Sixth Street Lending Partners ("SSLP") is an externally managed, closed-end, non-diversified management investment company. Founded in 2022, we have elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940 (the “1940 Act”), and treated as a regulated investment company, or RIC, for U.S. federal income tax purposes. For more information, please visit our Company Profile page.
SSLP and TSLX are business development companies managed by Sixth Street that pursue the direct lending investment strategy, primarily in the U.S. SSLP is focused on lending to upper middle-market companies while TSLX is focused on lending to core middle-market companies. SSLP and TSLX have the same management teams and significant overlap between boards of directors/trustees, and both benefit from the resources across the broader Sixth Street platform.
Sixth Street Lending Partners is a closed-end, non-traded, private BDC. The Company raised approximately $7.4 billion of largely institutional equity capital commitments during its fundraising period from June 2022 to December 2023. The fund held its final close in December 2023 and is no longer accepting new equity capital commitments.
Equity investors are required to fund capital contributions to purchase shares each time we deliver a drawdown notice. At the earlier of (i) an exchange listing and (ii) five years following the final closing date (December 22, 2023), investors will be released from any further obligation to purchase additional shares, with certain limited exceptions, as described in SSLP’s offering documents. There are no redemption rights for equity investors in SSLP.
Since SSLP has made the election to be treated as a BDC, it is subject to the disclosure requirements of the Securities and Exchange Act of 1934 (the “Exchange Act”), including (but not limited to), the filing of quarterly financial statements on Form 10-Q, the filing of audited annual financial statements on Form 10-K, and the current disclosure of certain other matters on Form 8-K.
As a BDC, SSLP is subject to the applicable requirements of the 1940 Act. Because SSLP is registered under the Exchange Act, it is also subject to the disclosure and reporting requirements of the Exchange Act.
The ticker for Sixth Street Lending Partner’s bonds is “SIXSLP”. The CUSIP number for Sixth Street Lending Partner’s senior unsecured notes due 2029 is 829932AA0 and senior unsecured notes due 2030 is 829932AC6
Yes, Sixth Street Lending Partner’s bonds hold investment grade ratings of Baa3 (stable) from Moody’s and BBB- (stable) from Fitch.
No, after pricing the bond deal for investors, Sixth Street Lending Partners enters into an interest rate swap to align the interest rate of its fixed rate unsecured bond with its investment portfolio, which consists of predominately floating rate loans.
BDCs are required to meet an “asset coverage ratio,” prescribed by the 1940 Act. The asset coverage ratio is the ratio of the total assets of the BDC to total “senior securities” of the BDC, which includes borrowings and any preferred stock. The 1940 Act requires BDCs to maintain an asset coverage ratio of at least 150%, which is equivalent to a 2:1 debt-to-equity ratio. Sixth Street’s target leverage range for SSLP, measured on a debt-to-equity basis, is 0.90x to 1.25x (equivalent to an asset coverage ratio of approximately 180% to approximately 211%, which is in excess of the 1940 Act’s requirements).
Sixth Street Lending Partners generally intends to invest its portfolio such that, once the portfolio is fully invested, individual investments comprise between 2.5% and 3.0% of the portfolio, and the top ten investments in the portfolio by position size will make up between 25% and 30% of the portfolio.
You can request information via our Contact page, or by contacting Investor Relations by email at irsslp@sixthstreet.com.
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KPMG LLP.
On August 3, 2022, Sixth Street Lending Partners, its investment adviser (Sixth Street Lending Partners Advisers, LLC, referred to herein as 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 and to the extent the size of an investment opportunity exceeds the amount our Adviser has independently determined is appropriate to invest, with certain of our affiliates (including affiliates of Sixth Street) in middle-market loan origination activities for companies domiciled in the United States and certain “follow-on” investments in companies in which we have already co-invested pursuant to the order and remain invested. 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.