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OAKTREE OCSL | Specialty Lending Corporation Earnings Presentation NASDAQ : OCSL Third Quarter 2026
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Forward Looking Statements & Legal Disclosures Third Quarter 2026 Earnings Presentation NASDAQ: OCSL Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, “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 achievetheir 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, an elevated 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” indicateforward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this presentation 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 “Risk Factors” and elsewhere in our annual report on Form 10-K for the fiscal year ended September 30, 2025 and our quarterly report on Form 10-Q for the quarter ended June 30, 2026. Other factors that could cause actual results to differ materially include: changes or potential disruptions in our operations, the economy, financial markets and political environment, including those caused by tariffs and trade disputes with other countries, inflation and an elevated interest rate environment; risks associated with 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; and other considerations disclosed from time to time in our publicly disseminated documents and filings. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, 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 SEC, including annualreports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Calculation of Assets Under Management References to total "assets under management" or "AUM" represent assets managed by Oaktree, a proportionate amount of the AUMreported by DoubleLine Capital LP ("DoubleLine Capital"), and other minority corporate investments. Oaktree's methodology for calculating AUM includes (i) the net asset value (NAV) of assets managed directly by Oaktree, (ii) the leverage on which management fees are charged, (iii) undrawn capital that Oaktree is entitled to call from investors in Oaktree funds pursuant to their capital commitments, (iv) for collateralized loan obligation vehicles ("CLOs"), the aggregate par value of collateral assets and principal cash, (v) for publicly-traded business development companies, gross assets (including assets acquired with leverage), net of cash, and (vi) Oaktree's pro rata portion (20%) of the AUM reported by DoubleLine Capital and other minority corporate investments. This calculation of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts managed and is not calculated pursuant to regulatory definitions. Unless otherwise indicated, data provided herein are as of June 30, 2026.
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2 Financial Highlights for the Quarter Ended June 30, 2026 1. See appendix for a description of non-GAAP measures. Earnings Summary1 • GAAP net investment income of $0.37 per share and adjusted net investment income of $0.37 per share for the quarter ended June 30, 2026, as compared with $0.39 per share and $0.38 per share, respectively, in the prior quarter • Declared cash distributions of $0.33 per share • Distributions will be payable on September 30, 2026, to stockholders of record as of September 15, 2026 • NAV of $15.70 per share, up slightly compared with $15.69 per share as of March 31, 2026 Portfolio and Investment Activity Update • Portfolio Update • $2.7 billion at fair value across 163 portfolio companies • 9.3% weighted average yield on debt investments • 85% senior secured, including 82% first lien loans • 91% of debt portfolio was floating rate • Non-Accrual Update • Non-accruals as a percentage of debt investments at fair value of 1.8% compared to 2.6% as of March 31, 2026. • Received proceeds of $22 million from non-accrual investments • Investment Activity • $206 million of new investment commitments, with $235 million of new investment fundings • Received $263 million of proceeds from prepayments, exits, other paydowns and sales • 10.0% weighted average yield on new debt investments Liquidity and Capital Structure Update • 1.02x net debt to equity ratio, down from 1.04x in the prior quarter • Below the midpoint of our leverage range of 0.90x to 1.25x • Weighted average interest rate on debt outstanding of 5.9% inclusive of interest rate swaps • Liquidity of $699 million which includes $40 million of cash and $659 million of undrawn capacity on our credit facility
