0001414932-19-000012.txt : 20190807 0001414932-19-000012.hdr.sgml : 20190807 20190806185011 ACCESSION NUMBER: 0001414932-19-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20190630 FILED AS OF DATE: 20190807 DATE AS OF CHANGE: 20190806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Oaktree Specialty Lending Corp CENTRAL INDEX KEY: 0001414932 IRS NUMBER: 261219283 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 814-00755 FILM NUMBER: 191003469 BUSINESS ADDRESS: STREET 1: 333 SOUTH GRAND AVENUE STREET 2: 28TH FLOOR CITY: LOS ANGLES STATE: CA ZIP: 90071 BUSINESS PHONE: (213) 830-6300 MAIL ADDRESS: STREET 1: 333 SOUTH GRAND AVENUE STREET 2: 28TH FLOOR CITY: LOS ANGLES STATE: CA ZIP: 90071 FORMER COMPANY: FORMER CONFORMED NAME: Fifth Street Finance Corp. DATE OF NAME CHANGE: 20130926 FORMER COMPANY: FORMER CONFORMED NAME: Fifth Street Finance Corp DATE OF NAME CHANGE: 20071012 10-Q 1 ocsl-063019x10xq.htm 10-Q Document
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
 
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2019
OR
 
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
 
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
COMMISSION FILE NUMBER: 1-33901
Oaktree Specialty Lending Corporation

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
DELAWARE
(State or jurisdiction of
incorporation or organization)
 
26-1219283
(I.R.S. Employer
Identification No.)
 
 
 
333 South Grand Avenue, 28th Floor
Los Angeles, CA
(Address of principal executive office)
 
90071
(Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(213) 830-6300


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
 
 
 
 
 
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange
on Which Registered
Common Stock, par value $0.01 per share
5.875% Unsecured Notes due 2024
6.125% Unsecured Notes due 2028
 
OCSL
OSLE
OCSLL
 
The Nasdaq Global Select Market
The New York Stock Exchange
The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   þ     NO   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES   ¨   NO   ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer  ¨
 
Accelerated filer  þ
 
Non-accelerated filer  ¨
 
Smaller reporting company  ¨
 
 
 
 
 
 
 
Emerging growth company  ¨

 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    YES  ¨     NO  þ
The registrant had 140,960,651 shares of common stock outstanding as of August 5, 2019.



OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2019

TABLE OF CONTENTS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 3.
Item 4.
Item 5.



 




 


PART I — FINANCIAL INFORMATION

Item 1.
Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
 
 
June 30, 2019 (unaudited)
 
September 30, 2018
ASSETS
Investments at fair value:
 
 
 
 
Control investments (cost June 30, 2019: $190,181; cost September 30, 2018: $213,470)
 
$
175,052

 
$
196,874

Affiliate investments (cost June 30, 2019: $5,064; cost September 30, 2018: $1,080)
 
5,964

 
2,161

Non-control/Non-affiliate investments (cost June 30, 2019: $1,337,252; cost September 30, 2018: $1,392,383)
 
1,274,015

 
1,292,166

Total investments at fair value (cost June 30, 2019: $1,532,497; cost September 30, 2018: $1,606,933)
 
1,455,031

 
1,491,201

Cash and cash equivalents
 
5,637

 
13,380

Restricted cash
 
—

 
109

Interest, dividends and fees receivable
 
13,156

 
10,272

Due from portfolio companies
 
1,850

 
1,357

Receivables from unsettled transactions
 
4

 
26,760

Deferred financing costs
 
6,759

 
5,209

Derivative assets at fair value
 
—

 
162

Other assets
 
2,579

 
3,008

Total assets
 
$
1,485,016

 
$
1,551,458

LIABILITIES AND NET ASSETS
Liabilities:
 

 
 
Accounts payable, accrued expenses and other liabilities
 
$
1,078

 
$
3,581

Base management fee and incentive fee payable
 
9,987

 
8,223

Due to affiliate
 
3,431

 
3,274

Interest payable
 
2,267

 
3,365

Payable to syndication partners
 
—

 
109

Payables from unsettled transactions
 
—

 
37,236

Derivative liability at fair value
 
206

 
—

Deferred tax liability
 
719

 
422

Credit facility payable
 
369,825

 
241,000

Unsecured notes payable (net of $2,808 and $3,483 of unamortized financing costs as of June 30, 2019 and September 30, 2018, respectively)
 
