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OAKTREE SPECIALTY LENDING CORPORATION (NASD: OCSL)
Last Trade
4:00 p.m. - 5.76
Change
 0.05 ( 0.86%)
Shares Traded
2,712
Day's Volume
373,629
Book Value
NA
Price/Book
NA
Beta
0.7673
Day's Range
5.74 - 5.8187
Prev Close
5.81
Open
5.80
52 Wk Range
2.33 - 5.82
EPS
0.28
PE
20.57
Quarterly Div/Shr
0.11
Ex-Div
12/14/20
Yield
7.64%
Shares Out.
140.96M
Market Cap.
811.93M
  • 1 Year Stock Performance:

CAGR - Chart the growth of a $10K investment in OCSL

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Wed, 06 Jan 2021
21:05:00 +0000
Oaktree Specialty Lending Corporation Schedules First Fiscal Quarter Earnings Conference Call for February 4, 2021
11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time LOS ANGELES, CA, Jan. 06, 2021 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending” or the “Company”) today announced that it will report its financial results for the first fiscal quarter ended December 31, 2020 before the opening of the Nasdaq Global Select Market on Thursday, February 4, 2021. Management will host a conference call to discuss the results on the same day at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. The conference call may be accessed by dialing (877) 507-3275 (U.S. callers) or +1 (412) 317-5238 (non-U.S. callers). All callers will need to reference “Oaktree Specialty Lending” once connected with the operator. Alternatively, a live webcast of the conference call can be accessed through the Investors section of Oaktree Specialty Lending’s website, www.oaktreespecialtylending.com.For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on Oaktree Specialty Lending’s website, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 10151069, beginning approximately one hour after the broadcast.About Oaktree Specialty Lending CorporationOaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. 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, and preferred equity. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended, and is managed by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending's website at www.oaktreespecialtylending.com.ContactInvestor Relations: Oaktree Specialty Lending Corporation Michael Mosticchio (212) 284-1900 ocsl-ir@oaktreecapital.com
Mon, 14 Dec 2020
17:51:30 +0000
Is OCSL A Good Stock To Buy Now?
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]
Tue, 08 Dec 2020
16:10:06 +0000
Insider Sells Oaktree Specialty Lending Stock
A Form 4 filing filed with the SEC on Tuesday, December 8 showed that *Tannenbaum Leonard M sold 43,203 shares of Oaktree Specialty Lending Inc (NASDAQ:OCSL) at $5.60 on Friday, Dec 04, and sold 15,923 shares at $5.60 on Monday, Dec 07.The transaction moved the executive's stake in Oaktree Specialty Lending Inc. to 16,360,790 shares. Oaktree Specialty Lending was trading 0.2% lower from the previous closing price.Why Insider Transactions Are Important? Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."Transaction Codes To Focus On Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.See more from Benzinga * Click here for options trades from Benzinga * Insider Sells Oaktree Specialty Lending Shares(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 30 Nov 2020
16:56:18 +0000
Insider Sells Oaktree Specialty Lending Shares
A Form 4 filing filed with the SEC on Friday, November 27 showed that Tannenbaum Leonard M sold 169,659 shares of Oaktree Specialty Lending Inc (NASDAQ:OCSL) at $5.48 on Tuesday, Nov 24, and sold 187,962 shares at $5.56 on Wednesday, Nov 25.The transaction moved the executive's stake in Oaktree Specialty Lending Inc. to 16,850,948 shares. Oaktree Specialty Lending was trading 0.4% lower from the previous closing price.The Importance of Insider Transactions While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."Important Transaction Codes Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option. See more from Benzinga * Click here for options trades from Benzinga * Oaktree Specialty Lending: Q4 Earnings Insights * Earnings Scheduled For November 19, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Thu, 19 Nov 2020
22:41:53 +0000
Oaktree Specialty Lending Corporation (OCSL) Q4 2020 Earnings Call Transcript
OCSL earnings call for the period ending September 30, 2020.
Thu, 19 Nov 2020
14:15:00 +0000
Oaktree Specialty Lending Corp. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE / November 19, 2020 / Oaktree Specialty Lending Corp.
