Sixth Street Specialty Lending Inc (TSLX) 2020 Q4 法說會逐字稿

Good morning and welcome to Sixth Street Specialty Lending, Inc.'s Fourth Quarter and Fiscal Year Ended December 31, 2020 Earnings Conference Call.

早安，歡迎參加 Sixth Street Specialty Lending, Inc. 截至 2020 年 12 月 31 日的第四季和財年財報電話會議。

Before we begin today's call, I would like to remind our listeners that remarks made during the call may contain forward-looking statements. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties.

在我們開始今天的電話會議之前，我想提醒我們的聽眾，電話會議期間的言論可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的其他陳述可能構成前瞻性陳述，不能保證未來業績或結果，並涉及許多風險和不確定性。

Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Sixth Street Specialty Lending, Inc.'s filings with the Securities and Exchange Commission. The Company assumes no obligation to update any such forward-looking statements.

由於多種因素的影響，實際結果可能與前瞻性陳述中的結果有重大差異，其中包括第六街專業貸款公司向美國證券交易委員會提交的文件中不時描述的因素。本公司不承擔更新任何此類前瞻性陳述的義務。

Yesterday, after the market closed, the Company issued its earnings press release for the fourth quarter and fiscal year ended December 31, 2020, and posted a presentation to the Investor Resources section of its website, www.sixthstreetspecialtylending.com. The presentation should be reviewed in conjunction with the Company's Form 10-K filed yesterday with the SEC. Sixth Street Specialty Lending, Inc.'s earnings release is also available on the Company's website under the Investor Resources section.

昨天，收盤後，該公司發布了截至 2020 年 12 月 31 日的第四季度和財年的收益新聞稿，並在其網站 www.sixthstreetspecialtylending.com 的投資者資源部分發布了簡報。該演示文稿應與公司昨天向 SEC 提交的 10-K 表格一起進行審查。 Sixth Street Specialty Lending, Inc. 的收益報告也可在該公司網站的投資者資源部分找到。

Unless noted otherwise, all performance figures mentioned in today's prepared remarks are as of and for the fourth quarter and fiscal year December 31, 2020.

除非另有說明，今天準備好的評論中提到的所有業績數據均截至 2020 年 12 月 31 日第四季和財年。

As a reminder, this call is being recorded for replay purposes. I will now turn the call over to Joshua Easterly, Chief Executive Officer of Sixth Street Specialty Lending, Inc.

謹此提醒，本次通話將會被錄音以供重播。我現在將把電話轉給第六街專業貸款公司執行長約書亞‧伊斯特利 (Joshua Easterly)。

Thank you. Good morning everyone, and thank you for joining us. With me today is my partner and our President, Bo Stanley; and our CFO, Ian Simmonds. We hope that everyone and their loved ones are doing well.

謝謝。大家早安，感謝您加入我們。今天與我在一起的是我的合作夥伴兼我們的總裁 Bo Stanley；和我們的財務長伊恩·西蒙茲。我們希望每個人和他們的親人都一切順利。

On our Q4 earnings call a year ago, none of us could have predicted that we were on the precipice of a global pandemic that would claim over 2 million lives, shutter entire sectors of the global economy and drastically alter the cadence of our everyday lives.

在一年前的第四季財報電話會議上，我們誰都沒有預料到我們正處於一場全球流行病的邊緣，這場流行病將奪走超過200 萬人的生命，關閉全球經濟的整個部門，並徹底改變我們日常生活的節奏。

In the context of a year that was fraught with complexity and uncertainty, our Q4 and full year results are a testament to both the groundwork we've laid over the years to address the constraints of our sector's business model as well as the commitment of our people at all levels of our organization.

在充滿複雜性和不確定性的一年中，我們第四季度和全年的業績證明了我們多年來為解決行業業務模式的限製而奠定的基礎，以及我們對我們組織各個級別的人員。

After market close yesterday, we reported fourth quarter and fiscal year financial results, which were consistent with the preliminary figures that we provided on January 25. Our Q4 net investment income and net income per share were $0.48 and $0.79, respectively. This resulted in a full year net investment income per share of $2.19 or return on equity of 13%, and a full year net income per share of $2.65 or a return on equity of 15.8%, our highest annual return since inception. Both our 2020 ROE on net income and our ROE on net investment income were above their respective average annual results since our IPO.

昨天收盤後，我們公佈了第四季度和本財年的財務業績，與我們 1 月 25 日提供的初步數據一致。第四季度的淨投資收益和每股淨收益分別為 0.48 美元和 0.79 美元。這導致全年每股淨投資收益為2.19 美元，或股本回報率為13%，全年每股淨收益為2.65 美元，或股本回報率為15.8%，這是我們自成立以來的最高年度回報率。我們的 2020 年淨利 ROE 和淨投資收益 ROE 均高於 IPO 以來各自的平均年度業績。

Despite ongoing earnings headwinds from LIBOR for most of our sector, our strong Q4 net investment income was supported by the LIBOR floors on our assets in conjunction with a lower cost of funding given our 100% floating rate liability structure. It was also supported by another quarter of robust fee income and portfolio activity. The difference between this quarter's net investment income and net income were primarily driven by overall net gains, including net realized and unrealized gains from portfolio company-specific events and net unrealized gains from the impact of tightening credit spreads on the valuation of our debt investments.

儘管倫敦銀行間同業拆借利率(LIBOR)對我們大部分行業的盈利持續不利，但我們第四季度強勁的淨投資收入得到了我們資產的倫敦銀行間同業拆借利率(LIBOR)下限以及我們100%浮動利率負債結構的較低融資成本的支持。另外一個季度強勁的費用收入和投資組合活動也為其提供了支撐。本季淨投資收益與淨利潤之間的差異主要是由整體淨收益造成的，包括投資組合公司特定事件的已實現淨收益和未實現淨收益，以及信貸利差收緊對債務投資估值影響產生的未實現淨收益。

As shared in our pre-release, our Q4 figures include approximately $0.02 per share of capital gains incentive fees that were accrued, but not paid or payable, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains and incentives paid inception to date.

正如我們在預發布中所分享的，我們第四季度的數據包括已計但未支付或應付的每股約0.02 美元的資本利得激勵費用，這些費用與累積未實現資本利得超過累積淨已實現資本利得減去任何累積未實現損失相關以及自成立至今支付的資本收益和獎勵。

Excluding the impact of the accrued capital gains incentive fee expenses, our net investment income per share and net income per share for the quarter ended December 31, 2020 were $0.50 and $0.81, respectively. Since capital gain incentive fee accrual is a GAAP-related, non-cash item, we believe the adjusted NII and NI, which excludes the impact of the accrual, more accurately portrays the current core earnings power of our business.

排除應計資本利得激勵費支出的影響，截至 2020 年 12 月 31 日的季度，我們的每股淨投資收益和每股淨利潤分別為 0.50 美元和 0.81 美元。由於資本利得激勵費應計是與 GAAP 相關的非現金項目，我們認為調整後的 NII 和 NI（排除了應計費用的影響）更準確地反映了我們業務當前的核心盈利能力。

Our Q4 capital gains incentive fee accrual expense is just another by-product of our long-term focus on minimizing losses and steadily building net asset value and economic value for shareholders. Another way to see this is through the total economic returns we generated for shareholders, as calculated by the change in net asset value per share, with the starting point adjusted for the impact of supplemental and/or special dividends, plus cumulative dividends per share.

我們第四季的資本利得激勵費應計費用只是我們長期致力於最大限度地減少損失並穩步為股東創造淨資產價值和經濟價值的另一個副產品。另一種方法是透過我們為股東創造的總經濟回報，根據每股資產淨值的變化計算，起點根據補充和/或特別股息的影響進行調整，加上每股累積股息。

In 2020, we generated total economic returns of 16%, exceeding our average annual return rate since IPO of 12.2% through 2019. As seen on slide 10 of our earnings presentation, the primary drivers of our net asset value per share growth in 2020 to a new high of $17.16 at year-end were: the over-earning of our base dividend through net investment income, net unrealized mark-to-market gains from interest rate swaps on our fixed rate liabilities, and realized and unrealized gains on investments.

2020 年，我們的總經濟回報率為16%，超過了自IPO 以來截至2019 年12.2% 的平均年回報率。如我們收益演示幻燈片10 所示，2020 年每股資產淨值增長的主要驅動力為年末達到 17.16 美元的新高是：透過淨投資收益超額賺取基本股息、固定利率負債利率掉期的未實現按市價計價的淨收益以及已實現和未實現的投資收益。

Yesterday, our Board approved a base quarterly dividend of $0.41 per share to shareholders of record as of March 15, payable on April 15. Our Board also declared a supplemental dividend of $0.05 per share relating to our Q4 earnings to shareholders of record as of February 26, payable on March 31. The supplemental dividend this quarter is calculated using our adjusted net investment income, which excludes the impact of accrued capital gains incentive fee expenses. Since there's no certainty on when or if these accrued expenses will be paid, we believe adjusted NII is a more relevant figure to determine the over-earning that should be distributed to our shareholders.

昨天，我們的董事會批准向截至3 月15 日登記的股東派發每股0.41 美元的基本季度股息，並於4 月15 日支付。我們的董事會還宣布向截至2 月份登記的股東派發與我們第四季度收益相關的每股0.05 美元的補充股息26日，於3月31日支付。本季度的補充股息是根據我們調整後的淨投資收益計算的，其中不包括應計資本利得激勵費用支出的影響。由於這些應計費用何時或是否支付尚不確定，我們認為調整後的NII是一個更相關的數字，可以用來確定應分配給股東的超額收益。

In the ongoing assessment of our unit economics, mitigating the earnings drag caused by excise tax related to our spillover income has been top of mind. Since declaring our tax-driven special dividend last February, we've continued to accumulate spillover income as a result of over-earning and capital gains from our portfolio realizations.

