Document

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 1-33901
Oaktree Specialty Lending Corporation

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


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each ClassTrading Symbol(s)Name of Each Exchange
on Which Registered
Common Stock, par value $0.01 per shareOCSL The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   þ     NO   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES   ¨   NO   ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer  ¨
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 180,360,662 shares of common stock outstanding as of August 3, 2021.




OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2021



TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item 1.
Consolidated Financial Statements:
PART II — OTHER INFORMATION


 




 






 




 



PART I — FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
June 30, 2021 (unaudited)September 30, 2020
ASSETS
Investments at fair value:
Control investments (cost June 30, 2021: $283,707; cost September 30, 2020: $245,950)$269,478 $201,385 
Affiliate investments (cost June 30, 2021: $14,788; cost September 30, 2020: $7,551)13,959 6,509 
Non-control/Non-affiliate investments (cost June 30, 2021: $2,021,729; cost September 30, 2020: $1,415,669)2,055,864 1,365,957 
Total investments at fair value (cost June 30, 2021: $2,320,224; cost September 30, 2020: $1,669,170)2,339,301 1,573,851 
Cash and cash equivalents84,689 39,096 
Restricted cash2,840 — 
Interest, dividends and fees receivable15,415 6,935 
Due from portfolio companies1,394 2,725 
Receivables from unsettled transactions2,466 9,123 
Due from broker1,640 — 
Deferred financing costs9,413 5,947 
Deferred offering costs34 67 
Deferred tax asset, net735 847 
Derivative assets at fair value2,449 223 
Other assets2,332 1,898 
Total assets$2,462,708 $1,640,712 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$3,925 $1,072 
Base management fee and incentive fee payable31,127 11,212 
Due to affiliate5,011 2,130 
Interest payable5,277 1,626 
Payables from unsettled transactions10,588 478 
Derivative liability at fair value267 — 
Credit facilities payable464,057 414,825 
Unsecured notes payable (net of $6,876 and $3,272 of unamortized financing costs as of June 30, 2021 and September 30, 2020, respectively)640,042 294,490 
Total liabilities1,160,294 725,833 
Commitments and contingencies (Note 14)
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 180,361 and 140,961 shares issued and outstanding as of June 30, 2021 and September 30, 2020, respectively1,804 1,409 
Additional paid-in-capital1,730,083 1,487,774 
Accumulated overdistributed earnings(429,473)(574,304)
Total net assets (equivalent to $7.22 and $6.49 per common share as of June 30, 2021 and September 30, 2020, respectively) (Note 12)1,302,414 914,879 
Total liabilities and net assets$2,462,708 $1,640,712 

See notes to Consolidated Financial Statements.
3


Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, 2021Three months ended June 30, 2020Nine months ended June 30, 2021Nine months ended June 30, 2020
Interest income:
Control investments$3,405 $2,558 $8,122 $7,502 
Affiliate investments189 127 437 379 
Non-control/Non-affiliate investments48,403 27,406 110,720 80,214 
Interest on cash and cash equivalents21 320 
Total interest income51,999 30,112 119,287 88,415 
PIK interest income:
Non-control/Non-affiliate investments4,597 2,183 11,487 5,290 
Total PIK interest income4,597 2,183 11,487 5,290 
Fee income:
Control investments13 13 46 27 
Affiliate investments15 15 
Non-control/Non-affiliate investments7,805 1,809 13,392 4,906 
Total fee income7,823 1,827 13,453 4,948 
Dividend income:
Control investments1,019 281 1,358 881 
Total dividend income1,019 281 1,358 881 
Total investment income65,438 34,403 145,585 99,534 
Expenses:
Base management fee8,905 5,988 22,520 16,890 
Part I incentive fee6,990 3,556 15,583 9,988 
Part II incentive fee2,837 — 15,986 (5,557)
Professional fees1,059 545 2,943 1,854 
Directors fees147 143 447 428 
Interest expense8,823 6,406 21,486 20,156 
Administrator expense421 373 1,047 1,194 
General and administrative expenses716 622 2,009 1,934 
Total expenses29,898 17,633 82,021 46,887 
Reversal of fees waived (fees waived)(750)— (858)5,200 
Net expenses29,148 17,633 81,163 52,087 
Net investment income before taxes36,290 16,770 64,422 47,447 
(Provision) benefit for taxes on net investment income(358)— (358)— 
Net investment income35,932 16,770 64,064 47,447 
Unrealized appreciation (depreciation):
Control investments3,590 13,790 30,336 (39,605)
Affiliate investments109 (45)213 (1,839)
Non-control/Non-affiliate investments(898)87,225 83,842 (19,018)
Foreign currency forward contracts1,116 (398)2,226 380 
Net unrealized appreciation (depreciation) 3,917 100,572 116,617 (60,082)
Realized gains (losses):
Control investments— — — 777 
Non-control/Non-affiliate investments9,350 2,821 26,267 (18,117)
Extinguishment of unsecured notes payable— — — (2,541)
Foreign currency forward contracts(740)— (3,586)(490)
Net realized gains (losses)8,610 2,821 22,681 (20,371)
(Provision) benefit for taxes on realized and unrealized gains (losses)(1,421)68 (2,663)1,613 
Net realized and unrealized gains (losses), net of taxes11,106 103,461 136,635 (78,840)
Net increase (decrease) in net assets resulting from operations$47,038 $120,231 $200,699 $(31,393)
Net investment income per common share — basic and diluted$0.20 $0.12 $0.41 $0.34 
Earnings (loss) per common share — basic and diluted (Note 5)$0.26 $0.85 $1.29 $(0.22)
Weighted average common shares outstanding — basic and diluted180,361 140,961 155,970 140,961 


