Sixth Street Specialty Lending Closes $300 Million 5.625% Notes Offering

Dallas, TX – On February 25, 2025, Sixth Street Specialty Lending, Inc. announced the closing of its offering of $300 million aggregate principal amount of 5.625% notes due 2030. The transaction was executed via a Second Supplemental Indenture entered into with U.S. Bank Trust Company, National Association, which supplements the existing Base Indenture.

The notes, which mature on August 15, 2030, bear interest at an annual rate of 5.625% payable on a semiannual basis, with the first interest payment scheduled for August 15, 2025. They are direct, unsecured obligations of the Company and are redeemable, in whole or in part, at the Company’s option at the prices specified in the Second Supplemental Indenture.

The net proceeds from the offering are expected to be used primarily to reduce the Company’s revolving credit facility debt. The transaction, which was offered and sold under the Company’s effective shelf registration statement on Form N-2, was supported by a preliminary prospectus supplement and a pricing term sheet filed on February 18, 2025. An underwriting agreement involving Sixth Street Specialty Lending, Sixth Street Specialty Lending Advisers, LLC, and BofA Securities, Inc. served as representatives for the underwriters engaged in the offering.

Key provisions of the indenture include certain covenants requiring the Company to comply with applicable sections of the Investment Company Act of 1940, as modified by subsequent SEC exemptive relief. Notably, the terms provide for a change of control repurchase event; should a change of control occur in conjunction with a below investment grade rating by major credit rating agencies, the Company would be obligated to offer to purchase the notes at 100% of the principal amount plus accrued interest.

Additional details, including the full text of the indentures and the underwriting agreement, are available in the exhibits filed with the report.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sixth Street Specialty Lending’s 8K filing here.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing.