0001414932-22-000007.txt : 20220506 0001414932-22-000007.hdr.sgml : 20220506 20220504181915 ACCESSION NUMBER: 0001414932-22-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20220331 FILED AS OF DATE: 20220505 DATE AS OF CHANGE: 20220504 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: 22893191 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-03312022x10xq.htm 10-Q Document

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
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 ClassTrading Symbol(s)Name of Each Exchange
on Which Registered
Common Stock, par value $0.01 per shareOCSL The Nasdaq Stock Market LLC
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  þ
Accelerated filer  ¨
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 183,374,250 shares of common stock outstanding as of May 3, 2022.



OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2022



TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Consolidated Financial Statements:



 




 

 







 




 
1



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)
March 31, 2022 (unaudited)September 30, 2021
ASSETS
Investments at fair value:
Control investments (cost March 31, 2022: $272,975; cost September 30, 2021: $283,599)$250,580 $270,765 
Affiliate investments (cost March 31, 2022: $21,106; cost September 30, 2021: $18,763)20,244 18,289 
Non-control/Non-affiliate investments (cost March 31, 2022: $2,365,667; cost September 30, 2021: $2,236,759)2,373,951 2,267,575 
Total investments at fair value (cost March 31, 2022: $2,659,748; cost September 30, 2021: $2,539,121)2,644,775 2,556,629 
Cash and cash equivalents39,366 29,334 
Restricted cash2,395 2,301 
Interest, dividends and fees receivable17,335 22,125 
Due from portfolio companies2,338 1,990 
Receivables from unsettled transactions9,893 8,150 
Due from broker25,120 1,640 
Deferred financing costs8,486 9,274 
Deferred offering costs32 34 
Deferred tax asset, net1,668 714 
Derivative assets at fair value2,764 1,912 
Other assets2,510 2,284 
Total assets$2,756,682 $2,636,387 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$2,453 $3,024 
Base management fee and incentive fee payable22,833 32,649 
Due to affiliate3,249 4,357 
Interest payable4,379 4,597 
Director fees payable38 — 
Payables from unsettled transactions6,422 8,086 
Derivative liability at fair value23,272 2,108 
Credit facilities payable745,000 630,000 
Unsecured notes payable (net of $5,761 and $6,501 of unamortized financing costs as of March 31, 2022 and September 30, 2021, respectively)618,660 638,743 
Total liabilities1,426,306 1,323,564 
Commitments and contingencies (Note 13)
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 183,205 and 180,361 shares issued and outstanding as of March 31, 2022 and September 30, 2021, respectively1,832 1,804 
Additional paid-in-capital1,825,257 1,804,354 
Accumulated overdistributed earnings(496,713)(493,335)
Total net assets (equivalent to $7.26 and $7.28 per common share as of March 31, 2022 and September 30, 2021, respectively) (Note 11)1,330,376 1,312,823 
Total liabilities and net assets$2,756,682 $2,636,387 