158,442

 
386,485

Secured borrowings at fair value (proceeds June 30, 2019: $11,502; proceeds September 30, 2018: $12,314)
 
9,011

 
9,728

Total liabilities
 
554,966

 
693,423

Commitments and contingencies (Note 16)
 

 
 
Net assets:
 
 
 
 
Common stock, $0.01 par value per share, 250,000 shares authorized; 140,961 shares issued and outstanding as of June 30, 2019 and September 30, 2018
 
1,409

 
1,409

Additional paid-in-capital
 
1,492,739

 
1,492,739

Accumulated overdistributed earnings
 
(564,098
)
 
(636,113
)
Total net assets (equivalent to $6.60 and $6.09 per common share as of June 30, 2019 and September 30, 2018, respectively) (Note 12)
 
930,050

 
858,035

Total liabilities and net assets
 
$
1,485,016

 
$
1,551,458


See notes to Consolidated Financial Statements.

1

Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 
 
Three months ended
June 30, 2019
 
Three months ended
June 30, 2018
 
Nine months ended
June 30, 2019
 
Nine months ended
June 30, 2018
Interest income:
 
 
 
 
 
 
 
 
Control investments
 
$
2,859

 
$
2,737

 
$
9,050

 
$
9,011

Affiliate investments
 
70

 
161

 
105

 
2,027

Non-control/Non-affiliate investments
 
29,850

 
23,629

 
93,248

 
71,727

Interest on cash and cash equivalents
 
131

 
107

 
605

 
440

Total interest income
 
32,910

 
26,634

 
103,008

 
83,205

PIK interest income:
 
 
 
 
 
 
 
 
Control investments
 
—

 
1,045

 
67

 
3,446

Affiliate investments
 
—

 
52

 
—

 
416

Non-control/Non-affiliate investments
 
1,198

 
360

 
4,243

 
1,408

Total PIK interest income
 
1,198

 
1,457

 
4,310

 
5,270

Fee income:
 
 
 
 
 
 
 
 
Control investments
 
6

 
697

 
19

 
945

Affiliate investments
 
5

 
—

 
14

 
48

Non-control/Non-affiliate investments
 
1,815

 
1,728

 
4,127

 
6,405

Total fee income
 
1,826

 
2,425

 
4,160

 
7,398

Dividend income:
 
 
 
 
 
 
 
 
Control investments
 
735

 
1,331

 
1,711

 
4,629

Total dividend income
 
735

 
1,331

 
1,711

 
4,629

Total investment income
 
36,669

 
31,847

 
113,189

 
100,502

Expenses:
 
 
 
 
 
 
 
 
Base management fee
 
5,548

 
5,909

 
16,847

 
16,885

Part I incentive fee
 
3,787

 
2,733

 
11,328

 
6,810

Part II incentive fee
 
607

 
—

 
10,597

 
—

Professional fees
 
721

 
924

 
2,186

 
4,837

Directors fees
 
143

 
154

 
428

 
507

Interest expense
 
7,592

 
8,291

 
25,466

 
26,405

Administrator expense
 
384

 
466

 
1,553

 
1,351

General and administrative expenses
 
645

 
488

 
1,981

 
2,326

Total expenses
 
19,427

 
18,965

 
70,386

 
59,121

Fees waived
 
634

 
(1,548
)
 
(8,831
)
 
(1,634
)
Net expenses
 
20,061

 
17,417

 
61,555

 
57,487

Net investment income
 
16,608

 
14,430

 
51,634

 
43,015

Unrealized appreciation (depreciation):
 
 
 
 
 
 
 
 
Control investments
 
3,419

 
97,000

 
1,467

 
89,825

Affiliate investments
 
—

 
72

 
(181
)
 
(2,159
)
Non-control/Non-affiliate investments
 
20,744

 
1,810

 
37,068

 
(34,696
)
Secured borrowings
 
—

 
377

 
(95
)
 
2,440

Foreign currency forward contracts
 
(768
)
 
—

 
(367
)
 
—

Net unrealized appreciation (depreciation)
 
23,395

 
99,259

 
37,892

 
55,410

Realized gains (losses):
 
 
 
 
 
 
 
 
Control investments
 
—

 
(91,470
)
 
