Sixth Street Specialty Lending, Inc.

Previous wording

We are a specialty finance company focused on lending to middle-market companies. Since we began our investment activities in July 2011, through December 31, 2024, we have originated more than $46.2 billion aggregate principal amount of investments and retained approximately $10.9 billion aggregate principal amount of these investments on our balance sheet prior to any subsequent exits and repayments. We seek to generate current income primarily in U.S.-domiciled middle-market companies through direct investment originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds, equity securities, and other instruments.

Current wording

expected returns that are adjusted based on the levels of risk associated with the investments. Since we began our investment activities in July 2011, through December 31, 2025, we have originated more than $53.3 billion aggregate principal amount of investments and retained approximately $11.8 billion aggregate principal amount of these investments on our balance sheet prior to any subsequent exits and repayments. We seek to generate current income primarily in U.S.-domiciled middle-market companies through direct investment originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds, equity securities, and other instruments.

Previous wording

By “middle-market companies,” we mean companies that have annual EBITDA, which we believe is a useful proxy for cash flow, of $10 million to $250 million, although we may invest in larger or smaller companies on occasion. As of December 31, 2024, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 95.4% of our total investments based on fair value, had weighted average annual revenue of $336.0 million and weighted average annual EBITDA of $110.2 million. As of December 31, 2024, our core portfolio companies had a median annual revenue of $146.9 million and a median annual EBITDA of $53.1 million.

Current wording

By “middle-market companies,” we mean companies that have annual EBITDA, which we believe is a useful proxy for cash flow, of $10 million to $250 million, although we may invest in larger or smaller companies on occasion. As of December 31, 2025, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 87.9% of our total investments based on fair value, had weighted average annual revenue of $449.2 million and weighted average annual EBITDA of $127.3 million. As of December 31, 2025, our core portfolio companies had a median annual revenue of $159.4 million and a median annual EBITDA of $48.0 million.

Previous wording

The companies in which we invest use our capital to support organic growth, acquisitions, market or product expansion and recapitalizations (including restructurings). As of December 31, 2024, the largest single investment based on fair value represented 2.3% of our total investment portfolio.

Current wording

The companies in which we invest use our capital to support organic growth, acquisitions, market or product expansion and recapitalizations (including restructurings). As of December 31, 2025, the largest single investment based on fair value represented 2.4% of our total investment portfolio.

Previous wording

As of December 31, 2024, the average investment size in each of our portfolio companies was approximately $30.3 million based on fair value. Portfolio companies includes investments in structured credit investments, which include each series of collateralized loan obligation as a portfolio company investment. When excluding investments in structured credit investments, the average investment in our remaining portfolio companies was approximately $30.6 million as of December 31, 2024.

Current wording

As of December 31, 2025, the average investment size in each of our portfolio companies was approximately $23.4 million based on fair value. Portfolio companies includes investments in structured credit investments, which include each series of collateralized loan obligation as a portfolio company investment. When excluding investments in structured credit investments, the average investment in our remaining portfolio companies was approximately $30.4 million as of December 31, 2025.

Previous wording

As of December 31, 2024, the largest industry represented 16.4% of our total investment portfolio based on fair value.

Current wording

As of December 31, 2025, the largest industry represented 18.3% of our total investment portfolio based on fair value.

Previous wording

Investment Structuring. We focus on investing at the top of the capital structure and protecting that position. As of December 31, 2024, approximately 94.5% of our portfolio was invested in secured debt, including 93.9% in first-lien debt investments. We carefully perform diligence and structure investments to include strong investor covenants. As a result, we structure investments with a view to creating opportunities for early intervention in the event of non-performance or stress. In addition, we seek to retain effective voting control in investments over the loans or particular class of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We also aim for our loans to mature on a medium term, between two to seven years after origination. For the year ended December 31, 2024, the weighted average term on new investment commitments in new portfolio companies was 6.2 years.

Current wording

Investment Structuring. We focus on investing at the top of the capital structure and protecting that position. As of December 31, 2025, approximately 90.1% of our portfolio was invested in secured debt, including 89.2% in first-lien debt investments. We carefully perform diligence and structure investments to include strong investor covenants. As a result, we structure investments with a view to creating opportunities for early intervention in the event of non-performance or stress. In addition, we seek to retain effective voting control in investments over the loans or particular class of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We also aim for our loans to mature on a medium term, between two to seven years after origination. For the year ended December 31, 2025, the weighted average term on new investment commitments in new portfolio companies was 6.4 years.

Previous wording

Risk Mitigation. We seek to mitigate non-credit-related risk on our returns in several ways, including call protection provisions to protect future interest income. As of December 31, 2024, we had call protection on 73.9% of our debt investments based on fair value, with weighted average call prices of 107.8% for the first year, 104.3% for the second year and 101.7% for the third year, in each case from the date of the initial investment. As of December 31, 2024, 97.2% of our debt investments based on fair value bore interest at floating rates, with 100.0% of these subject to interest rate floors, which we believe helps act as a portfolio-wide hedge against inflation.

Current wording

Risk Mitigation. We seek to mitigate non-credit-related risk on our returns in several ways, including call protection provisions to protect future interest income. As of December 31, 2025, we had call protection on 78.9% of our debt investments based on fair value, with weighted average call prices of 107.9% for the first year, 104.3% for the second year and 101.7% for the third year, in each case from the date of the initial investment. As of December 31, 2025, 96.3% of our debt investments based on fair value bore interest at floating rates, with 100.0% of these subject to interest rate floors, which we believe helps act as a portfolio-wide hedge against inflation.

Previous wording

Our Adviser is a Delaware limited liability company. Our Adviser acts as our investment adviser and administrator and is a registered investment adviser with the SEC under the Advisers Act. Our Adviser sources and manages our portfolio through a dedicated team of investment professionals predominately focused on direct lending, which we refer to as our Investment Team. Our Investment Team is led by our Chairman and Chief Executive Officer and our Adviser’s Co-Chief Investment Officer Joshua Easterly and our Adviser’s Co-Chief Investment Officer Alan Waxman, both of whom have substantial experience in credit origination, underwriting and asset management. Our investment decisions are made by our Investment Review Committee, which includes senior personnel of our Adviser and affiliates of Sixth Street Partners, LLC, or “Sixth Street.”

Current wording

Our Adviser is a Delaware limited liability company. Our Adviser acts as our investment adviser and administrator and is a registered investment adviser with the SEC under the Advisers Act. Our Adviser sources and manages our portfolio through a dedicated team of investment professionals predominately focused on direct lending, which we refer to as our Investment Team. Our Investment Team is led by our Adviser’s Co-Founding Partner, Co-President and Co-Chief Investment Officer Joshua Easterly, our Co-Head of Sixth Street Direct Lending and Co-Head of Growth Robert “Bo” Stanley, Co-Head of Direct Lending Michael Griffin, and our Adviser’s Co-Founding Partner, Chief Executive Officer, and Co-Chief Investment Officer Alan Waxman, all of whom have substantial experience in credit origination, underwriting and asset management. Our investment decisions are made by our Investment Review Committee, which includes senior personnel of our Adviser and affiliates of Sixth Street Partners, LLC, or “Sixth Street.”

Previous wording

Sixth Street is a global investment business with over $100 billion of assets under management as of December 31, 2024. Sixth Street’s direct lending platforms include Sixth Street Specialty Lending and Sixth Street Lending Partners, which are aimed at U.S. upper middle-market loan originations, Sixth Street Specialty Lending Europe, which is aimed at European middle-market loan originations. Additional Sixth Street core platforms include Sixth Street TAO, which has the flexibility to invest across all of Sixth Street’s private credit market investments, Sixth Street Opportunities, which focuses on actively managed opportunistic investments across the credit cycle, Sixth Street Credit Market Strategies, which is the firm’s “public-side” credit investment platform focused on investment opportunities in broadly syndicated leveraged loan markets, Sixth Street Growth, which provides financing solutions to growing companies, Sixth Street Fundamental Strategies, which primarily invests in secondary credit, and Sixth Street Agriculture, which invests in niche agricultural opportunities. Sixth Street has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes. Sixth Street has extensive experience with highly complex, global public and private investments executed through primary originations, secondary market purchases and restructurings, and has a team of over 650 investment and operating professionals. As of December 31, 2024, seventy-two (72) of these personnel are dedicated to direct lending, including fifty-seven (57) investment professionals.

Current wording

Sixth Street is a global investment business with over $125 billion of assets under management as of December 31, 2025. Sixth Street’s direct lending platforms include Sixth Street Specialty Lending and Sixth Street Lending Partners, which are aimed at U.S. middle-market loan originations and upper middle-market loan originations, respectively, Sixth Street Specialty Lending Europe, which is aimed at European middle-market loan originations. Additional Sixth Street core platforms include Sixth Street TAO, which has the flexibility to invest across all of Sixth Street’s private credit market investments, Sixth Street Opportunities, which focuses on actively managed opportunistic investments across the credit cycle, Sixth Street Credit Market Strategies, which is the firm’s “public-side” credit investment platform focused on investment opportunities in broadly syndicated leveraged loan markets, Sixth Street Growth, which provides financing solutions to growing companies, Sixth Street Fundamental Strategies, which primarily invests in secondary credit, and Sixth Street Agriculture, which invests in niche agricultural opportunities. Sixth Street has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes. Sixth Street has extensive experience with highly complex, global public and private investments executed through primary originations, secondary market purchases and restructurings, and has a team of over 740 investment and operating professionals. As of December 31, 2025, seventy-eight (78) of these personnel are dedicated to direct lending, including sixty-three (63) investment professionals.

