Ended
December 31, 2024
First-lien
debt
investments
Second-lien
debt
investments
Mezzanine
debt
investments
Equity
and other
investments
Total
Balance, beginning of period
Purchases or originations
Repayments / redemptions
Sales Proceeds
Paid-in-kind interest
Net change in unrealized gains (losses)
Net realized gains (losses)
Net amortization of discount on securities
Transfers within Level 3
Transfers into (out of) Level 3
Balance, End of Period
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 December 31, 2025 and December 31, 2024:
Net Change in Unrealized
Net Change in Unrealized
Gains or (Losses)
Gains or (Losses)
for the Year Ended
for the Year Ended
December 31, 2025 on
December 31, 2024 on
Investments Held at
Investments Held at
December 31, 2025
December 31, 2024
First-lien debt investments
Second-lien debt investments
Mezzanine debt investments
Equity and other investments
Total
The following tables present the fair value of Level 3 Investments and the significant unobservable inputs used in the valuations as of December 31, 2025 and December 31, 2024. 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.
December 31, 2025
Valuation
Unobservable
Range (Weighted
Impact to Valuation
from an
Fair Value
Technique
Input
Average)
Increase to Input
First-lien debt investments
Income approach (1)
Discount rate
Decrease
Second-lien debt investments
Income approach
Discount rate
Decrease
Mezzanine debt investments
Income approach (2)
Discount rate
Decrease
Equity and other investments
Market Multiple (3)
Comparable multiple
Increase
Total
Includes $ 105.9 million of debt investments which were valued using an asset valuation waterfall.
Includes $ 0.1 million of debt investments which were valued using an asset valuation waterfall.
Includes $ 13.1 million of equity investments which were valued using an asset valuation waterfall and $ 20.1 million of equity investments using a discounted cash flow analysis.
December 31, 2024
Valuation
Unobservable
Range (Weighted
Impact to Valuation
from an
Fair Value
Technique
Input
Average)
Increase to Input
First-lien debt investments
Income approach (1)
Discount rate
Decrease
Second-lien debt investments
Income approach (2)
Discount rate
Decrease
Mezzanine debt investments
Income approach (3)
Discount rate
Decrease
Equity and other investments
Market Multiple (4)
Comparable multiple
Increase
Total
Includes $ 199.4 million of debt investments which were valued using an asset valuation waterfall.
Includes $ 6.0 million of debt investments which were valued using an asset valuation waterfall.
Includes $ 0.1 million of debt investments which were valued using an asset valuation waterfall.
Includes $ 13.6 million of equity investments which were valued using an asset valuation waterfall, $ 0.5 million of equity investments using a Black-Scholes model and $ 20.4 million of equity investments using a discounted cash flow analysis.
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 fee-free 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. SCP will be initially capitalized with $ 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. 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 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. Therefore, although the Company owns 25.0 % of the voting interests of SCP, the Company does not believe that it has control over SCP for accounting purposes and does not consolidate its non-controlling interest in SCP.
As of December 31, 2025, SCP had not commenced operations and no capital had been contributed to SCP.
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 December 31, 2025 and December 31, 2024, 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 December 31, 2025 and December 31, 2024.
December 31, 2025
December 31, 2024
Outstanding
Principal
Fair
Value (1)
Outstanding
Principal
Fair
Value (1)
2026 Notes
2028 Notes
2029 Notes
2030 Notes
Total
The fair value is based on broker quotes received by the Company and is categorized as Level 2 within the fair value hierarchy.
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 December 31, 2025 , 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 Fifteenth Amendment dated April 24, 2024, aggregate commitments were increased to $ 1.7 billion. With respect to $ 1.505 billion of commitments, the revolving period was extended to April 24, 2028 and the stated maturity was extended to April 24, 2029 . For the remaining $ 195.0 million of commitments, (A) with respect to $ 25.0 million of commitments, the revolving period ended on February 4, 2025 and the stated maturity is February 4, 2026 and (B) with respect to $ 170.0 million of commitments, the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027 .
Pursuant to the Sixteenth Amendment dated March 4, 2025, 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 March 2, 2029 and the stated maturity was extended to March 4, 2030 . For the remaining $ 150.0 million of commitments the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027 .
The Company may borrow amounts in U.S. dollars or certain other permitted currencies. 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 below. As of December 31, 2024 , the Company had outstanding debt denominated in Australian dollars (AUD) of 63.0 million, British pounds (GBP) of 62.4 million, Canadian dollars (CAD) of 5.0 million, Swedish Krona (SEK) of 80.2 million and Euro (EUR) of 167.2 million on its 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 December 31, 2025 and December 31, 2024 the Company had $ 21.7 million and $ 21.8 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.
