Company: BXSL
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001736035-25-000021
Chunk: 382

Company: Blackstone Secured Lending Fund
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 382
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 origination fees and unamortized discounts, etc.) as compared to $3.8 million for the same period in the prior year, primarily as a result of increased prepayments.

For the three months ended September 30, 2025 and 2024, PIK interest income represented 8.2% and 6.2% of total investment income, respectively, and represented 15.6% and 11.4% of net investment income, respectively. For the nine months ended September 30, 2025 and 2024, PIK interest income represented 6.9% and 6.6% of total investment income, respectively and represented 13.2% and 12.3% of net investment income, respectively. We expect that PIK interest income will vary based on the elections of certain borrowers.

 We expect that investment income will vary based on a variety of factors including the pace of our originations, repayments and changes in interest rates.

Elevated interest rates continued to favorably impact our investment income for the three and nine months ended September 30, 2025. Until September 2025, the Federal Reserve had held interest rates steady this year. Despite the interest rate reductions in September 2025 and October 2025, rates remain elevated relative to the interest rate environment prior to the inflationary spike in 2022-2023. Future decreases in benchmark interest rates may adversely impact our investment income. Conversely, future increases in benchmark interest rates and the resulting impacts to cost of capital have the potential to negatively impact the free cash flow and credit quality of certain borrowers which could impact their ability to make principal and interest payments. If such interest rate fluctuations occur concurrently with a period of economic weakness or a slowdown in growth, our borrowers’ and our portfolio performance may be negatively impacted. Further, significant market dislocation as a result of changing economic conditions could limit the liquidity of certain assets traded in the credit markets, and this could impact our ability to sell such assets at attractive prices or in a timely manner.

Expenses

Expenses were as follows (dollar amounts in thousands):

 Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Interest expense$94,691 $88,191 $279,954 $233,752 Management fees34,959 30,177 103,860 84,312 Income based incentive fees31,254 38,163 100,273