See notes to Consolidated Financial Statements.
2


Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended March 31, 2022Three months ended March 31, 2021Six months ended
March 31, 2022
Six months ended
March 31, 2021
Interest income:
Control investments$3,334 $2,374 $6,814 $4,717 
Affiliate investments366 143 700 248 
Non-control/Non-affiliate investments53,314 33,133 104,949 62,317 
Interest on cash and cash equivalents
Total interest income57,019 35,655 112,469 67,288 
PIK interest income:
Non-control/Non-affiliate investments4,674 3,801 9,337 6,890 
Total PIK interest income4,674 3,801 9,337 6,890 
Fee income:
Control investments13 18 26 33 
Affiliate investments10 10 
Non-control/Non-affiliate investments1,887 2,255 2,781 5,587 
Total fee income1,905 2,278 2,817 5,630 
Dividend income:
Control investments700 209 4,616 339 
Total dividend income700 209 4,616 339 
Total investment income64,298 41,943 129,239 80,147 
Expenses:
Base management fee10,082 7,074 20,034 13,615 
Part I incentive fee6,704 4,444 13,161 8,593 
Part II incentive fee(3,746)3,609 (1,995)13,149 
Professional fees822 1,017 2,144 1,884 
Directors fees160 157 283 300 
Interest expense9,908 6,568 19,308 12,663 
Administrator expense307 293 697 626 
General and administrative expenses713 775 1,406 1,293 
Total expenses24,950 23,937 55,038 52,123 
Fees waived(750)(108)(1,500)(108)
Net expenses24,200 23,829 53,538 52,015 
Net investment income before taxes40,098 18,114 75,701 28,132 
(Provision) benefit for taxes on net investment income— — (3,308)— 
Net investment income40,098 18,114 72,393 28,132 
Unrealized appreciation (depreciation):
Control investments(8,894)18,411 (9,561)26,746 
Affiliate investments(137)394 (388)104 
Non-control/Non-affiliate investments(19,696)42,803 (22,527)84,740 
Foreign currency forward contracts1,689 3,536 852 1,110 
Net unrealized appreciation (depreciation) (27,038)65,144 (31,624)112,700 
Realized gains (losses):
Control investments— — 1,868 — 
Non-control/Non-affiliate investments991 8,179 5,472 16,917 
Foreign currency forward contracts411 (2,323)3,383 (2,846)
Net realized gains (losses)1,402 5,856 10,723 14,071 
(Provision) benefit for taxes on realized and unrealized gains (losses)(21)(997)2,357 (1,242)
Net realized and unrealized gains (losses), net of taxes(25,657)70,003 (18,544)125,529 
Net increase (decrease) in net assets resulting from operations$14,441 $88,117 $53,849 $153,661 
Net investment income per common share — basic and diluted$0.22 $0.12 $0.40 $0.20 
Earnings (loss) per common share — basic and diluted (Note 5)$0.08 $0.60 $0.30 $1.07 
Weighted average common shares outstanding — basic and diluted181,598 146,652 180,982 143,775 


See notes to Consolidated Financial Statements.
3


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

Three months ended March 31, 2022Three months ended March 31, 2021Six months ended
March 31, 2022
Six months ended
March 31, 2021
Operations:
Net investment income$40,098 $18,114 $72,393 $28,132 
Net unrealized appreciation (depreciation)(27,038)65,144 (31,624)112,700 
Net realized gains (losses)1,402 5,856 10,723 14,071 
(Provision) benefit for taxes on realized and unrealized gains (losses)(21)(997)2,357 (1,242)
Net increase (decrease) in net assets resulting from operations14,441 88,117 53,849 153,661 
Stockholder transactions:
Distributions to stockholders(29,271)(16,915)(57,227)(32,421)
Net increase (decrease) in net assets from stockholder transactions(29,271)(16,915)(57,227)(32,421)
Capital share transactions:
Issuance of common stock in connection with the Mergers— 242,704 — 242,704 
Issuance of common stock under dividend reinvestment plan766 511 1,552 1,039 
Repurchases of common stock under dividend reinvestment plan— (511)— (1,039)
Issuance of common stock in connection with the "at the market" offering19,379 — 19,379 — 
Net increase (decrease) in net assets from capital share transactions20,145 242,704 20,931 242,704 
Total increase (decrease) in net assets5,315 313,906 17,553 363,944 
Net assets at beginning of period1,325,061 964,917 1,312,823 914,879 
Net assets at end of period$1,330,376 $1,278,823 $1,330,376 $1,278,823 
Net asset value per common share$7.26 $7.09 $7.26 $7.09 
Common shares outstanding at end of period183,205 180,361 183,205 180,361 