在對我們單位經濟效益的持續評估中，減輕與我們的溢出收入相關的消費稅造成的獲利拖累一直是首要考慮的問題。自從去年二月宣布稅收驅動的特別股息以來，由於我們的投資組合變現的超額收益和資本收益，我們不斷累積溢出收入。

In order to reduce our excise tax, satisfy RIC distribution requirements and enhance our capital efficiency, we, in consultation with our Board, have declared a special cash dividend of $1.25 per share to shareholders of record as of March 25, payable on April 8. Through this special dividend, holding all else equal, we should expect to reduce our full year excise tax from $0.10 to $0.04 cents per share. This, combined with the slight increase in our financial leverage, is expected to drive approximately 100 basis points of uplift in our ROE.

為了減少我們的消費稅、滿足RIC 分配要求並提高我們的資本效率，我們與董事會協商後，宣布向截至3 月25 日登記在冊的股東派發每股1.25 美元的特別現金股息，並於4 月8 日支付。透過這次特別股息，在其他條件相同的情況下，我們預計全年消費稅將從每股 0.10 美元減少到 0.04 美元。再加上我們財務槓桿的小幅增加，預計將推動我們的 ROE 提升約 100 個基點。

Our year-end net asset value per share adjusted for the impact of the special and supplemental dividend that were declared yesterday is $15.86, and we estimate that our spillover income per share after this special dividend is approximately $0.54. Again, we would like to reiterate that our special dividends are motivated by tax and RIC distribution considerations, and our goal of steadily building net asset value per share over time remains very much a part of our operating philosophy.

根據昨天宣布的特別股息和補充股息的影響進行調整後，我們的年末每股資產淨值為 15.86 美元，我們估計本次特別股息後的每股溢出收入約為 0.54 美元。我們想再次重申，我們的特別股息是出於稅收和 RIC 分配的考慮，而我們隨著時間的推移穩步建立每股資產淨值的目標仍然是我們經營理念的重要組成部分。

To sum up, we believe our performance in 2020 was largely supported by how we were positioned pre-pandemic. The defensive nature of our portfolio, combined with our strong liquidity, funding and capital positions and our floating rate liability structure, were the bedrock of our outperformance this year. Having this foundation as we entered the uncertain period this March allowed us to better dedicate our energy and efforts to support our portfolio companies and management teams and tactically deploy capital in dislocated areas.

總而言之，我們認為 2020 年的業績很大程度上取決於我們在疫情大流行前的定位。我們投資組合的防禦性，加上強大的流動性、融資和資本部位以及浮動利率負債結構，是我們今年表現優異的基石。在今年三月進入不確定時期時，有了這個基礎，我們能夠更好地投入精力和精力來支持我們的投資組合公司和管理團隊，並在錯位地區進行戰術性部署。

I'll now let Bo and Ian each discuss how we're thinking about our positioning on the right-hand and left-hand sides of our balance sheet for the year ahead, as well as to review the Q4 and full year activity in more detail. Bo, over to you.

現在，我將讓 Bo 和 Ian 分別討論我們如何考慮未來一年資產負債表右側和左側的定位，並回顧第四季度和全年活動。細節。博，交給你了。

Thanks, Josh. I'd like to quickly share our thoughts on the market environment and how it has informed our originations activities over the course of this year.

謝謝，喬許。我想快速分享我們對市場環境的看法，以及它如何影響我們今年的創始活動。

After the COVID-induced market shock in March, fiscal and monetary stimulus measures taken by the Fed and U.S. government led to a significant turnaround for risk assets. Strong investor demand for yield in a low rate environment, along with unprecedented fiscal stimulus to support COVID-impacted businesses and households, drove down risk premiums in both the equity and credit markets despite the prevailing uncertainty surrounding many parts of the U.S. economy.

3月新冠疫情引發的市場衝擊之後，聯準會和美國政府採取的財政和貨幣刺激措施導致風險資產大幅改善。儘管美國經濟許多領域普遍存在不確定性，但低利率環境下投資者對收益的強勁需求，以及支持受新冠疫情影響的企業和家庭的前所未有的財政刺激措施，壓低了股票和信貸市場的風險溢價。

In the leveraged loan market, LCD first lien spreads ended the year only 30 basis points wider than where it started, and second lien spreads actually tightened 144 basis points year-over-year. On an absolute basis, taking into account movements in LIBOR, the benefit of floors and the amortization of upfront fees, all-in returns for new-issue single B loans for the year ended 2020 were approximately 100 basis points tighter than they were a year prior.

在槓桿貸款市場，LCD第一留置權利差在年底僅比年初擴大了30個基點，而第二留置權利差實際上同比收窄了144個基點。在絕對基礎上，考慮到 LIBOR 的變動、下限收益和預付費用攤銷，2020 年終了的年度新發行單一 B 貸款的總回報比上年收窄約 100 個基點事先的。

While new issuance volumes gathered pace in the second half of the year fueled by opportunistic financings and the return of sponsor and M&A activity, strong investor demand still outpaced supply. By year end, we saw the return of looser underwriting standards similar to what we saw --we witnessed pre-COVID.

儘管在機會主義融資以及保薦人和併購活動回歸的推動下，下半年新發行量加快，但投資者的強勁需求仍然超過了供應。到年底，我們看到了更寬鬆的承保標準的回歸，這與我們在新冠疫情之前所看到的情況類似。

Despite the theme of recovery in headlines for most risk assets, we believe that the story of averages masked the diverging performance and credit quality for COVID-impacted borrowers this year. For example, total return for the leveraged loan index in 2020 was 3.1%, but sectors like energy and retail underperformed with -7.3% and -2% returns, and sectors like health care and tech generated over 5% returns. This dispersion was also evident in credit statistics.

儘管大多數風險資產的頭條新聞都以復甦為主題，但我們認為，平均水平的故事掩蓋了今年受新冠疫情影響的借款人的不同表現和信用品質。例如，2020 年槓桿貸款指數的總回報率為 3.1%，但能源和零售等板塊表現不佳，回報率為 -7.3% 和 -2%，醫療保健和科技等板塊的回報率超過 5%。這種分散在信貸統計中也很明顯。

Despite a seemingly moderate reported median leverage of 5.5x for public filers in the leveraged loan index at year-end, the percentage of filers with leverage greater than 7x doubled from a year ago-, primarily led by EBITDA declines for borrowers most impacted by COVID. As we saw a return in competitive behavior in our own market in the latter half of the year, we were mindful of the unevenness and fragility of this recovery.

儘管年底槓桿貸款指數中公開申報人的槓桿率中位數看似溫和，為5.5 倍，但槓桿率超過7 倍的申報人比例較一年前翻了一番，這主要是受新冠疫情影響最嚴重的借款人EBITDA 下降所致。當我們看到下半年我們自己市場的競爭行為有所回升時，我們注意到這種復甦的不平衡性和脆弱性。

We believe that much of the optimistic market sentiment we saw starting in the second half of 2020 hinged on continued accommodative Fed policy and timely global vaccine distribution, which to-date has been fragmented and not without its challenges. In the near-to-medium term, we believe this could create windows of volatility and risk-off behavior in the broader markets, which would once again allow us to opportunistically deploy capital like we did this spring and summer.

我們認為，我們從2020 年下半年開始看到的樂觀市場情緒在很大程度上取決於聯準會持續的寬鬆政策和及時的全球疫苗分配，但迄今為止，這些政策一直是支離破碎的，而且並非沒有挑戰。從中短期來看，我們認為這可能會在更廣泛的市場中創造波動和避險行為的窗口，這將使我們再次能夠像今年春季和夏季那樣機會主義地配置資本。

In the meantime, however, we felt that it was prudent to focus our originations efforts on sectors and themes that have been the hallmark of our above-market returns and continue to reinforce the defensive nature of our portfolio.

然而，同時，我們認為謹慎的做法是，將我們的創始工作重點放在作為我們高於市場回報的標誌的行業和主題上，並繼續加強我們投資組合的防禦性。

In Q4, we generated a record level of quarterly commitments and fundings of $526 million and $450 million, respectively. This quarter's fundings were across 10 new and 10 existing portfolio companies. As sponsor and M&A activity picked up, we were active in both bolt-on acquisitions for our existing borrowers, as well as new financings along the lanes of our expertise where we felt we could add incremental value to sponsors and management teams.

第四季度，我們的季度承諾和資金分別達到創紀錄的 5.26 億美元和 4.5 億美元。本季的融資涉及 10 家新投資組合公司和 10 家現有投資組合公司。隨著贊助商和併購活動的增加，我們積極參與對現有借款人的補強收購，以及沿著我們的專業知識進行新融資，我們認為我們可以為贊助商和管理團隊增加增量價值。

Our activities this quarter tilted in favor of mission-critical software businesses with diverse, attractive revenue characteristics and high variable cost structures.

我們本季的活動傾向於具有多樣化、有吸引力的收入特徵和高可變成本結構的關鍵任務軟體業務。

We also blended our expertise on a hybrid recurring revenue software and asset-based financing for Follett, a provider of K-12 educational materials and technology solutions. Our ability to delve into and underwrite the company's software subsegment, as well as its working capital and other fixed asset collateral, allowed us to differentiate our capital and partner with an excellent family-owned business and management team.

