10-Q 1 osiii-0630202210xq.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 June 30, 2022
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 August 5, 2022
Common stock, $0.001 par value17,401,121





OAKTREE STRATEGIC INCOME II, INC.

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2022


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
June 30, 2022 (unaudited)September 30, 2021
ASSETS
Assets:
Investments – Non-control/Non-affiliate, at fair value (cost June 30, 2022: $580,967,818; cost September 30, 2021: $568,303,425)$566,675,653 $575,429,432 
Cash and cash equivalents21,175,177 19,255,047 
Restricted cash9,815,519 4,317,968 
Interest receivable2,673,301 3,196,194 
Receivables from unsettled transactions1,833,059 11,349,581 
Deferred financing costs1,391,387 1,915,573 
Derivative asset at fair value352,041 618,004 
Other assets279,586 364,450 
Total assets$604,195,723 $616,446,249 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$401,252 $482,680 
Base management fee and incentive fees payable3,213,805 6,433,876 
Due to affiliates576,181 1,055,391 
Interest payable1,817,853 884,294 
Payables from unsettled transactions3,035,689 — 
Director fees payable12,500 — 
Deferred tax liability56,780 117,374 
Secured borrowings 5,802,122 9,969,425 
Credit facilities payable264,000,000 251,000,000 
Total liabilities278,916,182 269,943,040 
Commitments and contingencies (Note 11)
Net assets:
Common stock, $0.001 par value per share, 250,000,000 shares authorized; 17,401,121 shares issued and outstanding at June 30, 2022 and September 30, 202117,401 17,401 
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized; none issued and outstanding at June 30, 2022 and September 30, 2021— — 
Additional paid-in-capital337,337,998 337,337,998 
Accumulated distributable earnings (loss)(12,075,858)9,147,810 
Total net assets (equivalent to $18.69 and $19.91 per common share at June 30, 2022 and September 30, 2021, respectively) (Note 10)325,279,541 346,503,209 
Total liabilities and net assets$604,195,723 $616,446,249 
See notes to Consolidated Financial Statements.



3


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


Three months ended
June 30, 2022
Three months ended
June 30, 2021
Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Interest income:
Non-control/Non-affiliate investments$11,924,554 $11,410,618 $37,157,203 $29,385,238 
Interest on cash and cash equivalents5,575 (17)5,363 (133)
Total interest income11,930,129 11,410,601 37,162,566 29,385,105 
PIK interest income:
   Non-control/Non-affiliate investments1,120,082 1,063,850 3,010,940 2,960,403 
   Total PIK interest income1,120,082 1,063,850 3,010,940 2,960,403 
Fee income:
   Non-control/Non-affiliate investments
558,320 1,927,862 1,271,325 4,031,867 
   Total fee income558,320 1,927,862 1,271,325 4,031,867 
Dividend income:
   Non-control/Non-affiliate investments
24,712 — 24,712 — 
   Total dividend income24,712  24,712  
Total investment income13,633,243 14,402,313 41,469,543 36,377,375 
Expenses:
Base management fee1,363,619 1,398,118 4,289,728 3,845,876 
Investment income incentive fee1,850,189 2,149,705 5,816,775 5,371,468 
Capital gains incentive fee(1,287,059)96,473 (1,988,557)1,920,041 
Professional fees252,017 257,669 801,637 741,431 
Director fees38,750 38,750 116,250 116,250 
Interest expense2,399,380 1,630,614 6,206,849 3,847,862 
Administrator expense108,141 105,792 342,356 313,934 
General and administrative expenses220,393 212,813 628,838 644,648 
Total expenses4,945,430 5,889,934 16,213,876 16,801,510 
Net investment income8,687,813 8,512,379 25,255,667 19,575,865 
Unrealized appreciation (depreciation):
Non-control/Non-affiliate investments(16,185,425)(492,162)(21,452,202)6,488,932 
Foreign currency forward contracts(503,166)394,129 (265,963)1,404,687 
Net unrealized appreciation (depreciation)(16,688,591)(98,033)(21,718,165)7,893,619 
Realized gains (losses):
Non-control/Non-affiliate investments49,005 963,603 495,035 3,630,619 
Foreign currency forward contracts2,681,434 (267,789)3,747,763 (1,809,120)
Net realized gains (losses)2,730,439 695,814 4,242,798 1,821,499 
Provision for income tax (expense) benefit43,831 (104,025)55,903 (117,259)
Net realized and unrealized gains (losses), net of taxes(13,914,321)493,756 (17,419,464)9,597,859 
Net increase (decrease) in net assets resulting from operations$(5,226,508)$9,006,135 $7,836,203 $29,173,724 
Net investment income per common share — basic and diluted$0.50 $0.49 $1.45 $1.12 
Earnings (loss) per common share — basic and diluted (Note 5)$(0.30)$0.52 $0.45 $1.68 
Weighted average common shares outstanding — basic and diluted17,401,121 17,401,121 17,401,121 17,401,121 
See notes to Consolidated Financial Statements.



