SEC Filing | Oaktree Specialty Lending Corporation, L.P

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ocsl-20240630

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 June 30, 2024


			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 þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ

Accelerated filer ¨

Non-accelerated filer ¨

Smaller reporting company ☐

Emerging growth company ☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ¨ No þ

The registrant had 82,245,319 shares of common stock outstanding as of July 30, 2024.

OAKTREE SPECIALTY LENDING CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2024

TABLE OF CONTENTS



		PART I — FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements:
		Consolidated Statements of Assets and Liabilities as of June 30, 2024 (unaudited) and September 30, 2023	2
		Consolidated Statements of Operations (unaudited) for the three and nine months ended June 30, 2024 and 2023	3
		Consolidated Statements of Changes in Net Assets (unaudited) for the three and nine months ended June 30, 2024 and 2023	4
		Consolidated Statements of Cash Flows (unaudited) for the nine months ended June 30, 2024 and 2023	5
		Consolidated Schedule of Investments (unaudited) as of June 30, 2024	6
		Consolidated Schedule of Investments as of September 30, 2023	17
		Notes to Consolidated Financial Statements (unaudited)	26
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		81
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		100
Item 4.	Controls and Procedures		102
		PART II — OTHER INFORMATION
Item 1.	Legal Proceedings		102
Item 1A.	Risk Factors		102
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		102
Item 3.	Defaults Upon Senior Securities		102
Item 4.	Mine Safety Disclosures		102
Item 5.	Other Information		102
Item 6.	Exhibits		103
Signatures			104

Item 1. Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except per share amounts)


	June 30, 2024 (unaudited)		September 30, 2023
ASSETS
Investments at fair value:
Control investments (cost June 30, 2024: $369,660; cost September 30, 2023: $345,245)	$	299,072	$	297,091
Affiliate investments (cost June 30, 2024: $38,101; cost September 30, 2023: $24,898)	35,396		23,349
Non-control/Non-affiliate investments (cost June 30, 2024: $2,885,171; cost September 30, 2023: $2,673,976)	2,787,235		2,571,980
Total investments at fair value (cost June 30, 2024: $3,292,932; cost September 30, 2023: $3,044,119)	3,121,703		2,892,420
Cash and cash equivalents	96,321		136,450
Restricted cash	10,993		9,089
Interest, dividends and fees receivable	27,609		44,570
Due from portfolio companies	954		6,317
Receivables from unsettled transactions	18,760		55,441
Due from broker	30,310		54,260
Deferred financing costs	12,418		12,541
Deferred offering costs	78		160
Derivative assets at fair value	436		4,910
Other assets	2,599		1,681
Total assets	$	3,322,181	$	3,217,839
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	4,070	$	2,950
Base management fee and incentive fee payable	15,415		19,547
Due to affiliate	4,803		4,310
Interest payable	19,329		16,007
Payables from unsettled transactions	51,595		11,006
Derivative liabilities at fair value	33,672		47,519
Deferred tax liability	—		5
Credit facilities payable	790,000		710,000
Unsecured notes payable (net of $5,468 and $7,076 of unamortized financing costs as of June 30, 2024 and September 30, 2023, respectively)	907,164		890,731
Total liabilities	1,826,048		1,702,075
Commitments and contingencies (Note 13)
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 82,245 and 77,225 shares issued and outstanding as of June 30, 2024 and September 30, 2023, respectively	822		772
Additional paid-in-capital	2,264,449		2,166,330
Accumulated overdistributed earnings	(769,138)		(651,338)
Total net assets (equivalent to $18.19 and $19.63 per common share as of June 30, 2024 and September 30, 2023, respectively) (Note 11)	1,496,133		1,515,764
Total liabilities and net assets	$	3,322,181	$	3,217,839

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)


	Three months ended June 30, 2024		Three months ended June 30, 2023		Nine months ended June 30, 2024		Nine months ended June 30, 2023
Interest income:
Control investments	$	5,924	$	5,568	$	17,878	$	15,326
Affiliate investments	192		681		526		1,970
Non-control/Non-affiliate investments	78,681		88,069		239,205		234,516
Interest on cash and cash equivalents	1,156		992		5,014		2,221
Total interest income	85,953		95,310		262,623		254,033
PIK interest income:
Control investments	677		—		1,819		—
Affiliate investments	11		—		11		—
Non-control/Non-affiliate investments	5,461		3,967		12,984		14,220
Total PIK interest income	6,149		3,967		14,814		14,220
Fee income:
Control investments	13		13		39		38
Affiliate investments	—		5		5		15
Non-control/Non-affiliate investments	1,447		1,555		5,269		5,921
Total fee income	1,460		1,573		5,313		5,974
Dividend income:
Control investments	1,400		1,050		4,200		3,150
Non-control/Non-affiliate investments	4		—		30		4
Total dividend income	1,404		1,050		4,230		3,154
Total investment income	94,966		101,900		286,980		277,381
Expenses:
Base management fee	11,781		11,983		34,862		33,383
Part I incentive fee	8,341		9,590		25,821		26,300
Professional fees	1,091		1,387		3,808		4,962
Directors fees	160		160		480		480
Interest expense	32,513		30,793		96,564		79,316
Administrator expense	391		322		1,083		935
General and administrative expenses	824		752		1,941		2,753
Total expenses	55,101		54,987		164,559		148,129
Management fees waived	(1,500)		(1,500)		(4,500)		(4,025)
Part I incentive fees waived	(3,210)		—		(3,210)		—
Net expenses	50,391		53,487		156,849		144,104
Net investment income before taxes	44,575		48,413		130,131		133,277
Excise tax	—		—		—		(78)
Net investment income	44,575		48,413		130,131		133,199
Unrealized appreciation (depreciation):
Control investments	(17,580)		734		(22,434)		(900)
Affiliate investments	(324)		149		(1,156)		(302)
Non-control/Non-affiliate investments	42,997		(6,497)		3,986		(36,296)
Foreign currency forward contracts	1,106		4,575		(4,474)		(4,802)
Net unrealized appreciation (depreciation)	26,199		(1,039)		(24,078)		(42,300)
Realized gains (losses):
Control investments	—		—		786		—
Non-control/Non-affiliate investments	(69,163)		(4,294)		(87,936)		(14,404)
Foreign currency forward contracts	(289)		(6,309)		2,642		(5,513)
Net realized gains (losses)	(69,452)		(10,603)		(84,508)		(19,917)
(Provision) benefit for taxes on realized and unrealized gains (losses)	(202)		(86)		(553)		397
Net realized and unrealized gains (losses), net of taxes	(43,455)		(11,728)		(109,139)		(61,820)
Net increase (decrease) in net assets resulting from operations	$	1,120	$	36,685	$	20,992	$	71,379
Net investment income per common share — basic and diluted (1)	$	0.54	$	0.63	$	1.63	$	1.89
Earnings (loss) per common share — basic and diluted (Note 5) (1)	$	0.01	$	0.48	$	0.26	$	1.01
Weighted average common shares outstanding — basic and diluted (1)	81,830		77,080		79,804		70,431

__________

(1) As discussed in Note 2, the Company completed a 1-for-3 reverse stock split on January 20, 2023, effective as of the commencement of trading on January 23, 2023. The weighted average common shares outstanding and per share information reflect the reverse stock split on a retroactive basis as necessary.

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Changes in Net Assets

(in thousands, except per share amounts)

(unaudited)


	Three months ended June 30, 2024		Three months ended June 30, 2023		Nine months ended June 30, 2024		Nine months ended June 30, 2023
Operations:
Net investment income	$	44,575	$	48,413	$	130,131	$	133,199
Net unrealized appreciation (depreciation)	26,199		(1,039)		(24,078)		(42,300)
Net realized gains (losses)	(69,452)		(10,603)		(84,508)		(19,917)
(Provision) benefit for taxes on realized and unrealized gains (losses)	(202)		(86)		(553)		397
Net increase (decrease) in net assets resulting from operations	1,120		36,685		20,992		71,379
Stockholder transactions:
Distributions to stockholders	(45,180)		(42,394)		(138,792)		(143,468)
Net increase (decrease) in net assets from stockholder transactions	(45,180)		(42,394)		(138,792)		(143,468)
Capital share transactions:
Issuance of common stock in connection with the OSI2 Merger	—		—		—		334,034
Issuance of common stock under dividend reinvestment plan	1,873		1,123		5,662		4,351
Repurchase of common stock under dividend reinvestment plan	—		(1,123)		—		(2,418)
Issuance of common stock in connection with the "at the market" offering	14,221		—		92,507		—
Net increase (decrease) in net assets from capital share transactions	16,094		—		98,169		335,967
Total increase (decrease) in net assets	(27,966)		(5,709)		(19,631)		263,878
Net assets at beginning of period	1,524,099		1,515,150		1,515,764		1,245,563
Net assets at end of period	$	1,496,133	$	1,509,441	$	1,496,133	$	1,509,441
Net asset value per common share (1)	$	18.19	$	19.58	$	18.19	$	19.58
Common shares outstanding at end of period (1)	82,245		77,080		82,245		77,080

__________

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Nine months ended June 30, 2024		Nine months ended June 30, 2023
Operating activities:
Net increase (decrease) in net assets resulting from operations	$	20,992	$	71,379
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	24,078		42,300
Net realized (gains) losses	84,508		19,917
PIK interest income	(14,814)		(14,220)
Accretion of original issue discount on investments	(12,017)		(15,554)
Accretion of original issue discount on unsecured notes payable	978		509
Amortization of deferred financing costs	3,762		3,407
Deferred taxes	(5)		(1,030)
Purchases of investments	(1,025,659)		(597,662)
Proceeds from the sales and repayments of investments	723,758		521,163
Cash received in the OSI2 Merger	—		22,317
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable	12,518		12,866
(Increase) decrease in due from portfolio companies	5,363		20,520
(Increase) decrease in receivables from unsettled transactions	36,681		(34,562)
(Increase) decrease in due from broker	23,950		5,540
(Increase) decrease in other assets	(918)		(548)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	120		(52,290)
Increase (decrease) in base management fee and incentive fee payable	(4,132)		37
Increase (decrease) in due to affiliate	493		3,823
Increase (decrease) in interest payable	3,322		1,278
Increase (decrease) in payables from unsettled transactions	40,589		(24,196)
Increase (decrease) in director fees payable	—		(9)
Net cash provided by (used in) operating activities	(76,433)		(15,015)
Financing activities:
Distributions paid in cash	(133,130)		(139,117)
Borrowings under credit facilities	205,000		572,000
Repayments of borrowings under credit facilities	(125,000)		(362,000)
Shares issued under the "at the market" offering	92,748		—
Repurchases of common stock under dividend reinvestment plan	—		(2,418)
Deferred financing costs paid	(1,039)		(7,314)
Deferred offering costs paid	(117)		(186)
Net cash provided by (used in) financing activities	38,462		60,965
Effect of exchange rate changes on foreign currency	(254)		346
Net increase (decrease) in cash and cash equivalents and restricted cash	(38,225)		46,296
Cash and cash equivalents and restricted cash, beginning of period	145,539		26,364
Cash and cash equivalents and restricted cash, end of period	$	107,314	$	72,660
Supplemental information:
Cash paid for interest	$	88,502	$	70,429
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan	$	5,662	1,933
Deferred financing costs	1,000		125
Issuance of shares in connection with the OSI2 Merger	—		334,034
Reconciliation to the Consolidated Statements of Assets and Liabilities	June 30, 2024		September 30, 2023
Cash and cash equivalents	$	96,321	$	136,450
Restricted cash	10,993		9,089
Total cash and cash equivalents and restricted cash	$	107,314	$	145,539

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares		Principal (7)		Cost		Fair Value		Notes
Control Investments																(8)(9)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Common Stock						829				$	—	$	—	(15)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Preferred Equity						34,984,460				34,984		27,638		(15)
Continental Intermodal Group LP	Oil & Gas Storage & Transportation	Preferred Equity						3,137,476				3,137		3,263		(15)
Continental Intermodal Group LP	Oil & Gas Storage & Transportation	Common Stock						22,267,661				16,172		14,474		(15)
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.48%		8/28/2025			$	13,963	13,963		13,081		(6)(15)
Dominion Diagnostics, LLC	Health Care Services	First Lien Revolver	SOFR+	5.00%	10.48%		8/28/2025			5,574		5,574		5,222		(6)(15)
Dominion Diagnostics, LLC	Health Care Services	Common Stock						30,031				15,222		—		(15)
OCSI Glick JV LLC	Multi-Sector Holdings	Subordinated Debt	SOFR+	4.50%	9.94%		10/20/2028			58,349		51,307		49,886		(6)(11)(14)(15)(19)
OCSI Glick JV LLC	Multi-Sector Holdings	Membership Interest						87.5	%			—		—		(11)(14)(16)(19)
Senior Loan Fund JV I, LLC	Multi-Sector Holdings	Subordinated Debt	SOFR+	7.00%	12.44%		12/29/2028			112,656		112,656		112,656		(6)(11)(14)(15)(19)
Senior Loan Fund JV I, LLC	Multi-Sector Holdings	Membership Interest						87.5	%			54,791		25,817		(11)(12)(14)(16)(19)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan				12.00%	8/3/2028			2,682		2,629		2,682		(15)(19)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan				12.00%	8/3/2028			17,363		15,743		17,363		(15)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan				12.00%	8/3/2028			3,442		3,389		3,442		(15)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	Common Stock						1,184,630				40,093		23,548		(15)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	Warrants						66,686				—		—		(15)
Total Control Investments (20.0% of net assets)												$	369,660	$	299,072

Affiliate Investments																(17)
All Web Leads, Inc.	Advertising	First Lien Term Loan	SOFR+	4.00%	7.34%	2.00%	9/29/2026			$	1,809	$	1,740	$	1,731	(6)(15)
All Web Leads, Inc.	Advertising	First Lien Term Loan	SOFR+	5.00%	8.34%	2.00%	3/29/2027			3,602		3,444		3,429		(6)(15)
All Web Leads, Inc.	Advertising	First Lien Term Loan				10.00%	3/29/2028			3,451		3,026		3,102		(15)(20)
All Web Leads, Inc.	Advertising	First Lien Revolver	SOFR+	4.00%	9.34%		3/30/2026			1,560		1,513		1,506		(6)(15)(19)
All Web Leads, Inc.	Advertising	Common Stock						11,499				1,622		1,622		(15)
Assembled Brands Capital LLC	Specialized Finance	Common Stock						12,463,242				1,963		1,246		(15)
Assembled Brands Capital LLC	Specialized Finance	Warrants						78,045				—		—		(15)
The Avery	Real Estate Operating Companies	First Lien Term Loan				10.00%	2/16/2028			5,065		4,657		4,112		(15)(20)
The Avery	Real Estate Operating Companies	First Lien Term Loan				10.00%	2/16/2028			20,917		19,261		18,421		(15)(20)
The Avery	Real Estate Operating Companies	Membership Interest						6.4	%			—		—		(15)
Caregiver Services, Inc.	Health Care Services	Preferred Equity						1,080,398				875		227		(15)
Total Affiliate Investments (2.4% of net assets)												$	38,101	$	35,396

Non-Control/Non-Affiliate Investments																(18)
107 Fair Street LLC	Real Estate Development	First Lien Term Loan			13.00%		11/17/2024			$	1,269	$	1,256	$	1,214	(10)(15)(19)
107-109 Beech OAK22 LLC	Real Estate Development	First Lien Revolver			11.00%		2/27/2026			18,869		18,697		18,640		(15)(19)
112-126 Van Houten Real22 LLC	Real Estate Development	First Lien Term Loan			13.00%		11/4/2024			5,035		5,021		4,986		(10)(15)(19)
A.T. Holdings II Ltd.	Biotechnology	First Lien Term Loan			14.25%		9/13/2029			21,434		21,590		21,541		(11)(15)(21)
A.T. Holdings II SÀRL	Biotechnology	First Lien Term Loan				22.50%	4/30/2024			7,074		7,028		7,056		(11)(15)(20)
Access CIG, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.00%	10.33%		8/18/2028			1,990		1,980		2,005		(6)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Accupac, Inc.	Personal Care Products	First Lien Term Loan	SOFR+	6.00%			1/16/2026		$	—	$	(2)	$	(8)	(6)(15)(19)
Accupac, Inc.	Personal Care Products	First Lien Term Loan	SOFR+	6.00%	11.50%		1/16/2026		20,077		20,021		20,037		(6)(15)
Accupac, Inc.	Personal Care Products	First Lien Revolver	SOFR+	6.00%	11.48%		1/16/2026		2,613		2,600		2,608		(6)(15)
Acquia Inc.	Application Software	First Lien Term Loan	SOFR+	7.00%	12.45%		10/31/2025		6,400		6,358		6,400		(6)(15)
Acquia Inc.	Application Software	First Lien Term Loan	SOFR+	7.00%	12.45%		10/31/2025		25,332		25,304		25,332		(6)(15)
Acquia Inc.	Application Software	First Lien Revolver	SOFR+	7.00%	12.46%		10/31/2025		1,084		1,077		1,084		(6)(15)(19)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	11.82%		12/18/2025		3,177		3,155		3,078		(6)(15)(19)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.09%		12/18/2025		900		891		873		(6)(15)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.10%		12/18/2025		16,546		16,449		16,049		(6)(15)
ADC Therapeutics SA	Biotechnology	First Lien Term Loan	SOFR+	7.50%	12.98%		8/15/2029		6,589		6,341		6,424		(6)(11)(15)
ADC Therapeutics SA	Biotechnology	Common Stock						1,211,412			—		—		(11)
ADC Therapeutics SA	Biotechnology	Warrants						28,948			174		36		(11)(15)
AIP RD Buyer Corp.	Distributors	Common Stock						17,870			1,733		2,157		(15)
AirStrip Technologies, Inc.	Application Software	Warrants						5,715			90		—		(15)
Alto Pharmacy Holdings, Inc.	Health Care Technology	First Lien Term Loan	SOFR+	11.50%	4.94%	11.99%	10/14/2027		9,903		9,396		9,086		(6)(15)
Alto Pharmacy Holdings, Inc.	Health Care Technology	Warrants						598,283			642		1,226		(15)
Alvogen Pharma US, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	12.98%		6/30/2025		16,371		16,332		15,143		(6)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			12.00%		11/16/2026		28,964		28,866		28,964		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			12.00%		11/16/2026		28,178		28,100		28,178		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			12.00%		11/16/2026		2,159		1,981		2,159		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			12.00%		11/16/2026		2,100		1,926		2,100		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Common Stock						118,744			206		1,444		(11)
Alvotech Holdings S.A.	Biotechnology	Common Stock						70,820			283		627		(11)(13)(15)
American Auto Auction Group, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.00%	10.48%		12/30/2027		2,494		2,476		2,495		(6)
American Auto Auction Group, LLC	Diversified Support Services	Second Lien Term Loan	SOFR+	8.75%	14.23%		1/2/2029		17,048		16,527		16,110		(6)(15)
American Tire Distributors, Inc.	Distributors	First Lien Term Loan	SOFR+	6.25%	11.84%		10/20/2028		7,489		6,974		5,461		(6)
Amspec Parent LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.75%	11.08%		12/5/2030		33,474		32,706		33,474		(6)(15)
Amspec Parent LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.75%			12/5/2030		—		(60)		(60)		(6)(15)(19)
Amspec Parent LLC	Diversified Support Services	First Lien Revolver	SOFR+	5.75%			12/5/2029		—		(103)		—		(6)(15)(19)
Anchorage Capital CLO 20, LTD.	Multi-Sector Holdings	CLO Notes	SOFR+	7.61%	12.94%		1/20/2035		750		715		735		(6)(11)
Arches Buyer Inc.	Interactive Media & Services	First Lien Term Loan	SOFR+	5.50%	10.84%		12/6/2027		47,690		47,067		47,690		(6)(15)
Ares XLIV CLO	Multi-Sector Holdings	CLO Notes	SOFR+	7.13%	12.46%		4/15/2034		3,500		3,398		3,514		(6)(11)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	6.00%	11.59%		12/29/2027		3,251		3,242		3,091		(6)(11)(15)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Revolver	SOFR+	6.00%	11.46%		12/29/2027		162		151		143		(6)(11)(15)(19)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	6.75%	12.08%		2/25/2028		7,927		7,828		7,273		(6)(15)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	5.25%	10.58%		10/25/2028		12,537		10,534		5,881		(6)(15)
athenahealth Group Inc.	Health Care Technology	Fixed Rate Bond			6.50%		2/15/2030		3,177		2,827		2,928
athenahealth Group Inc.	Health Care Technology	Preferred Equity						21,523			20,789		22,650		(15)
ATNX SPV, LLC	Pharmaceuticals	First Lien Term Loan				15.89%	5/31/2031		13,562		13,591		13,324		(11)(15)(21)
Aurelia Netherlands Midco 2 B.V.	Interactive Media & Services	First Lien Term Loan	E+	5.75%	9.55%		5/29/2031		€	28,022	29,705		29,447		(6)(11)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Aurora Lux Finco S.À.R.L.	Airport Services	First Lien Term Loan	SOFR+	7.00%	8.43%	4.00%	12/24/2026		$	30,406	$	30,141	$	29,372	(6)(11)(15)
Avalara, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.58%		10/19/2028		50,470		49,796		50,470		(6)(15)
Avalara, Inc.	Application Software	First Lien Revolver	SOFR+	7.25%			10/19/2028		—		(92)		—		(6)(15)(19)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.60%		6/11/2027		3,222		3,192		3,096		(6)(15)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.60%		6/11/2027		1,252		1,258		1,203		(6)(15)
BAART Programs, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.50%	14.10%		6/11/2028		6,452		6,386		5,704		(6)(15)
BAART Programs, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.50%	14.10%		6/11/2028		8,920		8,818		7,885		(6)(15)
Bain Capital Credit CLO, Limited	Multi-Sector Holdings	CLO Notes	SOFR+	7.54%	12.87%		4/20/2034		1,750		1,733		1,784		(6)(11)
Ballyrock CLO 19 Ltd.	Multi-Sector Holdings	CLO Notes	SOFR+	7.11%	12.43%		4/20/2035		1,000		992		1,000		(6)(11)
Berner Food & Beverage, LLC	Soft Drinks & Non-alcoholic Beverages	First Lien Term Loan	SOFR+	5.50%	10.98%		7/30/2027		40,349		40,173		39,946		(6)(15)
Berner Food & Beverage, LLC	Soft Drinks & Non-alcoholic Beverages	First Lien Revolver	SOFR+	5.50%	10.98%		7/30/2026		2,528		2,503		2,497		(6)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%			4/19/2027		—		—		—		(6)(11)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	8.03%	4.81%	4/19/2027		2,893		2,891		2,587		(6)(11)(15)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	8.03%	4.81%	4/19/2027		6,974		6,819		6,237		(6)(11)(15)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%			4/19/2027		—		—		—		(6)(11)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%			4/19/2027		—		—		—		(6)(11)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	Warrants						32,664			225		3		(11)(15)
BioXcel Therapeutics, Inc.	Pharmaceuticals	Warrants						9,382			—		1		(11)(15)
Birch Grove CLO 2 LTD	Multi-Sector Holdings	CLO Notes	SOFR+	7.21%	12.54%		10/19/2034		1,500		1,498		1,503		(6)(11)
Blackhawk Network Holdings, Inc.	Data Processing & Outsourced Services	First Lien Term Loan	SOFR+	5.00%	10.34%		3/12/2029		36,384		35,698		36,509		(6)
Blumenthal Temecula, LLC	Automotive Retail	Preferred Equity						1,708,618			1,711		2,085		(15)
Blumenthal Temecula, LLC	Automotive Retail	Preferred Equity						394,297			395		457		(15)
Blumenthal Temecula, LLC	Automotive Retail	Common Stock						394,297			424		154		(15)
CBAM 2017-2, LTD.	Multi-Sector Holdings	CLO Notes	SOFR+	7.36%	12.68%		7/17/2034		489		458		468		(6)(11)
CD&R Firefly Bidco Limited	Other Specialty Retail	First Lien Term Loan	SONIA+	5.75%	11.06%		6/21/2028		£	1,500	1,866		1,900		(6)(11)
CD&R Firefly Bidco Limited	Other Specialty Retail	First Lien Term Loan	SONIA+	5.75%	10.95%		6/21/2028		14,807		18,461		18,771		(6)(11)
CD&R Firefly Bidco Limited	Other Specialty Retail	First Lien Term Loan	SONIA+	5.50%	10.70%		6/21/2028		13,225		16,445		16,755		(6)(11)
Centralsquare Technologies, LLC	Application Software	First Lien Term Loan	SOFR+	3.00%	8.33%	3.50%	4/12/2030		$	12,712	12,408		12,417		(6)(15)
Centralsquare Technologies, LLC	Application Software	First Lien Revolver	SOFR+	6.00%			4/12/2030		—		(35)		(33)		(6)(15)(19)
Cloud Software Group, Inc.	Application Software	Fixed Rate Bond			6.50%		3/31/2029		2,300		2,136		2,210
Condor Merger Sub Inc.	Systems Software	Fixed Rate Bond			7.38%		2/15/2030		10,720		10,310		9,911
Connect U.S. Finco LLC	Alternative Carriers	Fixed Rate Bond			6.75%		10/1/2026		1,310		1,281		1,265		(11)
Conviva Inc.	Application Software	Preferred Equity						417,851			605		894		(15)
CoreRx, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	12.83%		4/6/2029		6,494		6,339		6,347		(6)(15)
Coupa Holdings, LLC	Application Software	First Lien Term Loan	SOFR+	5.50%			2/27/2030		—		(15)		—		(6)(15)(19)
Coupa Holdings, LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.83%		2/27/2030		13,157		12,890		13,157		(6)(15)
Coupa Holdings, LLC	Application Software	First Lien Revolver	SOFR+	5.50%			2/27/2029		—		(18)		—		(6)(15)(19)
Covetrus, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.00%	10.33%		10/13/2029		14,639		14,132		14,189		(6)
Crewline Buyer, Inc.	Systems Software	First Lien Term Loan	SOFR+	6.75%	12.08%		11/8/2030		20,924		20,449		20,506		(6)(15)
Crewline Buyer, Inc.	Systems Software	First Lien Revolver	SOFR+	6.75%			11/8/2030		—		(49)		(44)		(6)(15)(19)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Crown Subsea Communications Holding, Inc.	Alternative Carriers	First Lien Term Loan	SOFR+	4.75%	10.08%		1/30/2031		$	14,000	$	13,860	$	14,055	(6)
Delta Leasing SPV II LLC	Specialized Finance	Subordinated Debt Term Loan			8.00%	3.00%	8/31/2029		8,393		8,393		8,393		(11)(15)(19)
Delta Leasing SPV II LLC	Specialized Finance	Subordinated Debt Term Loan			3.00%	7.00%	8/31/2029		33,726		33,726		33,726		(11)(15)
Delta Leasing SPV II LLC	Specialized Finance	Preferred Equity						419			419		505		(11)(15)
Delta Leasing SPV II LLC	Specialized Finance	Common Stock						2			2		2		(11)(15)
Delta Leasing SPV II LLC	Specialized Finance	Warrants						31			—		—		(11)(15)
Dialyze Holdings, LLC	Health Care Equipment	First Lien Term Loan	SOFR+	9.00%		16.48%	8/4/2026		22,683		22,233		20,302		(6)(15)
Dialyze Holdings, LLC	Health Care Equipment	First Lien Term Loan	SOFR+	9.00%		14.48%	2/4/2027		627		627		561		(6)(15)
Dialyze Holdings, LLC	Health Care Equipment	First Lien Term Loan	SOFR+	9.00%		14.48%	4/8/2025		620		620		555		(6)(15)
Dialyze Holdings, LLC	Health Care Equipment	Subordinated Debt Term Loan				10.00%	9/30/2027		694		690		359		(15)(20)
Dialyze Holdings, LLC	Health Care Equipment	Subordinated Debt Term Loan				10.00%	9/30/2027		935		—		484		(15)(20)
Dialyze Holdings, LLC	Health Care Equipment	Subordinated Debt Term Loan				10.00%	4/8/2025		928		—		480		(15)(20)
Dialyze Holdings, LLC	Health Care Equipment	Warrants						6,397,254			1,642		—		(15)
Digital.AI Software Holdings, Inc.	Application Software	First Lien Term Loan	SOFR+	6.00%	11.33%		8/10/2028		54,595		54,592		54,268		(6)(15)
Digital.AI Software Holdings, Inc.	Application Software	First Lien Term Loan	SOFR+	6.00%	11.32%		8/10/2028		2,946		2,919		2,929		(6)(15)
Digital.AI Software Holdings, Inc.	Application Software	First Lien Revolver	SOFR+	6.00%			8/10/2028		—		—		(36)		(6)(15)(19)
DirecTV Financing, LLC	Cable & Satellite	First Lien Term Loan	SOFR+	5.25%	10.71%		8/2/2029		4,311		4,288		4,297
DTI Holdco, Inc.	Research & Consulting Services	First Lien Term Loan	SOFR+	4.75%	10.09%		4/26/2029		4,913		4,844		4,939		(6)
Eagleview Technology Corporation	Application Software	Second Lien Term Loan	SOFR+	7.50%	12.98%		8/14/2026		8,974		8,884		8,121		(6)(15)
Enverus Holdings, Inc.	Application Software	First Lien Term Loan	SOFR+	5.50%	10.84%		12/24/2029		24,803		24,431		24,803		(6)(15)
Enverus Holdings, Inc.	Application Software	First Lien Term Loan	SOFR+	5.50%			12/24/2029		—		(17)		—		(6)(15)(19)
Enverus Holdings, Inc.	Application Software	First Lien Revolver	SOFR+	5.50%			12/24/2029		—		(26)		—		(6)(15)(19)
EOS Fitness Opco Holdings, LLC	Leisure Facilities	Preferred Equity						488			488		1,345		(15)
EOS Fitness Opco Holdings, LLC	Leisure Facilities	Common Stock						12,500			—		—		(15)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		1,854		1,835		1,821		(11)(15)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		—		1		—		(11)(15)(19)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		—		1		—		(11)(15)(19)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		11,576		11,487		11,373		(11)(15)
Evergreen IX Borrower 2023, LLC	Application Software	First Lien Term Loan	SOFR+	6.00%	11.33%		9/30/2030		14,662		14,335		14,662		(6)(15)
Evergreen IX Borrower 2023, LLC	Application Software	First Lien Revolver	SOFR+	6.00%			10/1/2029		—		(36)		—		(6)(15)(19)
Eyesouth Eye Care Holdco LLC	Health Care Services	First Lien Term Loan	SOFR+	5.50%	10.93%		10/5/2029		4,379		4,296		4,296		(6)(15)
Eyesouth Eye Care Holdco LLC	Health Care Services	First Lien Term Loan	SOFR+	5.50%			10/5/2029		—		(66)		(125)		(6)(15)(19)
Eyesouth Eye Care Holdco LLC	Health Care Services	Common Stock						169			169		176		(15)
Eyesouth Eye Care Holdco LLC	Health Care Services	Common Stock						1,037			1,037		1,078		(15)(23)
Fairbridge Strategic Capital Funding LLC	Real Estate Operating Companies	First Lien Term Loan			9.00%		12/24/2028		56,900		56,900		56,900		(15)
Fairbridge Strategic Capital Funding LLC	Real Estate Operating Companies	Warrants						3,750			—		4		(11)(12)(15)
Finastra USA, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.46%		9/13/2029		11,713		11,510		11,566		(6)(11)(15)
Finastra USA, Inc.	Application Software	First Lien Revolver	SOFR+	7.25%	12.58%		9/13/2029		129		108		114		(6)(11)(15)(19)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Finthrive Software Intermediate Holdings, Inc.	Health Care Technology	First Lien Term Loan	SOFR+	4.00%	9.61%		12/18/2028		$	4,302	$	3,562	$	3,522	(6)
FINThrive Software Intermediate Holdings, Inc.	Health Care Technology	Second Lien Term Loan	SOFR+	6.75%	12.21%		12/17/2029		31,074		29,316		21,493		(6)
Fortress Biotech, Inc.	Biotechnology	First Lien Term Loan			11.00%		8/27/2025		11,918		11,733		11,918		(11)(15)
Fortress Biotech, Inc.	Biotechnology	Warrants						417,011			427		63		(11)(15)
Frontier Communications Holdings, LLC	Integrated Telecommunication Services	Fixed Rate Bond			6.00%		1/15/2030		7,881		6,993		6,868		(11)
Frontier Issuer LLC	Specialized Finance	CLO Notes			11.16%		6/20/2054		7,439		7,438		7,451		(11)
Galileo Parent, Inc.	Aerospace & Defense	First Lien Term Loan	SOFR+	7.25%	12.58%		5/3/2029		23,595		23,025		23,595		(6)(15)
Galileo Parent, Inc.	Aerospace & Defense	First Lien Revolver	SOFR+	7.25%	12.59%		5/3/2029		2,219		2,130		2,219		(6)(15)(19)
GoldenTree Loan Management EUR CLO 2 DAC	Multi-Sector Holdings	CLO Notes	E+	2.85%	6.75%		1/20/2032		€	1,000	887		1,064		(6)(11)
Grove Hotel Parcel Owner, LLC	Hotels, Resorts & Cruise Lines	First Lien Term Loan	SOFR+	8.00%			6/21/2027		$	—	(43)		(70)		(6)(15)(19)
Grove Hotel Parcel Owner, LLC	Hotels, Resorts & Cruise Lines	First Lien Term Loan	SOFR+	8.00%	13.44%		6/21/2027		17,312		17,179		16,966		(6)(15)
Grove Hotel Parcel Owner, LLC	Hotels, Resorts & Cruise Lines	First Lien Revolver	SOFR+	8.00%			6/21/2027		—		(22)		(35)		(6)(15)(19)
Harbor Purchaser Inc.	Education Services	First Lien Term Loan	SOFR+	5.25%	10.70%		4/9/2029		8,494		8,211		8,105		(6)
Harrow, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	6.50%			1/19/2026		—		(55)		—		(6)(11)(15)(19)
Harrow, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	6.50%	11.98%		1/19/2026		1,432		1,410		1,432		(6)(11)(15)
Harrow, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	6.50%	11.98%		1/19/2026		7,448		7,345		7,448		(6)(11)(15)
Horizon Aircraft Finance I Ltd.	Specialized Finance	CLO Notes			4.46%		12/15/2038		8,085		6,671		7,379		(11)
HPS Loan Management 10-2016	Multi-Sector Holdings	CLO Notes	SOFR+	6.67%	12.00%		4/20/2034		2,250		2,135		2,238		(6)(11)
Husky Injection Molding Systems Ltd.	Industrial Machinery & Supplies & Components	Fixed Rate Bond			9.00%		2/15/2029		1,551		1,551		1,608		(11)
IAMGOLD Corporation	Gold	Second Lien Term Loan	SOFR+	8.25%	13.57%		5/16/2028		23,975		23,418		23,867		(6)(11)(15)
Icefall Parent, Inc.	Application Software	First Lien Term Loan	SOFR+	6.50%	11.83%		1/25/2030		10,446		10,252		10,266		(6)(15)
Icefall Parent, Inc.	Application Software	First Lien Revolver	SOFR+	6.50%			1/25/2030		—		(18)		(17)		(6)(15)(19)
iCIMs, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.58%		8/18/2028		25,155		24,910		24,325		(6)(15)
iCIMs, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.58%		8/18/2028		3,636		3,607		3,578		(6)(15)
iCIMs, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%			8/18/2028		—		—		—		(6)(15)(19)
iCIMs, Inc.	Application Software	First Lien Revolver	SOFR+	6.75%	12.08%		8/18/2028		315		189		154		(6)(15)(19)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%			3/17/2027		822		810		548		(6)(15)(20)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%			3/17/2027		1,834		1,783		1,223		(6)(15)(20)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%			3/17/2027		689		647		459		(6)(15)(20)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%			3/17/2027		25,364		24,265		7,657		(6)(15)(20)
Impel Pharmaceuticals Inc.	Health Care Technology	Warrants						350,241			—		—
Innocoll Pharmaceuticals Limited	Health Care Technology	Warrants						112,990			300		—		(11)(15)
Integral Development Corporation	Diversified Financial Services	Warrants						1,078,284			113		—		(15)
Inventus Power, Inc.	Electrical Components & Equipment	First Lien Term Loan	SOFR+	7.50%	12.96%		6/30/2025		33,120		32,791		32,371		(6)(15)
Inventus Power, Inc.	Electrical Components & Equipment	First Lien Revolver	SOFR+	7.50%			6/30/2025		—		(57)		(86)		(6)(15)(19)
INW Manufacturing, LLC	Personal Care Products	First Lien Term Loan	SOFR+	5.75%	11.35%		3/25/2027		42,694		41,467		35,863		(6)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
IPC Corp.	Application Software	First Lien Term Loan	SOFR+	6.50%	11.96%		10/1/2026		$	40,587	$	40,098	$	39,572	(6)(15)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Term Loan	SOFR+	6.50%	11.90%		10/29/2027		37,825		37,364		37,352		(6)(15)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Term Loan	SOFR+	6.50%	12.50%		10/29/2027		16,637		16,508		16,429		(6)(15)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Revolver	PRIME+	4.00%	12.50%		10/29/2027		787		748		747		(6)(15)(19)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Revolver	PRIME+	4.00%	12.50%		10/29/2027		579		551		491		(6)(15)(19)
LABL, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.00%	10.44%		10/29/2028		19,401		18,879		19,188		(6)
Latam Airlines Group S.A.	Passenger Airlines	First Lien Term Loan	SOFR+	9.50%	14.95%		10/12/2027		26,223		25,009		26,924		(6)(11)
Learfield Communications, LLC	Movies & Entertainment	First Lien Term Loan	SOFR+	5.50%	10.84%		6/30/2028		30,934		30,857		31,176		(6)
Lightbox Intermediate, L.P.	Real Estate Services	First Lien Term Loan	SOFR+	5.00%	10.60%		5/9/2026		44,889		44,517		43,542		(6)(15)
Liquid Environmental Solutions Corporation	Environmental & Facilities Services	Second Lien Term Loan	SOFR+	9.50%	5.00%	9.93%	11/30/2026		3,165		3,120		2,999		(6)(15)
Liquid Environmental Solutions Corporation	Environmental & Facilities Services	Second Lien Term Loan	SOFR+	9.50%	5.00%	9.93%	11/30/2026		5,818		5,776		5,512		(6)(15)
Liquid Environmental Solutions Corporation	Environmental & Facilities Services	Common Stock						559			563		238		(15)
LSL Holdco, LLC	Health Care Distributors	First Lien Term Loan	SOFR+	6.00%	11.44%		1/31/2028		2,715		2,600		2,545		(6)(15)
LSL Holdco, LLC	Health Care Distributors	First Lien Term Loan	SOFR+	6.00%	11.44%		1/31/2028		23,315		23,015		21,858		(6)(15)
LSL Holdco, LLC	Health Care Distributors	First Lien Revolver	SOFR+	6.00%	11.44%		1/31/2028		2,120		2,086		1,955		(6)(15)(19)
Marinus Pharmaceuticals, Inc.	Pharmaceuticals	First Lien Term Loan			11.50%		5/11/2026		8,353		8,302		7,894		(11)(15)
Marinus Pharmaceuticals, Inc.	Pharmaceuticals	First Lien Term Loan			11.50%		5/11/2026		4,070		4,045		3,846		(11)(15)
Marinus Pharmaceuticals, Inc.	Pharmaceuticals	First Lien Term Loan			11.50%		5/11/2026		4,177		4,151		3,947		(11)(15)
Mesoblast, Inc.	Biotechnology	First Lien Term Loan			9.75%		11/19/2026		7,660		7,323		7,296		(11)(15)
Mesoblast, Inc.	Biotechnology	Warrants						66,817			23		251		(11)(15)
Mesoblast, Inc.	Biotechnology	Warrants						259,877			545		689		(11)(15)
MHE Intermediate Holdings, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	6.00%	11.48%		7/21/2027		2,611		2,568		2,582		(6)(15)
MHE Intermediate Holdings, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	6.00%	11.48%		7/21/2027		11,176		11,080		11,055		(6)(15)
MHE Intermediate Holdings, LLC	Diversified Support Services	First Lien Revolver	SOFR+	6.00%			7/21/2027		—		(23)		(19)		(6)(15)(19)
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	7.00%	12.48%		9/30/2025		51,356		51,059		50,688		(6)(15)
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	7.00%	12.48%		9/30/2025		2,294		2,253		2,264		(6)(15)
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Revolver	SOFR+	7.00%			9/30/2025		—		(29)		(68)		(6)(15)(19)
Minotaur Acquisition, Inc.	Financial Exchanges & Data	First Lien Term Loan	SOFR+	5.00%	10.35%		5/13/2030		7,056		6,917		6,918		(6)(11)(15)
Minotaur Acquisition, Inc.	Financial Exchanges & Data	First Lien Term Loan	SOFR+	5.00%			5/10/2026		—		(11)		(12)		(6)(11)(15)(19)
Minotaur Acquisition, Inc.	Financial Exchanges & Data	First Lien Term Loan	SOFR+	5.00%			5/10/2026		—		(11)		(12)		(6)(11)(15)(19)
Minotaur Acquisition, Inc.	Financial Exchanges & Data	First Lien Revolver	SOFR+	5.00%			5/13/2030		—		(14)		(14)		(6)(11)(15)(19)
Modena Buyer LLC	Application Software	First Lien Term Loan	SOFR+	4.50%	9.85%		7/1/2031		28,870		28,293		28,216		(6)
Monotype Imaging Holdings Inc.	Application Software	First Lien Term Loan	SOFR+	5.50%	10.85%		2/28/2031		38,422		37,846		37,899		(6)(15)
Monotype Imaging Holdings Inc.	Application Software	First Lien Term Loan	SOFR+	5.50%			2/28/2031		—		(24)		(22)		(6)(15)(19)
Monotype Imaging Holdings Inc.	Application Software	First Lien Revolver	SOFR+	5.50%			2/28/2030		—		(68)		(65)		(6)(15)(19)
Mosaic Companies, LLC	Home Improvement Retail	First Lien Term Loan	SOFR+	8.25%	10.58%	3.25%	7/2/2026		49,669		49,457		48,378		(6)(15)
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.93%		2/10/2027		21,162		20,873		21,043		(6)(15)
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.93%		2/10/2027		13,865		13,830		13,787		(6)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.75%	11.08%		2/10/2027		$	841	$	837	$	841	(6)(15)(19)
MRI Software LLC	Application Software	First Lien Revolver	SOFR+	5.50%			2/10/2027		—		(52)		(15)		(6)(15)(19)
NeuAG, LLC	Fertilizers & Agricultural Chemicals	First Lien Term Loan	SOFR+	9.50%	14.82%		9/11/2024		64,606		64,630		63,185		(6)(15)
Next Holdco, LLC	Health Care Technology	First Lien Term Loan	SOFR+	6.00%	11.32%		11/12/2030		19,945		19,646		19,945		(6)(15)
Next Holdco, LLC	Health Care Technology	First Lien Term Loan	SOFR+	6.00%			11/12/2030		—		(38)		(38)		(6)(15)(19)
Next Holdco, LLC	Health Care Technology	First Lien Revolver	SOFR+	6.00%			11/9/2029		—		(26)		—		(6)(15)(19)
NN, Inc.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	8.88%	12.32%	2.00%	9/19/2026		64,253		63,671		62,326		(6)(11)(15)
NN, Inc.	Industrial Machinery & Supplies & Components	Warrants						487,870			—		1,459		(11)
NN, Inc.	Industrial Machinery & Supplies & Components	Warrants						239,590			—		716		(11)
Northwoods Capital 25 Ltd	Multi-Sector Holdings	CLO Notes	SOFR+	7.40%	12.73%		7/20/2034		700		682		701		(6)(11)
OFSI Fund Ltd	Multi-Sector Holdings	CLO Notes	SOFR+	7.48%	12.81%		4/20/2034		1,105		1,048		1,072		(6)(11)
Oranje Holdco, Inc.	Systems Software	First Lien Term Loan	SOFR+	7.50%	12.83%		2/1/2029		15,231		14,940		15,193		(6)(15)
Oranje Holdco, Inc.	Systems Software	First Lien Term Loan	SOFR+	7.25%	12.59%		2/1/2029		4,047		3,969		3,966		(6)(15)
Oranje Holdco, Inc.	Systems Software	First Lien Revolver	SOFR+	7.50%			2/1/2029		—		(36)		(5)		(6)(15)(19)
OTG Management, LLC	Airport Services	First Lien Term Loan	SOFR+	9.50%		14.82%	2/11/2030		11,629		10,102		11,629		(6)(15)
OTG Management, LLC	Airport Services	Common Stock						2,613,034			22,330		14,032		(15)
OZLM XXIII Ltd	Multi-Sector Holdings	CLO Notes	SOFR+	7.28%	12.87%		4/15/2034		1,000		967		990		(6)(11)
Performance Health Holdings, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.75%	11.11%		7/12/2027		22,375		22,226		22,375		(6)(15)
PetVet Care Centers, LLC	Health Care Services	First Lien Term Loan	SOFR+	6.00%	11.34%		11/15/2030		52,376		51,422		51,234		(6)(15)
PetVet Care Centers, LLC	Health Care Services	First Lien Term Loan	SOFR+	6.00%			11/15/2030		—		(69)		(69)		(6)(15)(19)
PetVet Care Centers, LLC	Health Care Services	First Lien Revolver	SOFR+	6.00%			11/15/2029		—		(123)		(150)		(6)(15)(19)
PetVet Care Centers, LLC	Health Care Services	Preferred Equity						4,531			4,440		4,828		(15)
Pluralsight, LLC	Application Software	First Lien Term Loan	SOFR+	8.00%			4/6/2027		67,244		66,488		32,949		(6)(15)(20)
Pluralsight, LLC	Application Software	First Lien Revolver	SOFR+	8.00%			4/6/2027		4,790		4,723		2,347		(6)(15)(20)
PPW Aero Buyer, Inc.	Aerospace & Defense	First Lien Term Loan	SOFR+	7.00%	11.83%		2/15/2029		10,813		10,480		10,813		(6)(15)
PPW Aero Buyer, Inc.	Aerospace & Defense	First Lien Term Loan	SOFR+	5.50%	10.84%		2/15/2029		2,047		1,922		1,828		(6)(15)(19)
PPW Aero Buyer, Inc.	Aerospace & Defense	First Lien Revolver	SOFR+	6.00%	11.84%		2/15/2029		269		192		237		(6)(15)(19)
PRGX Global, Inc.	Data Processing & Outsourced Services	First Lien Term Loan	SOFR+	6.50%	11.98%		3/3/2026		26,282		26,068		26,282		(6)(15)
PRGX Global, Inc.	Data Processing & Outsourced Services	First Lien Revolver	SOFR+	6.50%			3/3/2026		—		(23)		—		(6)(15)(19)
PRGX Global, Inc.	Data Processing & Outsourced Services	Common Stock						100,000			109		399		(15)
Profrac Holdings II, LLC	Industrial Machinery & Supplies & Components	First Lien Floating Rate Bond	SOFR+	7.25%	12.57%		1/23/2029		27,176		26,904		26,940		(6)(11)(15)
Protein For Pets Opco, LLC	Packaged Foods & Meats	First Lien Term Loan	SOFR+	5.25%	10.59%		9/20/2030		20,325		19,936		19,951		(6)(15)
Protein For Pets Opco, LLC	Packaged Foods & Meats	First Lien Revolver	SOFR+	5.25%			9/20/2030		—		(41)		(39)		(6)(15)(19)
Quantum Bidco Limited	Food Distributors	First Lien Term Loan	SONIA+	5.50%	10.98%		1/31/2028		£	9,739	12,073		11,942		(6)(11)(15)
Quantum Bidco Limited	Food Distributors	First Lien Term Loan	SONIA+	5.50%	10.70%		1/31/2028		2,123		2,534		2,550		(6)(11)(15)(19)
QuorumLabs, Inc.	Application Software	Preferred Equity						64,887,669			375		—		(15)
Relativity ODA LLC	Application Software	First Lien Term Loan	SOFR+	6.00%	11.44%		5/12/2027		$	32,329	32,124		32,200		(6)(15)
Relativity ODA LLC	Application Software	First Lien Revolver	SOFR+	6.50%			5/12/2027		—		(34)		(11)		(6)(15)(19)
RumbleOn, Inc.	Automotive Retail	First Lien Term Loan	SOFR+	8.25%	13.84%	0.50%	8/31/2026		8,812		8,596		8,305		(6)(11)(15)
RumbleOn, Inc.	Automotive Retail	First Lien Term Loan	SOFR+	8.25%	13.84%	0.50%	8/31/2026		29,198		28,503		27,519		(6)(11)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
RumbleOn, Inc.	Automotive Retail	Warrants						204,454			$	1,202	$	399	(11)(15)
Salus Workers' Compensation, LLC	Diversified Financial Services	First Lien Term Loan	SOFR+	10.00%	15.33%		10/7/2026		$	25,279	24,698		24,394		(6)(15)
Salus Workers' Compensation, LLC	Diversified Financial Services	First Lien Revolver	SOFR+	10.00%			10/7/2026		—		(71)		(109)		(6)(15)(19)
Salus Workers' Compensation, LLC	Diversified Financial Services	Warrants						991,019			327		277		(15)
Saratoga	Diversified Financial Services	Credit Linked Note	SOFR+	5.33%	10.65%		12/31/2029		24,500		24,500		24,500		(6)(11)(15)(22)
SCIH Salt Holdings Inc.	Diversified Chemicals	Fixed Rate Bond			4.88%		5/1/2028		1,680		1,553		1,565
Scilex Holding Co	Biotechnology	Common Stock						9,307			78		18		(11)
scPharmaceuticals Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	8.75%			10/13/2027				—		—		(6)(15)(19)
scPharmaceuticals Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	8.75%			10/13/2027		—		—		—		(6)(15)(19)
scPharmaceuticals Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	8.75%	11.75%		10/13/2027		5,212		5,029		5,056		(6)(15)
scPharmaceuticals Inc.	Pharmaceuticals	Warrants						53,700			175		121		(15)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%			4/27/2029		—		—		—		(6)(11)(15)(19)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%			4/27/2029		—		—		—		(6)(11)(15)(19)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%	12.88%		4/27/2029		7,191		6,969		7,191		(6)(11)(15)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%	12.88%		4/27/2029		2,697		2,614		2,697		(6)(11)(15)
Seres Therapeutics, Inc.	Biotechnology	Warrants						58,210			182		20		(11)(15)
SM Wellness Holdings, Inc.	Health Care Services	First Lien Term Loan	SOFR+	4.50%	10.09%		4/17/2028		4,418		3,883		4,368		(6)(15)
SM Wellness Holdings, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.00%	13.59%		4/16/2029		12,034		11,338		10,650		(6)(15)
Sorenson Communications, LLC	Communications Equipment	First Lien Term Loan	SOFR+	5.75%	11.09%		4/19/2029		48,642		47,708		47,747		(6)(15)
Sorenson Communications, LLC	Communications Equipment	First Lien Revolver	SOFR+	5.75%			4/19/2029		—		(104)		(100)		(6)(15)(19)
Sorrento Therapeutics, Inc.	Biotechnology	Common Stock						66,000			139		1		(11)
Spanx, LLC	Apparel Retail	First Lien Term Loan	SOFR+	5.25%	10.69%		11/20/2028		18,104		17,930		18,079		(6)(15)
Spanx, LLC	Apparel Retail	First Lien Revolver	SOFR+	5.00%			11/18/2027		—		(35)		(15)		(6)(15)(19)
SPX Flow, Inc.	Industrial Machinery & Supplies & Components	Fixed Rate Bond			8.75%		4/1/2030		1,109		1,072		1,140
Staples, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.75%	11.08%		9/4/2029		13,780		13,232		12,674		(6)
Staples, Inc.	Office Services & Supplies	Fixed Rate Bond			10.75%		9/1/2029		6,835		6,771		6,504
SumUp Holdings Luxembourg	Diversified Financial Services	First Lien Term Loan	E+	6.50%	10.32%		4/25/2031		€	18,846	20,199		19,945		(6)(11)(15)(19)
Superior Industries International, Inc.	Auto Parts & Equipment	First Lien Term Loan	SOFR+	8.00%	13.34%		12/16/2028		$	49,146	48,310		48,654		(6)(15)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Term Loan	SOFR+	7.00%	12.56%		12/31/2026		2,728		2,711		2,595		(6)(15)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Term Loan	SOFR+	7.00%	12.56%		12/31/2026		3,282		3,165		3,121		(6)(15)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Term Loan	SOFR+	7.00%	12.56%		12/31/2026		31,859		31,674		30,301		(6)(15)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Revolver	SOFR+	7.00%			12/31/2026		—		(9)		(76)		(6)(15)(19)
SVP-Singer Holdings Inc.	Home Furnishings	First Lien Term Loan	SOFR+	8.25%			7/28/2028		27,164		23,170		15,076		(6)(15)(20)
Telephone and Data Systems, Inc.	Wireless Telecommunication Services	Subordinated Debt Term Loan	SOFR+	7.00%	12.32%		5/1/2029		25,094		24,366		24,391		(6)(11)(15)
Telephone and Data Systems, Inc.	Wireless Telecommunication Services	Subordinated Debt Term Loan	SOFR+	7.00%			5/1/2029		—		(91)		(94)		(6)(11)(15)(19)
Telestream Holdings Corporation	Application Software	First Lien Term Loan	SOFR+	9.75%	5.44%	9.75%	10/15/2025		25,618		25,482		23,056		(6)(15)
Telestream Holdings Corporation	Application Software	First Lien Revolver	SOFR+	9.75%	5.44%	9.75%	10/15/2025		1,809		1,798		1,590		(6)(15)(19)
Ten-X LLC	Interactive Media & Services	First Lien Term Loan	SOFR+	6.00%	11.34%		5/26/2028		19,789		19,012		19,126		(6)(15)
THL Zinc Ventures Ltd	Diversified Metals & Mining	First Lien Term Loan			13.00%		5/23/2026		50,419		50,006		50,419		(11)(15)
Thrasio, LLC	Broadline Retail	First Lien Term Loan	SOFR+	10.00%		15.31%	6/18/2029		6,063		5,864		5,942		(6)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Thrasio, LLC	Broadline Retail	First Lien Term Loan	SOFR+	10.00%			6/18/2029		$	18,605	$	16,279	$	16,326	(6)(15)(20)
Thrasio, LLC	Broadline Retail	Common Stock						321,058			—		—		(15)
Touchstone Acquisition, Inc.	Health Care Supplies	First Lien Term Loan	SOFR+	6.00%	11.43%		12/29/2028		11,582		11,561		11,337		(6)(15)
Trinitas CLO VI Ltd.	Multi-Sector Holdings	CLO Notes	SOFR+	7.08%	12.40%		1/25/2034		905		851		860		(6)(11)
Trinitas CLO XV DAC	Multi-Sector Holdings	CLO Notes	SOFR+	7.71%	13.04%		4/22/2034		1,000		822		969		(6)(11)
Truck-Lite Co., LLC	Construction Machinery & Heavy Transportation Equipment	First Lien Term Loan	SOFR+	5.75%	11.07%		2/13/2031		26,524		26,022		26,051		(6)(15)
Truck-Lite Co., LLC	Construction Machinery & Heavy Transportation Equipment	First Lien Term Loan	SOFR+	5.75%			2/13/2031		—		(54)		(51)		(6)(15)(19)
Truck-Lite Co., LLC	Construction Machinery & Heavy Transportation Equipment	First Lien Revolver	SOFR+	5.75%	11.08%		2/13/2030		128		42		46		(6)(15)(19)
Uniti Group LP	Cable & Satellite	Fixed Rate Bond			6.50%		2/15/2029		2,830		2,573		1,808		(11)
Verona Pharma, Inc.	Pharmaceuticals	First Lien Term Loan			11.00%		5/9/2029		2,512		2,463		2,465		(11)(15)
Verona Pharma, Inc.	Pharmaceuticals	First Lien Term Loan			11.00%		5/9/2029		3,198		3,134		3,138		(11)(15)
Verona Pharma, Inc.	Pharmaceuticals	First Lien Term Loan					5/9/2029		—		—		—		(11)(15)(19)
Verona Pharma, Inc.	Pharmaceuticals	First Lien Term Loan					5/9/2029		—		—		—		(11)(15)(19)
Verona Pharma, Inc.	Pharmaceuticals	First Lien Term Loan					9/30/2024		4,568		4,568		4,568		(11)(15)(21)
Verona Pharma, Inc.	Pharmaceuticals	First Lien Term Loan					9/30/2025		—		—		—		(11)(15)(19)(21)
Win Brands Group LLC	Housewares & Specialties	First Lien Term Loan	SOFR+	14.00%	13.45%	6.00%	1/23/2026		2,726		2,704		2,508		(6)(15)
Win Brands Group LLC	Housewares & Specialties	Warrants						4,871			46		4		(15)
Windstream Services II, LLC	Integrated Telecommunication Services	Common Stock						127,452			2,057		1,657		(15)
WP CPP Holdings, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	7.50%	8.72%	4.13%	11/28/2029		30,324		29,654		30,142		(6)(15)
WP CPP Holdings, LLC	Aerospace & Defense	First Lien Revolver	SOFR+	6.75%			11/28/2029		—		(74)		(20)		(6)(15)(19)
Zep Inc.	Specialty Chemicals	First Lien Term Loan	SOFR+	4.00%	9.33%		10/2/2028		19,480		19,457		19,482		(6)(15)
Total Non-Control/Non-Affiliate Investments (186.3% of net assets)											$	2,885,171	$	2,787,235
Total Portfolio Investments (208.7% of net assets)											$	3,292,932	$	3,121,703
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares											$	37,364	$	37,364
Other cash accounts											69,950		69,950
Total Cash and Cash Equivalents and Restricted Cash (7.2% of net assets)											$	107,314	$	107,314
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (215.8% of net assets)											$	3,400,246	$	3,229,017

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)


Derivative Instrument	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Counterparty	Cumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract	$	54,193	€	49,683	8/8/2024	JPMorgan Chase Bank, N.A.	$	849
Foreign currency forward contract	$	55,206	£	43,988	8/8/2024	JPMorgan Chase Bank, N.A.	(413)
							$	436

Derivative Instrument

Company Receives

Company Pays

Counterparty

Maturity Date

Notional Amount

Fair Value

Interest rate swap

Fixed 2.7%

Floating 3-month SOFR +1.658%

Royal Bank of Canada

1/15/2027

$350,000

(30,683)

Interest rate swap

Fixed 7.1%

Floating 3-month SOFR +3.1255%

Royal Bank of Canada

2/15/2029

$300,000

(2,989)

(33,672)

(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.

(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.

(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.

(4)Each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.

(5)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.

(6)The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to the secured overnight financing rate ("SOFR"), the euro interbank offered rate ("EURIBOR" or "E"), the sterling overnight index average ("SONIA") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rate based on each respective credit agreement and the cash interest rate as of period end. As of June 30, 2024, the reference rates for the Company's variable rate loans were the 30-day SOFR at 5.34%, the 90-day SOFR at 5.32%, the 180-day SOFR at 5.23%, the PRIME at 8.50%, the SONIA at 5.23% and the 90-day EURIBOR at 3.82%. Most loans include an interest floor, which generally ranges from 0% to 3.00%. SOFR and SONIA based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(7)Principal includes accumulated payment in kind ("PIK") interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

(8)Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the nine months ended June 30, 2024 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(10)This investment represents a participation interest in the underlying securities shown.

(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of June 30, 2024, qualifying assets represented 72.7% of the Company's total assets and non-qualifying assets represented 27.3% of the Company's total assets.

(12)Income producing through payment of dividends or distributions.

(13)This investment represents Seller Earn Out Shares in Alvotech SA. The Seller Earn Out Shares will vest if, at any time through June 16, 2027, the Alvotech SA common share price is at or above a volume weighted average price ("VWAP") of $20.00 per share for any ten trading days within any twenty trading day period.

(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.

(15)As of June 30, 2024, these investments were categorized as Level 3 within the fair value hierarchy established by Financial Accounting Standards Board ("FASB") guidance under Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("ASC 820").

(16)This investment was valued using net asset value as a practical expedient for fair value. Consistent with ASC 820, these investments are excluded from the hierarchical levels.

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

June 30, 2024

(dollar amounts in thousands)

(unaudited)

(17)Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.

(18)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.

(19)Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.

(20)This investment was on non-accrual status as of June 30, 2024.

(21)This investment represents a revenue interest financing term loan in which the Company receives periodic interest payments based on a percentage of revenues earned at the respective portfolio company over the life of the loan.

(22)This investment represents a credit default swap that functions, in substance, like a credit linked note and represents a credit risk transfer for a pool of reference assets owned by a bank. The Company fully funded margin up front and in return the Company receives periodic interest payments. The Company’s risk of loss is limited to the principal amount disclosed herein. The reference assets are primarily composed of investment grade corporate debt. The Company may be exposed to counterparty risk, which could make it difficult for the Company to collect on obligations, thereby resulting in potentially significant losses. In addition, the Company only has a contractual relationship with the counterparty bank, and not with the reference obligors of the reference assets. Accordingly, the Company generally may have no right to directly enforce compliance by the reference obligors with the terms of the reference assets. The Company will not directly benefit from the reference assets and will not have the benefit of the remedies that would normally be available to a holder of such reference assets. In addition, in the event of the insolvency of the counterparty bank, the Company may be treated as a general creditor of such counterparty bank, and will not have any claim with respect to the reference assets.

(23)This investment was renamed during the three months ended June 30, 2024. For the periods prior to June 30, 2024, this investment was referenced as SCP Eye Care Services, LLC.

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares		Principal (7)		Cost		Fair Value		Notes
Control Investments																(8)(9)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Common Stock						829				$	—	$	—	(15)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Preferred Equity						34,984,460				34,984		27,638		(15)
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.54%		8/28/2025			$	14,068	14,068		14,068		(6)(15)
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.42%		8/28/2025			2,090		2,090		2,090		(6)(15)(19)
Dominion Diagnostics, LLC	Health Care Services	First Lien Revolver	SOFR+	5.00%	10.54%		8/28/2025			5,574		5,574		5,574		(6)(15)
Dominion Diagnostics, LLC	Health Care Services	Common Stock						30,031				15,222		2,711		(15)
OCSI Glick JV LLC	Multi-Sector Holdings	Subordinated Debt	SOFR+	4.50%	9.76%		10/20/2028			58,349		50,330		50,017		(6)(11)(14)(15)(19)
OCSI Glick JV LLC	Multi-Sector Holdings	Membership Interest						87.5	%			—		—		(11)(14)(16)(19)
Senior Loan Fund JV I, LLC	Multi-Sector Holdings	Subordinated Debt	SOFR+	7.00%	12.26%		12/29/2028			112,656		112,656		112,656		(6)(11)(14)(15)(19)
Senior Loan Fund JV I, LLC	Multi-Sector Holdings	Membership Interest						87.5	%			54,791		28,878		(11)(12)(14)(16)(19)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan				12.00%	8/3/2028			15,874		14,100		15,874		(15)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan				12.00%	8/3/2028			1,359		1,337		1,359		(15)(19)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	Common Stock						1,184,630				40,093		36,226		(15)
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	Warrants						66,686				—		—		(15)
Total Control Investments (19.6% of net assets)												$	345,245	$	297,091

Affiliate Investments																(17)
Assembled Brands Capital LLC	Specialized Finance	First Lien Revolver	SOFR+	6.75%	12.14%		1/25/2026			$	21,852	$	21,855	$	21,823	(6)(15)(19)
Assembled Brands Capital LLC	Specialized Finance	Common Stock						1,783,332				804		89		(15)
Assembled Brands Capital LLC	Specialized Finance	Preferred Equity						1,129,453				1,159		1,005		(15)
Assembled Brands Capital LLC	Specialized Finance	Warrants						78,045				—		—		(15)
Caregiver Services, Inc.	Health Care Services	Preferred Equity						1,080,399				1,080		432		(15)
Total Affiliate Investments (1.5% of net assets)												$	24,898	$	23,349

Non-Control/Non-Affiliate Investments																(18)
107-109 Beech OAK22 LLC	Real Estate Development	First Lien Revolver			11.00%		2/27/2026			$	18,869	$	18,687	$	18,443	(15)(19)
107 Fair Street LLC	Real Estate Development	First Lien Term Loan			12.50%		5/31/2024			1,269		1,240		1,214		(10)(15)(19)
112-126 Van Houten Real22 LLC	Real Estate Development	First Lien Term Loan			12.00%		5/4/2024			4,070		4,038		4,022		(10)(15)(19)
A.T. Holdings II Ltd.	Biotechnology	First Lien Term Loan			14.25%		9/13/2029			21,434		21,612		21,220		(11)(15)(22)
A.T. Holdings II SÀRL	Biotechnology	First Lien Term Loan				20.00%	2/6/2024			6,021		6,013		5,900		(11)(15)
Accupac, Inc.	Personal Care Products	First Lien Term Loan	SOFR+	6.00%	11.55%		1/16/2026			20,234		20,150		20,194		(6)(15)
Accupac, Inc.	Personal Care Products	First Lien Term Loan	SOFR+	6.00%			1/16/2026			—		(2)		(8)		(6)(15)(19)
Accupac, Inc.	Personal Care Products	First Lien Revolver	SOFR+	6.00%	11.55%		1/16/2026			2,033		2,013		2,027		(6)(15)(19)
Acquia Inc.	Application Software	First Lien Term Loan	L+	7.00%	12.34%		10/31/2025			6,400		6,335		6,380		(6)(15)
Acquia Inc.	Application Software	First Lien Term Loan	L+	7.00%	12.34%		10/31/2025			25,332		25,288		25,253		(6)(15)
Acquia Inc.	Application Software	First Lien Revolver	SOFR+	7.00%	12.72%		10/31/2025			1,333		1,322		1,324		(6)(15)(19)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	11.90%		12/18/2025			3,446		3,411		3,383		(6)(15)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.15%		12/18/2025			17,901		17,743		17,575		(6)(15)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.13%		12/18/2025			963		948		945		(6)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
ADC Therapeutics SA	Biotechnology	First Lien Term Loan	SOFR+	7.50%	13.04%		8/15/2029		$	6,589	$	6,305	$	6,276	(6)(11)(15)
ADC Therapeutics SA	Biotechnology	First Lien Term Loan	SOFR+	7.50%			8/15/2029		—		(38)		(38)		(6)(11)(15)(19)
ADC Therapeutics SA	Biotechnology	Warrants						28,948			174		6		(11)(15)
AI Sirona (Luxembourg) Acquisition S.a.r.l.	Pharmaceuticals	First Lien Term Loan	E+	5.00%	8.86%		9/30/2028		€	5,500	$	6,024	$	5,825	(6)(11)
AIP RD Buyer Corp.	Distributors	Second Lien Term Loan	SOFR+	7.75%	13.17%		12/21/2029		$	17,873	17,655		17,687		(6)(15)
AIP RD Buyer Corp.	Distributors	Common Stock						17,870			1,733		2,826		(15)
AirStrip Technologies, Inc.	Application Software	Warrants						5,715			90		—		(15)
All Web Leads, Inc.	Advertising	First Lien Term Loan	SOFR+	8.50%			12/29/2023		23,562		22,795		9,797		(6)(15)(20)
Altice France S.A.	Integrated Telecommunication Services	Fixed Rate Bond			5.50%		10/15/2029		4,050		3,577		2,918		(11)
Alto Pharmacy Holdings, Inc.	Health Care Technology	First Lien Term Loan	SOFR+	11.50%	5.00%	11.99%	10/14/2027		9,057		8,434		8,332		(6)(15)
Alto Pharmacy Holdings, Inc.	Health Care Technology	Warrants						598,283			642		1,915		(15)
Alvogen Pharma US, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	13.04%		6/30/2025		17,053		16,982		15,929		(6)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			8.50%	3.50%	11/16/2026		28,464		28,329		27,687		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			8.50%	3.50%	11/16/2026		2,121		1,945		2,063		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			8.50%	3.50%	11/16/2026		27,692		27,582		26,936		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Fixed Rate Bond			8.50%	3.50%	11/16/2026		2,064		1,891		2,007		(11)(15)
Alvotech Holdings S.A.	Biotechnology	Common Stock						471,253			849		4,298		(11)
Alvotech Holdings S.A.	Biotechnology	Common Stock						141,640			566		368		(11)(13)(15)
American Auto Auction Group, LLC	Consumer Finance	Second Lien Term Loan	SOFR+	8.75%	14.14%		1/2/2029		17,048		16,440		15,087		(6)(15)
American Tire Distributors, Inc.	Distributors	First Lien Term Loan	SOFR+	6.25%	11.81%		10/20/2028		19,115		18,278		16,798		(6)
Amplify Finco Pty Ltd.	Movies & Entertainment	Second Lien Term Loan	SOFR+	8.00%	13.54%		11/26/2027		12,500		12,188		11,865		(6)(11)(15)
Anastasia Parent, LLC	Personal Care Products	First Lien Term Loan	SOFR+	3.75%	9.40%		8/11/2025		3,700		3,067		2,669		(6)
Ardonagh Midco 3 PLC	Insurance Brokers	First Lien Term Loan	E+	7.00%	10.95%		7/14/2026		€	3,017	3,331		3,226		(6)(11)(15)
Ardonagh Midco 3 PLC	Insurance Brokers	First Lien Term Loan	SOFR+	5.75%	11.57%		7/14/2026		$	10,519	10,400		10,624		(6)(11)(15)
Ardonagh Midco 3 PLC	Insurance Brokers	First Lien Term Loan	SONIA+	7.00%	12.46%		7/14/2026		£	4,949	6,318		6,101		(6)(11)(15)
Ardonagh Midco 3 PLC	Insurance Brokers	First Lien Term Loan	SONIA+	7.00%	12.46%		7/14/2026		£	23,675	28,713		29,185		(6)(11)(15)
Ardonagh Midco 3 PLC	Insurance Brokers	First Lien Term Loan	SONIA+	5.75%	9.70%		7/14/2026		£	3,649	4,094		3,914		(6)(11)(15)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	6.00%	11.63%		12/29/2027		$	3,276	3,267		3,084		(6)(11)(15)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Revolver	SOFR+	6.00%			12/29/2027		—		(13)		(23)		(6)(11)(15)(19)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	5.25%	10.90%		10/25/2028		8,490		8,168		6,414		(6)
athenahealth Group Inc.	Health Care Technology	Preferred Equity						21,523			20,789		20,074		(15)
ATNX SPV, LLC	Pharmaceuticals	First Lien Term Loan					5/31/2031		12,222		12,260		11,795		(11)(15)(22)
Aurora Lux Finco S.À.R.L.	Airport Services	First Lien Term Loan	SOFR+	6.00%	11.49%		12/24/2026		29,509		29,164		28,284		(6)(11)(15)
Avalara, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.64%		10/19/2028		50,470		49,679		49,688		(6)(15)
Avalara, Inc.	Application Software	First Lien Revolver	SOFR+	7.25%			10/19/2028		—		(108)		(78)		(6)(15)(19)
The Avery	Real Estate Operating Companies	First Lien Term Loan	L+	7.30%			2/17/2023		19,163		19,163		18,340		(6)(15)(20)
The Avery	Real Estate Operating Companies	Subordinated Debt Term Loan	L+	12.50%			2/17/2023		4,641		4,641		4,170		(6)(15)(20)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.65%		6/11/2027		3,247		3,216		3,169		(6)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.65%		6/11/2027		$	1,261	$	1,269	$	1,231	(6)(15)
BAART Programs, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.50%	14.15%		6/11/2028		8,920		8,819		8,492		(6)(15)
BAART Programs, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.50%	14.15%		6/11/2028		2,091		2,068		1,991		(6)(15)
BAART Programs, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.50%	14.15%		6/11/2028		4,361		4,297		4,152		(6)(15)
Berner Food & Beverage, LLC	Soft Drinks & Non-alcoholic Beverages	First Lien Term Loan	SOFR+	5.50%	11.02%		7/30/2027		40,660		40,440		40,213		(6)(15)
Berner Food & Beverage, LLC	Soft Drinks & Non-alcoholic Beverages	First Lien Revolver	PRIME+	4.50%	13.00%		7/30/2026		2,221		2,188		2,178		(6)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan			8.00%	2.25%	4/19/2027		6,757		6,560		6,225		(11)(15)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan					9/30/2032		3,316		3,335		3,169		(11)(15)(19)(22)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan			8.00%	2.25%	4/19/2027		—		—		—		(11)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan			8.00%	2.25%	4/19/2027		—		—		—		(11)(15)(19)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan					9/30/2032		—		—		—		(11)(15)(19)(22)
BioXcel Therapeutics, Inc.	Pharmaceuticals	First Lien Term Loan					9/30/2032		—		—		—		(11)(15)(19)(22)
BioXcel Therapeutics, Inc.	Pharmaceuticals	Warrants						26,131			225		3		(11)(15)
Blackhawk Network Holdings, Inc.	Data Processing & Outsourced Services	Second Lien Term Loan	SOFR+	7.00%	12.43%		6/15/2026		30,625		30,370		29,989		(6)
Blumenthal Temecula, LLC	Automotive Retail	First Lien Term Loan			9.00%		10/9/2023		5,257		5,258		5,251		(15)
Blumenthal Temecula, LLC	Automotive Retail	Preferred Equity						1,708,618			1,711		1,999		(15)
Blumenthal Temecula, LLC	Automotive Retail	Preferred Equity						394,297			395		442		(15)
Blumenthal Temecula, LLC	Automotive Retail	Common Stock						394,297			424		158		(15)
Cadence Aerospace, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	6.50%	12.07%		11/14/2024		37		37		37		(6)(15)
Cadence Aerospace, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	6.50%	12.07%		11/14/2024		3,031		2,899		3,031		(6)(15)
Cadence Aerospace, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	6.50%	12.07%		11/14/2024		1,557		1,489		1,557		(6)(15)
Cadence Aerospace, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	6.50%	12.07%		11/14/2024		1,024		994		1,024		(6)(15)
Clear Channel Outdoor Holdings, Inc.	Advertising	Fixed Rate Bond			7.50%		6/1/2029		2,632		2,632		2,017		(11)
Clear Channel Outdoor Holdings, Inc.	Advertising	Fixed Rate Bond			7.75%		4/15/2028		176		170		141		(11)
Condor Merger Sub Inc.	Systems Software	Fixed Rate Bond			7.38%		2/15/2030		8,420		8,261		7,059
Continental Intermodal Group LP	Oil & Gas Storage & Transportation	First Lien Term Loan	SOFR+	8.50%			1/28/2025		22,084		21,336		16,040		(6)(15)(20)
Continental Intermodal Group LP	Oil & Gas Storage & Transportation	Warrants									706		—		(15)
Conviva Inc.	Application Software	Preferred Equity						417,851			605		894		(15)
Coupa Holdings, LLC	Application Software	First Lien Term Loan	SOFR+	7.50%	12.82%		2/27/2030		13,157		12,855		12,858		(6)(15)
Coupa Holdings, LLC	Application Software	First Lien Term Loan	SOFR+	7.50%			2/27/2030		—		(15)		(13)		(6)(15)(19)
Coupa Holdings, LLC	Application Software	First Lien Revolver	SOFR+	7.50%			2/27/2029		—		(20)		(20)		(6)(15)(19)
Covetrus, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.00%	10.39%		10/13/2029		14,750		14,173		14,616		(6)
Coyote Buyer, LLC	Specialty Chemicals	First Lien Term Loan	SOFR+	6.00%	11.52%		2/6/2026		18,013		17,690		17,812		(6)(15)
Coyote Buyer, LLC	Specialty Chemicals	First Lien Revolver	SOFR+	6.00%	11.47%		2/6/2025		933		920		918		(6)(15)(19)
CPC Acquisition Corp.	Specialty Chemicals	Second Lien Term Loan	SOFR+	7.75%			12/29/2028		727		462		396		(6)(15)(20)
Delta Leasing SPV II LLC	Specialized Finance	Subordinated Debt Term Loan			3.00%	7.00%	8/31/2029		17,465		17,465		17,465		(11)(15)(19)
Delta Leasing SPV II LLC	Specialized Finance	Preferred Equity						419			419		419		(11)(15)
Delta Leasing SPV II LLC	Specialized Finance	Common Stock						2			2		2		(11)(15)
Delta Leasing SPV II LLC	Specialized Finance	Warrants						31			—		—		(11)(15)
Dialyze Holdings, LLC	Health Care Equipment	First Lien Term Loan	SOFR+	9.00%	14.54%		8/4/2026		20,757		20,146		20,653		(6)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Dialyze Holdings, LLC	Health Care Equipment	Subordinated Debt Term Loan				8.00%	9/30/2027		$	654	$	653	$	631	(15)
Dialyze Holdings, LLC	Health Care Equipment	Warrants						6,397,254			1,642		1,152		(15)
Digital.AI Software Holdings, Inc.	Application Software	First Lien Term Loan	SOFR+	7.00%	12.49%		2/10/2027		12,386		12,208		12,101		(6)(15)
Digital.AI Software Holdings, Inc.	Application Software	First Lien Revolver	SOFR+	7.00%	12.49%		2/10/2027		284		265		252		(6)(15)(19)
DirecTV Financing, LLC	Cable & Satellite	First Lien Term Loan	SOFR+	5.00%	10.43%		8/2/2027		4,641		4,619		4,546		(6)
DTI Holdco, Inc.	Research & Consulting Services	First Lien Term Loan	SOFR+	4.75%	10.12%		4/26/2029		4,950		4,871		4,831		(6)
Eagleview Technology Corporation	Application Software	Second Lien Term Loan	SOFR+	7.50%	13.04%		8/14/2026		8,974		8,884		7,987		(6)(15)
EOS Fitness Opco Holdings, LLC	Leisure Facilities	Preferred Equity						488			488		1,345		(15)
EOS Fitness Opco Holdings, LLC	Leisure Facilities	Common Stock						12,500			—		—		(15)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		11,065		10,953		10,677		(11)(15)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		1,772		1,748		1,710		(11)(15)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		—		1		—		(11)(15)(19)
Establishment Labs Holdings Inc.	Health Care Technology	First Lien Term Loan			3.00%	6.00%	4/21/2027		—		1		—		(11)(15)(19)
Evergreen IX Borrower 2023, LLC	Application Software	First Lien Term Loan	SOFR+	6.00%	11.32%		9/29/2030		14,736		14,368		14,368		(6)(15)
Evergreen IX Borrower 2023, LLC	Application Software	First Lien Revolver	SOFR+	6.00%			9/29/2029		—		(41)		(41)		(6)(15)(19)
Fairbridge Strategic Capital Funding LLC	Real Estate Operating Companies	First Lien Term Loan			9.00%		12/24/2028		59,950		59,950		59,950		(15)(19)
Fairbridge Strategic Capital Funding LLC	Real Estate Operating Companies	Warrants						3,750			—		3		(11)(15)
Finastra USA, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.55%		9/13/2029		11,742		11,509		11,511		(6)(11)(15)
Finastra USA, Inc.	Application Software	First Lien Revolver	SOFR+	7.25%	12.55%		9/13/2029		258		234		234		(6)(11)(15)(19)
FINThrive Software Intermediate Holdings, Inc.	Health Care Technology	Second Lien Term Loan	SOFR+	6.75%	12.18%		12/17/2029		31,074		29,127		19,917		(6)
Fortress Biotech, Inc.	Biotechnology	First Lien Term Loan			11.00%		8/27/2025		11,918		11,612		11,144		(11)(15)
Fortress Biotech, Inc.	Biotechnology	Warrants						417,011			427		42		(11)(15)
Frontier Communications Holdings, LLC	Integrated Telecommunication Services	Fixed Rate Bond			6.00%		1/15/2030		4,881		4,469		3,577		(11)
Galileo Parent, Inc.	Aerospace & Defense	First Lien Term Loan	SOFR+	7.25%	12.64%		5/3/2029		23,774		23,110		23,110		(6)(15)
Galileo Parent, Inc.	Aerospace & Defense	First Lien Revolver	SOFR+	7.25%	12.64%		5/3/2029		1,638		1,535		1,535		(6)(15)(19)
Gibson Brands, Inc.	Leisure Products	First Lien Term Loan	SOFR+	5.00%	10.57%		8/11/2028		2,456		2,055		2,063		(6)(15)
GoldenTree Loan Management EUR CLO 2 DAC	Multi-Sector Holdings	CLO Notes	E+	2.85%	6.56%		1/20/2032		€	1,000	876		963		(6)(11)
Grove Hotel Parcel Owner, LLC	Hotels, Resorts & Cruise Lines	First Lien Term Loan	SOFR+	8.00%	13.42%		6/21/2027		$	17,444	17,276		17,096		(6)(15)
Grove Hotel Parcel Owner, LLC	Hotels, Resorts & Cruise Lines	First Lien Term Loan	SOFR+	8.00%			6/21/2027		—		(54)		(70)		(6)(15)(19)
Grove Hotel Parcel Owner, LLC	Hotels, Resorts & Cruise Lines	First Lien Revolver	SOFR+	8.00%			6/21/2027		—		(27)		(35)		(6)(15)(19)
Harbor Purchaser Inc.	Education Services	First Lien Term Loan	SOFR+	5.25%	10.67%		4/9/2029		14,347		13,871		13,618		(6)
Harrow, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	6.50%	11.89%		1/19/2026		7,448		7,296		7,301		(6)(11)(15)
Harrow, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	6.50%			1/19/2026		—		(82)		(79)		(6)(11)(15)(19)
Harrow, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	6.50%	12.04%		1/19/2026		1,432		1,399		1,404		(6)(11)(15)
Horizon Aircraft Finance I Ltd.	Specialized Finance	CLO Notes			4.46%		12/15/2038		6,808		5,490		5,873		(11)
IAMGOLD Corporation	Gold	Second Lien Term Loan	SOFR+	8.25%	13.62%		5/16/2028		23,975		23,310		23,328		(6)(11)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
iCIMs, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.63%		8/18/2028		$	24,427	$	24,135	$	23,548	(6)(15)
iCIMs, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%	12.63%		8/18/2028		3,636		3,602		3,574		(6)(15)
iCIMs, Inc.	Application Software	First Lien Term Loan	SOFR+	7.25%			8/18/2028		—		—		—		(6)(15)(19)
iCIMs, Inc.	Application Software	First Lien Revolver	SOFR+	6.75%	12.14%		8/18/2028		377		334		296		(6)(15)(19)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%		16.06%	3/17/2027		26,613		26,492		24,484		(6)(15)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%		16.05%	3/17/2027		787		771		787		(6)(15)
Impel Pharmaceuticals Inc.	Health Care Technology	First Lien Term Loan	SOFR+	10.75%		16.06%	3/17/2027		688		688		688		(6)(15)(19)
Impel Pharmaceuticals Inc.	Health Care Technology	Warrants						350,241			—		147
Innocoll Pharmaceuticals Limited	Health Care Technology	First Lien Term Loan	SOFR+	5.75%	11.14%	2.75%	1/26/2027		7,179		6,969		6,568		(6)(11)(15)
Innocoll Pharmaceuticals Limited	Health Care Technology	Warrants						112,990			300		105		(11)(15)
Integral Development Corporation	Diversified Financial Services	Warrants						1,078,284			113		—		(15)
Inventus Power, Inc.	Electrical Components & Equipment	First Lien Term Loan	SOFR+	7.50%	12.93%		6/30/2025		33,414		32,539		32,659		(6)(15)
Inventus Power, Inc.	Electrical Components & Equipment	First Lien Revolver	SOFR+	7.50%			6/30/2025		—		(99)		(86)		(6)(15)(19)
INW Manufacturing, LLC	Personal Care Products	First Lien Term Loan	SOFR+	5.75%	11.40%		3/25/2027		44,550		42,918		35,046		(6)(15)
IPC Corp.	Application Software	First Lien Term Loan	SOFR+	6.50%	11.92%		10/1/2026		40,587		39,935		38,963		(6)(15)
Ivanti Software, Inc.	Application Software	Second Lien Term Loan	L+	7.25%	12.78%		12/1/2028		13,939		12,661		10,094		(6)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Term Loan	SOFR+	6.50%	11.84%		10/29/2027		16,752		16,623		16,500		(6)(15)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Revolver	SOFR+	6.50%	11.84%		10/29/2027		272		246		238		(6)(15)(19)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Term Loan	SOFR+	6.50%	11.80%		10/29/2027		38,015		37,447		37,445		(6)(15)
Kings Buyer, LLC	Environmental & Facilities Services	First Lien Revolver	SOFR+	6.50%			10/29/2027		—		(47)		(47)		(6)(15)(19)
Latam Airlines Group S.A.	Passenger Airlines	First Lien Term Loan	SOFR+	9.50%	14.95%		10/12/2027		26,422		24,920		27,512		(6)(11)
Lift Brands Holdings, Inc.	Leisure Facilities	Common Stock						2,000,000			1,399		—		(15)
Lightbox Intermediate, L.P.	Real Estate Services	First Lien Term Loan	SOFR+	5.00%	10.65%		5/9/2026		45,243		44,717		43,886		(6)(15)
Liquid Environmental Solutions Corporation	Environmental & Facilities Services	Second Lien Term Loan	SOFR+	8.50%	13.99%		11/30/2026		5,403		5,348		5,160		(6)(15)
Liquid Environmental Solutions Corporation	Environmental & Facilities Services	Second Lien Term Loan	SOFR+	8.50%	13.99%		11/30/2026		2,939		2,884		2,745		(6)(15)(19)
Liquid Environmental Solutions Corporation	Environmental & Facilities Services	Common Stock						559			563		372		(15)
LSL Holdco, LLC	Health Care Distributors	First Lien Term Loan	SOFR+	6.00%	11.42%		1/31/2028		2,736		2,595		2,558		(6)(15)
LSL Holdco, LLC	Health Care Distributors	First Lien Term Loan	SOFR+	6.00%	11.42%		1/31/2028		23,494		23,128		21,967		(6)(15)
LSL Holdco, LLC	Health Care Distributors	First Lien Revolver	SOFR+	6.00%			1/31/2028		—		(41)		(172)		(6)(15)(19)
Marinus Pharmaceuticals, Inc.	Pharmaceuticals	First Lien Term Loan			11.50%		5/11/2026		8,568		8,495		8,132		(11)(15)
Marinus Pharmaceuticals, Inc.	Pharmaceuticals	First Lien Term Loan			11.50%		5/11/2026		4,284		4,247		4,066		(11)(15)
Marinus Pharmaceuticals, Inc.	Pharmaceuticals	First Lien Term Loan			11.50%		5/11/2026		8,568		8,495		8,132		(11)(15)
Mesoblast, Inc.	Biotechnology	First Lien Term Loan			8.00%	1.75%	11/19/2026		9,106		8,580		8,013		(11)(15)
Mesoblast, Inc.	Biotechnology	Warrants						259,877			545		78		(11)(15)
Mesoblast, Inc.	Biotechnology	Warrants						66,817			23		33		(11)(15)
MHE Intermediate Holdings, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	6.00%	11.52%		7/21/2027		20,125		19,912		19,823		(6)(15)
MHE Intermediate Holdings, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	6.00%	11.52%		7/21/2027		2,631		2,587		2,591		(6)(15)
MHE Intermediate Holdings, LLC	Diversified Support Services	First Lien Revolver	SOFR+	6.00%	11.42%		7/21/2027		964		936		938		(6)(15)(19)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	7.00%	12.52%		2/14/2025		$	5,248	$	5,220	$	5,164	(6)(15)
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	7.00%	12.52%		2/14/2025		46,687		46,239		45,940		(6)(15)
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Revolver	SOFR+	7.00%			2/14/2025		—		(43)		(76)		(6)(15)(19)
MND Holdings III Corp	Other Specialty Retail	First Lien Term Loan	SOFR+	7.50%	12.89%		5/9/2028		40,538		39,873		39,833		(6)(15)
MND Holdings III Corp	Other Specialty Retail	First Lien Revolver	SOFR+	7.50%	12.83%		5/9/2028		1,466		1,215		1,282		(6)(15)(19)
Mosaic Companies, LLC	Home Improvement Retail	First Lien Term Loan	L+	6.75%	12.51%		7/2/2026		54,559		54,236		53,168		(6)(15)
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.99%		2/10/2026		13,973		13,936		13,685		(6)(15)
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.99%		2/10/2026		21,328		21,021		20,888		(6)(15)
MRI Software LLC	Application Software	First Lien Revolver	SOFR+	5.50%			2/10/2026		—		(28)		(47)		(6)(15)(19)
Navisite, LLC	Data Processing & Outsourced Services	Second Lien Term Loan	SOFR+	8.50%	13.99%		12/30/2026		30,339		30,021		29,007		(6)(15)
NeuAG, LLC	Fertilizers & Agricultural Chemicals	First Lien Term Loan	SOFR+	9.50%	14.89%		9/11/2024		64,606		64,720		63,185		(6)(15)
NFP Corp.	Diversified Financial Services	Fixed Rate Bond			6.88%		8/15/2028		10,191		9,831		8,743
NN, Inc.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	6.88%	12.29%	2.00%	9/19/2026		73,362		72,459		69,694		(6)(11)(15)
NN, Inc.	Industrial Machinery & Supplies & Components	Warrants						487,870			—		903		(11)
NN, Inc.	Industrial Machinery & Supplies & Components	Warrants						487,870			—		903		(11)
OEConnection LLC	Application Software	Second Lien Term Loan	SOFR+	7.00%	12.49%		9/25/2027		9,323		9,210		9,183		(6)(15)
Oranje Holdco, Inc.	Systems Software	First Lien Term Loan	SOFR+	7.75%	13.12%		2/1/2029		15,231		14,892		14,945		(6)(15)
Oranje Holdco, Inc.	Systems Software	First Lien Revolver	SOFR+	7.75%			2/1/2029		—		(42)		(36)		(6)(15)(19)
OTG Management, LLC	Airport Services	First Lien Term Loan	SOFR+	10.00%		15.67%	9/2/2025		25,712		25,615		25,069		(6)(15)
OTG Management, LLC	Airport Services	First Lien Term Loan	SOFR+	10.00%			9/2/2025		—		(11)		(69)		(6)(15)(19)
OTG Management, LLC	Airport Services	First Lien Term Loan	SOFR+	10.00%		15.64%	9/2/2025		1,210		1,193		1,169		(6)(15)(19)
P & L Development, LLC	Pharmaceuticals	Fixed Rate Bond			7.75%		11/15/2025		4,519		4,550		3,305
Park Place Technologies, LLC	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	5.00%	10.42%		11/10/2027		9,676		9,518		9,551		(6)
Performance Health Holdings, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	6.00%	11.57%		7/12/2027		22,375		22,189		21,896		(6)(15)
Planview Parent, Inc.	Application Software	Second Lien Term Loan	SOFR+	7.25%	12.74%		12/18/2028		36,499		35,458		33,214		(6)(15)
Pluralsight, LLC	Application Software	First Lien Term Loan	SOFR+	8.00%	13.45%		4/6/2027		67,244		66,353		64,406		(6)(15)
Pluralsight, LLC	Application Software	First Lien Revolver	SOFR+	8.00%	13.45%		4/6/2027		3,003		2,926		2,801		(6)(15)(19)
PPW Aero Buyer, Inc.	Aerospace & Defense	First Lien Term Loan	SOFR+	7.00%	12.32%		2/15/2029		10,895		10,505		10,495		(6)(15)
PPW Aero Buyer, Inc.	Aerospace & Defense	First Lien Revolver	SOFR+	7.00%			2/15/2029		—		(53)		(54)		(6)(15)(19)
PRGX Global, Inc.	Data Processing & Outsourced Services	First Lien Term Loan	SOFR+	6.50%	12.01%		3/3/2026		38,414		37,960		38,380		(6)(15)
PRGX Global, Inc.	Data Processing & Outsourced Services	First Lien Revolver	SOFR+	6.50%			3/3/2026		—		(34)		(3)		(6)(15)(19)
PRGX Global, Inc.	Data Processing & Outsourced Services	Common Stock						100,000			109		248		(15)
Profrac Holdings II, LLC	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	7.25%	12.78%		3/4/2025		24,503		24,255		24,081		(6)(15)
Profrac Holdings II, LLC	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	7.25%	12.78%		3/4/2025		2,819		2,797		2,771		(6)(15)
Quantum Bidco Limited	Food Distributors	First Lien Term Loan	SONIA+	5.75%	11.21%		1/31/2028		£	4,626	5,897		5,166		(6)(11)(15)
QuorumLabs, Inc.	Application Software	Preferred Equity						64,887,669			375		—		(15)
Relativity ODA LLC	Application Software	First Lien Term Loan	SOFR+	6.50%	11.92%		5/12/2027		$	32,329	32,070		31,779		(6)(15)
Relativity ODA LLC	Application Software	First Lien Revolver	SOFR+	6.50%			5/12/2027		—		(43)		(47)		(6)(15)(19)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
RumbleOn, Inc.	Automotive Retail	First Lien Term Loan	SOFR+	8.25%	13.90%	0.50%	8/31/2026		$	36,707	$	35,548	$	34,505	(6)(11)(15)
RumbleOn, Inc.	Automotive Retail	First Lien Term Loan	SOFR+	8.25%	13.90%	0.50%	8/31/2026		13,504		13,058		12,694		(6)(11)(15)
RumbleOn, Inc.	Automotive Retail	Warrants						204,454			1,202		756		(11)(15)
Salus Workers' Compensation, LLC	Diversified Financial Services	First Lien Term Loan	SOFR+	10.00%	15.24%		10/7/2026		25,558		24,777		24,791		(6)(15)
Salus Workers' Compensation, LLC	Diversified Financial Services	First Lien Revolver	SOFR+	10.00%			10/7/2026		—		(95)		(93)		(6)(15)(19)
Salus Workers' Compensation, LLC	Diversified Financial Services	Warrants						991,019			327		1,625		(15)
Scilex Holding Co	Biotechnology	Common Stock						9,307			78		13		(11)
SCP Eye Care Services, LLC	Health Care Services	Second Lien Term Loan	SOFR+	8.75%	14.18%		10/7/2030		8,010		7,799		7,778		(6)(15)
SCP Eye Care Services, LLC	Health Care Services	Second Lien Term Loan	SOFR+	8.75%			10/7/2030		—		(35)		(68)		(6)(15)(19)
SCP Eye Care Services, LLC	Health Care Services	Common Stock						1,037			1,037		951		(15)
scPharmaceuticals Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	8.75%	11.75%		10/13/2027		5,212		4,987		4,990		(6)(15)
scPharmaceuticals Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	8.75%			10/13/2027		—		—		—		(6)(15)(19)
scPharmaceuticals Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	8.75%			10/13/2027		—		—		—		(6)(15)(19)
scPharmaceuticals Inc.	Pharmaceuticals	Warrants						53,700			175		258		(15)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%	12.88%		4/27/2029		7,191		6,934		6,937		(6)(11)(15)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%	12.88%		4/27/2029		2,697		2,601		2,602		(6)(11)(15)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%			4/27/2029		—		—		—		(6)(11)(15)(19)
Seres Therapeutics, Inc.	Biotechnology	First Lien Term Loan	SOFR+	7.88%			4/27/2029		—		—		—		(6)(11)(15)(19)
Seres Therapeutics, Inc.	Biotechnology	Warrants						58,210			182		87		(11)(15)
ShareThis, Inc.	Application Software	Warrants						345,452			367		—		(15)
SM Wellness Holdings, Inc.	Health Care Services	First Lien Term Loan	SOFR+	4.75%	10.38%		4/17/2028		4,452		3,806		4,184		(6)(15)
SM Wellness Holdings, Inc.	Health Care Services	Second Lien Term Loan	SOFR+	8.00%	13.63%		4/16/2029		12,034		11,250		9,928		(6)(15)
SonicWall US Holdings Inc.	Technology Distributors	Second Lien Term Loan	SOFR+	7.50%	13.04%		5/18/2026		821		813		776		(6)(15)
Sorrento Therapeutics, Inc.	Biotechnology	Common Stock						66,000			139		6		(11)
Spanx, LLC	Apparel Retail	First Lien Term Loan	SOFR+	5.25%	10.67%		11/20/2028		4,488		4,423		4,425		(6)(15)
Spanx, LLC	Apparel Retail	First Lien Revolver	SOFR+	5.00%	10.42%		11/18/2027		618		576		577		(6)(15)(19)
SumUp Holdings Luxembourg S.À.R.L.	Diversified Financial Services	First Lien Term Loan	E+	8.50%	12.32%		3/10/2026		€	23,731	26,772		24,937		(6)(11)(15)
Superior Industries International, Inc.	Auto Parts & Equipment	First Lien Term Loan	SOFR+	8.00%	13.32%		12/16/2028		$	49,520	48,536		49,148		(6)(15)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Term Loan	SOFR+	7.00%	12.51%		12/31/2026		32,104		31,861		30,579		(6)(15)(21)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Term Loan	SOFR+	7.00%	12.51%		12/31/2026		2,749		2,726		2,618		(6)(15)(21)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Term Loan	SOFR+	7.00%	12.51%		12/31/2026		1,099		1,062		943		(6)(15)(19)(21)
Supreme Fitness Group NY Holdings, LLC	Leisure Facilities	First Lien Revolver	SOFR+	7.00%	12.44%		12/31/2026		1,552		1,540		1,478		(6)(15)(21)
SVP-Singer Holdings Inc.	Home Furnishings	First Lien Term Loan	SOFR+	6.75%	12.40%		7/28/2028		25,527		23,859		19,954		(6)(15)
Tacala, LLC	Restaurants	Second Lien Term Loan	SOFR+	8.00%	13.43%		2/4/2028		12,843		12,603		12,464		(6)
Tahoe Bidco B.V.	Application Software	First Lien Term Loan	SOFR+	6.00%	11.42%		9/29/2028		28,826		28,595		28,537		(6)(11)(15)
Tahoe Bidco B.V.	Application Software	First Lien Revolver	SOFR+	6.00%			10/1/2027		—		(29)		(22)		(6)(11)(15)(19)
Telestream Holdings Corporation	Application Software	First Lien Term Loan	SOFR+	9.75%	15.26%		10/15/2025		23,423		23,207		22,814		(6)(15)
Telestream Holdings Corporation	Application Software	First Lien Revolver	SOFR+	9.75%	15.17%		10/15/2025		1,861		1,845		1,802		(6)(15)(19)
Ten-X LLC	Interactive Media & Services	First Lien Term Loan	SOFR+	6.00%	11.32%		5/26/2028		19,947		19,013		19,199		(6)(15)
TGNR HoldCo LLC	Integrated Oil & Gas	Subordinated Debt			11.50%		5/14/2026		4,984		4,894		4,785		(10)(11)(15)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)


Portfolio Company	Industry	Type of Investment (1)(2)(3)(4)	Index	Spread	Cash Interest Rate (5)(6)	PIK	Maturity Date	Shares	Principal (7)		Cost		Fair Value		Notes
THL Zinc Ventures Ltd	Diversified Metals & Mining	First Lien Term Loan			13.00%		5/23/2026		$	50,419	$	49,842	$	49,869	(11)(15)
Thrasio, LLC	Broadline Retail	First Lien Term Loan	SOFR+	7.00%		12.65%	12/18/2026		46,832		45,698		37,231		(6)(15)
Thrasio, LLC	Broadline Retail	Preferred Equity						10,616			120		—		(15)
Thrasio, LLC	Broadline Retail	Preferred Equity						358,299			2,912		—		(15)
Thrasio, LLC	Broadline Retail	Preferred Equity						60,862			1,207		108		(15)
Thrasio, LLC	Broadline Retail	Preferred Equity						32,447			33,353		31,701		(15)
Touchstone Acquisition, Inc.	Health Care Supplies	First Lien Term Loan	SOFR+	6.00%	11.42%		12/29/2028		11,671		11,646		11,363		(6)(15)
Trinitas CLO XV DAC	Multi-Sector Holdings	CLO Notes	SOFR+	7.71%	13.06%		4/22/2034		1,000		816		917		(6)(11)
Uniti Group LP	Other Specialized REITs	Fixed Rate Bond			6.50%		2/15/2029		4,500		4,115		2,953		(11)
Uniti Group LP	Other Specialized REITs	Fixed Rate Bond			4.75%		4/15/2028		300		264		245		(11)
Virgin Pulse, Inc.	Application Software	Second Lien Term Loan	SOFR+	7.25%	12.68%		4/6/2029		1,140		927		1,139		(6)(15)
Win Brands Group LLC	Housewares & Specialties	First Lien Term Loan	L+	15.00%	21.68%		1/23/2026		1,565		1,551		1,464		(6)(15)
Win Brands Group LLC	Housewares & Specialties	First Lien Term Loan	L+	15.00%	21.68%		1/23/2026		1,323		1,311		1,237		(6)(15)
Win Brands Group LLC	Housewares & Specialties	Warrants						4,871			46		107		(15)
Windstream Services II, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	6.25%	11.67%		9/21/2027		8,983		8,698		8,678		(6)
Windstream Services II, LLC	Integrated Telecommunication Services	Common Stock						127,452			2,057		1,319		(15)
WP CPP Holdings, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	3.75%	9.27%		4/30/2025		11,792		11,281		11,127		(6)
WWEX Uni Topco Holdings, LLC	Air Freight & Logistics	Second Lien Term Loan	SOFR+	7.00%	12.65%		7/26/2029		5,000		4,925		4,263		(6)(15)
Zephyr Bidco Limited	Specialized Finance	Second Lien Term Loan	SONIA+	7.50%	12.72%		7/23/2026		£	20,000	25,841		22,914		(6)(11)(15)
Zep Inc.	Specialty Chemicals	First Lien Term Loan	SOFR+	4.00%	9.32%		9/30/2028		$	19,578	19,568		19,489		(6)(15)
Total Non-Control/Non-Affiliate Investments (169.7% of net assets)											$	2,673,976	$	2,571,980
Total Portfolio Investments (190.8% of net assets)											$	3,044,119	$	2,892,420

Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares											$	83,262	$	83,262
Other cash accounts											62,277		62,277
Total Cash and Cash Equivalents and Restricted Cash (9.6% of net assets)											$	145,539	$	145,539
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (200.4% of net assets)											$	3,189,658	$	3,037,959


Derivative Instrument	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Counterparty	Cumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract	$	42,182	€	38,026	11/9/2023	JPMorgan Chase Bank, N.A.	$	1,857
Foreign currency forward contract	$	72,098	£	56,556	11/9/2023	JPMorgan Chase Bank, N.A.	3,053
							$	4,910

Derivative Instrument

Company Receives

Company Pays

Counterparty

Maturity Date

Notional Amount

Fair Value

Interest rate swap

Fixed 2.7%

Floating 3-month SOFR +1.658%

Royal Bank of Canada

1/15/2027

$350,000

(40,519)

Interest rate swap

Fixed 7.1%

Floating 3-month SOFR +3.1255%

Royal Bank of Canada

2/15/2029

$300,000

(7,000)

(47,519)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2023

(dollar amounts in thousands)

(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.

(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.

(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.

(6)The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to SOFR, the London Interbank Offered Rate ("LIBOR" or "L"), SONIA and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR and SOFR shown above is in U.S. dollars unless otherwise noted. As of September 30, 2023, the reference rates for the Company's variable rate loans were the 30-day SOFR at 5.32%, the 90-day SOFR at 5.39%, the 180-day SOFR at 5.47%, the 30-day LIBOR at 5.43%, the 90-day LIBOR at 5.65%, the 180-day LIBOR at 5.90%, the PRIME at 8.50%, the SONIA at 5.19%, the 30-day EURIBOR at 3.42%, the 90-day EURIBOR at 3.82% and the 180-day EURIBOR at 3.95%. Most loans include an interest floor, which generally ranges from 0% to 2.75%. SOFR and SONIA based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(7)Principal includes accumulated PIK interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

(8)Control Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the Company's annual report on Form 10-K for the year ended September 30, 2023 for transactions during the year ended September 30, 2023 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(10)This investment represents a participation interest in the underlying securities shown.

(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2023, qualifying assets represented 74.3% of the Company's total assets and non-qualifying assets represented 25.7% of the Company's total assets.

(12)Income producing through payment of dividends or distributions.

(13)This investment represents Seller Earn Out Shares in Alvotech SA. One half of the Seller Earn Out Shares will vest if, at any time through June 16, 2027, the Alvotech SA common share price is at or above a VWAP of $15.00 per share for any ten trading days within any twenty trading day period, and the other half will vest, if at any time during such period, the common share price is at or above a VWAP of $20.00 per share for any ten trading days within any twenty trading day period.

(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.

(15)As of September 30, 2023, these investments were categorized as Level 3 within the fair value hierarchy established by ASC 820.

(16)This investment was valued using net asset value as a practical expedient for fair value. Consistent with ASC 820, these investments are excluded from the hierarchical levels.

(17)Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.

(18)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.

(20)This investment was on non-accrual status as of September 30, 2023.

(21)This investment was renamed during the three months ended March 31, 2023. For periods prior to March 31, 2023, this investment was referenced as PFNY Holdings, LLC.

(22)This investment represents a revenue interest financing term loan in which the Company receives periodic interest payments based on a percentage of revenues earned at the respective portfolio company over the life of the loan.

See notes to Consolidated Financial Statements.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 1. Organization

Oaktree Specialty Lending Corporation (together with its consolidated subsidiaries, the "Company") is a specialty finance company that looks to provide customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company was formed in late 2007 and operates as a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act. The Company has qualified and elected to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax purposes.

The Company's investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity and certain equity co-investments. The Company may also seek to generate capital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions.

The Company is externally managed by Oaktree Fund Advisors, LLC ("Oaktree"), pursuant to an investment advisory agreement between the Company and Oaktree (as amended and restated, the "Investment Advisory Agreement"). Oaktree is an affiliate of Oaktree Capital Management, L.P. ("OCM"), the Company's external investment adviser from October 17, 2017 through May 3, 2020. Oaktree Fund Administration, LLC ("Oaktree Administrator"), a subsidiary of OCM, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and Oaktree Administrator (the "Administration Agreement"). See Note 10. In 2019, Brookfield Corporation (f/k/a Brookfield Asset Management Inc.) ("Brookfield") acquired a majority economic interest in Oaktree Capital Group, LLC. Oaktree and its affiliates operate as an independent business within Brookfield, with their own product offerings and investment, marketing and support teams.

On March 19, 2021, the Company acquired Oaktree Strategic Income Corporation (“OCSI”) pursuant to that certain Agreement and Plan of Merger (the “OCSI Merger Agreement”), dated as of October 28, 2020, by and among OCSI, the Company, Lion Merger Sub, Inc., a wholly-owned subsidiary of the Company, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OCSI Merger Agreement, OCSI was merged with and into the Company in a two-step transaction, with the Company as the surviving company (the "OCSI Merger”).

On January 23, 2023, the Company acquired Oaktree Strategic Income II, Inc. (“OSI2”) pursuant to that certain Agreement and Plan of Merger (the “OSI2 Merger Agreement”), dated as of September 14, 2022, by and among OSI2, the Company, Project Superior Merger Sub, Inc., a wholly-owned subsidiary of the Company, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OSI2 Merger Agreement, OSI2 was merged with and into the Company in a two-step transaction with the Company as the surviving company (the “OSI2 Merger”).

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 2. Significant Accounting Policies

Basis of Presentation:

The Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the Consolidated Financial Statements have been made. All intercompany balances and transactions have been eliminated. The Company is an investment company following the accounting and reporting guidance in ASC Topic 946, Financial Services - Investment Companies ("ASC 946").

Certain prior period amounts have been reclassified to conform to the current period presentation. All per share amounts and common shares outstanding have been retroactively adjusted as necessary to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Changes in the economic and political environments, financial markets and any other parameters used in determining these estimates could cause actual results to differ and such differences could be material. Significant estimates include the valuation of investments and revenue recognition.

Consolidation:

The accompanying Consolidated Financial Statements include the accounts of Oaktree Specialty Lending Corporation and its consolidated subsidiaries. Each consolidated subsidiary is wholly-owned and, as such, consolidated into the Consolidated Financial Statements. Certain subsidiaries that hold investments are treated as pass through entities for U.S. federal income tax purposes. The assets of certain of the consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Specialty Lending Corporation or any of its other subsidiaries.

As an investment company, portfolio investments held by the Company are not consolidated into the Consolidated Financial Statements but rather are included on the Statements of Assets and Liabilities as investments at fair value.

Fair Value Measurements:

Oaktree, as the valuation designee of the Company's Board of Directors pursuant to Rule 2a-5 under the Investment Company Act, determines the fair value of the Company's assets on at least a quarterly basis in accordance with ASC 820. ASC 820 defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices over entity-specific inputs. Where observable prices or inputs are not available or reliable, valuation techniques are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments' complexity.

Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

•Level 1 — Unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.

•Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data at the measurement date for substantially the full term of the assets or liabilities.

•Level 3 — Unobservable inputs that reflect Oaktree's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

This includes investment securities that are valued using "bid" and "ask" prices obtained from independent third party pricing services or directly from brokers. These investments may be classified as Level 3 because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities or may require adjustments for investment-specific factors or restrictions.

Financial instruments with readily available quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. As such, Oaktree obtains and analyzes readily available market quotations provided by pricing vendors and brokers for all of the Company's investments for which quotations are available. In determining the fair value of a particular investment, pricing vendors and brokers use observable market information, including both binding and non-binding indicative quotations.

Oaktree seeks to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If Oaktree is unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within Oaktree's set threshold, Oaktree seeks to obtain a quote directly from a broker making a market for the asset. Oaktree evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In addition to ongoing monitoring and back-testing, Oaktree performs due diligence procedures over pricing vendors to understand their methodology and controls to support their use in the valuation process. Generally, Oaktree does not adjust any of the prices received from these sources.

If the quotations obtained from pricing vendors or brokers are determined to not be reliable or are not readily available, Oaktree values such investments using any of three different valuation techniques. The first valuation technique is the transaction precedent technique, which utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable. The second valuation technique is an analysis of the enterprise value ("EV") of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that the Company is deemed to control under the Investment Company Act. To estimate the EV of a portfolio company, Oaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company and competitive dynamics in the company’s industry. Oaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company: (i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase prices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company. Oaktree may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and Oaktree considers the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, Oaktree depends on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.

In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.

Oaktree estimates the fair value of certain privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.

Rule 2a-5 under the Investment Company Act permits boards of directors of registered investment companies and Business Development Companies to either (i) choose to determine fair value in good faith or (ii) designate a valuation designee tasked with determining fair value in good faith, subject to the board’s oversight. The Company's Board of Directors has designated Oaktree to serve as its valuation designee effective September 8, 2022.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Oaktree undertakes a multi-step valuation process each quarter in connection with determining the fair value of the Company's investments:

•The quarterly valuation process begins with each portfolio company or investment being initially valued by Oaktree's valuation team;

•Preliminary valuations are then reviewed and discussed with management of Oaktree;

•Separately, independent valuation firms prepare valuations of the Company's investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to the Company and provide such reports to Oaktree;

•Oaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;

•The Audit Committee reviews the valuation report with Oaktree, and Oaktree responds and supplements the valuation report to reflect any discussions between Oaktree and the Audit Committee; and

•Oaktree, as valuation designee, determines the fair value of each investment in the Company's portfolio.

The fair value of the Company's investments as of June 30, 2024 and September 30, 2023 was determined by Oaktree, as the Company's valuation designee. The Company has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of its portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.

With the exception of the line items entitled "deferred financing costs," "deferred offering costs," "other assets," "deferred tax liability," "credit facilities payable" and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities. The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "due from broker," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.

Foreign Currency Translation:

The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

Derivative Instruments:

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the Company's exposure to fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market at the applicable forward rate. Unrealized appreciation (depreciation) on foreign currency forward contracts is recorded within derivative assets or derivative liabilities on the Consolidated Statements of Assets and Liabilities by counterparty on a net basis, not taking into account collateral posted which is recorded separately, if applicable. Purchases and settlements of foreign currency forward contracts having the same settlement date and counterparty are generally settled net and any realized gains or losses are recognized on the settlement date. The Company does not utilize hedge accounting with respect to foreign currency forward contracts and, as such, the Company recognizes its foreign currency forward contracts at fair value with changes included in the net unrealized appreciation (depreciation) on the Consolidated Statements of Operations.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Interest Rate Swaps

The Company uses interest rate swaps to hedge some of the Company's fixed rate debt. The Company designated the interest rate swaps as the hedging instruments in an effective hedge accounting relationship, and therefore the periodic payments are recognized as components of interest expense in the Consolidated Statements of Operations. Depending on the nature of the balance at period end, the fair value of each interest rate swap is either included as a derivative asset or derivative liability on the Company's Consolidated Statements of Assets and Liabilities. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the fixed rate debt. Any amounts paid to the counterparty to cover collateral obligations under the terms of the interest rate swap agreements are included in due from broker on the Company's Consolidated Statements of Assets and Liabilities.

Investment Income:

Interest Income

Interest income, adjusted for accretion of original issue discount ("OID"), is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash and the portfolio company, in management’s judgment, is likely to continue timely payment of its remaining obligations. As of June 30, 2024, there were eight investments on non-accrual status that in aggregate represented 5.7% and 3.7% of total debt investments at cost and fair value, respectively. As of September 30, 2023, there were four investments on non-accrual status that in aggregate represented 2.4% and 1.8% of total debt investments at cost and fair value, respectively.

In connection with its investment in a portfolio company, the Company sometimes receives nominal cost equity that is valued as part of the negotiation process with the portfolio company. When the Company receives nominal cost equity, the Company allocates its cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.

PIK Interest Income

The Company's investments in debt securities may contain PIK interest provisions. PIK interest, which generally represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company generally ceases accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect the portfolio company to be able to pay all principal and interest due. The Company's decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; the Company's assessment of the portfolio company's business development success; information obtained by the Company in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. The Company's determination to cease accruing PIK interest is generally made well before the Company's full write-down of a loan or debt security. In addition, if it is subsequently determined that the Company will not be able to collect any previously accrued PIK interest, the fair value of the loans or debt securities would be reduced by the amount of such previously accrued, but uncollectible, PIK interest. The accrual of PIK interest on the Company’s debt investments increases the recorded cost basis of these investments in the Consolidated Financial Statements including for purposes of computing the capital gains incentive fee payable by the Company to Oaktree. To maintain its status as a RIC, certain income from PIK interest may be required to be distributed to the Company’s stockholders, even though the Company has not yet collected the cash and may never do so.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Fee Income

Oaktree or its affiliates may provide financial advisory services to portfolio companies and, in return, the Company may receive fees for capital structuring services. These fees are generally non-recurring and are recognized by the Company upon the investment closing date. The Company may also receive additional fees in the ordinary course of business, including servicing, amendment, exit and prepayment fees, which are classified as fee income and recognized as they are earned or the services are rendered.

Dividend Income

The Company generally recognizes dividend income on the ex-dividend date for public securities and the record date for private equity investments. Distributions received from private equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from private equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Cash and Cash Equivalents and Restricted Cash:

Cash and cash equivalents consist of demand deposits and highly liquid investments with maturities of three months or less when acquired. The Company places its cash and cash equivalents and restricted cash with financial institutions and, at times, cash held in bank accounts exceeds the Federal Deposit Insurance Corporation ("FDIC") insurance limit. Cash and cash equivalents are included on the Company's Consolidated Schedule of Investments and cash equivalents are classified as Level 1 assets.

As of June 30, 2024, included in restricted cash was $11.0 million that was held at Deutsche Bank Trust Company Americas in connection with the OSI2 Citibank Facility (as defined in Note 6. Borrowings). Pursuant to the terms of the OSI2 Citibank Facility, the Company was restricted in terms of access to the $11.0 million until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the OSI2 Citibank Facility. As of September 30, 2023, included in restricted cash was $9.1 million that was held at Deutsche Bank Trust Company Americas in connection with the OSI2 Citibank Facility.

Due from Portfolio Companies:

Due from portfolio companies consists of amounts payable to the Company from its portfolio companies, including proceeds from the sale of portfolio companies not yet received or being held in escrow and excluding those amounts attributable to interest, dividends or fees receivable. These amounts are recognized as they become payable to the Company (e.g., principal payments on the scheduled amortization payment date).

Receivables/Payables from Unsettled Transactions:

Receivables/payables from unsettled transactions consist of amounts receivable to or payable by the Company for transactions that have not settled at the reporting date.

Deferred Financing Costs:

Deferred financing costs consist of fees and expenses paid in connection with the closing or amending of credit facilities and debt offerings. Deferred financing costs in connection with credit facilities are capitalized as an asset when incurred. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability when incurred. Deferred financing costs are amortized using the effective interest method over the term of the respective debt arrangement. This amortization expense is included in interest expense in the Consolidated Statements of Operations. Upon early termination or modification of a credit facility, all or a portion of unamortized fees related to such facility may be accelerated into interest expense. For extinguishments of the Company’s unsecured notes payable, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.

Deferred Offering Costs:

Legal fees and other costs incurred in connection with the Company’s shelf registration statement are capitalized as deferred offering costs in the Consolidated Statements of Assets and Liabilities. To the extent any such costs relate to equity offerings, these costs are charged as a reduction of capital upon utilization. To the extent any such costs relate to debt offerings, these costs are treated as deferred financing costs and are amortized over the term of the respective debt arrangement. Any

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

deferred offering costs that remain at the expiration of the shelf registration statement or when it becomes probable that an offering will not be completed are expensed.

Income Taxes:

The Company has elected to be subject to tax as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each taxable year. As a RIC, the Company is not subject to U.S. federal income tax on the portion of its taxable income and gains distributed currently to stockholders as a dividend. Depending on the level of taxable income earned during a taxable year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next taxable year. The Company would then incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. The Company anticipates timely distribution of its taxable income within the tax rules under Subchapter M of the Code. For calendar year 2022, the Company incurred $0.1 million of excise tax. The Company did not incur any U.S. federal excise tax for calendar year 2023. The Company does not expect to incur a U.S. federal excise tax for calendar year 2024.

The Company holds certain portfolio investments through taxable subsidiaries. The purpose of the Company's taxable subsidiaries is to permit the Company to hold equity investments in portfolio companies which are "pass through" entities for U.S. federal income tax purposes in order to comply with the RIC tax requirements. The taxable subsidiaries are consolidated for financial reporting purposes, and portfolio investments held by them are included in the Company’s Consolidated Financial Statements as portfolio investments and recorded at fair value. The taxable subsidiaries are not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. This income tax expense, if any, would be reflected in the Company's Consolidated Statements of Operations. The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net operating loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.

FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the Company's Consolidated Financial Statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management's determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including an ongoing analysis of tax laws, regulations and interpretations thereof. The Company recognizes the tax benefits of uncertain tax positions only where the position is "more-likely-than-not" to be sustained assuming examination by tax authorities. Management has analyzed the Company's tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2021, 2022 and 2023. The Company identifies its major tax jurisdictions as U.S. Federal and California, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023 and interim period within fiscal years beginning after December 15, 2024. The Company does not expect this guidance to materially impact its consolidated financial statements.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 3. Portfolio Investments

As of June 30, 2024, 208.7% of net assets at fair value, or $3.1 billion, was invested in 158 portfolio companies, including (i) $138.5 million in subordinated notes and limited liability company ("LLC") equity interests of Senior Loan Fund JV I, LLC ("SLF JV I"), a joint venture through which the Company and Trinity Universal Insurance Company, a subsidiary of Kemper Corporation ("Kemper"), co-invest in senior secured loans of middle-market companies and other corporate debt securities and (ii) $49.9 million in subordinated notes and LLC equity interests of OCSI Glick JV LLC ("Glick JV" and, together with SLF JV I, the "JVs"), a joint venture through which the Company and GF Equity Funding 2014 LLC ("GF Equity Funding") co-invest primarily in senior secured loans of middle-market companies. As of June 30, 2024, 7.2% of net assets at fair value, or $107.3 million, was invested in cash and cash equivalents (including $11.0 million of restricted cash). In comparison, as of September 30, 2023, 190.8% of net assets at fair value, or $2.9 billion, was invested in 143 portfolio investments, including (i) $141.5 million in subordinated notes and LLC equity interests of SLF JV I and (ii) $50.0 million in subordinated notes and LLC equity interests of Glick JV. As of September 30, 2023, 9.6% of net assets at fair value, or $145.5 million, was invested in cash and cash equivalents (including $9.1 million of restricted cash). As of June 30, 2024, 86.0% of the Company's portfolio at fair value consisted of senior secured debt investments and 9.0% consisted of subordinated debt investments, including the debt investments in the JVs. As of September 30, 2023, 86.5% of the Company's portfolio at fair value consisted of senior secured debt investments and 7.5% consisted of subordinated debt investments, including the debt investments in the JVs.