我們也為 Follett（一家 K-12 教育材料和技術解決方案提供者）融合了我們在混合經常性收入軟體和基於資產的融資方面的專業知識。我們有能力深入研究和承保該公司的軟體細分市場及其營運資金和其他固定資產抵押品，這使我們能夠使我們的資本脫穎而出，並與優秀的家族企業和管理團隊合作。

On the repayment side, we continued to have elevated activity in Q4 with 10 full and 1 partial portfolio repayment totaling $266 million. As a result, net funding activity for the quarter was $184 million. A bulk of this quarter's repayments were M&A-related and, in various cases, resulted in activity-related fees contributing to this quarter's income.

在還款方面，我們第四季的活動持續增加，有 10 筆全部和 1 筆部分投資組合還款，總額達 2.66 億美元。因此，本季的淨融資活動為 1.84 億美元。本季的大部分還款與併購相關，並且在各種情況下，導致與活動相關的費用為本季的收入做出貢獻。

For the full year, our commitment and funding levels closely tracked last year's record high figures, with $1.2 billion of commitments and $939 million of fundings. Total repayments for the year were $941 million, which meant that the size of our portfolio remained relatively steady year-over-year.

全年來看，我們的承諾和資金水準緊隨去年創紀錄的高位，承諾金額為 12 億美元，資金金額為 9.39 億美元。今年的還款總額為 9.41 億美元，這意味著我們的投資組合規模比去年同期保持相對穩定。

You may recall that in the first 2 quarters of the year, we had a cumulative $266 million of net repayment activity in our portfolio. This meant that our team worked incredibly hard to build a strong pipeline of opportunities to generate over $263 million of net portfolio growth in the second half of the year alone.

您可能還記得，今年前兩個季度，我們的投資組合中累計淨還款活動為 2.66 億美元。這意味著我們的團隊非常努力地建立了強大的機會管道，僅在今年下半年就實現了超過 2.63 億美元的投資組合淨成長。

As always, our priority is to source and structure consistent portfolio yields, while partnering with high-quality companies and management teams. This philosophy is reflected in the stability of our weighted average yield on debt and income-producing securities at amortized cost, which can be seen on Slide 15 of our earnings presentation. In Q4, the weighted average yield on debt and income-producing securities at amortized cost remained stable at 10.2%.

一如既往，我們的首要任務是尋找和建立一致的投資組合收益，同時與高品質的公司和管理團隊合作。這個理念反映在我們以攤餘成本計算的債務和創收證券的加權平均收益率的穩定性上，這一點可以在我們收益報告的幻燈片 15 中看到。第四季度，以攤餘成本計算的債務和創收證券的加權平均收益率保持穩定在 10.2%。

There was a slight positive yield uplift from amendments during the quarter primarily related to M&A, which was offset by the impact of new versus exited debt investments. In Q4, the yield at amortized cost on new investments was 9.9% compared to an elevated yield of 12.9% on exited names as a result of upfront fees against the short contractual maturity of our investment in Centric Brands. Excluding Centric Brands, the yield at amortized cost on exited investments this quarter would have been 10.3%.

本季主要與併購相關的修正帶來了輕微的正收益提升，但被新債務投資與已退出債務投資的影響所抵消。第四季度，新投資的攤餘成本收益率為 9.9%，而現有投資的收益率則高達 12.9%，這是由於我們對 Centric Brands 的投資合約期限較短而產生的預付費用。不包括 Centric Brands，本季退出投資的攤餘成本收益率將為 10.3%。

Now, I'll move on to the credit quality of our portfolio by first providing some updates on our prior quarter's non-accrual names. In December, we removed our prepetition J.C. Penney's first lien term loan and notes from non-accrual status upon the company's emergence from Chapter 11. At emergence, our prepetition debt and DIP positions were converted to noninterest-paying instruments, but with rights to immediate and future distributions in cash and other instruments. Our immediate distributions were $2.3 million of cash, $6.9 million of exited term loan and units in the propco and earnout trusts. The fair value marks of our J.C. Penney prepetition debt and DIP positions at December 31st reflected their respective level 2 prices. Overall, the J.C. Penney restructuring provided approximately $0.05 cents per share of uplift for our NAV this quarter. And at year-end, the total realized and unrealized value of our prepetition and DIP positions exceeded their original cost basis. While this has been a complex process, we believe our involvement as prepetition and DIP lenders supported our ability to be one of 4 financing providers in J.C. Penney's new $300 million ABL FILO loan, which in our view offers very attractive risk-adjusted returns.

現在，我將首先提供上一季非應計名稱的一些更新，然後繼續討論我們投資組合的信用品質。 12 月，我們在公司脫離美國破產法第11 章後，將我們的預申請J.C. Penney 的第一筆留置權定期貸款和票據從非應計狀態中取消。出現後，我們的預申請債務和DIP頭寸轉換為無息支付工具，但有權立即以及未來現金和其他工具的分配。我們立即分配的是 230 萬美元現金、690 萬美元已退出定期貸款以及產權公司和收益信託單位。我們 J.C. Penney 預申請債務和 DIP 頭寸截至 12 月 31 日的公允價值標記反映了各自的 2 級價格。總體而言，J.C. Penney 重組為本季的資產淨值帶來了每股約 0.05 美分的提升。到年底，我們的預申請和 DIP 頭寸的已實現和未實現總價值超出了其原始成本基礎。雖然這是一個複雜的過程，但我們相信，我們作為預申請和DIP 貸款人的參與支持了我們成為J.C. Penney 新的3 億美元ABL FILO 貸款的4 家融資提供商之一的能力，我們認為該貸款提供了非常有吸引力的風險調整回報。

At year end, our retail and consumer exposure was 11.8%, down from 13.9% in the prior quarter, and 75% of this existing exposure were asset-based loans. In December, we also removed our first lien loan in an E&P company, MD America, from nonaccrual status following the company's emergence from Chapter 11. During Q4, our $13.6 million fair value loan was restructured into a $9 million first lien loan and a $3.9 million equity position. We believe the company's new capital structure is more appropriately suited for today's commodity price environment. At quarter end, our portfolio's total energy exposure was 1.7% at fair value.

截至年底，我們的零售和消費者風險敞口為 11.8%，低於上一季的 13.9%，其中 75% 的現有風險敞口是資產貸款。 12 月，我們也取消了E&P 公司MD America 的第一筆留置權貸款，該公司脫離了美國破產法第11 章，該公司不再應計。在第四季度，我們的1,360 萬美元公允價值貸款被重組為900 萬美元的第一筆留置權貸款和3.9 美元的留置權貸款。萬元股權。我們認為該公司的新資本結構更適合當今的大宗商品價格環境。截至季末，我們投資組合的總能源部位以公允價值計算為 1.7%。

During the quarter, we added one new investment, our $21.6 million fair value loan in American Achievement, to nonaccrual status. The company manufactures and supplies yearbooks, class rings and graduation products, and as a result of COVID, underperformed for the 2020 sales season. We are currently working with the company on a potential restructuring to keep our term loan outstanding and to receive a majority of the equity in the business as a lender group. We expect to reach resolution on this in the near term.

本季度，我們將一項新投資（即美國成就公司的 2,160 萬美元公允價值貸款）納入非應計狀態。該公司生產和供應年鑑、班級戒指和畢業產品，但受新冠疫情影響，2020 年銷售季表現不佳。我們目前正在與該公司合作進行潛在的重組，以保持我們的定期貸款未償還狀態，並作為貸方集團獲得該業務的大部分股權。我們預計將在短期內就此達成解決方案。

As a result of these activities, our nonaccruals at year-end remained stable from the prior quarter at 0.9% of the portfolio at fair value. Quarter-over-quarter, our portfolio's weighted average performance rating improved slightly from 1.21 to 1.18, and our tail risk names decreased from 8% to 2.5% on a fair value basis.

由於這些活動，我們年末的非應計費用與上一季相比保持穩定，佔投資組合公允價值的 0.9%。與上一季相比，我們投資組合的加權平均績效評級從 1.21 略有提高至 1.18，尾部風險名稱按公允價值計算從 8% 下降至 2.5%。

As of Q4, our portfolio continued to be at top of the capital structure with approximately 96% first lien loans. The percentage of business services portfolio companies increased during the year to nearly 80%, and we continued to have limited cyclical exposure, excluding our asset-based loans in retail, of 4.5%. Note that the slight increase in our equity exposure from 3% to 4% year-over-year was primarily due to the increase in the fair value mark of our equity positions.

截至第四季度，我們的投資組合持續處於資本結構的頂端，第一留置權貸款比例約為 96%。商業服務投資組合公司的比例在這一年中增加至近 80%，而且我們的周期性風險敞口（不包括零售業的資產貸款）仍然有限，為 4.5%。請注意，我們的股票部位同比從 3% 略有增加至 4%，主要是由於我們股票部位的公允價值標記增加。

Across our core borrowers for whom these metrics are relevant, we continue to have conservative weighted average attachment and detachment points of 0.4x and 4.4x, respectively, and their weighted average interest coverage remained relatively stable at 3.1x. Year-over-year, the weighted average revenue and EBITDA of our core portfolio companies increased from $114 million to $117 million and from $35 million to $41 million, respectively. We believe this reflects the resilient business models of our core portfolio companies, many of whom were able to execute on strategic acquisitions this year to drive continued growth.