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:
an asset coverage ratio of no less than 2 to 1 on the last day of any fiscal quarter;
stockholders’ equity of at least $ 650 million plus 25 % of the net proceeds of the sale of equity interest after April 24, 2024; and
a minimum asset coverage ratio of no less than 1.5 to 1 with respect to (i) the consolidated assets of the Company and the subsidiary guarantors (including certain limitations on the contribution of equity in financing subsidiaries) to (ii) the secured debt of the Company and its subsidiary guarantors plus unsecured senior securities of the Company and its subsidiary guarantors that mature within 90 days of the date of determination (the “Obligor Asset Coverage Ratio”).
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.
Net proceeds received from the Company’s issuance of the 2030 Notes were used to pay down borrowings on the Revolving Credit Facility.
As of December 31, 2025 and December 31, 2024, the Company was in compliance with the terms of the Revolving Credit Facility.
2023 Notes
In January 2018, the Company issued $ 150.0 million aggregate principal amount of unsecured notes that matured on January 22, 2023 (the “2023 Notes”). The principal amount of the 2023 Notes was payable at maturity. The 2023 Notes bore interest at a rate of 4.50 % per year, payable semi-annually commencing on July 22, 2018, and were redeemable 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 2023 Notes, net of underwriting discounts and offering costs, were $ 146.9 million. The Company used the net proceeds of the 2023 Notes to repay outstanding indebtedness under the Revolving Credit Facility. The 2023 Notes matured on January 22, 2023 and were fully repaid in cash. The swap transaction associated with the issuance of the 2023 Notes also matured on January 22, 2023.
2024 Notes
In November 2019, the Company issued $ 300.0 million aggregate principal amount of unsecured notes that matured on November 1, 2024 (the “2024 Notes”). The principal amount of the 2024 Notes was payable at maturity. The 2024 Notes bear interest at a rate of 3.875 % per year, payable semi-annually commencing on May 1, 2020, 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 2024 Notes, net of underwriting discounts, offering costs and original issue discount were $ 292.9 million. The Company used the net proceeds of the 2024 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
In February 2020, the Company issued an additional $ 50.0 million aggregate principal amount of unsecured notes that mature on November 1, 2024 . The additional 2024 Notes are a further issuance of, fungible with, rank equally in right of payment with and have the same terms (other than the issue date and the public offering price) as the initial issuance of 2024 Notes. Total proceeds from the issuance of the additional 2024 Notes, net of underwriting discounts, offering costs and original issue premium were $ 50.1 million. The Company used the net proceeds of the 2024 Notes to repay outstanding indebtedness under the Revolving Credit Facility.
During the year ended December 31, 2020, the Company repurchased on the open market and extinguished $ 2.5 million in aggregate principal amount of the 2024 Notes for $ 2.4 million. These repurchases resulted in a gain on extinguishment of debt of less than $ 0.1 million. This gain is included in the extinguishment of debt in the accompanying Consolidated Statements of Operations.
The Company’ s 2024 Notes matured on November 1, 2024 and were fully repaid. The corresponding swap transaction associated with the issuance of the 2024 Notes also matured on November 1, 2024 .
2026 Notes
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 December 31, 2025 and December 31, 2024, the effective hedge interest rate swaps had a fair value of $( 5.8 ) million and $( 17.6 ) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2026 Notes.
2028 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 December 31, 2025 and December 31, 2024, the effective hedge interest rate swaps had a fair value of $ 4.5 million and $( 1.4 ) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2028 Notes.
2029 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 December 31, 2025 and December 31, 2024, the effective hedge interest rate swaps had a fair value of $ 3.3 million and $( 5.2 ) million, respectively, which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2029 Notes.
2030 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 December 31, 2025, the effective hedge interest rate swaps had a fair value of $ 8.3 million which is offset within interest expense by an equal, but opposite, fair value change for the hedged risk on the 2030 Notes.
