10-Q 1 osiii-033121x10xq.htm 10-Q Document

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
 
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 000-55975
Oaktree Strategic Income II, Inc.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
DELAWARE
(State or jurisdiction of
incorporation or organization)
 
83-0566439
(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
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 periods as the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   x     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. (Check one):
Large accelerated filer  o
 
Accelerated filer  o
Non-accelerated filer  x
Smaller reporting company  o
Emerging growth company  x

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 x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)    YES  ¨     NO  x


Securities registered pursuant to Section 12(b) of the Act
Title of Each ClassTrading Symbol(s)Name of Exchange on Which Registered
N/AN/AN/A
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding at May 11, 2021
Common stock, $0.001 par value17,401,121





OAKTREE STRATEGIC INCOME II, INC.

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021


TABLE OF CONTENTS
 
PART I — FINANCIAL INFORMATION
Item 1.
Consolidated Financial Statements:
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 6.

 


 



 

 


 



PART I — FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.
Oaktree Strategic Income II, Inc.
Consolidated Statements of Assets and Liabilities
March 31, 2021 (unaudited)September 30,
2020
ASSETS
Assets:
Investments – Non-control/Non-affiliate, at fair value (cost March 31, 2021: $542,832,835; cost September 30, 2020: $428,740,923)$550,932,159 $429,851,146 
Cash and cash equivalents7,973,296 28,742,283 
Restricted cash3,748,145 2,273,803 
Interest receivable2,264,999 1,485,133 
Receivables from unsettled transactions10,238,907 1,113,367 
Deferred financing costs2,267,638 1,669,903 
Derivative asset at fair value362,669 — 
Other assets329,599 504,847 
Total assets$578,117,412 $465,640,482 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$674,677 $771,862 
Base management fee and incentive fees payable5,978,978 4,468,874 
Due to affiliates811,431 570,134 
Interest payable833,384 581,762 
Payables from unsettled transactions14,099,701 6,594,355 
Director fees payable12,500 — 
Derivative liability at fair value— 647,889 
Deferred tax liability6,867 3,839 
Secured borrowings 10,000,000 — 
Credit facilities payable201,500,000 105,000,000 
Total liabilities233,917,538 118,638,715 
Commitments and contingencies (Note 12)
Net assets:
Common stock, $0.001 par value per share, 250,000,000 shares authorized; 17,401,121 shares issued and outstanding at March 31, 2021 and September 30, 202017,401 17,401 
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized; none issued and outstanding at March 31, 2021 and September 30, 2020— — 
Additional paid-in-capital337,337,998 337,337,998 
Accumulated distributable earnings (loss)6,844,475 9,646,368 
Total net assets (equivalent to $19.78 and $19.94 per common share at March 31, 2021 and September 30, 2020, respectively) (Note 11)344,199,874 347,001,767 
Total liabilities and net assets$578,117,412 $465,640,482 
See notes to Consolidated Financial Statements.



3


Oaktree Strategic Income II, Inc.
Consolidated Statements of Operations
(unaudited)

