Oaktree Specialty Lending Corporation Announces Third Fiscal Quarter 2024 Financial Results and Declares Quarterly Distribution of $0.55 Per Share

Core Viewpoint Oaktree Specialty Lending Corporation reported its financial results for the fiscal quarter ended June 30, 2024, highlighting a slight increase in total investment income but a decline in net asset value due to unrealized losses on certain investments. The company continues to focus on portfolio growth and improving investment quality despite facing challenges in some portfolio investments. Financial Highlights - Total investment income for the quarter was $95.0 million ($1.16 per share), up from $94.0 million ($1.18 per share) in the previous quarter, driven by higher interest income and original issue discount accretion [2][3] - Adjusted total investment income was $95.6 million ($1.17 per share), down from $97.3 million ($1.22 per share) in the previous quarter, primarily due to lower interest income and a decrease in amendment fees [2][4] - GAAP net investment income increased to $44.6 million ($0.54 per share) from $41.4 million ($0.52 per share) in the previous quarter, attributed to lower incentive fees and higher total investment income [3] - Adjusted net investment income was $45.2 million ($0.55 per share), slightly up from $44.7 million ($0.56 per share) in the previous quarter [4] Asset and Debt Management - Net asset value (NAV) per share decreased to $18.19 as of June 30, 2024, from $18.72 as of March 31, 2024, reflecting unrealized losses on certain investments [5] - Total debt outstanding was $1,740.0 million, with a total debt to equity ratio of 1.16x and a net debt to equity ratio of 1.10x [6][29] - The company originated $338.7 million in new investment commitments during the quarter and received $185.5 million from repayments and sales [6][9] Liquidity Position - As of June 30, 2024, the company had $96.3 million in unrestricted cash and cash equivalents and $827.5 million in undrawn capacity under credit facilities [7][27] - Unfunded investment commitments totaled $291.4 million, with $264.3 million available for immediate drawdown [7][27] Distribution Information - A quarterly cash distribution of $0.55 per share was declared, payable on September 30, 2024, to stockholders of record on September 16, 2024 [8][10] Investment Strategy and Market Outlook - The CEO emphasized a focus on shifting the investment composition towards first lien loans and improving portfolio quality amid market challenges [9] - The company experienced an increase in non-accrual investments, with eight investments on non-accrual status as of June 30, 2024, representing 5.7% of the debt portfolio at cost [21]