See notes to Consolidated Financial Statements.
4

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





Six months ended
March 31, 2022
Six months ended
March 31, 2021
Operating activities:
Net increase (decrease) in net assets resulting from operations$53,849 $153,661 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net unrealized (appreciation) depreciation31,624 (112,700)
Net realized (gains) losses(10,723)(14,071)
PIK interest income(9,337)(6,890)
Accretion of original issue discount on investments(16,375)(7,777)
Accretion of original issue discount on unsecured notes payable339 254 
Amortization of deferred financing costs1,863 1,323 
Deferred taxes(954)320 
Purchases of investments (497,579)(541,491)
Proceeds from the sales and repayments of investments416,250 398,748 
Cash acquired in the Mergers— 20,945 
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable2,698 337 
(Increase) decrease in due from portfolio companies(348)67 
(Increase) decrease in receivables from unsettled transactions(1,743)(25,804)
(Increase) decrease in due from broker(23,480)— 
(Increase) decrease in other assets(226)(1,429)
Increase (decrease) in accounts payable, accrued expenses and other liabilities(628)(40)
Increase (decrease) in base management fee and incentive fee payable(9,816)11,427 
Increase (decrease) in due to affiliate(1,108)1,450 
Increase (decrease) in interest payable(218)(74)
Increase (decrease) in payables from unsettled transactions(1,664)8,767 
Increase (decrease) in director fees payable38 (90)
Net cash provided by (used in) operating activities(67,538)(113,067)
Financing activities:
Distributions paid in cash(55,675)(31,382)
Borrowings under credit facilities225,000 175,000 
Repayments of borrowings under credit facilities(110,000)(14,800)
Repayments of secured borrowings— (9,341)
Repurchases of common stock under dividend reinvestment plan— (1,039)
Shares issued under the "at the market" offering 19,596 — 
Deferred financing costs paid(334)(360)
Offering costs paid(158)— 
Net cash provided by (used in) financing activities78,429 118,078 
Effect of exchange rate changes on foreign currency(765)(378)
Net increase (decrease) in cash and cash equivalents and restricted cash10,126 4,633 
Cash and cash equivalents and restricted cash, beginning of period31,635 39,096 
Cash and cash equivalents and restricted cash, end of period$41,761 $43,729 
Supplemental information:
Cash paid for interest$17,324 $11,160 
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan$1,552 $1,039 
Deferred financing costs— (57)
Offering costs 57 — 
Issuance of shares in connection with the Mergers— 242,704 
Reconciliation to the Consolidated Statements of Assets and LiabilitiesMarch 31, 2022September 30, 2021
Cash and cash equivalents$39,366 $29,334 
Restricted cash2,395 2,301 
Total cash and cash equivalents and restricted cash$41,761 $31,635 

See notes to Consolidated Financial Statements.
5

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Control Investments
(8)(9)
C5 Technology Holdings, LLCData Processing & Outsourced Services
829 Common Units$— $— (15)
34,984,460.37 Preferred Units34,984 27,638 (15)
34,984 27,638 
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.01 %$23,201 23,201 23,201 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024— — — (6)(15)(19)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC18,625 11,112 (15)
41,826 34,313 
OCSI Glick JV LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+4.50% cash due 10/20/20284.60 %60,887 50,593 55,649  (6)(11)(15)(19)
87.5% equity interest— —  (11)(16)(19)
50,593 55,649 
Senior Loan Fund JV I, LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/20288.00 %96,250 96,250 96,250 (6)(11)(15)(19)
87.5% LLC equity interest49,322 36,730 (11)(12)(16)(19)
145,572 132,980 
 Total Control Investments (18.8% of net assets)$272,975 $250,580 
Affiliate Investments (17)
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.75% cash due 10/17/20237.76 %$18,242 $18,243 $17,938 (6)(15)(19)
1,609,201 Class A Units764 402 (15)
1,019,168.80 Preferred Units, 6%1,019 1,182 (15)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (15)
20,026 19,522 
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%1,080 722 (15)
1,080 722 
 Total Affiliate Investments (1.5% of net assets)$21,106 $20,244 
Non-Control/Non-Affiliate Investments(18)
109 Montgomery Owner LLCReal Estate Operating Companies
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/20237.50 %$1,707 $1,660 $2,022 (6)(15)(19)
1,660 2,022 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% cash due 12/22/202232,454 32,337 32,325 (11)(15)
32,337 32,325 
Access CIG, LLCDiversified Support Services
First Lien Term Loan, LIBOR+3.75% cash due 2/27/20254.21 %3,334 3,158 3,289 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/20268.21 %17,000 16,932 16,904 (6)
20,090 20,193 
Accupac, Inc.Personal Products
First Lien Term Loan, LIBOR+5.50% cash due 1/17/20266.50 %16,058 15,722 16,058 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 1/17/2026— — — (6)(15)(19)
First Lien Revolver, LIBOR+5.50% cash due 1/17/20266.50 %1,429 1,387 1,429 (6)(15)(19)
17,109 17,487 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.00 %27,349 26,987 27,295 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 10/31/2025— (28)(4)(6)(15)(19)
26,959 27,291 
6