The Company also held equity investments in certain of its portfolio companies consisting of common stock, preferred stock, warrants or LLC equity interests. These instruments generally do not produce a current return but are held for potential investment appreciation and capital gain.

During the three and nine months ended June 30, 2024, the Company recorded net realized losses of $69.5 million and $84.5 million, respectively. During the three and nine months ended June 30, 2023, the Company recorded net realized losses of $10.6 million and $19.9 million, respectively. During the three and nine months ended June 30, 2024, the Company recorded net unrealized appreciation (depreciation) of $26.2 million and $(24.1) million, respectively. During the three and nine months ended June 30, 2023, the Company recorded net unrealized depreciation of $1.0 million and $42.3 million, respectively.

The composition of the Company's investments as of June 30, 2024 and September 30, 2023 at cost and fair value was as follows:


	June 30, 2024				September 30, 2023
	Cost		Fair Value		Cost		Fair Value
Investments in debt securities	$	2,895,645	$	2,801,310	$	2,654,484	$	2,557,102
Investments in equity securities	178,533		132,034		171,858		143,767
Debt investments in the JVs	163,963		162,542		162,986		162,673
Equity investments in the JVs	54,791		25,817		54,791		28,878
Total	$	3,292,932	$	3,121,703	$	3,044,119	$	2,892,420

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table presents the composition of the Company's debt investments as of June 30, 2024 and September 30, 2023 at fixed rates and floating rates:


	June 30, 2024				September 30, 2023
	Fair Value		% of Debt Portfolio		Fair Value		% of Debt Portfolio
Floating rate debt securities, including the debt investments in the JVs	$	2,526,904	85.26	%	$	2,345,205	86.23	%
Fixed rate debt securities	436,948		14.74		374,570		13.77
Total	$	2,963,852	100.00	%	$	2,719,775	100.00	%

The following table presents the financial instruments carried at fair value as of June 30, 2024 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:


	Level 1		Level 2		Level 3		Measured at Net Asset Value (a)		Total
Investments in debt securities (senior secured)	$	—	$	291,086	$	2,393,159	$	—	$	2,684,245
Investments in debt securities (subordinated, including the debt investments in the JVs, CLO Notes and Credit Linked Notes)	—		49,123		230,484		—		279,607
Investments in equity securities (preferred)	—		—		63,892		—		63,892
Investments in equity securities (common and warrants, including LLC equity interests of the JVs)	1,463		2,175		64,504		25,817		93,959
Total investments at fair value	1,463		342,384		2,752,039		25,817		3,121,703
Cash equivalents	37,364		—		—		—		37,364
Derivative assets	—		436		—		—		436
Total assets at fair value	$	38,827	$	342,820	$	2,752,039	$	25,817	$	3,159,503
Derivative liabilities	$	—	$	33,672	$	—	$	—	$	33,672
Total liabilities at fair value	$	—	$	33,672	$	—	$	—	$	33,672

__________

(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table presents the financial instruments carried at fair value as of September 30, 2023 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:


	Level 1		Level 2		Level 3		Measured at Net Asset Value (a)		Total
Investments in debt securities (senior secured)	$	—	$	208,694	$	2,292,691	$	—	$	2,501,385
Investments in debt securities (subordinated, including the debt investments in the JVs and CLO Notes)	—		28,666		189,724		—		218,390
Investments in equity securities (preferred)	—		—		86,057		—		86,057
Investments in equity securities (common and warrants, including LLC equity interests of the JVs)	4,317		1,953		51,440		28,878		86,588
Total investments at fair value	4,317		239,313		2,619,912		28,878		2,892,420
Cash equivalents	83,262		—		—		—		83,262
Derivative assets	—		4,910		—		—		4,910
Total assets at fair value	$	87,579	$	244,223	$	2,619,912	$	28,878	$	2,980,592
Derivative liabilities	$	—	$	47,519	$	—	$	—	$	47,519
Total liabilities at fair value	$	—	$	47,519	$	—	$	—	$	47,519

__________

When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the fact that the unobservable factors are significant to the overall fair value measurement. However, Level 3 financial instruments typically have both unobservable or Level 3 components and observable components (i.e. components that are actively quoted and can be validated by external sources). Accordingly, the appreciation (depreciation) in the tables below includes changes in fair value due in part to observable factors that are part of the valuation methodology. Transfers between levels are recognized at the beginning of the reporting period.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table provides a roll-forward in the changes in fair value from March 31, 2024 to June 30, 2024 for all investments for which Oaktree determined fair value using unobservable (Level 3) factors:


	Investments
	Senior Secured Debt		Subordinated Debt (including debt investments in the JVs and credit linked notes)		Preferred Equity		Common Equity and Warrants		Total
Fair value as of March 31, 2024	$	2,327,422	$	200,115	$	62,602	$	77,286	$	2,667,425
Purchases	193,956		30,480		—		169		224,605
Sales and repayments	(113,234)		—		—		—		(113,234)
Capitalized PIK interest income	6,287		614		—		—		6,901
Accretion of OID	2,600		349		—		—		2,949
Net unrealized appreciation (depreciation)	7,640		(1,074)		38,883		(12,951)		32,498
Net realized gains (losses)	(31,512)		—		(37,593)		—		(69,105)
Fair value as of June 30, 2024	$	2,393,159	$	230,484	$	63,892	$	64,504	$	2,752,039
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2024 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2024	$	(36,501)	$	(1,074)	$	1,287	$	(14,762)	$	(51,050)

The following table provides a roll-forward in the changes in fair value from March 31, 2023 to June 30, 2023 for all investments for which the Company determined fair value using unobservable (Level 3) factors:


	Investments
	Senior Secured Debt		Subordinated Debt (including debt investments in the JVs)		Preferred Equity		Common Equity and Warrants		Total
Fair value as of March 31, 2023	$	2,493,622	$	183,756	$	91,447	$	25,509	$	2,794,334
Purchases	228,375		4,183		—		182		232,740
Sales and repayments	(191,409)		(350)		—		(7,320)		(199,079)
Transfers out (a)	—		(2,708)		—		—		(2,708)
Capitalized PIK interest income	3,610		358		—		—		3,968
Accretion of OID	4,086		381		—		—		4,467
Net unrealized appreciation (depreciation)	(8,027)		(704)		739		1,893		(6,099)
Net realized gains (losses)	(1,809)		—		—		84		(1,725)
Fair value as of June 30, 2023	$	2,528,448	$	184,916	$	92,186	$	20,348	$	2,825,898
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2023 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2023	$	(10,360)	$	(704)	$	739	$	1,095	$	(9,230)

__________

(a) There were transfers out of Level 3 to Level 2 for certain investments during the three months ended June 30, 2023 as a result of a change in the number of market quotes available and/or a change in market liquidity.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table provides a roll-forward in the changes in fair value from September 30, 2023 to June 30, 2024 for all investments for which Oaktree determined fair value using unobservable (Level 3) factors:


	Investments
	Senior Secured Debt		Subordinated Debt (including debt investments in the JVs and credit linked notes)		Preferred Equity		Common Equity and Warrants		Total
Fair value as of September 30, 2023	$	2,292,691	$	189,724	$	86,057	$	51,440	$	2,619,912
Purchases	656,630		47,507		7,578		1,749		713,464
Sales and repayments	(506,977)		(4,932)		(205)		(860)		(512,974)
Transfers in (a)(b)	23,535		—		—		39,702		63,237
Transfers out (b)	(38,544)		(4,657)		(1,159)		(283)		(44,643)
Capitalized PIK interest income	17,571		1,685		—		—		19,256
Accretion of OID	8,099		984		—		—		9,083
Net unrealized appreciation (depreciation)	(10,702)		127		9,214		(25,631)		(26,992)
Net realized gains (losses)	(49,144)		46		(37,593)		(1,613)		(88,304)
Fair value as of June 30, 2024	$	2,393,159	$	230,484	$	63,892	$	64,504	$	2,752,039
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2024 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2024	$	(54,217)	$	(454)	$	3,276	$	(28,733)	$	(80,128)

__________

(a) There was a $18.9 million transfer into Level 3 from Level 2 for an investment during the nine months ended June 30, 2024 as a result of a change in the number of market quotes available and/or a change in market liquidity.

(b) There were investment restructurings during the nine months ended June 30, 2024 in which (1) $38.5 million of

Level 3 senior secured debt was exchanged for Level 3 common equity, (2) $4.7 million of Level 3 subordinated debt was exchanged for Level 3 senior secured debt, (3) $1.2 million of Level 3 preferred equity was exchanged for Level 3 common equity and (4) $0.3 million of Level 3 common stock was converted to Level 1 common stock.

The following table provides a roll-forward in the changes in fair value from September 30, 2022 to June 30, 2023 for all investments for which Oaktree determined fair value using unobservable (Level 3) factors:


	Investments
	Senior Secured Debt		Subordinated Debt (including debt investments in the JVs)		Preferred Equity		Common Equity and Warrants		Total
Fair value as of September 30, 2022	$	1,910,606	$	159,388	$	79,523	$	19,958	$	2,169,475
Purchases (a)	980,595		26,508		14,296		5,610		1,027,009
Sales and repayments	(357,903)		(1,396)		—		(8,295)		(367,594)
Transfers in (b)	19,075		—		—		—		19,075
Capitalized PIK interest income	12,549		376		—		—		12,925
Accretion of OID	11,684		1,109		—		—		12,793
Net unrealized appreciation (depreciation)	(45,019)		(1,069)		(1,633)		2,804		(44,917)
Net realized gains (losses)	(3,139)		—		—		271		(2,868)
Fair value as of June 30, 2023	$	2,528,448	$	184,916	$	92,186	$	20,348	$	2,825,898
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2023 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2023	$	(46,680)	$	(1,069)	$	(1,633)	$	(355)	$	(49,737)

__________

(a) Includes Level 3 investments acquired in connection with the OSI2 Merger during the nine months ended June 30, 2023.

(b) There was a transfer into Level 3 from Level 2 for an investment during the nine months ended June 30, 2023 as a result of a change in the number of market quotes available and/or a change in market liquidity.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Significant Unobservable Inputs for Level 3 Investments

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of June 30, 2024:

Asset

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted
Average (a)

Senior Secured Debt

2,110,682

Market Yield

(b)

9.0%

39.0%

13.8%

58,783

Enterprise Value

Revenue Multiple

(c)

1.5x

5.5x

3.1x

33,379

Enterprise Value

EBITDA Multiple

(c)

5.5x

6.0x

5.8x

4,199

Transaction Precedent

Transaction Price

(d)

N/A

186,116

Broker Quotations

Broker Quoted Price

(e)

N/A

Subordinated Debt

43,442

Market Yield

(b)

10.0%

40.0%

11.1%

24,500

Transaction Precedent

Transaction Price

(d)

N/A

Debt Investments in the JVs

162,542

Enterprise Value

N/A

(f)

N/A

Preferred & Common Equity

59,829

Enterprise Value

Revenue Multiple

(c)

0.4x

6.3x

2.5x

67,317

Enterprise Value

EBITDA Multiple

(c)

0.3x

15.1x

9.9x

1,250

Enterprise Value

Asset Multiple

(c)

1.0x

1.4x

Total

2,752,039

__________

(a)Weighted averages are calculated based on fair value of investments.

(b)Used when market participants would take into account market yield when pricing the investment.

(c)Used when market participants would use such multiples when pricing the investment.

(d)Used when there is an observable transaction or pending event for the investment.

(e)Oaktree generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. Oaktree evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated.

(f)Oaktree determined the value of its subordinated notes of each JV based on the total assets less the total liabilities senior to the subordinated notes held at such JV in an amount not exceeding par under the EV technique.

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2023:

Asset

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted
Average (a)

Senior Secured Debt

1,904,140

Market Yield

(b)

9.0%

32.0%

14.7%

64,802

Enterprise Value

EBITDA Multiple

(c)

3.0x

6.0x

4.6x

33,816

Transaction Precedent

Transaction Price

(d)

N/A

289,933

Broker quotations

Broker Quoted Price

(e)

N/A

Subordinated Debt

22,881

Market Yield

(b)

10.0%

22.0%

11.2%

4,170

Broker Quotations

Broker Quoted Price

(e)

N/A

Debt Investments in the JVs

162,673

Enterprise Value

N/A

(f)

N/A

Preferred & Common Equity

32,318

Enterprise Value

Revenue Multiple

(c)

0.4x

3.2x

0.5x

103,661

Enterprise Value

EBITDA Multiple

(c)

1.7x

15.1x

8.8x

1,097

Enterprise Value

Asset Multiple

(c)

1.0x

1.4x

421

Transaction Precedent

Transaction Price

(d)

N/A

Total

2,619,912

__________

(a)Weighted averages are calculated based on fair value of investments.

(b)Used when market participants would take into account market yield when pricing the investment.

(c)Used when market participants would use such multiples when pricing the investment.

(d)Used when there is an observable transaction or pending event for the investment.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities is the market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.

Under the EV technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities is the earnings before interest, taxes, depreciation and amortization ("EBITDA"), revenue or asset multiple, as applicable. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.

Financial Instruments Disclosed, But Not Carried, At Fair Value

The following table presents the carrying value and fair value of the Company's financial liabilities disclosed, but not carried, at fair value as of June 30, 2024 and the level of each financial liability within the fair value hierarchy:


	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Syndicated Facility payable	$	505,000	$	505,000	$	—	$	—	$	505,000
OSI2 Citibank Facility payable	285,000		285,000		—		—		285,000
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)	299,179		294,900		—		294,900		—
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)	316,931		317,695		—		317,695		—
2029 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)	291,054		303,642		—		303,642		—
Total	$	1,697,164	$	1,706,237	$	—	$	916,237	$	790,000

The following table presents the carrying value and fair value of the Company's financial liabilities disclosed, but not carried, at fair value as of September 30, 2023 and the level of each financial liability within the fair value hierarchy:


	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Syndicated Facility payable	$	430,000	$	430,000	$	—	$	—	$	430,000
OSI2 Citibank Facility payable	280,000		280,000		—		—		280,000
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)	298,241		286,437		—		286,437		—
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)	306,412		301,784		—		301,784		—
2029 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)	286,078		289,980		—		289,980		—
Total	$	1,600,731	$	1,588,201	$	—	$	878,201	$	710,000

The principal values of the credit facilities payable approximate fair value due to their variable interest rates and are included in Level 3 of the hierarchy. Oaktree used market quotes as of the valuation date to estimate the fair value of the Company's 3.500% notes due 2025 (the "2025 Notes"), 2.700% notes due 2027 (the "2027 Notes") and 7.100% notes due 2029 (the "2029 Notes"), which are included in Level 2 of the hierarchy.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Portfolio Composition

Summaries of the composition of the Company's portfolio at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets are shown in the following tables:


	June 30, 2024				September 30, 2023
Cost:			% of Total Investments				% of Total Investments
Senior secured debt	$	2,779,708	84.42	%	$	2,594,640	85.24	%
Debt investments in the JVs	163,963		4.98	%	162,986		5.35	%
Subordinated debt	115,937		3.52	%	59,844		1.97	%
Common equity and warrants	110,315		3.35	%	72,261		2.37	%
Preferred equity	68,218		2.07	%	99,597		3.27	%
LLC equity interests of the JVs	54,791		1.66	%	54,791		1.80	%
Total	$	3,292,932	100.00	%	$	3,044,119	100.00	%


	June 30, 2024						September 30, 2023
Fair Value:			% of Total Investments		% of Net Assets				% of Total Investments		% of Net Assets
Senior secured debt	$	2,684,245	85.98	%	179.42	%	$	2,501,385	86.47	%	165.01	%
Debt investments in the JVs	162,542		5.21	%	10.86	%	162,673		5.62	%	10.73	%
Subordinated debt	117,065		3.75	%	7.82	%	55,717		1.93	%	3.68	%
Common equity and warrants	68,142		2.18	%	4.55	%	57,710		2.00	%	3.81	%
Preferred equity	63,892		2.05	%	4.27	%	86,057		2.98	%	5.68	%
LLC equity interests of the JVs	25,817		0.83	%	1.73	%	28,878		1.00	%	1.91	%
Total	$	3,121,703	100.00	%	208.65	%	$	2,892,420	100.00	%	190.82	%

The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's business. The following tables show the composition of the Company's portfolio by geographic region at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets:


	June 30, 2024				September 30, 2023
Cost:			% of Total Investments				% of Total Investments
Northeast	$	1,050,743	31.91	%	$	1,012,955	33.27	%
Southeast	471,176		14.31	%	375,247		12.33	%
Midwest	428,884		13.02	%	360,506		11.84	%
International	376,328		11.43	%	418,595		13.75	%
West	351,116		10.66	%	393,390		12.92	%
South	250,457		7.61	%	202,374		6.65	%
Southwest	234,429		7.12	%	153,318		5.04	%
Northwest	129,799		3.94	%	127,734		4.20	%
Total	$	3,292,932	100.00	%	$	3,044,119	100.00	%

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


	June 30, 2024						September 30, 2023
Fair Value:			% of Total Investments		% of Net Assets				% of Total Investments		% of Net Assets
Northeast	$	989,346	31.69	%	66.12	%	$	945,422	32.69	%	62.37	%
Southeast	433,279		13.88	%	28.96	%	354,444		12.25	%	23.38	%
Midwest	422,065		13.52	%	28.21	%	350,620		12.12	%	23.13	%
International	380,934		12.20	%	25.46	%	414,079		14.32	%	27.32	%
West	328,442		10.52	%	21.95	%	384,055		13.28	%	25.34	%
South	245,294		7.86	%	16.40	%	188,541		6.52	%	12.44	%
Southwest	228,456		7.32	%	15.27	%	130,455		4.51	%	8.61	%
Northwest	93,887		3.01	%	6.28	%	124,804		4.31	%	8.23	%
Total	$	3,121,703	100.00	%	208.65	%	$	2,892,420	100.00	%	190.82	%

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following tables show the composition of the Company's portfolio by industry at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets as of June 30, 2024 and September 30, 2023:


	June 30, 2024				September 30, 2023
Cost:			% of Total Investments				% of Total Investments
Application Software	$	557,095	16.95	%	$	468,483	15.39	%
Multi-Sector Holdings (1)	234,940		7.13		219,469		7.21
Health Care Services	131,615		4.00		81,560		2.68
Health Care Technology	127,243		3.86		106,915		3.51
Biotechnology	126,528		3.84		126,349		4.15
Data Processing & Outsourced Services	96,836		2.94		133,410		4.38
Interactive Media & Services	95,784		2.91		19,013		0.62
Industrial Machinery & Supplies & Components	93,198		2.83		99,511		3.27
Pharmaceuticals	86,764		2.63		84,948		2.79
Real Estate Operating Companies	80,818		2.45		83,754		2.75
Diversified Financial Services	69,766		2.12		61,725		2.03
Aerospace & Defense	67,329		2.04		51,797		1.70
Diversified Support Services	67,151		2.04		23,435		0.77
Environmental & Facilities Services	64,630		1.96		63,064		2.07
Fertilizers & Agricultural Chemicals	64,630		1.96		64,720		2.13
Personal Care Products	64,086		1.95		68,146		2.24
Health Care Distributors	64,059		1.95		62,044		2.04
Airport Services	62,573		1.90		55,961		1.84
Metal, Glass & Plastic Containers	61,854		1.88		55,530		1.82
Specialized Finance	58,612		1.78		73,035		2.40
Internet Services & Infrastructure	53,283		1.62		60,934		2.00
Diversified Metals & Mining	50,006		1.52		49,842		1.64
Systems Software	49,583		1.51		23,111		0.76
Home Improvement Retail	49,457		1.50		54,236		1.78
Auto Parts & Equipment	48,310		1.47		48,536		1.59
Communications Equipment	47,604		1.45		—		—
Real Estate Services	44,517		1.35		44,717		1.47
Soft Drinks & Non-alcoholic Beverages	42,676		1.30		42,628		1.40
Automotive Retail	40,831		1.24		57,596		1.89
Office Services & Supplies	38,882		1.18		—		—
Leisure Facilities	38,029		1.15		39,076		1.28
Other Specialty Retail	36,772		1.12		41,088		1.35
Electrical Components & Equipment	32,734		0.99		32,440		1.07
Movies & Entertainment	30,857		0.94		12,188		0.40
Construction Machinery & Heavy Transportation Equipment	26,010		0.79		—		—
Health Care Equipment	25,812		0.78		22,441		0.74
Passenger Airlines	25,009		0.76		24,920		0.82
Real Estate Development	24,974		0.76		23,965		0.79
Wireless Telecommunication Services	24,275		0.74		—		—
Gold	23,418		0.71		23,310		0.77
Home Furnishings	23,170		0.70		23,859		0.78
Broadline Retail	22,143		0.67		83,290		2.74
Construction & Engineering	20,495		0.62		22,102		0.73
Packaged Foods & Meats	19,895		0.60		—		—
Specialty Chemicals	19,457		0.59		38,640		1.27
Oil & Gas Storage & Transportation	19,309		0.59		22,042		0.72
Apparel Retail	17,895		0.54		4,999		0.16
Hotels, Resorts & Cruise Lines	17,114		0.52		17,195		0.56
Alternative Carriers	15,141		0.46		—		—
Food Distributors	14,607		0.44		5,897		0.19
Health Care Supplies	11,561		0.35		11,646		0.38
Advertising	11,345		0.34		25,597		0.84
Integrated Telecommunication Services	9,050		0.27		18,801		0.62
Distributors	8,707		0.26		37,666		1.24
Education Services	8,211		0.25		13,871		0.46
Financial Exchanges & Data	6,881		0.21		—		—
Cable & Satellite	6,861		0.21		4,619		0.15
Research & Consulting Services	4,844		0.15		4,871		0.16
Paper & Plastic Packaging Products & Materials	3,393		0.10		3,254		0.11
Housewares & Specialties	2,750		0.08		2,908		0.10
Diversified Chemicals	1,553		0.05		—		—
Insurance Brokers	—		—		52,856		1.74
Consumer Finance	—		—		16,440		0.54
Restaurants	—		—		12,603		0.41
Air Freight & Logistics	—		—		4,925		0.16
Integrated Oil & Gas	—		—		4,894		0.16
Other Specialized REITs	—		—		4,379		0.14
Leisure Products	—		—		2,055		0.07
Technology Distributors	—		—		813		0.03
	$	3,292,932	100.00	%	$	3,044,119	100.00	%

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


	June 30, 2024						September 30, 2023
Fair Value:			% of Total Investments		% of Net Assets				% of Total Investments		% of Net Assets
Application Software	$	513,205	16.47	%	34.33	%	$	455,719	15.73	%	30.03	%
Multi-Sector Holdings (1)	205,257		6.58		13.72		193,431		6.69		12.76
Biotechnology	128,673		4.12		8.60		125,678		4.35		8.29
Health Care Services	112,704		3.61		7.53		66,683		2.31		4.40
Health Care Technology	103,893		3.33		6.94		95,404		3.30		6.29
Interactive Media & Services	96,263		3.08		6.43		19,199		0.66		1.27
Industrial Machinery & Supplies & Components	94,189		3.02		6.30		98,352		3.40		6.49
Data Processing & Outsourced Services	90,828		2.91		6.07		125,259		4.33		8.26
Pharmaceuticals	83,557		2.68		5.58		80,455		2.78		5.31
Real Estate Operating Companies	79,437		2.54		5.31		82,463		2.85		5.44
Diversified Financial Services	69,007		2.21		4.61		60,003		2.07		3.96
Aerospace & Defense	68,814		2.20		4.60		51,862		1.79		3.42
Diversified Support Services	67,642		2.17		4.52		23,352		0.81		1.54
Environmental & Facilities Services	63,768		2.04		4.26		62,413		2.16		4.12
Fertilizers & Agricultural Chemicals	63,185		2.02		4.22		63,185		2.18		4.17
Health Care Distributors	62,922		2.02		4.21		60,865		2.10		4.02
Specialized Finance	58,702		1.88		3.92		69,590		2.41		4.59
Personal Care Products	58,500		1.87		3.91		59,928		2.07		3.95
Airport Services	55,033		1.76		3.68		54,453		1.88		3.59
Internet Services & Infrastructure	52,884		1.69		3.53		60,579		2.09		4.00
Diversified Metals & Mining	50,419		1.62		3.37		49,869		1.72		3.29
Systems Software	49,527		1.59		3.31		21,968		0.76		1.45
Auto Parts & Equipment	48,654		1.56		3.25		49,148		1.70		3.24
Home Improvement Retail	48,378		1.55		3.23		53,168		1.84		3.51
Communications Equipment	47,647		1.53		3.18		—		—		—
Metal, Glass & Plastic Containers	47,035		1.51		3.14		53,459		1.85		3.53
Real Estate Services	43,542		1.39		2.91		43,886		1.52		2.90
Soft Drinks & Non-alcoholic Beverages	42,443		1.36		2.84		42,391		1.47		2.80
Automotive Retail	38,919		1.25		2.60		55,805		1.93		3.68
Office Services & Supplies	38,366		1.23		2.56		—		—		—
Other Specialty Retail	37,426		1.20		2.50		41,115		1.42		2.71
Leisure Facilities	37,286		1.19		2.49		36,963		1.28		2.44
Electrical Components & Equipment	32,285		1.03		2.16		32,573		1.13		2.15
Movies & Entertainment	31,176		1.00		2.08		11,865		0.41		0.78
Passenger Airlines	26,924		0.86		1.80		27,512		0.95		1.82
Construction Machinery & Heavy Transportation Equipment	26,046		0.83		1.74		—		—		—
Real Estate Development	24,840		0.80		1.66		23,679		0.82		1.56
Wireless Telecommunication Services	24,297		0.78		1.62		—		—		—
Gold	23,867		0.76		1.60		23,328		0.81		1.54
Health Care Equipment	22,741		0.73		1.52		22,436		0.78		1.48
Broadline Retail	22,268		0.71		1.49		69,040		2.39		4.55
Construction & Engineering	20,000		0.64		1.34		21,903		0.76		1.45
Packaged Foods & Meats	19,912		0.64		1.33		—		—		—
Specialty Chemicals	19,482		0.62		1.30		38,615		1.34		2.55
Apparel Retail	18,064		0.58		1.21		5,002		0.17		0.33
Oil & Gas Storage & Transportation	17,737		0.57		1.19		16,040		0.55		1.06
Hotels, Resorts & Cruise Lines	16,861		0.54		1.13		16,991		0.59		1.12
Alternative Carriers	15,320		0.49		1.02		—		—		—
Home Furnishings	15,076		0.48		1.01		19,954		0.69		1.32
Food Distributors	14,492		0.46		0.97		5,166		0.18		0.34
Advertising	11,390		0.36		0.76		11,955		0.41		0.79
Health Care Supplies	11,337		0.36		0.76		11,363		0.39		0.75
Integrated Telecommunication Services	8,525		0.27		0.57		16,492		0.57		1.09
Education Services	8,105		0.26		0.54		13,618		0.47		0.90
Distributors	7,618		0.24		0.51		37,311		1.29		2.46
Financial Exchanges & Data	6,880		0.22		0.46		—		—		—
Cable & Satellite	6,105		0.20		0.41		4,546		0.16		0.30
Research & Consulting Services	4,939		0.16		0.33		4,831		0.17		0.32
Paper & Plastic Packaging Products & Materials	3,234		0.10		0.22		3,061		0.11		0.20
Housewares & Specialties	2,512		0.08		0.17		2,808		0.10		0.19
Diversified Chemicals	1,565		0.05		0.10		—		—		—
Insurance Brokers	—		—		—		53,050		1.83		3.50
Consumer Finance	—		—		—		15,087		0.52		1.00
Restaurants	—		—		—		12,464		0.43		0.82
Integrated Oil & Gas	—		—		—		4,785		0.17		0.32
Air Freight & Logistics	—		—		—		4,263		0.15		0.28
Other Specialized REITs	—		—		—		3,198		0.11		0.21
Leisure Products	—		—		—		2,063		0.07		0.14
Technology Distributors	—		—		—		776		0.03		0.05
Total	$	3,121,703	100.00	%	208.65	%	$	2,892,420	100.00	%	190.82	%

___________________

(1)This industry includes the Company's investments in the JVs and CLOs.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

As of June 30, 2024 and September 30, 2023, the Company had no single investment that represented greater than 10% of the total investment portfolio at fair value. Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses, may fluctuate and in any given period can be highly concentrated among several investments.

Senior Loan Fund JV I, LLC

In May 2014, the Company entered into an LLC agreement with Kemper to form SLF JV I. The Company co-invests in senior secured loans of middle-market companies and other corporate debt securities with Kemper through its investment in SLF JV I. SLF JV I is managed by a four person Board of Directors, two of whom are selected by the Company and two of whom are selected by Kemper. All portfolio decisions and investment decisions in respect of SLF JV I must be approved by the SLF JV I investment committee, which consists of one representative selected by the Company and one representative selected by Kemper (with approval from a representative of each required). Since the Company does not have a controlling financial interest in SLF JV I, the Company does not consolidate SLF JV I.

SLF JV I is capitalized pro rata with LLC equity interests as transactions are completed and may be capitalized with additional subordinated notes issued to the Company and Kemper by SLF JV I. The subordinated notes issued by SLF JV I (the "SLF JV I Notes") are senior in right of payment to SLF JV I LLC equity interests and subordinated in right of payment to SLF JV I’s secured debt. As of June 30, 2024 and September 30, 2023, the Company and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I and the outstanding SLF JV I Notes. SLF JV I is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act.

SLF JV I has a revolving credit facility with Bank of America, N.A. (as amended and/or restated from time to

time, the "SLF JV I Facility"), which permitted up to $270.0 million of borrowings (subject to borrowing base and other limitations) as of June 30, 2024. Borrowings under the SLF JV I Facility are secured by all of the assets of SLF JV I Funding II LLC, a special purpose financing subsidiary of SLF JV I. As of June 30, 2024, the revolving period of the SLF JV I Facility was scheduled to expire April 17, 2027 and the maturity date was April 22, 2027. As of June 30, 2024, borrowings under the SLF JV I Facility accrued interest at a rate equal to daily SOFR plus 1.70% per annum. As of June 30, 2024 and September 30, 2023, $198.0 million and $149.0 million of borrowings were outstanding under the SLF JV I Facility, respectively.

As of June 30, 2024 and September 30, 2023, SLF JV I had total assets of $390.8 million and $376.1 million, respectively. SLF JV I's portfolio primarily consisted of senior secured loans to 49 and 48 portfolio companies as of June 30, 2024 and September 30, 2023, respectively. The portfolio companies in SLF JV I are in industries similar to those in which the Company may invest directly. As of June 30, 2024, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $138.5 million in aggregate, at fair value. As of September 30, 2023, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $141.5 million in aggregate, at fair value.

As of each of June 30, 2024 and September 30, 2023, the Company and Kemper had funded approximately $190.5 million to SLF JV I, of which $166.7 million was from the Company. As of each of June 30, 2024 and September 30, 2023, the Company had aggregate commitments to fund SLF JV I of $13.1 million, of which approximately $9.8 million was to fund additional SLF JV I Notes and approximately $3.3 million was to fund LLC equity interests in SLF JV I.

Below is a summary of SLF JV I's portfolio, followed by a listing of the individual loans in SLF JV I's portfolio as of June 30, 2024 and September 30, 2023:


	June 30, 2024	September 30, 2023
Senior secured loans (1)	$353,579	$332,637
Weighted average interest rate on senior secured loans (2)	9.83%	10.62%
Number of borrowers in SLF JV I	49	48
Largest exposure to a single borrower (1)	$11,161	$11,286
Total of five largest loan exposures to borrowers (1)	$53,328	$54,051

__________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

SLF JV I Portfolio as of June 30, 2024


Portfolio Company	Industry	Type of Investment	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Shares	Principal		Cost		Fair Value (3)		Notes
Access CIG, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.00%	10.33%		8/18/2028		$	10,522	$	10,426	$	10,602	(4)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	11.82%		12/18/2025		1,092		1,082		1,059		(4)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.10%		12/18/2025		6,258		6,216		6,071		(4)
Alvogen Pharma US, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	12.98%		6/30/2025		8,446		8,413		7,813		(4)
American Tire Distributors, Inc.	Distributors	First Lien Term Loan	SOFR+	6.25%	11.84%		10/20/2028		3,352		3,311		2,445		(4)
Artera Services LLC	Construction & Engineering	First Lien Term Loan	SOFR+	4.50%	9.83%		2/15/2031		7,481		7,425		7,530
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Revolver	SOFR+	6.00%	11.46%		12/29/2027		205		199		180		(4)(5)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	6.00%	11.59%		12/29/2027		4,103		4,055		3,901		(4)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	6.75%	12.08%		2/25/2028		2,553		2,499		2,342		(4)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	5.25%	10.58%		10/25/2028		4,037		2,108		1,894		(4)
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.00%	9.44%		8/19/2028		7,795		7,598		7,720
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.25%	9.69%		8/19/2028		1,975		1,886		1,963
athenahealth Group Inc.	Health Care Technology	First Lien Term Loan	SOFR+	3.25%	8.59%		2/15/2029		9,057		8,801		9,038
Aurora Lux Finco S.À.R.L.	Airport Services	First Lien Term Loan	SOFR+	7.00%	8.43%	4.00%	12/24/2026		6,480		6,424		6,260		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.60%		6/11/2027		1,740		1,728		1,672		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.60%		6/11/2027		6,258		6,199		6,014		(4)
Bausch + Lomb Corporation	Health Care Supplies	First Lien Term Loan	SOFR+	3.25%	8.69%		5/10/2027		9,196		9,025		9,110
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Common Stock						171			—		—		(4)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Preferred Equity						7,193,540			7,194		5,683		(4)
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Term Loan	SOFR+	6.00%	11.49%		8/10/2027		2,348		2,323		1,928
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Term Loan	SOFR+	6.00%	12.64%		8/10/2027		1,979		1,956		1,625
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Revolver	SOFR+	6.00%	11.50%		8/10/2027		600		594		492		(5)
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Term Loan	SOFR+	6.00%	12.49%		8/10/2027		1,955		1,935		1,605
Cloud Software Group, Inc.	Application Software	First Lien Term Loan	SOFR+	4.00%	9.33%		3/30/2029		8,173		7,610		8,177
Covetrus, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.00%	10.33%		10/13/2029		6,295		5,982		6,102		(4)
Crown Subsea Communications Holding, Inc.	Alternative Carriers	First Lien Term Loan	SOFR+	4.75%	10.08%		1/30/2031		8,000		7,920		8,032		(4)
Curium Bidco S.à.r.l.	Pharmaceuticals	First Lien Term Loan	SOFR+	4.00%	9.33%		7/31/2029		8,665		8,581		8,713
Dealer Tire Financial, LLC	Distributors	First Lien Term Loan	SOFR+	3.75%	9.09%		12/14/2027		9,950		9,928		9,953
DirecTV Financing, LLC	Cable & Satellite	First Lien Term Loan	SOFR+	5.25%	10.71%		8/2/2029		6,872		6,793		6,851		(4)
DTI Holdco, Inc.	Research & Consulting Services	First Lien Term Loan	SOFR+	4.75%	10.09%		4/26/2029		9,052		8,929		9,100		(4)
Eagle Parent Corp.	Diversified Support Services	First Lien Term Loan	SOFR+	4.25%	9.58%		4/2/2029		1,181		1,179		1,151
Frontier Communications Holdings, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	3.75%	9.21%		10/8/2027		3,723		3,685		3,726
Frontier Communications Holdings, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	3.50%	8.85%		7/1/2031		7,000		6,965		7,000
Harbor Purchaser Inc.	Education Services	First Lien Term Loan	SOFR+	5.25%	10.70%		4/9/2029		7,860		7,698		7,500		(4)

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


Portfolio Company	Industry	Type of Investment	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Shares	Principal		Cost		Fair Value (3)		Notes
Husky Injection Molding Systems Ltd.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	5.00%	10.33%		2/15/2029		$	3,952	$	3,897	$	3,966
Indivior Finance S.À.R.L.	Pharmaceuticals	First Lien Term Loan	SOFR+	5.25%	10.71%		6/30/2026		7,275		7,216		7,266
INW Manufacturing, LLC	Personal Care Products	First Lien Term Loan	SOFR+	5.75%	11.35%		3/25/2027		8,625		8,504		7,245		(4)
KDC/ONE Development Corp Inc	Personal Care Products	First Lien Term Loan	SOFR+	4.50%	9.84%		8/15/2028		8,890		8,661		8,925
LABL, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.00%	10.44%		10/29/2028		6,917		6,725		6,841		(4)
LaserAway Intermediate Holdings II, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.75%	11.33%		10/14/2027		7,313		7,232		7,343
Lightbox Intermediate, L.P.	Real Estate Services	First Lien Term Loan	SOFR+	5.00%	10.60%		5/9/2026		11,161		11,060		10,826		(4)
McAfee Corp.	Systems Software	First Lien Term Loan	SOFR+	3.25%	8.58%		3/1/2029		5,910		5,665		5,911
Mitchell International, Inc.	Application Software	First Lien Term Loan	SOFR+	3.25%	8.59%		6/17/2031		5,000		4,975		4,964
Peraton Corp.	Aerospace & Defense	First Lien Term Loan	SOFR+	3.75%	9.19%		2/1/2028		1,983		1,983		1,987
PetSmart LLC	Other Specialty Retail	First Lien Term Loan	SOFR+	3.75%	9.19%		2/11/2028		7,969		7,888		7,956
Pluralsight, LLC	Application Software	First Lien Revolver	SOFR+	8.00%			4/6/2027		507		493		248		(4)(6)
Pluralsight, LLC	Application Software	First Lien Term Loan	SOFR+	8.00%			4/6/2027		8,116		7,890		3,977		(4)(6)
Renaissance Holding Corp.	Education Services	First Lien Term Loan	SOFR+	4.25%	9.60%		4/5/2030		8,943		8,810		8,947
SCIH Salt Holdings Inc.	Diversified Chemicals	First Lien Term Loan	SOFR+	3.50%	8.83%		3/16/2027		2,972		2,972		2,978
Shearer's Foods LLC	Packaged Foods & Meats	First Lien Term Loan	SOFR+	4.00%	9.34%		2/12/2031		7,000		6,930		7,057
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	8.00%	13.44%		8/29/2024		940		893		940
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.23%			4/27/2024		139		140		120		(6)
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.25%			4/27/2024		8,194		8,233		7,031		(6)
SM Wellness Holdings, Inc.	Health Care Services	First Lien Term Loan	SOFR+	4.50%	10.09%		4/17/2028		2,954		2,625		2,921		(4)
Southern Veterinary Partners, LLC	Health Care Facilities	First Lien Term Loan	SOFR+	3.75%	9.09%		10/5/2027		8,623		8,585		8,652
SPX Flow, Inc.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	3.50%	8.84%		4/5/2029		7,045		6,796		7,094
Staples, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.75%	11.08%		9/4/2029		5,349		5,136		4,920		(4)
Star Parent, Inc.	Life Sciences Tools & Services	First Lien Term Loan	SOFR+	3.75%	9.08%		9/27/2030		7,980		7,860		7,983
SupplyOne, Inc.	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	4.25%	9.59%		4/19/2031		4,489		4,444		4,501
Swissport Stratosphere USA LLC	Air Freight & Logistics	First Lien Term Loan	SOFR+	4.25%	9.56%		4/4/2031		5,500		5,473		5,522
Tacala, LLC	Restaurants	First Lien Term Loan	SOFR+	4.00%	9.34%		1/31/2031		10,973		10,945		11,033
Touchstone Acquisition, Inc.	Health Care Supplies	First Lien Term Loan	SOFR+	6.00%	11.43%		12/29/2028		7,157		7,065		7,005		(4)
Trident TPI Holdings, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan	SOFR+	4.00%	9.34%		9/15/2028		7,500		7,500		7,519
Total Portfolio Investments									$	353,579	$	353,263	$	344,930

_________

(1) Represents the interest rate as of June 30, 2024. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to SOFR which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. As of June 30, 2024, the reference rates for SLF JV I's variable rate loans were the 30-day SOFR at 5.34% and the 90-day SOFR at 5.32%. Most loans include an interest floor, which generally ranges from 0% to 2%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(3) Represents the current determination of fair value as of June 30, 2024 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the valuation process described elsewhere herein.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

(4) This investment was held by both the Company and SLF JV I as of June 30, 2024.