4


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

 
Three months ended
June 30, 2022
Three months ended
June 30, 2021
Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Operations:
Net investment income$8,687,813 $8,512,379 $25,255,667 $19,575,865 
Net unrealized appreciation (depreciation)(16,688,591)(98,033)(21,718,165)7,893,619 
Net realized gains (losses)2,730,439 695,814 4,242,798 1,821,499 
Provision for income tax (expense) benefit43,831 (104,025)55,903 (117,259)
Net increase (decrease) in net assets resulting from operations(5,226,508)9,006,135 7,836,203 29,173,724 
Capital share transactions:
Distributions to stockholders(7,656,494)(6,960,449)(29,059,871)(29,929,931)
Net increase (decrease) in net assets from capital share transactions(7,656,494)(6,960,449)(29,059,871)(29,929,931)
Total increase (decrease) in net assets(12,883,002)2,045,686 (21,223,668)(756,207)
Net assets at beginning of period338,162,543 344,199,874 346,503,209 347,001,767 
Net assets at end of period$325,279,541 $346,245,560 $325,279,541 $346,245,560 
Net asset value per common share$18.69 $19.90 $18.69 $19.90 
Common shares outstanding at end of period17,401,121 17,401,121 17,401,121 17,401,121 

See notes to Consolidated Financial Statements.




5

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







Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Operating activities:
Net increase (decrease) in net assets resulting from operations$7,836,203 $29,173,724 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net unrealized (appreciation) depreciation21,718,165 (7,893,619)
Net realized (gains) losses(4,242,798)(1,821,499)
PIK interest income(3,010,940)(2,960,403)
Accretion of original issue discount on investments(3,999,618)(3,626,166)
Amortization of deferred financing costs524,186 456,987 
Deferred taxes(60,594)104,706 
Purchases of investments(135,289,634)(278,278,107)
Proceeds from sales and repayments of investments134,529,728 180,298,197 
Changes in operating assets and liabilities:
(Increase) decrease in interest receivable128,022 (949,787)
(Increase) decrease in receivables from unsettled transactions9,516,522 (2,384,628)
(Increase) decrease in other assets 84,864 314,674 
Increase (decrease) in accounts payable, accrued expenses and other liabilities(81,428)(434,942)
Increase (decrease) in base management fee and incentive fees payable(3,220,071)2,189,637 
Increase (decrease) in due to affiliates (479,210)364,803 
Increase (decrease) in interest payable933,559 560,802 
Increase (decrease) in payables from unsettled transactions3,035,689 778,680 
Increase (decrease) in director fees payable12,500 — 
Net cash provided by (used in) operating activities27,935,145 (84,106,941)
Financing activities:
Distributions paid in cash(29,059,871)(29,929,931)
Borrowings under the credit facilities54,000,000 108,000,000 
Repayments of borrowings under the credit facilities(41,000,000)(10,000,000)
Proceeds from secured borrowings15,771,906 10,000,000 
Repayments of secured borrowings(19,939,209)— 
Deferred financing costs paid— (805,202)
Net cash provided by (used in) financing activities(20,227,174)77,264,867 
Effect of exchange rate changes on foreign currency(290,290)(408,888)
Net increase (decrease) in cash and cash equivalents and restricted cash7,417,681 (7,250,962)
Cash and cash equivalents and restricted cash, beginning of period23,573,015 31,016,086 
Cash and cash equivalents and restricted cash, end of period$30,990,696 $23,765,124 
Supplemental information:
Cash paid for interest$4,749,104 $2,830,073 
Non-cash financing activities:
Accrued deferred financing costs$— $73,487 
Reconciliation to the Consolidated Statement of Assets and LiabilitiesJune 30, 2022September 30, 2021
Cash and cash equivalents$21,175,177 $19,255,047 
Restricted cash9,815,519 4,317,968 
Total cash and cash equivalents and restricted cash$30,990,696 $23,573,015 
See notes to Consolidated Financial Statements.