See notes to Consolidated Financial Statements.
4


Oaktree Specialty Lending Corporation
Consolidated Statements of Changes in Net Assets
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, 2021Three months ended June 30, 2020Nine months ended June 30, 2021Nine months ended June 30, 2020
Operations:
Net investment income$35,932 $16,770 $64,064 $47,447 
Net unrealized appreciation (depreciation)3,917 100,572 116,617 (60,082)
Net realized gains (losses)8,610 2,821 22,681 (20,371)
(Provision) benefit for taxes on realized and unrealized gains (losses)(1,421)68 (2,663)1,613 
Net increase (decrease) in net assets resulting from operations47,038 120,231 200,699 (31,393)
Stockholder transactions:
Distributions to stockholders(23,447)(13,392)(55,868)(40,174)
Net increase (decrease) in net assets from stockholder transactions(23,447)(13,392)(55,868)(40,174)
Capital share transactions:
Issuance of common stock in connection with the Mergers— — 242,704 — 
Issuance of common stock under dividend reinvestment plan520 390 1,559 1,377 
Repurchases of common stock under dividend reinvestment plan(520)(390)(1,559)(1,377)
Net increase (decrease) in net assets from capital share transactions  242,704  
Total increase (decrease) in net assets23,591 106,839 387,535 (71,567)
Net assets at beginning of period1,278,823 752,224 914,879 930,630 
Net assets at end of period$1,302,414 $859,063 $1,302,414 $859,063 
Net asset value per common share$7.22 $6.09 $7.22 $6.09 
Common shares outstanding at end of period180,361 140,961 180,361 140,961 



