Document
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
 
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2020
OR
 
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
 
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
COMMISSION FILE NUMBER: 1-33901
Oaktree Specialty Lending Corporation

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


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
 
 
 
 
 
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange
on Which Registered
Common Stock, par value $0.01 per share
 
OCSL
 
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  ¨
 
Accelerated filer  þ
 
Non-accelerated filer  ¨
 
Smaller reporting company  ¨
 
 
 
 
 
 
 
Emerging growth company  ¨

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    YES  ¨     NO  þ
The registrant had 140,960,651 shares of common stock outstanding as of May 5, 2020.




OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2020



TABLE OF CONTENTS


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 3.
Item 4.
Item 5.

 




 






 




 



PART I — FINANCIAL INFORMATION

Item 1.
Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
 
 
March 31, 2020 (unaudited)
 
September 30, 2019
ASSETS
Investments at fair value:
 
 
 
 
Control investments (cost March 31, 2020: $255,739; cost September 30, 2019: $224,255)
 
$
187,267

 
$
209,178

Affiliate investments (cost March 31, 2020: $10,487; cost September 30, 2019: $8,449)
 
9,414

 
9,170

Non-control/Non-affiliate investments (cost March 31, 2020: $1,362,354; cost September 30, 2019: $1,280,310)
 
1,195,506

 
1,219,694

Total investments at fair value (cost March 31, 2020: $1,628,580; cost September 30, 2019: $1,513,014)
 
1,392,187

 
1,438,042

Cash and cash equivalents
 
89,509

 
15,406

Interest, dividends and fees receivable
 
6,217

 
11,167

Due from portfolio companies
 
1,774

 
2,616

Receivables from unsettled transactions
 
1,868

 
4,586

Deferred financing costs
 
5,671

 
6,396

Deferred offering costs
 
45

 

Deferred tax asset, net
 
821

 

Derivative assets at fair value
 
1,268

 
490

Other assets
 
2,267

 
2,335

Total assets
 
$
1,501,627

 
$
1,481,038

LIABILITIES AND NET ASSETS
Liabilities:
 

 
 
Accounts payable, accrued expenses and other liabilities
 
$
1,750

 
$
1,589

Base management fee and incentive fee payable
 
8,739

 
10,167

Due to affiliate
 
2,651

 
2,689

Interest payable
 
1,681

 
2,296

Payables from unsettled transactions
 
35,896

 
59,596

Deferred tax liability
 

 
704

Credit facility payable
 
404,825

 
314,825

Unsecured notes payable (net of $3,645 and $2,708 of unamortized financing costs as of March 31, 2020 and September 30, 2019, respectively)
 
293,861

 
158,542

Total liabilities
 
749,403

 
550,408

Commitments and contingencies (Note 14)
 

 
 
Net assets:
 
 
 
 
Common stock, $0.01 par value per share, 250,000 shares authorized; 140,961 shares issued and outstanding as of March 31, 2020 and September 30, 2019
 
1,409

 
1,409

Additional paid-in-capital
 
1,487,774

 
1,487,774

Accumulated overdistributed earnings
 
(736,959
)
 
(558,553
)
Total net assets (equivalent to $5.34 and $6.60 per common share as of March 31, 2020 and September 30, 2019, respectively) (Note 12)
 
752,224

 
930,630

Total liabilities and net assets
 
$
1,501,627

 
$
1,481,038


See notes to Consolidated Financial Statements.

1


Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 
 
Three months ended
March 31, 2020
 
Three months ended
March 31, 2019
 
Six months ended March 31, 2020
 
Six months ended
March 31, 2019
Interest income:
 
 
 
 
 
 
 
 
Control investments
 
$
2,393

 
$
2,852

 
$
4,944

 
$
6,191

Affiliate investments
 
138

 
22

 
252

 
35

Non-control/Non-affiliate investments
 
27,149

 
31,231

 
52,808

 
63,398

Interest on cash and cash equivalents
 
218

 
204

 
299

 
474

Total interest income
 
29,898

 
34,309

 
58,303

 
70,098

PIK interest income:
 
 
 
 
 
 
 
 
Control investments
 

 

 

 
67

Non-control/Non-affiliate investments
 
1,946

 
2,280

 
3,107

 
3,045

Total PIK interest income
 
1,946

 
2,280

 
3,107

 
3,112

Fee income:
 
