Oaktree Specialty Lending Corporation · NASDAQ:OCSL
Oaktree Specialty Lending — Q3 FY2020 Earnings Presentation
20 slides from Oaktree Specialty Lending's earnings presentation, Aug 10, 2020
Slide 1: Third Quarter Fiscal Year 2020 Earnings Presentation
Third Quarter Fiscal Year 2020 Earnings Presentation August 10, 2020 Nasdaq: OCSL Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements 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 o
Slide 3: Highlights for the Quarter Ended June 30, 2020
Highlights for the Quarter Ended June 30, 2020 Adjusted Net Investment Income1 $0.12 per share for the quarter ended June 30, 2020, flat as compared to $0.12 for the quarter ended March 31, 2020 GAAP net investment income was $0.12 per share for the quarter ended June 30, 2020 Dividend Declared a ca
Slide 4: Portfolio Summary as of June 30, 2020
Portfolio Summary as of June 30, 2020 (As % of total portfolio at fair value; $ in millions) (As % of total portfolio at fair value) Portfolio Composition Top Ten Industries2,3 Portfolio Characteristics Note:Numbers may not sum due to rounding. 1Excludes negative EBITDA borrowers, investments in avi
Slide 5: Portfolio Diversity
Portfolio Diversity OCSL’s portfolio is diverse across borrowers and industries (As % of total portfolio at fair value) Portfolio by Industry1 Diversity by Investment Size Top 10 Investments 23% Next 15 Investments 24% Remaining 93 Investments 45% Kemper JV 7% As of June 30, 2020 Note:Numbers may no
Slide 6: Portfolio Originations
Portfolio Originations New Investment Highlights (As % of new investment commitments; $ in millions) New Investment Composition ($ in millions) Historical Funded Originations and Exits Note:Numbers rounded to the nearest million or percentage point and may not sum as a result. 1 New funded investmen
Slide 7: Originations Detail
Originations Detail ($ in millions) New Investment Commitment Detail by Month Security Type Market Month Investment Commitments Number of Deals First Lien Second Lien Unsecured & Other Private Placement Primary (Public) Secondary (Public) Secondary Purchase Price January $112 6 $105 $6 $ - $87 $22 $
Slide 8: Non-Core Investment Portfolio Detail
9% of Portfolio2 63% of Portfolio2 Note:Numbers may not sum due to rounding. 1Excludes equity positions in non-accrual debt positions and equity in aviation entities. 2Excludes investments in the Kemper JV. Non-Core Investment Portfolio Detail Non-Core Investment Portfolio Characteristics Private Lo
Slide 9: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge Note:Net asset value per share amounts are based on the shares outstanding at each respective quarter end. Net investment income per share, net unrealized appreciation / (depreciation), and net realized gain / (loss) are based on the weighted average number of shares
Slide 10: Financial Highlights
Financial Highlights 1See page 18 for a description of this non-GAAP measure and a reconciliation from net investment income per share to adjusted net investment income per share. 2Net of unamortized financing costs. ($ in thousands, except per share amounts) As of 6/30/2020 3/31/2020 12/31/2019 9/3
Slide 11: Portfolio Highlights
Portfolio Highlights ($ in thousands) As of 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Investments at Fair Value $1,561,153 $1,392,187 $1,467,627 $1,438,042 $1,455,031 Number of Portfolio Companies 119 128 106 104 105 Average Portfolio Company Debt Investment Size $14,600 $11,900 $15,300 $15
Slide 12: Investment Activity
Investment Activity ($ in thousands) As of 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 New Investment Commitments $260,500 $272,900 $134,200 $138,400 $66,800 New Funded Investment Activity1 $198,500 $251,700 $136,200 $128,500 $74,100 Proceeds from Prepayments, Exits, Other Paydowns and Sales
Slide 13: Capital Structure Overview
Capital Structure Overview ($ in millions) (As % of total funding sources) ($ in millions) Funding Sources and Key Highlights Funding Sources by Type Maturity Profile of Liabilities Committed Principal Outstanding Interest Rate Maturity Credit Facility $700 $467 LIBOR+2.00%1 2/25/2024 2025 Notes 300
Slide 14: Funding and Liquidity Metrics
Funding and Liquidity Metrics Leverage Utilization Liquidity Rollforward 1Includes unfunded commitments ineligible to be drawn due to certain limitations in credit agreements. 2As of June 30, 2020, we have analyzed cash and cash equivalents, availability under our credit facility, the ability to rot
Slide 15: Joint Venture Summary
Joint Venture Summary ($ in millions; at fair value) ($ in millions; at fair value) (As % of total portfolio at fair value) OCSL’s Joint Venture with Kemper Corporation Portfolio Summary Joint Venture Structure Debt Portfolio Top Ten Industries1 As of June 30, 2020 1Based on GICS sub-industry classi
Slide 16: Opportunities to Increase Return on Equity
Opportunities to Increase Return on Equity As of June 30, 2020 1For senior secured loans that have a cost basis above 92.5%. 2Subject to borrowing base and other limitations. We believe OCSL is well-positioned to enhance return on equity Rotate into higher-yielding proprietary investments $219 milli
Slide 17: Appendix
OAKTREE OCSL | Specialty Lending Corporation Appendix
Slide 18: Historical Statement of Operations
Historical Statement of Operations ($ in thousands, except per share amounts) For the three months ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Interest income $30,112 $29,898 $28,405 $30,662 $32,910 PIK interest income 2,183 1,946 1,161 1,187 1,198 Fee income 1,827 2,050 1,071 2,550 1,8
Slide 19: Reconciliation of Adjusted Net Investment Income
Reconciliation of Adjusted Net Investment Income ($ in thousands, except per share amounts) As of 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 GAAP net investment income $16,770 $22,841 $7,836 $16,275 $16,608 Part II incentive fee (net of waivers) - (6,608) 6,251 438 685 Adjusted net investmen
Slide 20: Contact: Investor Relations
Contact: Michael Mosticchio, Investor Relations ocsl-ir@oaktreecapital.com
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