See notes to Consolidated Financial Statements.
5

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





Nine months ended
June 30, 2021
Nine months ended
June 30, 2020
Operating activities:
Net increase (decrease) in net assets resulting from operations$200,699 $(31,393)
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(116,617)60,082 
Net realized (gains) losses(22,681)20,371 
PIK interest income(11,487)(5,290)
Accretion of original issue discount on investments(18,032)(8,378)
Accretion of original issue discount on unsecured notes payable403 175 
Amortization of deferred financing costs3,030 1,565 
Deferred taxes112 (1,470)
Purchases of investments (714,791)(576,866)
Proceeds from the sales and repayments of investments586,812 388,338 
Cash acquired in the Mergers20,945 — 
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable(3,434)3,267 
(Increase) decrease in due from portfolio companies1,956 (103)
(Increase) decrease in receivables from unsettled transactions8,199 (9,520)
(Increase) decrease in due from broker(1,640)— 
(Increase) decrease in other assets(1,444)328 
Increase (decrease) in accounts payable, accrued expenses and other liabilities476 (686)
Increase (decrease) in base management fee and incentive fee payable17,994 2,822 
Increase (decrease) in due to affiliate1,773 (476)
Increase (decrease) in interest payable1,844 1,929 
Increase (decrease) in payables from unsettled transactions10,110 (52,424)
Increase (decrease) in director fees payable(90)— 
Net cash provided by (used in) operating activities(35,863)(207,729)
Financing activities:
Distributions paid in cash(54,309)(38,797)
Borrowings under credit facilities325,000 286,000 
Repayments of borrowings under credit facilities(515,525)(134,000)
Repayments of unsecured notes— (161,250)
Issuance of unsecured notes349,020 297,459 
Repayments of secured borrowings(9,341)— 
Repurchases of common stock under dividend reinvestment plan(1,559)(1,377)
Deferred financing costs paid(7,844)(4,835)
Deferred offering costs paid— (67)
Net cash provided by (used in) financing activities85,442 243,133 
Effect of exchange rate changes on foreign currency(1,146)(82)
Net increase (decrease) in cash and cash equivalents and restricted cash48,433 35,322 
Cash and cash equivalents and restricted cash, beginning of period39,096 15,406 
Cash and cash equivalents and restricted cash, end of period$87,529 $50,728 
Supplemental information:
Cash paid for interest$15,583 $16,487 
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan$1,560 $1,377 
Deferred financing costs(592)— 
Issuance of shares in connection with the Mergers242,704 — 
Reconciliation to the Consolidated Statements of Assets and LiabilitiesJune 30, 2021September 30, 2020
Cash and cash equivalents$84,689 $39,096 
Restricted cash2,840 — 
Total cash and cash equivalents and restricted cash$87,529 $39,096 

See notes to Consolidated Financial Statements.
6

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Control Investments
(8)(9)
C5 Technology Holdings, LLCData Processing & Outsourced Services
829 Common Units$— $— (15)
34,984,460.37 Preferred Units34,984 27,638 (15)
34,984 27,638 
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.00 %$27,451 27,451 27,451 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024— — — (6)(15)(19)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC18,626 18,065 (12)(15)
46,077 45,516 
First Star Speir Aviation LimitedAirlines(10)
First Lien Term Loan, 9.00% cash due 12/15/20257,500 — 7,500 (11)(15)
100% equity interest6,339 482 (11)(12)(15)
6,339 7,982 
OCSI Glick JV LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+4.50% cash due 10/20/20284.70 %62,296 50,735 55,397  (6)(11)(15)
87.5% equity interest— —  (11)(16)(19)
50,735 55,397 
Senior Loan Fund JV I, LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/20288.00 %96,250 96,250 96,250 (6)(11)(15)(19)
87.5% LLC equity interest49,322 36,695 (11)(12)(16)(19)
145,572 132,945 
 Total Control Investments (20.7% of net assets)$283,707 $269,478 
Affiliate Investments (17)
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %$11,924 $11,925 $11,680 (6)(15)(19)
1,609,201 Class A Units764 579 (15)
1,019,168.80 Preferred Units, 6%1,019 1,131 (15)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (15)
13,708 13,390 
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%1,080 569 (15)
1,080 569 
 Total Affiliate Investments (1.1% of net assets)$14,788 $13,959 
Non-Control/Non-Affiliate Investments(18)
4 Over International, LLCCommercial Printing
First Lien Term Loan, LIBOR+6.00% cash due 6/7/20227.00 %$10,987 $10,433 $10,240 (6)(15)
First Lien Revolver, PRIME+5.00% cash due 6/7/20228.25 %460 441 348 (6)(15)(19)
10,874 10,588 
109 Montgomery Owner LLCReal Estate Operating Companies
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/20237.50 %4,746 4,550 4,766 (6)(15)(19)
4,550 4,766 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% cash due 12/22/202237,158 36,884 36,972 (11)(15)
36,884 36,972 
Access CIG, LLCDiversified Support Services
First Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.84 %5,365 5,010 5,340 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/20267.84 %15,000 14,921 14,972 (6)
19,931 20,312 
7