—

 
(91,470
)
Affiliate investments
 
—

 
—

 
—

 
2,048

Non-control/Non-affiliate investments
 
(21,112
)
 
2,033

 
21,548

 
4,548

Foreign currency forward contracts
 
1,268

 
—

 
1,783

 
—

Net realized gains (losses)
 
(19,844
)
 
(89,437
)
 
23,331

 
(84,874
)
Redemption premium on unsecured notes payable
 
—

 
—

 
—

 
(120
)
Provision for income tax (expense) benefit
 
(173
)
 
—

 
(668
)
 
—

Net realized and unrealized gains (losses), net of taxes
 
3,378

 
9,822

 
60,555

 
(29,584
)
Net increase (decrease) in net assets resulting from operations
 
$
19,986

 
$
24,252

 
$
112,189

 
$
13,431

Net investment income per common share — basic and diluted
 
$
0.12

 
$
0.10

 
$
0.37

 
$
0.31

Earnings (loss) per common share — basic and diluted (Note 5)
 
$
0.14

 
$
0.17

 
$
0.80

 
$
0.10

Weighted average common shares outstanding — basic and diluted
 
140,961

 
140,961

 
140,961

 
140,961


See notes to Consolidated Financial Statements.


2


Oaktree Specialty Lending Corporation
Consolidated Statements of Changes in Net Assets
(in thousands, except per share amounts)
(unaudited)

 
 
Three months ended
June 30, 2019
 
Three months ended
June 30, 2018
 
Nine months ended
June 30, 2019
 
Nine months ended
June 30, 2018
Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
16,608

 
$
14,430

 
$
51,634

 
$
43,015

Net unrealized appreciation (depreciation)
 
23,395

 
99,259

 
37,892

 
55,410

Net realized gains (losses)
 
(19,844
)
 
(89,437
)
 
23,331

 
(84,874
)
Redemption premium on unsecured notes payable
 
—

 
—

 
—

 
(120
)
Provision for income taxes
 
(173
)
 
—

 
(668
)
 
—

Net increase (decrease) in net assets resulting from operations
 
19,986

 
24,252

 
112,189

 
13,431

Stockholder transactions:
 
 
 
 
 
 
 
 
Distributions to stockholders
 
(13,392
)
 
(13,391
)
 
(40,174
)
 
(42,993
)
Net increase (decrease) in net assets from stockholder transactions
 
(13,392
)
 
(13,391
)
 
(40,174
)
 
(42,993
)
Capital share transactions:
 
 
 
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
 
332

 
412

 
1,028

 
1,239

Repurchases of common stock under dividend reinvestment program
 
(332
)
 
(412
)
 
(1,028
)
 
(1,239
)
Net increase (decrease) in net assets from capital share transactions
 
—

 
—

 
—

 
—

Total increase (decrease) in net assets
 
6,594

 
10,861

 
72,015

 
(29,562
)
Net assets at beginning of period
 
923,456

 
827,234

 
858,035

 
867,657

Net assets at end of period
 
$
930,050

 
$
838,095

 
$
930,050

 
$
838,095

Net asset value per common share
 
$
6.60

 
$
5.95

 
$
6.60

 
$
5.95

Common shares outstanding at end of period
 
140,961

 
140,961

 
140,961

 
140,961




See notes to Consolidated Financial Statements.

3
Oaktree Specialty Lending Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)



 
 
Nine months ended
June 30, 2019
 
Nine months ended
June 30, 2018
Operating activities:
 
 
 
 
Net increase (decrease) in net assets resulting from operations
 
$
112,189

 
$
13,431

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
 
 
 
 
Net change in unrealized (appreciation) depreciation
 
(37,892
)
 
(55,410
)
Net realized (gains) losses
 
(23,331
)
 
84,994

PIK interest income
 
(4,310
)
 
(3,977
)
Accretion of original issue discount on investments
 
(15,942
)
 
(4,779
)
Accretion of original issue discount on unsecured notes payable
 
107

 
198

Amortization of deferred financing costs
 
2,008

 
2,745

Deferred taxes
 
297

 
—

Purchases of investments
 
(351,666
)
 
(836,885
)
Proceeds from the sales and repayments of investments
 
467,307

 
834,975

Changes in operating assets and liabilities:
 
 
 