Previous wording

On December 16, 2014, we 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. On January 16, 2020, we filed a further application for co-investment exemptive relief with the SEC to better align our existing co-investment relief with more recent SEC exemptive orders. Subsequent further applications were also made, most recently as June 29, 2022. On August 3, 2022, the SEC granted the new order in response to our application.

Current wording

On May 6, 2025, we, 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, with certain of our affiliates (including affiliates of Sixth Street) in middle-market loan origination activities for companies domiciled in the United States.

Previous wording

We generate revenues primarily in the form of interest income from the investments we hold. In addition, we may generate income from dividends on direct equity investments, capital gains on the sale of investments and various loan origination and other fees. Our debt investments typically have a term of two to seven years, and, as of December 31, 2024, 97.2% of these investments based on fair value bore interest at a floating rate, with 100.0% of these subject to interest rate floors. Interest on debt investments is generally payable monthly or quarterly. Some of our investments provide for deferred interest payments or PIK interest. For the years ended December 31, 2024, 2023 and 2022, 6.1%, 4.5% and 4.1%, respectively, of our total investment income was comprised of PIK interest.

Current wording

We generate revenues primarily in the form of interest income from the investments we hold. In addition, we may generate income from dividends on direct equity investments, capital gains on the sale of investments and various loan origination and other fees. Our debt investments typically have a term of two to seven years, and, as of December 31, 2025, 96.3% of these investments based on fair value bore interest at a floating rate, with 100.0% of these subject to interest rate floors. Interest on debt investments is generally payable monthly or quarterly. Some of our investments provide for deferred interest payments or PIK interest. For the years ended December 31, 2025, 2024 and 2023, 5.7%, 6.1% and 4.5%, respectively, of our total investment income was comprised of PIK interest.

Previous wording

Changes in our net investment income are primarily driven by the spread between the payments we receive from our investments in our portfolio companies against our cost of funding, rather than by changes in interest rates. Our investment portfolio primarily consists of floating rate loans, and our Revolving Credit Facility, 2026 Notes 2028 Notes, and 2029 Notes after taking into account the effect of the interest rate swaps we have entered into in connection with these securities, all bear interest at floating rates. Macro trends in base interest rates like SOFR or other reference rates may affect our net investment income over the long term. However, because we generally originate loans to a limited number of portfolio companies each quarter, and those investments also vary in size, our results in any given period—including the interest rate on investments that were sold or repaid in a period compared to the interest rate of new investments made during that period—often are idiosyncratic, and reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business.

Current wording

Changes in our net investment income are primarily driven by the spread between the payments we receive from our investments in our portfolio companies against our cost of funding, rather than by changes in interest rates. Our investment portfolio primarily consists of floating rate loans, and our Revolving Credit Facility, 2026 Notes 2028 Notes, 2029 Notes, and 2030 Notes after taking into account the effect of the interest rate swaps we have entered into in connection with these securities, all bear interest at floating rates. Macro trends in base interest rates like SOFR or other reference rates may affect our net investment income over the long term. However, because we generally originate loans to a limited number of portfolio companies each quarter, and those investments also vary in size, our results in any given period—including the interest rate on investments that were sold or repaid in a period compared to the interest rate of new investments made during that period—often are idiosyncratic, and reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business.

Previous wording

As of December 31, 2024, our portfolio based on fair value consisted of 93.9% first-lien debt investments, 0.6% second-lien debt investments, 1.1% mezzanine debt investments, 4.4% equity and other investments and less than 0.1% structured credit investments. As of December 31, 2023, our portfolio based on fair value consisted of 91.3% first-lien debt investments, 1.1% second-lien debt investments, 1.2% mezzanine debt investments, 4.7% equity and other investments and 1.7% structured credit investments.

Current wording

As of December 31, 2025, our portfolio based on fair value consisted of 89.2% first-lien debt investments, 0.9% second-lien debt investments, 1.8% mezzanine debt investments, 5.2% equity and other investments and 2.9% structured credit investments. As of December 31, 2024, our portfolio based on fair value consisted of 93.9% first-lien debt investments, 0.6% second-lien debt investments, 1.1% mezzanine debt investments, 4.4% equity and other investments and less than 0.1% structured credit investments.

Previous wording

As of December 31, 2024 and December 31, 2023, our weighted average total yield of debt and income producing securities at fair value (which includes interest income and amortization of fees and discounts) was 12.3% and 14.1%, respectively, and our weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 12.5% and 14.2%, respectively.

