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 September 30, 2025, we have originated approximately $51.8 billion aggregate principal amount of investments and retained approximately $11.6 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

We are a specialty finance company focused on lending to middle-market companies. Since we began our investment activities in July 2011, through March 31, 2026, we have originated approximately $55.2 billion aggregate principal amount of investments and retained approximately $11.9 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.

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 September 30, 2025, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 87.8% of our total investments based on fair value, had weighted average annual revenue of $375.9 million and weighted average annual EBITDA of $113.3 million. As of September 30, 2025, our core portfolio companies had a median annual revenue of $150.0 million and a median annual EBITDA of $46.4 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 March 31, 2026, our core portfolio companies, which exclude certain investments that fall outside of our typical borrower profile and represent 87.8% of our total investments based on fair value, had weighted average annual revenue of $425.1 million and weighted average annual EBITDA of $126.8 million. As of March 31, 2026, our core portfolio companies had a median annual revenue of $174.4 million and a median annual EBITDA of $53.5 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 September 30, 2025, 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 March 31, 2026, the largest single investment based on fair value represented 2.4% of our total investment portfolio.

Previous wording

As of September 30, 2025, the average investment size in each of our portfolio companies was approximately $23.3 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 $30.3 million based on fair value as of September 30, 2025.

Current wording

As of March 31, 2026, the average investment size in each of our portfolio companies was approximately $23.2 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 $30.1 million based on fair value as of March 31, 2026.

Previous wording

As of September 30, 2025, the largest industry represented 18.0% of our total investment portfolio based on fair value.

Current wording

As of March 31, 2026, 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 September 30, 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 three months ended September 30, 2025, the weighted average term on new investment commitments in new portfolio companies was 7.8 years.

Current wording

Investment Structuring. We focus on investing at the top of the capital structure and protecting that position. As of March 31, 2026, approximately 90.2% of our portfolio was invested in secured debt, including 89.3% 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 three months ended March 31, 2026, the weighted average term on new investment commitments in new portfolio companies was 6.3 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 September 30, 2025, we had call protection on 76.4% of our debt investments based on fair value, with weighted average call prices of 108.3% for the first year, 104.4% for the second year and 101.8% for the third year, in each case from the date of the initial investment. As of September 30, 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.

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 March 31, 2026, we had call protection on 72.7% of our debt investments based on fair value, with weighted average call prices of 108.1% 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 March 31, 2026, 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 $115 billion of assets under management as of September 30, 2025. 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 730 investment and operating professionals. As of September 30, 2025, seventy-nine (79) of these personnel are dedicated to direct lending, including sixty-five (65) investment professionals.

Current wording

Sixth Street is a global investment business with over $130 billion of assets under management as of March 31, 2026. 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 750 investment and operating professionals. As of March 31, 2026, seventy-three (73) of these personnel are dedicated to direct lending, including fifty-nine (59) investment professionals.

Previous wording

Further contributing to economic uncertainty, the current U.S. presidential administration has signaled its intention to implement, and has started to implement, significant changes to U.S. trade policy, the size of the federal government, tax policy and the enforcement of various regulations. These policy shifts could introduce additional market instability and reduce investor confidence. For example, the U.S. government recently announced tariffs on goods imported from various countries to the United States. Countries subject to such tariffs have imposed, or may in the future, impose reciprocal or retaliatory tariffs and other trade measures. We are actively monitoring the tariff developments and analyzing the potential impacts on our business, the businesses of our portfolio companies and the broader economic environment. In light of these developments, there can be no assurances that political and regulatory conditions will not worsen and/or adversely affect the Company, its portfolio companies or their respective financial performance.

Current wording

Further contributing to economic uncertainty, the current U.S. presidential administration has signaled its intention to implement, and has started to implement, significant changes to U.S. trade policy, the size of the federal government, tax policy and the enforcement of various regulations. These policy shifts could introduce additional market instability and reduce investor confidence. For example, the U.S. government announced tariffs on goods imported from various countries to the United States and countries subject to such tariffs have imposed, or may in the future, impose reciprocal or retaliatory tariffs and other trade measures. We are actively monitoring macroeconomic developments and analyzing the potential impacts on our business, the businesses of our portfolio companies and the broader economic environment. In light of these developments, there can be no assurances that political and regulatory conditions will not worsen and/or adversely affect the Company, its portfolio companies or their respective financial performance.

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 September 30, 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 three and nine months ended September 30, 2025, 6.3% and 5.3%, respectively, of our total investment income was comprised of PIK interest. For the three and nine months ended September 30, 2024, 5.2% and 6.6%, 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 March 31, 2026, 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 three months ended March 31, 2026 and 2025, 7.5% and 4.6%, respectively, of our total investment income was comprised of PIK interest.