 
(Increase) decrease in interest, dividends and fees receivable
 
(622
)
 
(1,210
)
(Increase) decrease in due from portfolio companies
 
(493
)
 
(10,087
)
(Increase) decrease in receivables from unsettled transactions
 
26,756

 
(22,538
)
(Increase) decrease in other assets
 
429

 
(2,594
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
 
(2,503
)
 
297

Increase (decrease) in base management fee and incentive fee payable
 
1,764

 
344

Increase (decrease) in due to affiliate
 
157

 
2,415

Increase (decrease) in interest payable
 
(1,098
)
 
3,171

Increase (decrease) in payables from unsettled transactions
 
(37,236
)
 
108,212

Increase (decrease) in director fees payable
 
—

 
(184
)
Increase (decrease) in amounts payable to syndication partners
 
(109
)
 
300

Net cash provided by operating activities
 
135,812

 
113,418

Financing activities:
 
 
 
 
Distributions paid in cash
 
(39,146
)
 
(41,754
)
Borrowings under credit facilities
 
241,825

 
309,000

Repayments of borrowings under credit facilities
 
(113,000
)
 
(353,995
)
Repayments of unsecured notes
 
(228,825
)
 
—

Repurchase of unsecured notes
 
—

 
(21,188
)
Repayments of secured borrowings
 
(812
)
 
(866
)
Repurchases of common stock under dividend reinvestment plan
 
(1,028
)
 
(1,239
)
Deferred financing costs paid
 
(2,883
)
 
(6,175
)
Net cash used in financing activities
 
(143,869
)
 
(116,217
)
Effect of exchange rate changes on foreign currency
 
205

 
—

Net increase (decrease) in cash and cash equivalents and restricted cash
 
(7,852
)
 
(2,799
)
Cash and cash equivalents and restricted cash, beginning of period
 
13,489

 
59,913

Cash and cash equivalents and restricted cash, end of period
 
$
5,637

 
$
57,114

Supplemental information:
 
 
 
 
Cash paid for interest
 
$
24,557

 
$
20,291

Non-cash financing activities:
 
 
 
 
Issuance of shares of common stock under dividend reinvestment plan
 
$
1,028

 
$
1,239

 
 
 
 
 
Reconciliation to the Consolidated Statements of Assets and Liabilities
 
June 30, 2019
 
September 30, 2018
Cash and cash equivalents
 
$
5,637

 
$
13,380

Restricted cash
 
—

 
109

Total cash and cash equivalents and restricted cash
 
$
5,637

 
$
13,489


See notes to Consolidated Financial Statements.

4
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2019
(dollar amounts in thousands)
(unaudited)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
Control Investments
 
 
 
 
 
 
 
 
(8)(9)
First Star Speir Aviation Limited
 
Airlines
 
 
 
 
 
 
(10)
First Lien Term Loan, 9.00% cash due 12/15/2020
 
 
$
11,510

 
$
2,349

 
$
11,510

 
(11)(20)
100% equity interest
 
 
 
 
8,500

 
3,747

 
(11)(12)(20)
 
 
 
 
 
10,849

 
15,257

 
 
New IPT, Inc.
 
Oil & gas equipment services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021
7.33
%
 
3,957

 
3,957

 
3,957

 
 (6)(20)(24)
First Lien Revolver, LIBOR+5.00% cash due 3/17/2021
7.33
%
 
1,009

 
1,009

 
1,009

 
 (6)(19)(20)(24)
50.087 Class A Common Units in New IPT Holdings, LLC
 
 
 
 
—

 
2,903

 
(20)
 
 
 
 
 
4,966

 
7,869

 
 
Senior Loan Fund JV I, LLC
 
Multi-sector holdings
 
 
 
 
 
 
(14)(15)
Subordinated Debt, LIBOR+7.00% cash due 12/29/2028
9.49
%
 
96,250

 
96,250

 
96,250

 
(6)(11)(20)
87.5% LLC equity interest
 
 
 
 
49,322

 
31,092

 
(11)(16)(19)
 
 
 
 
 
145,572

 
127,342

 
 
Thruline Marketing, Inc.
 
