$BXSL pitch:
– BDC is managed by $BX.
– Has a 10% dividend yield with earnings power likely to increase 30-50% over the next 2-4 quarters due to rising short-term rates.
– Differentiates itself from other BDCs by its conservative lending practices, positive exposure to rising short-term rates, and shareholder-friendly structure.
– More conservative credit book than most other BDCs with an LTV of 46% and 98% of the book in first-lien debt.
– Almost 100% of its debt investments are floating rates.
– The overhang from the Oct-21 IPO as some of the previously-private entity shareholders might be exiting since Jul’22 unlock.
– The company opportunistically repurchases shares below NAV.
$BXSL valuation:
– Trades at 95% of NAV despite favorable outlook from rising interest rates.
– 10% dividend yield.
– Earnings power is set to increase 30-50% over the coming quarters.
Exp. gain: +30-50%
Full write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/BLACKSTONE_SECURED_LENDING_FUND/7846717845