6

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(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 Term Loan, LIBOR+7.00% cash due 2/2/20238.33 %$527,084 $522,929 $558,106 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/2023— (12,807)7,309 (5)(8)(9)
510,122 565,415 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% PIK due 12/22/202211,447,137 11,420,464 11,475,755 (8)(10)
11,420,464 11,475,755 
Accupac, Inc.Personal Products
First Lien Term Loan, SOFR+5.50% cash due 1/16/20267.59 %4,479,233 4,432,903 4,468,035 (5)(8)
First Lien Delayed Draw Term Loan, SOFR+5.50% cash due 1/16/2026— — (2,141)(5)(8)(9)
First Lien Revolver, SOFR+5.50% cash due 1/16/20267.59 %25,492 19,586 24,065 (5)(8)(9)
4,452,489 4,489,959 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.12 %4,381,994 4,333,187 4,360,085 (5)(8)
First Lien Revolver, LIBOR+7.00% cash due 10/31/20259.08 %56,232 50,875 53,889 (5)(8)(9)
4,384,062 4,413,974 
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20258.50 %8,362,365 8,223,688 8,224,386 (5)(8)
8,223,688 8,224,386 
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 5,644,386 4,923,552 (5)(8)(10)
5,644,386 4,923,552 
AIP RD Buyer Corp.Distributors
Second Lien Term Loan, SOFR+7.75% cash due 12/23/20299.35 %$3,459,000 3,394,321 3,331,017 (5)(8)
3,460 Common Units in RD Holding LP324,727 310,881 (8)
3,719,048 3,641,898 
Alvogen Pharma US, Inc.Pharmaceuticals
First Lien Term Loan, LIBOR+5.25% cash due 12/31/20237.50 %4,889,596 4,708,121 4,319,959 (5)
4,708,121 4,319,959 
Alvotech Holdings S.A.Biotechnology
Tranche A Fixed Rate Bond 10.00% cash due 6/24/20253,109,198 3,515,170 3,565,356 (8)(10)
Tranche B Fixed Rate Bond 10.00% cash due 6/24/20252,909,948 3,296,570 3,336,873 (8)(10)
79,437 Common Shares in Alvotech SA722,763 652,178 (10)(11)
16,860 Seller Earn Out Shares in Alvotech SA60,045 41,813 (8)(10)(11)
7,594,548 7,596,220 
American Auto Auction Group, LLCConsumer Finance
Second Lien Term Loan, SOFR+8.75% cash due 1/2/202910.80 %2,288,000 2,244,785 2,219,360 (5)(8)
2,244,785 2,219,360 
American Tire Distributors, Inc.Distributors
First Lien Term Loan, LIBOR+6.25% cash due 10/20/20287.00 %5,993,978 5,919,053 5,682,291 (5)
5,919,053 5,682,291 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.92 %8,015,500 7,776,126 7,821,765 (5)(8)(10)
7,776,126 7,821,765 
Anastasia Parent, LLCPersonal Products
First Lien Term Loan, LIBOR+3.75% cash due 8/11/20256.00 %1,005,452 791,605 806,750 (5)
791,605 806,750 