Three months ended
March 31, 2021
Three months ended
March 31, 2020
Six months ended
March 31, 2021
Six months ended
March 31, 2020
Interest income:
Non-control/Non-affiliate investments$9,579,273 $6,292,982 $17,974,620 $11,276,999 
Interest on cash and cash equivalents(120)21,586 (116)50,968 
Total interest income9,579,153 6,314,568 17,974,504 11,327,967 
PIK interest income:
   Non-control/Non-affiliate investments1,059,795 374,393 1,896,553 525,625 
   Total PIK interest income1,059,795 374,393 1,896,553 525,625 
Fee income:
   Non-control/Non-affiliate investments
833,122 447,367 2,104,005 577,314 
   Total fee income833,122 447,367 2,104,005 577,314 
Total investment income11,472,070 7,136,328 21,975,062 12,430,906 
Expenses:
Base management fee1,306,231 866,511 2,447,758 1,652,645 
Investment income incentive fee1,658,531 803,813 3,221,763 853,728 
Capital gains incentive fee710,519 (1,104,890)1,823,568 (427,572)
Professional fees196,033 253,793 483,762 421,776 
Directors fees38,750 38,750 77,500 77,637 
Interest expense1,339,292 1,631,976 2,217,248 2,987,169 
Administrator expense117,186 130,370 208,142 244,287 
General and administrative expenses181,924 195,863 431,835 404,009 
Total expenses5,548,466 2,816,186 10,911,576 6,213,679 
Net investment income5,923,604 4,320,142 11,063,486 6,217,227 
Unrealized appreciation (depreciation):
Non-control/Non-affiliate investments1,839,114 (40,448,299)6,981,094 (37,326,082)
Foreign currency forward contracts967,184 37,386 1,010,558 (22,300)
Net unrealized appreciation (depreciation)2,806,298 (40,410,913)7,991,652 (37,348,382)
Realized gains (losses):
Non-control/Non-affiliate investments1,428,664 266,897 2,667,016 590,954 
Foreign currency forward contracts(687,583)40,961 (1,541,331)40,961 
Net realized gains (losses)741,081 307,858 1,125,685 631,915 
Provision for income tax (expense) benefit(5,217)(309)(13,234)(5,555)
Net realized and unrealized gains (losses), net of taxes3,542,162 (40,103,364)9,104,103 (36,722,022)
Net increase (decrease) in net assets resulting from operations$9,465,766 $(35,783,222)$20,167,589 $(30,504,795)
Net investment income per common share — basic and diluted$0.34 $0.51 $0.64 $0.74 
Earnings (loss) per common share — basic and diluted (Note 5)$0.54 $(4.22)$1.16 $(3.63)
Weighted average common shares outstanding — basic and diluted17,401,121 8,489,301 17,401,121 8,399,091 
See notes to Consolidated Financial Statements.



4


Oaktree Strategic Income II, Inc.
Consolidated Statements of Changes in Net Assets
(unaudited)

 
Three months ended
March 31, 2021
Three months ended
March 31, 2020
Six months ended
March 31, 2021
Six months ended
March 31, 2020
Operations:
Net investment income$5,923,604 $4,320,142 $11,063,486 $6,217,227 
Net unrealized appreciation (depreciation)2,806,298 (40,410,913)7,991,652 (37,348,382)
Net realized gains (losses)741,081 307,858 1,125,685 631,915 
Provision for income tax (expense) benefit(5,217)(309)(13,234)(5,555)
Net increase (decrease) in net assets resulting from operations9,465,766 (35,783,222)20,167,589 (30,504,795)
Capital share transactions:
Distributions to stockholders(6,090,393)(2,576,058)(22,969,482)(7,645,072)
Issuance of common stock 67,536,799  67,536,799 
Net increase (decrease) in net assets from capital share transactions(6,090,393)64,960,741 (22,969,482)59,891,727 
Total increase (decrease) in net assets3,375,373 29,177,519 (2,801,893)29,386,932 
Net assets at beginning of period340,824,501 171,836,163 347,001,767 171,626,750 
Net assets at end of period$344,199,874 $201,013,682 $344,199,874 $201,013,682 
Net asset value per common share$19.78 $17.37 $19.78 $17.37 
Common shares outstanding at end of period17,401,121 11,575,664 17,401,121 11,575,664 

See notes to Consolidated Financial Statements.




5

Oaktree Strategic Income II, Inc.
Consolidated Statements of Cash Flows
(unaudited)





Six months ended March 31, 2021Six months ended March 31, 2020
Operating activities:
Net increase (decrease) in net assets resulting from operations$20,167,589 $(30,504,795)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net unrealized (appreciation) depreciation(7,991,652)37,348,382 
Net realized (gains) losses(1,125,685)(631,915)
PIK interest income(1,896,553)(525,625)
Accretion of original issue discount on investments(2,079,341)(1,119,252)
Amortization of deferred financing costs280,954 330,347 
Deferred taxes3,028 5,555 
Purchases of investments(226,651,699)(188,883,931)
Proceeds from sales and repayments of investments117,748,607 90,284,784 
Changes in operating assets and liabilities:
(Increase) decrease in interest receivable(701,571)(39,239)
(Increase) decrease in receivables from unsettled transactions(9,125,540)981,335 
(Increase) decrease in other assets 175,248 19,928 
Increase (decrease) in accounts payable, accrued expenses and other liabilities(269,594)(243,607)
Increase (decrease) in base management fee and incentive fees payable1,510,104 541,666 
Increase (decrease) in due to affiliates 241,297 (458,083)
Increase (decrease) in interest payable251,622 204,648 
Increase (decrease) in payables from unsettled transactions7,505,346 (8,678,042)
Increase (decrease) in director fees payable12,500 — 
Net cash used in operating activities(101,945,340)(101,367,844)
Financing activities:
Distributions paid in cash(22,969,482)(7,645,072)
Borrowings under the credit facilities96,500,000 130,000,000 
Repayments of borrowings under the credit facilities— (63,000,000)
Proceeds from secured borrowings 10,000,000 — 
Proceeds from the issuance of common stock— 65,472,299 
Deferred financing costs paid(706,280)(2,245)
Net cash provided by financing activities82,824,238 124,824,982 
Effect of exchange rate changes on foreign currency(173,543)47 
Net increase (decrease) in cash and cash equivalents and restricted cash(19,294,645)23,457,185 
Cash and cash equivalents and restricted cash, beginning of period31,016,086 11,348,126 
Cash and cash equivalents and restricted cash, end of period$11,721,441 $34,805,311 
Supplemental information:
Cash paid for interest$1,684,672 $2,452,174 
Non-cash financing activities:
Accrued deferred financing costs$172,409 $2,412,000 
Reconciliation to the Consolidated Statement of Assets and LiabilitiesMarch 31, 2021September 30, 2020
Cash and cash equivalents$7,973,296 $28,742,283 
Restricted cash3,748,145 2,273,803 
Total cash and cash equivalents and restricted cash$11,721,441 $31,016,086 
See notes to Consolidated Financial Statements.



