Core Viewpoint - The recent quarterly earnings report for Oaktree Specialty Lending Corporation (OCSL) indicates that while the stock price has remained flat, the underlying business fundamentals remain strong despite some unfavorable one-off events [3][10]. Financial Performance - The adjusted net investment income (NII) for Q2 2024 was $0.56 per share, which is $0.01 lower than the previous quarter [3]. - The adjusted total investment income decreased by $700,000, primarily due to unfavorable timing of capital deployment and spread compression from a shift away from higher-yielding second liens [3]. - OCSL's non-accrual level improved from 4.2% in the prior quarter to 2.4% in Q2 2024, with no new non-accruals recognized during the quarter [3][4]. Investment Strategy - OCSL has successfully reduced its exposure to second lien structures from 16% in September 2022 to 5% as of Q2 2024, focusing more on first lien investments [3]. - New investment commitments totaled $396 million at a weighted average yield of 11.1%, slightly lower than the current portfolio yield due to a focus on defensive investments [4]. Leverage and Capital Structure - OCSL's leverage remains below the sector average, with an indebtedness of 107% compared to the sector average of 115% [4]. - The company funded new investments through retained cash generation and an additional share issuance of $46 million at an average 104% premium to NAV, which is beneficial for existing shareholders [4]. Dividend Coverage - The current dividend coverage stands at 102%, impacted by previous non-accruals and timing of repayments and fundings [4]. - A reduction in management fees to 1% as of July 1st is expected to positively influence adjusted NII and enhance dividend coverage [4]. Market Position - Despite challenges in adjusted NII, OCSL's fundamentals, including below-average leverage and a de-risked portfolio, present a favorable investment opportunity [11]. - The company has delivered positive total returns since the last analysis but has underperformed compared to the broader BDC market [10].

ryasick Oaktree Specialty Lending (NASDAQ:OCSL) suffered weakness in its dividend coverage metrics for the quarter ending March. While the decline in the dividend coverage was not great, the BDC announced that it was lowering its management fee which is set to improve Oaktree Specialty Lending’s dividend coverage. As a result, I don’t expect the BDC to lower its dividend as the estimated impact of the management fee reduction is set to improve Oaktree Specialty Lending's dividend coverage metrics. The c ...

Adam Gault In this article, we catch up on the latest quarterly results of Oaktree Specialty Lending Corporation (NASDAQ:OCSL). OCSL had another disappointing quarter, though it still eked out a positive total NAV return. Additional writedowns on existing non-accruals and the timing of new investments proved to be key headwinds to both NAV and net income. OCSL is primarily focused on secured loans, with a low allocation to equity securities. Its sector overweights are software and healthcare - a fairly ...

| --- | --- | |-----------------------------------------|-------| | | | | (As % of total portfolio at fair value) | | | Application Software | 17.5% | | Biotechnology | 4.1% | | Industrial Machinery & Sup. & Cmpnts. | 4.1% | | Health Care Services | 3.9% | | Health Care Technology | 3.4% | | Data Processing & Outsourced Services | 3.0% | | Real Estate Operating Companies | 2.7% | | Pharmaceuticals | 2.3% | | Diversified Support Services | 2.2% | | Interactive Media & Services | 2.2% | 85% Floating Rate Port ...

Oaktree Specialty Lending (OCSL) reported $94.03 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 2.4%. EPS of $0.56 for the same period compares to $0.62 a year ago.The reported revenue represents a surprise of -5.65% over the Zacks Consensus Estimate of $99.66 million. With the consensus EPS estimate being $0.57, the EPS surprise was -1.75%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Exhibit 99.1 Oaktree Specialty Lending Corporation Announces Second Fiscal Quarter 2024 Financial Results and Declares Quarterly Distribution of $0.55 Per Share Announces Permanent Management Fee Reduction LOS ANGELES, CA, April 30, 2024 - Oaktree Specialty Lending Corporation (NASDAQ: OCSL) ("Oaktree Specialty Lending" or the "Company"), a specialty finance company, today announced its financial results for the fiscal quarter ended March 31, 2024. Financial Highlights for the Quarter Ended March 31, 2024 1 ...

LOS ANGELES, April 30, 2024 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) ("OCSL" or the "Company") today announced a permanent reduction in its base management fee. Effective July 1, 2024, the base management fee will be reduced to an annual rate of 1.00% from 1.50% on gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents. The new base management fee will be calculated net of the base management fees that Oaktree Fund Advisers, L ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 1-33901 Oaktree Specialty Lending Corporation (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware (State or jurisdiction of incorporation or organization) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 1-33901 Oaktree Specialty Lending Corporation (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware (State or jurisdiction of incorporation or organizatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 1-33901 Oaktree Specialty Lending Corporation (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware (State or jurisdiction of incorporation or organization) 333 Sou ...