7

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Ankura Consulting Group LLCResearch & Consulting Services
Second Lien Term Loan, LIBOR+8.00% cash due 3/19/20299.18 %$1,707,376 $1,681,765 $1,536,638 (5)(8)
1,681,765 1,536,638 
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+6.00% cash due 1/10/20257.25 %7,129,297 7,068,270 6,968,175 (5)(8)
First Lien Revolver, LIBOR+6.00% cash due 1/10/20257.25 %184,615 180,724 174,184 (5)(8)(9)
7,248,994 7,142,359 
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+7.00% cash due 7/14/20268.00 %1,052,732 1,176,661 1,100,579 (5)(8)(10)
First Lien Term Loan, SONIA+7.00% cash due 7/14/20268.19 %£9,987,149 12,501,398 12,128,893 (5)(8)(10)
13,678,059 13,229,472 
ASP-R-PAC Acquisition Co LLCPaper Packaging
First Lien Term Loan, LIBOR+6.00% cash due 12/29/20277.67 %$3,317,728 3,256,946 3,238,102 (5)(8)(10)
First Lien Revolver, LIBOR+6.00% cash due 12/29/2027— (7,254)(9,503)(5)(8)(9)(10)
3,249,692 3,228,599 
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.75% cash due 10/17/20239.00 %2,353,872 2,353,872 2,300,538 (5)(8)(9)
174,131 Class A Units82,713 60,946 (8)
100,285 Preferred Units, 6%110,285 130,136 (8)
7,621 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (8)
2,546,870 2,491,620 
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.92 %904,942 833,056 646,065 (5)
833,056 646,065 
Astra Acquisition Corp.Application Software
First Lien Term Loan, LIBOR+5.25% cash due 10/25/20286.92 %4,326,462 4,215,252 3,782,041 (5)
4,215,252 3,782,041 
athenahealth Group Inc.Health Care Technology
2,888 Shares of Series A Preferred Stock in Minerva Holdco, Inc., 10.75%2,830,529 2,658,288 (8)
2,830,529 2,658,288 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/20264,785,629 4,653,759 4,665,989 (8)(10)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (86,693)(156,053)(8)(9)(10)
First Lien Revenue Interest Financing Term Loan due 5/31/20312,348,000 2,334,697 2,334,697 (5)(8)(10)
97,205 Common Stock Warrants (exercise price $0.4955) expiration date 6/19/2027334,386 12,636 (8)(10)
7,236,149 6,857,269 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.63 %7,331,250 7,213,913 6,957,356 (5)(8)(10)
7,213,913 6,957,356 
The AveryReal Estate Operating Companies
First Lien Term Loan in T8 Urban Condo Owner, LLC, LIBOR+7.30% cash due 2/17/20239.09 %4,006,593 3,993,721 4,048,392 (5)(8)
Subordinated Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/202314.53 %967,734 964,812 975,527 (5)(8)
4,958,533 5,023,919 
BAART Programs, Inc.Health Care Services
First Lien Term Loan, LIBOR+5.00% cash due 6/11/20276.67 %1,277,325 1,265,445 1,258,165 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.60 %653,606 643,200 634,851 (5)(8)(9)
Second Lien Term Loan, LIBOR+8.50% cash due 6/11/202810.17 %1,754,000 1,727,690 1,727,690 (5)(8)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 6/11/202810.17 %868,095 829,767 827,955 (5)(8)(9)
4,466,102 4,448,661 



8

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Berner Food & Beverage, LLCSoft Drinks
First Lien Term Loan, LIBOR+6.50% cash due 7/30/20277.50 %$8,017,449 $7,898,660 $7,744,855 (5)(8)
First Lien Revolver, PRIME+5.50% cash due 7/30/202610.25 %478,698 468,017 455,511 (5)(8)(9)
8,366,677 8,200,366 
BioXcel Therapeutics, Inc.Pharmaceuticals
First Lien Term Loan, 10.25% cash due 4/19/20271,245,098 1,192,826 1,195,170 (8)(10)
First Lien Delayed Draw Term Loan, 10.25% cash due 4/19/2027— — — (8)(9)(10)
First Lien Revenue Interest Financing Delayed Draw Term Loan due 9/30/2032— — — (5)(8)(9)(10)
4,954 Common Stock Warrants (exercise price $20.04) expiration date 4/19/202929,278 28,188 (8)(10)
1,222,104 1,223,358 
Blumenthal Temecula, LLCAutomotive Retail
First Lien Term Loan, 9.00% cash due 9/24/20231,277,827 1,277,827 1,271,438 (8)
415,294 Preferred Units in Unstoppable Automotive AMV, LLC415,294 411,141 (8)
95,837 Preferred Units in Unstoppable Automotive VMV, LLC95,837 94,879 (8)
95,837 Common Units in Unstoppable Automotive AMV, LLC95,837 119,796 (8)
1,884,795 1,897,254 
Cadence Aerospace, LLCAerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash 2.00% PIK due 11/14/20237.74 %3,180,774 3,151,234 2,921,223 (5)(8)
3,151,234 2,921,223 
CCO Holdings LLCCable & Satellite
Fixed Rate Bond, 4.50% cash due 5/1/2032400,000 334,649 325,234 (10)
334,649 325,234 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.67 %639,982 629,763 633,115 (5)
629,763 633,115 
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.92 %5,622,640 5,566,413 5,589,269 (5)
5,566,413 5,589,269 
Clear Channel Outdoor Holdings, Inc.Advertising
Fixed Rate Bond, 5.125% cash due 8/15/2027250,000 218,089 211,744 (10)
218,089 211,744 
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+8.50% cash due 1/28/202510.17 %8,198,818 8,198,818 6,972,274 (5)(8)
Common Stock Warrants expiration date 7/28/2025— 171,409 (8)
8,198,818 7,143,683 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20266.67 %5,745,005 5,626,217 4,940,733 (5)
5,626,217 4,940,733 
CorEvitas, LLCHealth Care Technology
First Lien Term Loan, SOFR+5.75% cash due 12/13/20257.38 %5,018,968 4,960,891 4,971,790 (5)(8)
First Lien Revolver, PRIME+4.75% cash due 12/13/20259.50 %111,500 104,765 105,211 (5)(8)(9)
401 Class A2 Common Units in CorEvitas Group Holdings, L.P.251,644 853,635 (8)
5,317,300 5,930,636 
CPC Acquisition Corp.Specialty Chemicals
Second Lien Term Loan, LIBOR+7.75% cash due 12/29/202810.00 %727,000 716,095 648,848 (5)(8)
716,095 648,848 