Advertising
 
 
 
 
 
 
(25)
First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022
9.33
%
 
18,146

 
18,146

 
18,146

 
(6)(20)(24)
First Lien Revolver, LIBOR+7.75% cash due 4/3/2022
 
 
—

 
—

 
—

 
(6)(19)(20)(24)
9,073 Class A Units in FS AVI Holdco, LLC
 
 
 
 
10,648

 
6,438

 
(20)
 
 
 
 
 
28,794

 
24,584

 
 
 Total Control Investments (18.8% of net assets)
 
 
 
 
$
190,181

 
$
175,052

 
 
 
 
 
 
 
 
 
 
 
 
 Affiliate Investments
 
 
 
 
 
 
 
 
(17)
Assembled Brands Capital LLC
 
Specialized finance
 
 
 
 
 
 
 
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/2023
8.33
%
 
$
3,221

 
$
3,220

 
$
3,221

 
(6)(19)(20)
764,376.60 Class A Units
 
 
 
 
764

 
764

 
(20)
583,190.81 Class B Units
 
 
 
 
—

 
—

 
(20)
 
 
 
 
 
3,984

 
3,985

 
 
Caregiver Services, Inc.
 
Healthcare services
 
 
 
 
 
 
 
1,080,399 shares of Series A Preferred Stock, 10%
 
 
 
 
1,080

 
1,979

 
(20)
 
 
 
 
 
1,080

 
1,979

 
 
 Total Affiliate Investments (0.6% of net assets)
 
 
 
 
$
5,064

 
$
5,964

 
 
 
 
 
 
 
 
 
 
 
 
 Non-Control/Non-Affiliate Investments
 
 
 
 
 
 
 
 
(18)
4 Over International, LLC
 
Commercial printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022
8.40
%
 
$
5,830

 
$
5,791

 
$
5,747

 
(6)(20)(24)
First Lien Revolver, PRIME+5.00% cash due 6/7/2021
10.50
%
 
510

 
493

 
478

 
(6)(19)(20)(24)
 
 
 
 
 
6,284

 
6,225

 
 
99 Cents Only Stores LLC
 
General merchandise stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022
7.33
%
 
19,260

 
18,837

 
17,735

 
(6)
 
 
 
 
 
18,837

 
17,735

 
 
Access CIG, LLC
 
Diversified support services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026
10.19
%
 
15,000

 
14,887

 
14,944

 
(6)
 
 
 
 
 
14,887

 
14,944

 
 
Aden & Anais Merger Sub, Inc.
 
Apparel, accessories & luxury goods
 
 
 
 
 
 
 
51,645 Common Units in Aden & Anais Holdings, Inc.
 
 
 
 
5,165

 
—

 
(20)
 
 
 
 
 
5,165

 
—

 
 

5
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2019
(dollar amounts in thousands)
(unaudited)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
AdVenture Interactive, Corp.
 
Advertising
 
 
 
 
 
 
 
9,073 shares of common stock
 
 
 
 
$
13,611

 
$
12,494

 
(20)
 
 
 
 
 
13,611

 
12,494

 
 
AI Ladder (Luxembourg) Subco S.a.r.l.
 
Electrical components & equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025
6.83
%
 
$
21,847

 
21,279

 
21,291

 
(6)(11)
 
 
 
 
 
21,279

 
21,291

 
 
AI Sirona (Luxembourg) Acquisition S.a.r.l.
 
Pharmaceuticals
 
 
 
 
 
 
 
Second Lien Term Loan, EURIBOR+7.25% cash due 7/10/2026
7.25
%
 
€
17,500

 
20,035

 
19,564

 
(6)(11)(24)
 
 
 
 
 
20,035

 
19,564

 
 
Air Medical Group Holdings, Inc.
 
Healthcare services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025
6.65
%
 
$
6,337

 
6,201

 
5,974

 
(6)(24)
 
 
 
 
 
6,201

 
5,974

 
 
AirStrip Technologies, Inc.
 
Application software
 
 
 
 
 
 
 
22,858.71 Series C-1 Preferred Stock Warrants (exercise price $34.99757) expiration date 5/11/2025
 
 
 
 
90

 
—

 
(20)
 
 
 
 
 
90

 
—

 
 
Airxcel, Inc.
 
