Oaktree Specialty Lending Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Oaktree Specialty Lending Corp. (OCSL) has submitted its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial performance and operational data.</b>

AI Summary

Oaktree Specialty Lending Corp (OCSL) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Oaktree Specialty Lending Corp. (OCSL) filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from October 1, 2023, to March 31, 2024, and includes data from the prior fiscal year. Key dates mentioned include the filing date of April 30, 2024, and the period end date of March 31, 2024. The company was formerly known as Fifth Street Finance Corp. before a name change on September 26, 2013. The filing references various US GAAP taxonomies related to investment gains and losses.

Why It Matters

For investors and stakeholders tracking Oaktree Specialty Lending Corp, this filing contains several important signals. This 10-Q filing provides investors with an updated view of OCSL's financial health and investment portfolio performance for the most recent quarter. Understanding the details within this report is crucial for assessing the company's current market position and future prospects in the specialty lending sector.

Risk Assessment

Risk Level: low — Oaktree Specialty Lending Corp shows low risk based on this filing. The risk is low as this is a standard quarterly filing (10-Q) providing routine financial disclosures, not indicating any immediate or significant adverse events.

Analyst Insight

Review the detailed financial statements and investment portfolio changes within the 10-Q to understand OCSL's performance and asset allocation.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Quarterly report)
• 2024-04-30 — Filing Date (10-Q submission)
• 2013-09-26 — Date of Name Change (From Fifth Street Finance Corp.)

Key Players & Entities

• Oaktree Specialty Lending Corp. (company) — Filer name
• OCSL (company) — Ticker symbol
• 2024-03-31 (date) — Reporting period end date
• 2024-04-30 (date) — Filing date
• Fifth Street Finance Corp. (company) — Former company name
• C5 Technology Holdings, LLC (company) — Mentioned entity

FAQ

Industry Context

Oaktree Specialty Lending Corp. operates within the business development company (BDC) sector, providing debt and equity capital to middle-market companies.

Regulatory Implications

As a BDC, OCSL is subject to regulations under the Investment Company Act of 1940 and specific SEC reporting requirements like this 10-Q filing.

What Investors Should Do

1. Analyze the investment portfolio composition and changes from the previous reporting period.
2. Examine any disclosed realized or unrealized gains/losses on investments.
3. Review the company's liquidity and capital resources as detailed in the financial statements.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-30: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive overview of a company's financial performance during the quarter.)

US GAAP

United States Generally Accepted Accounting Principles. (The standard framework of guidelines for financial accounting used in the U.S., referenced in the filing's data.)

Year-Over-Year Comparison

This filing represents the most recent quarterly update for OCSL, providing current financial data subsequent to prior filings.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share OCSL The Nasdaq Stock Market

Filing Documents

• ocsl-20240331.htm (10-Q) — 7677KB
• exhibit101-112_oaktreefeew.htm (EX-10.1) — 8KB
• ocsl-ex311_03312024x10xq.htm (EX-31.1) — 8KB
• ocsl-ex312_03312024x10xq.htm (EX-31.2) — 8KB
• ocsl-ex321_03312024x10xq.htm (EX-32.1) — 5KB
• ocsl-ex322_03312024x10xq.htm (EX-32.2) — 5KB
• 0001414932-24-000008.txt (&nbsp;) — 41847KB
• ocsl-20240331.xsd (EX-101.SCH) — 94KB
• ocsl-20240331_cal.xml (EX-101.CAL) — 88KB
• ocsl-20240331_def.xml (EX-101.DEF) — 565KB
• ocsl-20240331_lab.xml (EX-101.LAB) — 857KB
• ocsl-20240331_pre.xml (EX-101.PRE) — 702KB
• ocsl-20240331_htm.xml (XML) — 9072KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1. Consolidated Financial Statements: Consolidated Statements of Assets and Liabilities as of March 31, 2024 (unaudited) and September 30, 2023 2 Consolidated Statements of Operations (unaudited) for the three and six months ended March 31, 2024 and 2023 3 Consolidated Statements of Changes in Net Assets (unaudited) for the three and six months ended March 31, 2024 and 2023 4 Consolidated Statements of Cash Flows (unaudited) for the six months ended March 31, 2024 and 2023 5 Consolidated Schedule of Investments (unaudited) as of March 31, 2024 6 Consolidated Schedule of Investments as of September 30, 2023 17

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 26 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 80 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 99 Item 4.

Controls and Procedures

Controls and Procedures 101

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 101 Item 1A.