(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.

(6) This investment was on non-accrual status as of June 30, 2024.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

SLF JV I Portfolio as of September 30, 2023


Portfolio Company	Industry	Type of Investment	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Shares	Principal		Cost		Fair Value (3)		Notes
Access CIG, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.00%	10.32%		8/18/2028		$	8,596	$	8,503	$	8,499
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	11.90%		12/18/2025		1,149		1,135		1,128		(4)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.15%		12/18/2025		6,771		6,701		6,648		(4)
Altice France S.A.	Integrated Telecommunication Services	First Lien Term Loan	L+	4.00%	9.63%		8/14/2026		2,969		2,853		2,810
Alvogen Pharma US, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	13.04%		6/30/2025		8,798		8,737		8,218		(4)
American Rock Salt Company LLC	Diversified Metals & Mining	First Lien Term Loan	SOFR+	4.00%	9.43%		6/9/2028		4,957		4,734		4,614
American Tire Distributors, Inc.	Distributors	First Lien Term Loan	SOFR+	6.25%	11.81%		10/20/2028		4,824		4,763		4,239		(4)
Amplify Finco Pty Ltd.	Movies & Entertainment	First Lien Term Loan	SOFR+	4.15%	9.54%		11/26/2026		7,720		7,643		7,720
Anastasia Parent, LLC	Personal Care Products	First Lien Term Loan	SOFR+	3.75%	9.40%		8/11/2025		1,523		1,191		1,099		(4)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Revolver	SOFR+	6.00%			12/29/2027		—		(7)		(29)		(4)(5)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	6.00%	11.63%		12/29/2027		4,134		4,076		3,892		(4)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	5.25%	10.90%		10/25/2028		5,052		4,888		3,817		(4)
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.00%	9.42%		8/19/2028		4,950		4,747		4,809
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.25%	9.67%		8/19/2028		1,990		1,884		1,937
Asurion, LLC	Property & Casualty Insurance	Second Lien Term Loan	SOFR+	5.25%	10.68%		1/20/2029		4,346		4,036		3,871
athenahealth Group Inc.	Health Care Technology	First Lien Term Loan	SOFR+	3.25%	8.57%		2/15/2029		4,320		4,080		4,251
Aurora Lux Finco S.À.R.L.	Airport Services	First Lien Term Loan	SOFR+	6.00%	11.49%		12/24/2026		6,289		6,216		6,028		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.65%		6/11/2027		1,753		1,742		1,711		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.65%		6/11/2027		6,306		6,247		6,155		(4)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Common Stock						171			—		—		(4)
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Preferred Equity						7,193,540			7,194		5,683		(4)
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Term Loan	SOFR+	6.00%	11.55%		8/10/2027		2,354		2,322		2,281
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Term Loan	SOFR+	6.00%	11.55%		8/10/2027		1,983		1,954		1,921
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Revolver	SOFR+	6.00%	11.57%		8/10/2027		600		592		581
Centerline Communications, LLC	Wireless Telecommunication Services	First Lien Term Loan	SOFR+	6.00%	11.55%		8/10/2027		1,960		1,935		1,899
Covetrus, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.00%	10.39%		10/13/2029		6,343		5,983		6,285		(4)
Curium Bidco S.à.r.l.	Biotechnology	First Lien Term Loan	SOFR+	4.50%	9.89%		7/31/2029		8,730		8,642		8,730
DirecTV Financing, LLC	Cable & Satellite	First Lien Term Loan	SOFR+	5.00%	10.43%		8/2/2027		5,799		5,715		5,681		(4)
DTI Holdco, Inc.	Research & Consulting Services	First Lien Term Loan	SOFR+	4.75%	10.12%		4/26/2029		7,920		7,792		7,729		(4)
Gibson Brands, Inc.	Leisure Products	First Lien Term Loan	SOFR+	5.00%	10.57%		8/11/2028		7,369		7,295		6,190		(4)
Harbor Purchaser Inc.	Education Services	First Lien Term Loan	SOFR+	5.25%	10.67%		4/9/2029		7,920		7,731		7,517		(4)
Indivior Finance S.À.R.L.	Pharmaceuticals	First Lien Term Loan	SOFR+	5.25%	10.90%		6/30/2026		7,331		7,249		7,340

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


Portfolio Company	Industry	Type of Investment	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Shares	Principal		Cost		Fair Value (3)		Notes
INW Manufacturing, LLC	Personal Care Products	First Lien Term Loan	SOFR+	5.75%	11.40%		3/25/2027		$	9,000	$	8,839	$	7,080	(4)
KDC/ONE Development Corp Inc	Personal Care Products	First Lien Term Loan	SOFR+	5.00%	10.32%		8/15/2028		10,000		9,666		9,665
LABL, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.00%	10.42%		10/29/2028		3,962		3,815		3,955
LaserAway Intermediate Holdings II, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.75%	11.32%		10/14/2027		7,369		7,269		7,267
Lightbox Intermediate, L.P.	Real Estate Services	First Lien Term Loan	SOFR+	5.00%	10.65%		5/9/2026		11,249		11,106		10,912		(4)
McAfee Corp.	Systems Software	First Lien Term Loan	SOFR+	3.75%	9.18%		3/1/2029		5,940		5,654		5,812
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Revolver	SOFR+	7.00%			2/14/2025		—		(2)		(8)		(4)(5)
Mindbody, Inc.	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	7.00%	12.52%		2/14/2025		4,669		4,648		4,594		(4)
Mitchell International, Inc.	Application Software	First Lien Term Loan	SOFR+	3.75%	9.18%		10/15/2028		2,985		2,845		2,941
MRI Software LLC	Application Software	First Lien Revolver	SOFR+	5.50%			2/10/2026		—		(3)		(7)		(4)(5)
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.99%		2/10/2026		8,319		8,164		8,147		(4)
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.99%		2/10/2026		2,211		2,210		2,165		(4)
Northern Star Industries Inc.	Electrical Components & Equipment	First Lien Term Loan	SOFR+	4.76%	10.15%		3/31/2025		6,615		6,608		6,565
OEConnection LLC	Application Software	First Lien Term Loan	SOFR+	4.00%	9.43%		9/25/2026		10,987		10,827		10,971
Park Place Technologies, LLC	Internet Services & Infrastructure	First Lien Term Loan	SOFR+	5.00%	10.42%		11/10/2027		9,825		9,492		9,698		(4)
Planview Parent, Inc.	Application Software	First Lien Term Loan	SOFR+	4.00%	9.65%		12/17/2027		2,416		2,298		2,390
Planview Parent, Inc.	Application Software	Second Lien Term Loan	SOFR+	7.25%	12.74%		12/18/2028		4,503		4,435		4,098		(4)
Pluralsight, LLC	Application Software	First Lien Revolver	SOFR+	8.00%	13.45%		4/6/2027		318		301		297		(4)(5)
Pluralsight, LLC	Application Software	First Lien Term Loan	SOFR+	8.00%	13.45%		4/6/2027		8,116		7,850		7,773		(4)
Renaissance Holding Corp.	Education Services	First Lien Term Loan	SOFR+	4.75%	9.99%		4/5/2030		5,000		4,860		4,969
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.23%	10.86%		4/27/2024		138		138		94
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.25%	10.88%		4/27/2024		8,113		8,111		5,531
SM Wellness Holdings, Inc.	Health Care Services	First Lien Term Loan	SOFR+	4.75%	10.38%		4/17/2028		2,977		2,580		2,799		(4)
Southern Veterinary Partners, LLC	Health Care Facilities	First Lien Term Loan	SOFR+	4.00%	9.43%		10/5/2027		7,680		7,642		7,643
Spanx, LLC	Apparel Retail	First Lien Term Loan	SOFR+	5.25%	10.67%		11/20/2028		8,843		8,713		8,717		(4)
SPX Flow, Inc.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	4.50%	9.92%		4/5/2029		8,801		8,442		8,794
Star Parent, Inc.	Life Sciences Tools & Services	First Lien Term Loan	SOFR+	4.00%	9.33%		9/19/2030		8,000		7,880		7,834
TIBCO Software Inc.	Application Software	First Lien Term Loan	SOFR+	4.50%	9.99%		3/30/2029		8,215		7,559		7,913
Touchstone Acquisition, Inc.	Health Care Supplies	First Lien Term Loan	SOFR+	6.00%	11.42%		12/29/2028		7,212		7,103		7,022		(4)
Veritas US Inc.	Application Software	First Lien Term Loan	SOFR+	5.00%	10.43%		9/1/2025		6,305		6,257		5,500
Windstream Services II, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	6.25%	11.67%		9/21/2027		6,148		6,008		5,939		(4)
WP CPP Holdings, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	3.75%	9.27%		4/30/2025		1,965		1,920		1,855		(4)
Total Portfolio Investments									$	332,637	$	331,808	$	322,179

_________

(1) Represents the interest rate as of September 30, 2023. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to SOFR and/or LIBOR, which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. As of September 30, 2023, the reference rates for SLF JV I's variable rate loans were the 30-day SOFR at 5.32%, the 90-day SOFR at 5.39% and the 30-day LIBOR at 5.43%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

(3) Represents the current determination of fair value as of September 30, 2023 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the valuation process described elsewhere herein.

(4) This investment was held by both the Company and SLF JV I as of September 30, 2023.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Both the cost and fair value of the Company's SLF JV I Notes were $112.7 million as of each of June 30, 2024 and September 30, 2023. The Company earned interest income of $3.5 million and $10.7 million on the SLF JV I Notes for the three and nine months ended June 30, 2024, respectively. The Company earned interest income of $3.4 million and $9.2 million on the SLF JV I Notes for the three and nine months ended June 30, 2023, respectively. As of June 30, 2024, the SLF JV I Notes bore interest at a rate of one-month SOFR plus 7.00% per annum with a SOFR floor of 1.00% and will mature on December 29, 2028.

The cost and fair value of the LLC equity interests in SLF JV I held by the Company were $54.8 million and $25.8 million, respectively, as of June 30, 2024, and $54.8 million and $28.9 million, respectively, as of September 30, 2023. The Company earned $1.4 million and $4.2 million in dividend income for the three and nine months ended June 30, 2024, respectively, with respect to its investment in the LLC equity interests of SLF JV I. The Company earned $1.1 million and $3.2 million in dividend income for the three and nine months ended June 30, 2023, respectively, with respect to its investment in the LLC equity interests of SLF JV I. The LLC equity interests of SLF JV I are generally dividend producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.

Below is certain summarized financial information for SLF JV I as of June 30, 2024 and September 30, 2023 and for the three and nine months ended June 30, 2024 and 2023:


	June 30, 2024		September 30, 2023
Selected Balance Sheet Information:
Investments at fair value (cost June 30, 2024: $353,263; cost September 30, 2023: $331,808)	$	344,930	$	322,179
Cash and cash equivalents	24,006		31,950
Restricted cash	6,994		2,987
Other assets	14,840		18,988
Total assets	$	390,770	$	376,104

Senior credit facility payable	$	198,000	$	149,000
Secured borrowings	13,292		38,845
SLF JV I Notes payable at fair value (proceeds June 30, 2024: $128,750; proceeds September 30, 2023: $128,750)	128,750		128,750
Other liabilities	21,222		26,630
Total liabilities	$	361,264	$	343,225
Members' equity	29,506		32,879
Total liabilities and members' equity	$	390,770	$	376,104


	Three months ended June 30, 2024		Three months ended June 30, 2023		Nine months ended June 30, 2024		Nine months ended June 30, 2023
Selected Statements of Operations Information:
Interest income	$	9,463	$	10,312	$	28,665	$	29,106
Other income	—		—		159		62
Total investment income	9,463		10,312		28,824		29,168
Senior credit facility and secured borrowing interest expense	4,071		4,190		11,910		12,004
SLF JV I Notes interest expense	4,048		3,859		12,196		10,511
Other expenses	46		73		246		249
Total expenses (1)	8,165		8,122		24,352		22,764
Net investment income	1,298		2,190		4,472		6,404
Net unrealized appreciation (depreciation)	(319)		2,652		1,299		4,075
Net realized gains (losses)	(3,784)		(2,137)		(4,343)		(4,850)
Net income (loss)	$	(2,805)	$	2,705	$	1,428	$	5,629

__________

(1) There are no management fees or incentive fees charged at SLF JV I.

SLF JV I has elected to fair value the SLF JV I Notes issued to the Company and Kemper under FASB ASC Topic 825, Financial Instruments - Fair Value Option ("ASC 825"). The SLF JV I Notes are valued based on the total assets less the total liabilities senior to the SLF JV I Notes in an amount not exceeding par under the EV technique.

During the nine months ended June 30, 2024, the Company purchased $14.0 million of senior secured debt investments from SLF JV I for $13.3 million cash consideration, which represented the fair value at the time of purchase. During the nine months ended June 30, 2023, the Company sold $18.8 million of senior secured debt investments to SLF JV I for $18.0 million

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

cash consideration, which represented the fair value at the time of sale. A loss of $0.2 million was recognized by the Company on these transactions.

OCSI Glick JV LLC

On March 19, 2021, the Company became party to the LLC agreement of Glick JV. The Company co-invests primarily in senior secured loans of middle-market companies with GF Equity Funding through the Glick JV. The Glick JV is managed by a four person Board of Directors, two of whom are selected by the Company and two of whom are selected by GF Equity Funding. The Glick JV is capitalized as transactions are completed, and portfolio decisions and investment decisions in respect of the Glick JV must be approved by the Glick JV investment committee, which consists of one representative selected by the Company and one representative selected by GF Equity Funding (with approval from a representative of each required). Since the Company does not have a controlling financial interest in the Glick JV, the Company does not consolidate the Glick JV.

The members provide capital to the Glick JV in exchange for LLC equity interests, and the Company and GF Debt Funding 2014 LLC ("GF Debt Funding"), an entity advised by affiliates of GF Equity Funding, provide capital to the Glick JV in exchange for subordinated notes issued by the Glick JV (the "Glick JV Notes"). As of June 30, 2024 and September 30, 2023, the Company and GF Equity Funding owned 87.5% and 12.5%, respectively, of the outstanding LLC equity interests, and the Company and GF Debt Funding owned 87.5% and 12.5%, respectively, of the Glick JV Notes. The Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act.

The Glick JV has a revolving credit facility with Bank of America, N.A. (as amended and/or restated from time to

time, the "Glick JV Facility"), which, as of June 30, 2024, had a revolving period end date and maturity date of April 17, 2027 and April 22, 2027, respectively, and permitted borrowings of up to $100.0 million (subject to borrowing base and other limitations). Borrowings under the Glick JV Facility are secured by all of the assets of OCSL Glick JV Funding II LLC, a special purpose financing subsidiary of the Glick JV. As of June 30, 2024, borrowings under the Glick JV Facility bore interest at a rate equal to daily SOFR plus 1.70% per annum. $78.0 million and $53.0 million of borrowings were outstanding under the Glick JV Facility as of June 30, 2024 and September 30, 2023, respectively.

As of June 30, 2024 and September 30, 2023, the Glick JV had total assets of $150.2 million and $141.2 million, respectively. The Glick JV's portfolio consisted of middle-market and other corporate debt securities of 45 and 38 portfolio companies as of June 30, 2024 and September 30, 2023, respectively. The portfolio companies in the Glick JV are in industries similar to those in which the Company may invest directly. The Company's investment in the Glick JV consisted of LLC equity interests and Glick JV Notes of $49.9 million and $50.0 million in the aggregate at fair value as of June 30, 2024 and September 30, 2023, respectively. The Glick JV Notes are junior in right of payment to the repayment of temporary contributions made by the Company to fund investments of the Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Glick JV Notes, respectively.

As of each of June 30, 2024 and September 30, 2023, the Glick JV had total capital commitments of $100.0 million, $87.5 million of which was from the Company and the remaining $12.5 million of which was from GF Equity Funding and GF Debt Funding. Approximately $84.0 million in aggregate commitments were funded as of each of June 30, 2024 and September 30, 2023, of which $73.5 million was from the Company. As of each of June 30, 2024 and September 30, 2023, the Company had commitments to fund Glick JV Notes of $78.8 million, of which $12.4 million were unfunded. As of each of June 30, 2024 and September 30, 2023, the Company had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million were unfunded.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Below is a summary of the Glick JV's portfolio, followed by a listing of the individual loans in the Glick JV's portfolio as of June 30, 2024 and September 30, 2023:


	June 30, 2024	September 30, 2023
Senior secured loans (1)	$139,298	$130,589
Weighted average current interest rate on senior secured loans (2)	9.53%	10.77%
Number of borrowers in the Glick JV	45	38
Largest loan exposure to a single borrower (1)	$6,891	$6,230
Total of five largest loan exposures to borrowers (1)	$27,461	$28,396

__________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

Glick JV Portfolio as of June 30, 2024


Portfolio Company	Industry	Investment Type	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Principal		Cost		Fair Value (3)		Notes
Access CIG, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.00%	10.33%		8/18/2028	$	1,985	$	1,951	$	2,000	(4)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	11.82%		12/18/2025	546		542		529		(4)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.10%		12/18/2025	3,462		3,440		3,359		(4)
Alvogen Pharma US, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	12.98%		6/30/2025	5,981		5,956		5,532		(4)
American Tire Distributors, Inc.	Distributors	First Lien Term Loan	SOFR+	6.25%	11.84%		10/20/2028	1,988		1,963		1,450		(4)
Artera Services LLC	Construction & Engineering	First Lien Term Loan	SOFR+	4.50%	9.83%		2/15/2031	2,494		2,475		2,510
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	6.00%	11.59%		12/29/2027	1,703		1,684		1,620		(4)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Revolver	SOFR+	6.00%	11.46%		12/29/2027	85		83		75		(4)(5)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	6.75%	12.08%		2/25/2028	1,050		1,037		963		(4)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	5.25%	10.58%		10/25/2028	1,661		1,665		779		(4)
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.25%	9.69%		8/19/2028	988		943		981
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.00%	9.44%		8/19/2028	3,157		3,077		3,126
athenahealth Group Inc.	Health Care Technology	First Lien Term Loan	SOFR+	3.25%	8.59%		2/15/2029	2,950		2,852		2,944
Aurora Lux Finco S.À.R.L.	Airport Services	First Lien Term Loan	SOFR+	7.00%	8.43%	4.00%	12/24/2026	3,738		3,706		3,611		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.60%		6/11/2027	3,337		3,306		3,207		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.60%		6/11/2027	794		789		763		(4)
Bausch + Lomb Corporation	Health Care Supplies	First Lien Term Loan	SOFR+	3.25%	8.69%		5/10/2027	3,728		3,660		3,693
Cloud Software Group, Inc.	Application Software	First Lien Term Loan	SOFR+	4.00%	9.33%		3/30/2029	2,627		2,454		2,629
Covetrus, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.00%	10.33%		10/13/2029	2,745		2,607		2,661		(4)
Crown Subsea Communications Holding, Inc.	Alternative Carriers	First Lien Term Loan	SOFR+	4.75%	10.08%		1/30/2031	3,000		2,970		3,012		(4)
Curium Bidco S.à.r.l.	Pharmaceuticals	First Lien Term Loan	SOFR+	4.00%	9.33%		7/31/2029	2,820		2,799		2,836
Dealer Tire Financial, LLC	Distributors	First Lien Term Loan	SOFR+	3.75%	9.09%		12/14/2027	4,074		4,065		4,076
DirecTV Financing, LLC	Cable & Satellite	First Lien Term Loan	SOFR+	5.25%	10.71%		8/2/2029	3,028		3,002		3,018		(4)
DTI Holdco, Inc.	Research & Consulting Services	First Lien Term Loan	SOFR+	4.75%	10.09%		4/26/2029	3,543		3,496		3,562		(4)
Eagle Parent Corp.	Diversified Support Services	First Lien Term Loan	SOFR+	4.25%	9.58%		4/2/2029	393		388		383
Frontier Communications Holdings, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	3.50%	8.85%		7/1/2031	3,000		2,985		3,000

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


Portfolio Company	Industry	Investment Type	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Principal		Cost		Fair Value (3)		Notes
Frontier Communications Holdings, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	3.75%	9.21%		10/8/2027	$	1,862	$	1,842	$	1,863
Harbor Purchaser Inc.	Education Services	First Lien Term Loan	SOFR+	5.25%	10.70%		4/9/2029	3,930		3,849		3,750		(4)
Husky Injection Molding Systems Ltd.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	5.00%	10.33%		2/15/2029	2,433		2,400		2,442
Indivior Finance S.À.R.L.	Pharmaceuticals	First Lien Term Loan	SOFR+	5.25%	10.71%		6/30/2026	3,880		3,848		3,875
INW Manufacturing, LLC	Personal Care Products	First Lien Term Loan	SOFR+	5.75%	11.35%		3/25/2027	2,156		2,126		1,811		(4)
KDC US Holdings, Inc.	Personal Care Products	First Lien Term Loan	SOFR+	4.50%	9.84%		8/15/2028	3,551		3,448		3,565
LABL, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.00%	10.44%		10/29/2028	995		974		984		(4)
LaserAway Intermediate Holdings II, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.75%	11.33%		10/14/2027	3,900		3,857		3,916
Mitchell International, Inc.	Application Software	First Lien Term Loan	SOFR+	3.25%	8.59%		6/17/2031	2,500		2,488		2,482
Peraton Corp.	Aerospace & Defense	First Lien Term Loan	SOFR+	3.75%	9.19%		2/1/2028	992		992		993
PetSmart LLC	Other Specialty Retail	First Lien Term Loan	SOFR+	3.75%	9.19%		2/11/2028	2,987		2,949		2,982
Pluralsight, LLC	Application Software	First Lien Term Loan	SOFR+	8.00%			4/6/2027	5,182		5,052		2,539		(4)(6)
Pluralsight, LLC	Application Software	First Lien Revolver	SOFR+	8.00%			4/6/2027	360		349		176		(4)(6)
Renaissance Holding Corp.	Education Services	First Lien Term Loan	SOFR+	4.25%	9.60%		4/5/2030	1,990		1,985		1,991
SCIH Salt Holdings Inc.	Diversified Chemicals	First Lien Term Loan	SOFR+	3.50%	8.83%		3/16/2027	1,486		1,486		1,489
Shearer's Foods LLC	Packaged Foods & Meats	First Lien Term Loan	SOFR+	4.00%	9.34%		2/12/2031	3,000		2,970		3,025
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.25%			4/27/2024	6,089		6,119		5,224		(6)
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.23%			4/27/2024	104		104		89		(6)
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	8.00%	13.44%		8/29/2024	698		664		698
Southern Veterinary Partners, LLC	Health Care Facilities	First Lien Term Loan	SOFR+	3.75%	9.09%		10/5/2027	3,275		3,258		3,286
SPX Flow, Inc.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	3.50%	8.84%		4/5/2029	4,185		4,049		4,214
Staples, Inc.	Office Services & Supplies	First Lien Term Loan	SOFR+	5.75%	11.08%		9/4/2029	1,919		1,843		1,765		(4)
Star Parent, Inc.	Life Sciences Tools & Services	First Lien Term Loan	SOFR+	3.75%	9.08%		9/27/2030	3,990		3,930		3,992
SupplyOne, Inc.	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	4.25%	9.59%		4/19/2031	1,496		1,481		1,500
Swissport Stratosphere USA LLC	Air Freight & Logistics	First Lien Term Loan	SOFR+	4.25%	9.56%		4/4/2031	2,000		1,990		2,008
Tacala, LLC	Restaurants	First Lien Term Loan	SOFR+	4.00%	9.34%		1/31/2031	3,990		3,980		4,012
Touchstone Acquisition, Inc.	Health Care Supplies	First Lien Term Loan	SOFR+	6.00%	11.43%		12/29/2028	2,971		2,932		2,908		(4)
Trident TPI Holdings, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan	SOFR+	4.00%	9.34%		9/15/2028	2,500		2,500		2,507
Total Portfolio Investments								$	139,298	$	137,360	$	132,405

__________

(1) Represents the interest rate as of June 30, 2024. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for all of the floating rate loans is indexed to SOFR, which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. As of June 30, 2024, the reference rates for the Glick JV's variable rate loans were the 30-day SOFR at 5.34% and the 90-day SOFR at 5.32%. Most loans include an interest floor, which generally ranges from 0% to 2%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(4) This investment was held by both the Company and the Glick JV as of June 30, 2024.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

(6) This investment was on non-accrual status as of June 30, 2024.

Glick JV Portfolio as of September 30, 2023


Portfolio Company	Industry	Investment Type	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Principal		Cost		Fair Value (3)		Notes
Access CIG, LLC	Diversified Support Services	First Lien Term Loan	SOFR+	5.00%	10.32%		8/18/2028	$	2,000	$	1,960	$	1,978
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	11.90%		12/18/2025	574		568		564		(4)
ADB Companies, LLC	Construction & Engineering	First Lien Term Loan	SOFR+	6.50%	12.15%		12/18/2025	3,746		3,709		3,678		(4)
Alvogen Pharma US, Inc.	Pharmaceuticals	First Lien Term Loan	SOFR+	7.50%	13.04%		6/30/2025	6,230		6,185		5,819		(4)
American Rock Salt Company LLC	Diversified Metals & Mining	First Lien Term Loan	SOFR+	4.00%	9.43%		6/9/2028	2,478		2,367		2,307
American Tire Distributors, Inc.	Distributors	First Lien Term Loan	SOFR+	6.25%	11.81%		10/20/2028	2,860		2,825		2,514		(4)
Amplify Finco Pty Ltd.	Movies & Entertainment	First Lien Term Loan	SOFR+	4.15%	9.54%		11/26/2026	2,895		2,866		2,895
Amynta Agency Borrower Inc.	Property & Casualty Insurance	First Lien Term Loan	SOFR+	5.00%	10.42%		2/28/2028	2,993		2,913		2,997
Anastasia Parent, LLC	Personal Care Products	First Lien Term Loan	SOFR+	3.75%	9.40%		8/11/2025	907		705		654		(4)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Term Loan	SOFR+	6.00%	11.63%		12/29/2027	1,716		1,692		1,616		(4)
ASP-R-PAC Acquisition Co LLC	Paper & Plastic Packaging Products & Materials	First Lien Revolver	SOFR+	6.00%			12/29/2027	—		(3)		(12)		(4)(5)
Astra Acquisition Corp.	Application Software	First Lien Term Loan	SOFR+	5.25%	10.90%		10/25/2028	2,078		2,039		1,570		(4)
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.00%	9.42%		8/19/2028	1,980		1,899		1,924
Asurion, LLC	Property & Casualty Insurance	First Lien Term Loan	SOFR+	4.25%	9.67%		8/19/2028	995		942		968
Asurion, LLC	Property & Casualty Insurance	Second Lien Term Loan	SOFR+	5.25%	10.68%		1/20/2029	2,423		2,244		2,158
athenahealth Group Inc.	Health Care Technology	First Lien Term Loan	SOFR+	3.25%	8.57%		2/15/2029	1,772		1,674		1,744
Aurora Lux Finco S.À.R.L.	Airport Services	First Lien Term Loan	SOFR+	6.00%	11.49%		12/24/2026	3,628		3,586		3,478		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.65%		6/11/2027	3,363		3,332		3,282		(4)
BAART Programs, Inc.	Health Care Services	First Lien Term Loan	SOFR+	5.00%	10.65%		6/11/2027	800		795		780		(4)
Covetrus, Inc.	Health Care Distributors	First Lien Term Loan	SOFR+	5.00%	10.39%		10/13/2029	2,766		2,607		2,741		(4)
Curium Bidco S.à.r.l.	Biotechnology	First Lien Term Loan	SOFR+	4.50%	9.89%		7/31/2029	2,841		2,820		2,841
DirecTV Financing, LLC	Cable & Satellite	First Lien Term Loan	SOFR+	5.00%	10.43%		8/2/2027	2,460		2,435		2,410		(4)
DTI Holdco, Inc.	Research & Consulting Services	First Lien Term Loan	SOFR+	4.75%	10.12%		4/26/2029	2,970		2,922		2,899		(4)
Gibson Brands, Inc.	Leisure Products	First Lien Term Loan	SOFR+	5.00%	10.57%		8/11/2028	3,930		3,891		3,301		(4)
Harbor Purchaser Inc.	Education Services	First Lien Term Loan	SOFR+	5.25%	10.67%		4/9/2029	3,960		3,865		3,759		(4)
Indivior Finance S.À.R.L.	Pharmaceuticals	First Lien Term Loan	SOFR+	5.25%	10.90%		6/30/2026	3,910		3,866		3,915
INW Manufacturing, LLC	Personal Care Products	First Lien Term Loan	SOFR+	5.75%	11.40%		3/25/2027	2,250		2,210		1,770		(4)
KDC/ONE Development Corp Inc	Personal Care Products	First Lien Term Loan	SOFR+	5.00%	10.32%		8/15/2028	4,500		4,350		4,349

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


Portfolio Company	Industry	Investment Type	Index	Spread	Cash Interest Rate (1)(2)	PIK	Maturity Date	Principal		Cost		Fair Value (3)		Notes
LaserAway Intermediate Holdings II, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.75%	11.32%		10/14/2027	$	3,930	$	3,877	$	3,876
MRI Software LLC	Application Software	First Lien Term Loan	SOFR+	5.50%	10.99%		2/10/2026	1,630		1,616		1,596		(4)
MRI Software LLC	Application Software	First Lien Revolver	SOFR+	5.50%			2/10/2026	—		(1)		(3)		(4)(5)
Northern Star Industries Inc.	Electrical Components & Equipment	First Lien Term Loan	SOFR+	4.76%	10.15%		3/31/2025	5,198		5,192		5,159
OEConnection LLC	Application Software	First Lien Term Loan	SOFR+	4.00%	9.43%		9/25/2026	3,849		3,830		3,843
Planview Parent, Inc.	Application Software	First Lien Term Loan	SOFR+	4.00%	9.65%		12/17/2027	683		650		676
Planview Parent, Inc.	Application Software	Second Lien Term Loan	SOFR+	7.25%	12.74%		12/18/2028	2,842		2,799		2,586		(4)
Pluralsight, LLC	Application Software	First Lien Term Loan	SOFR+	8.00%	13.45%		4/6/2027	5,182		5,029		4,964		(4)
Pluralsight, LLC	Application Software	First Lien Revolver	SOFR+	8.00%	13.45%		4/6/2027	226		216		211		(4)(5)
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.25%	10.88%		4/27/2024	6,029		6,025		4,110
SHO Holding I Corporation	Footwear	First Lien Term Loan	SOFR+	5.23%	10.86%		4/27/2024	103		102		70
Southern Veterinary Partners, LLC	Health Care Facilities	First Lien Term Loan	SOFR+	4.00%	9.43%		10/5/2027	3,292		3,275		3,276
Spanx, LLC	Apparel Retail	First Lien Term Loan	SOFR+	5.25%	10.67%		11/20/2028	4,913		4,840		4,843		(4)
SPX Flow, Inc.	Industrial Machinery & Supplies & Components	First Lien Term Loan	SOFR+	4.50%	9.92%		4/5/2029	5,227		5,032		5,224
Star Parent, Inc.	Life Sciences Tools & Services	First Lien Term Loan	SOFR+	4.00%	9.33%		9/27/2030	4,000		3,939		3,916
TIBCO Software Inc.	Application Software	First Lien Term Loan	SOFR+	4.50%	9.99%		3/30/2029	2,641		2,439		2,544
Touchstone Acquisition, Inc.	Health Care Supplies	First Lien Term Loan	SOFR+	6.00%	11.42%		12/29/2028	2,993		2,948		2,914		(4)
Windstream Services II, LLC	Integrated Telecommunication Services	First Lien Term Loan	SOFR+	6.25%	11.67%		9/21/2027	3,843		3,756		3,712		(4)
WP CPP Holdings, LLC	Aerospace & Defense	First Lien Term Loan	SOFR+	3.75%	9.27%		4/30/2025	983		960		927		(4)
Total Portfolio Investments								$	130,589	$	127,788	$	123,343

__________

(1) Represents the interest rate as of September 30, 2023. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for all of the floating rate loans is indexed to SOFR, which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. As of September 30, 2023, the reference rates for the Glick JV's variable rate loans were the 30-day SOFR at 5.32% and the 90-day SOFR at 5.39%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(4) This investment was held by both the Company and the Glick JV as of September 30, 2023.

The cost and fair value of the Company's aggregate investment in the Glick JV was $51.3 million and $49.9 million, respectively, as of June 30, 2024. The cost and fair value of the Company's aggregate investment in the Glick JV was $50.3 million and $50.0 million, respectively, as of September 30, 2023. For the three and nine months ended June 30, 2024, the Company's investment in the Glick JV Notes earned interest income of $1.8 million and $5.4 million, respectively. For the three and nine months ended June 30, 2023, the Company's investment in the Glick JV Notes earned interest income of $1.8 million and $5.0 million, respectively. The Company did not earn dividend income for the three and nine months ended June 30, 2024 and 2023 with respect to its investment in the LLC equity interest of the Glick JV. As of June 30, 2024, the Glick JV Notes bore interest at a rate of one-month SOFR plus 4.50% per annum and will mature on October 20, 2028.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Below is certain summarized financial information for the Glick JV as of June 30, 2024 and September 30, 2023 and for the three and nine months ended June 30, 2024 and 2023:


	June 30, 2024		September 30, 2023
Selected Balance Sheet Information:
Investments at fair value (cost June 30, 2024: $137,360; cost September 30, 2023: $127,788)	$	132,405	$	123,343
Cash and cash equivalents	13,109		12,119
Restricted cash	—		184
Other assets	4,655		5,521
Total assets	$	150,169	$	141,167

Senior credit facility payable	$	78,000	$	53,000
Glick JV Notes payable at fair value (proceeds June 30, 2024: $66,685; proceeds September 30, 2023: $66,685)	57,012		57,201
Secured borrowings	6,576		18,106
Other liabilities	8,581		12,860
Total liabilities	$	150,169	$	141,167
Members' equity	—		—
Total liabilities and members' equity	$	150,169	$	141,167


	Three months ended June 30, 2024		Three months ended June 30, 2023		Nine months ended June 30, 2024		Nine months ended June 30, 2023
Selected Statements of Operations Information:
Interest income	$	3,605	$	3,576	$	10,926	$	10,488
Fee income	4		—		64		35
Total investment income	3,609		3,576		10,990		10,523
Senior credit facility and secured borrowing interest expense	1,631		1,400		4,608		4,002
Glick JV Notes interest expense	1,675		1,577		5,048		4,394
Other expenses	32		70		110		148
Total expenses (1)	3,338		3,047		9,766		8,544
Net investment income	271		529		1,224		1,979
Net unrealized appreciation (depreciation)	328		431		(321)		(159)
Realized gain (loss)	(599)		(960)		(903)		(1,820)
Net income (loss)	$	—	$	—	$	—	$	—

__________

(1) There are no management fees or incentive fees charged at the Glick JV.

The Glick JV has elected to fair value the Glick JV Notes issued to the Company and GF Debt Funding under ASC 825. The Glick JV Notes are valued based on the total assets less the liabilities senior to the Glick JV Notes in an amount not exceeding par under the EV technique.

During the nine months ended June 30, 2024, the Company purchased $4.9 million of senior secured debt investments from Glick JV for $4.9 million cash consideration, which represented the fair value at the time of purchase.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 4. Fee Income

For the three and nine months ended June 30, 2024, the Company recorded total fee income of $1.5 million and $5.3 million, respectively, of which $0.2 million and $0.5 million, respectively, was recurring in nature. For the three and nine months ended June 30, 2023, the Company recorded total fee income of $1.6 million and $6.0 million, respectively, of which $0.2 million and $0.8 million, respectively, was recurring in nature. Recurring fee income primarily consisted of servicing fees.

Note 5. Share Data and Net Assets

The share and per share information disclosed in Note 5 have been retroactively adjusted as necessary to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share, pursuant to ASC Topic 260-10, Earnings per Share, for the three and nine months ended June 30, 2024 and 2023:


(Share amounts in thousands)	Three months ended June 30, 2024		Three months ended June 30, 2023		Nine months ended June 30, 2024		Nine months ended June 30, 2023
Earnings (loss) per common share — basic and diluted:
Net increase (decrease) in net assets resulting from operations	$	1,120	$	36,685	$	20,992	$	71,379
Weighted average common shares outstanding — basic and diluted	81,830		77,080		79,804		70,431
Earnings (loss) per common share — basic and diluted	$	0.01	$	0.48	$	0.26	$	1.01

Changes in Net Assets

The following table presents the changes in net assets for the three and nine months ended June 30, 2024:


	Common Stock
(Share amounts in thousands)	Shares	Par Value		Additional paid-in-capital		Accumulated Overdistributed Earnings		Total Net Assets
Balance as of September 30, 2023	77,225	$	772	$	2,166,330	$	(651,338)	$	1,515,764
Net investment income	—	—		—		44,189		44,189
Net unrealized appreciation (depreciation)	—	—		—		(25,025)		(25,025)
Net realized gains (losses)	—	—		—		(8,453)		(8,453)
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		(176)		(176)
Distributions to stockholders	—	—		—		(48,897)		(48,897)
Issuance of common stock in connection with the "at the market" offering	1,641	17		32,296		—		32,313
Issuance of common stock under dividend reinvestment plan	99	1		1,935		—		1,936
Balance as of December 31, 2023	78,965	$	790	$	2,200,561	$	(689,700)	$	1,511,651
Net investment income	—	—		—		41,367		41,367
Net unrealized appreciation (depreciation)	—	—		—		(25,252)		(25,252)
Net realized gains (losses)	—	—		—		(6,603)		(6,603)
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		(175)		(175)
Distributions to stockholders	—	—		—		(44,715)		(44,715)
Issuance of common stock in connection with the "at the market" offering	2,334	23		45,950		—		45,973
Issuance of common stock under dividend reinvestment plan	97	1		1,852		—		1,853
Balance as of March 31, 2024	81,396	$	814	$	2,248,363	$	(725,078)	$	1,524,099
Net investment income	—	—		—		44,575		44,575
Net unrealized appreciation (depreciation)	—	—		—		26,199		26,199
Net realized gains (losses)	—	—		—		(69,452)		(69,452)
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		(202)		(202)
Distributions to stockholders	—	—		—		(45,180)		(45,180)
Issuance of common stock in connection with the "at the market" offering	749	7		14,214		—		14,221
Issuance of common stock under dividend reinvestment plan	100	1		1,872		—		1,873
Balance as of June 30, 2024	82,245	$	822	$	2,264,449	$	(769,138)	$	1,496,133

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table presents the changes in net assets for the three and nine months ended June 30, 2023:


	Common Stock
(Share amounts in thousands)	Shares	Par Value		Additional paid-in-capital		Accumulated Overdistributed Earnings		Total Net Assets
Balance as of September 30, 2022	61,125	$	611	$	1,827,721	$	(582,769)	$	1,245,563
Net investment income	—	—		—		38,808		38,808
Net unrealized appreciation (depreciation)	—	—		—		(22,982)		(22,982)
Net realized gains (losses)	—	—		—		(3,203)		(3,203)
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		549		549
Distributions to stockholders	—	—		—		(58,679)		(58,679)
Issuance of common stock under dividend reinvestment plan	95	1		1,932		—		1,933
Balance as of December 31, 2022	61,220	$	612	$	1,829,653	$	(628,276)	$	1,201,989
Net investment income	—	—		—		45,978		45,978
Net unrealized appreciation (depreciation)	—	—		—		(18,279)		(18,279)
Net realized gains (losses)	—	—		—		(6,111)		(6,111)
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		(66)		(66)
Distributions to stockholders	—	—		—		(42,395)		(42,395)
Issuance of common stock in connection with the OSI2 Merger	15,860	159		333,875		—		334,034
Issuance of common stock under dividend reinvestment plan	68	1		1,294		—		1,295
Repurchase of common stock under dividend reinvestment plan	(68)	(1)		(1,294)		—		(1,295)
Balance as of March 31, 2023	77,080	$	771	$	2,163,528	$	(649,149)	$	1,515,150
Net investment income	—	—		—		48,413		48,413
Net unrealized appreciation (depreciation)	—	—		—		(1,039)		(1,039)
Net realized gains (losses)	—	—		—		(10,603)		(10,603)
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		(86)		(86)
Distributions to stockholders	—	—		—		(42,394)		(42,394)
Issuance of common stock under dividend reinvestment plan	57	1		1,122		—		1,123
Repurchase of common stock under dividend reinvestment plan	(57)	(1)		(1,122)		—		(1,123)
Balance as of June 30, 2023	77,080	$	771	$	2,163,528	$	(654,858)	$	1,509,441

Distributions

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the Board of Directors and is based on management’s estimate of the Company’s annual taxable income. Net realized capital gains, if any, may be distributed to stockholders or retained for reinvestment.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s Board of Directors declares a cash distribution, then the Company’s stockholders who have not “opted out” of the Company’s DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. If the Company’s shares are trading at a premium to net asset value, the Company typically issues new shares to implement the DRIP with such shares issued at the greater of the most recently computed net asset value per share of common stock or 95% of the current market price per share of common stock on the payment date for such distribution. If the Company’s shares are trading at a discount to net asset value, the Company typically purchases shares in the open market in connection with the Company’s obligations under the DRIP.