Previous wording

This market dynamic is further exacerbated by the specialized due diligence and underwriting capabilities, as well as extensive ongoing monitoring, required for middle-market lending. We believe middle-market lending is generally more labor-intensive than lending to larger companies due to smaller investment sizes and the lack of publicly available information on these companies. As a result, the opportunities for dedicated private lenders such as us has continued to expand.

Current wording

This market dynamic is further exacerbated by the specialized due diligence and underwriting capabilities, as well as extensive ongoing monitoring, required for middle-market lending. We believe middle-market lending is generally more labor-intensive than lending to larger companies due to smaller investment sizes and the lack of publicly available information on these companies. As a result, the opportunities for dedicated private lenders such as us have continued to expand.

Previous wording

As of September 30, 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 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.

Current wording

As of March 31, 2026, our portfolio based on fair value consisted of 89.3% first-lien debt investments, 1.0% second-lien debt investments, 1.9% mezzanine debt investments, 4.6% equity investments, 2.8% structured credit investments and 0.4% joint venture investments. 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.

Previous wording

As of September 30, 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 11.4% 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 11.7% and 12.5%, respectively.

Current wording

As of March 31, 2026 and December 31, 2025, 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 11.1%, 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 11.2% and 11.3%, respectively.

Previous wording

As of September 30, 2025, we had investments in 145 portfolio companies (including 37 structured credit investments, which include each series of collateralized loan obligation as a separate portfolio company investment) with an aggregate fair value of $3,376.3 million. As of December 31, 2024, 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) with an aggregate fair value of $3,518.4 million.

Current wording

As of March 31, 2026, 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) with an aggregate fair value of $3,313.4 million. As of December 31, 2025, 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) with an aggregate fair value of $3,347.3 million.

Previous wording

For the three months ended September 30, 2024, the principal amount of new investments funded was $189.0 million in eight new portfolio companies and four existing portfolio companies. For this period, we had $90.2 million aggregate principal amount in exits and repayments.

Current wording

For the three months ended March 31, 2026, the principal amount of new investments funded was $134.8 million in three new portfolio companies and four existing portfolio companies. For this period, we had $113.0 million aggregate principal amount in exits and repayments.

Previous wording

For the three months ended September 30, 2025, the principal amount of new investments funded was $351.8 million in forty-one new portfolio companies and five existing portfolio companies. For this period, we had $302.8 million aggregate principal amount in exits and repayments.

Current wording

For the three months ended March 31, 2025, the principal amount of new investments funded was $136.8 million in six new portfolio companies and four existing portfolio companies. For this period, we had $269.6 million aggregate principal amount in exits and repayments.

Previous wording

Weighted average total portfolio yield at fair value was 10.8% at September 30, 2025 and 11.6% at December 31, 2024.

Current wording

Weighted average total portfolio yield at fair value was 10.5% at March 31, 2026 and 10.5% at December 31, 2025.

Previous wording

Operating results for the three and nine months ended September 30, 2025 and 2024 were as follows:

Current wording

Operating results for the three months ended March 31, 2026 and 2025 were as follows:

Previous wording

Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $105.8 million for the three months ended September 30, 2024 to $94.9 million for the three months ended September 30, 2025. The decrease in interest from investments was primarily the result of a decrease in reference rates for the three months ended September 30, 2025 compared to the same period in 2024. Paid-in-kind interest income increased from $6.2 million for the three months ended September 30, 2024 to $6.9 million for the three months ended September 30, 2025 due to increased PIK investments. Dividend income decreased from $3.3 million for the three months ended September 30, 2024 to $0.3 million for the three months ended September 30, 2025 due to the timing of dividend payments in 2025. Other income increased from $3.9 million for the three months ended September 30, 2024 to $7.4 million for the three months ended September 30, 2025, primarily due to increased miscellaneous fees earned during the three months ended September 30, 2025.

Current wording

Interest from investments, which includes amortization of upfront fees and prepayment fees, decreased from $106.6 million for the three months ended March 31, 2025 to $83.8 million for the three months ended March 31, 2026. The decrease in interest from investments was primarily the result of a decrease in reference rates for the three months ended March 31, 2026 compared to the same period in 2025. Paid-in-kind interest income increased from $5.4 million for the three months ended March 31, 2025 to $7.0 million for the three months ended March 31, 2026 due to increased PIK investments. Dividend income decreased from $0.9 million for the three months ended March 31, 2025 to $0.4 million for the three months ended March 31, 2026 due to the timing of dividend payments in 2025. Other income decreased from $3.4 million for the three months ended March 31, 2025 to $2.2 million for the three months ended March 31, 2026, primarily due to decreased miscellaneous fees earned during the three months ended March 31, 2026.