 
 
 
 
 
 
 
Control investments
 
8

 
7

 
14

 
13

Affiliate investments
 
5

 
5

 
10

 
9

Non-control/Non-affiliate investments
 
2,037

 
1,120

 
3,097

 
2,312

Total fee income
 
2,050

 
1,132

 
3,121

 
2,334

Dividend income:
 
 
 
 
 
 
 
 
Control investments
 
277

 
523

 
600

 
976

Total dividend income
 
277

 
523

 
600

 
976

Total investment income
 
34,171

 
38,244

 
65,131

 
76,520

Expenses:
 
 
 
 
 
 
 
 
Base management fee
 
5,295

 
5,731

 
10,902

 
11,299

Part I incentive fee
 
3,444

 
3,813

 
6,432

 
7,541

Part II incentive fee
 
(6,608
)
 
8,170

 
(5,557
)
 
9,990

Professional fees
 
669

 
499

 
1,309

 
1,465

Directors fees
 
142

 
142

 
285

 
285

Interest expense
 
7,215

 
8,970

 
13,750

 
17,874

Administrator expense
 
393

 
406

 
821

 
1,169

General and administrative expenses
 
780

 
705

 
1,312

 
1,336

Total expenses
 
11,330

 
28,436

 
29,254

 
50,959

Reversal of fees waived / (fees waived)
 

 
(7,901
)
 
5,200

 
(9,465
)
Net expenses
 
11,330

 
20,535

 
34,454

 
41,494

Net investment income
 
22,841

 
17,709

 
30,677

 
35,026

Unrealized appreciation (depreciation):
 
 
 
 
 
 
 
 
Control investments
 
(55,392
)
 
3,868

 
(53,395
)
 
(1,952
)
Affiliate investments
 
(1,730
)
 
(181
)
 
(1,794
)
 
(181
)
Non-control/Non-affiliate investments
 
(108,651
)
 
17,108

 
(106,243
)
 
16,324

Secured borrowings
 

 
(76
)
 

 
(95
)
Foreign currency forward contracts
 
2,240

 
753

 
778

 
401

Net unrealized appreciation (depreciation)
 
(163,533
)
 
21,472

 
(160,654
)
 
14,497

Realized gains (losses):
 
 
 
 
 
 
 
 
Control investments
 
777

 

 
777

 

Non-control/Non-affiliate investments
 
(24,777
)
 
25,899

 
(20,938
)
 
42,660

Extinguishment of unsecured notes payable
 
(2,541
)
 

 
(2,541
)
 

Foreign currency forward contracts
 
61

 
(686
)
 
(490
)
 
515

Net realized gains (losses)
 
(26,480
)
 
25,213

 
(23,192
)
 
43,175

Provision for income tax (expense) benefit
 
1,705

 
91

 
1,545

 
(495
)
Net realized and unrealized gains (losses), net of taxes
 
(188,308
)
 
46,776

 
(182,301
)
 
57,177

Net increase (decrease) in net assets resulting from operations
 
$
(165,467
)
 
$
64,485

 
$
(151,624
)
 
$
92,203

Net investment income per common share — basic and diluted
 
$
0.16

 
$
0.13

 
$
0.22

 
$
0.25

Earnings (loss) per common share — basic and diluted (Note 5)
 
$
(1.17
)
 
$
0.46

 
$
(1.08
)
 
$
0.65

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

 
140,961

 
140,961

 
140,961


See notes to Consolidated Financial Statements.

2



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

 
 
Three months ended
March 31, 2020
 
Three months ended
March 31, 2019
 
Six months ended
March 31, 2020
 
Six months ended
March 31, 2019
Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
22,841

 
$
17,709

 
$
30,677

 
$
35,026

Net unrealized appreciation (depreciation)
 
(163,533
)
 
21,472

 
(160,654
)
 
14,497

Net realized gains (losses)
 
(26,480
)
 
25,213

 
(23,192
)
 
43,175

Provision for income tax (expense) benefit

 
1,705

 
91

 
1,545

 
(495
)
Net increase (decrease) in net assets resulting from operations
 
(165,467
)
 
64,485

 
(151,624
)
 
92,203

Stockholder transactions:
 
 
 
 
 
 
 