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3 Diverse Portfolio1 Industry Composition1,2 Senior Secured Emphasis Portfolio Summary $2.7 Billion in Total Investments 163 Portfolio Companies 9.3% Weighted Average Yield on Debt Investments Median Portfolio EBITDA of $189 million3 As of June 30, 2026 Note: Numbers may not sum due to rounding. 1. Excludes multi-sector holdings, which is primarily composed of investments in Senior Loan Fund JV I LLC (the “Kemper JV”) and OCSI Glick JV LLC (the “Glick JV”), joint ventures that invest primarily in senior secured loans of middle market companies. 2. Based on GICS industry group classification. 3. Excludes investments in negative EBITDA borrowers, life sciences lending, royalty interest financings, structured products, non-accruals, recurring revenue businesses and other non-EBITDA borrowers. 82% 3% 6% 6% 4% First Lien – $2,235 Second Lien – $82 Unsecured Debt – $163 Joint Ventures – $155 Equity – $108 20% 16% 10% 8%7% 7% 5% 5% 4% 4% 14% Software & Services Health Care Equipment & Services Capital Goods Pharmaceuticals, Biotechnology & Life Sciences Media & Entertainment Commercial & Professional Services Financial Services Consumer Services Food, Beverage & Tobacco Transportation Other (As % of total portfolio at fair value; $ in millions) 18% 18% 64% Top 10 Investments Next 15 Investments Other Top 25 average position size of 1.5%
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4 Note: Numbers may not sum due to rounding. 1. Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments, including the Company's share of the return on debt investments in the Kemper JV and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the mergers of Oaktree Strategic Income Corporation (the “OCSI Merger”) and Oaktree Strategic Income II, Inc. (the “OSI2 Merger”). See appendix for a description of the non-GAAP financial measures. 2. Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments and dividend income, including the Company's share of the return on debt investments in the Kemper JV and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the OCSI Merger and the OSI2 Merger. See appendix for a description of the non-GAAP financial measures. Portfolio Highlights ($ in thousands, at fair value) As of 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Investments at Fair Value $2,741,814 $2,766,367 $2,949,092 $2,847,782 $2,809,377 Number of Portfolio Companies 163 163 167 143 149 Average Portfolio Company Debt Investment Size $17,585 $17,544 $18,068 $20,500 $19,400 Asset Class: First Lien 81.5% 83.7% 84.8% 83.5% 81.1% Second Lien 3.0% 1.8% 1.6% 2.4% 2.3% Unsecured Debt 5.9% 5.2% 3.7% 3.2% 4.9% Equity 3.9% 3.7% 4.4% 5.0% 5.5% Joint Venture Interests 5.6% 5.6% 5.6% 6.0% 6.2% Interest Rate Type for Debt Investments: % Floating-Rate 91.4% 91.0% 91.3% 90.7% 90.9% % Fixed-Rate 8.6% 9.0% 8.7% 9.3% 9.1% Yields: Weighted Average Yield on Debt Investments 1 9.3% 9.3% 9.3% 9.8% 10.1% Cash Component of Weighted Average Yield on Debt Investments 8.2% 8.4% 8.5% 8.9% 9.1% Weighted Average Yield on Total Portfolio Investments2 9.1% 9.0% 9.1% 9.4% 9.6%
