NEW YORK, November 12, 2021– (BUSINESS WIRE) – Blackstone Secured Lending (NYSE: BXSL; “BXSL” or the “Company”) today announced its financial results for the third quarter ended September 30, 2021, with net investment income as of highest estimated range.
“We are proud to report strong third quarter financial results, including net investment income and increasing net asset value. This follows BXSL’s initial public offering, which represented BDC’s largest IPO in fifteen years and the largest ever increase in a BDC offering, ”said Brad Marshall, CEO of BXSL. “Our high quality portfolio, focused on senior secured loans with no non-accumulation loans, and active deployment during the quarter underscore the advantages of our size, expertise and market position. . We look forward to continuing to provide our investor clients as a public company.
Highlights for the third quarter of 2021
For the three months ended September 30, 2021, BXSL generated net investment income of $ 0.63 per share, up from $ 0.53 per share in the prior quarter and at the higher end of the range previously. estimated by the Company at $ 0.61 to $ 0.63. Net investment income, excluding capital gains incentive commissions, was $ 0.65 for the third quarter.
Net asset value per share increased to $ 26.15 at the end of the quarter from $ 25.92 at the end of the previous quarter, representing an increase of 0.9%, a quarterly total return of 2.8% and a total annualized return since inception of 10.0%.
BXSL paid a regular dividend in the third quarter of 2021 of $ 0.50 per share, which will increase to $ 0.53 per share, starting in the fourth quarter of 2021. The Company also intends to pay special dividends in 2022 for a total amount of $ 0.65 per share. All future distributions will be subject to funds legally available for that purpose, and the Company cannot guarantee that it will be able to declare such distributions in future periods.
More information, including the financial statements, can be found in the company’s 10-Q report, which was filed this morning.
Portfolio and investment activity
For the quarter ended September 30, 2021, new investment commitments totaled $ 2.4 billion, at par, and the fair value of BXSL’s investments increased to $ 8.2 billion at the end of the quarter, from $ 7.4 billion as of June 30, 2021. The equity ratio increased to 1.09x at the end of the quarter from 1.01x as of June 30, 2021, as the portfolio fully deployed.
During the third quarter of 2021, BXSL issued two unsecured bonds, a $ 650 million bond due 2028 with an interest rate of 2.85% and a $ 650 million bond due 2027 with a rate interest of 2.125%. As of September 30, 2021, 71% of all debt financed is unsecured borrowings.
Non-GAAP financial measures
BXSL discloses net investment income excluding any capital gains incentive commissions herein. Net investment income excluding capital gains incentive commissions is a financial measure that is calculated and presented using methodologies other than those consistent with accounting principles generally accepted in the United States of America (” GAAP ”).
Management believes that net investment income, excluding capital gains incentive commissions, provides useful information to consider in addition to net income determined in accordance with GAAP. This adjusted measure helps management assess performance excluding the effects of certain accrued liabilities and GAAP adjustments which, in the Company’s opinion, are not necessarily representative of transactions. Management believes that net investment income, excluding capital gains incentive commissions, is a useful financial measure for current and potential holders of Company shares, as the impact of capital gains incentive commissions is Uncrystallized capital is not included in taxable income. Presentation of net investment income excluding capital gains incentive commissions is not intended to substitute for financial results prepared in accordance with GAAP, should not be viewed in isolation and may not be comparable to published measures. by other companies.
About the Blackstone Secured Lending Fund
Blackstone Secured Lending Fund (BXSL) is a specialized finance company that invests primarily in the debt of private US companies. As of September 30, 2021, the fair value of BXSL’s investments was approximately $ 8.2 billion. BXSL elected to be regulated as a business development company under the Investment Companies Act 1940, as amended. BXSL is managed externally by Blackstone Credit BDC Advisors LLC, an SEC-registered investment adviser affiliated with Blackstone Inc. (formerly The Blackstone Group Inc.). Blackstone Inc., along with its subsidiaries, is one of the world’s leading investment firms with approximately $ 731 billion in assets under management as of September 30, 2021.
Statements included in this document may constitute “forward-looking statements”, which relate to future events or to the future performance or financial condition of BXSL. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties, including the impact of the COVID-19 pandemic and related changes in interest rates from base and significant market volatility on BXSL’s business, BXSL’s portfolio companies, industry and the global economy. Actual results and conditions may differ materially from forward-looking statements due to a number of factors, including those described from time to time in documents filed by BXSL with the Securities and Exchange Commission. BXSL does not undertake to update any forward-looking statements contained in this document.
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