Oaktree Specialty Lending Corporation · NASDAQ:OCSL
Oaktree Specialty Lending — Q4 2024 Earnings Presentation
20 slides from Oaktree Specialty Lending's earnings presentation, Nov 19, 2024
Slide 1: Earnings Presentation Fourth Quarter 2024
Earnings Presentation NASDAQ: OCSL Fourth Quarter 2024
Slide 2: Forward Looking Statements & Legal Disclosures
Forward Looking Statements & Legal Disclosures 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
Slide 3: Highlights for the Quarter Ended September 30, 2024
Highlights for the Quarter Ended September 30, 2024 Adjusted Net • $0.55 per share, consistent with the $0.55 per share for the quarter ended June 30, 2024 Investment Income1 • GAAP net investment income was $0.55 per share, as compared with $0.54 in the quarter ended June 30, 2024 Net Asset Value P
Slide 4: Permanent Base Management Fee Reduction
Permanent Base Management Fee Reduction Management Fee Reduction • Permanently reduced the base management fee, effective as of July 1, 2024, to an annual rate of 1.00% of total gross assets 1 • Waived additional base management fees such that the total amount of waived base management fees (includi
Slide 5: Portfolio Summary
Portfolio Summary Portfolio Characteristics Portfolio Composition (At fair value) (As % of total portfolio at fair value; $ in millions) 4% 6% 5% First Lien – $2,468 $3.0bn 144 4% Second Lien – $106 Total Investments Portfolio Companies Unsecured Debt – $109 Equity – $152 82% Joint Ventures – $184 1
Slide 6: Spotlight on OCSL's Software Exposure
Spotlight on OCSL’s Software Exposure Software Exposure End Market Diversity (As % of total portfolio at fair value) Application Software Systems Software 13.2% Transaction & Payment Processing Services 22.2% 4.6% IT Consulting & Other Services 5.1% Alternative Carriers Software Software: 18.6% 5.8%
Slide 7: Investment Activity
Investment Activity New Investment Highlights Historical Funded Originations and Exits ($ in millions) ($ in millions) $400 $368 $377 $323 $338 $293 $300 $214 $233 9 $200 $185 Total New new borrowers $100 Commitments $259 $0 12/31/23 3/31/24 6/30/24 9/30/24 Existing 1 2 Borrowers New Funded Investme
Slide 8: Investment Activity (continued)
Investment Activity (continued) New Investment Commitment Detail ($ in millions) Security Type Market Investment Unsecured Private Primary Secondary Avg. Secondary Fiscal Quarter Number of Deals First Lien Second Lien Commitments & Other Placement (Public) (Public) Purchase Price 4Q2020 $148 10 $123
Slide 9: Financial Highlights
Financial Highlights As of ($ and number of shares in thousands, except per share amounts) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 GAAP Net Investment Income per Share $0.55 $0.54 $0.52 $0.57 $0.62 Adjusted Net Investment Income per Share1 $0.55 $0.55 $0.56 $0.57 $0.62 Net Realized and Un
Slide 10: Portfolio Highlights
Portfolio Highlights As of ($ in thousands, at fair value) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Investments at Fair Value $3,021,279 $3,121,703 $3,047,445 $3,018,552 $2,892,420 Number of Portfolio Companies 144 158 151 146 143 Average Portfolio Company Debt Investment Size $22,000 $19,
Slide 11: Investment Activity
Investment Activity As of ($ in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 New Investment Commitments $259,000 $338,700 $395,600 $370,300 $87,500 New Funded Investment Activity2 $232,700 $293,200 $377,400 $367,600 $117,100 Proceeds from Prepayments, Exits, Other Paydowns and Sales
Slide 12: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $21.00 Adjusted NII Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes $0.55 -$0.10 $20.00 $19.00 $0.00 -$0.14 $0.04 $0.00 $0.55 -$0.55 $18.00 $17.00 $16.00 $18.19 $18.09 $15.00 $14.00 6/30/24 NAV GAAP Net Interest Income Net Unrealized Net Realized Ne
Slide 13: Capital Structure Overview
Capital Structure Overview Funding Sources 0.90x to 1.25x Facility 9/30/24 ($ in millions) Size Outstanding Interest Rate Maturity Target Leverage Ratio Secured Credit Facilities Syndicated Facility $1,218 $430 SOFR + 2.00% Jun-28 Citibank Facility $400 $280 SOFR + 2.35% Jan-29 Secured Debt Subtotal
Slide 14: Funding and Liquidity Metrics
Funding and Liquidity Metrics Leverage Utilization Liquidity Overview ($ in millions) ($ in millions) 12/31/23 3/31/24 6/30/24 9/30/24 $3,000 Credit Facilities Committed $1,618 $1,618 $1,618 $1,618 $2,568 $2,568 $2,568 $2,568 $2,500 Credit Facilities Drawn -$710 -$730 -$790 -$710 $828 Cash and Equiv
Slide 15: Strategic Joint Ventures are Accretive to Earnings
Strategic Joint Ventures are Accretive to Earnings OCSL’s JVs are income-enhancing vehicles that primarily invest in senior secured loans of middle market companies and other corporate debt securities Key Attributes: • Equity ownership: 87.5% OCSL and 12.5% joint venture partner • Shared voting cont
Slide 16: Appendix
AKTREE G a | Specialty Lending Corporation Appendix
Slide 17: Quarterly Statement of Operations
Quarterly Statement of Operations For the three months ended ($ in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Investment income Interest income $83,626 $85,953 $85,256 $91,414 $94,732 PIK interest income $6,018 $6,149 $4,816 $3,849 $5,544 Fee income $3,897 $1,460 $2,546 $1,307 $57
Slide 18: Quarterly Statement of Operations (continued)
Quarterly Statement of Operations (continued) For the three months ended ($ in thousands, except per share amounts) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) $43,179 $26,199 -$25,252 -$25,025 $13,745 Net r
Slide 19: Non-GAAP Disclosures
Non-GAAP Disclosures The OCSI Merger and the OSI2 Merger (the “Mergers”) were accounted for as asset acquisitions in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues ("ASC 805"). The consideration paid to each of the stockhold
Slide 20: oaktreespecialtylending.com
oaktreespecialtylending.com
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