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Oaktree Specialty Lending Corporation Announces Third Fiscal Quarter 2021 Financial Results and Declares Increased Distribution of $ 0.145 Per Share OAKTREE OCSL | Specialty Lending Corporation LOS ANGELES , CA , August 5 , 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 June 30 , 2021 . Financial Highlights for the Quarter Ended June 30 , 2021 Total investment income was $ 65.4 million ( $ 0.36 per share ) for the third fiscal quarter of 2021 , up from $ 41.9 million ( $ 0.29 per share ) for the second fiscal quarter of 2021. The increase was primarily driven by the first full quarter of interest income earned on the assets acquired in the merger with Oaktree Strategic Income Corporation ( " OCSI " ) ( the " Merger " ) , original issue discount ( " OID " ) accretion that resulted from Merger - related accounting adjustments and higher OID acceleration and prepayment fees resulting from exits of investments . Excluding the Merger - related income accretion , adjusted total investment income was $ 60.4 million ( $ 0.33 per share ) . ● ● GAAP net investment income was $ 35.9 million ( $ 0.20 per share ) for the third fiscal quarter of 2021 , as compared with $ 18.1 million ( $ 0.12 per share ) for the second fiscal quarter of 2021. The increase was primarily driven by higher total investment income and lower accrued Part II incentive fees , offset by higher interest expense and higher base management fees ( net of waivers ) as a result of additional outstanding borrowings and a larger investment portfolio , respectively , following the Merger . Adjusted net investment income was $ 33.7 million ( $ 0.19 per share ) for the third fiscal quarter of 2021 , as compared with $ 21.1 million ( $ 0.14 per share ) for the second fiscal quarter of 2021. The increase was primarily driven by higher adjusted total investment income , offset by higher interest expense and higher base management fees ( net of waivers ) as a result of additional outstanding borrowings and a larger investment portfolio , respectively , following the Merger . Net asset value ( " NAV " ) per share was $ 7.22 as of June 30 , 2021 , up 1.8 % from $ 7.09 as of March 31 , 2021. The increase was primarily driven by realized and unrealized gains on certain debt and equity investments during the quarter and adjusted net investment income earned in excess of the June distribution to stockholders . Originated $ 178.4 million of new investment commitments and received $ 170.6 million of proceeds from prepayments , exits , other paydowns and sales during the quarter ended June 30 , 2021. Of these new investment commitments , 79 % were first lien loans , 14 % were second lien loans and 7 % were subordinated debt investments . The weighted average yield on new debt investments was 9.2 % . No investments were on non - accrual status as of June 30 , 2021 . Total debt outstanding was $ 1,114.1 million as of June 30 , 2021. The total debt to equity ratio was 0.86x , and the net debt to equity ratio was 0.79x , after adjusting for cash and cash equivalents . The Company issued $ 350 million of unsecured notes during the quarter ended June 30 , 2021 that mature on January 15 , 2027 and bear interest at a rate of 2.7 % . In connection with the issuance of the 2027 Notes , the Company entered into an interest rate swap agreement under which the Company receives a fixed interest rate of 2.7 % and pays a floating rate of the three - month LIBOR plus 1.658 % on a notional amount of $ 350 million . Liquidity as of June 30 , 2021 was composed of $ 84.7 million of unrestricted cash and cash equivalents and $ 635.9 million of undrawn capacity under the credit facilities ( subject to borrowing base and other limitations ) . Unfunded investment commitments were $ 288.0 million , or $ 239.0 million excluding unfunded commitments to the Company's joint ventures . Of the $ 239.0 million , approximately $ 166.2 million 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 $ 0.145 per share , up 11.5 % from the prior quarter and the fifth consecutive quarterly distribution increase . The distribution will be paid in cash and is payable on September 30 , 2021 to stockholders of record on September 15 , 2021 . 1