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5 New Investment Highlights Historical Funded Originations and Exits 3Q 2026 Investment Activity As of June 30, 2026 Note: Numbers rounded to the nearest million or percentage point and may not sum as a result. 1. New funded investments includes drawdowns on existing delayed draw and revolver commitments. 2. Investment exits includes proceeds from prepayments, exits, other paydowns and sales. 7 new borrowers 10.0% weighted average yield on new debt commitments 100% also held by other Oaktree funds Private Investment Paydowns $220 $314 $199 $235 $177 $179 $334 $263 $0 $100 $200 $300 $400 09/30/2025 12/31/2025 03/31/2026 06/30/2026 ($ in millions) New Funded Investments Investment Exits1 2 Total Commitments $206 ($ in millions) Existing Borrowers $70 New Borrowers $136 $115mm Proceeds $111mm Fair Value at Prior Quarter End 100.4 Average Exit Price 97.0 Average Mark at Prior Quarter End
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6 I n v e s t o r P r e s e n t a 1. Net funded investment activity includes drawdowns on existing revolver commitments. Recent Investment Activity ($ in thousands) As of 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Investments in Oaktree Specialty Lending Corporation New Investment Commitments $206,400 $204,100 $316,600 $208,200 $147,200 Funded $180,100 $166,200 $287,200 $176,600 $108,100 Unfunded $26,300 $37,900 $29,400 $31,600 $39,100 Fundings of Previously Unfunded Commitments $55,400 $32,400 $26,600 $43,800 $35,200 Sales and Repayments ($262,800) ($334,100) ($178,500) ($177,000) ($249,400) Net Funded Investment Activity1 ($27,300) ($135,500) $135,300 $43,400 ($106,100) New Investment Commitments in New Portfolio Companies 7 10 28 9 5 New Investment Commitments in Existing Portfolio Companies 7 5 13 10 6 Portfolio Company Exits 7 15 4 15 8 Weighted Average Yield at Cost on New Debt Investment Commitments 10.0% 9.2% 8.7% 9.7% 9.1%
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7 Recent Investment Activity New Investment Commitment Detail Note: Numbers may not sum due to rounding. Excludes any positions originated, purchased and sold within the same quarter and the assets acquired in the OSI2 Merger. Security Type Market Fiscal Quarter Investment Commitments Number of Deals First LienSecond Lien Unsecured & Other Private Placement Primary (Public) Secondary (Public) Avg. Secondary Purchase Price 2Q2022 $228 25 $163 $17 $48 $162 $26 $40 96% 3Q2022 $132 28 $100 $6 $25 $63 $5 $63 91% 4Q2022 $97 11 $65 -- $32 $71 $22 $4 92% 1Q2023 $250 25 $214 $10 $26 $188 $49 $14 82% 2Q2023 $124 9 $124 -- -- $118 $5 $1 81% 3Q2023 $251 10 $227 $24 $0.2 $224 $20 $7 85% 4Q2023 $87 6 $87 -- -- $76 $12 -- N/A 1Q2024 $370 24 $354 -- $16 $302 -- $68 90% 2Q2024 $396 35 $364 -- $32 $205 $99 $92 98% 3Q2024 $339 20 $302 $3 $34 $256 $58 $24 97% 4Q2024 $259 19 $252 $5 $2 $227 $32 -- N/A 1Q2025 $198 13 $198 -- -- $198 -- -- N/A 2Q2025 $407 32 $357 $11 $39 $230 $60 $117 98% 3Q2025 $147 11 $147 -- -- $147 -- -- N/A 4Q2025 $208 19 $182 $22 $4 $136 $9 $63 95% 1Q2026 $317 41 $290 -- $27 $191 $17 $109 93% 2Q2026 $204 15 $116 $35 $53 $149 $39 $17 98% 3Q2026 $206 14 $138 $32 $37 $188 -- $18 100% ($ in millions)
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8 I n v e s t o r P r e s e n t a Our Approach to Software Investing Software Performance in OCSL1 AI Risk Scorecard Software Portfolio Metrics1,2 As of June 30, 2026. 1. Based on GICS industry group classification. Excludes equity holdings. 2. Based on most recently available financials. Excludes investments in negative EBITDA borrowers, non-accruals, recurring revenue businesses and restructured positions. $517mm Fair Value of Software Portfolio 26 Number of Portfolio Companies 96% First Lien 0.77% ARR Loan at Fair Value 4 Portfolio Companies Electing PIK 1.2% Software PIK as a % of Total Investment Income Portfolio Metrics LTM Median EBITDA $180 million Approximate Median EBITDA Growth (%) Since Deal Inception High Teens Approximate Median EBITDA Margin ~40% Weighted Average LTV 56% Weighted Average Interest Coverage 1.9x Business Resilience Framework Market Position and Scale Mission Criticality Switching Costs Management / Sponsor Readiness Size of Market / Growth Profile Customer ROI / Pricing Network Effect / Ecosystem Financial and Operational Considerations Operating KPIsCapital StructureFinancial Performance Oaktree uses a risk framework to assess portfolio company exposure to AI-related disruption, scoring and categorizing each investment into high, medium and low AI risk categories