6

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Non-Control/Non-Affiliate Investments
(7)
109 Montgomery Owner LLCReal Estate Operating Companies
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/20237.50 %$1,537,985 $1,486,043 $1,514,969 (5)(8)(9)
1,486,043 1,514,969 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% cash due 12/22/202212,812,000 12,701,431 12,812,000 (8)(10)
12,701,431 12,812,000 
Access CIG, LLCDiversified Support Services
First Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.87 %7,436,500 7,388,369 7,387,345 (5)
7,388,369 7,387,345 
Accupac, Inc.Personal Products
First Lien Term Loan, LIBOR+6.00% cash due 1/17/20267.00 %4,536,512 4,473,059 4,536,512 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026— (11,980)— (5)(8)(9)
First Lien Revolver, LIBOR+6.00% cash due 1/17/20267.00 %571,008 563,021 571,008 (5)(8)
5,024,100 5,107,520 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.00 %4,381,994 4,314,915 4,333,792 (5)(8)
First Lien Revolver, LIBOR+7.00% cash due 10/31/20258.00 %37,488 30,126 32,333 (5)(8)(9)
4,345,041 4,366,125 
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %6,583,333 6,425,969 6,456,275 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %1,333,333 1,301,462 1,307,600 (5)(8)
7,727,431 7,763,875 
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %5,147,000 5,625,186 6,039,167 (5)(8)(10)
5,625,186 6,039,167 
Alvogen Pharma US, Inc.Pharmaceuticals
First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %2,646,943 2,406,664 2,644,296 (5)
2,406,664 2,644,296 
Alvotech Holdings S.A.Biotechnology
Fixed Rate Bond 15% PIK Note A due 12/13/20232,000,000 2,740,889 2,888,291 (8)(10)(11)
Fixed Rate Bond 15% PIK Note B due 12/13/20232,000,000 2,740,889 2,808,431 (8)(10)(11)
5,481,778 5,696,722 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %8,118,000 7,823,691 7,996,230 (5)(8)(10)
7,823,691 7,996,230 
Anastasia Parent, LLCPersonal Products
First Lien Term Loan, LIBOR+3.75% cash due 8/11/20251,833,112 1,447,077 1,261,539 (5)(12)
1,447,077 1,261,539 
Ankura Consulting Group LLCResearch & Consulting Services
Second Lien Term Loan, LIBOR+8.00% cash due 3/17/20298.75 %2,398,000 2,362,030 2,409,990 (5)(8)
2,362,030 2,409,990 
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %7,129,297 7,038,153 7,001,804 (5)(8)
First Lien Revolver, LIBOR+7.25% cash due 1/10/20258.25 %184,615 178,804 176,362 (5)(8)(9)
7,216,957 7,178,166 