Current wording

As of December 31, 2025 and December 31, 2024, our weighted average total yield of debt and income producing securities at fair value (which includes interest income and amortization of fees and discounts) was 11.1% and 12.3%, respectively, and our weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 11.3% and 12.5%, respectively.

Previous wording

As of December 31, 2024 and December 31, 2023, we had investments in 116 portfolio companies (including one structured credit investment, which include each series of collateralized loan obligation as a separate portfolio company investment) and 136 portfolio companies (including 42 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment), respectively, with an aggregate fair value of $3,518.4 million and $3,283.1 million, respectively.

Current wording

As of December 31, 2025 and December 31, 2024, we had investments in 143 portfolio companies (including 36 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment) and 116 portfolio companies (including one structured credit investment, which include each series of collateralized loan obligation as a separate portfolio company investment), respectively, with an aggregate fair value of $3,347.3 million and $3,518.4 million, respectively.

Previous wording

For the year ended December 31, 2023, the principal amount of new investments funded was $808.4 million in 30 new portfolio companies and 16 existing portfolio companies. For this period, we had $469.1 million aggregate principal amount in exits and repayments.

Current wording

For the year ended December 31, 2025, the principal amount of new investments funded was $894.0 million in sixty-five new portfolio companies and sixteen existing portfolio companies. For this period, we had $1,196.1 million aggregate principal amount in exits and repayments.

Previous wording

Weighted average total portfolio yield at fair value was 11.6% at December 31, 2024 and 13.4% at December 31, 2023.

Current wording

Weighted average total portfolio yield at fair value was 10.5% at December 31, 2025 and 11.6% at December 31, 2024.

Previous wording

A rating of 5 indicates an investment is in default on its interest and/or principal payments. For these investments, our Adviser reviews the investments on a bi-monthly basis and, where possible, pursues workouts that achieve an early resolution to avoid further deterioration of our investment. The Adviser retains legal counsel and takes actions to preserve our rights, which may include working with the portfolio company to have the default cured, to have the investment restructured or to have the investment repaid through a consensual workout.

Current wording

A rating of 5 indicates an investment is in default on its interest and/or principal payments. For these investments, our Adviser reviews the investments on a bi-monthly basis and, where possible, pursues workouts that achieve an early resolution to avoid further deterioration of our investment. The Adviser retains legal counsel and takes actions to preserve our rights, which may include working with the portfolio company to have the default cured, to have the investment restructured or to have the investment repaid through a consensual workout. Investments that carry a rating of 5 would typically indicate the position has been placed on non-accrual status (for investments that otherwise would be income producing).

Previous wording

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from $399.1 million for the year ended December 31, 2023 to $423.0 million for the year ended December 31, 2024. The increase in interest from investments was primarily the result of a larger average portfolio size for the year ended December 31, 2024 compared to the same period in 2023. Paid-in-kind interest income increased from $19.7 million for the year ended December 31, 2023 to $29.3 million for the year ended December 31, 2024 due to increased PIK election. Dividend income increased from $4.2 million for the year ended December 31, 2023 to $11.7 million for the year ended December 31, 2024 due to increased investments in dividend yielding securities in 2024. Other income increased from $15.1 million for the year ended December 31, 2023 to $18.5 million for the year ended December 31, 2024, primarily due to increased amendment and other miscellaneous fees earned during 2024.

Current wording

Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $423.0 million for the year ended December 31, 2024 to $400.8 million for the year ended December 31, 2025. The decrease in interest from investments was primarily the result of a decrease in reference rates for the year ended December 31, 2025 compared to 2024. Paid-in-kind interest income decreased from $29.3 million for the year ended December 31, 2024 to $25.6 million for the year ended December 31, 2025 due to decreased PIK election. Dividend income decreased from $11.7 million for the year ended December 31, 2024 to $2.3 million for the year ended December 31, 2025 due to decreased investments in dividend yielding securities in 2025. Other income increased from $18.5 million for the year ended December 31, 2024 to $20.3 million for the year ended December 31, 2025, primarily due to increased miscellaneous fees earned during 2025.

Previous wording

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from $285.0 million for the year ended December 31, 2022 to $399.1 million for the year ended December 31, 2023. The increase in interest from investments was primarily the result of an increase in interest earned due to an increase in reference rates for the year ended December 31, 2023 compared to the same period in 2022 and a larger average portfolio size for the year ended December 31, 2023 compared to the same period in 2022. Paid-in-kind interest income increased from $12.6 million for the year ended December 31, 2023 to $19.7 million for the year ended December 31, 2023 due to increased PIK election. Dividend income increased from $2.2 million for the year ended December 31, 2022 to $4.2 million for the year ended December 31, 2023 due to increased investments in dividend yielding securities in 2023. Other income increased from $9.5 million for the year ended December 31, 2022 to $15.1 million for the year ended December 31, 2023, primarily due to increased amendment and other miscellaneous fees earned during 2023.