 
Distributions to stockholders
 
(13,391
)
 
(13,391
)
 
(26,782
)
 
(26,782
)
Net increase (decrease) in net assets from stockholder transactions
 
(13,391
)
 
(13,391
)
 
(26,782
)
 
(26,782
)
Capital share transactions:
 
 
 
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
 
506

 
312

 
987

 
696

Repurchases of common stock under dividend reinvestment plan
 
(506
)
 
(312
)
 
(987
)
 
(696
)
Net increase (decrease) in net assets from capital share transactions
 

 

 

 

Total increase (decrease) in net assets
 
(178,858
)
 
51,094

 
(178,406
)
 
65,421

Net assets at beginning of period
 
931,082

 
872,362

 
930,630

 
858,035

Net assets at end of period
 
$
752,224

 
$
923,456

 
$
752,224

 
$
923,456

Net asset value per common share
 
$
5.34

 
$
6.55

 
$
5.34

 
$
6.55

Common shares outstanding at end of period
 
140,961

 
140,961

 
140,961

 
140,961




See notes to Consolidated Financial Statements.

3

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





 
 
Six months ended
March 31, 2020
 
Six months ended
March 31, 2019
Operating activities:
 
 
 
 
Net increase (decrease) in net assets resulting from operations
 
$
(151,624
)
 
$
92,203

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
 
Net unrealized (appreciation) depreciation
 
160,654

 
(14,497
)
Net realized (gains) losses
 
23,192

 
(43,175
)
PIK interest income
 
(3,107
)
 
(3,112
)
Accretion of original issue discount on investments
 
(5,454
)
 
(13,224
)
Accretion of original issue discount on unsecured notes payable
 
48

 
107

Amortization of deferred financing costs
 
968

 
1,545

Deferred taxes
 
(1,525
)
 
291

Purchases of investments
 
(379,169
)
 
(270,266
)
Proceeds from the sales and repayments of investments
 
251,499

 
329,035

Changes in operating assets and liabilities:
 
 
 
 
(Increase) decrease in interest, dividends and fees receivable
 
4,950

 
1,575

(Increase) decrease in due from portfolio companies
 
842

 
(50
)
(Increase) decrease in receivables from unsettled transactions
 
2,718

 
24,942

(Increase) decrease in other assets
 
68

 
189

Increase (decrease) in accounts payable, accrued expenses and other liabilities
 
163

 
(2,076
)
Increase (decrease) in base management fee and incentive fee payable
 
(1,428
)
 
699

Increase (decrease) in due to affiliate
 
(38
)
 
(1,334
)
Increase (decrease) in interest payable
 
(615
)
 
(1,248
)
Increase (decrease) in payables from unsettled transactions
 
(23,700
)
 
(27,336
)
Increase (decrease) in amounts payable to syndication partners
 

 
477

Net cash provided by (used in) operating activities
 
(121,558
)
 
74,745

Financing activities:
 
 
 
 
Distributions paid in cash
 
(25,795
)
 
(26,086
)
Borrowings under credit facilities
 
224,000

 
228,825

Repayments of borrowings under credit facilities
 
(134,000
)
 
(45,000
)
Repayments of unsecured notes
 
(161,250
)
 
(228,825
)
Issuance of unsecured notes
 
297,459

 

Repayments of secured borrowings
 

 
(692
)
Repurchases of common stock under dividend reinvestment plan
 
(987
)
 
(696
)
Deferred financing costs paid
 
(3,715
)
 
(2,608
)
Deferred offering costs paid
 
(45
)
 

Net cash provided by (used in) financing activities
 
195,667

 
(75,082
)
Effect of exchange rate changes on foreign currency
 
(6
)
 

Net increase (decrease) in cash and cash equivalents and restricted cash
 
74,103

 
(337
)
Cash and cash equivalents and restricted cash, beginning of period
 
15,406

 
13,489

Cash and cash equivalents and restricted cash, end of period
 
$
89,509

 
$
13,152

Supplemental information:
 
 
 
 
Cash paid for interest
 
$
13,349

 
$
17,472

Non-cash financing activities:
 
 
 
 
Issuance of shares of common stock under dividend reinvestment plan
 
$
987

 
$
696


See notes to Consolidated Financial Statements.