For income tax purposes, the Company has reported its distributions for the 2023 calendar year as ordinary income. The character of such distributions was appropriately reported to the Internal Revenue Service and stockholders for the 2023 calendar year. To the extent the Company’s taxable earnings for a fiscal and taxable year fall below the amount of distributions paid for the fiscal and taxable year, a portion of the total amount of the Company’s distributions for the fiscal and taxable year is deemed a return of capital for U.S. federal income tax purposes to the Company’s stockholders.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table reflects the distributions per share that the Company has paid, including shares issued under the DRIP, on its common stock during the nine months ended June 30, 2024 and 2023:


Distribution	Date Declared	Record Date	Payment Date	Amount per Share		Cash Distribution			DRIP Shares Issued		DRIP Shares Value
Quarterly	November 8, 2023	December 15, 2023	December 29, 2023	$	0.55	$	41.7	million	87,472	(1)	$	1.7	million
Special	November 8, 2023	December 15, 2023	December 29, 2023	$	0.07	$	5.3	million	11,133	(1)	$	0.2	million
Quarterly	January 26, 2024	March 15, 2024	March 29, 2024	$	0.55	$	42.8	million	96,850	(1)	$	1.9	million
Quarterly	April 26, 2024	June 14, 2024	June 28, 2024	$	0.55	$	43.3	million	100,029	(1)	$	1.9	million
Total for the nine months ended June 30, 2024				$	1.72	$	133.1	million	295,484		$	5.7	million
Distribution	Date Declared	Record Date	Payment Date	Amount per Share		Cash Distribution			DRIP Shares Issued		DRIP Shares Value (3)
Quarterly	November 10, 2022	December 15, 2022	December 30, 2022	$	0.54	$	32.0	million	53,369	(1)	$	1.1	million
Special	November 10, 2022	December 15, 2022	December 30, 2022	$	0.42	$	24.8	million	41,510	(1)	$	0.8	million
Quarterly	January 27, 2023	March 15, 2023	March 31, 2023	$	0.55	$	41.1	million	68,412	(2)	$	1.3	million
Quarterly	April 28, 2023	June 15, 2023	June 30, 2023	$	0.55	$	41.3	million	57,279	(2)	$	1.1	million
Total for the nine months ended June 30, 2023				$	2.06	$	139.1	million	220,570		$	4.4	million

__________

(1) New shares were issued and distributed.

(2) Shares were purchased on the open market and distributed.

(3) Totals may not sum due to rounding.

Common Stock Issuances

During the three and nine months ended June 30, 2024, the Company issued 100,029 and 295,484 shares of common stock, respectively, as part of the DRIP. During the three and nine months ended June 30, 2023, the Company issued zero and 94,879 shares of common stock, respectively, as part of the DRIP.

On February 7, 2022, the Company entered into an equity distribution agreement by and among the Company, Oaktree, Oaktree Administrator and Keefe, Bruyette & Woods, Inc., JMP Securities LLC, Raymond James & Associates, Inc. and SMBC Nikko Securities America, Inc., as placement agents, in connection with the issuance and sale by the Company of shares of common stock, having an aggregate offering price of up to $125.0 million. The equity distribution agreement was amended on February 8, 2023 to allow for the sale of shares of the Company’s common stock having an aggregate offering price of up to $125 million under the Company’s current registration statement and on August 8, 2023 to add Jefferies LLC as an additional placement agent and to remove SMBC Nikko Securities America, Inc. as a placement agent. Sales of the common stock may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or similar securities exchanges or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.

In connection with the "at the market" offering, the Company issued and sold 4,724,506 shares of common stock during the nine months ended June 30, 2024 for net proceeds of $92.5 million (net of offering costs).


	Number of Shares Issued	Gross Proceeds		Placement Agent Fees		Net Proceeds (1)		Average Sales Price per Share (2)
"At the market" offering	4,724,506	$	93,685	$	937	$	92,748	$	19.83

(1) Net proceeds excludes offering costs of $0.2 million.

(2) Represents the gross sales price before deducting placement agent fees and estimated offering expenses.

In connection with the "at the market" offering, the Company did not issue or sell any shares of common stock during the nine months ended June 30, 2023.

Note 6. Borrowings

Syndicated Facility

On November 30, 2017, the Company entered into a senior secured revolving credit facility (as amended and restated, the “Syndicated Facility”) pursuant to a Senior Secured Revolving Credit Agreement with the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc. and MUFG Union Bank,

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

N.A., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents. The Syndicated Facility provides that the Company may use the proceeds of the loans and issuances of letters of credit under the Syndicated Facility for general corporate purposes, including acquiring and funding leveraged loans, mezzanine loans, high-yield securities, convertible securities, preferred stock, common stock and other investments. The Syndicated Facility further allows the Company to request letters of credit from ING Capital LLC, as the issuing bank.

As of June 30, 2024, the size of the Syndicated Facility was $1.218 billion. In addition, pursuant to an "accordion" feature, the Company may increase the size of the facility to up to the greater of $1.25 billion and the Company's net worth, as defined in the facility, under certain circumstances.

As of June 30, 2024, (i) the period during which the Company may make drawings with respect to $1.035 billion of commitments will expire on June 23, 2027 and the maturity date is June 23, 2028, (ii) the period during which the Company may make drawings with respect to the remaining commitments will expire on May 4, 2025 and the maturity date is May 4, 2026 and (iii) the interest rate margin for (a) SOFR loans (which may be 1- or 3-month, at the Company’s option) was 2.00% plus a SOFR adjustment which ranges between 0.11448% and 0.26161% and (b) alternate base rate loans was 1.00%.

The Syndicated Facility is secured by substantially all of the Company’s assets (excluding, among other things, investments held in and by certain subsidiaries of the Company (including OSI 2 Senior Lending SPV, LLC, or “OSI 2 SPV”) or investments in certain portfolio companies of the Company) and guaranteed by certain subsidiaries of the Company.

The Syndicated Facility requires the Company to, among other things, (i) make representations and warranties regarding the collateral as well as each of the Company’s portfolio companies’ businesses, (ii) agree to certain indemnification obligations, and (iii) comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including covenants related to: (A) limitations on the incurrence of additional indebtedness and liens, (B) limitations on certain investments, (C) limitations on certain asset transfers and restricted payments, (D) maintaining a certain minimum stockholders’ equity, (E) maintaining a ratio of total assets (less total liabilities) to total indebtedness, of the Company and its subsidiaries (subject to certain exceptions), of not less than 1.50 to 1.00, (F) maintaining a ratio of consolidated EBITDA to consolidated interest expense, of the Company and its subsidiaries (subject to certain exceptions), of not less than 2.25 to 1.00, (G) maintaining a minimum liquidity and net worth, and (H) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries. The Syndicated Facility also includes usual and customary default provisions such as the failure to make timely payments under the facility, the occurrence of a change in control, and the failure by the Company to materially perform under the agreements governing the facility, which, if not complied with, could accelerate repayment under the facility. As of June 30, 2024, the Company was in compliance with all financial covenants under the Syndicated Facility. In addition to the asset coverage ratio described above, borrowings under the Syndicated Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that will apply different advance rates to different types of assets in the Company’s portfolio. Each loan or letter of credit originated or assumed under the Syndicated Facility is subject to the satisfaction of certain conditions.

As of June 30, 2024 and September 30, 2023, the Company had $505.0 million and $430.0 million of borrowings outstanding under the Syndicated Facility, which had a fair value of $505.0 million and $430.0 million, respectively. The Company's borrowings under the Syndicated Facility bore interest at a weighted average interest rate of 7.576% and 6.584% for the nine months ended June 30, 2024 and 2023, respectively. For the three and nine months ended June 30, 2024, the Company recorded interest expense (inclusive of fees) of $10.2 million and $29.3 million, respectively, related to the Syndicated Facility. For the three and nine months ended June 30, 2023, the Company recorded interest expense (inclusive of fees) of $14.3 million and $37.4 million, respectively, related to the Syndicated Facility.

Citibank Facility

On March 19, 2021, the Company became party to a revolving credit facility (as amended and/or restated from time to time, the “Citibank Facility”) with OCSL Senior Funding II LLC, the Company’s wholly-owned, special purpose financing subsidiary, as the borrower, the Company, as collateral manager and seller, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian. On May 25, 2023, in connection with an amendment to the OSI2 Citibank Facility, the Citibank Facility was terminated.

As of June 30, 2024 and September 30, 2023, the Company did not have any borrowings outstanding under the Citibank Facility. The Company's borrowings under the Citibank Facility bore interest at a weighted average interest rate of 6.762% for the nine months ended June 30, 2023. For the three and nine months ended June 30, 2023, the Company recorded interest expense (inclusive of fees) of $2.4 million and $8.0 million, respectively, related to the Citibank Facility.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

OSI2 Citibank Facility

On January 23, 2023, as a result of the consummation of the OSI2 Merger, the Company became party to a revolving credit facility (as amended and/or restated from time to time, the “OSI2 Citibank Facility”) with OSI 2 SPV, the Company’s wholly-owned and consolidated subsidiary, as the borrower, the Company, as collateral manager, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Deutsche Bank Trust Company Americas, as collateral agent.

As of June 30, 2024, the Company was able to borrow up to $400 million under the OSI2 Citibank Facility (subject to borrowing base and other limitations). As of June 30, 2024, the OSI2 Citibank Facility had a reinvestment period through May 25, 2027, during which advances may be made, and matures on January 26, 2029. Following the reinvestment period, OSI 2 SPV will be required to make certain mandatory amortization payments. Borrowings under the OSI2 Citibank Facility bear interest payable quarterly at a rate per year equal to SOFR plus 2.35% per annum. After the reinvestment period, the applicable spread is 3.35% per year. There is also a non-usage fee of 0.50% per year on the unused portion of the OSI2 Citibank Facility, payable quarterly; provided that if the unused portion of the OSI2 Citibank Facility is greater than 30% of the commitments under the OSI2 Citibank Facility, the non-usage fee will be based on an unused portion of 30% of the commitments under the OSI2 Citibank Facility. The OSI2 Citibank Facility is secured by a first priority security interest in substantially all of OSI 2 SPV’s assets. As part of the OSI2 Citibank Facility, OSI 2 SPV is subject to certain limitations as to how borrowed funds may be used and the types of loans that are eligible to be acquired by OSI 2 SPV including restrictions on sector concentrations, loan size, tenor and minimum investment ratings (or estimated ratings). The OSI2 Citibank Facility also contains certain requirements relating to interest coverage, collateral quality and portfolio performance, certain violations of which could result in the acceleration of the amounts due under the OSI2 Citibank Facility.

As of June 30, 2024 and September 30, 2023, the Company had $285.0 million and $280.0 million outstanding under the OSI2 Citibank Facility, which had a fair value of $285.0 million and $280.0 million, respectively. The Company’s borrowings under the OSI2 Citibank Facility bore interest at a weighted average interest rate of 8.029% and 7.275% for the nine months ended June 30, 2024 and the period from January 23, 2023 to June 30, 2023, respectively. For the three and nine months ended June 30, 2024, the Company recorded interest expense (inclusive of fees) of $6.1 million and $18.1 million, respectively, related to the OSI2 Citibank Facility. For the three months ended June 30, 2023 and the period from January 23, 2023 to June 30, 2023, the Company recorded interest expense (inclusive of fees) of $4.9 million and $8.0 million, respectively, related to the OSI2 Citibank Facility.

2025 Notes

On February 25, 2020, the Company issued $300.0 million in aggregate principal amount of the 2025 Notes for net proceeds of $293.8 million after deducting OID of $2.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.7 million. The OID on the 2025 Notes is amortized based on the effective interest method over the term of the 2025 Notes.

The 2025 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the fifth supplemental indenture, dated February 25, 2020 (collectively, the "2025 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee"). The 2025 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2025 Notes. The 2025 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2025 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2025 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2025 Notes is paid semi-annually on February 25 and August 25 at a rate of 3.500% per annum. The 2025 Notes mature on February 25, 2025 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the 2025 Notes can require the Company to repurchase the 2025 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2025 Notes Indenture. The 2025 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the three and nine months ended June 30, 2024, the Company did not repurchase any of the 2025 Notes in the open market.

The 2025 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the U.S. Securities and Exchange Commission ("SEC")), as well as covenants requiring the Company to provide financial information to the holders of the 2025 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants are subject to limitations and exceptions that are described in the 2025 Notes Indenture.

2027 Notes

On May 18, 2021, the Company issued $350.0 million in aggregate principal amount of the 2027 Notes for net proceeds of $344.8 million after deducting OID of $1.0 million, underwriting commissions and discounts of $3.5 million and offering costs of $0.7 million. The OID on the 2027 Notes is amortized based on the effective interest method over the term of the 2027 Notes.

The 2027 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the sixth supplemental indenture, dated May 18, 2021 (collectively, the "2027 Notes Indenture"), between the Company and the Trustee. The 2027 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2027 Notes. The 2027 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2027 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2027 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2027 Notes is paid semi-annually on January 15 and July 15 at a rate of 2.700% per annum. The 2027 Notes mature on January 15, 2027 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the 2027 Notes can require the Company to repurchase the 2027 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2027 Notes Indenture. The 2027 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the three and nine months ended June 30, 2024, the Company did not repurchase any of the 2027 Notes in the open market.

The 2027 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the SEC), as well as covenants requiring the Company to provide financial information to the holders of the 2027 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. These covenants are subject to limitations and exceptions that are described in the 2027 Notes Indenture.

In connection with the 2027 Notes, the Company entered into an interest rate swap to more closely align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, the Company receives a fixed interest rate of 2.700% and pays a floating interest rate of the three-month SOFR plus 1.658% plus a SOFR adjustment of 0.26161% on a notional amount of $350.0 million. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship. See Note 12 for more information regarding the interest rate swap.

2029 Notes

On August 15, 2023, the Company issued $300.0 million in aggregate principal amount of the 2029 Notes for net proceeds of $292.9 million after deducting OID of $3.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.6 million. The OID on the 2029 Notes is amortized based on the effective interest method over the term of the 2029 Notes.

The 2029 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the seventh supplemental indenture, dated August 15, 2023 (collectively, the "2029 Notes Indenture"), between the Company and the Trustee. The 2029 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2029 Notes. The 2029 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2029 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2029 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2029 Notes is paid semi-annually on February 15 and August 15 at a rate of 7.100% per annum. The 2029 Notes mature on February 15, 2029 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the 2029 Notes can require

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

the Company to repurchase the 2029 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2029 Notes Indenture. The 2029 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the three and nine months ended June 30, 2024, the Company did not repurchase any of the 2029 Notes in the open market.

The 2029 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the SEC), as well as covenants requiring the Company to provide financial information to the holders of the 2029 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. These covenants are subject to limitations and exceptions that are described in the 2029 Notes Indenture.

In connection with the 2029 Notes, the Company entered into an interest rate swap to more closely align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, the Company receives a fixed interest rate of 7.100% and pays a floating interest rate of the three-month SOFR plus 3.1255% on a notional amount of $300.0 million. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship. See Note 12 for more information regarding the interest rate swap.

The below table presents the components of the carrying value of the 2025 Notes, the 2027 Notes and the 2029 Notes as of June 30, 2024 and September 30, 2023:


	As of June 30, 2024						As of September 30, 2023
($ in millions)	2025 Notes		2027 Notes		2029 Notes		2025 Notes		2027 Notes		2029 Notes
Principal	$	300.0	$	350.0	$	300.0	$	300.0	$	350.0	$	300.0
Unamortized financing costs	(0.5)		(1.9)		(3.0)		(1.1)		(2.5)		(3.5)
Unaccreted discount	(0.3)		(0.5)		(2.9)		(0.7)		(0.6)		(3.4)
Interest rate swap fair value adjustment	—		(30.7)		(3.0)		—		(40.5)		(7.0)
Net carrying value	$	299.2	$	316.9	$	291.1	$	298.2	$	306.4	$	286.1
Fair Value	$	294.9	$	317.7	$	303.6	$	286.4	$	301.8	$	290.0

The below table presents the components of interest and other debt expenses related to the 2025 Notes, the 2027 Notes and the 2029 Notes for the three and nine months ended June 30, 2024:


($ in millions)	2025 Notes						2027 Notes						2029 Notes
	Three months ended June 30, 2024			Nine months ended June 30, 2024			Three months ended June 30, 2024			Nine months ended June 30, 2024			Three months ended June 30, 2024			Nine months ended June 30, 2024
Coupon interest	$	2.6		$	7.9		$	2.4		$	7.1		$	5.3		$	16.0
Amortization of financing costs and discount	0.3			0.9			0.2			0.7			0.3			1.0
Effect of interest rate swap	—			—			4.0			12.3			1.1			3.4
Total interest expense	$	2.9		$	8.8		$	6.6		$	20.1		$	6.7		$	20.4
Coupon interest rate (net of effect of interest rate swaps)	3.500		%	3.500		%	7.213		%	7.262		%	8.440		%	8.469		%

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2023:


($ in millions)	2025 Notes						2027 Notes
	Three months ended June 30, 2023			Nine months ended June 30, 2023			Three months ended June 30, 2023			Nine months ended June 30, 2023
Coupon interest	$	2.6		$	7.9		$	2.4		$	7.1
Amortization of financing costs and discount	0.3			0.9			0.2			0.7
Effect of interest rate swap	—			—			3.7			9.4
Total interest expense	$	2.9		$	8.8		$	6.3		$	17.2
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)	3.500		%	3.500		%	6.912		%	6.274		%

Note 7. Taxable/Distributable Income and Dividend Distributions

Taxable income differs from net increase (decrease) in net assets resulting from operations primarily due to: (1) unrealized appreciation (depreciation) on investments and foreign currency, as gains and losses are not included in taxable income until they are realized; (2) origination and exit fees received in connection with investments in portfolio companies; (3) organizational costs; (4) income or loss recognition on exited investments; and (5) recognition of interest income on certain loans.

As of September 30, 2023, the Company had net capital loss carryforwards of $558.3 million to offset net capital gains that will not expire, to the extent available and permitted by U.S. federal income tax law, of which $70.3 million are available to offset future short-term capital gains and $488.0 million are available to offset future long-term capital gains. A portion of such net capital loss carryforwards represented a realized loss under sections 382 and 383 of the Code, which is carried forward to future years to offset future gains subject to certain limitations.

Listed below is a reconciliation of "net increase (decrease) in net assets resulting from operations" to taxable income for the three and nine months ended June 30, 2024 and 2023.


	Three months ended June 30, 2024		Three months ended June 30, 2023		Nine months ended June 30, 2024		Nine months ended June 30, 2023
Net increase (decrease) in net assets resulting from operations	$	1,120	$	36,685	$	20,992	$	71,379
Net unrealized (appreciation) depreciation	(26,199)		1,039		24,078		42,300
Book/tax difference due to capital losses suspended (utilized)	70,156		12,118		87,016		20,380
Other book/tax differences	(2,349)		(3,825)		(13,298)		(14,912)
Taxable/Distributable Income (1)	$	42,728	$	46,017	$	118,788	$	119,147

__________

(1) The Company's taxable income for the three and nine months ended June 30, 2024 is an estimate and will not be finally determined until the Company files its tax return for the fiscal year ending September 30, 2024. Therefore, the final taxable income may be different than the estimate.

The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.

When assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred tax assets are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income and tax liabilities for the tax jurisdiction in which the tax asset is located. The deferred tax asset recognized by the Company, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of those assets, will be recognized in future years by these taxable entities. Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be realized in future periods. In determining the realizability of this tax benefit, management considered numerous factors that will give rise to pre-tax income in future periods. Among these are the historical and expected future

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

book and tax basis pre-tax income of the Company and unrealized gains in the Company’s assets at the determination date. Based on these and other factors, the Company determined that, as of June 30, 2024, $8.7 million of the $8.7 million deferred tax assets would not more likely than not be realized in future periods.

For the three months ended June 30, 2024, the Company recognized a total expense for income tax related to realized and unrealized gains (losses) of $0.2 million, which was composed primarily of a current income tax expense. For the three months ended June 30, 2023, the Company recognized a total expense for income tax related to realized and unrealized gains (losses) of $0.1 million, which was composed of (i) a current income tax expense of approximately $1.0 million and (ii) a deferred income tax benefit of approximately $0.9 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable subsidiaries.

For the nine months ended June 30, 2024, the Company recognized a total expense for income tax related to realized and unrealized gains (losses) of $0.6 million, which was composed primarily of a current income tax expense. For the nine months ended June 30, 2023, the Company recognized a total benefit for income tax related to realized and unrealized gains (losses) of $0.4 million, which was composed of (i) a current income tax expense of approximately $0.6 million and (ii) a deferred income tax benefit of approximately $1.0 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable subsidiaries.

As of September 30, 2023, the Company's last tax year end, the components of accumulated overdistributed earnings on a tax basis were as follows:


Undistributed ordinary income, net	$	33,525
Net realized capital losses	(509,832)
Unrealized losses, net	(175,031)
Accumulated overdistributed earnings	$	(651,338)

The aggregate cost of investments for U.S. federal income tax purposes was $3,070.0 million as of September 30, 2023. As of September 30, 2023, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over cost for U.S. federal income tax purposes was $529.5 million. As of September 30, 2023, the aggregate gross unrealized depreciation for all investments in which there was an excess of cost for U.S. federal income tax purposes over value was $704.5 million. Net unrealized depreciation based on the aggregate cost of investments for U.S. federal income tax purposes was $175.0 million.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 8. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation

Realized Gains or Losses

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption and the cost basis of the investment without regard to unrealized appreciation or depreciation previously recognized, and include investments written-off during the period, net of recoveries. Realized losses may also be recorded in connection with the Company's determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.

During the three months ended June 30, 2024, the Company recorded an aggregate net realized loss of $69.5 million, which consisted of the following:


($ in millions)
Portfolio Company	Net Realized Gain (Loss)
Thrasio, LLC	$	(68.5)
Other, net	(1.0)
Total, net	$	(69.5)

During the three months ended June 30, 2023, the Company recorded an aggregate net realized loss of $10.6 million, which consisted of the following:


($ in millions)
Portfolio Company	Net Realized Gain (Loss)
Foreign currency forward contracts	$	(6.3)
Aden & Anais Merger Sub Inc.	(5.2)
Radiology Partners Inc.	(3.8)
WP CPP Holdings LLC	(1.3)
Tersera Therapeutics LLC	5.2
Other, net	0.8
Total, net	$	(10.6)

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

During the nine months ended June 30, 2024, the Company recorded an aggregate net realized loss of $84.5 million, which consisted of the following:


($ in millions)
Portfolio Company	Net Realized Gain (Loss)
Thrasio, LLC	$	(68.5)
All Web Leads Inc	(13.4)
Continental Intermodal Group LP	(6.8)
P&L Development LLC	(1.9)
American Tire Distributors Inc.	(1.8)
Zephyr Bidco Limited (1)	(1.7)
Lift Brands Holdings, Inc.	(1.4)
Alvotech	4.8
Ardonagh Midco 3 PLC (1)	4.6
Foreign currency forward contracts	2.6
Other, net	(1.0)
Total, net	$	(84.5)

__________

(1) This investment was denominated in foreign currency and the realized gain (loss) shown in this table includes gains (losses) due to foreign currency translation, which was offset by gains (losses) on foreign currency forward contracts.

During the nine months ended June 30, 2023, the Company recorded an aggregate net realized loss of $19.9 million, which consisted of the following:


($ in millions)
Portfolio Company	Net Realized Gain (Loss)
Foreign currency forward contracts	$	(5.5)
Aden & Anais Merger Sub Inc.	(5.2)
Radiology Partners Inc.	(4.2)
Carvana Co.	(2.8)
ASP Unifrax Holdings Inc.	(2.1)
WP CPP Holdings LLC	(1.3)
Global Medical Response Inc.	(1.0)
Tersera Therapeutics LLC	5.2
Other, net	(3.0)
Total, net	$	(19.9)

Net Unrealized Appreciation or Depreciation

Net unrealized appreciation or depreciation reflects the net change in the valuation of the portfolio pursuant to the Company's valuation guidelines and the reclassification of any prior period unrealized appreciation or depreciation.

During the three months ended June 30, 2024 and 2023, the Company recorded net unrealized appreciation (depreciation) of $26.2 million and $(1.0) million, respectively. For the three months ended June 30, 2024, this consisted of $83.6 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $1.1 million of net unrealized appreciation of foreign currency forward contracts, partially offset by $38.6 million of net unrealized depreciation on debt investments and $19.9 million of net unrealized depreciation on equity investments. For the three months ended June 30, 2023, this consisted of $9.8 million of net unrealized depreciation on debt investments and $0.8 million of net unrealized depreciation on equity investments, partially offset by $5.0 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $4.6 million of net unrealized appreciation of foreign currency forward contracts.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

During the nine months ended June 30, 2024 and 2023, the Company recorded net unrealized depreciation of $24.1 million and $42.3 million, respectively. For the nine months ended June 30, 2024, this consisted of $49.6 million of net unrealized depreciation on debt investments, $30.5 million of net unrealized depreciation on equity investments and $4.5 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $60.5 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses). For the nine months ended June 30, 2023, this consisted of $54.3 million of net unrealized depreciation on debt investments and $4.8 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $11.8 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $5.1 million of net unrealized appreciation on equity investments.

Note 9. Concentration of Credit Risks

The Company deposits its cash with financial institutions and at times such balances are in excess of the FDIC insurance limit. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring their financial stability.

Note 10. Related Party Transactions

As of June 30, 2024 and September 30, 2023, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $15.4 million and $19.5 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree.

Investment Advisory Agreement

The Company is party to the Investment Advisory Agreement. Under the Investment Advisory Agreement, the Company pays Oaktree a fee for its services under the Investment Advisory Agreement consisting of two components: a base management fee and an incentive fee. The cost of both the base management fee payable to Oaktree and any incentive fees earned by Oaktree is ultimately borne by common stockholders of the Company.

The investment advisory agreement with Oaktree was amended and restated on March 19, 2021 in connection with the closing of the OCSI Merger and on January 23, 2023 in connection with the closing of OSI2 Merger. The term “Investment Advisory Agreement” refers collectively to the agreements with Oaktree.

Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect from year-to-year if approved annually by the Board of Directors of the Company or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, including, in either case, approval by a majority of the directors of the Company who are not interested persons. The Investment Advisory Agreement will automatically terminate in the event of its assignment. The Investment Advisory Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other. The Investment Advisory Agreement may also be terminated, without penalty, upon the vote of a majority of the outstanding voting securities of the Company.

Base Management Fee

Under the Investment Advisory Agreement, the base management fee is calculated at an annual rate of 1.50% of total gross assets, including any investment made with borrowings, but excluding cash and cash equivalents. The base management fee is payable quarterly in arrears and the fee for any partial month or quarter is appropriately prorated. Effective May 3, 2019 and through June 30, 2024, the base management fee on the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of (A) 200% and (B) the Company’s net asset value will be 1.00%. For the avoidance of doubt, the 200% will be calculated in accordance with the Investment Company Act and will give effect to exemptive relief the Company received from the SEC with respect to debentures issued by a small business investment company subsidiary. In connection with the OCSI Merger, Oaktree waived an aggregate of $6 million of base management fees otherwise payable to Oaktree in the two years following the closing of the OCSI Merger on March 19, 2021 at a rate of $750,000 per quarter (with such amount appropriately prorated for any partial quarter). In connection with the OSI2 Merger, Oaktree waived an aggregate of $9.0 million of base management fees payable to Oaktree as follows: $6.0 million at a rate of $1.5 million per quarter (with such amount appropriately prorated for any partial quarter) in the first year following closing of the OSI2 Merger on January 23, 2023 and $3.0 million at a rate of $750,000 per quarter (with such amount appropriately prorated for any partial quarter) in the second year following closing of the OSI2 Merger.

On April 26, 2024, Oaktree waived additional base management fees such that the total amount of waived base management fees (including those waived in connection with the OSI2 Merger described above) was $1.5 million for each of

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

the three months ended March 31, 2024 and June 30, 2024. In addition, effective July 1, 2024, the base management fee is calculated (net of base management fees previously waived by Oaktree) at an annual rate of 1.00% of total gross assets, including any investments made with borrowings, but excluding cash and cash equivalents.

For the three and nine months ended June 30, 2024, the base management fee incurred under the Investment Advisory Agreement was $10.3 million (net of waiver) and $30.4 million (net of waiver), respectively. For the three and nine months ended June 30, 2023, the base management fee incurred under the Investment Advisory Agreement was $10.5 million (net of waiver) and $29.4 million (net of waiver), respectively.

Incentive Fee

The incentive fee consists of two parts. Under the Investment Advisory Agreement, the first part of the incentive fee (the “incentive fee on income” or "Part I incentive fee") is calculated and payable quarterly in arrears based upon the “pre-incentive fee net investment income” of the Company for the immediately preceding quarter. The payment of the incentive fee on income is subject to payment of a preferred return to investors each quarter (i.e., a “hurdle rate”), expressed as a rate of return on the value of the Company’s net assets at the end of the most recently completed quarter, of 1.50%, subject to a “catch up” feature.

For this purpose, “pre-incentive fee net investment income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies, other than fees for providing managerial assistance) accrued during the fiscal quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the Administration Agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as OID debt, instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. In addition, pre-incentive fee net investment income does not include any amortization or accretion of any purchase premium or purchase discount to interest income resulting solely from merger-related accounting adjustments in connection with the assets acquired in the OCSI Merger or in the OSI2 Merger, in each case, including any premium or discount paid for the acquisition of such assets, solely to the extent that the inclusion of such merger-related accounting adjustments, in the aggregate, would result in an increase in pre-incentive fee net investment income.

Under the Investment Advisory Agreement, the calculation of the incentive fee on income for each quarter is as follows:

•No incentive fee is payable to Oaktree in any quarter in which the Company’s pre-incentive fee net investment income does not exceed the preferred return rate of 1.50% (the “preferred return”) on net assets;

•100% of the Company’s pre-incentive fee net investment income, if any, that exceeds the preferred return but is less than or equal to 1.8182% in any fiscal quarter is payable to Oaktree. This portion of the incentive fee on income is referred to as the “catch-up” provision, and it is intended to provide Oaktree with an incentive fee of 17.5% on all of the Company’s pre-incentive fee net investment income when the Company’s pre-incentive fee net investment income exceeds 1.8182% on net assets in any fiscal quarter; and

•For any quarter in which the Company’s pre-incentive fee net investment income exceeds 1.8182% on net assets, the incentive fee on income is equal to 17.5% of the amount of the Company’s pre-incentive fee net investment income, as the preferred return and catch-up will have been achieved.

There is no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle. For the three months ended June 30, 2024, Oaktree waived $3.2 million of Part I incentive fees.

For the three and nine months ended June 30, 2024, the first part of the incentive fee (incentive fee on income) incurred under the Investment Advisory Agreement was $5.1 million (net of waiver) and $22.6 million (net of waiver), respectively. For the three and nine months ended June 30, 2023, the first part of the incentive fee (incentive fee on income) incurred under the Investment Advisory Agreement was $9.6 million and $26.3 million, respectively.

Under the Investment Advisory Agreement, the second part of the incentive fee (the "capital gains incentive fee") is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date) commencing with the fiscal year ended September 30, 2019 and equals 17.5% of the Company’s realized capital gains, if any, on a cumulative basis from the beginning of the fiscal year ended September 30, 2019 through the end of each subsequent fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees under the Investment Advisory Agreement. Any realized capital gains, realized capital losses, unrealized capital appreciation and unrealized capital depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the calculations of the second part of the incentive fee. In addition, the calculation of realized capital gains, realized capital losses and unrealized capital depreciation does (1) not include any such amounts resulting solely from merger-related accounting adjustments in connection with the assets acquired in the OCSI Merger or in the OSI2 Merger, in each case, including any premium or discount paid for the acquisition of such assets, solely to the extent that the inclusion of such merger-related accounting adjustments, in the aggregate, would result in an increase in the capital gains incentive fee, (2) include any such amounts associated with the investments acquired in the OCSI Merger for the period from October 1, 2018 to the date of closing of the OCSI Merger, solely to the extent that the exclusion of such amounts, in the aggregate, would result in an increase in the capital gains incentive fee and (3) include any such amounts associated with the investments acquired in the OSI2 Merger for the period from August 6, 2018 to the date of closing of the OSI2 Merger, solely to the extent that the exclusion of such amounts, in the aggregate, would result in an increase in the capital gains incentive fee. As of June 30, 2024, the Company paid $9.6 million of capital gains incentive fees cumulatively under the Investment Advisory Agreement (net of waivers). Part II incentive fees are contractually calculated and paid at the end of the fiscal year in accordance with the Investment Advisory Agreement, which, as described above, differs from Part II incentive fees accrued under GAAP. Hypothetically, if Part II incentive fees were calculated as of June 30, 2024 under the Investment Advisory Agreement, no Part II incentive fees would be payable.

GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a theoretical "liquidation basis." A fee so calculated and accrued would not be payable under applicable law and may never be paid based upon the computation of capital gains incentive fees in subsequent periods. Amounts ultimately paid under the Investment Advisory Agreement will be consistent with the formula reflected in the Investment Advisory Agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation. Any realized capital gains and losses and cumulative unrealized capital appreciation and depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the GAAP accrual. If such amount is positive at the end of a period, then GAAP requires the Company to record a capital gains incentive fee equal to 17.5% of such cumulative amount, less the aggregate amount of actual capital gains incentive fees payable or capital gains incentive fees accrued under GAAP in all prior periods. The resulting accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. There can be no assurance that such unrealized capital appreciation will be realized in the future or any accrued capital gains incentive fee will become payable under the Investment Advisory Agreement. For the three and nine months ended June 30, 2024 and 2023, there were no accrued capital gains incentive fees. As of June 30, 2024, the total accrued capital gains incentive fee liability was zero.

Indemnification

The Investment Advisory Agreement provides that, absent willful misfeasance, bad faith or gross negligence in the performance of their respective duties or by reason of the reckless disregard of their respective duties and obligations, Oaktree and its officers, managers, partners, members (and their members, including the owners of their members), agents, employees, controlling persons and any other person or entity affiliated with it, are entitled to indemnification from the Company for any damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) arising from the rendering of Oaktree's services under the Investment Advisory Agreement or otherwise as investment adviser.

Administrative Services

The Company is party to the Administration Agreement with Oaktree Administrator. Pursuant to the Administration Agreement, Oaktree Administrator provides administrative services to the Company necessary for the operations of the Company, which include providing office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services as Oaktree Administrator, subject to review by the Company’s Board of Directors, shall from time to time deem to be necessary or useful to perform its obligations under the Administration Agreement. Oaktree Administrator may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. Oaktree Administrator makes reports to the Company’s Board of Directors of its performance of obligations under the Administration Agreement and furnishes advice and recommendations with respect to such other aspects of the Company’s business and affairs, in each case, as it shall determine to be desirable or as

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

reasonably required by the Company’s Board of Directors; provided that Oaktree Administrator shall not provide any investment advice or recommendation.

Oaktree Administrator also provides portfolio collection functions for interest income, fees and warrants and is responsible for the financial and other records that the Company is required to maintain and prepares, prints and disseminates reports to the Company’s stockholders and all other materials filed with the SEC. In addition, Oaktree Administrator assists the Company in determining and publishing the Company’s net asset value, overseeing the preparation and filing of the Company’s tax returns, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Oaktree Administrator may also offer to provide, on the Company’s behalf, managerial assistance to the Company’s portfolio companies.

For providing these services, facilities and personnel, the Company reimburses Oaktree Administrator the allocable portion of overhead and other expenses incurred by Oaktree Administrator in performing its obligations under the Administration Agreement, including the Company’s allocable portion of the rent of the Company’s principal executive offices (which are located in a building owned by a Brookfield affiliate) at market rates and the Company’s allocable portion of the costs of compensation and related expenses of its Chief Financial Officer, Chief Compliance Officer, their staffs and other non-investment professionals at Oaktree that perform duties for the Company. Such reimbursement is at cost, with no profit to, or markup by, Oaktree Administrator. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other. The Administration Agreement may also be terminated, without penalty, upon the vote of a majority of the Company’s outstanding voting securities.

For the three months ended June 30, 2024 and 2023, the Company accrued administrative expenses of $0.5 million and $0.4 million, respectively, including $0.1 million and $0.1 million of general and administrative expenses, respectively. For the nine months ended June 30, 2024 and 2023, the Company accrued administrative expenses of $1.3 million and $1.2 million, respectively, including $0.3 million and $0.2 million of general and administrative expenses, respectively.

As of June 30, 2024 and September 30, 2023, $4.8 million and $4.3 million, respectively, was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to Oaktree Administrator.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 11. Financial Highlights


(Share amounts in thousands)	Three months ended June 30, 2024	Three months ended June 30, 2023	Nine months ended June 30, 2024	Nine months ended June 30, 2023 (6)
Net asset value per share at beginning of period	$18.72	$19.66	$19.63	$20.38
Net investment income (1)	0.54	0.63	1.63	1.89
Net unrealized appreciation (depreciation) (1)	0.33	(0.02)	(0.28)	(0.36)
Net realized gains (losses) (1)	(0.85)	(0.14)	(1.06)	(0.28)
(Provision) benefit for taxes on realized and unrealized gains (losses) (1)	—	—	(0.01)	0.01
Distributions of net investment income to stockholders	(0.55)	(0.55)	(1.72)	(2.06)
Net asset value per share at end of period	$18.19	$19.58	$18.19	$19.58
Per share market value at beginning of period	$19.66	$18.77	$20.12	$18.00
Per share market value at end of period	$18.81	$19.43	$18.81	$19.43
Total return (2)	(1.51)%	6.42%	2.13%	19.58%
Common shares outstanding at beginning of period	81,396	77,080	77,225	61,125
Common shares outstanding at end of period	82,245	77,080	82,245	77,080
Net assets at beginning of period	$1,524,099	$1,515,150	$1,515,764	$1,245,563
Net assets at end of period	$1,496,133	$1,509,441	$1,496,133	$1,509,441
Average net assets (3)	$1,524,503	$1,526,644	$1,524,180	$1,407,814
Ratio of net investment income to average net assets (7)	11.76%	12.72%	11.40%	12.65%
Ratio of total expenses to average net assets (7)	14.54%	14.45%	14.42%	14.07%
Ratio of net expenses to average net assets (7)	13.29%	14.05%	13.75%	13.69%
Ratio of portfolio turnover to average investments at fair value	5.95%	7.48%	23.97%	18.43%
Weighted average outstanding debt (4)	$1,711,978	$1,756,758	$1,680,876	$1,640,062
Average debt per share (1)	$20.92	$22.79	$21.06	$23.29
Asset coverage ratio at end of period (5)	183.36%	182.05%	183.36%	182.05%

__________


(1)			Calculated based upon weighted average shares outstanding for the period.
(2)			Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming dividend reinvestment prices obtained under the Company's DRIP. Total return does not include sales load.
(3)			Calculated based upon the weighted average net assets for the period.
(4)			Calculated based upon the weighted average of principal debt outstanding for the period.
(5)			Based on outstanding senior securities of $1,743.4 million and $1,785.0 million as of June 30, 2024 and 2023, respectively.
(6)			The share and per share information disclosed in this table has been retroactively adjusted as necessary to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.
(7)			Interim periods are annualized.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 12. Derivative Instruments

The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company entered into an International Swaps and Derivatives Association, Inc. Master Agreement (the "ISDA Master Agreement") with its derivative counterparty, JPMorgan Chase Bank, N.A. The ISDA Master Agreement permits a single net payment in the event of a default or similar event. As of June 30, 2024, no cash collateral has been pledged to cover obligations and no cash collateral has been received from the counterparty with respect to the Company's forward currency contracts.