Current wording

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from $399.1 million for the year ended December 31, 2023 to $423.0 million for the year ended December 31, 2024. The increase in interest from investments was primarily the result of a larger average portfolio size for the year ended December 31, 2024 compared to the same period in 2023. Paid-in-kind interest income increased from $19.7 million for the year ended December 31, 2023 to $29.3 million for the year ended December 31, 2024 due to increased PIK election. Dividend income increased from $4.2 million for the year ended December 31, 2023 to $11.7 million for the year ended December 31, 2024 due to increased investments in dividend yielding securities in 2024.

Previous wording

Interest expense, including other debt financing expenses, increased from $63.0 million for the year ended December 31, 2022 to $133.7 million for the year ended December 31, 2023. This increase was primarily due to an increase in the average interest rate on our debt outstanding and an increase in the average debt outstanding from $1,342.0 million for the year ended December 31, 2022 to $1,705.6 million for the year ended December 31, 2023. The average interest rate on our debt outstanding increased from 3.9% for the year ended December 31, 2022 to 7.3% for the year ended December 31, 2023 due to a change in the mix of our debt financing sources and a change in SOFR rates.

Current wording

Interest expense, including other debt financing expenses, decreased from $154.2 million for the year ended December 31, 2024 to $129.6 million for the year ended December 31, 2025. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding and a decrease in the average debt outstanding from $1,882.7 million for the year ended December 31, 2024 to $1,880.3 million for the year ended December 31, 2025. The average interest rate on our debt outstanding decreased from 7.5% for the year ended December 31, 2024 to 6.2% for the year ended December 31, 2025 due to a change in SOFR rates and the mix of our debt financing sources.

Previous wording

Interest expense, including other debt financing expenses, increased from $133.7 million for the year ended December 31, 2023 to $154.1 million for the year ended December 31, 2024. This increase was primarily due to an increase in the average interest rate on our debt outstanding and an increase in the average debt outstanding from $1,705.6 million for the year ended December 31, 2023 to $1,882.7 million for the year ended December 31, 2024. The average interest rate on our debt outstanding increased from 7.3% for the year ended December 31, 2023 to 7.5% for the year ended December 31, 2024 due to a change in the mix of our debt financing sources.

Current wording

Interest expense, including other debt financing expenses, increased from $133.7 million for the year ended December 31, 2023 to $154.1 million for the year ended December 31, 2024. This increase was primarily due to an increase in the average interest rate on our debt outstanding and an increase in the average debt outstanding from $1,705.6 million for the year ended December 31, 2023 $1,882.7 million for the year ended December 31, 2024. The average interest rate on our debt outstanding increased from 7.3% for the year ended December 31, 2023 to 7.5% for the year ended December 31, 2024 due to a change in the mix of our debt financing sources.

Previous wording

Management Fees (gross of waivers) increased from $39.9 million for the year ended December 31, 2022 to $46.4 million for the year ended December 31, 2023 due to an increase in average assets. Management Fees (net of waivers) increased from $39.5 million for the year ended December 31, 2022 to $45.2 million for the year ended December 31, 2023. Management Fees waived were $1.2 million for the year ended December 31, 2023, pursuant to the Leverage Waiver. Management Fees waived were $0.4 million for the year ended December 31, 2022 pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.

Current wording

Management Fees (gross of waivers) increased from $51.8 million for the year ended December 31, 2024 to $52.2 million for the year ended December 31, 2025 due to an increase in average assets. Management Fees (net of waivers) increased from $50.3 million for the year ended December 31, 2024 to $50.9 million for the year ended December 31, 2025. Management Fees waived were $1.3 million for the year ended December 31, 2025 and $1.5 million for the year ended December 31, 2024, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.

Previous wording

For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, Incentive Fees were $40.2 million, $47.0 million and $24.5 million, respectively, of which $45.5 million, $42.6 million, and $33.4 million, respectively, were realized and payable to the Adviser. The increase in Incentive Fees from 2023 to 2024 was primarily due to a larger average portfolio size for the year ended December 31, 2024 compared to the same period in 2023. For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, $(5.4) million, $4.4 million, and $(8.9) million, respectively, of Incentive Fees were accrued related to Capital Gains Fees. As of December 31, 2024, these accrued Incentive Fees are not contractually payable to the Adviser.

Current wording

For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, Incentive Fees were $38.4 million, $40.2 million and $47.0 million, respectively, of which $43.5 million, $45.5 million, and $42.6 million, respectively, were realized and payable to the Adviser. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, $(5.1) million, $(5.4) million, and $4.4 million, respectively, of Incentive Fees were accrued related to Capital Gains Fees. As of December 31, 2025, these accrued Incentive Fees are not contractually payable to the Adviser.