4

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2020
(dollar amounts in thousands)
(unaudited)


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

 
Cost
 
Fair Value
 
Notes
Control Investments
 
 
 
 
 
 
 
 
(8)(9)
C5 Technology Holdings, LLC
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
829 Common Units
 
 
 
 
$

 
$

 
(20)
34,984,460.37 Preferred Units
 
 
 
 
34,984

 
27,638

 
(20)
 
 
 
 
 
34,984

 
27,638

 
 
Dominion Diagnostics, LLC
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 2/28/2024
6.46
%
 
$
27,799

 
27,799

 
27,799

 
(6)(20)
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024
6.46
%
 
5,260

 
5,260

 
5,260

 
(6)(19)(20)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC
 
 
 
 
18,626

 
10,115

 
(20)
 
 
 
 
 
51,685

 
43,174

 
 
First Star Speir Aviation Limited
 
Airlines
 
 
 
 
 
 
(10)
First Lien Term Loan, 9.00% cash due 12/15/2020
 
 
11,510

 
2,097

 
11,510

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

 
3,165

 
(11)(12)(20)
 
 
 
 
 
10,597

 
14,675

 
 
New IPT, Inc.
 
Oil & Gas Equipment & Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021
6.45
%
 
2,605

 
2,605

 
2,605

 
 (6)(20)
First Lien Revolver, LIBOR+5.00% cash due 3/17/2021
6.45
%
 
1,009

 
1,009

 
1,009

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

 
1,596

 
(20)
 
 
 
 
 
3,614

 
5,210

 
 
Senior Loan Fund JV I, LLC
 
Multi-Sector Holdings
 
 
 
 
 
 
(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/2028
8.73
%
 
96,250

 
96,250

 
92,171

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

 

 
(11)(16)(19)
 
 
 
 
 
145,572

 
92,171

 
 
Thruline Marketing, Inc.
 
Advertising
 
 
 
 
 
 

9,073 Class A Units in FS AVI Holdco, LLC
 
 
 
 
9,287

 
4,399

 
(20)
 
 
 
 
 
9,287

 
4,399

 
 
 Total Control Investments (24.9% of net assets)
 
 
 
 
$
255,739

 
$
187,267

 
 
 
 
 
 
 
 
 
 
 
 
 Affiliate Investments
 
 
 
 
 
 
 
 
(17)
Assembled Brands Capital LLC
 
Specialized Finance
 
 
 
 
 
 
 
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/2023
6.99
%
 
$
7,623

 
$
7,623

 
$
6,115

 
(6)(19)(20)
1,609,201 Class A Units
 
 
 
 
765

 
917

 
(20)
1,019,168.80 Preferred Units, 6%
 
 
 
 
1,019

 
1,050

 
(20)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029
 
 
 
 

 

 
(20)
 
 
 
 
 
9,407

 
8,082

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

 
1,332

 
(20)
 
 
 
 
 
1,080

 
1,332

 
 
 Total Affiliate Investments (1.3% of net assets)
 
 
 
 
$
10,487

 
$
9,414

 
 
 
 
 
 
 
 
 
 
 
 
 Non-Control/Non-Affiliate Investments
 
 
 
 
 
 
 
 
(18)
4 Over International, LLC
 
Commercial Printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022
7.45
%
 
$
5,738

 
$
5,710

 
$
5,528

 
(6)(20)
First Lien Revolver, LIBOR+6.00% cash due 6/7/2021
7.45
%
 
2,232

 
2,214

 
2,150

 
(6)(20)
 
 
 
 
 
7,924

 
7,678

 
 
99 Cents Only Stores LLC
 
General Merchandise Stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022
6.07
%
 
19,380

 
19,085

 
13,889

 
(6)
 
 
 
 
 
19,085

 
13,889

 
 

5

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2020
(dollar amounts in thousands)
(unaudited)


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

 
Cost
 
Fair Value
 
Notes
Access CIG, LLC
 
Diversified Support Services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026
9.53
%
 
$
15,000

 
$
14,900

 
$
12,863

 
(6)
 
 
 
 
 
14,900

 
12,863

 
 
Accupac, Inc.
 