Certain information related to the Company’s foreign currency forward contracts is presented below as of June 30, 2024.


Description	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Foreign currency forward contract	$	54,193	€	49,683	8/8/2024	$	849	$	—	Derivative asset
Foreign currency forward contract	$	55,206	£	43,988	8/8/2024	—		413		Derivative liability
						$	849	$	413

Certain information related to the Company’s foreign currency forward contracts is presented below as of September 30, 2023.


Description	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Foreign currency forward contract	$	42,182	€	38,026	11/9/2023	$	1,857	$	—	Derivative asset
Foreign currency forward contract	$	72,098	£	56,556	11/9/2023	3,053		—		Derivative asset
						$	4,910	$	—

In connection with the issuance of the 2027 Notes and 2029 Notes, the Company entered into interest rate swap agreements with the Royal Bank of Canada pursuant to ISDA Master Agreements. As of June 30, 2024, the Company paid $30.3 million to the Royal Bank of Canada to cover collateral obligations under the terms of the interest swap agreements, which is included in due from broker on the Consolidated Statement of Assets and Liabilities.

Certain information related to the Company’s interest rate swaps is presented below as of June 30, 2024.


Description	Notional Amount		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Interest rate swap	$	350,000	1/15/2027	$	—	$	30,683	Derivative liability
Interest rate swap	300,000		2/15/2029	—		2,989		Derivative liability
				$	—	$	33,672

Certain information related to the Company’s interest rate swap is presented below as of September 30, 2023.


Description	Notional Amount		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Interest rate swap	$	350,000	1/15/2027	$	—	$	40,519	Derivative liability
Interest rate swap	300,000		2/15/2029	—		7,000		Derivative liability
				$	—	$	47,519

Note 13. Commitments and Contingencies

Off-Balance Sheet Arrangements

The Company may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its portfolio companies. As of June 30, 2024, the Company's only off-balance sheet arrangements consisted of $291.4 million of unfunded commitments, which was comprised of $264.3 million to provide debt and equity

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

financing to certain of its portfolio companies and $27.1 million to provide financing to the JVs. Of the $264.3 million, approximately $219.4 million can be drawn immediately with the remaining amount subject to certain milestones that must be met by portfolio companies or other restrictions. As of September 30, 2023, the Company's only off-balance sheet arrangements consisted of $232.7 million of unfunded commitments, which was comprised of $205.6 million to provide debt and equity financing to certain of its portfolio companies and $27.1 million to provide financing to the JVs. Of the $205.6 million, approximately $154.2 million can be drawn immediately with the remaining amount subject to certain milestones that must be met by portfolio companies or other restrictions. Such commitments are subject to the portfolio companies' satisfaction of certain financial and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Consolidated Statements of Assets and Liabilities.

A list of unfunded commitments by investment (consisting of revolvers, term loans with delayed draw components and subordinated notes and LLC equity interests in the JVs) as of June 30, 2024 and September 30, 2023 is shown in the table below:


	June 30, 2024		September 30, 2023
107-109 Beech OAK22 LLC	$	26,969	$	26,969
Verona Pharma, Inc.	14,846		—
OCSI Glick JV LLC	13,998		13,998
PPW Aero Buyer, Inc.	13,804		1,466
PetVet Care Centers, LLC	13,732		—
Senior Loan Fund JV I, LLC	13,125		13,125
BioXcel Therapeutics, Inc.	9,383		14,547
Amspec Parent LLC	9,372		—
Kings Buyer, LLC	8,804		5,189
Seres Therapeutics, Inc.	8,090		8,090
Monotype Imaging Holdings Inc.	8,005		—
Next Holdco, LLC	7,051		—
iCIMs, Inc.	6,591		7,466
Eyesouth Eye Care Holdco LLC	6,585		—
MRI Software LLC	6,420		2,261
Quantum Bidco Limited	6,311		—
Telephone and Data Systems, Inc.	6,273		—
Digital.AI Software Holdings, Inc.	6,045		1,078
Truck-Lite Co., LLC	5,654		—
Sorenson Communications, LLC	5,409		—
Grove Hotel Parcel Owner, LLC	5,286		5,286
Mindbody, Inc.	5,238		4,762
scPharmaceuticals Inc.	5,212		5,212
SumUp Holdings Luxembourg	5,101		—
Avalara, Inc.	5,047		5,047
107 Fair Street LLC	4,227		4,227
Harrow, Inc.	4,011		4,011
Accupac, Inc.	3,920		4,500
Inventus Power, Inc.	3,792		3,792
Delta Leasing SPV II LLC	3,581		14,639
Establishment Labs Holdings Inc.	3,384		3,384
WP CPP Holdings, LLC	3,272		—
Enverus Holdings, Inc.	3,135		—
PRGX Global, Inc.	3,127		3,127
Salus Workers' Compensation, LLC	3,102		3,102
Spanx, LLC	3,092		2,473
Minotaur Acquisition, Inc.	3,058		—
Relativity ODA LLC	2,762		2,762
Crewline Buyer, Inc.	2,180		—
Protein For Pets Opco, LLC	2,117		—
Coupa Holdings, LLC	2,075		2,075
Oranje Holdco, Inc.	1,904		1,904
MHE Intermediate Holdings, LLC	1,786		821
Evergreen IX Borrower 2023, LLC	1,626		1,626

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


	June 30, 2024		September 30, 2023
Acquia Inc.	$	1,625	$	1,376
Supreme Fitness Group NY Holdings, LLC	1,552		2,199
Galileo Parent, Inc.	1,480		2,061
Centralsquare Technologies, LLC	1,436		—
112-126 Van Houten Real22 LLC	1,378		2,343
Berner Food & Beverage, LLC	1,314		1,622
Finastra USA, Inc.	1,089		960
Icefall Parent, Inc.	995		—
SIO2 Medical Products, Inc.	554		1,821
LSL Holdco, LLC	530		2,650
Telestream Holdings Corporation	379		407
All Web Leads, Inc.	240		—
ASP-R-PAC Acquisition Co LLC	234		396
ADB Companies, LLC	98		—
Fairbridge Strategic Capital Funding LLC	—		13,090
MND Holdings III Corp	—		9,122
Assembled Brands Capital LLC	—		7,514
Dominion Diagnostics, LLC	—		3,484
OTG Management, LLC	—		3,190
ADC Therapeutics SA	—		3,020
Impel Pharmaceuticals Inc.	—		2,458
SCP Eye Care Services, LLC	—		2,356
Tahoe Bidco B.V.	—		2,162
Pluralsight, LLC	—		1,787
Liquid Environmental Solutions Corporation	—		1,383
Coyote Buyer, LLC	—		400
Total	$	291,406	$	232,740

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 14. Subsequent Events

The Company’s management evaluated subsequent events through the date of issuance of the Consolidated Financial Statements. There have been no subsequent events that occurred during such period that would require disclosure in, or would be required to be recognized in the Consolidated Financial Statements as of and for the three months ended June 30, 2024, except as discussed below.

Distribution Declaration

On July 26, 2024, the Company’s Board of Directors declared a quarterly distribution of $0.55 per share, payable in cash on September 30, 2024 to stockholders of record on September 16, 2024.

Oaktree Specialty Lending Corporation Schedule 12-14

Schedule of Investments in and Advances to Affiliates

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Nine months ended June 30, 2024

(unaudited)


Portfolio Company (1)	Industry	Investment Type	Index	Spread		Cash		PIK Rate		Maturity Date	Shares		Principal		Net Realized Gain (Loss)		Amount of Interest, Fees or Dividends Credited in Income (2)		Fair Value at October 1, 2023		Gross Additions (3)		Gross Reductions (4)		Fair Value at June 30, 2024		% of Total Net Assets
Control Investments
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Common Stock									829				$	—	$	—	$	—	$	—	$	—	$	—	—	%
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Preferred Equity									34,984,460				—		—		27,638		—		—		27,638		1.8	%
Continental Intermodal Group LP	Oil & Gas Storage & Transportation	Preferred Equity									3,137,476				—		—		—		3,263		—		3,263		0.2	%
Continental Intermodal Group LP	Oil & Gas Storage & Transportation	Common Stock									22,267,661				—		—		—		16,172		(1,698)		14,474		1.0	%
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00	%	10.48	%			8/28/2025			$	13,963	—		1,159		14,068		—		(987)		13,081		0.9	%
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00	%	10.48	%			8/28/2025			—		—		69		2,090		—		(2,090)		—		—	%
Dominion Diagnostics, LLC	Health Care Services	First Lien Revolver	SOFR+	5.00	%	10.48	%			8/28/2025			5,574		—		445		5,574		—		(352)		5,222		0.3	%
Dominion Diagnostics, LLC	Health Care Services	Common Stock									30,031				—		—		2,711		—		(2,711)		—		—	%
First Star Speir Aviation Limited	Airlines	Equity Interest									100.00	%			786		—		—		—		—		—		—	%
OCSI Glick JV LLC (5)	Multi-Sector Holdings	Subordinated Debt	SOFR+	4.50	%	9.94	%			10/20/2028			58,349		—		5,395		50,017		978		(1,109)		49,886		3.3	%
OCSI Glick JV LLC (5)	Multi-Sector Holdings	Membership Interest									87.50	%			—		—		—		—		—		—		—	%
Senior Loan Fund JV I, LLC (6)	Multi-Sector Holdings	Subordinated Debt	SOFR+	7.00	%	12.44	%			12/29/2028			112,656		—		10,672		112,656		—		—		112,656		7.5	%
Senior Loan Fund JV I, LLC (6)	Multi-Sector Holdings	Membership Interest									87.50	%			—		4,200		28,878		—		(3,061)		25,817		1.7	%
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan						12.00	%	8/3/2028			2,682		—		71		—		2,682		—		2,682		0.2	%
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan						12.00	%	8/3/2028			17,363		—		1,650		15,874		1,643		(154)		17,363		1.2	%
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	First Lien Term Loan						12.00	%	8/3/2028			3,442		—		275		1,359		2,083		—		3,442		0.2	%
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	Common Stock									1,184,630				—		—		36,226		—		(12,678)		23,548		1.6	%
SIO2 Medical Products, Inc.	Metal, Glass & Plastic Containers	Warrants									66,686				—		—		—		—		—		—		—	%
Total Control Investments													$	214,029	$	786	$	23,936	$	297,091	$	26,821	$	(24,840)	$	299,072	20.0	%

Affiliate Investments
All Web Leads, Inc.	Advertising	First Lien Term Loan	SOFR+	4.00	%	7.34	%	2.00	%	9/29/2026			1,809		—		52		—		1,731		—		1,731		0.1	%
All Web Leads, Inc.	Advertising	First Lien Term Loan	SOFR+	5.00	%	8.34	%	2.00	%	3/29/2027			3,602		—		116		—		3,429		—		3,429		0.2	%
All Web Leads, Inc.	Advertising	First Lien Term Loan						10.00	%	3/29/2028			3,451		—		—		—		3,102		—		3,102		0.2	%
All Web Leads, Inc.	Advertising	First Lien Revolver	SOFR+	4.00	%	9.34	%			3/30/2026			1,560		—		45		—		1,506		—		1,506		0.1	%
All Web Leads, Inc.	Advertising	Common Stock									11,499		—		—		—		—		1,622		—		1,622		0.1	%
Assembled Brands Capital LLC	Specialized Finance	First Lien Revolver													—		329		21,823		33		(21,856)		—		—	%
Assembled Brands Capital LLC	Specialized Finance	Common Stock									12,463,242				—		—		89		1,159		(2)		1,246		0.1	%
Assembled Brands Capital LLC	Specialized Finance	Preferred Equity													—		—		1,005		153		(1,158)		—		—	%
Assembled Brands Capital LLC	Specialized Finance	Warrants									78,045				—		—		—		—		—		—		—	%
The Avery	Real Estate Operating Companies	First Lien Term Loan						10.00	%	2/16/2028			5,065		—		—		—		4,657		(545)		4,112		0.3	%
The Avery	Real Estate Operating Companies	First Lien Term Loan						10.00	%	2/16/2028			20,917		—		—		—		19,262		(841)		18,421		1.2	%
The Avery	Real Estate Operating Companies	Membership Interest									6.40	%	—		—		—		—		—		—		—		—	%
Caregiver Services, Inc.	Health Care Services	Preferred Equity									1,080,398				—		—		432		—		(205)		227		—	%
Total Affiliate Investments													$	36,404	$	—	$	542	$	23,349	$	36,654	$	(24,607)	$	35,396	2.4	%
Total Control & Affiliate Investments													$	250,433	$	786	$	24,478	$	320,440	$	63,475	$	(49,447)	$	334,468	22.4	%

This schedule should be read in connection with the Company's Consolidated Financial Statements, including the Consolidated Schedules of Investments and Notes to the Consolidated Financial Statements.

______________________

(1)The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments.

(2)Represents the total amount of interest (net of non-accrual amounts), fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest (net of non-accrual amounts) and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.

(5)Together with GF Equity Funding, the Company co-invests through Glick JV. Glick JV is capitalized as transactions are completed and all portfolio and investment decisions in respect to Glick JV must be approved by the Glick JV investment committee consisting of representatives of the Company and GF Equity Funding (with approval from a representative of each required).

(6)Together with Kemper, the Company co-invests through SLF JV I. SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).

Schedule 12-14

Oaktree Specialty Lending Corporation

Schedule of Investments in and Advances to Affiliates

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Nine months ended June 30, 2023

(unaudited)


Portfolio Company (1)	Industry	Investment Type	Index	Spread		Cash		PIK Rate	Maturity Date	Shares		Principal		Net Realized Gain (Loss)		Amount of Interest, Fees or Dividends Credited in Income (2)		Fair Value at October 1, 2022		Gross Additions (3)		Gross Reductions (4)		Fair Value at June 30, 2023		% of Total Net Assets
Control Investments
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Common Stock								829		$	—	$	—	$	—	$	—	$	—	$	—	$	—	—	%
C5 Technology Holdings, LLC	Data Processing & Outsourced Services	Preferred Equity								34,984,460		—		—		—		27,638		—		—		27,638		1.8	%
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00	%	10.39	%		8/28/2025			14,102		—		1,070		14,333		—		(231)		14,102		0.9	%
Dominion Diagnostics, LLC	Health Care Services	First Lien Term Loan	SOFR+	5.00	%				8/28/2025			—		—		—		—		—		—		—		—	%
Dominion Diagnostics, LLC	Health Care Services	First Lien Revolver	SOFR+	5.00	%	10.24	%		8/28/2025			3,484		—		136		—		3,484		—		3,484		0.2	%
Dominion Diagnostics, LLC	Health Care Services	Common Stock								30,031		—		—		—		4,946		—		(2,235)		2,711		0.2	%
OCSI Glick JV LLC (5)	Multi-Sector Holdings	Subordinated Debt	L+	4.50	%	9.36	%		10/20/2028			58,349		—		4,961		50,283		1,116		(1,767)		49,632		3.3	%
OCSI Glick JV LLC (5)	Multi-Sector Holdings	Membership Interest								87.50	%	—		—		—		—		—		—		—		—	%
Senior Loan Fund JV I, LLC (6)	Multi-Sector Holdings	Subordinated Debt	L+	7.00	%	11.86	%		12/29/2028			112,656		—		9,197		96,250		16,406		—		112,656		7.5	%
Senior Loan Fund JV I, LLC (6)	Multi-Sector Holdings	Membership Interest								87.50	%	—		—		3,150		20,715		7,258		—		27,973		1.9	%
Total Control Investments												$	188,591	$	—	$	18,514	$	214,165	$	28,264	$	(4,233)	$	238,196	15.8	%

Affiliate Investments
Assembled Brands Capital LLC	Specialized Finance	First Lien Revolver	L+	6.75	%	12.29	%		10/17/2023			22,304		—		1,985		24,225		2,378		(4,417)		22,186		1.5	%
Assembled Brands Capital LLC	Specialized Finance	Common Stock								1,783,332		—		—		—		370		40		(410)		—		—	%
Assembled Brands Capital LLC	Specialized Finance	Preferred Equity								1,129,453		—		—		—		1,223		189		—		1,412		0.1	%
Assembled Brands Capital LLC	Specialized Finance	Warrants								78,045		—		—		—		—		—		—		—		—	%
Caregiver Services, Inc.	Health Care Services	Preferred Equity								1,080,399		—		—		—		378		—		(65)		313		—	%
Total Affiliate Investments												$	22,304	$	—	$	1,985	$	26,196	$	2,607	$	(4,892)	$	23,911	1.6	%
Total Control & Affiliate Investments												$	210,895	$	—	$	20,499	$	240,361	$	30,871	$	(9,125)	$	262,107	17.4	%

______________________

(1)The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments, included in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2023.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in connection with our Consolidated Financial Statements and the notes thereto included elsewhere in this quarterly report on Form 10-Q.

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q may include statements as to:

•our future operating results and distribution projections;

•the ability of Oaktree Fund Advisors, LLC, or Oaktree, to implement Oaktree's future plans with respect to our business and to achieve our investment objective;

•the ability of Oaktree and its affiliates to attract and retain highly talented professionals;

•our business prospects and the prospects of our portfolio companies;

•the impact of the investments that we expect to make;

•the ability of our portfolio companies to achieve their objectives;

•our expected financings and investments and additional leverage we may seek to incur in the future;

•the adequacy of our cash resources and working capital;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•the cost or potential outcome of any litigation to which we may be a party, and

•the impact of current global economic conditions, including those caused by inflation, a rising interest rate environment and geopolitical events or all of the foregoing.

In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended September 30, 2023 and elsewhere in this quarterly report on Form 10-Q.

Other factors that could cause actual results to differ materially include:

•changes or potential disruptions in our operations, the economy, financial markets or political environment, including those caused by inflation and an elevated interest rate environment;

•risks associated with a possible disruption in our operations, the operations of our portfolio companies or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents;

•future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to Business Development Companies or regulated investment companies, or RICs; and

•other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission, or the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

All dollar amounts in tables are in thousands, except share and per share amounts and as otherwise indicated.

Business Overview

We are a specialty finance company dedicated to providing customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. We are a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act of 1940, as amended, or the Investment Company Act. In addition, we have qualified and elected to be treated as a RIC under the Internal Revenue Code of 1986, as amended, or the Code, for U.S. federal income tax purposes.

We are externally managed by Oaktree pursuant to an investment advisory agreement, as amended from time to time, or the Investment Advisory Agreement. Oaktree Fund Administration, LLC, or Oaktree Administrator, an affiliate of Oaktree,

provides certain administrative and other services necessary for us to operate pursuant to an administration agreement, as amended from time to time, or the Administration Agreement.

Our investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity and certain equity co-investments. We may also seek to generate capital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions. Our portfolio may also include certain structured finance and other non-traditional structures. We invest in companies that typically possess resilient business models with strong underlying fundamentals. We intend to deploy capital across credit and economic cycles with a focus on long-term results, which we believe will enable us to build lasting partnerships with financial sponsors and management teams, and we may seek to opportunistically take advantage of dislocations in the financial markets and other situations that may benefit from Oaktree’s credit and structuring expertise. Sponsors may include financial sponsors, such as an institutional investor or a private equity firm, or a strategic entity seeking to invest in a portfolio company. We generally invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “high yield” and “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal.

In the current market environment, Oaktree intends to focus on the following areas, in which Oaktree believes there is less competition and thus potential for greater returns, for our new investment opportunities: (1) situational lending, which we define to include directly originated loans to non-sponsor companies that are hard to understand and value using traditional underwriting techniques, (2) select sponsor lending, which we define to include financing to support leveraged buyouts of companies with specialized sponsors that have expertise in certain industries, (3) stressed sector and rescue lending, which we define to include opportunistic private loans in industries experiencing stress or limited access to capital and (4) public credit, where we seek discounted, high quality public debt investments particularly in times of market dislocation.

On January 23, 2023, we acquired Oaktree Strategic Income II, Inc. (“OSI2”) pursuant to that certain Agreement and Plan of Merger (the “OSI2 Merger Agreement”), dated as of September 14, 2022, by and among OSI2, us, Project Superior Merger Sub, Inc., our wholly-owned subsidiary, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OSI2 Merger Agreement, OSI2 was merged with and into us in a two-step transaction with us as the surviving company (the “OSI2 Merger”).

Business Environment and Developments

Global financial markets have experienced an increase in volatility as concerns about the impact of higher inflation, elevated interest rates, a potential slowdown in economic activity and the current conflicts in the Middle East have weighed on market participants. These factors have created disruptions in supply chains and economic activity and have had a particularly adverse impact on certain companies in the energy, raw materials and transportation sectors, among others. These uncertainties can ultimately impact the overall supply and demand of the market through changing spreads, deal terms and structures and equity purchase price multiples.

We are unable to predict the full effects of these macroeconomic events or how they might evolve. We continue to closely monitor the impact these events have on our business, industry and portfolio companies and will provide constructive solutions where necessary.

Against this backdrop, we believe attractive risk-adjusted returns can be achieved by making loans to middle market companies that typically possess resilient business models with strong underlying fundamentals. Given the breadth of the investment platform and decades of credit investing experience of Oaktree and its affiliates, we believe that we have the resources and experience to source, diligence and structure investments in these companies.

Critical Accounting Estimates

Fair Value Measurements

Oaktree, as the valuation designee of our Board of Directors pursuant to Rule 2a-5 under the Investment Company Act, determines the fair value of our assets on at least a quarterly basis in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or ASC 820. ASC 820 defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices over entity-specific inputs. Where observable prices or inputs are not available or reliable, valuation techniques are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments’ complexity.

Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

•Level 1 — Unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.

•Level 3 — Unobservable inputs that reflect Oaktree’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

If inputs used to measure fair value fall into different levels of the fair value hierarchy, an investment's level is based on the lowest level of input that is significant to the fair value measurement. Oaktree's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. This includes investment securities that are valued using "bid" and "ask" prices obtained from independent third party pricing services or directly from brokers. These investments may be classified as Level 3 because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities or may require adjustments for investment-specific factors or restrictions.

Financial instruments with readily available quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. As such, Oaktree obtains and analyzes readily available market quotations provided by pricing vendors and brokers for all of our investments for which quotations are available. In determining the fair value of a particular investment, pricing vendors and brokers use observable market information, including both binding and non-binding indicative quotations.

quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In addition to ongoing monitoring and back-testing, Oaktree performs due diligence procedures over pricing vendors to understand their methodology and controls to support their use in the valuation process. Generally, Oaktree does not adjust any of the prices received from these sources.

If the quotations obtained from pricing vendors or brokers are determined to not be reliable or are not readily available, Oaktree values such investments using any of three different valuation techniques. The first valuation technique is the transaction precedent technique, which utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable. The second valuation technique is an analysis of the enterprise value, or EV, of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that we are deemed to control under the Investment Company Act. To estimate the EV of a portfolio company, Oaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company and competitive dynamics in the company’s industry. Oaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company: (i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase prices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company’s assets and (vii) offers from third parties to buy the portfolio company. Oaktree may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. Under the EV technique, the significant unobservable input used in the fair value measurement of our investments in debt or equity securities is the EBITDA, revenue or asset multiple, as applicable. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and we consider the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, Oaktree depends on primary market data, including newly funded transactions and industry-specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable. Under the market yield technique, the significant unobservable input used in the fair value measurement of our investments in debt securities is the market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.

Oaktree estimates the fair value of certain privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk-free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.

The fair value of our investments as of June 30, 2024 and September 30, 2023 was determined by Oaktree, as our valuation designee. We have and will continue to engage independent valuation firms to provide assistance each quarter regarding the determination of the fair value of a portion of our portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. As of June 30, 2024, 94.2% of our portfolio at fair value was valued either based on market quotations, the transactions precedent approach or corroborated by independent valuation firms.

Certain factors that may be considered in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company’s earnings and its ability to make payments on its indebtedness, the markets in which the portfolio company does business, comparison to comparable publicly-traded companies, discounted cash flow and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, Oaktree's determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to these uncertainties, Oaktree's fair value determinations may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize upon the sale of one or more of our investments.

As of June 30, 2024, we held $3,121.7 million of investments at fair value, up from $2,892.4 million held at September 30, 2023, primarily driven by purchases of investments during the nine months ended June 30, 2024. As of June 30, 2024 and September 30, 2023, approximately 94.0% and 89.9%, respectively, of our total assets represented investments at fair value.

Revenue Recognition

We generate revenues in the form of interest income on debt investments and, to a lesser extent, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. We may also generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial assistance and consulting fees. Some of our investments provide for deferred interest payments or payment-in-kind, or PIK, interest income. The principal amount of the debt investments and any accrued but unpaid interest generally becomes due at the maturity date.

Interest Income

Interest income, adjusted for accretion of original issue discount, or OID, is recorded on an accrual basis to the extent that such amounts are expected to be collected. We stop accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash, and the portfolio company, in management’s judgment, is likely to continue timely payment of its remaining obligations. As of June 30, 2024, there were eight investments on non-accrual status that in the aggregate represented 5.7% and 3.7% of total debt investments at cost and fair value, respectively. As of September 30, 2023, there were four investments on non-accrual status that in aggregate represented 2.4% and 1.8% of total debt investments at cost and fair value, respectively.

In connection with our investment in a portfolio company, we sometimes receive nominal cost equity that is valued as part of the negotiation process with the portfolio company. When we receive nominal cost equity, we allocate our cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.

PIK Interest Income

Our investments in debt securities may contain PIK interest provisions. PIK interest, which typically represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We generally cease accruing PIK interest if there is insufficient value to support the accrual or if we do not expect the portfolio company to be able to pay all principal and interest due. Our decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; our assessment of the portfolio company's business development success; information obtained by us in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. Our determination to cease accruing PIK interest is generally made well before our full write-down of a loan or debt security. In addition, if it is subsequently determined that we will not be able to collect any previously accrued PIK interest, the fair value of the loans or debt securities would be reduced by the amount of such previously accrued, but uncollectible, PIK interest. The accrual of PIK interest on our debt investments increases the recorded cost bases of these investments in our Consolidated Financial Statements including for purposes of computing the capital gains incentive fee payable by us to Oaktree. To maintain our status as a RIC, certain income from PIK interest may be required to be distributed to our stockholders, even though we have not yet collected the cash and may never do so.

Portfolio Composition

Our investments principally consist of loans, common and preferred equity and warrants in privately-held companies, Senior Loan Fund JV I, LLC, or SLF JV I, a joint venture through which we and Trinity Universal Insurance Company, a

subsidiary of Kemper Corporation, or Kemper, co-invest in senior secured loans of middle-market companies and other corporate debt securities, and OCSI Glick JV LLC, or the Glick JV, a joint venture through which we and GF Equity Funding 2014 LLC, or GF Equity Funding, co- invest primarily in senior secured loans of middle-market companies. We refer to SLF JV I and the Glick JV collectively as the JVs. Our loans are typically secured by a first, second or subordinated lien on the assets of the portfolio company and generally have terms of up to ten years (but an expected average life of between three and four years).

During the nine months ended June 30, 2024, we originated $1,104.6 million of investment commitments in 45 new and 34 existing portfolio companies and funded $1,038.2 million of investments.

During the nine months ended June 30, 2024, we received $721.7 million of proceeds from prepayments, exits, other paydowns and sales and exited 28 portfolio companies.

A summary of the composition of our investment portfolio at cost and fair value as a percentage of total investments is shown in the following tables:


	June 30, 2024		September 30, 2023
Cost:
Senior secured debt	84.42	%	85.24	%
Debt investments in the JVs	4.98		5.35
Subordinated debt	3.52		1.97
Common equity and warrants	3.35		2.37
Preferred equity	2.07		3.27
LLC equity interests of the JVs	1.66		1.80
Total	100.00	%	100.00	%


	June 30, 2024		September 30, 2023
Fair value:
Senior secured debt	85.98	%	86.47	%
Debt investments in the JVs	5.21		5.62
Subordinated debt	3.75		1.93
Common equity and warrants	2.18		2.00
Preferred equity	2.05		2.98
LLC equity interests of the JVs	0.83		1.00
Total	100.00	%	100.00	%

The industry composition of our portfolio at cost and fair value as a percentage of total investments was as follows:


	June 30, 2024		September 30, 2023
Cost:
Application Software	16.95	%	15.39	%
Multi-Sector Holdings (1)	7.13		7.21
Health Care Services	4.00		2.68
Health Care Technology	3.86		3.51
Biotechnology	3.84		4.15
Data Processing & Outsourced Services	2.94		4.38
Interactive Media & Services	2.91		0.62
Industrial Machinery & Supplies & Components	2.83		3.27
Pharmaceuticals	2.63		2.79
Real Estate Operating Companies	2.45		2.75
Diversified Financial Services	2.12		2.03
Aerospace & Defense	2.04		1.70
Diversified Support Services	2.04		0.77
Environmental & Facilities Services	1.96		2.07
Fertilizers & Agricultural Chemicals	1.96		2.13
Personal Care Products	1.95		2.24
Health Care Distributors	1.95		2.04
Airport Services	1.90		1.84
Metal, Glass & Plastic Containers	1.88		1.82
Specialized Finance	1.78		2.40
Internet Services & Infrastructure	1.62		2.00
Diversified Metals & Mining	1.52		1.64
Systems Software	1.51		0.76
Home Improvement Retail	1.50		1.78
Auto Parts & Equipment	1.47		1.59
Communications Equipment	1.45		—
Real Estate Services	1.35		1.47
Soft Drinks & Non-alcoholic Beverages	1.30		1.40
Automotive Retail	1.24		1.89
Office Services & Supplies	1.18		—
Leisure Facilities	1.15		1.28
Other Specialty Retail	1.12		1.35
Electrical Components & Equipment	0.99		1.07
Movies & Entertainment	0.94		0.40
Construction Machinery & Heavy Transportation Equipment	0.79		—
Health Care Equipment	0.78		0.74
Passenger Airlines	0.76		0.82
Real Estate Development	0.76		0.79
Wireless Telecommunication Services	0.74		—
Gold	0.71		0.77
Home Furnishings	0.70		0.78
Broadline Retail	0.67		2.74
Construction & Engineering	0.62		0.73
Packaged Foods & Meats	0.60		—
Specialty Chemicals	0.59		1.27
Oil & Gas Storage & Transportation	0.59		0.72
Apparel Retail	0.54		0.16
Hotels, Resorts & Cruise Lines	0.52		0.56
Alternative Carriers	0.46		—
Food Distributors	0.44		0.19
Health Care Supplies	0.35		0.38
Advertising	0.34		0.84
Integrated Telecommunication Services	0.27		0.62
Distributors	0.26		1.24
Education Services	0.25		0.46
Financial Exchanges & Data	0.21		—
Cable & Satellite	0.21		0.15
Research & Consulting Services	0.15		0.16
Paper & Plastic Packaging Products & Materials	0.10		0.11
Housewares & Specialties	0.08		0.10
Diversified Chemicals	0.05		—
Insurance Brokers	—		1.74
Consumer Finance	—		0.54
Restaurants	—		0.41
Air Freight & Logistics	—		0.16
Integrated Oil & Gas	—		0.16
Other Specialized REITs	—		0.14
Leisure Products	—		0.07
Technology Distributors	—		0.03
Total	100.00	%	100.00	%


	June 30, 2024		September 30, 2023
Fair value:
Application Software	16.47	%	15.73	%
Multi-Sector Holdings (1)	6.58		6.69
Biotechnology	4.12		4.35
Health Care Services	3.61		2.31
Health Care Technology	3.33		3.30
Interactive Media & Services	3.08		0.66
Industrial Machinery & Supplies & Components	3.02		3.40
Data Processing & Outsourced Services	2.91		4.33
Pharmaceuticals	2.68		2.78
Real Estate Operating Companies	2.54		2.85
Diversified Financial Services	2.21		2.07
Aerospace & Defense	2.20		1.79
Diversified Support Services	2.17		0.81
Environmental & Facilities Services	2.04		2.16
Fertilizers & Agricultural Chemicals	2.02		2.18
Health Care Distributors	2.02		2.10
Specialized Finance	1.88		2.41
Personal Care Products	1.87		2.07
Airport Services	1.76		1.88
Internet Services & Infrastructure	1.69		2.09
Diversified Metals & Mining	1.62		1.72
Systems Software	1.59		0.76
Auto Parts & Equipment	1.56		1.70
Home Improvement Retail	1.55		1.84
Communications Equipment	1.53		—
Metal, Glass & Plastic Containers	1.51		1.85
Real Estate Services	1.39		1.52
Soft Drinks & Non-alcoholic Beverages	1.36		1.47
Automotive Retail	1.25		1.93
Office Services & Supplies	1.23		—
Other Specialty Retail	1.20		1.42
Leisure Facilities	1.19		1.28
Electrical Components & Equipment	1.03		1.13
Movies & Entertainment	1.00		0.41
Passenger Airlines	0.86		0.95
Construction Machinery & Heavy Transportation Equipment	0.83		—
Real Estate Development	0.80		0.82
Wireless Telecommunication Services	0.78		—
Gold	0.76		0.81
Health Care Equipment	0.73		0.78
Broadline Retail	0.71		2.39
Construction & Engineering	0.64		0.76
Packaged Foods & Meats	0.64		—
Specialty Chemicals	0.62		1.34
Apparel Retail	0.58		0.17
Oil & Gas Storage & Transportation	0.57		0.55
Hotels, Resorts & Cruise Lines	0.54		0.59
Alternative Carriers	0.49		—
Home Furnishings	0.48		0.69
Food Distributors	0.46		0.18
Advertising	0.36		0.41
Health Care Supplies	0.36		0.39
Integrated Telecommunication Services	0.27		0.57
Education Services	0.26		0.47
Distributors	0.24		1.29
Financial Exchanges & Data	0.22		—
Cable & Satellite	0.20		0.16
Research & Consulting Services	0.16		0.17
Paper & Plastic Packaging Products & Materials	0.10		0.11
Housewares & Specialties	0.08		0.10
Diversified Chemicals	0.05		—
Insurance Brokers	—		1.83
Consumer Finance	—		0.52
Restaurants	—		0.43
Integrated Oil & Gas	—		0.17
Air Freight & Logistics	—		0.15
Other Specialized REITs	—		0.11
Leisure Products	—		0.07
Technology Distributors	—		0.03
Total	100.00	%	100.00	%

___________________

(1)This industry includes our investments in the JVs and CLOs.

The Joint Ventures

Senior Loan Fund JV I, LLC

In May 2014, we entered into a limited liability company, or LLC, agreement with Kemper to form SLF JV I. We co-invest in senior secured loans of middle-market companies and other corporate debt securities with Kemper through our investment in SLF JV I. SLF JV I is managed by a four person Board of Directors, two of whom are selected by us and two of whom are selected by Kemper. All portfolio decisions and investment decisions in respect of SLF JV I must be approved by the SLF JV I investment committee, which consists of one representative selected by us and one representative selected by Kemper (with approval from a representative of each required). Since we do not have a controlling financial interest in SLF JV I, we do not consolidate SLF JV I. SLF JV I is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act. SLF JV I is capitalized pro rata with LLC equity interests as transactions are completed and may be capitalized with additional subordinated notes issued to us and Kemper by SLF JV I. The subordinated notes issued by SLF JV I are referred to as the SLF JV I Notes. The SLF JV I Notes are senior in right of payment to SLF JV I LLC equity interests and subordinated in right of payment to SLF JV I’s secured debt.

As of June 30, 2024 and September 30, 2023, we and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I and the outstanding SLF JV I Notes. As of each of June 30, 2024 and September 30, 2023, we and Kemper had funded approximately $190.5 million to SLF JV I, of which $166.7 million was from us. As of each of June 30, 2024 and September 30, 2023, we had aggregate commitments to fund SLF JV I of $13.1 million, of which approximately $9.8 million was to fund additional SLF JV I Notes and approximately $3.3 million was to fund LLC equity interests in SLF JV I.

Both the cost and fair value of our SLF JV I Notes were $112.7 million as of each of June 30, 2024 and September 30, 2023. We earned interest income of $3.5 million and $10.7 million on the SLF JV I Notes for the three and nine months ended June 30, 2024, respectively. We earned interest income of $3.4 million and $9.2 million on the SLF JV I Notes for the three and nine months ended June 30, 2023, respectively. As of June 30, 2024, the SLF JV I Notes bore interest at a rate of one-month SOFR plus 7.00% per annum with a SOFR floor of 1.00% and will mature on December 29, 2028.

The cost and fair value of the LLC equity interests in SLF JV I held by us was $54.8 million and $25.8 million, respectively, as of June 30, 2024, and $54.8 million and $28.9 million, respectively, as of September 30, 2023. We earned $1.4 million and $4.2 million in dividend income for the three and nine months ended June 30, 2024, respectively, with respect to our investment in the LLC equity interests of SLF JV I. We earned $1.1 million and $3.2 million in dividend income for the three and nine months ended June 30, 2023, respectively, with respect to its investment in the LLC equity interests of SLF JV I.

Below is a summary of SLF JV I's portfolio as of June 30, 2024 and September 30, 2023:


	June 30, 2024	September 30, 2023
Senior secured loans (1)	$353,579	$332,637
Weighted average interest rate on senior secured loans (2)	9.83%	10.62%
Number of borrowers in SLF JV I	49	48
Largest exposure to a single borrower (1)	$11,161	$11,286
Total of five largest loan exposures to borrowers (1)	$53,328	$54,051

__________________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

See "Note 3. Portfolio Investments" in the notes to the accompanying financial statements for more information on SLF JV I and its portfolio.

OCSI Glick JV LLC

On March 19, 2021, we became party to the LLC agreement of the Glick JV. The Glick JV invests primarily in senior secured loans of middle-market companies. We co-invest in these securities with GF Equity Funding through the Glick JV. The Glick JV is managed by a four person Board of Directors, two of whom are selected by us and two of whom are selected by GF Equity Funding. All portfolio decisions and investment decisions in respect of the Glick JV must be approved by the Glick JV investment committee, consisting of one representative selected by us and one representative selected by GF Equity Funding

(with approval from a representative of each required). Since we do not have a controlling financial interest in the Glick JV, we do not consolidate the Glick JV. The Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act. The Glick JV is capitalized as transactions are completed. The members provide capital to the Glick JV in exchange for LLC equity interests, and we and GF Debt Funding, an entity advised by affiliates of GF Equity Funding, provide capital to the Glick JV in exchange for subordinated notes issued by the Glick JV, or the Glick JV Notes. The Glick JV Notes are junior in right of payment to the repayment of temporary contributions made by us to fund investments of the Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Glick JV Notes, respectively.

As of June 30, 2024 and September 30, 2023, we and GF Equity Funding owned 87.5% and 12.5%, respectively, of the outstanding LLC equity interests, and we and GF Debt Funding owned 87.5% and 12.5%, respectively, of the Glick JV Notes. Approximately $84.0 million in aggregate commitments was funded as of each of June 30, 2024 and September 30, 2023, of which $73.5 million was from us. As of each of June 30, 2024 and September 30, 2023, we had commitments to fund Glick JV Notes of $78.8 million, of which $12.4 million was unfunded. As of each of June 30, 2024 and September 30, 2023, we had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million was unfunded.