For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, the components of interest expense related to the 2023 Notes, 2024 Notes, 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes were as follows:
For the Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Interest expense
Accretion of original issue discount
Amortization of deferred financing costs
Total Interest Expense
Total interest expense in the table above does not include the effect of the interest rate swaps related to the 2023 Notes, 2024 Notes, 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes. During the years ended December 31, 2025, December 31, 2024 and December 31, 2023, the Company received $ 63.9 million, $ 60.2 million, and $ 29.5 million, respectively, and paid $ 80.3 million, $ 96.7 million and $ 58.5 million, respectively, related to the settlements of its interest rate swaps related to the 2023 Notes, 2024 Notes, 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 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:
December 31, 2025
2026 Notes
2028 Notes
2029 Notes
2030 Notes
Principal amount of debt
Original issue discount, net of accretion
Deferred financing costs
Fair value of an effective hedge
Carrying value of debt
Stated interest rate
As of December 31, 2024, the components of the carrying value of the 2026 Notes, 2028 Notes and 2029 Notes and the stated interest rates were as follows:
December 31, 2024
2026 Notes
2028 Notes
2029 Notes
Principal amount of debt
Original issue discount, net of accretion
Deferred financing costs
Fair value of an effective hedge
Carrying value of debt
Stated interest rate
The stated interest rate in the table above does not include the effect of the interest rate swaps. 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 December 31, 2024, the Company’ s swap-adjusted interest rate on the 2026 Notes, 2028 Notes and 2029 Notes was SOFR plus 2.17 %, 2.99 % and 2.44 %, respectively.
As of 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. As of December 31, 2024, the Company was in compliance with the terms of the indentures governing the 2026 Notes, 2028 Notes and 2029 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 December 31, 2025 and December 31, 2024, the Company’s asset coverage was 191.5 % and 182.5 % respectively.
Debt obligations consisted of the following as of December 31, 2025 and December 31, 2024:
December 31, 2025
Aggregate
Principal
Amount
Committed
Outstanding
Principal
Amount
Available (1)
Carrying
Value (2)(3)
Revolving Credit Facility
2026 Notes
2028 Notes
2029 Notes
2030 Notes
Total Debt
The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility and asset coverage requirements.
The carrying values of the Revolving Credit Facility, 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes are presented net of the combination of deferred financing costs and original issue discounts totaling $ 15.1 million, $ 0.7 million, $ 3.3 million, $ 5.3 million and $ 6.6 million, respectively.
The carrying values of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes are presented inclusive of an incremental $( 5.8 ) million, $ 4.5 million, $ 3.3 million and $ 8.3 million, respectively, which represents an adjustment in the carrying values of the 2026 Notes, 2028 Notes, 2029 Notes and 2030 Notes, each resulting from a hedge accounting relationship.
December 31, 2024
Aggregate
Principal
Amount
Committed
Outstanding
Principal
Amount
Available (1)
Carrying
Value (2)(3)
Revolving Credit Facility
2026 Notes
2028 Notes
2029 Notes
Total Debt
The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility, outstanding letters of credit and asset coverage requirements.
The carrying values of the Revolving Credit Facility, 2026 Notes, 2028 Notes and 2029 Notes are presented net of the combination of deferred financing costs and original issue discounts totaling $ 15.4 million, $ 1.8 million, $ 4.5 million and $ 6.9 million, respectively.
The carrying values of the 2026 Notes, 2028 Notes and 2029 Notes are presented inclusive of an incremental $( 17.6 ) million, $( 1.4 ) million and $( 5.2 ) million, respectively, which represents an adjustment in the carrying values of the 2026 Notes, 2028 Notes and 2029 Notes, each resulting from a hedge accounting relationship.
For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, the components of interest expense were as follows:
Year Ended
Year Ended
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Interest expense
Commitment fees
Amortization of deferred financing costs
Accretion of original issue discount
Swap settlement
Total Interest Expense
Average debt outstanding (in millions)
Weighted average interest rate
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 December 31, 2025 and December 31, 2024, the Company had the following commitments to fund investments in current portfolio companies:
December 31, 2025
December 31, 2024
Alaska Bidco Oy - Delayed Draw & Revolver
Aledade, Inc. - Revolver
Alpha Midco, Inc. - Delayed Draw & Revolver
American Achievement, Corp. - Revolver
Apellis Pharmaceuticals, Inc. - Delayed Draw
Aptean, Inc. - Delayed Draw & Revolver
Arcwood Environmental, Inc. - Delayed Draw & Revolver
Arrow Buyer, Inc. - Delayed Draw
Arrowhead Pharmaceuticals, Inc. - Delayed Draw
Artisan Bidco, Inc. - Revolver
Avalara, Inc. - Revolver
AVSC Holding Corp. - Revolver
Axonify, Inc. - Delayed Draw
Azurite Intermediate Holdings, Inc. - Revolver & Equity
Babylon Finco Limited - Delayed Draw
Banyan Software Holdings, LLC - Delayed Draw
Bayshore Intermediate #2, L.P. - Revolver
BCTO Ace Purchaser, Inc. - Delayed Draw & Revolver
Velocity Clinical Research, Inc. - Delayed Draw & Revolver
Wrangler Topco, LLC - Delayed Draw & Revolver
Total Portfolio Company Commitments (1)(2)
Represents the full amount of the Company’s commitments to fund investments on such date. Commitments may be subject to limitations on borrowings set forth in the agreements between the Company and the applicable portfolio company. As a result, portfolio companies may not be eligible to borrow the full commitment amount on such date.