Personal Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026
7.84
%
 
12,550

 
12,338

 
12,330

 
(6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026
 
 

 
(39
)
 
(41
)
 
(6)(19)(20)
First Lien Revolver, LIBOR+6.00% cash due 1/17/2026
7.05
%
 
1,564

 
1,537

 
1,536

 
(6)(20)
 
 
 
 
 
13,836

 
13,825

 
 
Acquia Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 10/31/2025
8.58
%
 
20,950

 
20,559

 
19,961

 
(6)(20)
First Lien Revolver, LIBOR+7.00% cash due 10/31/2025
 
 

 
(43
)
 
(106
)
 
(6)(19)(20)
 
 
 
 
 
20,516

 
19,855

 
 
Aden & Anais Merger Sub, Inc.
 
Apparel, Accessories & Luxury Goods
 
 
 
 
 
 
 
51,645 Common Units in Aden & Anais Holdings, Inc.
 
 
 
 
5,165

 

 
(20)
 
 
 
 
 
5,165

 

 
 
AdVenture Interactive, Corp.
 
Advertising
 
 
 
 
 
 
 
9,073 shares of common stock
 
 
 
 
13,611

 
12,845

 
(20)
 
 
 
 
 
13,611

 
12,845

 
 
AI Ladder (Luxembourg) Subco S.a.r.l.
 
Electrical Components & Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025
5.49
%
 
21,563

 
21,072

 
18,185

 
(6)(11)
 
 
 
 
 
21,072

 
18,185

 
 
AI Sirona (Luxembourg) Acquisition S.a.r.l.
 
Pharmaceuticals
 
 
 
 
 
 
 
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/2026
7.25
%
 
17,500

 
20,035

 
14,977

 
(6)(11)(20)
 
 
 
 
 
20,035

 
14,977

 
 
AirStrip Technologies, Inc.
 
Application Software
 
 
 
 
 
 
 
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/2025
 
 
 
 
90

 

 
(20)
 
 
 
 
 
90

 

 
 
Aldevron, L.L.C.
 
Biotechnology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026
5.70
%
 
$
8,000

 
7,920

 
7,560

 
(6)
 
 
 
 
 
7,920

 
7,560

 
 
Algeco Scotsman Global Finance Plc
 
Construction & Engineering
 
 
 
 
 
 
 
Fixed Rate Bond, 8.00% cash due 2/15/2023
 
 
13,524

 
13,232

 
10,447

 
(11)
 
 
 
 
 
13,232

 
10,447

 
 
Altice France S.A.
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026
4.70
%
 
1,378

 
1,202

 
1,319

 
(6)(11)
 
 
 
 
 
1,202

 
1,319

 
 
Alvotech Holdings S.A.
 
Biotechnology
 
 
 
 
 
 
(13)
Fixed Rate Bond 15% PIK Note A due 12/13/2023
 
 
14,800

 
17,538

 
18,425

 
(11)(20)
Fixed Rate Bond 15% PIK Note B due 12/13/2023
 
 
14,800

 
17,538

 
17,997

 
(11)(20)
 
 
 
 
 
35,076

 
36,422

 
 
Ancile Solutions, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021
8.45
%
 
8,429

 
8,371

 
8,218

 
 (6)(20)
 
 
 
 
 
8,371

 
8,218

 
 
Apptio, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025
8.25
%
 
23,764

 
23,380

 
22,647

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

 
(24
)
 
(72
)
 
(6)(19)(20)
 
 
 
 
 
23,356

 
22,575

 
 

6

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2020
(dollar amounts in thousands)
(unaudited)


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

 
Cost
 
Fair Value
 
Notes
 
 
 
 
 
 
 
 
 
 
Associated Asphalt Partners, LLC
 
Construction Materials
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.25% cash due 4/5/2024
6.25
%
 
$
2,569

 
$
2,113

 
$
1,863

 
(6)
 
 
 
 
 
2,113

 
1,863

 
 
Asurion, LLC
 
Property & Casualty Insurance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.00% cash due 11/3/2024
3.99
%
 
2,098

 
1,769

 
2,024

 
(6)
Second Lien Term Loan, LIBOR+6.50% cash due 8/4/2025
7.49
%
 
21,274

 
21,234

 
19,718

 
(6)
 
 
 
 
 
23,003

 
21,742

 
 
Atlas Senior Loan Fund XV, Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 
 
Class E Notes, LIBOR+7.54% cash due 10/23/2032
9.46
%
 
741

 
474

 
468

 
(6)(11)
 
 
 
 
 
474

 
468

 
 
Aurora Lux Finco S.À.R.L.
 
