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 ...

Investment Performance - The company reported a significant increase in portfolio fair value, with 99.9% of investments valued based on market quotations or corroborated by independent valuation firms as of March 31, 2024[332]. - As of March 31, 2024, the company held $3,047.4 million in investments at fair value, an increase of 5.4% from $2,892.4 million on September 30, 2023[334]. - Approximately 92.4% of total assets represented investments at fair value as of March 31, 2024, compared to 89.9% as of September 30, 2023[334]. - The composition of the investment portfolio at cost as of March 31, 2024, included 84.20% in senior secured debt and 3.40% in common equity and warrants[340]. - The fair value of senior secured debt was 86.29% of total investments as of March 31, 2024, slightly down from 86.47% on September 30, 2023[340]. - The company’s investments in Biotechnology represented 3.89% at cost as of March 31, 2024, compared to 4.15% on September 30, 2023[341]. Investment Strategy - The company focuses on situational lending, select sponsor lending, stressed sector lending, and public credit to capitalize on less competitive areas for greater returns[318]. - The company aims to generate current income and capital appreciation through flexible financing solutions, including first and second lien loans, unsecured loans, and equity co-investments[317]. - The company emphasizes the importance of resilient business models in its investment strategy, targeting middle market companies with strong fundamentals[323]. - The company’s strategy includes co-investing in senior secured loans through joint ventures, enhancing its market presence in middle-market companies[339]. Financial Results - As of March 31, 2024, the total investment income was $94.0 million, a decrease of $2.3 million or 2.4% compared to $96.3 million for the same period in 2023[358]. - For the six months ended March 31, 2024, total investment income increased by $16.5 million or 9.4% to $192.0 million, compared to $175.5 million for the same period in 2023[359]. - Net expenses for the three months ended March 31, 2024, were $52.7 million, an increase of $2.3 million or 4.6% from $50.3 million in the same period in 2023[360]. - Net expenses for the six months ended March 31, 2024, increased by $15.8 million or 17.5% to $106.5 million compared to $90.6 million for the same period in 2023[361]. - Net investment income for the three months ended March 31, 2024, decreased by $4.6 million compared to the same period in 2023[362]. Debt and Financing - Total debt outstanding as of March 31, 2024, was $1,680.0 million, with a weighted average debt outstanding of $1,665.4 million for the six months ended March 31, 2024[379]. - The company issued $300.0 million in aggregate principal amount of the 2029 Notes, with net proceeds of $292.9 million after deducting costs[403]. - The company issued $350.0 million in aggregate principal amount of the 2027 Notes, with net proceeds of $344.8 million after deducting costs[401]. - The company has a revolving credit facility under the OSI2 Citibank Facility, allowing up to $400 million in borrowings, maturing on January 26, 2027[397]. - The company recorded interest expense of $12.1 million related to the OSI2 Citibank Facility for the six months ended March 31, 2024[399]. Cash Flow and Distributions - Cash distributions paid to stockholders during the six months ended March 31, 2024, totaled $89.8 million[372]. - The company declared a quarterly distribution of $0.55 per share for the period ending March 31, 2024, amounting to $42.8 million[387]. - The company declared a quarterly distribution of $0.55 per share on April 26, 2024, payable in cash on June 28, 2024[417]. - The company has $236.2 million in unfunded commitments as of March 31, 2024, with $209.1 million allocated for debt and equity financing to portfolio companies[376]. Market Conditions and Risks - The company is closely monitoring macroeconomic factors such as inflation and elevated interest rates, which have increased market volatility and impacted certain sectors[321]. - The company acknowledges the inherent uncertainties in valuing private securities and the potential for significant fluctuations in fair value estimates[333]. - The company regularly assesses interest rate risk and manages exposure by comparing interest-sensitive assets to liabilities[424]. Management and Governance - The company is externally managed by Oaktree, which provides investment advisory and administrative services under a formal agreement[315]. - The company has qualified as a Business Development Company and a Regulated Investment Company, allowing it to provide customized credit solutions[314]. - Oaktree waived additional base management fees totaling $1.5 million for each of the three months ended March 31, 2024, and June 30, 2024[418].

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 ...