The Company’s estimate of the fair value of the current investments in these portfolio companies includes an analysis of the fair value of any unfunded commitments.
Other Commitments and Contingencies
As of December 31, 2025 and December 31, 2024 , the Company did no t 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 December 31, 2025 and December 31, 2024 , management is not aware of any material pending or threatenedlitigation that would require accounting recognition or financial statement disclosure.
9. Net Assets
On March 5, 2024, the Company issued a total of 4,000,000 shares of common stock at $ 20.52 per share. Net of underwriting fees and offering costs, the Company received total cash proceeds of $ 81.5 million. Subsequent to the offering, the Company 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.
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 years ended December 31, 2025 and December 31, 2024. All shares issued to stockholders in the tables below are newly issued shares.
For the Year Ended
December 31, 2025
Date
Date Declared
Dividend (1)
Record Date
Shares Issued
Shares Issued
February 13, 2025
Supplemental
February 28, 2025
March 20, 2025
February 13, 2025
Base
March 14, 2025
March 31, 2025
April 30, 2025
Supplemental
May 30, 2025
June 20, 2025
April 30, 2025
Base
June 16, 2025
June 30, 2025
July 30, 2025
Supplemental
August 29, 2025
September 19, 2025
July 30, 2025
Base
September 15, 2025
September 30, 2025
November 4, 2025
Supplemental
November 28, 2025
December 19, 2025
November 4, 2025
Base
December 15, 2025
December 31, 2025
Total Shares Issued
For the Year Ended
December 31, 2024
Date
Date Declared
Dividend (1)
Record Date
Shares Issued
Shares Issued
February 15, 2024
Supplemental
February 29, 2024
March 20, 2024
February 15, 2024
Base
March 15, 2024
March 28, 2024
May 1, 2024
Supplemental
May 31, 2024
June 20, 2024
May 1, 2024
Base
June 14, 2024
June 28, 2024
July 31, 2024
Supplemental
August 30, 2024
September 20, 2024
July 31, 2024
Base
September 16, 2024
September 30, 2024
November 5, 2024
Supplemental
November 29, 2024
December 20, 2024
November 5, 2024
Base
December 16, 2024
December 31, 2024
Total Shares Issued
See Note 11 for further information on base, supplemental and special dividends.
During the year ended December 31, 2025 and December 31, 2024, we issued 1,043,714 and 1,231,937 shares of the Company’s common stock, respectively, to investors who have not opted out of the Company’s dividend reinvestment plan for proceeds of $ 22.5 million and $ 24.7 million, respectively.
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 on 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 years ended December 31, 2025 and December 31, 2024.
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 December 31, 2025 .
10. Earnings per share
The following table sets forth the computation of basic and diluted earnings per common share:
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Increase in net assets resulting from operations
Weighted average shares of common stock outstanding—basic and diluted
Earnings per common share—basic and diluted
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 years ended December 31, 2025, December 31, 2024 and December 31, 2023:
For the Year Ended
December 31, 2025
Date Declared
Dividend
Record Date
Payment Date
Dividend per Share
February 13, 2025
Supplemental
February 28, 2025
March 20, 2025
February 13, 2025
Base
March 14, 2025
March 31, 2025
April 30, 2025
Supplemental
May 30, 2025
June 20, 2025
April 30, 2025
Base
June 16, 2025
June 30, 2025
July 30, 2025
Supplemental
August 29, 2025
September 19, 2025
July 30, 2025
Base
September 15, 2025
September 30, 2025
November 4, 2025
Supplemental
November 28, 2025
December 19, 2025
November 4, 2025
Base
December 15, 2025
December 31, 2025
Total Dividends Declared
For the Year Ended
December 31, 2024
Date Declared
Dividend
Record Date
Payment Date
Dividend per Share
February 15, 2024
Supplemental
February 29, 2024
March 20, 2024
February 15, 2024
Base
March 15, 2024
March 28, 2024
May 1, 2024
Supplemental
May 31, 2024
June 20, 2024
May 1, 2024
Base
June 14, 2024
June 28, 2024
July 31, 2024
Supplemental
August 30, 2024
September 20, 2024
July 31, 2024
Base
September 16, 2024
September 30, 2024
November 5, 2024
Supplemental
November 29, 2024
December 20, 2024
November 5, 2024
Base
December 16, 2024
December 31, 2024
Total Dividends Declared
For the Year Ended
December 31, 2023
Date Declared
Dividend
Record Date
Payment Date
Dividend per Share
February 16, 2023
Supplemental
February 28, 2023
March 20, 2023
February 16, 2023
Base
March 15, 2023
March 31, 2023
May 8, 2023
Supplemental
May 31, 2023
June 20, 2023
May 8, 2023
Base
June 15, 2023
June 30, 2023
August 3, 2023
Supplemental
August 31, 2023
September 20, 2023
August 3, 2023
Base
September 15, 2023
September 29, 2023
November 2, 2023
Supplemental
November 30, 2023
December 20, 2023
November 2, 2023
Base
December 15, 2023
December 29, 2023
Total Dividends Declared
The dividends declared during the years ended December 31, 2025, December 31, 2024 and December 31, 2023 were derived from net investment income and long-term capital gains, determined on a tax basis.