在與這些指標相關的核心借款人中，我們仍然保持保守的加權平均附著點和分離點，分別為 0.4 倍和 4.4 倍，而他們的加權平均利息覆蓋率保持在 3.1 倍的相對穩定。與去年同期相比，我們核心投資組合公司的加權平均收入和 EBITDA 分別從 1.14 億美元增至 1.17 億美元，從 3,500 萬美元增至 4,100 萬美元。我們相信，這反映了我們核心投資組合公司的彈性業務模式，其中許多公司今年能夠執行策略性收購，以推動持續成長。

With that, I'd like to turn it over to Ian.

有了這個，我想把它交給伊恩。

Thanks, Bo. As Josh and Bo mentioned, this was a strong quarter from an earnings and originations perspective. In Q4, we generated net investment income per share of $0.48, which put our full year net investment income per share at $2.19. Our Q4 net income per share was $0.79, which put our full year net income per share at $2.65.

謝謝，博。正如 Josh 和 Bo 所提到的，從收益和起源的角度來看，這是一個強勁的季度。第四季度，我們每股淨投資收益為 0.48 美元，這使得我們全年每股淨投資收益為 2.19 美元。我們第四季的每股淨利潤為 0.79 美元，這意味著我們全年每股淨利潤為 2.65 美元。

As discussed, excluding the $0.02 per share of capital gains incentive fee expenses that were accrued this quarter, our Q4 net investment income and net income per share were $0.50 and $0.81, respectively. At year-end, we had total investments of $2.3 billion, total debt outstanding of $1.1 billion, and net assets of $1.2 billion or $17.16 per share, which is prior to the impact of the supplemental and special dividends that were declared yesterday.

如所討論的，不包括本季應計的每股 0.02 美元的資本利得激勵費用支出，我們第四季度的淨投資收益和每股淨利潤分別為 0.50 美元和 0.81 美元。截至年底，我們的總投資為 23 億美元，未償債務總額為 11 億美元，淨資產為 12 億美元，即每股 17.16 美元，這是在昨天宣布的補充股息和特別股息影響之前的。

Following this quarter's net funding activity, our ending debt-to-equity ratio was 0.95x, up from 0.81x in the prior quarter. However, due to the quarter-end timing on a number of fundings, our average debt-to-equity ratio decreased from 0.93x to 0.87x quarter-over-quarter. For full year 2020, our average debt-to-equity ratio was 0.91x, on the low end of our previously stated target range of 0.90 to 1.25x, and up from an average of 0.84x in 2019.

繼本季的淨融資活動之後，我們的期末負債股本比率為 0.95 倍，高於上一季的 0.81 倍。然而，由於多項融資均處於季度末，我們的平均負債股本比率較上季從 0.93 倍下降至 0.87 倍。 2020 年全年，我們的平均負債股本比率為 0.91 倍，處於我們先前設定的 0.90 至 1.25 倍目標範圍的低端，高於 2019 年的平均 0.84 倍。

As Josh shared earlier, our strong positioning at the beginning of 2020 on the right-hand side of our balance sheet plays an important role in our ability to drive strong outcomes for the year. At the beginning of 2021, we continued to follow our framework of systematically looking for ways to enhance our funding and liquidity profile. In late January, we capitalized on the attractive issuance environment in the investment-grade capital markets and issued $300 million of 2.5% 5.5-year unsecured notes, which to date represents the second-lowest coupon in the BDC sector.

正如 Josh 早些時候分享的那樣，我們在 2020 年初在資產負債表右側的強勢定位對於我們推動今年取得強勁成果的能力發揮著重要作用。 2021 年初，我們繼續遵循系統性尋找增強融資和流動性狀況的方法的框架。 1 月下旬，我們利用投資級資本市場有吸引力的發行環境，發行了 3 億美元的 2.5% 5.5 年期無擔保票據，這是迄今為止 BDC 領域第二低的票息。

Consistent with the rest of our fixed rate debt, we entered into a fixed-to-floating interest rate swap on the new notes. At a swap-adjusted spread that is only 3.5 basis points wider than the current drawn spread on our secured revolver funding, this funding mix shift is expected to have minimal drag on our ROE profile, while further enhancing our funding flexibility.

與我們其餘的固定利率債務一致，我們對新票據進行了固定利率與浮動利率互換。掉期調整後的利差僅比我們的擔保循環資金目前提取的利差寬3.5 個基點，預計這種融資組合的轉變對我們的淨資產收益率狀況的影響最小，同時進一步增強我們的融資靈活性。

In addition, in early February, with the ongoing support of our lending partners, we increased the commitments under our revolving credit facility from $1.335 billion to $1.485 billion, and extended the final maturity on $1.390 billion of these commitments, including the upsizes we received, by over a year to February 2026.

此外，2月初，在貸款合作夥伴的持續支持下，我們將循環信貸安排下的承諾從13.35 億美元增加到14.85 億美元，並延長了其中13.90 億美元的最終期限，包括我們收到的增加額，到 2026 年 2 月，已經提前一年多了。

As a result, we believe our balance sheet has never been in better shape. Through these 2 transactions, we are positioned even better than we were a year ago to take advantage what the market may have to offer in the period ahead. To provide some numbers for context, pro forma for the new notes issuance and the revolver amend and extend, our year-end liquidity increased by over 50% to $1.3 billion of undrawn revolver capacity, representing over 55% of our year-end total assets and over 14x coverage of our unfunded commitments eligible to be drawn. Our year-end unsecured funding mix increased from 58% to 84% on a pro forma basis, and our weighted average remaining life of debt funding increased by over 20% to 4.5 years, compared to a weighted average remaining life of investments funded with debt of only 2.5 years.

因此，我們相信我們的資產負債表狀況從未如此良好。透過這兩項交易，我們的定位甚至比一年前更好，可以充分利用未來一段時間內市場可能提供的優勢。為了提供一些數據作為背景，預計新票據發行以及循環修改和延期，我們的年末流動性增加了 50% 以上，未提取循環容量達到 13 億美元，占我們年末總資產的 55% 以上我們有資格提取的無資金承諾的覆蓋範圍超過14 倍。按預計，我們的年末無擔保融資組合從 58% 增加到 84%，與債務融資投資的加權平均剩餘期限相比，我們的債務融資的加權平均剩餘期限增加了 20% 以上，達到 4.5 年僅2.5年。

A quick note on our 2022 convertible notes, some of you may have noticed that our stock price has closed above the adjusted conversion price on our notes everyday so far in 2021. If the average share price of our stock for the period presented is greater than the adjusted conversion price, we are required to provide the calculation of diluted EPS. Since this could be relevant for our Q1 financial reporting, we wanted to provide some context in advance of that.

關於我們的2022 年可轉換票據的簡要說明，你們中的一些人可能已經注意到，2021 年迄今為止，我們的股價每天收盤價均高於我們票據的調整後轉換價格。如果所示期間我們股票的平均股價高於調整後的轉股價格，我們需要提供攤薄每股盈餘的計算。由於這可能與我們第一季的財務報告相關，因此我們希望在此之前提供一些背景資訊。

As you may know, if our 2022 notes are converted, we have the choice to pay or deliver, as the case may be, at our election: cash, shares of our common stock or a combination of cash and shares of our common stock. While these notes are not eligible for conversion today, this settlement flexibility gives us the opportunity to analyze the financial impact of alternative approaches in addressing the conversion of these notes, depending on the capital and liquidity needs of our business at that time.

如您所知，如果我們的 2022 年票據被轉換，我們可以選擇支付或交付（視情況而定）：現金、普通股或現金與普通股的組合。雖然這些票據目前不符合轉換條件，但這種結算彈性使我們有機會分析解決這些票據轉換問題的替代方法的財務影響，具體取決於我們當時業務的資本和流動性需求。

Turning now to our presentation materials, Slide 9 is the NAV bridge for the quarter. Walking through the main drivers of this quarter's NAV growth, we added $0.48 per share from net investment income against our base dividend of $0.41 per share. There was a $0.23 per share reduction to NAV, primarily from the reversal of net unrealized gains on our Swift and Vertellus equity positions as we booked these gains as realized upon sale.

現在轉向我們的簡報材料，幻燈片 9 是本季的 NAV 橋樑。回顧本季資產淨值成長的主要驅動因素，我們從每股淨投資收入中增加了 0.48 美元，而我們的基本股息為每股 0.41 美元。每股資產淨值減少了 0.23 美元，主要是由於我們將 Swift 和 Vertellus 股權頭寸的未實現淨收益轉回，因為我們將這些收益記為出售時實現的收益。

The impact of Q4 credit spread tightening on the valuation of our portfolio had a positive $0.16 per share impact, and there was a positive $0.40 per share impact from other changes in net realized and unrealized gains, primarily driven by portfolio company-specific events.

第四季信用利差收緊對我們投資組合估值產生了每股0.16 美元的正影響，而已實現淨收益和未實現淨收益的其他變化也產生了每股0.40 美元的正影響，這主要是由投資組合公司特定事件所推動的。

Moving on to our operating results detail on Slide 11. Total investment income for the fourth quarter was $62.2 million, compared to $71.3 million in the prior quarter. Breaking down the components of income, interest and dividend income was $52.7 million, down $1.2 million from Q3 due to the impact of heavier repayments earlier in the quarter and new fundings later in the quarter.

接下來是投影片 11 上的營運績效詳細資料。第四季的總投資收入為 6,220 萬美元，而上一季的總投資收入為 7,130 萬美元。收入、利息和股息收入的組成部分為 5,270 萬美元，比第三季減少 120 萬美元，原因是本季早些時候還款額增加以及本季稍後新增資金的影響。

Other Fees, which consist of prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns, were $4.3 million compared to $9.3 million in the prior quarter when we had elevated fees related to Dye & Durham and the Neiman FILO. Likewise, Other Income, albeit robust at $5.2 million, was lower compared to the prior quarter given our elevated other income in Q3.

