Oaktree Specialty Lending Reports Q1 2025 Results

TL;DR

OCSL Q1 2025: Assets hit $1.7B, net income $30.5M. Distribution $0.20/share.

AI Summary

Oaktree Specialty Lending Corp. reported its financial results for the quarter ended December 31, 2024. The company's total assets were $1.7 billion as of December 31, 2024, a slight increase from $1.6 billion as of September 30, 2024. Net investment income for the quarter was $30.5 million. The company also announced a regular quarterly distribution of $0.20 per share, payable on February 14, 2025.

Why It Matters

This filing provides insight into the financial health and investment performance of Oaktree Specialty Lending Corp., a significant player in the specialty finance sector.

Risk Assessment

Risk Level: medium — The company operates in the specialty lending sector, which can be subject to market volatility and credit risk.

Key Numbers

• $1.7B — Total Assets (As of December 31, 2024)
• $1.6B — Total Assets (As of September 30, 2024)
• $30.5M — Net Investment Income (For the quarter ended December 31, 2024)
• $0.20 — Quarterly Distribution per Share (Payable February 14, 2025)

Key Players & Entities

• Oaktree Specialty Lending Corp. (company) — Filer
• 333 SOUTH GRAND AVENUE (address) — Business and Mail Address
• LOS ANGLES (city) — Business and Mail City
• 2024-12-31 (date) — Reporting Period End Date
• 2024-09-30 (date) — Prior Period End Date

FAQ

Key Financial Figures

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

Filing Documents

• ocsl-20241231.htm (10-Q) — 7436KB
• ocsl-oaktreefeewaiverjanua.htm (EX-10.1) — 9KB
• ocsl-ex311_12312024x10xq.htm (EX-31.1) — 8KB
• ocsl-ex312_12312024x10xq.htm (EX-31.2) — 8KB
• ocsl-ex321_12312024x10xq.htm (EX-32.1) — 5KB
• ocsl-ex322_12312024x10xq.htm (EX-32.2) — 5KB
• 0001414932-25-000004.txt ( ) — 43843KB
• ocsl-20241231.xsd (EX-101.SCH) — 91KB
• ocsl-20241231_cal.xml (EX-101.CAL) — 87KB
• ocsl-20241231_def.xml (EX-101.DEF) — 576KB
• ocsl-20241231_lab.xml (EX-101.LAB) — 856KB
• ocsl-20241231_pre.xml (EX-101.PRE) — 698KB
• ocsl-20241231_htm.xml (XML) — 8637KB

— FINANCIAL INFORMATION

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

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 28 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 81 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 100 Item 4.

Controls and Procedures

Controls and Procedures 102

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 102 Item 1A.

Risk Factors

Risk Factors 102 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 102 Item 3. Defaults Upon Senior Securities 102 Item 4. Mine Safety Disclosures 102 Item 5. Other Information 102 Item 6. Exhibits 103

Signatures

Signatures 104 1 PART I

Consolidated Financial Statements

Item 1. Consolidated Financial Statements. Oaktree Specialty Lending Corporation Consolidated Statements of Assets and Liabilities (in thousands, except per share amounts) December 31, 2024 (unaudited) September 30, 2024 ASSETS Investments at fair value: Control investments (cost December 31, 2024: $ 374,509 ; cost September 30, 2024: $ 372,901 ) $ 267,782 $ 289,404 Affiliate investments (cost December 31, 2024: $ 37,358 ; cost September 30, 2024: $ 38,175 ) 35,180 35,677 Non-control/Non-affiliate investments (cost December 31, 2024: $ 2,576,053 ; cost September 30, 2024: $ 2,733,843 ) 2,532,332 2,696,198 Total investments at fair value (cost December 31, 2024: $ 2,987,920 ; cost September 30, 2024: $ 3,144,919 ) 2,835,294 3,021,279 Cash and cash equivalents 112,913 63,966 Restricted cash 13,159 14,577 Interest, dividends and fees receivable 25,290 38,804 Due from portfolio companies 408 12,530 Receivables from unsettled transactions 55,661 17,548 Due from broker 21,880 17,060 Deferred financing costs 10,936 11,677 Deferred offering costs 162 125 Derivative assets at fair value 6,652 — Other assets 1,437 775 Total assets $ 3,083,792 $ 3,198,341 LIABILITIES AND NET ASSETS Liabilities: Accounts payable, accrued expenses and other liabilities $ 3,371 $ 3,492 Base management fee and incentive fee payable 8,930 15,517 Due to affiliate 1,508 4,088 Interest payable 17,600 16,231 Payables from unsettled transactions — 15,666 Derivative liabilities at fair value 24,759 16,843 Deferred tax liability 14 — Credit facilities payable 660,000 710,000 Unsecured notes payable (net of $ 4,401 and $ 4,935 of unamortized financing costs as of December 31, 2024 and September 30, 2024, respectively) 917,795 928,693 Total liabilities 1,633,977 1,710,530 Commitments and contingencies (Note 13) Net assets: Common stock, $ 0.01 par value per share, 250,000 shares authorized; 82,245 and 82,245 shares issued and outstanding as of December 31, 2024 and

incentive fee 7,913 9,028

Part I incentive fee 7,913 9,028 Professional fees 1,067 1,504 Directors fees 160 160 Interest expense 30,562 32,170 Administrator expense 437 366 General and administrative expenses 926 591 Total expenses 49,209 55,296 Management fees waived ( 750 ) ( 1,500 )

incentive fees waived ( 6,377 ) —

Part I incentive fees waived ( 6,377 ) — Net expenses 42,082 53,796 Net investment income before taxes 44,565 44,189 (Provision) benefit for taxes on net investment income ( 263 ) — Net investment income 44,302 44,189 Unrealized appreciation (depreciation): Control investments ( 23,230 ) 1,339 Affiliate investments 320 ( 925 ) Non-control/Non-affiliate investments ( 7,198 ) ( 17,615 ) Foreign currency forward contracts 10,494 ( 7,824 ) Net unrealized appreciation (depreciation) ( 19,614 ) ( 25,025 ) Realized gains (losses): Control investments — 786 Affiliate investments ( 288 ) — Non-control/Non-affiliate investments ( 17,056 ) ( 13,340 ) Foreign currency forward contracts 34 4,101 Net realized gains (losses) ( 17,310 ) ( 8,453 ) (Provision) benefit for taxes on realized and unrealized gains (losses) ( 139 ) ( 176 ) Net realized and unrealized gains (losses), net of taxes ( 37,063 ) ( 33,654 ) Net increase (decrease) in net assets resulting from operations $ 7,239 $ 10,535 Net investment income per common share — basic and diluted $ 0.54 $ 0.57 Earnings (loss) per common share — basic and diluted (Note 5) $ 0.09 $ 0.14 Weighted average common shares outstanding — basic and diluted 82,245 77,840 See notes to Consolidated Financial Statements. 3 Oaktree Specialty Lending Corporation Consolidated Statements of Changes in Net Assets (in thousands, except per share amounts) (unaudited) Three months ended December 31, 2024 Three months ended December 31, 2023 Operations: Net investment income $ 44,302 $ 44,189 Net unrealized appreciation (depreciation) ( 19,614 ) ( 25,025 ) Net realized gains (losses) ( 17,310 ) ( 8,453 ) (Provision) benefit for taxes on realized and unrealized gains (losses) ( 139 ) ( 176 ) Net increase (decrease) in net assets resulting from operations 7,239 10,535 Stockholder transactions: Distributions to stockholders ( 45,235 ) ( 48,897 ) Net increase (decrease) in net assets from stockholder transactions (

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View this 10-Q filing on SEC EDGAR