12. Income Taxes
The tax character of shareholder distributions attributable to the fiscal years ended December 31, 2025, December 31, 2024 and December 31, 2023 were as follows:
Year Ended
Year Ended
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Ordinary Income (1)
Long Term Capital Gains
Total
For the years ended December 31, 2025, December 31, 2024 and December 31, 2023 , 83.51 %, 86.81 % and 87.01 % of ordinary income qualified as interest related dividend which is exempt from U.S. withholding tax applicable to non-U.S. shareholders.
The tax basis components of distributable earnings for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 were as follows:
Year Ended
Year Ended
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Undistributed net investment income - tax basis
Undistributed net realized gains (losses) - tax basis
Net unrealized gains (losses) on investments
Other temporary differences
Total distributable earnings - book basis
The following reconciles increase in net assets resulting from operations for the fiscal years ended December 31, 2025, December 31, 2024 and December 31, 2023, to taxable income at December 31, 2025, December 31, 2024 and December 31, 2023:
Year Ended
Year Ended
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
Increase in net assets resulting from
operations
Adjustments:
Net unrealized (gains) losses on investments
Other income for tax purposes, not book
Deferred organization costs
Other expenses not currently deductible
Other book-tax differences
Taxable Income
Note: Taxable income is an estimate and is not fully determined until the Company’s tax return is filed. The Company’s tax year changed from March 31 to December 31 during calendar year 2024.
Taxable income generally differs from increase in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.
The Company makes certain adjustments to the classification of stockholders’ equity as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, or distributable earnings, as appropriate. In addition, due to the Company’s differing fiscal, tax, and excise tax year ends, the best estimates available are recorded to the above accounts in the period that such differences arise or are identifiable.
During the period January 1, 2025 through December 31, 2025 , the Company increased distributable earnings and decreased additional paid in capital by $ 6.3 million which was primarily attributable to U.S. federal excise taxes and other taxes.
During the period January 1, 2024 through December 31, 2024, the Company increased distributable earnings and decreased additional paid in capital by $ 3.8 million which was primarily attributable to U.S. federal excise taxes.
During the period April 1, 2023 through December 31, 2023, the Company increased distributable earnings and decreased additional paid in capital by $ 1.9 million which was primarily attributable to U.S. federal excise taxes.
The Company’s wholly-owned subsidiary, Sixth Street SL Holding, LLC, is a taxable subsidiary in which the Company holds certain equity investments. Sixth Street SL Holding, LLC is not consolidated for U.S. federal income tax purposes and may generate income tax expense as a result of its ownership of certain portfolio companies. The income tax expense, or benefit, and the related tax assets and liabilities, if any, are reflected in our Statement of Operations.
As of December 31, 2025 , the Company had a deferred tax liability of $ 4.6 million pertaining to net unrealized gains, related to seven of its investments. Given the unrealized gains generated by this entity, the deferred tax liability has been offset by a deferred tax asset of $ 0.6 million pertaining to operating losses. The Company recorded a deferred tax benefit of $ 0.5 million for the year ended December 31, 2025.
As of December 31, 2024 , the Company had a deferred tax liability of $ 5.2 million pertaining to net unrealized gains, related to eight of its investments. Given the unrealized gains generated by this entity, the deferred tax liability has been offset by a deferred tax asset of $ 0.6 million pertaining to operating losses. The Company recorded a current tax expense of $ 0.2 million and a deferred tax expense of $ 2.6 million for the year ended December 31, 2024.