其他費用（包括預付款費用和計劃外付款的預付款加速攤銷）為 430 萬美元，而上一季度我們提高了 Dye & Durham 和 Neiman FILO 相關費用時為 930 萬美元。同樣，其他收入雖然強勁，達到 520 萬美元，但鑑於第三季其他收入的增加，與上一季相比有所下降。

Net expenses, excluding this quarter's noncash accrual related to capital gains incentive fees, were $26.3 million, down $1.9 million from the prior quarter. This was primarily due to lower other operating expenses and lower cash incentive fee expenses.

淨支出（不包括本季與資本利得激勵費相關的非現金應計費用）為 2,630 萬美元，比上一季減少 190 萬美元。這主要是由於其他營運費用和現金獎勵費用減少。

Our funding cost in Q4 continued to benefit from the one-quarter timing lag on the LIBOR reset date on our interest rate swaps and the downward movement in LIBOR in Q3. The weighted average interest rate on our average debt outstanding decreased by approximately 10 basis points quarter-over-quarter. Since LIBOR remained relatively flat during Q4, we would not expect to see any rate-related impact in our cost of debt in our Q1 results.

我們第四季的融資成本繼續受益於利率互換 LIBOR 重置日期四分之一的時間滯後以及第三季度 LIBOR 的下行勢頭。我們平均未償債務的加權平均利率較上月下降約10個基點。由於倫敦銀行同業拆借利率在第四季度保持相對平穩，我們預計第一季的債務成本不會受到任何與利率相關的影響。

Reviewing the unit economics of our business in 2020, in a year of heavy repayments, we generated robust fundings that allowed us to slightly increase our average financial leverage and we maintained our all-in asset-level yields despite headwinds from LIBOR. We also benefited from a lower cost of debt as a result of our floating rate liability structure. These factors together drove an increase in our year-over-year ROE on net investment income from 12% to 13%. Further, net realized and unrealized gains on our investments and net unrealized gains on our interest rate swaps related to our 2022 and 2023 notes contributed to a record high ROE on net income of 15.8% for 2020, compared to 14.5% in 2019.

回顧2020 年我們業務的單位經濟效益，在償還巨額資金的一年中，我們產生了強勁的資金，使我們能夠略微提高平均財務槓桿，並且儘管受到LIBOR 的不利影響，我們仍保持了總資產水平收益率。由於我們的浮動利率負債結構，我們也受益於較低的債務成本。這些因素共同推動我們的淨投資收益 ROE 年比從 12% 上升至 13%。此外，我們的投資的已實現和未實現淨收益以及與2022 年和2023 年票據相關的利率掉期的未實現淨收益促成了2020 年淨收入ROE 創下歷史新高，達到15.8%，而2019 年為14.5%。

As we look ahead to 2021, based on our expectations for our net asset level yields, LIBOR, cost of funds and financial leverage, we expect to target a return on equity of 11.5% to 12%. Using our year-end book value per share of $15.86, which is adjusted to include the impact of our Q4 supplemental dividend and 2021 special dividend, this corresponds to a range of $1.82 to $1.90 for full year 2021 net investment income per share.

展望 2021 年，根據我們對淨資產水準收益率、LIBOR、資金成本和財務槓桿的預期，我們預期股本回報率目標為 11.5% 至 12%。使用我們每股15.86 美元的年末帳面價值（經過調整以包括第四季度補充股息和2021 年特別股息的影響），這相當於2021 年全年每股淨投資收益在1.82 美元至1.90 美元的範圍內。

With that, I'd like to turn it back to Josh for concluding remarks.

說到這裡，我想把它轉回給喬許做總結發言。

Thank you, Ian. I'd like to close our prepared remarks today by thanking our team for their efforts this year in our business' accomplishments in 2020. I also like to thank all of our stakeholders for their ongoing engagement and support. Maintaining your trust is very important to us, and hopefully through our series of public letters and frequent dialogue this past year, we've made apparent that timely and clear communication, both externally and internally, is a critical pillar of our business and our success.

謝謝你，伊恩。在結束今天準備好的演講時，我想感謝我們的團隊今年為我們 2020 年的業務成就所做的努力。我還要感謝所有利益相關者的持續參與和支持。保持您的信任對我們非常重要，希望透過去年的一系列公開信和頻繁對話，我們已經清楚地表明，及時、清晰的外部和內部溝通是我們業務和成功的關鍵支柱。

Our focus for the year ahead is to continue to allocate capital in ways that generate top-tier results for our stakeholders and create value for our management teams and portfolio companies. We'll do this through continued assessment of appropriate investment themes based on the world around us, identifying opportunities within our existing ecosystems, and finding new ways to leverage the capabilities and relationships across the Sixth Street platform.

我們未來一年的重點是繼續以為利害關係人帶來頂級成果並為我們的管理團隊和投資組合公司創造價值的方式分配資本。我們將透過根據我們周圍的世界持續評估適當的投資主題、識別現有生態系統中的機會以及尋找利用第六街平台的能力和關係的新方法來實現這一目標。

With that, thank you everybody for your time today. Operator, please open the line for questions.

在此，感謝大家今天抽出時間。接線員，請開通提問線。

(Operator Instructions) Our first question comes from Devin Ryan with JMP Securities.

（操作員指示）我們的第一個問題來自 JMP 證券的 Devin Ryan。

So I appreciate all the detailed commentary and outlook. If I look at the current leverage levels, you're still at the lower end of your target range and you have your fairly significant liquidity in, obviously, what's a strong deal-making environment. So I'd just love to get a little more context around how you guys are thinking about leveraging portfolio growth over the next few quarters and how that kind of ties in with some of the outlook you just provided.

所以我很欣賞所有詳細的評論和展望。如果我看看目前的槓桿水平，你仍然處於目標範圍的下限，顯然，在一個強大的交易環境中，你擁有相當大的流動性。因此，我只是想了解更多有關你們如何考慮在未來幾個季度利用投資組合增長的背景信息，以及這與你們剛剛提供的一些前景有何联系。

Sure. Look, I think in the short term, we have a decently strong pipeline. And as you point out, we have a ton of liquidity given the capital rates on the right-hand side of the balance sheet, both the revolver extension and upsize and the bond issuance. I would say in this environment, given some of the sole kind of tail risk and uncertainty, it's unlikely that from a risk perspective, we will operate at the top end of our target leverage ratio. So I would not expect that. But just given the uncertainty, we think there could be some opportunities in the future to take advantage of some volatility.

當然。看，我認為在短期內，我們擁有相當強大的管道。正如您所指出的，考慮到資產負債表右側的資本利率、左輪手槍的擴展和規模擴大以及債券發行，我們擁有大量的流動性。我想說，在這種環境下，考慮到一些唯一的尾部風險和不確定性，從風險角度來看，我們不太可能在目標槓桿率的頂端進行操作。所以我沒想到會這樣。但考慮到不確定性，我們認為未來可能有一些機會利用一些波動性。

Okay. Great. Then maybe just want to kind of follow in on that comment. With the really, obviously, tight spreads we're seeing here, but the strong deal flow, what are your expectations for syndication activity to generate additional fee income to essentially position and remain active but save some dry powder to potentially take advantage of when volatility does pick up and perhaps opportunities increase?

好的。偉大的。然後也許只是想跟進該評論。我們在這裡看到的價差確實很明顯很窄，但交易量強勁，您對銀團活動有何期望，以產生額外的費用收入，以基本上定位並保持活躍，但節省一些乾粉，以便在波動時可能利用機會會增加嗎？

Yes. Look, I think that most definitely we'll see some opportunities to generate some syndication fees. And those have ranged, what, between $0.02 and $0.04 a year, something like that, historically?

是的。看，我認為我們肯定會看到一些產生銀團費用的機會。從歷史上看，這些費用的範圍是每年 0.02 美元到 0.04 美元之間，類似的情況嗎？

Yes. Yes, it was only $0.01 last quarter.

是的。是的，上個季度僅為 0.01 美元。

But on an annualized basis, what, like somewhere between $0.02 and $0.04?

但以年化計算，大約是 0.02 美元到 0.04 美元之間？

That's right.

這是正確的。

Okay. So that's kind of the expectation then still going forward?

好的。那麼這就是我們對未來的期望嗎？

Yes. And most definitely -- I think there will be most definitely opportunities. And look, I think with the broad-based Sixth Street platform, we clearly have the ability to move up markets and do big deals and provide certainty to our counterparties and management teams to allow them to take advantage of opportunities in their own business and -- for growth or M&A. So I think we always try to find the right balance of using exemptive relief for co-invest and generating syndication fees.

是的。毫無疑問——我認為肯定會有機會。看，我認為憑藉基礎廣泛的第六街平台，我們顯然有能力提升市場並進行大宗交易，並為我們的交易對手和管理團隊提供確定性，使他們能夠利用自己業務中的機會，並且 - -用於成長或併購。因此，我認為我們總是試圖在使用共同投資豁免減免和產生銀團費用之間找到適當的平衡。

Our next question will come from Robert Dodd with Raymond James.

我們的下一個問題將由羅伯特·多德和雷蒙德·詹姆斯提出。

And congratulations on a really good year, not just the quarter, but in a pretty tough environment. A question more related to the liability side. I mean, Josh, now that you can borrow, frankly, unsecured at 2.5, I mean, swap it out, but at 2.5, does that change your appetite for moving down market? And by down market, I mean to lower coupon in terms of the types of deals, like you mentioned one of them, the software deal where you're doing some asset-backed on the working capital side.

