Business
Oaktree Specialty Lending Corporation Issues Stockholder Letter
LOS ANGELES, CA, March 27, 2020 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending,” “OCSL” or “we”), a
About this update from Oaktree Specialty Lending Corporation
[{"type":"text","content":"LOS ANGELES, CA, March 27, 2020 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending,” “OCSL” or “we”), a specialty finance company, today issued a letter to its stockholders providing a business update amid the COVID-19 pandemic.\n Dear Stockholder, We hope this letter finds you safe and in good health. We understand that these are challenging and unprecedented times, and we wish to extend our sincere thoughts to those impacted by the COVID-19 virus. We want to assure you that Oaktree Capital Management, L.P. (“Oaktree”), OCSL’s investment adviser, has taken several measures to keep its employees safe and business functions operational. Oaktree has implemented its business continuity plans and has successfully transitioned into a virtual company with nearly all its employees working remotely around the world. As a result, Oaktree believes it remains well-positioned to safely and effectively manage OCSL and its other managed funds and accounts. Investment Portfolio Positioning Since Oaktree became investment adviser to OCSL in late 2017, its focus has been to defensively position the portfolio by maintaining diversity across issuers and borrowers, focusing on senior secured opportunities and lending to larger, more diversified businesses. To that end, as of December 31, 2019, our $1.5 billion portfolio was comprised of investments in 106 portfolio companies, and our average debt portfolio investment size was $15 million. Approximately 80% of our portfolio was invested in senior secured loans, of which 57% were in a first lien position. First liens have increased to this level from 50% since Oaktree assumed management of OCSL in October 2017. Additionally, the median portfolio company EBITDA has grown steadily over this period, increasing threefold to $156 million as of December 31, 2019, underscoring our focus on larger businesses that Oaktree believes will be more resilient in a market downturn. Regarding industry exposures, we have been lending to businesses that, in our opinion, operate in more defensive, less cyclical or structurally growing industries. As of December 31, 2019, our largest industry concentrations were in areas such as software, information technology services, healthcare providers and services and biotechnology, and we believe our exposure to energy, travel, le...