9

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Dialyze Holdings, LLCHealth Care Equipment
First Lien Term Loan, LIBOR+9.00% cash 2.00% PIK due 8/4/202611.25 %$4,462,078 $4,204,743 $4,159,995 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+9.00% cash 2.00% PIK due 8/4/2026— (26,434)(32,231)(5)(8)(9)
993,431 Class A Warrants (exercise price $1.00) expiration date 8/4/2028258,292 248,358 (8)
4,436,601 4,376,122 
Digital.AI Software Holdings, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 2/10/20278.40 %2,617,831 2,557,433 2,559,191 (5)(8)
First Lien Revolver, LIBOR+6.50% cash due 2/10/20277.90 %66,274 59,721 57,185 (5)(8)(9)
2,617,154 2,616,376 
DirecTV Financing, LLCCable & Satellite
First Lien Term Loan, LIBOR+5.00% cash due 8/2/20276.67 %8,392,500 8,308,575 7,750,851 (5)
8,308,575 7,750,851 
FINThrive Software Intermediate Holdings, Inc.Health Care Technology
Second Lien Term Loan, LIBOR+6.75% cash due 12/17/20298.42 %6,013,000 5,922,805 5,381,635 (5)
5,922,805 5,381,635 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/20252,452,500 2,358,180 2,360,531 (8)(10)(12)
85,811 Common Stock Warrants (exercise price $3.20) expiration date 8/27/203090,960 14,588 (8)(10)
2,449,140 2,375,119 
Gibson Brands, Inc.Leisure Products
First Lien Term Loan, LIBOR+5.00% cash due 8/11/20286.41 %2,487,500 2,467,600 2,126,813 (5)(8)
2,467,600 2,126,813 
Global Medical Response, Inc.Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.92 %1,059,480 1,048,752 988,521 (5)
First Lien Term Loan, LIBOR+4.25% cash due 10/2/20255.25 %3,716,701 3,666,879 3,466,994 (5)
4,715,631 4,455,515 
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise Lines
First Lien Term Loan, SOFR+8.00% cash due 6/21/20279.45 %3,309,767 3,243,934 3,243,572 (5)(8)
First Lien Delayed Draw Term Loan, SOFR+8.00% cash due 6/21/2027— (13,167)(13,239)(5)(8)(9)
First Lien Revolver, SOFR+8.00% cash due 6/21/2027— (6,583)(6,620)(5)(8)(9)
3,224,184 3,223,713 
Harbor Purchaser Inc.Education Services
First Lien Term Loan, SOFR+5.25% cash due 4/9/20296.88 %5,100,000 4,909,797 4,637,838 (5)
4,909,797 4,637,838 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.72 %2,517,618 2,495,334 2,509,058 (5)(8)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.72 %88,235 87,409 87,935 (5)(8)
2,582,743 2,596,993 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20258.00 %2,324,886 2,296,951 2,278,388 (5)(8)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/202510.25 %6,066,854 5,996,753 5,960,684 (5)(8)
8,293,704 8,239,072 
Impel Neuropharma, Inc.Health Care Technology
First Lien Revenue Interest Financing Term Loan due 2/15/2031948,500 948,500 948,500 (5)(8)
First Lien Term Loan, SOFR+8.75% cash due 3/17/202710.95 %948,500 930,631 931,427 (5)(8)
1,879,131 1,879,927 