Household appliances
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 4/28/2025
6.90
%
 
7,920

 
7,854

 
7,481

 
(6)
 
 
 
 
 
7,854

 
7,481

 
 
Algeco Scotsman Global Finance Plc
 
Construction & engineering
 
 
 
 
 
 
 
Fixed Rate Bond, 8.00% cash due 2/15/2023
 
 
23,915

 
23,414

 
24,304

 
(11)
 
 
 
 
 
23,414

 
24,304

 
 
Allen Media, LLC
 
Movies & entertainment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 8/30/2023
8.83
%
 
19,494

 
19,084

 
19,445

 
(6)(20)(24)
 
 
 
 
 
19,084

 
19,445

 
 
Allied Universal Holdco LLC
 
Security & alarm services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 7/28/2022
6.15
%
 
9,777

 
9,818

 
9,773

 
(6)(24)
Second Lien Term Loan, LIBOR+8.50% cash due 7/28/2023
10.90
%
 
1,149

 
1,164

 
1,150

 
(6)(24)
 
 
 
 
 
10,982

 
10,923

 
 
Altice France S.A.
 
Integrated telecommunication services
 
 
 
 
 
 
 
Fixed Rate Bond, 8.13% cash due 1/15/2024
 
 
3,000

 
3,047

 
3,105

 
(11)
Fixed Rate Bond, 7.63% cash due 2/15/2025
 
 
2,000

 
2,013

 
1,928

 
(11)
 
 
 
 
 
5,060

 
5,033

 
 
Alvotech Holdings S.A.
 
Biotechnology
 
 
 
 
 
 
 
Fixed Rate Bond 15% PIK Note due 12/13/2023
 
 
30,000

 
29,440

 
32,550

 
(11)(20)
 
 
 
 
 
29,440

 
32,550

 
 
Ancile Solutions, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021
9.33
%
 
8,801

 
8,701

 
8,651

 
 (6)(20)(24)
 
 
 
 
 
8,701

 
8,651

 
 
Apptio, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025
9.67
%
 
23,764

 
23,320

 
23,315

 
(6)(20)(24)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025
 
 
—

 
(28
)
 
(29
)
 
(6)(19)(20)(24)
 
 
 
 
 
23,292

 
23,286

 
 
Asurion, LLC
 
Property & casualty insurance
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+6.50% cash due 8/4/2025
8.90
%
 
22,000

 
21,952

 
22,355

 
(6)(24)
 
 
 
 
 
21,952

 
22,355

 
 
Avantor Inc.
 
Healthcare distributors
 
 
 
 
 
 
 
Fixed Rate Bond, 9.00% cash due 10/1/2025
 
 
3,000

 
2,974

 
3,353

 
 
 
 
 
 
 
2,974

 
3,353

 
 

6
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2019
(dollar amounts in thousands)
(unaudited)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
Belk Inc.
 
Department stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.75% cash due 12/12/2022
7.29
%
 
$
655

 
$
581

 
$
532

 
(6)(24)
 
 
 
 
 
581

 
532

 
 
Blackhawk Network Holdings, Inc.
 
Data processing & outsourced services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026
9.44
%
 
26,250

 
26,005

 
26,266

 
(6)(24)
 
 
 
 
 
26,005

 
26,266

 
 
Boxer Parent Company Inc.
 
Systems software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025
6.58
%
 
13,950

 
13,831

 
13,235

 
(6)
 
 
 
 
 
13,831

 
13,235

 
 
California Pizza Kitchen, Inc.
 
Restaurants
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 8/23/2022
8.53
%
 
3,130

 
3,105

 
3,068

 
(6)(24)
 
 
 
 
 
3,105

 
3,068

 
 
Cenegenics, LLC
 
Healthcare services
 
 
 
 
 
 
 
First Lien Term Loan, 9.75% cash 2.00% PIK due 9/30/2019
 
 
29,582

 
27,738

 
1,016

 
(20)(21)
First Lien Revolver, 15.00% cash due 9/30/2019
 
 
2,203

 
2,203

 
(212
)
 
(19)(20)(21)
452,914.87 Common Units in Cenegenics, LLC
 
 
 
 
598

 
—

 
(20)
345,380.141 Preferred Units in Cenegenics, LLC
 
 
 
 
300

 
—

 
(20)
 
 
 
 
 
30,839

 
804

 
 
CITGO Holdings, Inc.
 
