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EX - 99.1 2 d114865dex991.htm EX - 99.1 Exhibit 99.1 OAKTREE OCSL | Specialty Lending Corporation Oaktree Specialty Lending Corporation Announces First Fiscal Quarter 2021 Financial Results and Declares Increased Distribution of $ 0.12 Per Share LOS ANGELES , CA , February 4 , 2021 - Oaktree Specialty Lending Corporation ( NASDAQ : OCSL ) ( “ Oaktree Specialty Lending ” or the “ Company ” ) , a specialty finance company , today announced its financial results for the fiscal quarter ended December 31 , 2020 . Financial Highlights for the Quarter Ended December 31 , 2020 Total investment income was $ 38.2 million ( $ 0.27 per share ) for the first fiscal quarter of 2021 , as compared with $ 43.6 million ( $ 0.31 per share ) for the fourth fiscal quarter of 2020. The decrease in investment income for the quarter was primarily driven by lower one - time make - whole interest income from investments that were prepaid in the fourth fiscal quarter of 2020 . GAAP net investment income was $ 10.0 million ( $ 0.07 per share ) for the first fiscal quarter of 2021 , as compared with $ 24.5 million ( $ 0.17 per share ) for the fourth fiscal quarter of 2020. The decrease was primarily due to lower investment income and higher accrued Part II incentive fees . Adjusted net investment income was $ 19.6 million ( $ 0.14 per share ) for the first fiscal quarter of 2021 , as compared with $ 24.5 million ( $ 0.17 per share ) for the fourth fiscal quarter of 2020. The decrease in adjusted net investment income for the quarter was primarily driven by lower investment income . Net asset value ( " NAV " ) per share was $ 6.85 as of December 31 , 2020 , up 5 % from $ 6.49 as of September 30 , 2020. The increase was primarily driven by realized gains resulting from the exit of an investment previously on non - accrual status and unrealized gains on debt investments . Originated $ 286.3 million of new investment commitments and received $ 160.7 million of proceeds from prepayments , exits , other paydowns and sales during the quarter ended December 31 , 2020. Of these new investment commitments , 68.6 % were first lien loans and 31.4 % were second lien loans . The weighted average yield on new debt investments was 8.7 % . Total debt outstanding was $ 700.0 million as of December 31 , 2020. The total debt to equity ratio was 0.73x , and the net debt to equity ratio was 0.70x , after adjusting for cash and cash equivalents . Liquidity as of December 31 , 2020 was composed of $ 24.2 million of unrestricted cash and cash equivalents and $ 400.0 million of undrawn capacity under the credit facility ( subject to borrowing base and other limitations ) . Unfunded investment commitments were $ 197.6 million , with approximately $ 149.8 million that can be drawn immediately as the remaining amount is subject to certain milestones that must be met by portfolio companies . A quarterly cash distribution was declared of $ 0.12 per share , an increase of 9 % from the prior quarter and the third consecutive quarterly distribution increase . The distribution will be paid in cash and is payable on March 31 , 2021 to stockholders of record on March 15 , 2021 . Armen Panossian , Chief Executive Officer and Chief Investment Officer , said , “ OCSL reported another quarter of strong financial results and portfolio performance . NAV grew by more than 5 % sequentially to $ 6.85 per share , exceeding the pre - pandemic level of $ 6.61 per share at December 31 , 2019 . The increase was primarily driven by continued strong portfolio company performance and the favorable realization of a non - core investment that was previously on non - accrual . Earnings were solid at $ 0.14 per share , as our opportunistic investment activity in the wake of the pandemic and progress in rotating the portfolio into higher yielding , proprietary investments continue to favorably impact results . Recognizing this ongoing strong performance , the Board of Directors announced a dividend increase to $ 0.12 per share , up 26 % from one year ago and marking the third consecutive quarter with a dividend increase . Looking ahead , we believe our high - quality investment portfolio with an improved yield profile is well - positioned to deliver continued attractive risk - adjusted returns to our shareholders . " 1