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.26 %$15,067 $14,511 $14,916 (6)(15)
14,511 14,916 
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.5,165 — (15)
5,165  
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %24,838 27,742 27,198 (6)(11)(15)
27,742 27,198 
AIP RD Buyer Corp.Distributors
Second Lien Term Loan, SOFR+7.75% cash due 12/23/20298.75 %$14,414 14,136 14,126 (6)(15)
14,410 Common Units in RD Holding LP1,352 1,365 (15)
15,488 15,491 
AirStrip Technologies, Inc.Application Software
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/202590 — (15)
90  
All Web Leads, Inc.Advertising
First Lien Term Loan, LIBOR+6.50% cash due 12/29/20237.50 %23,382 21,566 22,456 (6)(15)
21,566 22,456 
Altice France S.A.Integrated Telecommunication Services
Fixed Rate Bond, 5.50% cash due 10/15/20291,000 873 899 (11)
873 899 
Alvogen Pharma US, Inc.Pharmaceuticals
First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.26 %13,475 13,099 12,641 (6)
13,099 12,641 
Alvotech Holdings S.A.Biotechnology(13)
Fixed Rate Bond 15% PIK Tranche A due 6/24/202520,967 23,045 23,378 (11)(15)
Fixed Rate Bond 15% PIK Tranche B due 6/24/202520,512 22,581 22,871 (11)(15)
43,889 Common Shares6,323 6,277 (11)(15)
51,949 52,526 
American Auto Auction Group, LLCConsumer Finance
Second Lien Term Loan, SOFR+8.75% cash due 1/2/20299.50 %14,760 14,471 14,539 (6)(15)
14,471 14,539 
American Tire Distributors, Inc.Distributors
First Lien Term Loan, LIBOR+6.25% cash due 10/20/20287.00 %9,945 9,821 9,883 (6)
9,821 9,883 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %15,298 13,894 14,903 (6)(11)(15)
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/20278.75 %12,500 12,188 12,000 (6)(11)(15)
26,082 26,903 
Ankura Consulting Group LLCResearch & Consulting Services
Second Lien Term Loan, LIBOR+8.00% cash due 3/19/20298.75 %5,316 5,236 5,276 (6)(15)
5,236 5,276 
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %34,458 33,578 34,186 (6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/20258.25 %892 856 875 (6)(15)(19)
34,434 35,061 
7