Previous wording

Operating expenses for the three and nine months ended September 30, 2025 and 2024 were as follows:

Current wording

Operating expenses for the three months ended March 31, 2026 and 2025 were as follows:

Previous wording

Interest expense, including other debt financing expenses, decreased from $38.5 million for the three months ended September 30, 2024 to $31.4 million for the three months ended September 30, 2025. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding, which decreased from 7.7% for the three months ended September 30, 2024 to 6.3% for the three months ended September 30, 2025 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 $33.0 million for the three months ended March 31, 2025 to $28.3 million for the three months ended March 31, 2026. This decrease was primarily due to a decrease in the average interest rate on our debt outstanding, which decreased from 6.4% for the three months ended March 31, 2025 to 5.5% for the three months ended March 31, 2026 due to a change in the mix of our debt financing sources and a change in SOFR rates.

Previous wording

Management Fees (gross of waivers) increased from $13.0 million for the three months ended September 30, 2024 to $13.1 million for the three months ended September 30, 2025 due to an increase in average assets. Management Fees (net of waivers) increased from $12.7 million for the three months ended September 30, 2024 to $12.8 million for the three months ended September 30, 2025. Management Fees waived were $0.3 million for the three months ended September 30, 2025 and $0.3 million for the three months ended September 30, 2024, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.

Current wording

Management Fees (gross of waivers) decreased from $13.1 million for the three months ended March 31, 2025 to $12.6 million for the three months ended March 31, 2026 due to a decrease in average assets. Management Fees (net of waivers) decreased from $12.7 million for the three months ended March 31, 2025 to $12.3 million for the three months ended March 31, 2026. Management Fees waived were $0.3 million for the three months ended March 31, 2026 and $0.4 million for the three months ended March 31, 2025, pursuant to the Leverage Waiver. Any waived management fees are not subject to recoupment by the Adviser.

Previous wording

For the three months ended September 30, 2025 and 2024, Incentive Fees were $9.5 million and $8.9 million, respectively, of which $10.5 million and $11.2 million, respectively, were realized and payable to the Adviser. For the three months ended September 30, 2025 and 2024, $(1.1) million and $(2.2) million, respectively, of Incentive Fees were accrued related to Capital Gains Fees. As of September 30, 2025, these accrued Incentive Fees are not contractually payable to the Adviser.

Current wording

For the three months ended March 31, 2026 and 2025, Incentive Fees were $8.5 million and $7.8 million, respectively, of which $8.5 million and $11.5 million, respectively, were realized and payable to the Adviser. For the three months ended March 31, 2026 there were no Incentive Fees accrued related to Capital Gains Fees. For the three months ended March 31, 2025 $(3.7) million of Incentive Fees were accrued related to Capital Gains Fees. As of March 31, 2026, these accrued Incentive Fees are not contractually payable to the Adviser.

Previous wording

Professional fees increased from $1.9 million for the three months ended September 30, 2024 to $2.0 million for the three months ended September 30, 2025 due to higher legal and audit related fees. Other general and administrative fees were $1.3 million for the three months ended September 30, 2024 and $1.5 million for the three months ended September 30, 2025.

Current wording

Professional fees decreased from $2.0 million for the three months ended March 31, 2025 to $1.7 million for the three months ended March 31, 2026 due to lower independent third-party valuation firm and sub-agent administration costs. Other general and administrative fees were $1.3 million for the three months ended March 31, 2025 and $1.4 million for the three months ended March 31, 2026.

Previous wording

For the three and nine months ended September 30, 2025, we recorded a net expense of $1.4 million and $4.0 million, respectively, for U.S. federal excise tax and other taxes. For the three and nine months ended September 30, 2024, we recorded a net expense of $0.7 million and $2.8 million, respectively, for U.S. federal excise tax and other taxes.

Current wording

For the three months ended March 31, 2026 and 2025, we recorded a net expense of $1.2 million and $1.4 million, respectively, for U.S. federal excise tax and other taxes.