Airport Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026
7.00
%
 
23,000

 
22,447

 
21,623

 
(6)(11)(20)
 
 
 
 
 
22,447

 
21,623

 
 
Avantor Inc.
 
Health Care Distributors
 
 
 
 
 
 
 
Fixed Rate Bond, 9.00% cash due 10/1/2025
 
 
3,000

 
2,976

 
3,177

 
 
 
 
 
 
 
2,976

 
3,177

 
 
Avoca Capital CLO X Designated Activity Company
 
Multi-Sector Holdings
 
 
 
 
 
 
 
Class ER Notes, EURIBOR+6.05% cash due 1/15/2030
6.05
%
 
741

 
552

 
627

 
(6)(11)
 
 
 
 
 
552

 
627

 
 
Blackhawk Network Holdings, Inc.
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026
7.81
%
 
$
26,250

 
26,031

 
21,613

 
(6)
 
 
 
 
 
26,031

 
21,613

 
 
Boxer Parent Company Inc.
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025
5.24
%
 
13,845

 
13,732

 
11,642

 
(6)
 
 
 
 
 
13,732

 
11,642

 
 
California Pizza Kitchen, Inc.
 
Restaurants
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 8/23/2022
 
 
3,106

 
3,081

 
1,571

 
(6)(21)
 
 
 
 
 
3,081

 
1,571

 
 
Carlyle US CLO 2019-3, Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 

Class D Notes, LIBOR+7.03% cash due 10/20/2032
9.11
%
 
504

 
315

 
343

 
(6)(11)
 
 
 
 
 
315

 
343

 
 
Chief Power Finance II, LLC
 
Independent Power Producers & Energy Traders
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022
7.95
%
 
22,425

 
21,938

 
21,151

 
(6)(20)
 
 
 
 
 
21,938

 
21,151

 
 
CITGO Holding, Inc.
 
Oil & Gas Refining & Marketing
 
 
 
 
 
 
 
Fixed Rate Bond, 9.25% cash due 8/1/2024
 
 
10,672

 
10,672

 
8,778

 
 
First Lien Term Loan, LIBOR+7.00% cash due 8/1/2023
8.00
%
 
9,950

 
9,825

 
8,225

 
(6)
 
 
 
 
 
20,497

 
17,003

 
 
CITGO Petroleum Corp.
 
Oil & Gas Refining & Marketing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024
6.00
%
 
9,900

 
9,801

 
8,762

 
(6)
 
 
 
 
 
9,801

 
8,762

 
 
Commscope, Inc.
 
Communications Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 4/6/2026
4.24
%
 
1,532

 
1,325

 
1,456

 
(6)(11)
 
 
 
 
 
1,325

 
1,456

 
 

7

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2020
(dollar amounts in thousands)
(unaudited)


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

 
Cost
 
Fair Value
 
Notes
Connect U.S. Finco LLC
 
Alternative Carriers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/11/2026
5.49
%
 
$
31,378

 
$
30,608

 
$
25,299

 
(6)(11)
 
 
 
 
 
30,608

 
25,299

 
 
Continental Intermodal Group LP
 
Oil & Gas Storage & Transportation
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+8.50% PIK due 1/28/2025
 
 
31,599

 
31,599

 
29,545

 
(6)(15)(20)
 
 
 
 
 
31,599

 
29,545

 
 
Convergeone Holdings, Inc.
 
IT Consulting & Other Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026
5.99
%
 
14,696

 
14,197

 
11,573

 
(6)
 
 
 
 
 
14,197

 
11,573

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

 
395

 
(20)
 
 
 
 
 
105

 
395

 
 
Corrona, LLC
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.75% cash due 12/13/2025
6.75
%
 
10,352

 
10,180

 
10,041

 
(6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.75% cash due 12/13/2025
 
 

 
(32
)
 
(110
)
 
(6)(19)(20)
First Lien Revolver, PRIME + 4.75% cash due 12/13/2025
8.00
%
 
1,221

 
1,190

 
1,166

 
(6)(19)(20)
1,099 Class A2 Common Units in Corrona Group Holdings, L.P.
 