Thu, 19 Nov 2020
12:30:12 +0000
Oaktree Specialty Lending (OCSL) Q4 Earnings and Revenues Surpass Estimates
Oaktree Specialty Lending (OCSL) delivered earnings and revenue surprises of 41.67% and 22.75%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?
Thu, 19 Nov 2020
12:10:28 +0000
Oaktree Specialty Lending: Q4 Earnings Insights
Shares of Oaktree Specialty Lending (NASDAQ:OCSL) moved higher by 2.7% in pre-market trading after the company reported Q4 results.Quarterly Results Earnings per share rose 41.67% over the past year to $0.17, which beat the estimate of $0.12.Revenue of $43,599,000 rose by 26.33% from the same period last year, which beat the estimate of $35,840,000.Outlook Oaktree Specialty Lending hasn't issued any earnings guidance for the time being.Oaktree Specialty Lending hasn't issued any revenue guidance for the time being.How To Listen To The Conference Call Date: Nov 19, 2020View more earnings on OCSLTime: 12:30 PMET Webcast URL: https://edge.media-server.com/mmc/p/39kin2odTechnicals 52-week high: $5.6552-week low: $2.33Price action over last quarter: Up 3.29%Company Overview Oaktree Specialty Lending Corp is a specialty finance company. It provides lending services and invests in small and mid-sized companies. Its investment objective is to maximize its portfolio's total return by generating current income from debt investments, and to a lesser extent, capital appreciation from equity investments. Its investments generally range in size from ten million dollars to hundred million dollars and are principally in the form of the first lien, second lien, or collectively, senior secured, and subordinated debt investments, which may also include an equity component made in connection with investments by private equity sponsors.See more from Benzinga * Click here for options trades from Benzinga * Earnings Scheduled For November 19, 2020 * Earnings Preview for Oaktree Specialty Lending(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Thu, 19 Nov 2020
11:00:00 +0000
Oaktree Specialty Lending Corporation Announces Fourth Fiscal Quarter and Full Year 2020 Financial Results and Declares Increased Distribution of $0.11 Per Share
LOS ANGELES, CA, Nov. 19, 2020 (GLOBE NEWSWIRE) -- 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 and year ended September 30, 2020. Financial Highlights for the Quarter and Year Ended September 30, 2020 * Total investment income was $43.6 million ($0.31 per share) and $143.1 million ($1.02 per share) for the fourth fiscal quarter and full fiscal year of 2020, respectively, as compared with $34.4 million ($0.24 per share) and $147.7 million ($1.05 per share) for the third fiscal quarter of 2020 and the full fiscal year of 2019, respectively. The increase in investment income for the quarter was primarily driven by higher make-whole interest income, original issue discount ("OID") acceleration and prepayment fees resulting from exits of investments. The decrease in investment income for the full year was primarily driven by lower LIBOR and lower OID income, partially offset by higher make-whole interest income and prepayment fees resulting from exits of investments, a larger average investment portfolio and higher yields on new originations. * GAAP net investment income was $24.5 million ($0.17 per share) and $72.0 million ($0.51 per share) for the fourth fiscal quarter and full fiscal year of 2020, respectively, as compared with $16.8 million ($0.12 per share) and $67.9 million ($0.48 per share) for the third fiscal quarter of 2020 and the full fiscal year of 2019, respectively. The increase for the quarter was primarily due to higher investment income. The full-year increase was primarily driven by interest expense savings from the issuance of the 2025 Notes and subsequent repayment of the 2024 Notes and 2028 Notes and lower LIBOR, partially offset by lower investment income. * Adjusted net investment income was $24.5 million ($0.17 per share) and $71.6 million ($0.51 per share) for the fourth fiscal quarter and full fiscal year of 2020, respectively, as compared with $16.8 million ($0.12 per share) and $69.0 million ($0.49 per share) for the third fiscal quarter of 2020 and the full fiscal year of 2019, respectively. The increase in adjusted net investment income for the quarter was primarily driven by higher investment income. The increase in adjusted net investment income for the full year was primarily driven by interest expense savings from the issuance of the 2025 Notes and subsequent repayment of the 2024 Notes and 2028 Notes and lower LIBOR, partially offset by lower investment income. * Net asset value ("NAV") per share was $6.49 as of September 30, 2020, up 6% from $6.09 as of June 30, 2020. The increase in NAV for the quarter was primarily attributable to unrealized gains resulting from price increases on liquid debt investments and the impact of tighter credit spreads on private debt investment valuations following the improvement