7

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+5.4375% cash 2.26875% PIK due 7/14/20266.44 %1,040,859 $1,156,389 $1,214,759 (5)(8)(10)
First Lien Term Loan, UK LIBOR+5.4375% cash 2.26875% PIK due 7/14/20266.19 %£8,168,537 9,981,244 11,247,590 (5)(8)(10)(13)
First Lien Delayed Draw Term Loan, UK LIBOR+5.4375% cash 2.26875% PIK due 7/14/20266.19 %£1,143,253 1,508,374 1,572,615 (5)(8)(9)(10)
Fixed Rate Bond, 11.50% cash due 1/15/2027$844,898 836,959 908,265 (10)
13,482,966 14,943,229 
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %1,003,589 1,003,589 968,298 (5)(8)(9)
174,131 Class A Units82,713 67,911 (8)
100,285 Preferred Units, 6%110,285 121,313 (8)
7,621 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (8)
1,196,587 1,157,522 
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.25 %915,841 791,575 857,456 (5)
791,575 857,456 
Asurion, LLCProperty & Casualty Insurance
Second Lien Term Loan, LIBOR+5.25% cash due 1/31/20285.36 %3,138,000 3,138,000 3,200,368 (5)
3,138,000 3,200,368 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202612,484,249 12,031,979 12,359,406 (8)(10)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (86,693)(62,421)(8)(9)(10)
97,205 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027334,385 89,429 (8)(10)
12,279,671 12,386,414 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %7,425,000 7,273,059 7,014,026 (5)(8)(10)
7,273,059 7,014,026 
The AveryReal Estate Operating Companies
First Lien Delayed Draw Term Loan in T8 Urban Condo Owner, LLC, LIBOR+7.30% cash due 2/17/20237.55 %6,156,700 6,090,668 6,070,679 (5)(8)(9)
Delayed Draw Subordinated Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/202312.75 %1,381,065 1,366,302 1,363,966 (5)(8)(9)
7,456,970 7,434,645 
Blumenthal Temecula, LLCAutomotive Retail
First Lien Term Loan, 9.00% cash due 9/24/20231,277,827 1,277,827 1,277,827 (8)
95,837 Preferred Units in Unstoppable Automotive VMV, LLC95,837 95,837 (8)
415,294 Preferred Units in Unstoppable Automotive AMV, LLC415,294 415,294 (8)
95,837 Common Units in Unstoppable Automotive AMV, LLC95,837 95,837 (8)
31,946 Common Units in Unstoppable Automotive VMV, LLC31,946 31,946 (8)
1,916,741 1,916,741 
BX Commercial Mortgage Trust 2020-VIVADiversified Real Estate Activities
Class E Variable Notes due 3/9/20443.67 %879,016 681,309 829,967 (5)(8)(10)
681,309 829,967 
Cadence Aerospace, LLCAerospace & Defense
First Lien Term Loan, LIBOR+3.25% cash 5.25% PIK due 11/14/20234.25 %3,112,821 3,082,904 2,858,815 (5)(8)
3,082,904 2,858,815 
Carrols Restaurant Group, Inc.Restaurants
First Lien Term Loan, LIBOR+6.25% cash due 4/30/20267.25 %4,953,568 4,729,558 4,959,759 (5)
4,729,558 4,959,759 



8

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Chief Power Finance II, LLCIndependent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/20227.50 %$7,862,500 $7,753,847 $7,714,292 (5)(8)
7,753,847 7,714,292 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.00 %653,028 630,593 629,845 (5)
630,593 629,845 
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %7,147,071 7,075,600 7,170,870 (5)
7,075,600 7,170,870 
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/20259,389,898 9,389,898 7,652,767 (5)(8)
Common Stock Warrants expiration date 7/28/2025— 488,304 (8)
9,389,898 8,141,071 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.11 %5,819,230 5,656,142 5,636,477 (5)
5,656,142 5,636,477 
Corrona, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %3,741,811 3,690,519 3,707,387 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %444,553 428,967 432,262 (5)(8)(9)
First Lien Revolver, PRIME+4.50% cash due 12/13/20257.75 %111,500 102,329 105,345 (5)(8)(9)
401 Class A2 Common Units in Corrona Group Holdings, L.P.378,610 429,503 (8)
4,600,425 4,674,497 
Coty Inc.Personal Products
First Lien Revolver, LIBOR+1.75% cash due 4/5/2023— (457,344)(603,440)(5)(8)(9)(10)
(457,344)(603,440)
CPC Acquisition Corp.Specialty Chemicals
Second Lien Term Loan, LIBOR+7.75% cash due 12/29/20288.50 %727,000 716,095 737,905 (5)
716,095 737,905 
Curium Bidco S.à.r.l.Biotechnology
Second Lien Term Loan, LIBOR+7.75% cash due 10/27/20288.50 %5,788,000 5,701,180 5,918,230 (5)(8)(10)
5,701,180 5,918,230 
Dcert Buyer, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.11 %3,940,101 3,930,250 3,938,190 (5)
3,930,250 3,938,190 
Dealer Tire, LLCDistributors
First Lien Term Loan, LIBOR+4.25% cash due 12/12/20254.36 %3,891,287 3,861,674 3,902,767 (5)
3,861,674 3,902,767 
Delta Topco, Inc.Systems Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.00 %2,364,000 2,352,180 2,423,100 (5)
2,352,180 2,423,100 
Digital.AI Software Holdings, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 2/10/20278.00 %2,650,968 2,573,254 2,571,439 (5)(8)
First Lien Revolver, LIBOR+7.00% cash due 2/10/2027— (8,327)(8,521)(5)(8)(9)
2,564,927 2,562,918 
EHR Canada, LLCFood Retail
First Lien Term Loan, LIBOR+8.00% cash due 4/30/20219.00 %457,407 457,140 456,034 (5)(8)
457,140 456,034 
Enviva Holdings, LPCoal & Consumable Fuels
First Lien Term Loan, LIBOR+5.50% cash due 2/17/20266.50 %2,000,000 1,980,000 2,005,000 (5)(8)(10)
1,980,000 2,005,000 