Oil & gas refining & marketing
 
 
 
 
 
 
 
Fixed Rate Bond, 10.75% cash due 2/15/2020
 
 
21,300

 
21,844

 
22,099

 
 
 
 
 
 
 
21,844

 
22,099

 
 
CITGO Petroleum Corp.
 
Oil & gas refining & marketing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024
7.60
%
 
10,000

 
9,900

 
10,022

 
(6)(24)
 
 
 
 
 
9,900

 
10,022

 
 
Convergeone Holdings, Inc.
 
IT consulting & other services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026
7.40
%
 
19,950

 
19,185

 
19,027

 
(6)
 
 
 
 
 
19,185

 
19,027

 
 
Conviva Inc.
 
Application software
 
 
 
 
 
 
 
417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021
 
 
 
 
105

 
417

 
(20)
 
 
 
 
 
105

 
417

 
 
Covia Holdings Corporation
 
Oil & gas equipment services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 6/1/2025
6.60
%
 
7,920

 
7,920

 
6,438

 
(6)(11)(24)
 
 
 
 
 
7,920

 
6,438

 
 
DigiCert, Inc.
 
Internet services & infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/31/2024
6.40
%
 
4,233

 
4,193

 
4,224

 
(6)(24)
 
 
 
 
 
4,193

 
4,224

 
 
Dominion Diagnostics, LLC
 
Healthcare services
 
 
 
 
 
 
(26)
Subordinated Term Loan, 11.00% cash 1.00% PIK due 10/18/2019
 
 
20,205

 
14,281

 
6,860

 
(20)(21)
First Lien Term Loan, PRIME+4.00% cash due 4/8/2019
9.50
%
 
45,691

 
44,480

 
44,480

 
(6)(20)(24)(26)
First Lien Revolver, PRIME+4.00% cash due 4/8/2019
9.50
%
 
2,090

 
2,090

 
1,979

 
(6)(20)(24)(26)
 
 
 
 
 
60,851

 
53,319

 
 

7
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2019
(dollar amounts in thousands)
(unaudited)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
 
 
 
 
 
 
 
 
 
 
The Dun & Bradstreet Corporation
 
Research & consulting services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 2/6/2026
7.40
%
 
$
10,000

 
$
9,809

 
$
10,016

 
(6)(24)
Fixed Rate Bond 6.875% cash due 8/15/2026
 
 
5,000

 
5,000

 
5,300

 
 
 
 
 
 
 
14,809

 
15,316

 
 
Eagleview Technology Corporation
 
Application software
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/2026
9.90
%
 
12,000

 
11,880

 
11,640

 
(6)(20)(24)
 
 
 
 
 
11,880

 
11,640

 
 
EHR Canada, LLC
 
Food retail
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+8.00% cash due 9/28/2020
10.33
%
 
14,611

 
14,439

 
14,830

 
(6)(20)(24)
 
 
 
 
 
14,439

 
14,830

 
 
EOS Fitness Opco Holdings, LLC
 
Leisure facilities
 
 
 
 
 
 
 
487.5 Class A Preferred Units, 12%
 
 
 
 
488

 
830

 
(20)
12,500 Class B Common Units
 
 
 
 
—

 
749

 
(20)
 
 
 
 
 
488

 
1,579

 
 
Equitrans Midstream Corp.
 
Oil & gas storage & transportation
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 1/31/2024
6.90
%
 
11,940

 
11,614

 
12,040

 
(6)(11)
 
 
 
 
 
11,614

 
12,040

 
 
Eton
 
Research & consulting services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026
9.90
%
 
20,000

 
19,914

 
19,900

 
(6)
 
 
 
 
 
19,914

 
19,900

 
 
ExamSoft Worldwide, Inc.
 
Application software
 
 
 
 
 
 
 
180,707 Class C Units in ExamSoft Investor LLC
 
 
 
 
181

 
—

 
(20)
 
 
 
 
 
181

 
—

 
 
Gentiva Health Services, Inc.
 