Previous wording

Professional fees increased from $7.2 million for the year ended December 31, 2022 to $7.3 million for the year ended December 31, 2023 due to higher legal fees, higher independent third-party valuation firm fees and higher sub-agent administration costs due to a larger portfolio. Other general and administrative fees decreased from $5.5 million for the year ended December 31, 2022 to $5.3 million for the year ended December 31, 2023 primarily driven by a decrease in administrative services incurred under the Administration Agreement.

Current wording

Professional fees increased from $7.5 million for the year ended December 31, 2024 to $8.3 million for the year ended December 31, 2025 due to higher legal and audit related fees. Other general and administrative fees increased from $5.5 million for the year ended December 31, 2024 to $5.6 million for the year ended December 31, 2025.

Previous wording

For the calendar years ended December 31, 2024, December 31, 2023 and December 31, 2022 we recorded a net expense of $3.9 million, $2.4 million and $2.6 million, respectively, for U.S. federal excise tax and other taxes.

Current wording

For the calendar years ended December 31, 2025, December 31, 2024 and December 31, 2023 we recorded a net expense of $5.3 million, $3.9 million and $2.4 million, respectively, for U.S. federal excise tax and other taxes.

Previous wording

For the years ended December 31, 2024, December 31, 2023, and December 31, 2022, we had net realized gains on investments of $9.0 million, $12.2 million and $14.7 million, respectively. For the year ended December 31, 2024, we had net realized losses of $1.2 million, for the year ended December 31, 2023, we had net realized gains of $0.2 million and for the year ended December 31, 2022, we had net realized losses of $0.1 million, respectively, on foreign currency transactions, primarily as a result of translating foreign currency related to our non-USD denominated investments. For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, we had net realized losses on foreign currency investments of $4.3 million, $0.5 million and $0.7 million, respectively. For the years ended December 31, 2024, December 31, 2023, and December 31, 2022, we had net realized gains on foreign currency borrowings of $5.1 million, $0.5 million and $0.5 million, respectively. The net realized gains on foreign currency borrowings were a result of payments on our revolving credit facility. For the years ended December 31, 2024 and December 31, 2023 there was no net realized gain or loss on interest rate swaps, respectively, and for the year ended December 31, 2022 there was a net realized gain of $2.3 million on interest rate swaps.

Current wording

For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we had net realized losses on investments of $47.4 million, net realized gains of $9.0 million and net realized gains of $12.2 million, respectively. For the year ended December 31, 2025, we had net realized gains of $0.6 million, for the year ended December 31, 2024, we had net realized losses of $1.2 million and for the year ended December 31, 2023, we had net realized gains of $0.2 million, respectively, on foreign currency transactions, primarily as a result of translating foreign currency related to our non-USD denominated investments. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, we had net realized gains of $1.1 million, net realized losses of $4.3 million and net realized losses $0.5 million, respectively, on foreign currency investments. For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we had net realized losses of $2.2 million, net realized gains of $5.1 million and net realized gains of $0.5 million, respectively, on foreign currency borrowings. The net realized gains and losses on foreign currency borrowings were a result of payments on our revolving credit facility. For the year ended December 31, 2025 we recognized a tax expense of $0.9 million pertaining to net realized gains.

Previous wording

For the year ended December 31, 2024, we had unrealized gains on foreign currency borrowings of $13.4 million, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the years ended December 31, 2023 and 2022, we had an unrealized loss on foreign currency borrowings of $6.0 million and an unrealized gain on foreign currency borrowings of $8.4 million, respectively, primarily as a result of fluctuations in the AUD, CAD, GBP and EUR exchange rates. For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, we had unrealized losses of less than $0.1 million, unrealized loss of $0.3 million, and an unrealized gain of $0.3 million, respectively, on foreign currency cash. For the year ended December 31, 2024, December 31, 2023 and December 31, 2022, we had no unrealized gains or losses on interest rate swaps, an unrealized gain on interest swaps of $0.1 million and an unrealized loss on interest swaps of $6.6 million, respectively, due to fluctuations in interest rates.

Current wording

For the year ended December 31, 2025, we had unrealized losses on foreign currency borrowings of $35.9 million, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the years ended December 31, 2024 and 2023, we had an unrealized gain on foreign currency borrowings of $13.4 million and an unrealized loss on foreign currency borrowings of $6.0 million, respectively, primarily as a result of fluctuations in the AUD, CAD, GBP and EUR exchange rates. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, we had unrealized losses of less than $0.1 million, less than $0.1 million, and $0.3 million, respectively, on foreign currency transactions. For the years ended December 31, 2025 and December 31, 2024, we had no unrealized gains or losses on interest rate swaps. For the year ended December 31, 2023 we had an unrealized gain on interest rate swaps of $0.1 million, due to fluctuations in interest rates.