9

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
FFI Holdings I CorpIndustrial Machinery
First Lien Term Loan, PRIME+5.25% cash due 1/24/20258.50 %$950,000 $861,299 $950,000 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 1/24/20257.25 %570,000 570,000 570,000 (5)(8)(9)
1,431,299 1,520,000 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/20252,943,000 2,785,053 2,869,425 (8)(10)
85,811 Common Stock Warrants (exercise price $3.20) expiration date 8/27/203090,960 112,412 (8)(10)
2,876,013 2,981,837 
GI Chill Acquisition LLCManaged Health Care
First Lien Term Loan, LIBOR+4.00% cash due 8/6/20254.20 %1,950,000 1,940,250 1,951,229 (5)(8)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/20267.70 %2,000,000 1,986,596 1,955,000 (5)(8)
3,926,846 3,906,229 
Global Medical Response, Inc.Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %1,073,267 1,057,378 1,068,287 (5)
First Lien Term Loan, LIBOR+4.75% cash due 10/2/20255.75 %3,763,867 3,694,064 3,757,751 (5)
4,751,442 4,826,038 
Grab Holdings Inc.Interactive Media & Services
First Lien Term Loan, LIBOR+4.50% cash due 1/29/20265.50 %4,000,000 3,883,692 4,085,000 (5)(10)
3,883,692 4,085,000 
Gulf Operating, LLCOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+5.25% cash due 8/25/20236.25 %604,019 387,990 502,737 (5)
First Lien Revolver, LIBOR+4.00% cash due 12/27/2021— (242,900)(173,500)(5)(8)(9)
145,090 329,237 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50 %2,517,618 2,482,696 2,500,247 (5)(8)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.50 %88,235 86,940 87,626 (5)(8)
2,569,636 2,587,873 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20256.75 %2,354,540 2,314,489 2,351,008 (5)(8)
First Lien Revolver, LIBOR+5.75% cash due 7/2/2025— (3,363)(297)(5)(8)(9)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/20259.00 %5,804,899 5,707,914 5,748,301 (5)(8)
8,019,040 8,099,012 
Infinite Bidco LLCElectric Utilities
Second Lien Term Loan, LIBOR+7.00% cash due 3/2/20297.50 %2,969,000 2,954,155 2,987,556 (5)
2,954,155 2,987,556 
Intelsat Jackson Holdings S.A.Alternative Carriers
First Lien Term Loan, PRIME+4.75% cash due 11/27/20238.00 %986,227 959,157 1,004,832 (5)(10)
959,157 1,004,832 
Inventus Power, Inc.Electrical Components & Equipment
First Lien Term Loan, LIBOR+5.00% cash due 3/29/20246.00 %4,583,000 4,537,295 4,537,170 (5)(8)
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/20249.50 %2,750,000 2,695,129 2,695,000 (5)(8)
7,232,424 7,232,170 
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+8.50% cash due 12/1/20289.50 %7,975,000 7,737,699 8,034,813 (5)(8)
7,737,699 8,034,813 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20278.50 %5,956,070 5,736,114 5,723,783 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+7.50% cash due 1/29/2027— — — (5)(8)(9)
5,736,114 5,723,783 
Latam Airlines Group S.A.Airlines
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/20222,968,243 2,890,490 3,000,644 (5)(8)(9)(10)
2,890,490 3,000,644 