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9 I n v e s t o r P r e s e n t a 1. See appendix for a description of the non-GAAP measures. 2. Net of unamortized financing costs. 3. Includes effect of the interest rate swap agreements the Company entered into in connection with the issuance of our unsecured notes. Financial Highlights Operating Results 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 GAAP Net Investment Income per Share $0.37 $0.39 $0.42 $0.41 $0.38 Adjusted Net Investment Income per Share1 $0.37 $0.38 $0.41 $0.40 $0.37 Net Realized and Unrealized Gains (Losses), Net of Taxes per Share ($0.02) ($0.60) ($0.35) ($0.13) $0.06 Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes per Share1 ($0.02) ($0.60) ($0.34) ($0.12) $0.07 Earnings (Loss) per Share $0.35 ($0.21) $0.06 $0.28 $0.44 Adjusted Earnings (Loss) per Share1 $0.34 ($0.22) $0.06 $0.28 $0.43 Quarterly Distributions per Share $0.30 $0.30 $0.40 $0.40 $0.40 Quarterly Supplemental Distributions per Share $0.03 $0.04 -- -- -- Total Quarterly Distributions per Share $0.33 $0.34 $0.40 $0.40 $0.40 NAV per Share $15.70 $15.69 $16.30 $16.64 $16.76 Weighted Average Shares Outstanding 88,086 88,086 88,086 88,086 88,086 Balance Sheet Investment Portfolio (at Fair Value) $2,741,814 $2,766,367 $2,949,092 $2,847,782 $2,809,377 Cash and Cash Equivalents $39,921 $51,261 $80,813 $79,630 $79,799 Total Assets $2,858,192 $2,894,417 $3,098,251 $3,002,991 $2,964,212 Total Debt Outstanding2 $1,438,842 $1,481,650 $1,610,022 $1,486,880 $1,447,551 Net Assets $1,383,055 $1,382,064 $1,436,187 $1,465,813 $1,476,469 Total Debt to Equity Ratio 1.05x 1.08x 1.12x 1.02x 0.99x Net Debt to Equity Ratio 1.02x 1.04x 1.07x 0.97x 0.93x Weighted Average Interest Rate on Debt Outstanding3 5.9% 5.9% 6.1% 6.5% 6.6%
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10 I n v e s t o r P r e s e n t a Net Asset Value Per Share Bridge Note: Numbers may not sum due to rounding. Net asset value per share amounts are based on the shares outstanding at each respective quarter end. Net investment income per share, net unrealized appreciation / (depreciation), and net realized gain / (loss) are based on the weighted average number of shares outstanding for the period. See appendix for a description of the non-GAAP measures. 1. Excludes reclassifications of net unrealized appreciation / (depreciation) to net realized gains / (losses) as a result of investments exited during the quarter. $15.69 $15.70 $0.37 -$0.01 -$0.01 -$0.34 $14.00 $14.50 $15.00 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 3/31/2026 NAV GAAP Net Investment Income Interest Income Accretion Related to Merger Accounting Adjustments Net Unrealized Appreciation / (Depreciation) Net Realized Gain / (Loss) Net Realized & Unrealized Loss Related to Merger Accounting Adjustments Quarterly Distribution 6/30/2026 NAV $0.00 $0.00 Adjusted NII $0.37 Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes ($0.02) 1 1
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11 Capital Structure Overview 0.90x to 1.25x Target Leverage Ratio Investment Grade Rated By Moody’s And Fitch 65% Unsecured Borrowings $699mm Available Liquidity2 Funding Sources Maturities $350 $300 $300 $501 $659 $0 $500 $1,000 $1,500 2026 2027 2028 2029 2030 Unsecured Debt Credit Facility Drawn Credit Facility Undrawn ($ in millions) Diverse and flexible sources of debt capital with ample liquidity As of June 30, 2026 Note: Numbers may not sum due to rounding. 1. The Company entered into an interest rate swap agreement under which the Company receives a fixed interest rate and pays a floating rate based on three-month SOFR plus a spread. 