in broader credit market conditions, realized gains on equity investments and undistributed net investment income. NAV was down 2% from $6.60 as of September 30, 2019 primarily due to depreciation of certain debt and equity investments related to increased market volatility resulting from the onset of the COVID-19 pandemic in March 2020, partially offset by undistributed net investment income. * Originated $148.5 million of new investment commitments and received $184.2 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended September 30, 2020. Of these new investment commitments, 83.0% were first lien loans and 16.7% were second lien loans. The weighted average yield on new debt investments was 10.6%. * Total debt outstanding was $714.8 million as of September 30, 2020. The total debt to equity ratio was 0.78x, and the net debt to equity ratio was 0.74x, after adjusting for cash and cash equivalents. * Liquidity as of September 30, 2020 was composed of $39.1 million of unrestricted cash and cash equivalents and $285.2 million of undrawn capacity under the credit facility (subject to borrowing base and other limitations). Unfunded investment commitments were $157.5 million, with approximately $94.0 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 $0.11 per share, a 5% increase from the prior quarter distribution and the second consecutive quarterly distribution increase. The distribution will be paid in cash and is payable on December 31, 2020 to stockholders of record on December 15, 2020. Armen Panossian, Chief Executive Officer and Chief Investment Officer, said, “The fourth quarter completed a strong year for OCSL, highlighted by continued earnings growth and robust portfolio performance in a volatile and challenging investment environment. For the quarter, OCSL delivered $0.17 of net investment income per share, a record under Oaktree’s management, reflecting our ability to deploy capital on attractive terms and complemented by the successful exit of one of our recent opportunistic investments, NuStar Logistics, L.P. We also took advantage of the recent favorable market conditions to sell certain investments at gains, resulting in NAV growth of over 6% during the quarter, and bringing NAV within 2% of its pre-pandemic level as of December 31, 2019. In light of our continued strong performance, the Board of Directors announced a 5% increase to the December dividend to $0.11 per share, the second consecutive quarter with a dividend increase. All told, we believe we are very well-positioned for fiscal year 2021.”Distribution DeclarationThe Board of Directors declared a quarterly distribution of $0.11 per share, an increase of 5%, or $0.005 per share, from the prior quarter, payable on December 31, 2020 to stockholders of record on December 15, 2020.Distributions are paid primarily from distributable (taxable) income. To the extent taxable earnings for a fiscal taxable year fall below the total amount of distributions for that fiscal year, a portion of those distributions may be deemed a return of capital to the Company’s stockholders. Results of Operations  For the three months ended For the year ended ($ in thousands, except per share data) September 30, 2020 (unaudited) June 30, 2020 (unaudited) September 30, 2019 (unaudited) September 30, 2020 September 30, 2019 GAAP operating results:           Interest income $37,153  $30,112  $30,662   $125,568   $133,670  PIK interest income 2,573  2,183  1,187   7,863   5,497  Fee income 3,571  1,827  2,550   8,519   6,710  Dividend income 302  281  114   1,183   1,825  Total investment income 43,599  34,403  34,513   143,133   147,702  Net expenses 19,054  17,633  18,238   71,141   79,793  Net investment income 24,545  16,770  16,275   71,992   67,909  Net realized and unrealized gains (losses), net of taxes 46,072  103,461  (2,304)  (32,768)  58,251  Net increase (decrease) in net assets resulting from operations $70,617  $120,231  $13,971   $39,224   $126,160  Net investment income per common share $0.17  $0.12  $0.12   $0.51   $0.48  Net realized and unrealized gains (losses), net of taxes per common share $0.33  $0.73  $(0.02)  $(0.23)  $0.41  Earnings (loss) per common share — basic and diluted $0.50  $0.85  $0.10   $0.28   $0.89  Non-GAAP Financial Measures1:           Adjusted net investment income $24,545  $16,770  $16,713   $71,635   $69,032  Adjusted net investment income per common share $0.17  $0.12  $0.12   $0.51   $0.49  ______________________ 1 See Non-GAAP Financial Measures — Adjusted Net Investment Income below for a description of this non-GAAP measure and a reconciliation from net investment income to adjusted net investment income, including on a weighted-average per share basis. The Company's management uses this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to capital gains incentive fees. The presentation of adjusted net investment income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.  