10

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.20 %$8,842,500 $8,745,303 $8,754,075 (5)(8)
8,745,303 8,754,075 
Lightstone Holdco LLCElectric Utilities
First Lien Term Loan, LIBOR+3.75% cash due 1/30/20244.75 %1,365,000 1,220,388 1,082,991 (5)
1,220,388 1,082,991 
LogMeIn, Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.85 %5,985,000 5,846,980 5,976,591 (5)
5,846,980 5,976,591 
LTI Holdings, Inc.Electronic Components
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20266.86 %1,396,000 1,373,039 1,390,765 (5)
1,373,039 1,390,765 
Maravai Intermediate Holdings, LLCBiotechnology
First Lien Term Loan, LIBOR+4.25% cash due 10/19/20275.25 %5,942,083 5,882,663 5,979,221 (5)
5,882,663 5,979,221 
MedAssets Software Intermediate Holdings, Inc.Health Care Technology
Second Lien Term Loan, LIBOR+7.75% cash due 1/29/20298.50 %4,874,000 4,778,162 4,776,520 (5)(8)
4,778,162 4,776,520 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.00 %7,329,282 7,235,791 6,948,159 (5)(8)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (9,841)(39,619)(5)(8)(9)
7,225,950 6,908,540 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %6,079,810 6,033,780 6,079,810 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (17,953)— (5)(8)(9)
First Lien Revolver, LIBOR+5.50% cash due 2/10/20266.50 %23,060 18,448 23,060 (5)(8)(9)
6,034,275 6,102,870 
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/20269.50 %7,779,000 7,629,953 7,646,757 (5)(8)
7,629,953 7,646,757 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.00 %12,941,088 12,511,976 12,526,973 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024— (62,040)(49,632)(5)(8)(9)
12,449,936 12,477,341 
NN, Inc.Industrial Machinery
First Lien Term Loan, LIBOR+6.88% cash due 9/19/20267.88 %14,877,000 14,507,480 14,505,075 (5)(8)(10)
14,507,480 14,505,075 
OEConnection LLCApplication Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.11 %9,333,282 9,290,536 9,315,782 (5)
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026— (138)(64)(5)(9)
9,290,398 9,315,718 
Olaplex, Inc.Personal Products
First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %11,696,288 11,524,646 11,696,288 (5)(8)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025— (15,477)(8,413)(5)(8)(9)
11,509,169 11,687,875 
P & L Development, LLCPharmaceuticals
Fixed Rate Bond, 7.75% cash due 11/15/20256,290,000 6,290,000 6,746,025 
6,290,000 6,746,025 



11

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %$5,000,000 $4,810,667 $5,000,000 (5)
4,810,667 5,000,000 
PaySimple, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+5.50% cash due 8/23/20255.61 %10,842,661 10,680,652 10,815,554 (5)(8)
10,680,652 10,815,554 
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %9,872,000 9,723,920 9,884,340 (5)(8)
9,723,920 9,884,340 
PLNTF Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+8.00% cash due 3/12/20269.00 %4,431,000 4,342,478 4,408,845 (5)(8)
4,342,478 4,408,845 
PRGX Global, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+6.75% cash due 3/3/20267.75 %8,298,154 8,134,827 8,132,191 (5)(8)
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026— (11,994)(12,188)(5)(8)(9)
19,485 Class B Common Units19,485 19,485 (8)
8,142,318 8,139,488 
ProFrac Services, LLCIndustrial Machinery
First Lien Term Loan, LIBOR+8.50% cash due 9/15/20239.75 %1,198,701 1,192,796 945,973 (5)(8)
1,192,796 945,973 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/20278.11 %1,500,000 1,500,000 1,492,500 (5)(8)
1,500,000 1,492,500 
Pug LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+8.00% cash due 2/12/20278.75 %5,542,150 5,237,616 5,722,270 (5)
5,237,616 5,722,270 
Quantum Bidco LimitedFood Distributors
First Lien Term Loan, UK LIBOR+6.00% cash due 1/29/20286.04 %£1,125,000 1,482,354 1,519,179 (5)(10)
1,482,354 1,519,179 
Renaissance Holding Corp.Diversified Banks
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/20267.11 %1,138,000 1,129,465 1,138,285 (5)
1,129,465 1,138,285 
RS Ivy Holdco, Inc.Oil & Gas Exploration & Production
First Lien Term Loan, LIBOR+5.50% cash due 12/23/20276.50 %2,493,750 2,456,344 2,503,102 (5)(8)
2,456,344 2,503,102 
Sabert CorporationMetal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %2,741,911 2,714,492 2,748,766 (5)
2,714,492 2,748,766 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/20261,399,338 1,134,055 1,202,032 (8)
1,134,055 1,202,032 
Signify Health, LLCHealth Care Services
First Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.50 %6,858,586 6,812,884 6,885,231 (5)
6,812,884 6,885,231 
Sirva Worldwide, Inc.Diversified Support Services
First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.61 %1,887,500 1,859,188 1,745,938 (5)
1,859,188 1,745,938 
Sorenson Communications, LLCCommunications Equipment
First Lien Term Loan, PRIME+4.25% cash due 3/17/20267.50 %4,996,000 4,946,040 5,008,490 (5)(8)
4,946,040 5,008,490 



