Sixth Street says no direct exposure to SVB, minimal impact from Signature Bank

Sixth Street (TSLX) says it "has no direct exposure to SVB" (SIVB), as assessed both from where its assets — including cash — are held and its counterparty exposure. All of Sixth Street’s operating bank accounts are held at State Street Bank (STT) and Trust Company, the company said. "Sixth Street added that, "From a counterparty exposure perspective, with respect to our liabilities, SVB is not a counterparty to TSLX… We note that Signature Bank (SBNY) is a lender under TSLX’s Revolving Credit Facility with a commitment of $25 million. Based on the Joint Statement by the Department of the Treasury, Federal Reserve and the FDIC on March 12, 2023 announcing the closure of Signature Bank, we consider that bank to be a defaulting lender. However, the impact of this development is minimal to TSLX, since it only reduces our liquidity capacity by approximately $10 million… From an indirect exposure perspective, our asset management team has been working closely with our portfolio companies to understand their banking relationships and the extent of any operational entanglement with SVB. This includes specifically understanding any exposure through cash balances and operating bank accounts. Based on the news disseminated on Sunday evening, including the Joint Statement, we believe our portfolio companies that have exposure to SVB through deposit accounts will be able to access that liquidity."Reference Link