As of ($ in thousands, except per share data and ratios) September 30, 2020 June 30, 2020 (unaudited) September 30, 2019 Select balance sheet and other data:       Cash and cash equivalents $39,096   $50,728   $15,406   Investment portfolio at fair value 1,573,851   1,561,153   1,438,042   Total debt outstanding (net of unamortized financing costs) 709,315   761,002   473,367   Net assets 914,879   859,063   930,630   Net asset value per share 6.49   6.09   6.60   Total debt to equity ratio 0.78x 0.89x 0.51x Net debt to equity ratio 0.74x 0.83x 0.49x Total investment income for the quarter ended September 30, 2020 was $43.6 million and included $37.2 million of interest income from portfolio investments, $2.6 million of payment-in-kind ("PIK") interest income, $3.6 million of fee income and $0.3 million of dividend income. Total investment income increased by $9.2 million as compared to the quarter ended June 30, 2020, primarily driven by higher make-whole interest income, OID acceleration and prepayment fees resulting from exits of investments.Total investment income for the year ended September 30, 2020 was $143.1 million and included $125.6 million of interest income from portfolio investments, $7.9 million of PIK interest income, $8.5 million of fee income and $1.2 million of dividend income. Total investment income decreased by $4.6 million as compared to the year ended September 30, 2019, primarily driven by lower LIBOR and lower OID income, partially offset by higher make-whole interest income and prepayment fees resulting from exits of investments, a larger average investment portfolio and higher yields on new originations.Net expenses for the quarter totaled $19.1 million, up $1.4 million from the quarter ended June 30, 2020. The increase in net expenses was primarily due to higher incentive fees resulting from higher investment income, partially offset by interest expense savings from lower LIBOR.Net expenses for the year totaled $71.1 million, down $8.7 million from the year ended September 30, 2019. The decrease in net expenses was primarily due to interest expense savings from the issuance of the 2025 Notes in February 2020 and subsequent repayment of the 2024 Notes and 2028 Notes in March 2020 as well as lower LIBOR and lower incentive fees (net of waivers).Adjusted net investment income was $24.5 million ($0.17 per share) for the quarter ended September 30, 2020, up from $16.8 million ($0.12 per share) for the quarter ended June 30, 2020, primarily driven by higher investment income.Adjusted net investment income was $71.6 million ($0.51 per share) for the full fiscal year of 2020, as compared with $69.0 million ($0.49 per share) for the full fiscal year of 2019. The increase in adjusted net investment income for the full year was primarily driven by interest expense savings from the issuance of the 2025 Notes in February 2020 and subsequent repayment of the 2024 Notes and 2028 Notes in March 2020 and lower LIBOR, partially offset by lower investment income.Net realized and unrealized gains, net of taxes, were $46.1 million for the quarter and were primarily attributable to unrealized gains resulting from price increases on liquid debt investments, the impact of tighter credit spreads on private debt investment valuations following the improvement in broader credit market conditions and realized gains on equity investments. Net realized and unrealized losses, net of taxes, were $32.8 million for the year, primarily driven by unrealized depreciation of certain debt and equity investments related to increased market volatility resulting from the onset of the COVID-19 pandemic in March 2020.Portfolio and Investment Activity  As of ($ in thousands) September 30, 2020 (unaudited) June 30, 2020 (unaudited) September 30, 2019 (unaudited) Investments at fair value $1,573,851  $1,561,153  $1,438,042  Number of portfolio companies 113  119  104  Average portfolio company debt size $15,800  $14,600  $15,300          Asset class:       Senior secured debt 84.1% 80.9% 78.6% Unsecured debt 4.2% 7.2% 5.7% Equity 4.1% 4.7% 6.7% SLF JV I 7.5% 7.0% 8.8% Limited partnership interests 0.2% 0.2% 0.2%         Non-accrual debt investments:       Non-accrual investments at fair value $1,571  $2,497  $2,706  Non-accrual investments as a percentage of debt investments 0.1% 0.2% 0.2% Number of investments on non-accrual 2  3  3          Interest rate type:       Percentage floating-rate 88.3% 86.2% 89.8% Percentage fixed-rate 11.7% 13.8% 10.2%         Yields:       Weighted average yield on debt investments1 8.3% 8.1% 8.9% Cash component of weighted average yield on debt investments 7.0% 6.9% 8.1% Weighted average yield on total portfolio investments2 7.8% 7.6% 8.2%         Investment activity:       New investment commitments $148,500  $260,500  $138,400  New funded investment activity3 $146,300  $198,500  $128,500  Proceeds from prepayments, exits, other paydowns and sales $184,200  $127,800  $139,000  Net new investments4 $(37,900) $70,700  $(10,500) Number of new investment commitments in new portfolio companies 8  10  5  Number of new investment commitments in existing portfolio companies 3  8  4  Number of portfolio company exits 12  19  7  ______________________ 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 SLF JV I. 