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Accupac, Inc.Personal Products
First Lien Term Loan, LIBOR+6.00% cash due 1/17/20267.00 %$16,181 $15,775 $16,181 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026— (31)— (6)(15)(19)
First Lien Revolver, LIBOR+6.00% cash due 1/17/20267.00 %2,042 1,991 2,042 (6)(15)
17,735 18,223 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.00 %20,950 20,646 20,929 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 10/31/20258.00 %179 146 177 (6)(15)(19)
20,792 21,106 
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %15,663 14,969 15,422 (6)(15)
14,969 15,422 
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.5,165 — (15)
5,165  
AI Ladder (Luxembourg) Subco S.a.r.l.Electrical Components & Equipment
First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.58 %14,555 14,122 14,568 (6)(11)
14,122 14,568 
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %24,838 27,708 29,382 (6)(11)(15)
27,708 29,382 
AirStrip Technologies, Inc.Application Software
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/202590 — (15)
90  
All Web Leads, Inc.Advertising
First Lien Term Loan, LIBOR+6.50% cash due 12/29/20237.50 %$24,157 21,473 22,970 (6)(15)
21,473 22,970 
Alvotech Holdings S.A.Biotechnology(13)
Fixed Rate Bond 15% PIK Tranche A due 6/24/202520,967 20,556 20,967 (11)(15)
Fixed Rate Bond 15% PIK Tranche B due 6/24/202520,512 20,151 20,512 (11)(15)
27,308 Common Shares6,322 6,322 (15)
47,029 47,801 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %15,415 13,772 15,145 (6)(11)(15)
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/20278.75 %12,500 12,188 12,125 (6)(11)(15)
25,960 27,270 
Ankura Consulting Group LLCResearch & Consulting Services
Second Lien Term Loan, LIBOR+8.00% cash due 3/19/20298.75 %7,466 7,354 7,578 (6)(15)
7,354 7,578 
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %34,458 33,341 33,842 (6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/20258.25 %892 846 852 (6)(15)(19)
34,187 34,694 
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+5.4375% cash 2.26875% PIK due 7/14/20266.44 %1,942 2,154 2,294 (6)(11)(15)
First Lien Term Loan, UK LIBOR+5.4375% cash 2.26875% PIK due 7/14/20266.19 %£18,449 23,139 25,486 (6)(11)(15)
Fixed Rate Bond, 11.50% cash due 1/15/2027$1,182 1,171 1,300 (11)
26,464 29,080 
8

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.25 %$2,531 $2,216 $2,391 (6)
2,216 2,391 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202642,145 40,386 41,829 (11)(15)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (274)(158)(11)(15)(19)
328,149 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027973 302 (11)(15)
41,085 41,973 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %22,713 22,268 21,372 (6)(11)(15)
22,268 21,372 
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 %21,760 21,293 21,959 (6)(15)(19)
Subordinated Delayed Draw Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/202312.75 %4,954 4,851 4,959 (6)(15)(19)
26,144 26,918 
BAART Programs, Inc.Health Care Equipment
Second Lien Term Loan, LIBOR+8.50% cash due 6/11/20289.50 %7,166 7,059 7,130 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 6/11/20289.50 %3,583 3,529 3,565 (6)(15)
10,588 10,695 
Blackhawk Network Holdings, Inc.Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20267.13 %30,625 30,158 30,548 (6)
30,158 30,548 
Blumenthal Temecula, LLCAutomotive Retail
First Lien Term Loan, 9.00% cash due 9/24/20233,979 3,980 3,979 (15)
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC1,293 1,293 (15)
298,460 Preferred Units in Unstoppable Automotive VMV, LLC298 298 (15)
298,460 Common Units in Unstoppable Automotive AMV, LLC298 298 (15)
99,486 Common Units in Unstoppable Automotive VMV, LLC100 99 (15)
5,969 5,967 
Cadence Aerospace, LLCAerospace & Defense
First Lien Term Loan, LIBOR+3.25% cash 5.25% PIK due 11/14/20234.25 %14,105 12,342 12,954 (6)(15)
12,342 12,954 
Chief Power Finance II, LLCIndependent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/20227.50 %24,181 23,704 23,637 (6)(15)
23,704 23,637 
CircusTrix Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+5.50% cash 2.50% PIK due 7/16/20236.50 %10,571 8,611 7,879 (6)(15)
8,611 7,879 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.00 %11,664 11,531 11,621 (6)
Fixed Rate Bond, 9.25% cash due 8/1/202410,672 10,672 10,899 
22,203 22,520 
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %14,258 13,862 14,374 (6)
13,862 14,374 
Clear Channel Outdoor Holdings Inc.Advertising
Fixed Rate Bond, 7.50% cash due 6/1/20297,137 7,137 7,398 (11)
7,137 7,398 
9

