Published on 8/8/2023 in the Prospect News Investment Grade Daily.
New Issue: Sixth Street Specialty Lending sells $300 million of 6.95% notes due 2028
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Aug. 8 – Sixth Street Specialty Lending, Inc. sold $300 million of 6.95% notes due Aug. 14, 2028 (Baa3/BBB-/BBB), according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.403 to yield 7.094%, or at a spread of 295 basis points over Treasuries after talk in the 320 bps area.
The notes have a make-whole call option at Treasuries plus 45 bps before July 14, 2028, followed by a par call option for the last month.
The notes will become putable at par plus interest if there is a change-of-control purchase event.
BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC are the bookrunners.
Proceeds will be used to pay a portion of the company’s revolving credit facility, totaling $1.71 billion in commitments as of June 30.
Sixth Street Specialty Lending is the direct credit investment platform of the global investment firm Sixth Street, which is based in Dallas.
| Issuer: | Sixth Street Specialty Lending, Inc.
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| Amount: | $300 million
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| Issue: | Notes
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| Maturity: | Aug. 14, 2028
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
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| Co-managers: | Keefe, Bruyette & Woods, Inc., Oppenheimer & Co. Inc., B. Riley Securities, Inc., Hovde Group, LLC, ICBC Standard Bank plc, Citizens JMP Securities, LLC, Ladenburg Thalmann & Co. Inc. and Raymond James & Associates, Inc.
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| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP, Proskauer Rose LLP and Morris, Nichols, Arsht & Tunnell LLP
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| Counsel to bookrunners: | Ropes & Gray LLP
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| Coupon: | 6.95%
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| Price: | 99.403
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| Yield: | 7.094%
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| Spread: | Treasuries plus 295 bps
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| Call features: | Make-whole call at Treasuries plus 45 bps before July 14, 2028; after at par
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| Change of control: | At par
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| Pricing date: | Aug. 7
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| Settlement date: | Aug. 14
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB
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| Price talk: | Treasuries plus 320 bps area
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| Cusip: | 83012AAB5
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