Oaktree Specialty Lending Corporation · NASDAQ:OCSL

Oaktree Specialty Lending — Q2 2025 Earnings Presentation

19 slides from Oaktree Specialty Lending's earnings presentation, May 1, 2025

  1. Slide 1: Earnings Presentation Second Quarter 2025

    Earnings Presentation NASDAQ: OCSL Second Quarter 2025

  2. 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

  3. Slide 3: Strategic Actions In Support of OCSL

    Strategic Actions In Support of OCSL • On February 3, Oaktree purchased $100 million of newly issued shares of OCSL common stock at a price of $17.63/share equal to net asset value per share on January 31, 2025 • This transaction represented a 10% premium to the closing stock price on January 31, 20

  4. Slide 4: Financial Highlights for the Quarter Ended March 31, 2025

    Financial Highlights for the Quarter Ended March 31, 2025 Adjusted Net • $0.45 per share for both adjusted net investment income and GAAP net investment income, as compared with $0.54 per share for Investment Income1 the quarter ended December 31, 2024 Net Asset Value Per • $16.75 per share, down as

  5. Slide 5: Portfolio Summary

    Portfolio Summary Portfolio Characteristics Portfolio Composition (At fair value) (As % of total portfolio at fair value; $ in millions) 5% 6% 5% First Lien – $2,341 $2.9bn 152 3% Second Lien – $97 Total Investments Portfolio Companies Unsecured Debt – $146 Equity – $133 81% Joint Ventures – $176 10

  6. Slide 6: Portfolio Highlights

    Portfolio Highlights As of ($ in thousands, at fair value) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Investments at Fair Value $2,892,771 $2,835,294 $3,021,279 $3,121,703 $3,047,445 Number of Portfolio Companies 152 136 144 158 151 Average Portfolio Company Debt Investment Size $19,800 $22,

  7. Slide 7: Investment Activity

    Investment Activity New Investment Highlights Historical Funded Originations and Exits ($ in millions) ($ in millions) $500 $406 $400 $338 $352 Total Commitments $293 $279 24 $407 $300 $233 $185 $201 Existing Borrowers $200 $43 new borrowers $100 $0 6/30/24 9/30/24 12/31/24 3/31/25 1 2 New Funded In

  8. Slide 8: Investment Activity (continued)

    Investment Activity (continued) As of ($ in thousands) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 New Investment Commitments $407,000 $198,100 $259,000 $338,700 $395,600 New Funded Investment Activity1 $405,800 $201,300 $232,700 $293,200 $377,400 Proceeds from Prepayments, Exits, Other Paydo

  9. Slide 9: 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 1Q2021 $286 21 $196

  10. Slide 10: Financial Highlights

    Financial Highlights As of ($ and number of shares in thousands, except per share amounts) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 GAAP Net Investment Income per Share $0.45 $0.54 $0.55 $0.54 $0.52 Adjusted Net Investment Income per Share1 $0.45 $0.54 $0.55 $0.55 $0.56 Net Realized and Un

  11. Slide 11: Net Asset Value Per Share Bridge

    Net Asset Value Per Share Bridge $21.00 $20.00 Adjusted NII Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes $0.45 -$0.86 $19.00 $0.00 $18.00 $0.45 -$0.97 $0.11 -$0.00 $17.00 -$0.47 $16.00 $17.63 $16.75 $15.00 $14.00 12/31/24 NAV GAAP Net Interest Income Net Unrealized Net Realized

  12. Slide 12: Capital Structure Overview

    Capital Structure Overview Funding Sources 0.90x to 1.25x Facility 3/31/25 Size Outstanding Interest Rate Maturity Target Leverage Ratio Secured Debt Corporate Revolver $1,160 $430 SOFR + 1.875% Apr-30 Citibank ABL Facility $400 $90 SOFR + 2.35% Jan-29 Secured Debt Subtotal $1,560 $520 Investment Un

  13. Slide 13: Funding and Liquidity Metrics

    Funding and Liquidity Metrics Leverage Utilization Liquidity Overview ($ in millions) ($ in millions) 6/30/24 9/30/24 12/31/24 3/31/25 $3,000 Credit Facilities Committed $1,618 $1,618 $1,618 $1,560 $2,568 $2,568 $2,568 $2,510 Credit Facilities Drawn -$790 -$710 -$660 -$520 $2,500 Cash and Equivalent

  14. Slide 14: 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

  15. Slide 15: Appendix

    AKTREE G a | Specialty Lending Corporation Appendix

  16. Slide 16: Quarterly Statement of Operations

    Quarterly Statement of Operations For the three months ended ($ in thousands) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Investment income Interest income $70,523 $78,422 $83,626 $85,953 $85,256 PIK interest income $4,531 $5,728 $6,018 $6,149 $4,816 Fee income $1,742 $1,679 $3,897 $1,460 $2,

  17. Slide 17: Quarterly Statement of Operations (continued)

    Quarterly Statement of Operations (continued) For the three months ended ($ in thousands, except per share amounts) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) -$82,023 -$19,614 $43,179 $26,199 -$25,252 Net

  18. Slide 18: 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

  19. Slide 19: oaktreespecialtylending.com

    oaktreespecialtylending.com

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