10

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Indivior Finance S.À.R.L.Pharmaceuticals
First Lien Term Loan, LIBOR+5.25% cash due 6/30/20267.57 %$1,980,000 $1,947,701 $1,933,807 (5)(8)(10)
1,947,701 1,933,807 
Innocoll Pharmaceuticals LimitedHealth Care Technology
First Lien Term Loan, 11.00% cash due 1/26/20271,635,588 1,568,674 1,533,364 (8)(10)
First Lien Delayed Draw Term Loan, 11.00% cash due 1/26/2027— — — (8)(9)(10)
13,676 Tranche A Warrant Shares (exercise price $4.23) expiration date 1/26/202932,275 30,087 (8)(10)
1,600,949 1,563,451 
Inventus Power, Inc.Electrical Components & Equipment
First Lien Term Loan, SOFR+5.00% cash due 3/29/20247.32 %4,525,713 4,499,409 4,378,627 (5)(8)
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/202410.75 %2,750,000 2,714,723 2,633,125 (5)(8)
7,214,132 7,011,752 
INW Manufacturing, LLCPersonal Products
First Lien Term Loan, LIBOR+5.75% cash due 3/25/20278.00 %11,550,000 11,269,423 10,914,750 (5)(8)
11,269,423 10,914,750 
IPC Corp.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 10/1/20267.50 %6,229,786 6,086,118 6,023,580 (5)(8)
6,086,118 6,023,580 
Itafos Inc.Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+8.25% cash due 8/25/20249.82 %4,114,683 3,996,649 3,971,081 (5)(8)
3,996,649 3,971,081 
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.85 %3,692,000 3,673,540 3,390,493 (5)
3,673,540 3,390,493 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20279.17 %9,437,325 9,227,953 9,459,372 (5)(8)
Second Lien Term Loan, LIBOR+8.00% cash due 6/18/202710.03 %137,300 123,570 125,424 (5)
9,351,523 9,584,796 
Kings Buyer, LLCEnvironmental & Facilities Services
First Lien Term Loan, LIBOR+6.50% cash due 10/29/20278.75 %3,277,071 3,244,301 3,195,145 (5)(8)
First Lien Revolver, LIBOR+6.50% cash due 10/29/20278.75 %158,090 153,611 146,892 (5)(8)(9)
3,397,912 3,342,037 
LaserShip, Inc.Air Freight & Logistics
Second Lien Term Loan, LIBOR+7.50% cash due 5/7/202910.38 %1,150,000 1,138,500 1,089,625 (5)(8)
1,138,500 1,089,625 
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20267.25 %8,730,000 8,657,515 8,511,750 (5)(8)
8,657,515 8,511,750 
Liquid Environmental Solutions CorporationEnvironmental & Facilities Services
Second Lien Term Loan, LIBOR+8.50% cash due 11/30/202610.17 %1,046,111 1,027,760 1,014,728 (5)(8)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 11/30/202610.17 %278,963 273,384 253,856 (5)(8)(9)
1,301,144 1,268,584 
LSL Holdco, LLCHealth Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 1/31/20287.67 %4,615,633 4,529,682 4,477,164 (5)(8)
First Lien Revolver, LIBOR+6.00% cash due 1/31/20287.67 %205,139 195,589 189,754 (5)(8)(9)
4,725,271 4,666,918 
Marinus Pharmaceuticals, Inc.Pharmaceuticals
First Lien Term Loan, 11.50% cash due 5/11/20264,216,200 4,151,087 4,058,093 (8)(10)
First Lien Delayed Draw Term Loan, 11.50% cash due 5/11/2026— — — (8)(9)(10)
4,151,087 4,058,093 