As of December 31, 2023 , the Company had a deferred tax liability of $ 2.8 million pertaining to net unrealized gains, related to seven of its investments. Given the unrealized gains generated by this entity, the deferred tax liability has been offset by a deferred tax asset of $ 0.9 million pertaining to operating losses. The Company recorded a current tax expense of $ 0.1 million and a deferred tax benefit of $ 0.6 million for the year ended December 31, 2023.
The tax cost of the Company’s investments as of December 31, 2025 was $ 3,332,367 , resulting in estimated gross unrealized gains and losses of $ 219,540 and $ 231,975 , respectively. The tax cost of the Company’s investments as of December 31, 2024 was $ 3,535,963 , resulting in estimated gross unrealized gains and losses of $ 207,435 and $ 216,975 , respectively. The tax cost of the Company’s investments as of December 31, 2023 was $ 3,256,630 , resulting in estimated gross unrealized gains and losses of $ 159,281 and $ 135,606 , respectively.
To the extent that the Company determines that its estimated current year annual taxable income will exceed its estimated current year dividends from such taxable income, the Company accrues excise tax on estimated excess taxable income. For the year ended December 31, 2025, December 31, 2024 and December 31, 2023 , a net expense of $ 5.3 million, $ 3.8 million and $ 2.3 million, respectively, was recorded for U.S. federal excise tax.
13. 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 years ended December 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017, and 2016:
For the Years Ended December 31,
Per Share Data (7)(8)
Net asset value, beginning of period
Net investment income (1)
Net realized and unrealized gains
(losses) (1)
Total from operations
Issuance of common stock, net of offering costs (2)
Settlement of 2022 Convertible Notes (2)
Repurchase of common stock (2)
Repurchase of debt (2)
Dividends declared (2)
Total increase/(decrease) in net assets
Net Asset Value, End of Period
Per share market value at end of period
Total return based on market value with reinvestment of dividends (3)
Total return based on market value (4)
Total return based on net asset value (5)
Shares Outstanding, End of Period
Ratios / Supplemental Data (6)
Ratio of net expenses to average net assets
Ratio of net investment income to average net assets
Portfolio turnover
Net assets, end of period
The per share data was derived by using the weighted average shares outstanding during the period.
The per share data was derived by using the actual shares outstanding at the date of the relevant transactions.
Total return based on market value with dividends reinvested is calculated as the change in market value per share during the period plus declared dividends per share, assuming reinvestment of dividends, divided by the beginning market value per share.
Total return based on market value is calculated as the change in market value per share during the period plus declared dividends per share, divided by the beginning market value per share.
Total return based on net asset value is calculated as the change in net asset value per share during the period plus declared dividends per share, divided by the beginning net asset value per share.
The ratios reflect an annualized amount.
The ratio of net expenses to average net assets in the table above reflects the Adviser’s waivers of its right to receive a portion of the Management Fee pursuant to the Leverage Waiver for the year ended December 31, 2025. Excluding the effects of the waivers, the ratio of net expenses to average net assets would have been 14.92 % , 16.75 %, 17.00 %, 11.08 %, 11.19 % and 11.33 % for the years ended December 31, 2025 , 2024, 2023, 2022, 2021 and 2018, respectively. The ratio of net expenses to average net assets in the table above reflects the Adviser’s waivers of its right to receive a portion of the Management Fee pursuant to the Leverage Waiver for the years ended December 31, 2024, 2023, 2022 and 2021 and the Adviser’s waivers of its right to receive a portion of the Management and Incentive Fees with respect to the Company’s ownership of shares of common stock of Oxford Square Capital Corp. and Triangle Capital Corp. for the year ended December 31, 2018. The Adviser did no t waive any Management Fees or Incentive Fees for the years ended December 31, 2020 and 2019. Excluding the effects of the waivers, the ratio of net expenses to average net assets would have been 9.42 % and 9.43 % for the years ended December 31, 2017 and 2016, respectively.
Table may not sum due to rounding.
14. Selected Quarterly Financial Data (Unaudited)
Investment Income
Net Expenses (1)
Net Investment Income
Total unrealized and realized gains (losses)
Increase in Net Assets Resulting from Operations
Net Asset Value per Share as of the End of the Quarter
Investment Income
Net Expenses (1)
Net Investment Income
Total unrealized and realized gains (losses)
Increase in Net Assets Resulting from Operations
Net Asset Value per Share as of the End of the Quarter
Investment Income
Net Expenses (1)
Net Investment Income
Total unrealized and realized gains (losses)
Increase in Net Assets Resulting from Operations
Net Asset Value per Share as of the End of the Quarter
Net expenses include income taxes, including excise taxes.