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025$37,851 $35,476 $31,795 (6)(15)
Common Stock Warrants expiration date 7/28/2025648 1,917 (15)
36,124 33,712 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.10 %9,535 9,282 9,451 (6)
9,282 9,451 
Conviva Inc.Application Software
517,851 Shares of Series D Preferred Stock605 894 (15)
605 894 
CorEvitas, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %10,222 10,089 10,130 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %1,215 1,172 1,182 (6)(15)(19)
First Lien Revolver, PRIME+4.50% cash due 12/13/20257.75 %305 281 289 (6)(15)(19)
1,099 Class A2 Common Units in CorEvitas Holdings, L.P.1,038 1,177 (15)
12,580 12,778 
Coty Inc.Personal Products
First Lien Revolver, LIBOR+1.75% cash due 4/5/2023— (712)(395)(6)(11)(15)(19)
(712)(395)
Coyote Buyer, LLCSpecialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.00 %18,433 17,911 18,249 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025— (13)(13)(6)(15)(19)
17,898 18,236 
Curium Bidco S.à.r.l.Biotechnology
Second Lien Term Loan, LIBOR+7.75% cash due 10/27/20288.50 %16,787 16,535 17,123 (6)(11)(15)
16,535 17,123 
Delta Topco, Inc.Systems Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.00 %6,680 6,647 6,789 (6)
6,647 6,789 
Digital.AI Software Holdings, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 2/10/20278.00 %10,028 9,633 9,857 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 2/10/2027— (30)(18)(6)(15)(19)
9,603 9,839 
Eagleview Technology CorporationApplication Software
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/20268.50 %8,974 8,884 8,869 (6)(15)
8,884 8,869 
EHR Canada, LLCFood Retail
First Lien Term Loan, LIBOR+8.00% cash due 12/31/20219.00 %3,750 3,739 3,746 (6)(15)
3,739 3,746 
EOS Fitness Opco Holdings, LLCLeisure Facilities
487.5 Class A Preferred Units, 12%488 274 (15)
12,500 Class B Common Units— — (15)
488 274 
Firstlight Holdco, Inc.Alternative Carriers
First Lien Term Loan, LIBOR+3.50% cash due 7/23/20253.60 %7,030 6,566 6,984 (6)
6,566 6,984 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/202511,359 10,680 11,075 (11)(15)
331,200 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030405 434 (11)(15)
11,085 11,509 
10

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
GI Chill Acquisition LLCManaged Health Care
First Lien Term Loan, LIBOR+4.00% cash due 8/6/20254.15 %$16,721 $16,479 $16,716 (6)(15)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/20267.65 %6,250 6,210 6,219 (6)(15)
22,689 22,935 
GKD Index Partners, LLCSpecialized Finance
First Lien Term Loan, LIBOR+9.00% cash due 6/29/202310.00 %26,668 26,062 26,188 (6)(15)
First Lien Revolver, LIBOR+9.00% cash due 6/29/202310.00 %1,280 1,247 1,251 (6)(15)(19)
27,309 27,439 
Global Medical ResponseHealth Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %8,652 8,404 8,686 (6)
8,404 8,686 
Gulf Operating, LLCOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+5.25% cash due 8/25/20236.25 %2,839 2,016 2,418 (6)
First Lien Revolver, LIBOR+4.00% cash due 12/27/2021— (704)(377)(6)(15)(19)
1,312 2,041 
Houghton Mifflin Harcourt Publishers Inc.Education Services
First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.25 %1,007 979 1,011 (6)(11)
979 1,011 
IBG Borrower LLCApparel, Accessories & Luxury Goods
First Lien Term Loan, LIBOR+7.00% cash due 8/2/20227.19 %6,096 5,902 6,096 (6)(15)
5,902 6,096 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50 %25,635 24,972 25,489 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.50 %1,176 1,144 1,170 (6)(15)
26,116 26,659 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20256.75 %8,679 8,431 8,592 (6)(15)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/20259.00 %21,640 20,993 21,424 (6)(15)
29,424 30,016 
Integral Development CorporationOther Diversified Financial Services
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024113 — (15)
113  
Inventus Power, Inc.Electrical Components & Equipment
First Lien Term Loan, LIBOR+5.00% cash due 3/29/20246.00 %18,897 18,724 18,708 (6)(15)
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/20249.50 %11,366 11,155 11,139 (6)(15)
29,879 29,847 
INW Manufacturing, LLCPersonal Products
First Lien Term Loan, LIBOR+5.75% cash due 5/7/20276.50 %37,266 36,169 36,520 (6)(15)
36,169 36,520 
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+8.50% cash due 12/1/20289.50 %17,346 16,847 17,346 (6)(15)
16,847 17,346 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20278.50 %22,870 21,686 22,802 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.50% cash due 1/29/2027— — — (6)(15)(19)
21,686 22,802 
11