Previous wording

The following table summarizes our net realized and unrealized gains (losses) for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table summarizes our net realized and unrealized gains (losses) for the three months ended March 31, 2026 and 2025:

Previous wording

For the three and nine months ended September 30, 2024, we had net realized gains on investments of $0.1 million and $3.9 million, respectively, primarily driven by one investment and thirty-seven investments, respectively. For the three and nine months ended September 30, 2024, we had net realized losses of less than $0.1 million and $0.8 million, respectively on foreign currency transactions, primarily as a result of translating foreign currency related to our non-USD denominated investments. For the three and nine months ended September 30, 2024, we had net realized gains of less than $0.1 million and net realized losses of $2.3 million, respectively, on foreign currency investments. For the three and nine months ended September 30, 2024, we had net realized losses of $0.1 million and net realized gains of $3.1 million on foreign currency borrowing. The net realized gains and losses on foreign currency borrowings were a result of payments on our revolving credit facility.

Current wording

For the three months ended March 31, 2026 and 2025, we had net realized losses on investments of $39.3 million and net realized gains on investments of $1.1 million, respectively. For the three months ended March 31, 2026 and 2025, we had net realized losses of $0.1 million and $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 three months ended March 31, 2026 and 2025, we had net realized gains on foreign currency investments of less than $0.1 million and less than $0.1 million, respectively. For the three months ended March 31, 2026 and 2025, we had net realized losses on foreign currency borrowings of less than $0.1 million and $0.1 million, respectively. The net realized losses on foreign currency borrowings were a result of payments on our revolving credit facility.

Previous wording

For the three months ended September 30, 2024, we had $25.0 million in unrealized gains on 68 portfolio company investments, which was offset by $27.4 million in unrealized losses on 48 portfolio company investments. Unrealized gains primarily resulted from tightening credit spreads and positive portfolio company specific developments. Unrealized losses primarily resulted from negative portfolio company specific developments and the reversal of prior period unrealized gains due to realizations. For the nine months ended September 30, 2024, we had $42.4 million in unrealized gains on 81 portfolio company investments, which was offset by $64.4 million in unrealized losses on 82 portfolio company investments. Unrealized gains primarily resulted from tightening credit spreads and positive portfolio company specific developments. Unrealized losses primarily resulted from negative portfolio company specific developments and the reversal of prior period unrealized gains due to realizations.

Current wording

For the three months ended March 31, 2026, we had $50.2 million in unrealized gains on 16 portfolio company investments, which was offset by $85.2 million in unrealized losses on 127 portfolio company investments. Unrealized gains for the three months ended March 31, 2026 resulted from positive portfolio company specific developments and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the three months ended March 31, 2026 resulted from negative credit-related adjustments, widening credit spreads, and the reversal of prior period unrealized gains due to realizations.

Previous wording

For the three months ended September 30, 2025, we had $14.8 million in unrealized gains on 49 portfolio company investments, which was offset by $21.8 million in unrealized losses on 100 portfolio company investments. Unrealized gains for the three months ended September 30, 2025 resulted from positive portfolio company specific developments, tightening credit spreads, and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the three months ended September 30, 2025 resulted from negative credit-related adjustments and widening credit spreads. For the nine months ended September 30, 2025, we had $112.7 million in unrealized gains on 69 portfolio company investments, which was offset by $59.6 million in unrealized losses on 96 portfolio company investments. Unrealized gains for the nine months ended September 30, 2025 resulted from positive portfolio company specific developments, tightening credit spreads, and the reversal of prior period unrealized losses due to realizations. Unrealized losses for the nine months ended September 30, 2025 resulted from negative credit-related adjustments and the reversal of prior period unrealized gains due to realizations.

Current wording

For the three months ended March 31, 2025, we had $23.7 million in unrealized gains on 53 portfolio company investments, which was offset by $34.5 million in unrealized losses on 68 portfolio company investments. Unrealized gains for the three months ended March 31, 2025 resulted from positive portfolio company specific developments. Unrealized losses for the three months ended March 31, 2025 resulted from widening credit spreads, negative credit-related adjustments and the reversal of prior period unrealized gains due to realizations.

Previous wording

For the three and nine months ended September 30, 2025 we had unrealized gains on foreign currency borrowings of $0.7 million and unrealized losses on foreign currency borrowings of $36.0 million, respectively, on foreign currency borrowings, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the three and nine months ended September 30, 2025, we had unrealized gains of less than $0.1 million and unrealized losses of less than $0.1 million, respectively, on foreign currency transactions. For both the three and nine months ended September 30, 2025, we had unrealized gains of $0.6 million, related to a deferred tax benefit.

Current wording

For the three months ended March 31, 2026 and 2025, we had unrealized gains of $8.4 million and unrealized losses of $11.0 million, respectively, on foreign currency borrowings, primarily as a result of fluctuations in the AUD, CAD, SEK, GBP and EUR exchange rates. For the three months ended March 31, 2026 and 2025, we had unrealized gains of less than $0.1 million and unrealized losses of less than $0.1 million, respectively, on foreign currency transactions.