2. Liquidity was composed of $40 million of unrestricted cash and cash equivalents and $659 million of undrawn capacity under the credit facility (subject to borrowing base and other limitations). ($ in millions) Facility Size 6/30/26 Outstanding Interest Rate Maturity Secured Debt Corporate Revolver $1,160 $501 SOFR + 1.875% Apr-30 Secured Debt Subtotal $1,160 $501 Unsecured Debt 2027 Notes $350 $350 2.70% (SOFR + 1.66%)1 Jan-27 2029 Notes $300 $300 7.10% (SOFR + 3.13%)1 Feb-29 2030 Notes $300 $300 6.34% (SOFR + 2.19%)1 Feb-30 Unsecured Debt Subtotal $950 $950 Total Debt $2,110 $1,451
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12 Leverage Utilization Liquidity Overview Funding and Liquidity Metrics Note: Numbers may not sum due to rounding, 1. Excludes unfunded commitments to the Kemper JV and Glick JV. 2. Includes unfunded commitments ineligible to be drawn due to certain limitations in credit agreements. 3. As of June 30, 2026, we have analyzed cash and cash equivalents, availability under our credit facility, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believe our liquidity and capital resources are sufficient to invest in market opportunities as they arise. ($ in millions) $1,495 $1,615 $1,490 $1,451 $615 $495 $620 $659 $2,110 $2,110 $2,110 $2,110 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Total Debt Outstanding Undrawn Capacity Ample liquidity to support funding needs3 ($ in millions) 9/30/25 12/31/25 3/31/26 6/30/26 Cash and Equivalents $80 $81 $51 $40 Net Assets $1,466 $1,436 $1,382 $1,383 Total Leverage 1.02x 1.12x 1.08x 1.05x Net Leverage 0.97x 1.07x 1.04x 1.02x ($ in millions) 9/30/25 12/31/25 3/31/26 6/30/26 Credit Facilities Committed $1,160 $1,160 $1,160 $1,160 Credit Facilities Drawn -$545 -$665 -$540 -$501 Cash and Equivalents $80 $81 $51 $40 Total Liquidity $695 $576 $671 $699 Unfunded Commitments1 -$259 -$247 -$250 -$208 Unavailable Unfunded Commitments2 $12 $0 $0 $0 Adjusted Liquidity $448 $329 $421 $491
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13 As of June 30, 2026 1. Represents OCSL’s 87.5% share of the Kemper JV’s net investment income (excluding subordinated note interest expense) earned during the quarter ended June 30, 2026. 2. Calculated as OCSL’s share of each respective joint venture’s net investment income annualized, divided by the fair value of OCSL’s investments in each joint venture as of March 31, 2026. 3. Represents OCSL’s 87.5% share of the Glick JV’s net investment income (excluding subordinated note interest expense) earned during the quarter ended June 30, 2026. Strategic Joint Ventures are Accretive to Earnings OCSL’s JVs are income-enhancing vehicles that primarily invest in senior secured loans of middle market companies and other corporate debt securities Key Attributes: • Equity ownership: 87.5% OCSL and 12.5% joint venture partner • Shared voting control: 50% OCSL and 50% joint venture partner (At fair value) Glick JV Characteristics (At fair value) Kemper JV Characteristics Investment Portfolio First Lien Portfolio Company Count Wtd. Avg. Debt Portfolio Yield Leverage Ratio $524mm 98% 135 7.3% 2.1x Combined Portfolio Summary $113mm OCSL’s Investments in the Kemper JV 4.1% % of OCSL’s Portfolio $3.3mm Net Investment Income1 11.7% Return on OCSL’s Investment (Annualized) 2 $41mm OCSL’s Investments in the Glick JV 1.5% % of OCSL’s Portfolio $1.1mm Net Investment Income3 10.1% Return on OCSL’s Investment (Annualized) 2
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Appendix
