Oaktree Specialty Lending Corporation · NASDAQ:OCSL
Oaktree Specialty Lending — Q3 2023 Earnings Presentation
20 slides from Oaktree Specialty Lending's earnings presentation, Aug 3, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
third quarter 2023 earnings presentation august 3, 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 June 30, 2023
Highlights for the Quarter Ended June 30, 2023 adjusted net • $0.62 per share, consistent with the quarter ended March 31, 2023 investment income1 • GAAP net investment income was $0.63 per share, consistent with the quarter ended March 31, 2023 • $19.58 as compared with $19.66 as of March 31, 2023
Slide 4: Portfolio Summary
Portfolio Summary portfolio characteristics portfolio composition (At fair value) (As % of total portfolio at fair value; $ in millions) 4% 2% First Lien – $2,400 $3.1bn 156 6% Second Lien – $378 12% total investments portfolio companies Unsecured – $52 Equity – $119 76% Joint Ventures – $190 12.3%
Slide 5: Portfolio Diversity
Portfolio Diversity diversity by investment size portfolio by industry1 (As % of total portfolio at fair value) (As % of total portfolio at fair value) Industry % of Portfolio Joint Ventures 6% Software 18.1% Top 10 Investments Specialty Retail 5.2 20% Real Estate Management & Development 4.4 Financ
Slide 6: Investment Activity
Investment Activity new investment highlights historical funded originations and exits ($ in millions) $300 $274 $261 $243 250 $251mm $243mm 200 150 $130 $130 $146 $162 new investment new investment $104 $104 100 $85 commitments fundings1 50 0 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 New Funded Inve
Slide 7: Investment Activity (continued)
Investment Activity (continued) new investment commitment detail ($ 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 $210
Slide 8: Financial Highlights
Financial Highlights As of ($ and number of shares in thousands, except per share amounts) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 GAAP Net Investment Income per Share $0.63 $0.63 $0.63 $0.59 $0.66 Adjusted Net Investment Income per Share1 $0.62 $0.62 $0.61 $0.55 $0.51 Net Realized and Un
Slide 9: Portfolio Highlights
Portfolio Highlights As of ($ in thousands, at fair value) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Investments at Fair Value $3,135,619 $3,164,860 $2,642,870 $2,494,111 $2,565,389 Number of Portfolio Companies 156 165 156 149 151 Average Portfolio Company Debt Investment Size $19,800 $18,
Slide 10: Investment Activity
Investment Activity As of ($ in thousands) 6/30/2023 3/31/20231 12/31/2022 9/30/2022 6/30/2022 New Investment Commitments $251,000 $123,800 $250,300 $97,000 $131,900 New Funded Investment Activity2 $243,300 $103,600 $274,400 $84,500 $130,000 Proceeds from Prepayments, Exits, Other Paydowns and Sales
Slide 11: 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 ($0.14) ($0.01) ($0.06) ($0.10) $0.01 20.00 $0.63 ($0.55) 19.00 18.00 17.00 $19.66 $19.58 16.00 15.00 14.00 3/31/23 NAV GAAP Net Investment Interest Income Net Unrealized Net
Slide 12: Capital Structure Overview
Capital Structure Overview funding sources ($ in millions) 0.90x to 1.25x Committed Principal Outstanding Interest Rate Maturity target leverage ratio Syndicated Credit Facility $1,218 $800 SOFR + 2.00% 6/23/2028 Citibank Facility 400 335 SOFR + 2.00%-2.75%1 1/26/2027 2025 Notes 300 300 3.500% 2/25/
Slide 13: Funding and Liquidity Metrics
Funding and Liquidity Metrics leverage utilization liquidity overview ($ in millions) ($ in millions) $2,500 $2,268 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $2,100 Credit Facilities Committed $1,200 $1,200 $1,450 $1,618 2,000 $1,850 $1,850 $483 $335 Credit Facilities Drawn (700) (860) (1,115) (1,135
Slide 14: 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 15: 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 $7.69 $8.24 $4.22 $6.09 $6.60 $7.14 $3.83 $3.47 $1.97 $2.25 $3.14 $1.40 $1.68 20.00 $2.82 $0.42 $0.42 0.42 $1.11 $0.26 $0.54 $0.83 $2.54 15.00 $21.66 $21.84 $22.03 $21.78 $
Slide 16: Appendix
Appendix OAKTREE OCSL | Specialty Lending Corporation
Slide 17: Quarterly Statement of Operations
Quarterly Statement of Operations For the three months ended ($ in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 investment income Interest income $95,310 $88,745 $69,978 $61,719 $54,728 PIK interest income 3,967 4,123 6,130 6,011 5,178 Fee income 1,573 2,380 2,021 1,539 2,275 Divide
Slide 18: Quarterly Statement of Operations (continued)
Quarterly Statement of Operations (continued) For the three months ended ($ in thousands, except per share amounts) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) $(1,039) $(18,279) $(22,982) $(17,869) $(86,755
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: Contact Us
contact us: visit us: Investor Relations oaktreespecialtylending.com Michael Mosticchio (212) 284-1900 ocsl-ir@oaktreecapital.com
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