11

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Mesoblast, Inc.Biotechnology
First Lien Term Loan, 8.00% cash 1.75% PIK due 11/19/2026$1,723,588 $1,579,307 $1,525,375 (8)(10)
First Lien Delayed Draw Term Loan, 8.00% cash 1.75% PIK due 11/19/2026— 323 341 (8)(9)(10)
50,289 Warrant Shares (exercise price $7.26) expiration date 11/19/2028115,162 33,191 (8)(10)
1,694,792 1,558,907 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+6.00% cash due 7/21/20277.29 %4,609,168 4,532,323 4,494,860 (5)(8)
First Lien Revolver, LIBOR+6.00% cash due 7/21/2027— (6,018)(8,857)(5)(8)(9)
4,526,305 4,486,003 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.38 %8,664,181 8,582,205 8,499,561 (5)(8)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (6,670)(14,476)(5)(8)(9)
8,575,535 8,485,085 
Mosaic Companies, LLCHome Improvement Retail
First Lien Term Loan, LIBOR+6.75% cash due 7/2/20268.36 %11,450,063 11,266,711 11,232,511 (5)(8)
11,266,711 11,232,511 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20267.75 %7,208,857 7,163,409 7,064,680 (5)(8)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (4,612)(9,224)(5)(8)(9)
7,158,797 7,055,456 
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/202610.75 %7,779,000 7,662,333 7,390,050 (5)(8)
7,662,333 7,390,050 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.75 %14,129,954 13,794,224 13,722,249 (5)(8)
13,794,224 13,722,249 
NN, Inc.Industrial Machinery
First Lien Term Loan, LIBOR+6.88% cash due 9/19/20268.54 %14,691,038 14,409,459 14,176,851 (5)(8)(10)
14,409,459 14,176,851 
OEConnection LLCApplication Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.67 %6,279,551 6,250,789 5,855,682 (5)
Second Lien Term Loan, LIBOR+7.00% cash due 9/25/20278.60 %1,804,000 1,771,275 1,731,840 (5)(8)
8,022,064 7,587,522 
OTG Management, LLCAirport Services
First Lien Term Loan, LIBOR+2.00% cash 8.00% PIK due 9/1/20254.63 %3,403,395 3,352,580 3,335,327 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+2.00% cash 8.00% PIK due 9/1/2025— (4,839)(6,104)(5)(8)(9)
3,347,741 3,329,223 
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, SOFR+5.00% cash due 11/10/20276.63 %4,937,500 4,785,851 4,760,565 (5)
4,785,851 4,760,565 
Performance Health Holdings, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 7/12/20278.88 %4,398,925 4,325,161 4,291,591 (5)(8)
4,325,161 4,291,591 
PFNY Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+7.00% cash due 12/31/20268.00 %6,291,262 6,178,657 6,165,437 (5)(8)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/31/20269.25 %534,596 523,845 522,583 (5)(8)(9)
First Lien Revolver, LIBOR+7.00% cash due 12/31/2026— (5,376)(6,007)(5)(8)(9)
6,697,126 6,682,013 



12

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.92 %$9,872,000 $9,723,920 $9,477,120 (5)(8)
9,723,920 9,477,120 
PLNTF Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+8.00% cash due 3/22/202610.10 %686,139 675,873 665,555 (5)(8)
675,873 665,555 
Pluralsight, LLCApplication Software
First Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %15,361,250 15,115,202 14,931,135 (5)(8)
First Lien Revolver, LIBOR+8.00% cash due 4/6/2027— (16,803)(29,622)(5)(8)(9)
15,098,399 14,901,513 
PRGX Global, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+6.75% cash due 3/3/20268.95 %8,194,427 8,074,069 8,034,636 (5)(8)
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026— (8,951)(11,883)(5)(8)(9)
19,485 Class B Common Units19,485 21,502 (8)
8,084,603 8,044,255 
Profrac Holdings II, LLCIndustrial Machinery
First Lien Term Loan, SOFR+8.50% cash due 3/4/202510.01 %4,944,977 4,812,735 4,846,077 (5)(8)
4,812,735 4,846,077 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/20279.67 %1,500,000 1,500,000 1,451,250 (5)(8)
1,500,000 1,451,250 
Quantum Bidco LimitedFood Distributors
First Lien Term Loan, SONIA+6.00% cash due 1/29/20287.31 %£1,125,000 1,491,941 1,137,408 (5)(8)(10)
1,491,941 1,137,408 
Radiology Partners, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+4.25% cash due 7/9/20255.89 %$2,100,000 1,975,875 1,893,675 (5)
1,975,875 1,893,675 
Relativity ODA LLCApplication Software
First Lien Term Loan, LIBOR+7.50% PIK due 5/12/20275,900,803 5,790,624 5,759,184 (5)(8)
First Lien Revolver, LIBOR+6.50% cash due 5/12/2027— (11,018)(13,049)(5)(8)(9)
5,779,606 5,746,135 
Renaissance Holding Corp.Diversified Banks
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/20268.67 %1,138,000 1,129,465 1,063,558 (5)
1,129,465 1,063,558 
RP Escrow Issuer LLCHealth Care Distributors
Fixed Rate Bond, 5.25% cash due 12/15/2025306,000 279,653 264,950 
279,653 264,950 
RumbleOn, Inc.Automotive Retail
First Lien Term Loan, LIBOR+8.25% cash due 8/31/20269.25 %9,123,542 8,638,460 8,766,812 (5)(8)(10)
First Lien Delayed Draw Term Loan, LIBOR+8.25% cash due 8/31/20269.25 %2,760,290 2,551,565 2,606,793 (5)(8)(9)(10)
39,794 Class B Common Stock Warrants (exercise price $33.00) expiration date 2/28/2023290,496 18,703 (8)(10)
11,480,521 11,392,308 
Sabert CorporationMetal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/20266.19 %2,590,677 2,564,770 2,467,619 (5)
2,564,770 2,467,619 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/2026444,040 399,929 437,379 (8)
399,929 437,379 