 
 
 
1,099

 
1,099

 
(20)
 
 
 
 
 
12,437

 
12,196

 
 
Covia Holdings Corporation
 
Oil & Gas Equipment & Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 6/1/2025
 
 
7,860

 
7,860

 
3,720

 
(6)(11)(21)
 
 
 
 
 
7,860

 
3,720

 
 
Coyote Buyer, LLC
 
Specialty Chemicals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026
7.74
%
 
13,189

 
13,057

 
13,057

 
(6)(20)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025
7.74
%
 
39

 
35

 
35

 
(6)(19)(20)
 
 
 
 
 
13,092

 
13,092

 
 
Crown Point CLO 7 Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 

Class E Notes, LIBOR+6.30% cash due 10/20/2031
8.12
%
 
2,745

 
1,969

 
1,561

 
(6)(11)
 
 
 
 
 
1,969

 
1,561

 
 
CTOS, LLC
 
Trading Companies & Distributors
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 4/18/2025
5.00
%
 
10,190

 
10,290

 
8,789

 
(6)
 
 
 
 
 
10,290

 
8,789

 
 
Dealer Tire, LLC
 
Distributors
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 12/12/2025
5.24
%
 
4,010

 
3,498

 
3,335

 
(6)
 
 
 
 
 
3,498

 
3,335

 
 
The Dun & Bradstreet Corporation
 
Research & Consulting Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 2/6/2026
4.96
%
 
10,000

 
9,831

 
9,088

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

 
5,000

 
5,228

 
 
 
 
 
 
 
14,831

 
14,316

 
 
Eagleview Technology Corporation
 
Application Software
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/2026
8.57
%
 
12,000

 
11,880

 
10,320

 
(6)(20)
 
 
 
 
 
11,880

 
10,320

 
 
EHR Canada, LLC
 
Food Retail
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+8.00% cash due 9/28/2020
9.45
%
 
6,861

 
6,829

 
6,909

 
(6)(20)
 
 
 
 
 
6,829

 
6,909

 
 

8

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
March 31, 2020
(dollar amounts in thousands)
(unaudited)


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

 
Cost
 
Fair Value
 
Notes
Elevation CLO 2013-1, Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 
 
Class D1R2 Notes, LIBOR+7.65% cash due 8/15/2032
9.34
%
 
$
1,418

 
$
1,096

 
$
949

 
(6)(11)
 
 
 
 
 
1,096

 
949

 
 
Elevation CLO 2017-6, Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 
 
Class E Notes, LIBOR+6.60% cash due 7/15/2029
8.43
%
 
500

 
392

 
310

 
(6)(11)
 
 
 
 
 
392

 
310

 
 
Elevation CLO 2018-10, Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 
 
Class E Notes, LIBOR+6.29% cash due 10/20/2031
8.12
%
 
1,411

 
1,070

 
816

 
(6)(11)
 
 
 
 
 
1,070

 
816

 
 
Elevation CLO 2018-9, Ltd.
 
Multi-Sector Holdings
 
 
 
 
 
 
 
Class E Notes, LIBOR+6.30% cash due 7/15/2031
8.13
%
 
1,275

 
792

 
751

 
(6)(11)
 
 
 
 
 
792

 
751

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

 
907

 
(20)
12,500 Class B Common Units
 
 
 
 

 
492

 
(20)
 
 
 
 
 
488

 
1,399

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

 

 
(20)
 
 
 
 
 
181

 

 
 
GI Chill Acquisition LLC
 
Managed Health Care
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025
5.45
%
 
17,730

 
17,641

 
15,336

 
(6)(20)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026
8.95
%
 
10,000

 
9,921

 
8,700

 
(6)(20)
 
 
 
 
 
27,562

 
24,036

 
 
Global Medical Response
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025
5.86
%
 
6,289

 
6,172

 
5,675

 
(6)
 
 
 
 
 
6,172

 
5,675

 
 
GKD Index Partners, LLC
 
Specialized Finance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023
8.45
%
 
21,781

 
21,640

 
21,389

 
(6)(20)
First Lien Revolver, LIBOR+7.00% cash due 6/29/2023
8.12
%
 
924

 
914

 
902

 
(6)(19)(20)
 
 
 
 
 
22,554

 
22,291

 
 
Guidehouse LLP
 
Research & Consulting Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025
5.49
%
 
4,975

 
4,927

 
4,079

 
(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026
8.99
%