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 SLF JV I. 3 New funded investment activity includes drawdowns on existing revolver and delayed draw term loan commitments. 4 Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales.As of September 30, 2020, the fair value of the investment portfolio was $1.6 billion and was composed of investments in 113 companies. These included debt investments in 88 companies, equity investments in 35 companies, including our limited partnership interests in two private equity funds, and the Company's investment in Senior Loan Fund JV I, LLC (“SLF JV I”). 11 of the equity investments were in companies in which the Company also had a debt investment.As of September 30, 2020, 94.3% of the Company's portfolio at fair value consisted of debt investments, including 62.3% of first lien loans, 21.7% of second lien loans and 10.3% of unsecured debt investments, including the debt investments in SLF JV I. This compared to 61.3% of first lien loans, 19.6% of second lien loans and 13.3% of unsecured debt investments, including the debt investments in SLF JV I at fair value as of June 30, 2020.As of September 30, 2020, there were two investments on non-accrual status, which represented 1.2% of the debt portfolio at cost and 0.1% at fair value. During the quarter ended September 30, 2020, one investment was removed from non-accrual status following a restructuring.The Company's investments in SLF JV I totaled $117.4 million at fair value as of September 30, 2020, up 7% from $110.0 million as of June 30, 2020. The increase in the value of the Company's investments in SLF JV I was primarily driven by SLF JV I’s use of leverage and unrealized appreciation in the underlying investment portfolio resulting from the improvement in broader credit market conditions during the quarter.As of September 30, 2020, SLF JV I had $313.5 million in assets, including senior secured loans to 56 portfolio companies. This compared to $315.4 million in assets, including senior secured loans to 53 portfolio companies, as of June 30, 2020. As of September 30, 2020, one investment held by SLF JV I was on non-accrual status, which represented 0.7% of the SLF JV I portfolio at cost and 0.4% at fair value, respectively. SLF JV I generated income of $1.8 million for the Company during the quarter ended September 30, 2020, down slightly as compared to $2.0 million in the prior quarter. As of September 30, 2020, SLF JV I had $82.1 million of undrawn capacity (subject to borrowing base and other limitations) on its $250 million senior revolving credit facility, and its debt to equity ratio was 1.3x.Liquidity and Capital ResourcesAs of September 30, 2020, the Company had total principal value of debt outstanding of $714.8 million, including $414.8 million of outstanding borrowings under the revolving credit facility and $300.0 million of the 2025 Notes. The funding mix was composed of 58% secured and 42% unsecured borrowings as of September 30, 2020. The Company has no near-term debt maturities, as the next scheduled maturity is for the revolving credit facility in February 2024. The Company was in compliance with all financial covenants under its credit facility as of September 30, 2020.As of September 30, 2020, the Company had $39.1 million of unrestricted cash and cash equivalents and $285.2 million of undrawn capacity on its credit facility (subject to borrowing base and other limitations). Unfunded investment commitments were $157.5 million as of September 30, 2020, with approximately $94.0 million that can be drawn immediately as the remaining amount is subject to certain milestones that must be met by portfolio companies. The Company has 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 take advantage of market opportunities in the current economic climate.As of September 30, 2020, the weighted average interest rate on debt outstanding was 2.7%, unchanged as compared to 2.7% as of June 30, 2020.The Company’s total debt to equity ratio was 0.78x and 0.89x as of September 30, 2020 and June 30, 2020, respectively. Net debt to equity ratio was 0.74x and 0.83x as of September 30, 2020 and June 30, 2020, respectively.Recent DevelopmentsMerger AgreementOn October 28, 2020, the Company entered into an agreement to merge with Oaktree Strategic Income Corporation (“OCSI”), an affiliated business development company managed by Oaktree Fund Advisors, LLC, with the Company as the surviving company. Under the terms of the proposed merger, OCSI shareholders will receive an amount of shares of the Company's common stock with a NAV equal to the NAV of shares of OCSI common stock that they