12

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Sorrento Therapeutics, Inc.Biotechnology
25,600 Common Stock Units$100,864 $211,712 (10)
100,864 211,712 
Star US Bidco LLCIndustrial Machinery
First Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %$5,247,584 4,966,601 5,212,609 (5)
4,966,601 5,212,609 
SumUp Holdings Luxembourg S.À.R.L.Other Diversified Financial Services
First Lien Delayed Draw Term Loan, EURIBOR+8.50% cash due 3/10/202610.00 %5,001,333 5,789,499 5,737,795 (5)(8)(9)(10)
5,789,499 5,737,795 
Sunland Asphalt & Construction, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.00% cash due 1/13/20267.00 %8,815,721 8,646,939 8,648,223 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/13/20267.00 %2,964,287 2,907,420 2,907,965 (5)(8)
First Lien Revolver, LIBOR+6.00% cash due 1/13/20227.00 %806,451 777,786 773,641 (5)(8)(9)
12,332,145 12,329,829 
Supermoose Borrower, LLCApplication Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.95 %2,909,744 2,614,212 2,795,435 (5)
2,614,212 2,795,435 
Tacala, LLCRestaurants
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/20288.25 %3,394,977 3,343,777 3,396,403 (5)
3,343,777 3,396,403 
Telestream Holdings CorporationApplication Software
First Lien Term Loan, LIBOR+8.75% cash due 10/15/20259.75 %5,301,713 5,210,814 5,206,282 (5)(8)
First Lien Revolver, LIBOR+8.75% cash due 10/15/2025— (9,205)(9,018)(5)(8)(9)
5,201,609 5,197,264 
TerSera Therapeutics LLCPharmaceuticals
Second Lien Term Loan, LIBOR+10.00% cash due 3/30/202611.00 %6,100,000 5,935,489 6,157,413 (5)(8)
5,935,489 6,157,413 
Thermacell Repellents, Inc.Leisure Products
First Lien Term Loan, LIBOR+6.25% cash due 12/4/20267.25 %6,666,667 6,633,333 6,633,333 (5)(8)
First Lien Revolver, LIBOR+6.25% cash due 12/4/20267.25 %541,667 537,500 537,500 (5)(8)(9)
7,170,833 7,170,833 
Thrasio, LLCSpecialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 12/18/20268.00 %5,918,770 5,775,603 5,859,582 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/18/2026— (48,964)(39,171)(5)(8)(9)
2,182 Shares of Series C-3 Preferred Stock in Thrasio Holdings, Inc.26,665 26,664 (8)
73,648 Shares of Series C-2 Preferred Stock in Thrasio Holdings, Inc.600,000 899,981 (8)
4,000 Shares of Series X Preferred Stock in Thrasio Holdings, Inc.4,000,200 4,074,204 (8)(9)
10,353,504 10,821,260 
TIBCO Software Inc.Application Software
First Lien Term Loan, LIBOR+3.75% cash due 6/30/20263.86 %9,366,490 9,373,664 9,266,971 (5)
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/20287.36 %3,894,000 3,865,691 3,945,362 (5)
13,239,355 13,212,333 
Transact Holdings Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 4/30/20264.86 %7,880,000 7,761,800 7,820,900 (5)(8)
7,761,800 7,820,900 
Uniti Fiber Holdings Inc.Specialized REITs
Fixed Rate Bond, 7.88% cash due 2/15/20251,359,000 1,359,000 1,470,832 (10)
1,359,000 1,470,832 