13

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
SiO2 Medical Products, Inc.Metal & Glass Containers
First Lien Term Loan, 5.50% cash 8.50% PIK due 12/21/2026$6,545,193 $6,430,125 $6,428,034 (8)(12)
Common Stock Warrants (exercise price $0.75) expiration date 7/31/2028123,557 123,557 (8)
6,553,682 6,551,591 
SM Wellness Holdings, Inc.Health Care Services
Second Lien Term Loan, LIBOR+8.00% cash due 4/16/20299.04 %2,925,000 2,881,125 2,866,500 (5)(8)
2,881,125 2,866,500 
Sorenson Communications, LLCCommunications Equipment
First Lien Term Loan, LIBOR+5.50% cash due 3/17/20267.75 %4,371,500 4,327,785 4,286,802 (5)
4,327,785 4,286,802 
Sorrento Therapeutics, Inc.Biotechnology
16,000 Common Stock Units63,040 32,160 (10)
63,040 32,160 
SPX Flow, Inc.Industrial Machinery
First Lien Term Loan, SOFR+4.50% cash due 4/5/20296.13 %1,490,683 1,420,360 1,393,043 (5)
1,420,360 1,393,043 
SumUp Holdings Luxembourg S.À.R.L.Other Diversified Financial Services
First Lien Term Loan, EURIBOR+8.50% cash due 3/10/202610.00 %6,820,000 7,959,220 6,931,043 (5)(8)(10)
7,959,220 6,931,043 
Sunland Asphalt & Construction, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.00% cash due 1/13/20268.88 %$11,632,389 11,467,695 11,376,476 (5)(8)
11,467,695 11,376,476 
Supermoose Borrower, LLCApplication Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20256.00 %2,872,535 2,663,364 2,608,176 (5)
2,663,364 2,608,176 
SVP-Singer Holdings Inc.Home Furnishings
First Lien Term Loan, LIBOR+6.75% cash due 7/28/20289.00 %5,033,960 4,726,358 4,546,320 (5)(8)
4,726,358 4,546,320 
Tacala, LLCRestaurants
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/20289.17 %3,394,977 3,353,116 3,185,626 (5)
3,353,116 3,185,626 
Tahoe Bidco B.V.Application Software
First Lien Term Loan, LIBOR+6.00% cash due 9/29/20287.12 %5,611,000 5,510,495 5,521,224 (5)(8)(10)
First Lien Revolver, LIBOR+6.00% cash due 10/1/2027— (7,391)(7,154)(5)(8)(9)(10)
5,503,104 5,514,070 
Tecta America Corp.Construction & Engineering
Second Lien Term Loan, LIBOR+8.50% cash due 4/9/202910.17 %1,671,000 1,645,935 1,637,580 (5)(8)
1,645,935 1,637,580 
Telestream Holdings CorporationApplication Software
First Lien Term Loan, SOFR+9.25% cash due 10/15/202510.59 %5,235,275 5,170,202 5,125,334 (5)(8)
First Lien Revolver, SOFR+9.25% cash due 10/15/202510.59 %200,400 193,726 189,879 (5)(8)(9)
5,363,928 5,315,213 



14

Oaktree Strategic Income II, Inc.
Consolidated Schedule of Investments
June 30, 2022
(unaudited)






Portfolio Company/Type of Investment (1)(2)(3)(4) Cash Interest Rate (5)IndustryPrincipal (6)CostFair ValueNotes
TerSera Therapeutics LLCPharmaceuticals
Second Lien Term Loan, LIBOR+10.00% cash due 3/30/202612.25 %$6,100,000 $5,976,617 $6,034,730 (5)(8)
5,976,617 6,034,730 
Thrasio, LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+7.00% cash due 12/18/20269.25 %9,722,338 9,537,133 9,382,056 (5)(8)