hold at the time of closing. The transaction is subject to approval by OCSI and the Company's stockholders and other customary closing conditions. Assuming these conditions are satisfied, the transaction is expected to close in the first calendar quarter of 2021.Management Fee WaiverIn connection with entry into the merger agreement described above, Oaktree has agreed to waive $750,000 of base management fees payable to it under the Investment Advisory Agreement in each of the eight quarters immediately following the closing of the transaction (for an aggregate waiver of $6.0 million of base management fees).Upsize of Credit FacilityOn October 28, 2020, the Company entered into an incremental commitment and assumption agreement in connection with the Company’s exercise of $75 million of the accordion feature under its credit facility, increasing the size of the credit facility to $775 million.Non-GAAP Financial MeasuresAdjusted Net Investment IncomeOn a supplemental basis, the Company is disclosing adjusted net investment income and per share adjusted net investment income, each of which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP (“non-GAAP”). Adjusted net investment income represents net investment income, excluding capital gains incentive fees ("Part II incentive fee"). The Company's management uses this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to capital gains incentive fees. The Company’s investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized capital depreciation on a cumulative basis. Refer to Note 11 – Related Party Transactions in our Annual Report on Form 10-K for further discussion. The Company believes that adjusted net investment income is a useful performance measure because it reflects the net investment income produced on the Company's investments during a period without giving effect to any changes in the value of such investments and any related capital gains incentive fees between periods. The presentation of adjusted net investment income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to adjusted net investment income for the periods presented:  For the three months ended For the year ended   September 30, 2020 (unaudited) June 30, 2020 (unaudited) September 30, 2019 (unaudited) September 30, 2020 September 30, 2019 ($ in thousands, except per share data) Amount Per Share Amount Per Share Amount Per Share Amount Per Share Amount Per Share GAAP net investment income $24,545  $0.17  $16,770  $0.12  $16,275  $0.12  $71,992   $0.51  $67,909  $0.48  Part II incentive fee (net of waivers) —  —  —  —  438  —  (357)  —  1,123  0.01  Adjusted net investment income $24,545  $0.17  $16,770  $0.12  $16,713  $0.12  $71,635   $0.51  $69,032  $0.49  Conference Call InformationOaktree Specialty Lending will host a conference call to discuss its fourth fiscal quarter and full year 2020 results at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on November 19, 2020. The conference call may be accessed by dialing (877) 507-3275 (U.S. callers) or +1 (412) 317-5238 (non-U.S. callers), participant password “Oaktree Specialty Lending.” Alternatively, a live webcast of the conference call can be accessed on Oaktree Specialty Lending’s website, www.oaktreespecialtylending.com. During the conference call, the Company intends to refer to an investor presentation that will be available on its website.For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on Oaktree Specialty Lending’s website, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 10148621, beginning approximately one hour after the broadcast.About Oaktree Specialty Lending CorporationOaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. 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, and preferred equity. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended, and is externally managed by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending's website at www.oaktreespecialtylending.com.Forward-Looking Statements Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition or the two-step merger of OCSI with and into the Company (the “Mergers”). The forward-looking statements may include statements as to: future operating results of OCSI and the Company and distribution projections; business prospects of OCSI and the Company and the prospects of their portfolio companies; and the impact of the investments that OCSI and the Company expect to make. 