13

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Velocity Commercial Capital, LLCThrifts & Mortgage Finance
First Lien Term Loan, LIBOR+8.00% cash due 2/5/20269.00 %$2,778,513 $2,696,909 $2,695,158 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+8.00% cash due 2/5/20269.00 %334,685 301,775 301,069 (5)(8)(9)
2,998,684 2,996,227 
Veritas US Inc.Application Software
First Lien Term Loan, LIBOR+5.00% cash due 9/1/20256.00 %7,462,547 7,329,531 7,485,867 (5)
7,329,531 7,485,867 
Verscend Holding Corp.Health Care Technology
First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.61 %5,099,576 5,097,967 5,106,664 (5)
5,097,967 5,106,664 
Virgin Pulse, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 4/6/20298.00 %3,040,000 3,009,600 3,070,400 (5)
3,009,600 3,070,400 
William Morris Endeavor Entertainment, LLCMovies & Entertainment
First Lien Term Loan, LIBOR+8.50% cash due 5/18/20259.50 %13,048,436 12,452,757 13,863,963 (5)(8)
12,452,757 13,863,963 
Win Brands Group LLCHousewares & Specialties
First Lien Term Loan, LIBOR+9.00% cash 5.00% PIK due 1/22/202610.00 %641,104 634,724 634,693 (5)(8)
 48 Class F Warrants in Brand Value Growth LLC (exercise price $0.01) expiration date 1/25/2027 — — (8)
634,724 634,693 
Windstream Services II, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %10,917,346 10,512,822 10,937,816 (5)
10,512,822 10,937,816 
WP CPP Holdings, LLCAerospace & Defense
First Lien Term Loan, LIBOR+3.75% cash due 4/30/20254.75 %3,912,400 3,894,719 3,815,411 (5)
3,894,719 3,815,411 
WPEngine, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 3/27/20267.50 %5,118,050 5,011,706 5,042,814 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+6.50% cash due 3/27/2026— (197,496)(139,723)(5)(8)(9)
4,814,210 4,903,091 
Zephyr Bidco LimitedSpecialized Finance
Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/20267.55 %£2,000,000 2,579,326 2,709,386 (5)(10)
2,579,326 2,709,386 
 Total Non-Control/Non-Affiliate Investments (160.1% of net assets)$542,832,835 $550,932,159 
 Cash and Cash Equivalents and Restricted Cash (3.4% of net assets)$11,721,441 $11,721,441 
Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (163.5% of net assets)$554,554,276 $562,653,600 
Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation (Depreciation)
Foreign currency forward contract$13,160,344 10,900,857 5/13/2021Bank of New York Mellon$337,422 
Foreign currency forward contract$15,089,281 £10,916,906 5/13/2021Bank of New York Mellon25,247 
$362,669 





14

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
March 31, 2021
(unaudited)






(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
(3)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(4)Each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(5)The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of March 31, 2021, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.11%, the 60-day LIBOR at 0.14%, the 90-day LIBOR at 0.20%, the 180-day LIBOR at 0.20%, the 360-day LIBOR at 0.28%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.05%, the 180-day UK LIBOR at 0.04%, the 30-day EURIBOR at (0.58)% and the 180-day EURIBOR at (0.54)%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(6)"€" signifies the investment is denominated in Euros. “£” signifies the investment is denominated in British Pounds. All other investments are denominated in U.S. dollars.
(7)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments. Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities and/or has the power to exercise control over the management or policies of the company. Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(8)As of March 31, 2021, these investments are categorized as Level 3 within the fair value hierarchy established by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("ASC 820") and were valued using significant unobservable inputs.
(9)Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(10)Investment is not a qualifying asset as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of March 31, 2021, qualifying assets represented 80.5% of the Company's total assets and non-qualifying assets represented 19.5% of the Company's total assets.
(11)Payment-in-kind ("PIK") interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment. As a result, the principal amount of the investment does not increase over time for accumulated PIK interest. As of March 31, 2021, the accumulated PIK interest balance for each of the Alvotech A notes and the B notes was $0.8 million. The fair value of this investment is inclusive of PIK.
(12)This investment was on cash non-accrual status as of March 31, 2