Oaktree Specialty Lending (OCSL) Q2 2025 Earnings Call May 01, 2025 11:00 AM ET Speaker0 Welcome, and thank you for joining Oaktree Specialty Lending Corporation Second Fiscal Quarter twenty twenty five Conference Call. Today's conference call is being recorded. At this time, all participants are in a listen only mode, but will be promoted for a question and answer session following the prepared remarks. Before we begin, I want to remind you that comments on today's call include forward looking statements r ...

Oaktree Specialty Lending (OCSL) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.76%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.54 per share when it actually produced earnings of $0.54, delivering no surprise.Over the last four qu ...

Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to implement Oaktree's future plans with respect to our business; the ability of Oaktree and its affiliates ...

Exhibit 99.1 Oaktree Specialty Lending Corporation Announces Second Fiscal Quarter 2025 Financial Results LOS ANGELES, CA, May 1, 2025 - Oaktree Specialty Lending Corporation (NASDAQ: OCSL) ("Oaktree Specialty Lending" or the "Company"), a specialty finance company, today announced its financial results for the fiscal quarter ended March 31, 2025. Financial Highlights for the Quarter Ended March 31, 2025 1 • Total investment income was $77.6 million ($0.90 per share) for the second fiscal quarter of 2025, a ...

Core Viewpoint - Oaktree Specialty Lending Corporation reported a decline in financial performance for the second fiscal quarter of 2025, primarily due to lower investment income and challenges with certain portfolio investments [3][4][11]. Financial Performance - Total investment income for the second fiscal quarter of 2025 was $77.6 million ($0.90 per share), down from $86.6 million ($1.05 per share) in the first fiscal quarter [4][11]. - Adjusted total investment income was $77.2 million ($0.90 per share) for the second quarter, compared to $87.1 million ($1.06 per share) in the previous quarter [4][11]. - GAAP net investment income decreased to $39.1 million ($0.45 per share) from $44.3 million ($0.54 per share) in the prior quarter [4][11]. - Net asset value (NAV) per share fell to $16.75 as of March 31, 2025, down from $17.63 as of December 31, 2024, reflecting losses on certain investments [4][11]. Investment Activity - The company originated $407.0 million in new investment commitments and received $279.4 million from prepayments and exits during the quarter [4][12]. - The weighted average yield on new debt investments was 9.5% [4][12]. - As of March 31, 2025, the fair value of the investment portfolio was $2.9 billion, consisting of investments in 152 companies [12][16]. Debt and Liquidity - Total debt outstanding was $1,470.0 million, with a total debt to equity ratio of 1.00x and a net debt to equity ratio of 0.93x [4][26]. - Liquidity included $97.8 million in unrestricted cash and over $1.0 billion in undrawn capacity under credit facilities [4][24]. - The company issued $300 million in unsecured notes during the quarter, maturing on February 27, 2030, with an interest rate of 6.340% [4][23]. Distributions - A quarterly cash distribution of $0.40 per share and a supplemental distribution of $0.02 per share were declared, payable on June 30, 2025 [5][6]. Portfolio Composition - As of March 31, 2025, 94.9% of the portfolio at fair value consisted of debt investments, with 80.9% in first lien loans [17][18]. - The number of portfolio companies increased to 152 from 136 as of December 31, 2024 [12][17]. Recent Developments - On April 8, 2025, the company amended its senior secured credit facility, reducing interest rate margins and extending the maturity date [27]. Management Commentary - The CEO emphasized the focus on resolving challenges with certain portfolio investments and diversifying the portfolio to capitalize on market opportunities amid economic uncertainty [3][5].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 1-33901 Oaktree Specialty Lending Corporation (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware (State or jurisdiction of incorporation or organization) ...

Core Viewpoint - Oaktree Specialty Lending Corporation has successfully amended and extended its senior secured revolving credit facility, resulting in a lower interest rate and an extended maturity date, which is expected to positively impact net investment income [1][3]. Group 1: Credit Facility Details - The maturity of the senior secured revolving credit facility has been extended from June 2028 to April 2030 [1]. - The interest rate on the amended facility has been reduced from SOFR plus 2.00% to a range of SOFR plus 1.75% to 1.875%, depending on the debt outstanding, with an additional 0.10% SOFR adjustment [1]. - The current interest rate is SOFR plus 1.875%, plus the 0.10% SOFR adjustment [1]. - The minimum consolidated interest coverage ratio requirement of 2.25x has been removed [1]. Group 2: Facility Features - The amended facility retains an accordion feature, allowing Oaktree Specialty Lending to increase the facility size to a maximum of $1,500 million under certain conditions [2]. Group 3: Company Overview - Oaktree Specialty Lending Corporation is a specialty finance company focused on providing customized credit solutions to companies with limited access to public or syndicated capital markets [3]. - The company aims to generate current income and capital appreciation through flexible financing solutions, including first and second lien loans, unsecured and mezzanine loans, and preferred equity [3]. - Oaktree Specialty Lending is regulated as a business development company under the Investment Company Act of 1940 and is managed by Oaktree Capital Management, L.P. [3].

I rank Oaktree Specialty Lending ( OCSL ) low on my list of preferred BDCs, both because the metrics we will examine below are weak and because I believe there are better options within the sector.Mr. Mavroudis is a professional portfolio manager specializing in institutional and private portfolios. He focuses on risk management, which is accompanied by in-depth financial market analysis (fundamental, macro and technical) to control the risk undertaken by the portfolios. He invests in all financial instrume ...

Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company's investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions including first and second lien loans, unsecured and mezzanine loans, and preferred equity. The Company is regulated as a business de ...

Core Viewpoint - Oaktree Specialty Lending (OCSL) presents an attractive investment opportunity based on its valuation, portfolio strategy, and yield, with shares trading at a significant discount to net asset value [1] Valuation - OCSL shares are currently trading at a large discount to their net asset value, indicating potential undervaluation in the market [1] Portfolio Strategy - The company employs a strategic approach to its portfolio, which contributes to its overall attractiveness as an investment [1] Yield - OCSL offers a compelling yield, making it an appealing option for income-focused investors [1]