Healthcare services
 
 
 
 
 
 
 
Second Lien Term Loan, PRIME+6.00% cash due 7/2/2026
11.50
%
 
14,500

 
14,411

 
14,681

 
(6)
 
 
 
 
 
14,411

 
14,681

 
 
GI Chill Acquisition LLC
 
Managed healthcare
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025
6.32
%
 
17,865

 
17,776

 
17,865

 
(6)(20)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026
9.83
%
 
10,000

 
9,911

 
9,957

 
(6)(20)
 
 
 
 
 
27,687

 
27,822

 
 
GKD Index Partners, LLC
 
Specialized finance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 6/29/2023
9.58
%
 
22,849

 
22,667

 
22,484

 
(6)(20)(24)
First Lien Revolver, LIBOR+7.25% cash due 6/29/2023
 
 
—

 
(9
)
 
(20
)
 
(6)(19)(20)(24)
 
 
 
 
 
22,658

 
22,464

 
 
GoodRx, Inc.
 
Interactive media & services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.50% cash due 10/12/2026
9.90
%
 
22,222

 
21,791

 
22,444

 
(6)(20)
 
 
 
 
 
21,791

 
22,444

 
 
HealthEdge Software, Inc.
 
Application software
 
 
 
 
 
 
 
482,453 Series A-3 Preferred Stock Warrants (exercise price $1.450918) expiration date 9/30/2023
 
 
 
 
213

 
757

 
(20)
 
 
 
 
 
213

 
757

 
 
I Drive Safely, LLC
 
Education services
 
 
 
 
 
 
 
125,079 Class A Common Units of IDS Investments, LLC
 
 
 
 
1,000

 
200

 
(20)
 
 
 
 
 
1,000

 
200

 
 
IBG Borrower LLC
 
Apparel, accessories & luxury goods
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 8/2/2022
9.38
%
 
14,584

 
13,263

 
13,126

 
(6)(20)(24)
 
 
 
 
 
13,263

 
13,126

 
 

8
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2019
(dollar amounts in thousands)
(unaudited)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
iCIMs, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024
8.90
%
 
$
16,718

 
$
16,421

 
$
16,417

 
(6)(20)(24)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024
 
 
—

 
(15
)
 
(16
)
 
(6)(19)(20)(24)
 
 
 
 
 
16,406

 
16,401

 
 
Integral Development Corporation
 
Other diversified financial services
 
 
 
 
 
 
 
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024
 
 
 
 
113

 
—

 
(20)
 
 
 
 
 
113

 
—

 
 
Internet Pipeline, Inc.
 
Internet services & infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.75% cash due 8/4/2022
7.15
%
 
5,468

 
5,421

 
5,434

 
(6)(20)(24)
 
 
 
 
 
5,421

 
5,434

 
 
Kason Corporation
 
Industrial machinery
 
 
 
 
 
 
 
Mezzanine Term Loan, 11.5% cash 1.75% PIK due 10/28/2019
 
 
6,194

 
6,194

 
6,194

 
(20)
498.60 Class A Preferred Units in Kason Investment, LLC, 8%
 
 
 
 
499

 
771

 
(20)
5,540 Class A Common Units in Kason Investment, LLC
 
 
 
 
55

 
53

 
(20)
 
 
 
 
 
6,748

 
7,018

 
 
Kellermeyer Bergensons Services, LLC
 
Environmental & facilities services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+8.50% cash due 4/29/2022
11.08
%
 
6,105

 
5,936

 
6,158

 
(6)(20)(24)
 
 
 
 
 
5,936

 
6,158

 
 
L Squared Capital Partners LLC
 
Multi-sector holdings
 
 
 
 
 
 
 
2.00% limited partnership interest
 
 
 
 
878

 
2,107

 
(11)(16)
 
 
 
 
 
878

 
2,107

 
 
Lanai Holdings III, Inc.
 
Healthcare distributors
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.75% cash due 8/29/2022
7.33
%
 
19,944

 
19,610

 
19,146

 
(6)(24)
 
 
 
 
 
19,610

 
19,146

 
 
Lannett Company, Inc.
 
Pharmaceuticals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 11/25/2020
7.40
%
 
1,687

 
1,689

 
1,671

 
(6)(11)(24)
 
 
 
 
 
1,689

 
1,671

 
 
Lift Brands Holdings, Inc.
 
Leisure facilities
 
 
 
 
 
 
 
2,000,000 Class A Common Units in Snap Investments, LLC
 
 
 
 
1,399

 
3,020

 
(20)
 
 
 
 
 
1,399

 
3,020

 
 
Lightbox Intermediate, L.P.
 
Real estate services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026
7.45
%
 
40,000

 
39,409

 
39,600

 
(6)(20)
 
 
 
 
 
39,409