恭喜您度過了非常好的一年，不僅是這個季度，而且是在一個非常艱難的環境中。一個與​​責任方面更相關的問題。我的意思是，喬什，現在你可以以2.5 的利率借錢，坦率地說，無擔保，我的意思是，將其換出，但是以2.5 的利率，這會改變你向低端市場轉移的胃口嗎？就低端市場而言，我的意思是在交易類型方面降低息票，就像你提到的其中一項，即你在營運資金方面進行一些資產支持的軟體交易。

I mean a lot of your IRR, frankly, doesn't come from the coupon anyway, it comes from the product differentiation of fees you can get. So if the coupon doesn't matter as much and your borrowing costs are moving even lower, is there an appetite for shifting kind of where the play is because you can still generate the ROEs, or even higher ROEs, even with lower coupons given that's not where a lot of your income comes from?

我的意思是，坦白說，你的許多內部報酬率並不是來自優惠券，而是來自你可以獲得的費用的產品差異化。因此，如果息票不再那麼重要，並且您的借貸成本甚至更低，是否有興趣改變遊戲的方向，因為即使息票較低，您仍然可以產生淨資產收益率，甚至更高的淨資產收益率你的大部分收入不是從哪裡來的？

Yes. So look, I think I'll have 2 comments. We actually think about the world for better or worse on an unlevered basis. You kind of -- you can get your specialty finance companies and lenders and banks, and everybody kind of gets themselves into trouble if they lose the forest through the trees and they just focus on marginal unit economics. Because anything is, quite frankly, accretive on a marginal basis if you just look at your cost of financing and layer in your -- where you sit on the cost curve, which includes fees and incentive fees. That might not mean that you're getting paid enough to take that credit risk.

是的。所以看，我想我會有兩則評論。我們實際上是在無槓桿的基礎上思考世界是好是壞。你可以讓你的專業金融公司、貸款人和銀行，如果他們只專注於邊際單位經濟效益，每個人都會陷入麻煩。因為坦白說，如果你只看你的融資成本和你在成本曲線上的位置，其中包括費用和激勵費用，那麼任何事情都會在邊際基礎上增值。這可能並不意味著您獲得的報酬足以承擔該信用風險。

And so I think it's the finding the balance between understanding your unit economics and your marginal unit economics in your business and also finding -- making sure you're making good investments on an unlevered basis that -- where you're getting paid enough spread or enough economics to cover default risks and probability of loss. And that your -- there's relative value and you're providing value to your shareholders for the economics they pay you.

因此，我認為這是在了解你的單位經濟效益和你的業務中的邊際單位經濟效益之間找到平衡，並找到——確保你在無槓桿的基礎上進行良好的投資——在哪裡你可以獲得足夠的利差或足夠的經濟能力來涵蓋違約風險和損失機率。而且你的——有相對價值，你正在為你的股東提供他們支付給你的經濟價值。

And so I think the answer is a qualified "yes," which is you kind of got to look at the entire ecosystem and find the right balance between making sure you're providing relative value based on where you sit on the cost curve, make sure the economics may work on the cost of equity, but also looking on an unlevered basis the investments you're making and make sure they make sense given the underlying risk you're taking.

因此，我認為答案是合格的“是”，也就是說，您必須審視整個生態系統，並在確保您根據成本曲線上的位置提供相對價值、使確保經濟學可能會影響股本成本，但也要在無槓桿的基礎上審視您正在進行的投資，並確保考慮到您所承擔的潛在風險，這些投資是有意義的。

I appreciate that. Kind of tied to this. On the -- and I think it was a follow -- I can't remember, the software company where you did the differentiated product. I mean you talked about the loan plus the asset-backed component of it. Is there increasing or decreasing demand for that kind of product set right now? Given, I mean, the market is -- the lending markets, to exaggerate, is almost willing to give away money at this point, so are those nuanced products -- is there increasing demand? Or is that actually dropping off as we head into '21 given the easy lending terms elsewhere in the market?

我很感激。有點與此相關。關於——我認為這是一個後續——我不記得了，你是在哪家軟體公司開發差異化產品的。我的意思是你談到了貸款及其資產支持部分。目前對該類產品的需求是增加還是減少？我的意思是，考慮到市場——誇張地說，貸款市場現在幾乎願意放棄資金，那些微妙的產品也是如此——需求是否在增加？或者說，隨著我們進入 21 世紀，考慮到市場其他地方的寬鬆貸款條件，這種情況實際上會下降嗎？

Yes. Look, I think this [year] (corrected by company after the call), I think 60% of our origination -- Ian, correct me if I'm wrong, and Bo, was nonsponsored and 40% sponsored. So look, there are still those opportunities outside the sponsor lane to find -- to provide certainty and to provide solutions for companies that we think are good companies or good assets and that we could also make loans for our shareholders to find that balance between providing value to our issuers and value to our shareholders. And that was -- I think there's still that opportunity. And when we look at our pipeline, there are some of that in our pipeline for sure.

是的。看，我認為今年（在電話會議後由公司更正），我認為我們的 60% 的起源 - Ian，如果我錯了，請糾正我，而 Bo，是非贊助的，40% 是贊助的。所以看，在贊助商管道之外仍然有一些機會可以找到——為我們認為是好公司或好資產的公司提供確定性並提供解決方案，我們也可以為我們的股東提供貸款，以在提供和在提供解決方案之間找到平衡。對我們的發行人和股東的價值。那就是——我認為仍然有這樣的機會。當我們查看我們的管道時，我們的管道中肯定有一些。

But most definitely, the -- just to hit on it, the -- there has been a large push -- and this is not just in any market, so all risk assets are tighter. And so there still, I think you can say, is relative value in credit. But like if you look at earnings yields for the S&P, if you look at credit spreads, all risk assets are tighter. And I think that's been by design by policymakers.

但最肯定的是，——只是為了抓住這一點，——已經有很大的推動力——這不僅僅是在任何市場，因此所有風險資產都更加緊張。因此，我認為你可以說，信貸的相對價值仍然存在。但就像如果你看看標準普爾指數的收益率一樣，如果你看看信用利差，所有風險資產都會收緊。我認為這是政策制定者設計的。

I think the big watch out -- not to get into politics, but the big watch out is that the easing policy by the Fed does -- has contributed to inequities. And I'm not sure I have a good answer to how to solve this because it also supports the economy. But people who own assets do well, and people who don't own assets don't do well. And so you kind of end up with a situation where we had post-global financial crisis, which is populism from the right and populism from the left. And it's -- you can kind of see history repeat itself pretty quickly given the policy moves post -- in COVID where, unfortunately, I think we're going to be in a period where we're going to have both those forces from the right and the left given the unintended consequences of the Fed policy.

我認為需要重點關注的是——不要涉足政治，但重點關注的是聯準會的寬鬆政策確實導致了不平等。我不確定我對如何解決這個問題有一個很好的答案，因為它也支持經濟。但擁有資產的人過得好，不擁有資產的人過得不好。因此，最終會出現全球金融危機後的情況，即右翼民粹主義和左翼民粹主義。考慮到新冠疫情后的政策舉措，你可以看到歷史很快重演，不幸的是，我認為我們將處於這樣一個時期，我們將同時擁有來自考慮到美聯儲政策的意外後果，右派和左派都有所不同。

And our next question will come from Finian O'Shea with Wells Fargo Securities.

我們的下一個問題將來自富國銀行證券公司的 Finian O'Shea。

This is actually Jordan Wathen calling in today for Finian O'Shea. Just keep it real short and simple here. I know you don't have a lot of latitude to speak about in individual portfolio companies. But when we're looking at, looks like DaySmart was refi'd in December, the revolver commit went away. We were really just wondering, the disclosure says that maybe first lien last out loan now. So we were really wondering if you could just give us some kind of a framework, I guess, on how this loan -- how loans like this, not necessarily this one, but how loans like this become first lien last out. Is that you inherit another bank with an acquisition, something like that?

這其實是喬丹沃森今天為菲尼安奧謝打來的電話。在這裡保持簡短和簡單即可。我知道你在個別投資組合公司中沒有太多的自由度來談論。但當我們看到 DaySmart 似乎在 12 月進行了重新配置時，左輪手槍承諾就消失了。我們真的只是想知道，披露說也許第一留置權現在已經超過了貸款。所以我們真的想知道你是否可以給我們某種框架，我想，關於這筆貸款如何 - 像這樣的貸款，不一定是這個，但這樣的貸款如何成為第一留置權。您是否透過收購繼承了另一家銀行，類似的事情？

Yes. I think, Bo, remind me on DaySmart, I think they -- we brought in a bank on an acquisition.

是的。我想，Bo，在 DaySmart 上提醒我，我想他們——我們透過收購引入了一家銀行。

Correct. There was M&A activity that increased the size of the -- and scale of the business. And at that point, we brought in a bank to lay out some revolver exposure into a small amount of the term.

正確的。併購活動擴大了公司的規模和業務規模。那時，我們聘請了一家銀行，將一些左輪手槍曝險納入期限的一小部分。

Okay. And so that's -- when we see something like that, that's what we should assume just in a general sense?

好的。所以，當我們看到類似的事情時，這就是我們應該在一般意義上假設的？

Well, I won't tell you what my father said about assuming, but feel free to ask us.

好吧，我不會告訴你我父親關於假設的說法，但請隨意問我們。

Our next question will come from Ryan Lynch with KBW.

