Oaktree Specialty Lending (US:OCSL)2025-02-04 11:03Financial Performance - Total investment income for Q1 2025 was $86.6 million ($1.05 per share), down from $94.7 million ($1.15 per share) in Q4 2024, primarily due to lower interest income and fee income [3]. - GAAP net investment income for Q1 2025 was $44.3 million ($0.54 per share), compared to $44.9 million ($0.55 per share) in Q4 2024, reflecting higher operating expenses [3]. - Adjusted total investment income for Q1 2025 was $87.1 million, down from $95.0 million in Q4 2024, primarily due to a decrease in interest income [8]. - Adjusted net investment income was $44.7 million ($0.54 per share) for Q1 2025, down from $45.2 million ($0.55 per share) in Q4 2024 [11]. - The net investment income per common share for the quarter was $0.54, slightly down from $0.55 in the previous quarter [46]. - The company reported a net increase in net assets resulting from operations of $7,239 thousand for the three months ended December 31, 2024, down from $36,913 thousand in the previous quarter [46]. Investment Activity - The company originated $198.1 million in new investment commitments and received $352.4 million from prepayments and exits during the quarter [3]. - New investment commitments totaled $198.1 million, down from $259.0 million in the prior quarter, with net new investments at $(151.1) million [1]. - The number of portfolio companies decreased to 136 from 144 in the previous quarter, with the average debt size per company remaining stable at $22,000 [1]. - As of December 31, 2024, the fair value of the investment portfolio was $2.8 billion, consisting of investments in 136 companies [16]. Asset and Liability Management - Total debt outstanding was $1,610.0 million as of December 31, 2024, with a total debt to equity ratio of 1.11x [3]. - The company's total debt to equity ratio was 1.11x, slightly down from 1.12x in the previous quarter [27]. - The total principal value of debt outstanding was $1.61 billion, with a funding mix of 41% secured and 59% unsecured borrowings [23]. - The company’s total liabilities decreased to $1,633,977 thousand as of December 31, 2024, from $1,710,530 thousand as of September 30, 2024, a reduction of approximately 4.5% [44]. - As of December 31, 2024, the company had $112.9 million in unrestricted cash and $957.5 million of undrawn capacity on its credit facilities [25]. Distribution and Earnings - A quarterly distribution of $0.40 per share and a supplemental distribution of $0.07 per share were declared, payable on March 31, 2025 [5]. - Adjusted Earnings for the three months ended December 31, 2024, amounted to $7,601,000, or $0.09 per share [36]. - The net increase in net assets resulting from operations for the three months ended December 31, 2024, was $7,239,000, or $0.09 per share [36]. Market and Economic Conditions - Forward-looking statements indicate potential risks including economic changes, geopolitical conflicts, and regulatory conditions [40]. - Total assets decreased to $3,083,792 thousand as of December 31, 2024, from $3,198,341 thousand as of September 30, 2024, representing a decline of approximately 3.6% [44]. - Total investments at fair value decreased to $2,835,294 thousand as of December 31, 2024, down from $3,021,279 thousand as of September 30, 2024, a decrease of about 6.2% [44]. Conference and Regulatory Information - The company will host a conference call on February 4, 2025, to discuss its first fiscal quarter 2025 results [37]. - Oaktree Specialty Lending Corporation is regulated as a business development company under the Investment Company Act of 1940 [39]. - The company aims to provide customized credit solutions to companies with limited access to public capital markets [39].