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+7.00% cash due 7/14/20268.00 %1,964 $2,179 $2,208 (6)(11)(15)
First Lien Term Loan, SONIA+7.00% cash due 7/14/20267.75 %£18,636 23,213 24,783 (6)(11)(15)
First Lien Term Loan, LIBOR+5.75% cash due 7/14/20266.50 %$10,519 10,335 10,403 (6)(11)(15)
First Lien Delayed Draw Term Loan, SONIA+5.75% cash due 7/14/2026£— (44)— (6)(11)(15)(19)
35,683 37,394 
ASP Unifrax Holdings, Inc.Trading Companies & Distributors
Fixed Rate Bond, 7.50% cash due 9/30/2029$5,500 5,403 4,902 
5,403 4,902 
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.25 %2,516 2,288 2,074 (6)
2,288 2,074 
Astra Acquisition Corp.Application Software
First Lien Term Loan, LIBOR+5.25% cash due 10/25/20285.75 %9,476 9,192 9,222 (6)
9,192 9,222 
athenahealth Group Inc.Health Care Technology
18,635 Shares of Series A Preferred Stock in Minerva Holdco, Inc., 10.75%18,264 18,477 (15)
18,264 18,477 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202635,121 33,876 34,243 (11)(15)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (274)(527)(11)(15)(19)
164,074.5 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027486 (11)(15)
164,074.5 Common Stock Warrants (exercise price $1.10) expiration date 6/19/2027486 48 (11)(15)
34,574 33,766 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %22,540 22,159 21,255 (6)(11)(15)
22,159 21,255 
The AveryReal Estate Operating Companies
First Lien Term Loan in T8 Urban Condo Owner, LLC, LIBOR+7.30% cash due 2/17/20237.75 %16,407 16,238 16,463 (6)(15)
Subordinated Delayed Draw Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/202313.42 %3,925 3,887 3,931 (6)(15)(19)
20,125 20,394 
BAART Programs, Inc.Health Care Services
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.00 %2,272 2,229 2,218 (6)(15)(19)
Second Lien Term Loan, LIBOR+8.50% cash due 6/11/20289.51 %7,166 7,059 7,059 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 6/11/20289.50 %3,596 3,435 3,430 (6)(15)(19)
12,723 12,707 
Berner Food & Beverage, LLCSoft Drinks
First Lien Term Loan, LIBOR+6.50% cash due 7/30/20277.50 %33,245 32,729 32,477 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 7/30/20267.50 %1,423 1,376 1,362 (6)(15)(19)
34,105 33,839 
8

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Blackhawk Network Holdings, Inc.Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20267.44 %$30,625 $30,228 $30,344 (6)
30,228 30,344 
Blumenthal Temecula, LLCAutomotive Retail
First Lien Term Loan, 9.00% cash due 9/24/20233,979 3,980 3,979 (15)
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC1,293 1,293 (15)
298,460 Preferred Units in Unstoppable Automotive VMV, LLC298 298 (15)
298,460 Common Units in Unstoppable Automotive AMV, LLC298 298 (15)
5,869 5,868 
Cadence Aerospace, LLCAerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash 2.00% PIK due 11/14/20237.50 %14,221 13,024 13,060 (6)(15)
13,024 13,060 
CircusTrix Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+5.50% cash 2.50% PIK due 7/16/20236.50 %10,819 10,141 9,604 (6)(15)
10,141 9,604 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.00 %9,088 9,016 8,995 (6)
Fixed Rate Bond, 9.25% cash due 8/1/202410,672 10,672 10,791 
19,688 19,786 
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %8,290 8,073 8,285 (6)
8,073 8,285 
Clear Channel Outdoor Holdings Inc.Advertising
Fixed Rate Bond, 7.50% cash due 6/1/20296,476 6,476 6,470 (11)
6,476 6,470 
CommScope Technologies LLCCommunications Equipment
Fixed Rate Bond, 5.00% cash due 3/15/20271,000 841 871 (11)
841 871 
Condor Merger Sub Inc.Systems Software
Fixed Rate Bond, 7.375% cash due 2/15/20306,170 6,154 5,927 
6,154 5,927 
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+8.50% cash due 1/28/20259.50 %37,779 35,955 31,734 (6)(15)
Common Stock Warrants expiration date 7/28/2025648 1,782 (15)
36,603 33,516 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.46 %11,975 11,724 11,501 (6)
11,724 11,501 
Conviva Inc.Application Software
517,851 Shares of Series D Preferred Stock605 894 (15)
605 894 
CorEvitas, LLCHealth Care Services
First Lien Term Loan, SOFR+5.75% cash due 12/13/20256.75 %13,782 13,609 13,681 (6)(15)
First Lien Revolver, PRIME+4.50% cash due 12/13/2025— (20)(13)(6)(15)(19)
1,099 Class A2 Common Units in CorEvitas Holdings, L.P.690 2,340 (15)
14,279 16,008 
Coyote Buyer, LLCSpecialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.00 %18,293 17,839 18,132 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025— (13)(12)(6)(15)(19)
17,826 18,120 
9