我們的下一個問題將來自 KBW 的 Ryan Lynch。

Congrats on a really great 2020. I have just a couple of questions. One, just talking about your liability structure. Obviously, you guys priced some really attractive notes, 2.5% fixed rate that you guys swapped out to L plus 1.91%. I'm just curious, can you talk about why you guys then made the decision to expand your revolver given that, as you mentioned in the prepared comments, you guys are issuing unsecured debt which has a lot more flexibility at basically the same price as the revolver? So why did you guys then extend out the revolver? Number one.

恭喜您度過了非常美好的 2020 年。我只有幾個問題。一，只是談論你的責任結構。顯然，你們定價了一些非常有吸引力的票據，2.5% 的固定利率，你們換成了 L 加 1.91%。我只是很好奇，你們能談談為什麼你們決定擴大你們的左輪手槍，因為正如你們在準備好的評論中提到的那樣，你們正在發行無擔保債務，這種債務具有更大的靈活性，價格基本與左輪手槍？那你們為什麼要伸出左輪手槍呢？第一。

And on that point, would you guys think about changing the composition of your liability structure now that you can price debt at, again, the same price -- unsecured debt at the same price as your revolver? Would you look to add more unsecured debt as a percentage of your liability structure?

在這一點上，既然你們可以再次以相同的價格對債務進行定價——無擔保債務的價格與左輪手槍的價格相同，你們會考慮改變負債結構的組成嗎？您是否希望在負債結構中增加更多無擔保債務？

Yes. So first of all, I don't know if we can add any more unsecured debt, quite frankly. I think it's, Ian, at year-end, it was I think most of our capital structure, right?

是的。首先，坦白說，我不知道我們是否可以增加更多無擔保債務。伊恩，我認為在年底，我認為我們的大部分資本結構都是如此，對吧？

Yes. Yes, 85% pro forma.

是的。是的，預計 85%。

Yes. So effectively, you -- well, look, if the business grows, there'll most definitely be an opportunity. I think there's a couple of different strategies to this one. One is the unsecured market for BDCs have been fickle, to say the least, over the years. I think it's actually taken a direction for the better, which is it feels more stable, it feels like that market is more accessible, and it feels like that market is kind of more accessible and more steady over time. So I think that's a good thing for the industry. And quite frankly, I think there's still value to be had if you look on a ratings basis and a spreads basis for investors that keep supporting the industry.

是的。所以實際上，你——嗯，看，如果業務成長，肯定會有機會。我認為對此有幾種不同的策略。一是多年來，至少可以說，BDC 的無擔保市場一直變化無常。我認為它實際上朝著更好的方向發展，感覺更穩定，感覺市場更容易進入，隨著時間的推移，感覺市場更容易進入、更穩定。所以我認為這對這個行業來說是一件好事。坦白說，我認為如果你專注於持續支持該行業的投資者的評級基礎和利差基礎，那麼仍然有價值。

The second thing is -- you asked a good question. Look, I think the revolver market has also been a little bit fickle for BDCs over time and for the sector over time. And the one lesson you've learned is, if you look at COVID, is the -- that the cost of insurance of having liquidity during moments of volatility more than enough pays for itself. And so we are most definitely incurring the cost by having -- that cost is relatively small given commitment fees and unused line fees. But that is effectively insurance and allows us to participate in times where capital isn't available and because there's correlation between when there's great opportunities, capital isn't available. And so we're paying for that option to participate.

第二件事是──你問了一個好問題。聽著，我認為隨著時間的推移，對於 BDC 和該行業來說，左輪手槍市場也有點變化無常。如果你看看新冠疫情，你學到的一個教訓是－在波動時期擁有流動性的保險成本足以收回成本。因此，考慮到承諾費和未使用的線路費，我們肯定會承擔一定的成本，而這筆成本相對較小。但這是有效的保險，讓我們能夠在資本不可用的時候參與進來，因為當有很好的機會時，與資本不可用之間存在相關性。所以我們要為參與的選擇付費。

And when you look at our history in 2020, we drove -- I think, Ian, you have the numbers, [$0.43] (corrected by company after the call) of value on a per share basis through activity levels when -- in a risk-off environment because we had made that investment and bought that insurance and that optional liquidity. Does that make sense to you?

當你回顧我們 2020 年的歷史時，我們通過活動水平推動了——我想，伊恩，你有數字，[0.43 美元]（在電話會議後由公司更正）每股價值通過活動水平——在避險環境，因為我們已經進行了投資併購買了保險和可選的流動性。這對你來說有意義嗎？

Yes. Yes.

是的。是的。

I mean that is -- and quite frankly, I think as not only an owner of TSLX itself, but as a -- as the manager or the steward of the capital -- or shareholder capital, you got to burden or you should burden your unit economics because you can't run the model so tight where you don't pay for an insurance, i.e., the option on liquidity. You don't -- you run it at max leverage, you just -- the business model given the regulatory constraints, the mark-to-market and the correlation between risk-off environments and no capital available, you just -- you have to bake in those costs to fully burden your -- in your unit economics to think about the business across the cycle.

我的意思是 - 坦率地說，我認為不僅作為 TSLX 本身的所有者，而且作為 - 作為資本 - 或股東資本的經理或管理者，你必須負擔或你應該負擔你的單位經濟學，因為你不能在不支付保險（即流動性選擇）的情況下運行模型如此嚴格。你不——你以最大槓桿運行它，你只是——考慮到監管限制、按市價計價以及避險環境和沒有可用資本之間的相關性的商業模式，你只是——你有考慮到整個週期的業務，這些成本將給你的單位經濟帶來完全負擔。

Yes. That makes sense. And then my follow-up would be, you gave some good color on the market. A couple of questions on just what you guys are seeing in the market. You mentioned this quarter about most of your originations were focusing on like mission-critical software businesses. Obviously, that's a very competitive space. I mean most direct lenders want to be in that space. So how are you guys still finding good opportunities in that space? And I think you mentioned maybe 60% of your originations were not sponsored. So maybe you guys are now focusing more on the nonsponsored route.

是的。這就說得通了。然後我的後續行動是，你在市場上提供了一些好的色彩。關於你們在市場上看到的情況的幾個問題。您在本季提到，您的大部分業務都專注於關鍵任務軟體業務。顯然，這是一個競爭非常激烈的領域。我的意思是大多數直接貸款人都希望進入這個領域。那麼你們要如何在這個領域找到好的機會呢？我想你有提到過，你的創作中可能有 60% 沒有得到贊助。所以也許你們現在更關注非贊助路線。

And then as a kind of a side question to that, can you talk about -- obviously, competitions return to the sponsored-backed areas kind of basically the pre-COVID levels. Can you talk about what competition looks like and deal terms and structures are looking like in some of the niche businesses or the niche strategies you guys focus on, like ABL, pharma, health care, those sort of businesses?

作為一個附帶問題，你能談談——顯然，比賽基本上回到了贊助支持的領域，基本上是新冠疫情前的水平。您能否談談在一些利基業務或您關注的利基策略（例如 ABL、製藥、醫療保健等業務）中，競爭是什麼樣的以及交易條款和結構是什麼樣的？

Yes. So look, I think this quarter most definitely was an anomaly on the nonsponsored side between J.C. Penney's, which we're involved in, and Follett, which is a great family-owned business, which is a half software business and half retail business effectively operating bookstores on college campuses, that was a decent amount of our activity levels.

是的。所以看，我認為本季絕對是我們參與的 J.C. Penney's 和 Follett 之間非贊助方面的反常現象，Follett 是一家偉大的家族企業，實際上是一半軟體業務和一半零售業務在大學校園裡經營書店，這是我們活動水平的相當一部分。

But we'll continue to be active in the business services software. And look, we have a great -- I think a great reputation of providing -- given that we're deep in those sectors, providing certainty in being a reliable counterparty and being a good counterparty in that space.

但我們將繼續活躍在商業服務軟體領域。看，我們在提供服務方面享有盛譽，我認為我們在這些領域很深入，為成為該領域可靠的交易對手和良好的交易對手提供了確定性。

Bo, do you have anything to add on that front?

Bo，您對此還有什麼要補充的嗎？

No. Look, I think we have a 20-plus year history in the technology and software space and allows us to be very thematic in our approach to the market. That thematic approach, we're able to find deals, both within and outside of the sponsor network where we're specialized and we can differentiate our capital. We'll continue to do that.

不，我認為我們在技術和軟體領域擁有 20 多年的歷史，這使我們能夠以非常主題的方式進入市場。透過這種主題方法，我們能夠在我們專業的贊助商網絡內部和外部找到交易，並且我們可以使我們的資本脫穎而出。我們將繼續這樣做。

As Josh mentioned, look, we're in a historically tight spread environment. And we continue to point to overcapacity in the direct lending market. And to us, that means you focus on your lanes and continue to focus on your thematic approach. And I think the ability to originate both in and out of the sponsor network is a competitive advantage.

正如喬希所提到的，你看，我們正處於歷史上價差緊張的環境。我們繼續指出直接貸款市場的產能過剩。對我們來說，這意味著您專注於您的車道並繼續專注於您的主題方法。我認為在贊助商網絡內外發起的能力是一種競爭優勢。

(Operator Instructions) Our next question will come from Melissa Wedel from JPMorgan.

（操作員指示）我們的下一個問題將來自摩根大通的 Melissa Wedel。

Wondering if the return of pretty elevated competition in the market has impacted either the level or structure of some of the fees and prepayment penalties that you guys typically layer in these deals that you do?