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15 I n v e s t o r P r e s e n t a Note: See appendix for a description of the non-GAAP measures. 1. Includes professional fees, directors fees, administrator expense and general and administrative expenses. Quarterly Statement of Operations ($ in thousands) For the three months ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Investment income Interest income $61,636 $65,253 $66,923 $69,716 $69,390 PIK interest income $5,209 $3,455 $3,848 $4,094 $5,070 Fee income $976 $1,299 $2,972 $2,122 $286 Dividend income $1,612 $378 $1,353 $1,383 $525 GAAP total investment income $69,433 $70,385 $75,096 $77,315 $75,271 Interest income amortization related to merger accounting adjustments ($281) ($641) ($615) ($449) ($974) Adjusted total investment income $69,152 $69,744 $74,481 $76,866 $74,297 Expenses Base management fee $7,046 $7,107 $7,544 $7,309 $7,195 Part I incentive fee $2,373 -- $1,188 $7,103 $5,767 Part II incentive fee -- -- -- -- -- Interest expense $24,139 $25,626 $26,659 $26,031 $31,061 Other operating expenses1 $3,051 $3,286 $2,985 $2,703 $3,070 Total expenses $36,609 $36,019 $38,376 $43,146 $47,093 Management fees waived -- -- -- -- -- Part I incentive fees waived -- -- -- ($1,897) ($5,359) Net expenses $36,609 $36,019 $38,376 $41,249 $41,734 (Provision) benefit for taxes on net investment income ($303) ($4) ($17) ($264) ($56) GAAP net investment income $32,521 $34,362 $36,703 $35,802 $33,481 Less: Interest income accretion related to merger accounting adjustments ($281) ($641) ($615) ($449) ($974) Add: Part II incentive fee -- -- -- -- -- Adjusted net investment income $32,240 $33,721 $36,088 $35,353 $32,507
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16 I n v e s t o r P r e s e n t a Quarterly Statement of Operations (continued) (in thousands, except per share amounts) For the three months ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) $48,210 ($39,339) ($32,418) ($18,164) $18,572 Net realized gains (losses) ($49,539) ($13,610) $1,342 $6,940 ($13,432) (Provision) benefit for taxes on realized and unrealized gains (losses) ($252) ($303) ($19) - ($269) GAAP net realized and unrealized gains (losses), net of taxes ($1,581) ($53,251) ($31,095) ($11,224) $4,871 Net realized and unrealized losses (gains) related to merger accounting adjustments ($477) $559 $710 $375 $859 Adjusted net realized and unrealized gains (losses), net of taxes ($2,058) ($52,692) ($30,385) ($10,849) $5,730 GAAP net increase (decrease) in net assets resulting from operations $30,940 ($18,889) $5,608 $24,578 $38,352 Interest income amortization (accretion) related to merger accounting adjustments ($281) ($641) ($615) ($449) ($974) Net realized and unrealized losses (gains) related to merger accounting adjustments ($477) $559 $710 $375 $859 Adjusted earnings (loss) $30,182 ($18,971) $5,703 $24,504 $38,237 Per share data: GAAP total investment income $0.79 $0.80 $0.85 $0.88 $0.85 Adjusted total investment income $0.79 $0.79 $0.85 $0.87 $0.84 GAAP net investment income $0.37 $0.39 $0.42 $0.41 $0.38 Adjusted net investment income $0.37 $0.38 $0.41 $0.40 $0.37 GAAP net realized and unrealized gains (losses), net of taxes ($0.02) ($0.60) ($0.35) ($0.13) $0.06 Adjusted net realized and unrealized gains (losses), net of taxes ($0.02) ($0.60) ($0.34) ($0.12) $0.07 GAAP net increase/decrease in net assets resulting from operations $0.35 ($0.21) $0.06 $0.28 $0.44 Adjusted earnings (loss) $0.34 ($0.22) $0.06 $0.28 $0.43 Weighted average common shares outstanding 88,086 88,086 88,086 88,086 88,086 Shares outstanding, end of period 88,086 88,086 88,086 88,086 88,086
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17 Strategic Actions In Support of OCSL Oaktree remains committed to the long-term growth and success of OCSL Equity Raise • On February 3, 2025, Oaktree purchased $100 million of newly issued shares of OCSL common stock at a price of $17.63/share equal to net asset value per share on January 31, 2025 • This transaction represented a 10% premium to the closing stock price on January 31, 2025, and resulted in a nearly 7% increase in net assets at the time of share issuance • The equity raise (coupled with additional leverage) increased dry powder for deployment, enabling growth and further diversification of the portfolio Incentive Fee Cap • In the first fiscal quarter of 2025, Oaktree implemented an incentive fee cap (i.e., a total return hurdle). Since the implementation of the incentive fee cap, OCSL has retained $34.3 million in Part I incentive fees that would have otherwise been paid to Oaktree. • This arrangement includes a lookback provision that commences October 1, 2024, building to a rolling 12 quarter lookback by the Company's 2027 fiscal year-end • The incentive fee cap formalized our process and provided clarity