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Curium Bidco S.à.r.l.Biotechnology
Second Lien Term Loan, LIBOR+7.75% cash due 10/27/20288.76 %$16,787 $16,535 $16,640 (6)(11)
16,535 16,640 
Delta Topco, Inc.Systems Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.00 %6,680 6,647 6,591 (6)
6,647 6,591 
Dialyze Holdings, LLCHealth Care Equipment
First Lien Term Loan, LIBOR+9.00% cash 0.50% PIK due 8/4/202610.01 %24,241 22,757 22,665 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+9.00% cash 0.50% PIK due 8/4/2026— (153)(154)(6)(15)(19)
5,403,823 Class A Warrants (exercise price $1.00) expiration date 8/4/20281,405 1,351 (15)
24,009 23,862 
Digital.AI Software Holdings, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 2/10/20278.00 %9,952 9,613 9,753 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 2/10/20277.50 %359 333 337 (6)(15)(19)
9,946 10,090 
DirecTV Financing, LLCCable & Satellite
First Lien Term Loan, LIBOR+5.00% cash due 8/2/20275.75 %18,145 17,964 18,149 (6)
17,964 18,149 
Eagleview Technology CorporationApplication Software
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/20268.51 %8,974 8,884 8,794 (6)(15)
8,884 8,794 
EOS Fitness Opco Holdings, LLCLeisure Facilities
487.5 Class A Preferred Units, 12%488 467 (15)
12,500 Class B Common Units— — (15)
488 467 
Fairbridge Strategic Capital Funding LLCReal Estate Operating Companies(20)
First Lien Delayed Draw Term Loan, 9.00% cash due 12/24/20287,150 7,150 7,150 (15)(19)
2,500 Warrant Units (exercise price $0.01) expiration date 11/24/2031— (11)(15)
7,150 7,153 
FINThrive Software Intermediate Holdings, Inc.Health Care Technology
Second Lien Term Loan, LIBOR+6.75% cash due 12/17/20297.25 %25,061 24,685 24,760 (6)
24,685 24,760 
Firstlight Holdco, Inc.Alternative Carriers
First Lien Term Loan, LIBOR+3.50% cash due 7/23/20253.96 %4,986 4,718 4,846 (6)
4,718 4,846 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/20259,466 9,003 9,324 (11)(15)
331,200 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030405 113 (11)(15)
9,408 9,437 
Frontier Communications Holdings, LLCIntegrated Telecommunication Services
Fixed Rate Bond, 6.00% cash due 1/15/20302,000 1,858 1,853 (11)
1,858 1,853 
GKD Index Partners, LLCSpecialized Finance
First Lien Term Loan, LIBOR+8.00% cash due 6/29/20239.01 %25,744 25,379 25,255 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 6/29/20239.00 %1,280 1,259 1,248 (6)(15)(19)
26,638 26,503 
10