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Lanai Holdings III, Inc.Health Care Distributors
First Lien Term Loan, PRIME+3.75% cash due 8/29/20227.00 %$12,846 $12,763 $12,823 (6)
12,763 12,823 
Latam Airlines Group S.A.Airlines
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/202215,739 15,506 15,786 (6)(11)(15)(19)
15,506 15,786 
Lift Brands Holdings, Inc.Leisure Facilities
2,000,000 Class A Common Units in Snap Investments, LLC1,399 — (15)
1,399  
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.15 %41,538 40,494 41,330 (6)(15)
40,494 41,330 
LogMeIn, Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.83 %3,980 3,719 3,978 (6)
3,719 3,978 
LTI Holdings, Inc.Electronic Components
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20266.85 %10,140 10,077 10,140 (6)
10,077 10,140 
Maravai Intermediate Holdings, LLCBiotechnology
First Lien Term Loan, LIBOR+3.75% cash due 10/19/20274.75 %2,735 2,566 2,750 (6)
2,566 2,750 
Marinus Pharmaceuticals, Inc.Pharmaceuticals
First Lien Term Loan, 11.50% cash due 5/11/20263,441 3,374 3,372 (11)(15)
First Lien Delayed Draw Term Loan, 11.50% cash due 5/11/2026— — — (11)(15)(19)
3,374 3,372 
Mayfield Agency Borrower Inc.Property & Casualty Insurance
First Lien Term Loan, LIBOR+4.50% cash due 2/28/20254.60 %28,602 27,961 28,584 (6)
27,961 28,584 
MedAssets Software Intermediate Holdings, Inc.Health Care Technology
Second Lien Term Loan, LIBOR+7.75% cash due 1/29/20298.50 %14,137 13,868 13,960 (6)(15)
13,868 13,960 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+5.00% cash due 3/8/20246.00 %16,526 15,357 16,161 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 3/10/2023— (126)(116)(6)(15)(19)
15,231 16,045 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.00 %38,626 37,270 36,734 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (82)(196)(6)(15)(19)
37,188 36,538 
Ministry Brands, LLCApplication Software
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022— (9)(9)(6)(15)(19)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/202310.25 %11,000 10,821 10,906 (6)(15)
10,812 10,897 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %25,398 24,835 25,429 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (42)(6)(15)(19)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (13)(6)(15)(19)
24,780 25,435 
12

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/20269.50 %$22,560 $22,146 $22,334 (6)(15)
22,146 22,334 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.00 %46,204 44,303 45,095 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024— (204)(131)(6)(15)(19)
44,099 44,964 
NN, Inc.Industrial Machinery
First Lien Term Loan, LIBOR+6.88% cash due 9/19/20267.88 %59,458 58,048 57,972 (6)(11)(15)
58,048 57,972 
OEConnection LLCApplication Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.10 %8,364 7,830 8,364 (6)
7,830 8,364 
Olaplex, Inc.Personal Products
First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %52,460 51,169 52,460 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025— (61)(39)(6)(15)(19)
51,108 52,421 
OmniSYS Acquisition CorporationDiversified Support Services
100,000 Common Units in OSYS Holdings, LLC1,000 617 (15)
1,000 617 
Onvoy, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+4.50% cash due 2/10/20245.50 %3,611 3,398 3,613 (6)
Second Lien Term Loan, LIBOR+10.50% cash due 2/10/202511.50 %12,498 12,498 12,477 (6)(15)
19,666.67 Class A Units in GTCR Onvoy Holdings, LLC1,967 2,060 (15)
13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC— — (15)
17,863 18,150 
P & L Development, LLCPharmaceuticals
Fixed Rate Bond, 7.75% cash due 11/15/20259,123 9,123 9,613 
9,123 9,613 
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %9,975 9,484 10,022 (6)
9,484 10,022 
PaySimple, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+5.50% cash due 8/23/20255.61 %51,530 50,297 51,272 (6)(15)
50,297 51,272 
Pingora MSR Opportunity Fund I-A, LPThrifts & Mortgage Finance
1.86% limited partnership interest752 114 (11)(16)(19)
752 114 
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %28,627 28,198 28,699 (6)(15)
28,198 28,699 
PLNTF Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+8.00% cash due 3/12/20269.00 %13,764 13,502 13,901 (6)(15)
13,502 13,901 
Pluralsight, LLCApplication Software
First Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %41,502 40,705 40,672 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 4/6/2027— (68)(71)(6)(15)(19)
40,637 40,601 
13