15. 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-K or would be required to be recognized in the consolidated financial statements as of and for the year ended December 31, 2025 .
I TEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
I TEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this Annual 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 Exchange Act). 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.
Management’s Report on Internal Control Over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO Framework). Based on our evaluation under the framework in Internal Control—Integrated Framework , management concluded that our internal control over financial reporting was effective as of December 31, 2025.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Attestation Report of the Independent Registered Public Accounting Firm. Our independent registered public accounting firm, KPMG LLP, has issued an audit report on the effectiveness of our internal control over financial reporting, which is set forth under the heading “Report of Independent Registered Public Accounting Firm” on page F-2.
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.
I TEM 9B. OTHER INFORMATION
None .
ITEM 9C. DISC LOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not Applicable.
P ART III
I TEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Except for the information regarding the SOX Code of Business Conduct and Ethics (which is set forth below), information in response to this item is incorporated by reference from our Proxy Statement relating to our 2026 annual meeting of stockholders. The Proxy Statement will be filed with the SEC within 120 days after the end of the fiscal year covered by this Form 10-K pursuant to Regulation 14A under the Exchange Act.
Our SOX Code of Business Conduct and Ethics may be found at http://www.sixthstreetspecialtylending.com in the “Investor Resources” section of our website. We intend to disclose any substantive amendments to or waivers of required provisions of the SOX Code of Business Conduct and Ethics on our website.
I TEM 11. EXECUTIVE COMPENSATION
Information in response to this item is incorporated by reference from our Proxy Statement relating to our 2026 annual meeting of stockholders.
I TEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Information in response to this item is incorporated by reference from our Proxy Statement relating to our 2026 annual meeting of stockholders.
I TEM 13. CERTAIN RELATIONSHIP AND RELATED TRANSACTION, AND DIRECTOR INDEPENDENCE
Information in response to this item is incorporated by reference from our Proxy Statement relating to our 2026 annual meeting of stockholders.
I TEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information in response to this item is incorporated by reference from our Proxy Statement relating to our 2026 annual meeting of stockholders.
P ART IV
I TEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
The following documents are filed as part of this Annual Report:
Financial Statements—Financial statements are included in Item 8. See the Index to the consolidated financial statements on page F-1 of this annual report on Form 10-K.
Financial Statement Schedules—None. We have omitted financial statements schedules because they are not required or are not applicable, or the required information is shown in the consolidated financial statements or notes to the consolidated financial statements included in this annual report on Form 10-K.
Exhibits—The following is a list of all exhibits filed as a part of this annual report on Form 10-K, including those incorporated by reference.
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).
Form of Common Stock Certificate (incorporated by reference to Exhibit 4.2 to the Company’s Annual Report on Form 10-K filed on March 22, 2012).
Third Supplemental Indenture, dated as of February 3, 2021, between Sixth Street Specialty Lending, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on February 3, 2021).
Form of 2.500% Note (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on February 3, 2021).
Fourth Supplemental Indenture, dated as of August 14, 2023, between Sixth Street Specialty Lending, Inc. and Computershare Trust Company, N.A., as successor to Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on August 14, 2023).
Form of 6.950% Note Due 2028 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on August 14, 2023).
Indenture, dated as of January 16, 2024, between Sixth Street Specialty Lending, Inc. and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on January 16, 2024).
First Supplemental Indenture, dated as of January 16, 2024, between Sixth Street Specialty Lending, Inc. and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on January 16, 2024).
Form of 6.125% Note Due 2029 (included in Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on January 16, 2024).
Second Supplemental Indenture, dated as of February 25, 2025, between Sixth Street Specialty Lending, Inc. and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on February 25, 2025).
Form of 5.625% Note Due 2030 (included in Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on February 25, 2025 and incorporated by reference).
Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4.8 to the Company’s Annual Report on Form 10-K filed on February 15, 2024).
Exhibit No
Description of Exhibits
Form of Indemnification Agreement between the Company and certain officers and directors (incorporated by reference to Exhibit 10.3 to Amendment No. 1 to the Company’s Registration Statement on Form 10 filed on March 14, 2011).
Amended and Restated Investment Advisory and Management Agreement, dated December 12, 2011, between the Company and the Adviser (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 13, 2011).
Custodian Agreement dated November 29, 2012 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 4, 2012).