The cost and fair value of our aggregate investment in the Glick JV was $51.3 million and $49.9 million, respectively, as of June 30, 2024. The cost and fair value of our aggregate investment in the Glick JV was $50.3 million and $50.0 million, respectively, as of September 30, 2023. For the three and nine months ended June 30, 2024, our investment in the Glick JV Notes earned interest income of $1.8 million and $5.4 million, respectively. For the three and nine months ended June 30, 2023, our investment in the Glick JV Notes earned interest income of $1.8 million and $5.0 million, respectively. We did not earn any dividend income for the three and nine months ended June 30, 2024 and 2023 with respect to our investment in the LLC equity interests of the Glick JV.

Below is a summary of the Glick JV's portfolio as of June 30, 2024 and September 30, 2023:


	June 30, 2024	September 30, 2023
Senior secured loans (1)	$139,298	$130,589
Weighted average current interest rate on senior secured loans (2)	9.53%	10.77%
Number of borrowers in the Glick JV	45	38
Largest loan exposure to a single borrower (1)	$6,891	$6,230
Total of five largest loan exposures to borrowers (1)	$27,461	$28,396

__________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

See "Note 3. Portfolio Investments" in the notes to the accompanying financial statements for more information on the Glick JV and its portfolio.

Discussion and Analysis of Results and Operations

Results of Operations

Net increase (decrease) in net assets resulting from operations includes net investment income, net realized gains (losses) and net unrealized appreciation (depreciation). Net investment income is the difference between our income from interest, dividends and fees and net expenses. Net realized gains (losses) is the difference between the proceeds received from dispositions of investment related assets and liabilities and their stated costs. Net unrealized appreciation (depreciation) is the net change in the fair value of our investment related assets and liabilities carried at fair value during the reporting period, including the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

Comparison of Three and Nine Months ended June 30, 2024 and June 30, 2023

Total Investment Income

Total investment income includes interest on our investments, fee income and dividend income.

Total investment income for the three months ended June 30, 2024 and 2023 was $95.0 million and $101.9 million, respectively. For the three months ended June 30, 2024, this amount consisted of $92.1 million of interest income from portfolio investments (which included $6.1 million of PIK interest), $1.5 million of fee income and $1.4 million of dividend income. For the three months ended June 30, 2023, this amount consisted of $99.3 million of interest income from portfolio investments (which included $4.0 million of PIK interest), $1.6 million of fee income and $1.1 million of dividend income. The decrease of $6.9 million, or 6.8%, in our total investment income for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, was due primarily to a $7.2 million decrease in interest income, which resulted from a lower average investment portfolio, an increase in the number of non-accrual investments, and lower OID acceleration, partially offset by a $0.4 million increase in dividend income.

Total investment income for the nine months ended June 30, 2024 and 2023 was $287.0 million and $277.4 million, respectively. For the nine months ended June 30, 2024, this amount consisted of $277.4 million of interest income from portfolio investments (which included $14.8 million of PIK interest), $5.3 million of fee income and $4.2 million of dividend income. For the nine months ended June 30, 2023, this amount consisted of $268.3 million of interest income from portfolio investments (which included $14.2 million of PIK interest), $6.0 million of fee income and $3.2 million of dividend income. The increase of $9.6 million, or 3.5%, in our total investment income for the nine months ended June 30, 2024, as compared to the nine months ended June 30, 2023, was due primarily to a $9.2 million increase in interest income, which was primarily driven by the impact of higher base rates on our floating rate debt portfolio and a larger investment portfolio primarily from the assets acquired in the OSI2 Merger, and a $1.1 million increase in dividend income. This was partially offset by a $0.7 million decrease in fee income due to lower exit fees.

Expenses

Net expenses (expenses net of fee waivers) for the three months ended June 30, 2024 and 2023 were $50.4 million and $53.5 million, respectively. Net expenses decreased for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, by $3.1 million, or 5.8%. The decrease in net expenses was primarily driven by a $4.5 million reduction in Part I incentive fees due to waivers and lower adjusted net investment income and $0.3 million of lower professional fees. This was partially offset by $1.7 million of higher interest expense due to the impact of rising interest rates on our floating rate liabilities.

Net expenses (expenses net of fee waivers) for the nine months ended June 30, 2024 and 2023 were $156.8 million and $144.1 million, respectively. Net expenses increased for the nine months ended June 30, 2024, as compared to the nine months ended June 30, 2023, by $12.7 million, or 8.8%. The increase in net expenses was primarily driven by $17.2 million of higher interest expense due to the impact of rising interest rates on our floating rate liabilities and an increase in average borrowings outstanding. Further contributing to the increase were 1.0 million of higher management fees (net of waivers) as a result of a larger investment portfolio. This was partially offset by a $3.7 million reduction in Part I incentive fees, $1.2 million of lower professional fees and $0.8 million of lower general and administrative expenses.

Net Investment Income

Net investment income for the three months ended June 30, 2024 decreased by $3.8 million compared to the three months ended June 30, 2023, primarily as a result of the $6.9 million decrease in total investment income and the $3.1 million decrease in net expenses.

Net investment income for the nine months ended June 30, 2024 decreased by $3.1 million compared to the nine months ended June 30, 2023, primarily as a result of the $9.6 million increase in total investment income and the $12.7 million increase in net expenses.

Realized Gain (Loss)

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of investments and foreign currency and the cost basis without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period, net of recoveries. Realized losses may also be recorded in connection with our determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.

During the three months ended June 30, 2024 and 2023, we recorded aggregate net realized losses of $69.5 million and $10.6 million, respectively, in connection with the exits and restructurings of various investments and foreign currency forward contracts. During the nine months ended June 30, 2024 and 2023, we recorded aggregate net realized losses of $84.5 million and $19.9 million, respectively, in connection with the exits and restructurings of various investments and foreign currency forward contracts. See “Note 8. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation” in the notes to the accompanying Consolidated Financial Statements for more details regarding investment realization events for the three and nine months ended June 30, 2024 and 2023.

Net Unrealized Appreciation (Depreciation)

Net unrealized appreciation or depreciation is the net change in the fair value of our investments and foreign currency during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

During the three months ended June 30, 2024 and 2023, we recorded net unrealized appreciation (depreciation) of $26.2 million and $(1.0) million, respectively. For the three months ended June 30, 2024, this consisted of $83.6 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $1.1 million of net unrealized appreciation of foreign currency forward contracts, partially offset by $38.6 million of net unrealized depreciation on debt investments and $19.9 million of net unrealized depreciation on equity investments. For the three months ended June 30, 2023, this consisted of $9.8 million of net unrealized depreciation on debt investments and $0.8 million of net unrealized depreciation on equity investments, partially offset by $5.0 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $4.6 million of net unrealized appreciation of foreign currency forward contracts.

During the nine months ended June 30, 2024 and 2023, we recorded net unrealized depreciation of $24.1 million and $42.3 million, respectively. For the nine months ended June 30, 2024, this consisted of $49.6 million of net unrealized depreciation on debt investments, $30.5 million of net unrealized depreciation on equity investments and $4.5 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $60.5 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses). For the nine months ended June 30, 2023, this consisted of $54.3 million of net unrealized depreciation on debt investments and $4.8 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $11.8 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $5.1 million of net unrealized appreciation on equity investments.

Financial Condition, Liquidity and Capital Resources

We have a number of alternatives available to fund our investment portfolio and our operations, including raising equity, increasing or refinancing debt and funding from operational cash flow. We generally expect to fund the growth of our investment portfolio through additional debt and equity capital, which may include securitizing a portion of our investments. We cannot assure you, however, that our efforts to grow our portfolio will be successful. For example, our common stock has traded at prices below net asset value, and we may not be able to raise additional equity at prices below the then-current net asset value per share. We intend to continue to generate cash primarily from cash flows from operations, including interest earned, and future borrowings or equity offerings. We intend to fund our future distribution obligations through operating cash flow or with funds obtained through future equity and debt offerings or credit facilities, as we deem appropriate.

Our primary uses of cash are for (1) investments in portfolio companies and other investments to comply with certain portfolio diversification requirements, (2) the cost of operations (including our expenses, the management and incentive fees and any indemnification obligations), (3) debt service of borrowings and (4) cash distributions to stockholders. We may also from time to time repurchase or redeem some or all of our outstanding notes. At a special meeting of our stockholders held on June 28, 2019, our stockholders approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the

Investment Company Act to us effective as of June 29, 2019. As a result of the reduced asset coverage requirement, we can incur $2 of debt for each $1 of equity as compared to $1 of debt for each $1 of equity. As of June 30, 2024, we had $1,743.4 million in senior securities and our asset coverage ratio was 183.36%. As of June 30, 2024, our target debt to equity ratio was 0.90x to 1.25x (i.e., one dollar of equity for each $0.90 to $1.25 of debt outstanding) and our net debt to equity ratio was 1.10x.

For the nine months ended June 30, 2024, we experienced a net decrease in cash and cash equivalents (including restricted cash) of $38.2 million. During that period, net cash used in operating activities was $76.4 million, primarily from funding $1,025.7 million of investments, partially offset by $723.8 million of principal payments and sale proceeds received, the cash activities related to $130.1 million of net investment income, $77.3 million of net decreases in receivables and net increases in payables from unsettled transactions and a $24.0 million decrease in due from broker. During the same period, net cash provided by financing activities was $38.5 million, primarily consisting of $92.7 million of proceeds from the issuance of shares under the "at the market" offering and $80.0 million net borrowings under credit facilities, partially offset by $133.1 million of cash distributions paid to our stockholders.

For the nine months ended June 30, 2023, we experienced a net increase in cash and cash equivalents (including restricted cash) of $46.3 million. During that period, net cash used in operating activities was $15.0 million, primarily from funding $597.7 million of investments and $58.8 million of net increase in net receivables from unsettled transactions, partially offset by $521.2 million of principal payments and sale proceeds received, the cash activities related to $133.2 million of net investment income, $22.3 million of cash received in connection with the OSI2 merger and a $20.5 million decrease in due from portfolio companies. During the same period, net cash provided by financing activities was $61.0 million, primarily consisting of $210.0 million of net borrowings under the credit facilities, partially offset by $139.1 million of cash distributions paid to our stockholders.

As of June 30, 2024, we had $107.3 million in cash and cash equivalents (including $11.0 million of restricted cash), portfolio investments (at fair value) of $3.1 billion, $27.6 million of interest, dividends and fees receivable, $1.0 million of due from portfolio companies, $827.5 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $32.8 million of net payables from unsettled transactions, $790.0 million of borrowings outstanding under our credit facilities and $907.2 million of unsecured notes payable (net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment).

As of September 30, 2023, we had $145.5 million in cash and cash equivalents (including $9.1 million of restricted cash), portfolio investments (at fair value) of $2.9 billion, $44.6 million of interest, dividends and fees receivable, $6.3 million of due from portfolio companies, $907.5 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $44.4 million of net receivables from unsettled transactions, $710.0 million of borrowings outstanding under our credit facilities and $890.7 million of unsecured notes payable (net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment).

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of June 30, 2024, our only off-balance sheet arrangements consisted of $291.4 million of unfunded commitments, which was comprised of $264.3 million to provide debt and equity financing to certain of our portfolio companies and $27.1 million to provide financing to the JVs. Of the $264.3 million, approximately $219.4 million can be drawn immediately with the remaining amount subject to certain milestones that must be met by portfolio companies or other restrictions. As of September 30, 2023, our only off-balance sheet arrangements consisted of $232.7 million of unfunded commitments, which was comprised of $205.6 million to provide debt and equity financing to certain of our portfolio companies and $27.1 million to provide financing to the JVs. Of the $205.6 million, approximately $154.2 million can be drawn immediately with the remaining amount subject to certain milestones that must be met by portfolio companies or other restrictions.

As of June 30, 2024, we have analyzed cash and cash equivalents, availability under our credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believe our liquidity and capital resources are sufficient to invest in market opportunities as they arise.

Contractual Obligations

The following table reflects information pertaining to our principal debt outstanding under the Syndicated Facility, the OSI2 Citibank Facility, the 2025 Notes, the 2027 Notes and the 2029 Notes (each as defined below):


	Debt Outstanding as of September 30, 2023		Debt Outstanding as of June 30, 2024		Weighted average debt outstanding for the nine months ended June 30, 2024		Maximum debt outstanding for the nine months ended June 30, 2024
Syndicated Facility	$	430,000	$	505,000	$	446,770	$	505,000
OSI2 Citibank Facility	280,000		285,000		284,106		300,000
2025 Notes	300,000		300,000		300,000		300,000
2027 Notes	350,000		350,000		350,000		350,000
2029 Notes	300,000		300,000		300,000		300,000
Total debt	$	1,660,000	$	1,740,000	$	1,680,876

The following table reflects our contractual obligations arising from the Syndicated Facility, the OSI2 Citibank Facility, the 2025 Notes, the 2027 Notes and the 2029 Notes:


	Payments due by period as of June 30, 2024
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Syndicated Facility	$	505,000	$	—	$	—	$	505,000	$	—
Interest due on Syndicated Facility	151,785		38,103		76,206		37,476		—
OSI2 Citibank Facility	285,000		—		—		285,000		—
Interest due on OSI2 Citibank Facility	102,862		22,468		44,936		35,458		—
2025 Notes	300,000		300,000		—		—		—
Interest due on 2025 Notes	6,904		6,904		—		—		—
2027 Notes	350,000		—		350,000		—		—
Interest due on 2027 Notes (a)	64,568		25,369		39,199		—		—
2029 Notes	300,000		—		—		300,000		—
Interest due on 2029 Notes (a)	117,414		25,344		50,687		41,383		—
Total	$	2,183,533	$	418,188	$	561,028	$	1,204,317	$	—

__________

(a) The interest due on the 2027 Notes and the 2029 Notes was calculated net of the interest rate swaps.

Equity Issuances

During the three and nine months ended June 30, 2024, we issued an aggregate of 100,029 and 295,484 shares, respectively, of common stock as part of the DRIP.

On February 7, 2022, we entered into an equity distribution agreement by and among us, Oaktree, Oaktree Administrator and Keefe, Bruyette & Woods, Inc., JMP Securities LLC, Raymond James & Associates, Inc. and SMBC Nikko Securities America, Inc., as placement agents, in connection with the issuance and sale by us of shares of common stock, having an aggregate offering price of up to $125.0 million. The equity distribution agreement was amended on February 8, 2023 to allow for the sale of shares of our common stock having an aggregate offering price of up to $125 million under our current registration statement and on August 8, 2023 to add Jefferies LLC as an additional placement agent and to remove SMBC Nikko Securities America, Inc. as a placement agent. Sales of the common stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or similar securities exchanges or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.

In connection with the "at the market" offering, we issued and sold 4,724,506 shares of common stock during the nine months ended June 30, 2024 for net proceeds of $92.5 million (net of offering costs).


	Number of Shares Issued	Gross Proceeds		Placement Agent Fees		Net Proceeds (1)		Average Sales Price per Share (2)
"At the market" offering	4,724,506	$	93,685	$	937	$	92,748	$	19.83

(1) Net proceeds excludes offering costs of $0.2 million.

(2) Represents the gross sales price before deducting placement agent fees and estimated offering expenses.

In connection with the "at the market" offering, we did not issue or sell any shares of common stock during the nine months ended June 30, 2023.

Distributions

The following table reflects the distributions per share that we have paid, including shares issued under our DRIP, on our common stock since October 1, 2021. The distributions per share and shares issued under our DRIP information disclosed in this table for dates prior to January 23, 2023 have been retroactively adjusted to reflect our 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

Distribution

Date Declared

Record Date

Payment Date

Amount
per Share

Cash
Distribution

DRIP Shares
Issued

DRIP Shares
Value

Quarterly

October 13, 2021

December 15, 2021

December 31, 2021

0.465

$ 27.2 million

35,990

(2)

$ 0.8 million

Quarterly

January 28, 2022

March 15, 2022

March 31, 2022

0.48

28.5 million

34,804

(2)

0.8 million

Quarterly

April 29, 2022

June 15, 2022

June 30, 2022

0.495

29.4 million

43,676

(1)

0.9 million

Quarterly

July 29, 2022

September 15, 2022

September 30, 2022

0.51

30.2 million

51,181

(1)

1.0 million

Quarterly

November 10, 2022

December 15, 2022

December 30, 2022

0.54

32.0 million

53,369

(1)

1.1 million

Special

November 10, 2022

December 15, 2022

December 30, 2022

0.42

24.8 million

41,510

(2)

0.8 million

Quarterly

January 27, 2023

March 15, 2023

March 31, 2023

0.55

41.1 million

68,412

(1)

1.3 million

Quarterly

April 28, 2023

June 15, 2023

June 30, 2023

0.55

41.3 million

57,279

(1)

1.1 million

Quarterly

July 28, 2023

September 15, 2023

September 29, 2023

0.55

40.9

million

76,766

(2)

1.5 million

Quarterly

November 8, 2023

December 15, 2023

December 29, 2023

0.55

41.7

million

87,472

(2)

1.7

million

Special

November 8, 2023

December 15, 2023

December 29, 2023

0.07

5.3

million

11,133

(2)

0.2

million

Quarterly

January 26, 2024

March 15, 2024

March 29, 2024

0.55

42.8

million

96,850

(2)

1.9

million

Quarterly

April 26, 2024

June 14, 2024

June 28, 2024

0.55

43.3

million

100,029

(2)

1.9

million

______________

(1) Shares were purchased on the open market and distributed other than with respect to the distributions paid on December 31, 2021, March 31, 2022, December 30, 2022, September 29, 2023, December 29, 2023, March 29, 2024 and June 28, 2024.

(2) New shares were issued with respect to distributions paid on December 31, 2021, March 31, 2022, December 30, 2022, September 29, 2023, December 29, 2023, March 29, 2024 and June 28, 2024.

Indebtedness

See “Note 6. Borrowings” in the Consolidated Financial Statements for more details regarding our indebtedness.

Syndicated Facility

As of June 30, 2024, (i) the size of the our senior secured revolving credit facility, or, as amended and/or restated from time to time, the Syndicated Facility, pursuant to a senior secured revolving credit agreement, with the lenders, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc. and MUFG Union Bank, N.A. as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents, was $1.218 billion (with an “accordion” feature that permits us, under certain circumstances, to increase the size of the facility to up to the greater of $1.25 billion and our net worth (as defined in the Syndicated Facility) on the date of such increase), (ii) the period during which we may make drawings on $1.035 billion of commitments will expire on June 23, 2027 and the maturity date was June 23, 2028, (iii) the period during which we may make drawings with respect to the remaining commitments will expire on May 4, 2025 and the maturity date is May 4, 2026 and (iv) the interest rate margin for (a) SOFR

loans (which may be 1- or 3-month, at our option) was 2.00% plus a SOFR adjustment which ranges between 0.11448% and 0.26161% and (b) alternate base rate loans was 1.00%.

Each loan or letter of credit originated or assumed under the Syndicated Facility is subject to the satisfaction of certain conditions. Borrowings under the Syndicated Facility are subject to the facility’s various covenants and the leverage restrictions contained in the Investment Company Act. We cannot assure you that we will be able to borrow funds under the Syndicated Facility at any particular time or at all.

The following table describes significant financial covenants, as of June 30, 2024, with which we must comply under the Syndicated Facility on a quarterly basis:

Financial Covenant

Description

Target Value

March 31, 2024 Reported Value (1)

Minimum shareholders' equity

Net assets shall not be less than the sum of (x) $600 million, plus (y) 50% of the aggregate net proceeds of all sales of equity interests after May 6, 2020

$811 million

$1,524 million

Asset coverage ratio

Asset coverage ratio shall not be less than the greater of 1.50:1 and the statutory test applicable to us

1.50:1

1.88:1

Interest coverage ratio

Interest coverage ratio shall not be less than 2.25:1

2.25:1

2.40:1

Minimum net worth

Net worth shall not be less than $550 million

$550 million

$989 million

___________

(1) As contractually required, we report financial covenants based on the last filed quarterly or annual report, in this case our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. We were in compliance with all financial covenants under the Syndicated Facility based on the financial information contained in this Quarterly Report on Form 10-Q.

As of June 30, 2024 and September 30, 2023, we had $505.0 million and $430.0 million of borrowings outstanding under the Syndicated Facility, which had a fair value of $505.0 million and $430.0 million, respectively. Our borrowings under the Syndicated Facility bore interest at a weighted average interest rate of 7.576% and 6.584% for the nine months ended June 30, 2024 and 2023, respectively. For the three and nine months ended June 30, 2024, we recorded interest expense (inclusive of fees) of $10.2 million and $29.3 million, respectively, related to the Syndicated Facility. For the three and nine months ended June 30, 2023, we recorded interest expense (inclusive of fees) of $14.3 million and $37.4 million, respectively, related to the Syndicated Facility.

Citibank Facility

On March 19, 2021, we became party to a revolving credit facility, or, as amended and/or restated from time to time, the Citibank Facility, with OCSL Senior Funding II LLC, our wholly-owned, special purpose financing subsidiary, as the borrower, us, as collateral manager and seller, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian. On May 25, 2023, in connection with an amendment to the OSI2 Citibank Facility, the Citibank Facility was terminated.

Our borrowings under the Citibank Facility bore interest at a weighted average interest rate of 6.762% for the nine months ended June 30, 2023. For the three and nine months ended June 30, 2023, we recorded interest expense (inclusive of fees) of $2.4 million and $8.0 million, respectively, related to the Citibank Facility.

OSI2 Citibank Facility

On January 23, 2023, as a result of the consummation of the OSI2 Merger, we became party to a revolving credit facility, or, as amended and/or restated from time to time, the OSI2 Citibank Facility, with OSI 2 Senior Lending SPV, LLC, or OSI 2 SPV, our wholly-owned and consolidated subsidiary, as the borrower, us, as collateral manager, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Deutsche Bank Trust Company Americas, as collateral agent.

As of June 30, 2024, we were able to borrow up to $400 million under the OSI2 Citibank Facility (subject to borrowing base and other limitations). As of June 30, 2024, the OSI2 Citibank Facility had a reinvestment period through May 25, 2027, during which advances may be made, and matures on January 26, 2029. Following the reinvestment period, OSI 2 SPV will be required to make certain mandatory amortization payments. Borrowings under the OSI2 Citibank Facility bear interest payable quarterly at a rate per year equal to SOFR plus 2.35% per annum. After the reinvestment period, the applicable spread is 3.35% per year. There is also a non-usage fee of 0.50% per year on the unused portion of the OSI2 Citibank Facility, payable quarterly; provided that if the unused portion of the OSI2 Citibank Facility is greater than 30% of the commitments under the OSI2 Citibank Facility, the non-usage fee will be based on an unused portion of 30% of the commitments under the OSI2 Citibank Facility. The OSI2 Citibank Facility is secured by a first priority security interest in substantially all of OSI 2 SPV’s assets. As part of the OSI2 Citibank Facility, OSI 2 SPV is subject to certain limitations as to how borrowed funds may be used and the types of loans that are eligible to be acquired by OSI 2 SPV including restrictions on sector concentrations, loan size, tenor and minimum investment ratings (or estimated ratings). The OSI2 Citibank Facility also contains certain requirements

relating to interest coverage, collateral quality and portfolio performance, certain violations of which could result in the acceleration of the amounts due under the OSI2 Citibank Facility.

As of June 30, 2024 and September 30, 2023, we had $285.0 million and $280.0 million outstanding under the OSI2 Citibank Facility, which had a fair value of $285.0 million and $280.0 million, respectively. Our borrowings under the OSI2 Citibank Facility bore interest at a weighted average interest rate of 8.029% and 7.275% for the nine months ended June 30, 2024 and the period from January 23, 2023 to June 30, 2023, respectively. For the three and nine months ended June 30, 2024, we recorded interest expense (inclusive of fees) of $6.1 million and $18.1 million, respectively, related to the OSI2 Citibank Facility. For the three months ended June 30, 2023 and the period from January 23, 2023 to June 30, 2023, we recorded interest expense (inclusive of fees) of $4.9 million and $8.0 million, respectively, related to the OSI2 Citibank Facility.

2025 Notes

On February 25, 2020, we issued $300.0 million in aggregate principal amount of the 2025 Notes for net proceeds of $293.8 million after deducting OID of $2.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.7 million. The OID on the 2025 Notes is amortized based on the effective interest method over the term of the notes.

2027 Notes

On May 18, 2021, we issued $350.0 million in aggregate principal amount of the 2027 Notes for net proceeds of $344.8 million after deducting OID of $1.0 million, underwriting commissions and discounts of $3.5 million and offering costs of $0.7 million. The OID on the 2027 Notes is amortized based on the effective interest method over the term of the notes.

In connection with the 2027 Notes, we entered into an interest rate swap to more closely align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, we receive a fixed interest rate of 2.700% and pay a floating interest rate of the three-month SOFR plus 1.658% plus a SOFR adjustment of 0.26161% on a notional amount of $350.0 million. We designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship.

2029 Notes

On August 15, 2023, we issued $300.0 million in aggregate principal amount of the 2029 Notes for net proceeds of $292.9 million after deducting OID of $3.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.6 million. The OID on the 2029 Notes is amortized based on the effective interest method over the term of the notes.

In connection with the 2029 Notes, we entered into an interest rate swap to more closely align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, we receive a fixed interest rate of 7.100% and pays a floating interest rate of the three-month SOFR plus 3.1255% on a notional amount of $300.0 million. We designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship. See Note 12 for more information regarding the interest rate swap.

The below table presents the components of the carrying value of the 2025 Notes, the 2027 Notes and the 2029 Notes as of June 30, 2024 and September 30, 2023:


	As of June 30, 2024						As of September 30, 2023
($ in millions)	2025 Notes		2027 Notes		2029 Notes		2025 Notes		2027 Notes		2029 Notes
Principal	$	300.0	$	350.0	$	300.0	$	300.0	$	350.0	$	300.0
Unamortized financing costs	(0.5)		(1.9)		(3.0)		(1.1)		(2.5)		(3.5)
Unaccreted discount	(0.3)		(0.5)		(2.9)		(0.7)		(0.6)		(3.4)
Interest rate swap fair value adjustment	—		(30.7)		(3.0)		—		(40.5)		(7.0)
Net carrying value	$	299.2	$	316.9	$	291.1	$	298.2	$	306.4	$	286.1
Fair Value	$	294.9	$	317.7	$	303.6	$	286.4	$	301.8	$	290.0

The below table presents the components of interest and other debt expenses related to the 2025 Notes, the 2027 Notes and the 2029 Notes for the three and nine months ended June 30, 2024:


($ in millions)	2025 Notes						2027 Notes						2029 Notes
	Three months ended June 30, 2024			Nine months ended June 30, 2024			Three months ended June 30, 2024			Nine months ended June 30, 2024			Three months ended June 30, 2024			Nine months ended June 30, 2024
Coupon interest	$	2.6		$	7.9		$	2.4		$	7.1		$	5.3		$	16.0
Amortization of financing costs and discount	0.3			0.9			0.2			0.7			0.3			1.0
Effect of interest rate swap	—			—			4.0			12.3			1.1			3.4
Total interest expense	$	2.9		$	8.8		$	6.6		$	20.1		$	6.7		$	20.4
Coupon interest rate (net of effect of interest rate swaps)	3.500		%	3.500		%	7.213		%	7.262		%	8.440		%	8.469		%

The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2023:


($ in millions)	2025 Notes						2027 Notes
	Three months ended June 30, 2023			Nine months ended June 30, 2023			Three months ended June 30, 2023			Nine months ended June 30, 2023
Coupon interest	$	2.6		$	7.9		$	2.4		$	7.1
Amortization of financing costs and discount	0.3			0.9			0.2			0.7
Effect of interest rate swap	—			—			3.7			9.4
Total interest expense	$	2.9		$	8.8		$	6.3		$	17.2
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)	3.500		%	3.500		%	6.912		%	6.274		%

Regulated Investment Company Status and Distributions

We have qualified and elected to be treated as a RIC under Subchapter M of the Code for U.S. federal income tax purposes. As long as we continue to qualify as a RIC, we will not be subject to tax on our investment company taxable income (determined without regard to any deduction for dividends paid) or realized net capital gains, to the extent that such taxable income or gains is distributed, or deemed to be distributed as dividends, to stockholders on a timely basis.

Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation. Distributions declared and paid by us in a taxable year may differ from taxable income for that taxable year as such distributions may include the distribution of taxable income derived from the current taxable year or the distribution of taxable income derived from the prior taxable year carried forward into and distributed in the current taxable year. Distributions also may include returns of capital.

To maintain RIC tax treatment, we must, among other things, distribute (or be deemed to distribute) dividends, with respect to each taxable year, of an amount at least equal to 90% of our investment company taxable income (i.e., our net ordinary income and our realized net short-term capital gains in excess of realized net long-term capital losses, if any), determined without regard to any deduction for dividends paid. As a RIC, we are also subject to a federal excise tax, based on distribution requirements of our taxable income on a calendar year basis. We anticipate timely distribution of our taxable income in accordance with tax rules. We did not incur a U.S. federal excise tax for calendar year 2021. For the calendar year 2022, we incurred $0.1 million of excise tax. We did not incur a U.S. federal excise tax for calendar year 2023. We do not expect to incur a U.S. federal excise tax for calendar year 2024.

We intend to distribute at least 90% of our annual taxable income (which includes our taxable interest and fee income) to our stockholders. The covenants contained in our credit facilities may prohibit us from making distributions to our stockholders, and, as a result, could hinder our ability to satisfy the distribution requirement associated with our ability to be subject to tax as a RIC. In addition, we may retain for investment some or all of our net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) and treat such amounts as deemed distributions to our stockholders. If we do this, our stockholders will be treated as if they received actual distributions of the capital gains we retained and then reinvested the net after-tax proceeds in our common stock. Our stockholders also may be eligible to claim tax credits (or, in certain circumstances, tax refunds) equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. To

the extent our taxable earnings for a fiscal and taxable year fall below the total amount of our dividend distributions for that fiscal and taxable year, a portion of those distributions may be deemed a return of capital to our stockholders.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a Business Development Company under the Investment Company Act and due to provisions in our credit facilities and debt instruments. If we do not distribute a certain percentage of our taxable income annually, we will suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

A RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder elects to receive his or her entire distribution in either cash or stock of the RIC, subject to certain limitations regarding the aggregate amount of cash to be distributed to all stockholders. If these and certain other requirements are met, for U.S federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock.

We may generate qualified net interest income or qualified net short-term capital gains that may be exempt from U.S. withholding tax when distributed to foreign stockholders. A RIC is permitted to designate distributions of qualified net interest income and qualified short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation. The following table, which may be subject to change as we finalize our annual tax filings, lists the percentage of qualified net interest income and qualified short-term capital gains for the year ended September 30, 2023.


Year Ended	Qualified Net Interest Income		Qualified Short-Term Capital Gains
September 30, 2023	89.4	%	—

We have adopted a DRIP that provides for the reinvestment of any distributions that we declare in cash on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board of Directors declares a cash distribution, then our stockholders who have not “opted out” of the DRIP will have their cash distributions automatically reinvested in additional shares of our common stock, rather than receiving a cash distribution. If our shares are trading at a premium to net asset value, we typically issue new shares to implement the DRIP, with such shares issued at the greater of the most recently computed net asset value per share of our common stock or 95% of the current market value per share of our common stock on the payment date for such distribution. If our shares are trading at a discount to net asset value, we typically purchase shares in the open market in connection with our obligations under the DRIP.

Related Party Transactions

We have entered into the Investment Advisory Agreement with Oaktree and the Administration Agreement with Oaktree Administrator, an affiliate of Oaktree. Mr. John B. Frank, an interested member of our Board of Directors, has an indirect pecuniary interest in Oaktree. Oaktree is a registered investment adviser under the Investment Advisers Act of 1940, as amended, that is partially and indirectly owned by Oaktree Capital Group, LLC. See “Note 10. Related Party Transactions – Investment Advisory Agreement” and “– Administrative Services” in the notes to the accompanying Consolidated Financial Statements.

Recent Developments

Distribution Declaration

On July 26, 2024, our Board of Directors declared a quarterly distribution of $0.55 per share, payable in cash on September 30, 2024 to stockholders of record on September 16, 2024.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in the valuations of our investment portfolio and interest rates.

Valuation Risk

Our investments may not have a readily available market price, and we value these investments at fair value as determined by Oaktree, as our valuation designee. There is no single standard for determining fair value in good faith and valuation methodologies involve a significant degree of management judgment. In addition, our valuation methodology utilizes discount rates in part in valuing our investments, and changes in those discount rates may have an impact on the valuation of our investments. Accordingly, valuations by Oaktree do not necessarily represent the amounts which may eventually be realized from sales or other dispositions of investments. Estimated fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the financial statements.

Interest Rate Risk

We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding and our interest income from portfolio investments, cash and cash equivalents and idle fund investments. Our risk management procedures are designed to identify and analyze our risk, to set appropriate policies and to continually monitor these risks. Our investment income will be affected by changes in various interest rates, including SOFR, EURIBOR, SONIA and prime rates, to the extent our debt investments include floating interest rates.

As of June 30, 2024, 85.3% of our debt investment portfolio (at fair value) and 85.7% of our debt investment portfolio (at cost) bore interest at floating rates. As of September 30, 2023, 86.2% of our debt investment portfolio (at fair value) and 86.4% of our debt investment portfolio (at cost) bore interest at floating rates. The composition of our floating rate debt investments by interest rate floor as of June 30, 2024 and September 30, 2023, was as follows:


	June 30, 2024				September 30, 2023
($ in thousands)	Fair Value		% of Floating Rate Portfolio		Fair Value		% of Floating Rate Portfolio
0%	$	337,615	13.3	%	$	169,693	7.2	%
>0% and <1%	593,985		23.5	%	522,027		22.3	%
1%	1,313,463		52.0	%	1,405,134		59.9	%
>1%	281,841		11.2	%	248,351		10.6	%
Total Floating Rate Investments	$	2,526,904	100.0	%	$	2,345,205	100.0	%

Based on our Consolidated Statement of Assets and Liabilities as of June 30, 2024, the following table shows the approximate annualized net increase (decrease) in net assets resulting from operations (excluding the impact of any potential incentive fees) of hypothetical base rate changes in interest rates, assuming no changes in our investment and capital structure. However, there can be no assurances our portfolio companies will be able to meet their contractual obligations at any or all levels on increases in interest rates.


($ in thousands) Basis point increase	Increase in Interest Income		(Increase) in Interest Expense		Net increase in net assets resulting from operations
250	$	66,406	$	(36,000)	$	30,406
200	53,122		(28,800)		24,322
150	39,838		(21,600)		18,238
100	26,554		(14,400)		12,154
50	13,277		(7,200)		6,077

100


($ in thousands) Basis point decrease	(Decrease) in Interest Income		Decrease in Interest Expense		Net (decrease) in net assets resulting from operations
50	$	(13,327)	$	7,200	$	(6,127)
100	(26,653)		14,400		(12,253)
150	(39,980)		21,600		(18,380)
200	(53,306)		28,800		(24,506)
250	(66,586)		36,000		(30,586)

We regularly measure exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on this review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. The interest rate on the principal balance outstanding for primarily all floating rate loans is indexed to the SOFR and/or an alternate base rate, which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. The following table shows a comparison of the interest rate base for our interest-bearing cash and outstanding investments, at principal, and our outstanding borrowings as of June 30, 2024 and September 30, 2023:


	June 30, 2024				September 30, 2023
($ in thousands)	Interest Bearing Cash and Investments		Borrowings		Interest Bearing Cash and Investments		Borrowings
Money market rate	$	37,364	$	—	$	83,262	$	—
Prime rate	1,366		25,000		2,221		—
LIBOR
30 day	—		—		26,692		—
90 day	—		—		45,671		—
180 day	—		—		54,559		—
EURIBOR
30 day	—		—		€	5,500	—
90 day	€	47,868	—		24,731		—
180 day	—		—		6,666		—
SOFR
30 day	$	849,934	480,000		$	682,693	430,000
60 day	—		—		—		—
90 day (a)	1,692,027		935,000		1,533,240		930,000
180 day	34,088		—		32,894		—
SONIA	£	41,394	—		£	53,250	—
Fixed rate	$	448,362	300,000		$	392,019	300,000

__________

(a)Borrowings include the 2027 Notes and 2029 Notes, which pay interest at a floating rate under the terms of the interest rate swap.

101

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

Management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2024. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives. Based on the evaluation of our disclosure controls and procedures as of June 30, 2024, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, in timely identifying, recording, processing, summarizing and reporting any material information relating to us that is required to be disclosed in the reports we file or submit under the Exchange Act.

There were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1. Legal Proceedings

We are currently not a party to any pending material legal proceedings.

Item 1A. Risk Factors

There have been no material changes during the three months ended June 30, 2024 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended June 30, 2024, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement”.

102

Item 6. Exhibits


3.1						Restated Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-A (File No. 001-33901) filed on January 2, 2008).

3.2						Certificate of Amendment to the Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit (a)(2) filed with Registrant’s Registration Statement on Form N-2 (File No. 333-146743) filed on June 6, 2008).

3.3						Certificate of Correction to the Certificate of Amendment to the Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit (a)(3) filed with Registrant’s Registration Statement on Form N-2 (File No. 333-146743) filed on June 6, 2008).

3.4						Certificate of Amendment to Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Quarterly Report on Form 10-Q (File No. 001-33901) filed on May 5, 2010).

3.5						Certificate of Amendment to Registrant’s Certificate of Incorporation (Incorporated by reference to Exhibit (a)(5) filed with the Registrant’s Registration Statement on Form N-2 (File No. 333-180267) filed on April 2, 2013).

3.6						Certificate of Amendment to the Restated Certificate of Incorporation of the Registrant, dated as of October 17, 2017 (Filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).

3.7						Certificate of Amendment to the Restated Certificate of Incorporation of the Registrant, dated as of January 20, 2023 (Incorporated by reference to Exhibit 3.7 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on January 20, 2023).

3.8						Fourth Amended and Restated Bylaws of the Registrant (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-K (File No. 814-00755) filed on January 29, 2018).

4.1						Form of Common Stock Certificate (Incorporated by reference to Exhibit 4.1 filed with Registrant’s Form 8-A (File No. 001-33901) filed on January 2, 2008).

10.1						Letter Agreement, dated as of April 26, 2024, by and between the Registrant and Oaktree Fund Advisors, LLC (Incorporated by reference to Exhibit 10.1 filed with Registrant’s Form 10-Q (File No. 814-00755) filed on April 30, 2024).

10.2						Seventh Amendment to Loan and Security Agreement, dated as of May 20, 2024, by and among the Company, OSI 2 Senior Lending SPV, LLC, and Citibank, N.A. (Incorporated by reference to Exhibit 1.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on May 22, 2024).

31.1*						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*						Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1*						Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32.2*						Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

101.INS*						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*						Inline XBRL Taxonomy Extension Schema Document.

101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104*						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


*			Filed herewith.

103

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



OAKTREE SPECIALTY LENDING CORPORATION

By:						/s/ Armen Panossian
						Armen Panossian
						Chief Executive Officer

By:						/s/ Christopher McKown
						Christopher McKown
						Chief Financial Officer and Treasurer

Date: July 31, 2024

104

Document

Exhibit 31.1

I, Armen Panossian, Chief Executive Officer of Oaktree Specialty Lending Corporation, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2024 of Oaktree Specialty Lending Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 31st day of July, 2024.



By:						/s/ Armen Panossian
						Armen Panossian Chief Executive Officer

Document

Exhibit 31.2

I, Christopher McKown, Chief Financial Officer of Oaktree Specialty Lending Corporation, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2024 of Oaktree Specialty Lending Corporation;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 31st day of July, 2024.



By:						/s/ Christopher McKown
						Christopher McKown Chief Financial Officer

Document

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

In connection with the quarterly report on Form 10-Q for the quarter ended June 30, 2024 (the “Report”) of Oaktree Specialty Lending Corporation (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Armen Panossian, the Chief Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.



/s/ Armen Panossian
Name: Armen Panossian

Date: July 31, 2024

Document

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

In connection with the quarterly report on Form 10-Q for the quarter ended June 30, 2024 (the “Report”) of Oaktree Specialty Lending Corporation (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Christopher McKown, the Chief Financial Officer of the Registrant, hereby certify, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.



/s/ Christopher McKown
Name: Christopher McKown

Date: July 31, 2024