Oaktree Specialty Lending Corporation · NASDAQ:OCSL
Oaktree Specialty Lending — Q4 2023 Earnings Presentation
21 slides from Oaktree Specialty Lending's earnings presentation, Nov 14, 2023
Slide 1: Fourth Quarter 2023 Earnings Presentation
fourth quarter 2023 earnings presentation november 14, 2023 nasdaq: ocsl
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 statement
Slide 3: Highlights for the Quarter Ended September 30, 2023
Highlights for the Quarter Ended September 30, 2023 adjusted net • $0.62 per share, consistent with the quarter ended June 30, 2023 investment income1 • GAAP net investment income was $0.62 per share, as compared with $0.63 in the quarter ended June 30, 2023 net asset value • $19.63, up slightly as
Slide 4: Portfolio Summary
Portfolio Summary portfolio characteristics portfolio composition (At fair value) (As % of total portfolio at fair value; $ in millions) 5% 2% First Lien – $2,208 $2.9bn 143 7% Second Lien – $293 10% total investments portfolio companies Unsecured – $56 Equity – $144 76% Joint Ventures – $192 12.7%
Slide 5: Portfolio Diversity
Portfolio Diversity diversity by investment size portfolio by industry1 (As % of total portfolio at fair value) (As % of total portfolio at fair value) Industry % of Portfolio Joint Ventures 7% Software 16.5% Top 10 Investments Specialty Retail 5.4 21% Real Estate Management & Development 5.2 Financ
Slide 6: Spotlight on OCSL's Software Exposure
Spotlight on OCSL’s Software Exposure software exposure end market diversity (As % of total portfolio at fair value) Application Software 10.8% 14.8% IT Consulting & Other Services 5.2% Systems Software 5.7% Alternative Carriers Software software: 14.1% Specialized Consumer Services 16.5% 6.9% Diver
Slide 7: Investment Activity
Investment Activity new investment highlights historical funded originations and exits ($ in millions) Strong repayment & sale activity in FY 2023 $400 $364 350 $274 $87mm $117mm 300 $243 $261 250 200 $146 $162 new investment new investment 150 $117 $104 $104 commitments fundings1 $85 100 50 0 9/30/
Slide 8: Investment Activity (continued)
Investment Activity (continued) new investment commitment detail ($ in millions) Security Type Market Investment Number of Unsecured & Private Primary Secondary Avg. Secondary Fiscal Quarter Commitments Deals First Lien Second Lien Other Placement (Public) (Public) Purchase Price 2Q2020 $273 39 $210
Slide 9: Financial Highlights
Financial Highlights As of ($ and number of shares in thousands, except per share amounts) 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 GAAP Net Investment Income per Share $0.62 $0.63 $0.63 $0.63 $0.59 Adjusted Net Investment Income per Share1 $0.62 $0.62 $0.62 $0.61 $0.55 Net Realized and Un
Slide 10: Portfolio Highlights
Portfolio Highlights As of ($ in thousands, at fair value) 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Investments at Fair Value $2,892,420 $3,135,619 $3,164,860 $2,642,870 $2,494,111 Number of Portfolio Companies 143 156 165 156 149 Average Portfolio Company Debt Investment Size $19,800 $19,
Slide 11: Investment Activity
Investment Activity As of ($ in thousands) 9/30/2023 6/30/2023 3/31/20231 12/31/2022 9/30/2022 New Investment Commitments $87,500 $251,000 $123,800 $250,300 $97,000 New Funded Investment Activity2 $117,100 $243,300 $103,600 $274,400 $84,500 Proceeds from Prepayments, Exits, Other Paydowns and Sales
Slide 12: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge adjusted net realized and unrealized adjusted nii gains (losses), net of taxes $21.00 $0.62 ($0.02) $0.00 ($0.00) ($0.10) $0.08 $0.00 $0.00 20.00 ($0.55) $0.62 19.00 18.00 17.00 $19.58 $19.63 16.00 15.00 14.00 6/30/23 NAV GAAP Net Investment Interest Income Net Unrea
Slide 13: Capital Structure Overview
Capital Structure Overview funding sources ($ in millions) 0.90x to 1.25x Committed Principal Outstanding Interest Rate Maturity target leverage ratio Syndicated Credit Facility $1,218 $430 SOFR + 2.00% 6/23/2028 Citibank Facility 400 280 SOFR + 2.00%-2.75%1 1/26/2027 2025 Notes 300 300 3.500% 2/25/
Slide 14: Funding and Liquidity Metrics
Funding and Liquidity Metrics leverage utilization liquidity overview ($ in millions) ($ in millions) $3,000 12/31/2022 3/31/2023 6/30/2023 9/30/2023 $2,568 2,500 Credit Facilities Committed $1,200 $1,450 $1,618 $1,618 $2,268 $2,100 Credit Facilities Drawn (860) (1,115) (1,135) (710) $908 2,000 $1,8
Slide 15: Strategic Joint Ventures are Accretive to Earnings
Strategic Joint Ventures are Accretive to Earnings ocsl’s joint ventures are income-enhancing vehicles that primarily invest in senior secured loans of middle market companies and other corporate debt securities Key Attributes of Joint Ventures: • Equity ownership: 87.5% OCSL and 12.5% joint venture
Slide 16: Compelling Performance Under Oaktree Management
Compelling Performance Under Oaktree Management nav and cumulative distributions paid per share1 $30.00 25.00 $5.12 $5.60 $4.65 $8.24 $8.79 $4.22 $6.09 $6.60 $7.14 $7.69 $3.83 $3.47 $1.97 $2.25 $3.14 $1.40 $1.68 20.00 $2.82 $0.42 $0.42 $0.42 $0.42 $1.11 $0.26 $0.54 $0.83 $2.54 15.00 $21.66 $21.84 $2
Slide 17: Appendix
Appendix OAKTREE OCSL | Specialty Lending Corporation
Slide 18: Quarterly Statement of Operations
Quarterly Statement of Operations For the three months ended ($ in thousands) 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 investment income Interest income $94,732 $95,310 $88,745 $69,978 $61,719 PIK interest income 5,544 3,967 4,123 6,130 6,011 Fee income 572 1,573 2,380 2,021 1,539 Dividend
Slide 19: Quarterly Statement of Operations (continued)
Quarterly Statement of Operations (continued) For the three months ended ($ in thousands, except per share amounts) 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) $13,745 $(1,039) $(18,279) $(22,982) $(17,869)
Slide 20: 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 21: Contact Us
contact us: visit us: Investor Relations oaktreespecialtylending.com Michael Mosticchio (212) 284-1900 ocsl-ir@oaktreecapital.com
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