Second Amended and Restated Senior Secured Credit Agreement, dated February 27, 2014, among TPG Specialty Lending, Inc., as Borrower, the Lenders Party Hereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent, and JPMorgan Chase Bank, N.A., as Syndication Agent (incorporated by reference to Exhibit 10.20 to the Company’s Annual Report on Form 10-K filed on March 4, 2014).
Dividend Reinvestment Plan of TPG Specialty Lending, Inc. (incorporated by reference to Exhibit (e) to Pre-Effective Amendment No. 4 to the Company’s Registration Statement on Form N-2 filed on March 17, 2014).
Form of Increase Letter pursuant to the Second Amended and Restated Senior Secured Credit Agreement, dated February 27, 2014, among TPG Specialty Lending, Inc., as Borrower, the Lenders Party Hereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent, and JPMorgan Chase Bank, N.A., as Syndication Agent (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Annual Report on Form 10-Q filed on August 4, 2014).
First Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated June 3, 2014, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed on August 4, 2014).
Second Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated June 27, 2014, among TPG Specialty Lending, Inc., as Borrower, Morgan Stanley Bank, N.A., as a Lender, and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q filed on August 4, 2014).
Third Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated October 17, 2014, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on November 3, 2014).
Second Amended and Restated Credit and Security Agreement, dated as of March 27, 2015, among TPG SL SPV, LLC, as Borrower, the Lenders from time to time parties thereto, Natixis, New York Branch, as Facility Agent and State Street Bank and Trust Company, as Collateral Agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 30, 2015).
Fourth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated October 2, 2015, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on November 3, 2015).
Fifth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated December 22, 2016, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K filed on February 22, 2017).
Amended and Restated Administration Agreement, dated as of February 22, 2017 between the Company and the Adviser (incorporated by reference to Exhibit 10.16 to the Company’s Annual Report on Form 10-K filed on February 22, 2017).
Sixth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated February 20, 2018, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.16 to the Company’s Annual Report on Form 10-K filed on February 21, 2018).
Exhibit No
Description of Exhibits
Seventh Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of November 5, 2018, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on November 6, 2018).
Eighth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of February 14, 2019, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent. (incorporated by reference to Exhibit 10.16 to the Company’s Annual Report on Form 10-K filed on February 20, 2019).
Ninth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of January 31, 2020, among TPG Specialty Lending, Inc., as Borrower, the Lenders party thereto and Truist Bank (as successor by merger to SunTrust Bank), as Administrative Agent. (incorporated by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K filed on February 19, 2020).
Tenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of February 5, 2021, 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 (incorporated by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K filed on February 17, 2021).
Eleventh Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of December 21, 2021, 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 (incorporated by reference to Exhibit 10.19 to the Company’s Annual Report on Form 10-K filed on February 17, 2022).
Twelfth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of April 25, 2022, 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 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on May 5, 2022).
Thirteenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of Ma y 19, 2022, 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 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed on August 2, 2022).
Fourteenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of June 12, 2023, 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 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on August 3, 2023).
Fifteenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of April 24, 2024, 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 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on July 31, 2024).
Sixteenth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of March 4, 2025, 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 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed on April 30, 2025).
Form of Equity Distribution Agreement, dated as of February 28, 2025, by and among Sixth Street Specialty Lending, Inc., Sixth Street Specialty Lending Advisers, LLC and the sales agent party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 28, 2025).
Sixth Street Specialty Lending, Inc.’s Statement of Policy on Insider Trading (incorporated by reference to the Exhibit 19.1 to the Company's Annual Report on Form 10-K filed on February 13, 2025).
Subsidiaries of Sixth Street Specialty Lending, Inc.
Exhibit No
Description of Exhibits
Consent of Independent Registered Public Accounting Firm
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, 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.
Incentive Compensation Clawback Policy (incorporated by reference to Exhibit 97.1 to the Company’s Annual Report on Form 10-K filed on February 15, 2024).
Report of Independent Registered Public Accounting Firm on Supplemental Information.
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
Cover Page Interactive Data File (embedded within the Inline XBRL document)
ITEM 16. FORM 10-K SUMMARY
Not applicable.
SIG NATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 12, 2026
SIXTH STREET SPECIALTY LENDING, INC.
/s/ Robert “Bo” Stanley
Chief Executive Officer
(principal executive officer)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on February 12, 2026.
Signature
Title
/s/ Robert (“Bo”) Stanley
Robert (“Bo”) Stanley
Chief Executive Officer and Director (principal executive officer)