Previous wording

Since we began investing in 2011 through December 31, 2024, weighted by capital invested, our exited investments have generated an average realized gross internal rate of return to us of 17.1% (based on total capital invested of $7.9 billion and total proceeds from these exited investments of $10.0 billion). Ninety-two percent of these exited investments resulted in a realized gross internal rate of return to us of 10% or greater.

Current wording

Since we began investing in 2011 through December 31, 2025, weighted by capital invested, our exited investments have generated an average realized gross internal rate of return to us of 17.1% (based on total capital invested of $9.1 billion and total proceeds from these exited investments of $11.7 billion). Ninety-two percent of these exited investments resulted in a realized gross internal rate of return to us of 10% or greater.

Previous wording

Our current approach to hedging the foreign currency exposure in our non-U.S. dollar denominated investments is primarily to borrow the par amount in local currency under our Revolving Credit Facility to fund these investments. For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, we had $13.4 million of unrealized gains, $6.0 million of unrealized losses and $8.4 million of unrealized gains, respectively, on the translation of our non-U.S. dollar denominated debt into U.S. dollars; such amounts approximate the corresponding unrealized gains and losses on the translation of our non-U.S. dollar denominated investments into U.S. dollars for the years ended December 31, 2024, December 31, 2023 and December 31, 2022. See Note 2 for additional disclosure regarding our accounting for foreign currency. See Note 7 for additional disclosure regarding the amounts of outstanding debt denominated in each foreign currency at December 31, 2024. See our Consolidated Schedule of Investments for additional disclosure regarding the foreign currency amounts (in both par and fair value) of our non-U.S. dollar denominated investments.

Current wording

Our current approach to hedging the foreign currency exposure in our non-U.S. dollar denominated investments is primarily to borrow the par amount in local currency under our Revolving Credit Facility to fund these investments. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, we had $35.9 million of unrealized losses, $13.4 million of unrealized gains and $6.0 million of unrealized losses, respectively, on the translation of our non-U.S. dollar denominated debt into U.S. dollars; such amounts approximate the corresponding unrealized gains and losses on the translation of our non-U.S. dollar denominated investments into U.S. dollars for the years ended December 31, 2025, December 31, 2024 and December 31, 2023. See Note 2 for additional disclosure regarding our accounting for foreign currency. See Note 7 for additional disclosure regarding the amounts of outstanding debt denominated in each foreign currency at December 31, 2025. See our Consolidated Schedule of Investments for additional disclosure regarding the foreign currency amounts (in both par and fair value) of our non-U.S. dollar denominated investments.

Previous wording

We intend to continue to generate cash primarily from cash flows from operations, future borrowings and future offerings of securities. We may from time to time enter into additional debt facilities, increase the size of existing facilities or issue debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock if immediately after the borrowing or issuance our ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 150%. For more information, see “Key Components of Our Results of Operations — Leverage” above. As of December 31, 2024, December 31, 2023 and December 31, 2022, our asset coverage ratio was 182.5%, 181.6%, and 188.6%, respectively. We carefully consider our unfunded commitments for the purpose of planning our capital resources and ongoing liquidity, including our financial leverage. Further, we maintain sufficient borrowing capacity within the 150% asset coverage limitation under the 1940 Act and the asset coverage limitation under our credit facilities to cover any outstanding unfunded commitments we are required to fund.

Current wording

We intend to continue to generate cash primarily from cash flows from operations, future borrowings and future offerings of securities. We may from time to time enter into additional debt facilities, increase the size of existing facilities or issue debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock if immediately after the borrowing or issuance our ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 150%. For more information, see “Key Components of Our Results of Operations — Leverage” above. As of December 31, 2025 and December 31, 2024, our asset coverage ratio was 191.5% and 182.5%, respectively. We carefully consider our unfunded commitments for the purpose of planning our capital resources and ongoing liquidity, including our financial leverage. Further, we maintain sufficient borrowing capacity within the 150% asset coverage limitation under the 1940 Act and the asset coverage limitation under our credit facilities to cover any outstanding unfunded commitments we are required to fund.

Previous wording

Cash and cash equivalents as of December 31, 2024, taken together with cash available under our credit facilities, is expected to be sufficient for our investing activities and to conduct our operations in the near term. As of December 31, 2024, we had approximately $0.7 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.

Current wording

Cash and cash equivalents as of December 31, 2025, taken together with cash available under our credit facilities, is expected to be sufficient for our investing activities and to conduct our operations in the near term. As of December 31, 2025, we had approximately $1.1 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.

Previous wording

As of December 31, 2024, we had $22.4 million restricted cash pledged as collateral under our interest rate swap agreements, compared to $24.0 million for the year ended December 31, 2023.