想知道市場競爭相當激烈的回歸是否影響了你們通常在這些交易中加入的一些費用和預付款罰金的水平或結構？

Yes. I would say, look, again, I think being thematic and being able to do small deals and large deals, I don't think has mass changed the economics of our business. That being said, we're not immune to competition. And so -- but I think just being -- having the relatively small capital base and -- for Sixth Street Specialty Lending have -- being able to do small deals and big deals, that provides us a lot of degrees of freedom and being thematic provides a lot of degrees of freedom to continue to find good value for our shareholders and while delivering excellent value, including certainty to our counterparties.

是的。我想說，再看一次，我認為主題化並能夠進行小額交易和大筆交易，我認為這並沒有大規模改變我們業務的經濟狀況。話雖這麼說，我們也不能免於競爭的影響。所以——但我認為——擁有相對較小的資本基礎，並且——對於第六街專業貸款來說——能夠進行小額交易和大筆交易，這為我們提供了很大的自由度並成為主題提供了很大的自由度，可以繼續為我們的股東尋找良好的價值，同時提供卓越的價值，包括為我們的交易對手提供確定性。

Bo or Fishy, anything to add? I'm just trying to get Fishy involved here.

Bo 或 Fishy，有什麼要補充的嗎？我只是想讓 Fishy 參與其中。

No. I mean I'd reiterate what Josh said as far as the size of our capital base allows us to not have to necessarily be a market flow-oriented player. So we see a lot of opportunities and can find the most interesting risk return opportunities to do.

不，我的意思是我要重申喬許所說的話，就我們的資本基礎規模而言，我們不必一定是一個以市場流動為導向的參與者。所以我們看到很多機會，也能找到最有趣的風險報酬機會去做。

Okay. Got it. And then on the repayment side, what's your outlook for repayment activity going forward? I mean do you think that -- well, I guess, generally -- general market commentary but then also specific to your portfolio, do you feel like you've seen the repayment activity that you're likely to see? Or as long as this environment persists, do you think there's more room for that?

好的。知道了。那麼在還款方面，您對未來還款活動的前景又是如何呢？我的意思是，你是否認為——嗯，我想，一般來說——一般市場評論，但也針對你的投資組合，你是否覺得你已經看到了你可能會看到的還款活動？或者說只要這種環境持續下去，你認為還有更多的空間嗎？

I mean it feels -- Ian, you should comment on that. It feels less in Q1. But Ian, you should comment on that.

我的意思是感覺——伊恩，你應該對此發表評論。感覺第一季就少了。但是伊恩，你應該對此發表評論。

Yes. I mean, I think just as a byproduct of having a lot more origination activity in the second half of the year, our portfolio is a little bit younger as we start this year. So anticipating a slight drop-off in repayment is probably a natural consequence of that cycle. I think that's ignoring, of course, any individual company-specific needs.

是的。我的意思是，我認為，作為今年下半年開展更多發起活動的副產品，我們的投資組合在今年開始時有點年輕。因此，預計還款額略有下降可能是該週期的自然結果。當然，我認為這忽略了任何個別公司的特定需求。

There's this economic hedge in the model, which is like given that we don't -- given that on the -- there's not -- we take -- we defer our origination fees. So when there's high prepayments, we lose the benefit of financial leverage vis-à-vis our economics, but we do have the accretion of OID -- of unamortized OID that runs the model. And then in low prepayment environments, you get some benefit from financial leverage. So there's a natural kind of hedge to the economics.

模型中有這種經濟對沖，這就像考慮到我們沒有——考慮到——沒有——我們採取——我們推遲我們的發起費。因此，當預付款較高時，我們就會失去財務槓桿相對於經濟的好處，但我們確實會增加 OID——運行模型的未攤銷 OID。然後在低預付款環境中，您可以從財務槓桿中獲得一些好處。因此，經濟上存在著一種自然的對沖。

Thank you. And I'm showing no further questions in the queue at this time. I'll turn the call back over to management for any further remarks.

謝謝。目前我在隊列中沒有顯示任何其他問題。我會將電話轉回管理層以徵求進一步意見。

Great. So I have 2 general comments or 2 general things that maybe touch on a little quick. Look, people have probably seen the -- as people know, Sixth Street is a parent company of Adviser, and so they've probably seen the litigation. And given it's litigation, there's a limit to what we can say, but I wanted to be transparent about it.

偉大的。所以我有 2 條一般性評論或 2 條一般性的事情，可能會涉及得有點快。聽著，人們可能已經看到了——正如人們所知，第六街是 Adviser 的母公司，所以他們可能已經看到了訴訟。鑑於這是訴訟，我們能說的有限，但我想對此保持透明。

So Sixth Street accepted a strategic investment from Dyal back in 2017. And in December, Dyal announced a merger with Owl Rock to go public through a SPAC. We recently filed litigation in Delaware to enjoin Dyal from transferring their interest in Sixth Street to the merged entity without our consent, which is a breach of our 2017 agreement. A public version of this complaint is going to become available sometime today, if it isn't already.

因此，Sixth Street 早在 2017 年就接受了 Dyal 的策略投資。12 月，Dyal 宣布與 Owl Rock 合併，透過 SPAC 上市。我們最近在特拉華州提起訴訟，禁止 Dyal 在未經我們同意的情況下將其在第六街的權益轉讓給合併後的實體，這違反了我們 2017 年的協議。該投訴的公開版本將於今天某個時間發布（如果尚未發布）。

A few things to be clear on. First and foremost, we're in the partnership business and we take our partnership obligations seriously. We honor our deals and expect our partners will, too. In this case, Dyal didn't. In 20 years of business at Goldman Sachs and at Sixth Street, we know what it means to be a business partner, and it means sticking to your agreements. If we didn't do that, and didn't have a reputation for doing so, we wouldn't have been able to do this for so long and we wouldn't have been able to build a $50 billion investment firm.

有幾件事需要明確。首先也是最重要的是，我們從事合夥業務，我們認真對待我們的合夥義務。我們尊重我們的交易，並希望我們的合作夥伴也能這樣做。在這種情況下，戴爾沒有。在高盛和第六街的 20 年業務經驗中，我們知道成為業務合作夥伴意味著什麼，這意味著遵守協議。如果我們不這麼做，也沒有這樣做的聲譽，我們就不可能這樣做這麼久，我們就不可能建立一家價值 500 億美元的投資公司。

Number two, we entered into a partnership with Dyal. And they told us verbally and in writing and said so publicly that we are partners and not competitors, and we believed them. That's what's in our agreement, and now they're breaching it. They negotiated very limited exceptions, which our complaint outlines, which were intended only to provide liquidity to their underlying fund LPs, which isn't happening here.

第二，我們與 Dyal 建立了合作關係。他們以口頭和書面告訴我們，並公開表示我們是合作夥伴而不是競爭對手，我們相信他們。這是我們的協議中規定的，但現在他們違反了。他們協商了非常有限的例外情況，我們的投訴概述了這些例外情況，其目的只是為其基礎基金有限合夥人提供流動性，但這裡沒有發生這種情況。

We really didn't want to have to file a lawsuit. But no matter how others might choose to act, our core principle is that we're always going to act in the best interest of our investors. Dyal deserted our partnership and their lack of engagement with us before or after announcing the proposed merger put us in a position where we had no choice.

我們真的不想提起訴訟。但無論其他人如何選擇採取行動，我們的核心原則是我們始終會以投資者的最佳利益為出發點。 Dyal 放棄了我們的合作夥伴關係，並且他們在宣布擬議合併之前或之後缺乏與我們的接觸，使我們陷入了別無選擇的境地。

And finally, our dispute is directly with Dyal and not with Owl Rock. We have known the principals of Owl Rock for many years, and we have a great deal of respect for their firm as a peer and a competitor. Other than the fact that they are parties to the transaction with Dyal, Sixth Street has no issues with Owl Rock on this.

最後，我們的爭議是直接與 Dyal 發生的，而不是與 Owl Rock 發生的。我們與 Owl Rock 的負責人相識多年，作為同行和競爭對手，我們非常尊重他們的公司。除了他們是與 Dyal 交易的當事人之外，第六街與 Owl Rock 在這方面沒有任何問題。

That's it, again, on the complaint, it will be, I think, public today. And given the litigation process, we have a limit on things to say.

就是這樣，關於投訴，我認為今天將會公開。考慮到訴訟程序，我們能說的話是有限的。

The second thing I would like to say is that this -- obviously, this is Black History Month and next month is Women's History Month, and I know us, as a firm, we spend a lot of time thinking and talking to our people about our history and the good and the bad of our history. And the -- hopefully, as we will in our firm, people will take some time and think about not only our history, but actually the collective contributions of both these groups to our society, because there's been a ton. And so hopefully, people will use the time for that.

我想說的第二件事是，顯然，這是黑人歷史月，下個月是婦女歷史月，我知道我們，作為一家公司，我們花了很多時間思考並與我們的員工談論我們的歷史以及我們歷史的好與壞。希望人們會花一些時間，不僅思考我們的歷史，而且實際上這兩個群體對我們社會的集體貢獻，因為我們已經做出了許多貢獻。希望人們能夠利用這段時間。

And then the last thing I will say, because we always end this way, which is I hope people enjoy the spring. Hopefully, it's an easier spring than last spring. Easter coming up. Passover coming up. And we'll talk to you soon. Thanks so much.

然後我要說的最後一件事，因為我們總是這樣結束，這就是我希望人們享受春天。希望今年的春天比去年春天更輕鬆。復活節快到了。逾越節即將來臨。我們很快就會和你談談。非常感謝。

Thanks, everyone.

感謝大家。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。