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18 Non-GAAP Disclosures I n v e s t o r P r e s e n t a The OCSI Merger and the OSI2 Merger (the “Mergers”) were accounted for as asset acquisitions in accordance with the asset acq uisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues ("ASC 805"). The consideration paid to each of the stockholders of OCSI and OSI2 we re allocated to the individual assets acquired and liabilities assumed based on the relative fair values of the net identifiable assets acquired other than "non -qualifying" assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was different than the historical cost basis of the acquired inves tments prior to the OCSI Merger or OSI2 Merger, as applicable. Additionally, immediately following the completion of the Mergers, the acquired investments were marked to their res pective fair values under ASC 820, Fair Value Measurements, which resulted in unrealized appreciation / depreciation. The new cost basis established by ASC 805 on debt inv estments acquired will accrete / amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized apprecia tion / depreciation on such investment acquired through its ultimate disposition. The new cost basis established by ASC 805 on equity investments acquired will not accrete / amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized gain / loss with a corresponding reversal of the unrealized appreciation / depreciation on disposition o f such equity investments acquired. The Company’s management uses the non-GAAP financial measures described above internally to analyze and evaluate financial resul ts and performance and to compare its financial results with those of other business development companies that have not adjusted the cost basis of certain investm ents pursuant to ASC 805. The Company’s management believes "Adjusted Total Investment Income", "Adjusted Total Investment Income Per Share", "Adjusted Net Investmen t Income" and "Adjusted Net Investment Income Per Share" are useful to investors as an additional tool to evaluate ongoing results and trends for the Company withou t giving effect to the accretion income resulting from the new cost basis of the investments acquired in the Mergers because these amounts do not impact the fees payable to Oaktree under its fourth amended and restated investment advisory agreement (the “A&R Advisory Agreement”), and specifically as its relates to "Adjusted Net Investment Income" and " Adjusted Net Investment Income Per Share", without giving effect to Part II incentive fees. In addition, the Company’s management believes that “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes”, “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share”, “Adjusted Earnings (Loss)” and “Adjusted Earni ngs (Loss) Per Share” are useful to investors as they exclude the non-cash income/gain resulting from the Mergers and used by management to evaluate the economic earnings of its investment portfolio. Moreover, these metrics align the Company's key financial measures with the calculation of incentive fees payable to Oaktree under with the A &R Advisory Agreement (i.e., excluding amounts resulting solely from the lower cost basis of the acquired investments established by ASC 805 that would have been to the ben efit of Oaktree absent such exclusion).
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