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Jun 30, 2022
Sixth Street Q2 2022 Earnings Report
Reported adjusted net investment income and net loss per share, driven by unrealized losses from credit spread widening.
Key Takeaways
Sixth Street Specialty Lending, Inc. reported adjusted net investment income of $0.42 per share and adjusted net loss of $0.30 per share for the second quarter ended June 30, 2022. The company's net loss was primarily driven by unrealized losses from the impact of credit spread widening on the valuation of the company's portfolio.
Adjusted net investment income per share was $0.42.
Adjusted net loss per share was $0.30.
NAV per share was $16.27.
Increased third quarter base dividend per share to $0.42.
Forward Guidance
The Company announced that its Board of Directors has declared a $0.01 per share increase to its third quarter base dividend per share from $0.41 to $0.42 to shareholders of record as of September 15, 2022, payable on September 30, 2022.
Positive Outlook
- Increase reflects the Company’s updated view on forward earnings.
- Incorporates the anticipated positive impact of the interest rate environment on the Company’s income statement.
- Net asset value (NAV) per share was $16.27 at June 30, 2022
- No new portfolio companies were added to non-accrual during the quarter.
- The conversion election of approximately $79 million principal value of note holders and corresponding equity issuance translated to approximately $0.08 per share of accretion to the Company’s net asset value, which will be reflected in its Q3 financial results.
Challenges Ahead
- Adjusted net loss of $0.30 per share for the second quarter ended June 30, 2022.
- The Company’s net loss this quarter was primarily driven by unrealized losses from the impact of credit spread widening on the valuation of the Company’s portfolio.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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