Current wording

As of December 31, 2025, we had $16.7 million restricted cash pledged as collateral under our interest rate swap agreements, compared to $22.4 million for the year ended December 31, 2024.

Previous wording

During the years ended December 31, 2024 and December 31, 2023, we issued 1,231,937 and 1,265,212 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $24.7 million and $23.5 million, respectively.

Current wording

During the years ended December 31, 2025 and December 31, 2024, we issued 1,043,714 and 1,231,937 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $22.5 million and $24.7 million, respectively.

Previous wording

On August 4, 2015, our Board authorized us to acquire up to $50 million in aggregate of our common stock from time to time over an initial six month period, and has continued to authorize the refreshment of the $50 million amount authorized under and extension of the stock repurchase program prior to its expiration since that time, most recently as of November 4, 2024. The amount and timing of stock repurchases under the program may vary depending on market conditions, and no assurance can be given that any particular amount of common stock will be repurchased.

Current wording

On August 4, 2015, our Board authorized us to acquire up to $50 million in aggregate of our common stock from time to time over an initial six month period, and has continued to authorize the refreshment of the $50 million amount authorized under and extension of the stock repurchase program prior to its expiration since that time, most recently as of November 4, 2025 (expiring on May 31, 2026). Under the program, we may repurchase up to $50 million in the aggregate of our outstanding common stock in the open market, from time to time, at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The amount and timing of stock repurchases under the program may vary depending on market conditions, and no assurance can be given that any particular amount of common stock will be repurchased.

Previous wording

For the year ended December 31, 2024 and December 31, 2023, no shares were repurchased.

Current wording

For the years ended December 31, 2025 and December 31, 2024, no shares were repurchased.

Previous wording

On August 23, 2012, we entered into a senior secured revolving credit agreement with Truist Bank (as a successor by merger to SunTrust Bank), as administrative agent, and J.P. Morgan Chase Bank, N.A., as syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).

Current wording

On August 23, 2012, we entered into a senior secured revolving credit agreement with Truist Bank (as a successor by merger to SunTrust Bank), as administrative agent, and J.P. Morgan Chase Bank, N.A., as a syndication agent, and certain other lenders (as amended and restated, the “Revolving Credit Facility”).

Previous wording

As of December 31, 2024, aggregate commitments under the facility were $1.7 billion. The facility includes an uncommitted accordion feature that allows the Company, under certain circumstances, to increase the size of the facility to up to $2.0 billion.

Current wording

As of December 31, 2025, aggregate commitments under the Revolving Credit Facility were $1.675 billion. The Revolving Credit Facility includes an uncommitted accordion feature that allows us, under certain circumstances, to increase the size of the Revolving Credit Facility to up to $2.5 billion.

Previous wording

Pursuant to the Fifteenth Amendment dated April 24, 2024, aggregate commitments were increased to $1.7 billion. With respect to $1.505 billion of commitments, the revolving period was extended to April 24, 2028 and the stated maturity was extended to April 24, 2029. For the remaining $195.0 million of commitments, (A) with respect to $25.0 million of commitments, the revolving period ends on February 4, 2025 and the stated maturity is February 4, 2026 and (B) with respect to $170.0 million of commitments, the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027.

Current wording

Pursuant to the Fifteenth Amendment dated April 24, 2024, aggregate commitments were increased to $1.7 billion. With respect to $1.505 billion of commitments, the revolving period was extended to April 24, 2028 and the stated maturity was extended to April 24, 2029. For the remaining $195.0 million of commitments, (A) with respect to $25.0 million of commitments, the revolving period ended on February 4, 2025 and the stated maturity is February 4, 2026 and (B) with respect to $170.0 million of commitments, the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027.

Previous wording

Pursuant to the Fourteenth Amendment, with respect to $1.465 billion in commitments, the revolving period, during which period the Company, subject to certain conditions, may make borrowings under the facility, was extended to June 11, 2027 and the stated maturity date was extended to June 12, 2028. For the remaining $245.0 million of commitments, (A) with respect to $25.0 million of commitments, the revolving period ends January 31, 2024 and the stated maturity is January 31, 2025, and (B) with respect to $50.0 million of commitments, the revolving period ends on February 4, 2025 and the stated maturity is February 4, 2026 and (C) with respect to $170.0 million of commitments, the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027.

Current wording

Pursuant to the Sixteenth Amendment dated March 4, 2025, with respect to $1.525 billion of commitments, the revolving period, during which period we, subject to certain conditions, may make borrowings under the Revolving Credit Facility, was extended to March 2, 2029 and the stated maturity was extended to March 4, 2030. For the remaining $150.0 million of commitments the revolving period ends April 24, 2026 and the stated maturity is April 23, 2027.