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Global Medical Response, Inc.Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %$5,601 $5,434 $5,576 (6)
5,434 5,576 
Houghton Mifflin Harcourt Publishers Inc.Education Services
First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.25 %1,007 985 1,004 (6)(11)
985 1,004 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50 %25,635 25,127 25,547 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.50 %1,176 1,152 1,172 (6)(15)
26,279 26,719 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20256.76 %8,613 8,413 8,462 (6)(15)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/20259.01 %22,222 21,689 21,944 (6)(15)
30,102 30,406 
Impel Neuropharma, Inc.Health Care Technology
First Lien Revenue Interest Financing Term Loan due 2/15/203112,161 12,161 12,161 (6)(15)
First Lien Term Loan, SOFR+8.75% cash due 3/17/20279.75 %12,161 11,919 11,917 (6)(15)
24,080 24,078 
Innocoll Pharmaceuticals LimitedHealth Care Technology
First Lien Term Loan, 11.00% cash due 1/26/20276,817 6,522 6,533 (11)(15)
First Lien Delayed Draw Term Loan, 11.00% cash due 1/26/2027— — — (11)(15)(19)
56,999 Tranche A Warrant Shares (exercise price $4.23) expiration date 1/26/2029135 141 (11)(15)
6,657 6,674 
Integral Development CorporationOther Diversified Financial Services
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024113 — (15)
113  
Inventus Power, Inc.Electrical Components & Equipment
First Lien Term Loan, SOFR+5.00% cash due 3/29/20246.00 %18,755 18,630 18,239 (6)(15)
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/20249.50 %13,674 13,474 13,195 (6)(15)
32,104 31,434 
INW Manufacturing, LLCPersonal Products
First Lien Term Loan, LIBOR+5.75% cash due 5/7/20276.76 %36,563 35,625 35,831 (6)(15)
35,625 35,831 
IPC Corp.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 10/1/20267.50 %34,185 33,351 33,245 (6)(15)
33,351 33,245 
Itafos Inc.Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+8.25% cash due 8/25/20249.25 %17,861 17,289 17,218 (6)(15)
17,289 17,218 
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20287.77 %10,247 10,196 10,145 (6)
10,196 10,145 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20278.50 %36,419 35,231 36,622 (6)(15)
35,231 36,622 
Kings Buyer, LLCEnvironmental & Facilities Services
First Lien Term Loan, LIBOR+6.50% cash due 10/29/20277.50 %13,692 13,555 13,487 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 10/29/20277.50 %659 640 631 (6)(15)(19)
14,195 14,118 
LaserShip, Inc.Air Freight & Logistics
Second Lien Term Loan, LIBOR+7.50% cash due 5/7/20298.25 %4,787 4,739 4,775 (6)(15)
4,739 4,775 
11

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Latam Airlines Group S.A.Airlines
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/2022$17,918 $17,912 $17,918 (6)(11)(15)(19)
First Lien Delayed Draw Term Loan, LIBOR+7.50% PIK due 3/29/20227,912 7,908 7,912 (6)(11)(15)(19)
25,820 25,830 
Lift Brands Holdings, Inc.Leisure Facilities
2,000,000 Class A Common Units in Snap Investments, LLC1,399 — (15)
1,399  
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20266.01 %41,220 40,344 40,602 (6)(15)
40,344 40,602 
Liquid Environmental Solutions CorporationEnvironmental & Facilities Services
Second Lien Term Loan, LIBOR+8.50% cash due 11/30/20269.50 %4,357 4,276 4,259 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 11/30/20269.50 %1,162 1,139 1,083 (6)(15)(19)
5,415 5,342 
LSL Holdco, LLCHealth Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 1/31/20286.75 %19,236 18,862 18,852 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/31/20286.75 %427 386 385 (6)(15)(19)
19,248 19,237 
LTI Holdings, Inc.Electronic Components
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20267.21 %2,140 2,087 2,104 (6)
2,087 2,104 
Marinus Pharmaceuticals, Inc.Pharmaceuticals
First Lien Term Loan, 11.50% cash due 5/11/202617,203 16,920 16,859 (11)(15)
First Lien Delayed Draw Term Loan, 11.50% cash due 5/11/2026— — — (11)(15)(19)
16,920 16,859 
Mesoblast, Inc.Biotechnology
First Lien Term Loan, 8.00% cash 1.75% PIK due 11/19/20267,152 6,517 6,437 (11)(15)
First Lien Delayed Draw Term Loan, 8.00% cash 1.75% PIK due 11/19/2026— (11)(15)(19)
209,588 Warrant Shares (exercise price $7.26) expiration date 11/19/2028480 398 (11)(15)
6,998 6,836 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+5.75% cash due 7/21/20277.04 %16,346 16,058 16,034 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.75% cash due 7/21/20276.88 %1,231 1,197 1,190 (6)(15)(19)
First Lien Revolver, LIBOR+5.75% cash due 7/21/20276.75 %57 32 30 (6)(15)(19)
17,287 17,254 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.38 %45,313 44,131 44,634 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (64)(60)(6)(15)(19)
44,067 44,574 
Mosaic Companies, LLCHome Improvement Retail
First Lien Term Loan, LIBOR+6.75% cash due 7/2/20267.75 %46,796 46,000 46,234 (6)(15)
46,000 46,234 
12