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
PRGX Global, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+6.75% cash due 3/3/20267.75 %$34,204 $33,036 $33,520 (6)(15)
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026— (46)(50)(6)(15)(19)
80,515 Class B Common Units79 81 (15)
33,069 33,551 
ProFrac Services, LLCIndustrial Machinery
First Lien Term Loan, LIBOR+8.50% cash due 9/15/20239.75 %22,193 20,295 21,749 (6)(15)
20,295 21,749 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/20278.10 %5,250 5,147 5,250 (6)(15)
5,147 5,250 
Pug LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+8.00% cash due 2/12/20278.75 %21,283 20,223 21,629 (6)
20,223 21,629 
Quantum Bidco LimitedFood Distributors
First Lien Term Loan, UK LIBOR+6.00% cash due 1/29/20286.11 %£3,501 4,618 4,734 (6)(11)
4,618 4,734 
QuorumLabs, Inc.Application Software
64,887,669 Junior-2 Preferred Stock375 — (15)
375  
Refac Optical GroupSpecialty Stores
1,550.9435 Shares of Common Stock in Refac Holdings, Inc.— (15)
550.9435 Series A-2 Preferred Stock in Refac Holdings, Inc., 10%305 — (15)
1,000 Series A-1 Preferred Stock in Refac Holdings, Inc., 10%999 — (15)
1,305  
Relativity ODA LLCApplication Software
First Lien Term Loan, LIBOR+7.50% PIK due 5/12/2027$22,356 21,814 21,842 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 5/12/2027— (54)(51)(6)(15)(19)
21,760 21,791 
Renaissance Holding Corp.Diversified Banks
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/20267.10 %3,542 3,515 3,554 (6)
3,515 3,554 
RevSpring, Inc.Commercial Printing
First Lien Term Loan, LIBOR+4.00% cash due 10/11/20254.15 %9,750 9,175 9,735 (6)(15)
9,175 9,735 
RS Ivy Holdco, Inc.Oil & Gas Exploration & Production
First Lien Term Loan, LIBOR+5.50% cash due 12/23/20276.50 %2,488 2,335 2,489 (6)(15)
2,335 2,489 
Sabert CorporationMetal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %1,823 1,710 1,825 (6)
1,710 1,825 
Salient CRGT, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %5,326 5,028 5,292 (6)(15)
5,028 5,292 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/20267,817 6,475 6,988 (15)
6,475 6,988 
ShareThis, Inc.Application Software
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024367 — (15)
367  
14

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Sirva Worldwide, Inc.Diversified Support Services
First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.60 %$5,911 $5,241 $5,584 (6)
5,241 5,584 
SM Wellness Holdings, Inc.Health Care Services
Second Lien Term Loan, LIBOR+8.00% cash due 4/15/20298.75 %9,109 8,972 9,200 (6)(15)
8,972 9,200 
Sorrento Therapeutics, Inc.Biotechnology
50,000 Common Stock Units197 485 (11)
197 485 
Star US Bidco LLCIndustrial Machinery
First Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %1,197 1,113 1,198 (6)
1,113 1,198 
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 %12,401 14,121 14,406 (6)(11)(15)(19)
14,121 14,406 
Sunland Asphalt & Construction, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.00% cash due 1/13/20267.00 %$43,160 41,813 42,427