Risk Factors

Risk Factors 101 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 101 Item 3. Defaults Upon Senior Securities 101 Item 4. Mine Safety Disclosures 101 Item 5. Other Information 101 Item 6. Exhibits 101

Consolidated Financial Statements

Item 1. Consolidated Financial Statements. Oaktree Specialty Lending Corporation Consolidated Statements of Assets and Liabilities (in thousands, except per share amounts) March 31, 2024 (unaudited) September 30, 2023 ASSETS Investments at fair value: Control investments (cost March 31, 2024: $ 366,987 ; cost September 30, 2023: $ 345,245 ) $ 313,979 $ 297,091 Affiliate investments (cost March 31, 2024: $ 38,016 ; cost September 30, 2023: $ 24,898 ) 35,635 23,349 Non-control/Non-affiliate investments (cost March 31, 2024: $ 2,838,769 ; cost September 30, 2023: $ 2,673,976 ) 2,697,831 2,571,980 Total investments at fair value (cost March 31, 2024: $ 3,243,772 ; cost September 30, 2023: $ 3,044,119 ) 3,047,445 2,892,420 Cash and cash equivalents 125,031 136,450 Restricted cash 12,461 9,089 Interest, dividends and fees receivable 36,504 44,570 Due from portfolio companies 1,797 6,317 Receivables from unsettled transactions 20,372 55,441 Due from broker 40,630 54,260 Deferred financing costs 11,113 12,541 Deferred offering costs 90 160 Derivative assets at fair value — 4,910 Other assets 2,496 1,681 Total assets $ 3,297,939 $ 3,217,839 LIABILITIES AND NET ASSETS Liabilities: Accounts payable, accrued expenses and other liabilities $ 3,775 $ 2,950 Base management fee and incentive fee payable 18,556 19,547 Due to affiliate 3,773 4,310 Interest payable 16,069 16,007 Payables from unsettled transactions 61,020 11,006 Derivative liability at fair value 35,005 47,519 Deferred tax liability — 5 Credit facilities payable 730,000 710,000 Unsecured notes payable (net of $ 6,001 and $ 7,076 of unamortized financing costs as of March 31, 2024 and September 30, 2023, respectively) 905,642 890,731 Total liabilities 1,773,840 1,702,075 Commitments and contingencies (Note 13) Net assets: Common stock, $ 0.01 par value per share, 250,000 shares authorized; 81,396 and 77,225 shares issued and outstanding as of March 31, 2024 and September 30, 2

incentive fee 8,452 9,007 17,480 16,710

Part I incentive fee 8,452 9,007 17,480 16,710 Professional fees 1,213 2,075 2,717 3,575 Directors fees 160 160 320 320 Interest expense 31,881 27,804 64,051 48,523 Administrator expense 326 315 692 613 General and administrative expenses 526 1,255 1,117 2,001 Total expenses 54,162 52,099 109,458 93,142 Fees waived ( 1,500 ) ( 1,775 ) ( 3,000 ) ( 2,525 ) Net expenses 52,662 50,324 106,458 90,617 Net investment income before taxes 41,367 45,978 85,556 84,864 Excise tax — — — ( 78 ) Net investment income 41,367 45,978 85,556 84,786 Unrealized appreciation (depreciation): Control investments ( 6,193 ) 1,675 ( 4,854 ) ( 1,634 ) Affiliate investments 93 ( 454 ) ( 832 ) ( 451 ) Non-control/Non-affiliate investments ( 21,396 ) ( 21,124 ) ( 39,011 ) ( 29,799 ) Foreign currency forward contracts 2,244 1,624 ( 5,580 ) ( 9,377 ) Net unrealized appreciation (depreciation) ( 25,252 ) ( 18,279 ) ( 50,277 ) ( 41,261 ) Realized gains (losses): Control investments — — 786 — Non-control/Non-affiliate investments ( 5,433 ) ( 2,459 ) ( 18,773 ) ( 10,110 ) Foreign currency forward contracts ( 1,170 ) ( 3,652 ) 2,931 796 Net realized gains (losses) ( 6,603 ) ( 6,111 ) ( 15,056 ) ( 9,314 ) (Provision) benefit for taxes on realized and unrealized gains (losses) ( 175 ) ( 66 ) ( 351 ) 483 Net realized and unrealized gains (losses), net of taxes ( 32,030 ) ( 24,456 ) ( 65,684 ) ( 50,092 ) Net increase (decrease) in net assets resulting from operations $ 9,337 $ 21,522 $ 19,872 $ 34,694 Net investment income per common share — basic and diluted (1) $ 0.52 $ 0.63 $ 1.09 $ 1.26 Earnings (loss) per common share — basic and diluted (Note 5) (1) $ 0.12 $ 0.29 $ 0.25 $ 0.52 Weighted average common shares outstanding — basic and diluted (1) 79,763 73,203 78,797 67,106 __________ (1) As discussed in Note 2, the Company completed a 1-for-3 reverse stock split on January 20, 2023, effective as of the commencement of trading on January 23, 2023. The weighted average common

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View this 10-Q filing on SEC EDGAR