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, showing a slight increase in total investment income but a decline in net asset value due to unrealized losses on certain investments [1][2][5]. 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, primarily due to higher interest income from portfolio growth [2]. - Adjusted total investment income was $95.6 million ($1.17 per share), down from $97.3 million ($1.22 per share) in the prior quarter, mainly 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, driven by 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 prior quarter [4][15]. 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][13]. - The company originated $338.7 million in new investment commitments and received $185.5 million from repayments and sales during the quarter [6][9]. - 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]. Liquidity Position - As of June 30, 2024, liquidity included $96.3 million in unrestricted cash 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][28]. 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]. Portfolio Composition - The investment portfolio at fair value was $3.1 billion, consisting of investments in 158 companies, with 94.9% in debt investments [19][20]. - The weighted average yield on new debt investments was 11.1% [6]. - Non-accrual investments increased to eight, representing 5.7% of the debt portfolio at cost [21].