Previous wording

Since we began investing in 2011 through September 30, 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 $8.8 billion and total proceeds from these exited investments of $11.4 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 March 31, 2026, weighted by capital invested, our exited investments have generated an average realized gross internal rate of return to us of 16.8% (based on total capital invested of $9.3 billion and total proceeds from these exited investments of $11.9 billion). Ninety-one 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 nine months ended September 30, 2025 and 2024, we had $36.0 million and $7.2 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 nine months ended September 30, 2025 and 2024. 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 September 30, 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.

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 three months ended March 31, 2026 and 2025, we had $8.4 million of unrealized gains and $11.0 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 three months ended March 31, 2026 and 2025. 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 March 31, 2026. 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 September 30, 2025 and December 31, 2024, our asset coverage ratio was 187.5% 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.

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 March 31, 2026 and December 31, 2025, our asset coverage ratio was 184.7% and 191.5%, 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 September 30, 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 September 30, 2025, we had approximately $1.0 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.

Current wording

Cash and cash equivalents as of March 31, 2026, 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 March 31, 2026, we had approximately $1.1 billion of availability on our Revolving Credit Facility, subject to asset coverage limitations.

Previous wording

As of September 30, 2024, we had $29.7 million in cash and cash equivalents, including $23.2 million of restricted cash. During the nine months ended September 30, 2024, cash used in operating activities was $14.8 million, primarily attributable to funding portfolio investments of $680.0 million and other operating activity of $10.6 million which was offset by an increase in net assets resulting from operations of $135.6 million and repayments and proceeds from investments of $540.3 million. Cash provided by financing activities was $19.3 million during the period, primarily attributable to borrowings of $1,107.1 million and proceeds from the issuance of common stock of $93.3 million which was offset by paydowns on our Revolving Credit Facility of $1,044.2 million, dividends paid to stockholders of $128.1 million and deferred financing costs of $8.8 million.

Current wording

As of March 31, 2026, we had $29.2 million in cash and cash equivalents, including $28.1 million of restricted cash. During the three months ended March 31, 2026, cash used in operating activities was $23.4 million, primarily attributable to funding portfolio investments of $162.8 million and a decrease in net assets resulting from operations of $26.0 million which was partially offset by repayments and proceeds from investments of $133.8 million and cash provided by other operating activities of $31.6 million. Cash provided by financing activities was $32.9 million during the period due to borrowings of $310.3 million which was partially offset by paydowns on our Revolving Credit Facility of $238.4 million and dividends paid of $39.0 million.

Previous wording

As of September 30, 2025, we had $83.2 million in cash and cash equivalents, including $20.1 million of restricted cash. During the nine months ended September 30, 2025, cash provided by operating activities was $327.5 million, primarily attributable to repayments and proceeds from investments of $1,048.0 million and an increase in net assets resulting from operations of $140.6 million, which was partially offset by funding portfolio investments of $848.4 million and cash used in other operating activities of $12.7 million. Cash used in financing activities was $271.7 million during the period due to paydowns on our Revolving Credit Facility of $1,249.6 million, dividends paid of $128.4 million and deferred financing costs of $7.3 million, which was partially offset by borrowings of $1,113.6 million.

Current wording

As of March 31, 2025, we had $47.3 million in cash and cash equivalents, including $42.7 million of restricted cash. During the three months ended March 31, 2025, cash provided by operating activities was $149.9 million, primarily attributable to repayments and proceeds from investments of $291.9 million, an increase in net assets resulting from operations of $37.0 million and other operating activity of $4.7 million, which was partially offset by funding portfolio investments of $183.7 million. Cash used in financing activities was $130.0 million during the period due to paydowns on our Revolving Credit Facility of $609.5 million, dividends paid of $43.2 million and deferred financing costs of $7.3 million, which was partially offset by borrowings of $530.0 million.

Previous wording

During the nine months ended September 30, 2025 and 2024, we issued 832,489 and 888,122 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $18.2 million and $17.8 million, respectively.

Current wording

During the three months ended March 31, 2026 and 2025, we issued 314,450 and 302,922 shares of our common stock, respectively, to investors who have not opted out of our dividend reinvestment plan for proceeds of $5.5 million and $6.4 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 April 30, 2025 (effective May 31, 2025). 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.

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 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

No shares were repurchased for the three and nine months ended September 30, 2025 and 2024.

Current wording

No shares were repurchased for the three months ended March 31, 2026 and 2025.