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.51 %$28,108 $27,620 $28,015 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (13)(17)(6)(15)(19)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (13)(6)(6)(15)(19)
27,594 27,992 
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/20269.51 %22,560 22,203 21,545 (6)(15)
22,203 21,545 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.00 %48,710 47,254 48,077 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024— (197)(71)(6)(15)(19)
47,057 48,006 
NFP Corp.Other Diversified Financial Services
Fixed Rate Bond 6.875% cash due 8/15/20289,703 9,310 9,279 
9,310 9,279 
NN, Inc.Industrial Machinery
First Lien Term Loan, LIBOR+6.88% cash due 9/19/20267.88 %59,011 57,813 57,654 (6)(11)(15)
57,813 57,654 
OEConnection LLCApplication Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.46 %3,340 3,158 3,293 (6)
Second Lien Term Loan, LIBOR+7.00% cash due 9/25/20277.50 %7,519 7,376 7,331 (6)(15)
10,534 10,624 
OTG Management, LLCAirport Services
First Lien Term Loan, LIBOR+2.00% cash 8.00% PIK due 9/1/20253.00 %20,702 20,362 20,288 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+2.00% cash 8.00% PIK due 9/1/2025— (34)(38)(6)(15)(19)
20,328 20,250 
P & L Development, LLCPharmaceuticals
Fixed Rate Bond, 7.75% cash due 11/15/20257,776 7,826 7,178 
7,826 7,178 
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %9,900 9,470 9,871 (6)
9,470 9,871 
Performance Health Holdings, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 7/12/20277.01 %17,976 17,660 17,655 (6)(15)
17,660 17,655 
PFNY Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+7.00% cash due 12/31/20268.00 %26,286 25,789 25,760 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/31/2026— (47)(50)(6)(15)(19)
First Lien Revolver, LIBOR+7.00% cash due 12/31/2026— (24)(25)(6)(15)(19)
25,718 25,685 
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.26 %28,627 28,198 28,484 (6)(15)
28,198 28,484 
PLNTF Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+8.00% cash due 3/22/20269.00 %3,940 3,877 3,930 (6)(15)
3,877 3,930 
13

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Pluralsight, LLCApplication Software
First Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %$48,689 $47,869 $47,715 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 4/6/2027— (59)(71)(6)(15)(19)
47,810 47,644 
PRGX Global, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+6.75% cash due 3/3/20267.76 %33,946 32,974 33,413 (6)(15)
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026— (39)(40)(6)(15)(19)
80,515 Class B Common Units79 89 (15)
33,014 33,462 
Profrac Holdings II, LLCIndustrial Machinery
First Lien Term Loan, SOFR+8.50% cash due 3/4/20259.50 %34,743 33,727 34,048 (6)(15)
33,727 34,048 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/20278.46 %5,250 5,160 5,230 (6)(15)
5,160 5,230 
Quantum Bidco LimitedFood Distributors
First Lien Term Loan, SONIA+6.00% cash due 1/29/20286.28 %£3,501 4,639 4,496 (6)(11)(15)
4,639 4,496 
QuorumLabs, Inc.Application Software
64,887,669 Junior-2 Preferred Stock375 — (15)
375  
Radiology Partners Inc.Health Care Distributors
Fixed Rate Bond, 9.25% cash due 2/1/2028$4,755 4,717 4,764 
4,717 4,764 
Relativity ODA LLCApplication Software
First Lien Term Loan, LIBOR+7.50% cash due 5/12/20278.50 %23,727 23,254 23,276 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 5/12/2027— (47)(42)(6)(15)(19)
23,207 23,234 
Renaissance Holding Corp.Diversified Banks
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/20267.46 %3,542 3,515 3,520 (6)
3,515 3,520 
RumbleOn, Inc.Automotive Retail
First Lien Term Loan, LIBOR+8.25% cash due 8/31/2026