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 press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the timing or likelihood of the Mergers closing; (ii) the expected synergies and savings associated with the Mergers; (iii) the ability to realize the anticipated benefits of the Mergers, including the expected elimination of certain expenses and costs due to the Mergers; (iv) the percentage of OCSI and the Company’s stockholders voting in favor of the proposals submitted for their approval; (v) the possibility that competing offers or acquisition proposals will be made; (vi) the possibility that any or all of the various conditions to the consummation of the Mergers may not be satisfied or waived; (vii) risks related to diverting management’s attention from ongoing business operations; (viii) the risk that stockholder litigation in connection with the Mergers may result in significant costs of defense and liability; (ix) changes in the economy, financial markets and political environment, (x) risks associated with possible disruption in the operations of OCSI and the Company or the economy generally due to terrorism, natural disasters or the COVID-19 pandemic; (xi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (xii) conditions in OCSI’s and the Company’s operating areas, particularly with respect to business development companies or regulated investment companies; (xiii) general considerations associated with the COVID-19 pandemic; and (xiv) other considerations that may be disclosed from time to time in OCSI’s and the Company’s publicly disseminated documents and filings. OCSI and the Company have based the forward-looking statements included in this press release on information available to them on the date of this press release, and they assume no obligation to update any such forward-looking statements. Although OCSI and the Company 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 they may make directly to you or through reports that OCSI and the Company in the future may file with the Securities and Exchange Commission, including a registration statement on Form N-14 that the Company will file in connection with the Mergers, a joint proxy statement on Schedule 14A that the OCSI and the Company will file in connection with the Mergers, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.ContactsInvestor Relations: Oaktree Specialty Lending Corporation Michael Mosticchio (212) 284-1900 ocsl-ir@oaktreecapital.com Media Relations: Financial Profiles, Inc. Moira Conlon (310) 478-2700 mediainquiries@oaktreecapital.com Oaktree Specialty Lending Corporation Consolidated Statements of Assets and Liabilities (in thousands, except per share amounts) September 30, 2020 June 30, 2020 (unaudited) September 30, 2019 ASSETS      Investments at fair value:      Control investments (cost September 30, 2020: $245,950; cost June 30, 2020: $255,481; cost September 30, 2019: $224,255)$201,385    $200,799    $209,178    Affiliate investments (cost September 30, 2020: $7,551; cost June 30, 2020: $8,367; cost September 30, 2019: $8,449)6,509    7,249    9,170    Non-control/Non-affiliate investments (cost September 30, 2020: $1,415,669; cost June 30, 2020: $1,432,729; cost September 30, 2019: $1,280,310)1,365,957    1,353,105    1,219,694    Total investments at fair value (cost September 30, 2020: $1,669,170; cost June 30, 2020: $1,696,577; cost September 30, 2019: $1,513,014)1,573,851    1,561,153    1,438,042    Cash and cash equivalents39,096    50,728    15,406    Interest, dividends and fees receivable6,935    8,768    11,167    Due from portfolio companies2,725    2,719    2,616    Receivables from unsettled transactions9,123    14,106    4,586    Deferred financing costs5,947    6,383    6,396    Deferred offering costs67    67    —    Deferred tax asset, net847    766    —    Derivative assets at fair value223    870    490    Other assets1,898    2,007    2,335    Total assets$1,640,712    $1,647,567    $1,481,038           LIABILITIES AND NET ASSETS      Liabilities:      Accounts payable, accrued expenses and other liabilities$1,072    $903    $1,589    Base management fee and incentive fee payable11,212    12,989    10,167    Due to affiliate2,130    2,213    2,689    Interest payable1,626    4,225    2,296    Payables from unsettled transactions478    7,172    59,596    Deferred tax liability—    —    704    Credit facility payable414,825    466,825    314,825    Unsecured notes payable (net of $3,272, $3,457 and $2,708 of unamortized financing costs as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively)294,490    294,177    158,542    Total liabilities725,833    788,504    550,408    Commitments and contingencies       Net assets:      Common stock, $0.01 par value per share, 250,000 shares authorized; 140,961 shares issued and outstanding as of September 30, 2020, June 30, 2020 and September 30, 20191,409    1,409    1,409    Additional paid-in-capital1,487,774    1,487,774    1,487,774    Accumulated overdistributed earnings(574,304)  (630,120)  (558,553)  Total net assets (equivalent to $6.49, $6.09 and $6.60 per common share as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively)914,879    859,063    930,630    Total liabilities and net assets$1,640,712    $1,647,567    $1,481,038    Oaktree Specialty Lending Corporation Consolidated Statements of Operations (in thousands, except per share amounts) Three months ended September 30, 2020 (unaudited) Three months ended June 30, 2020 (unaudited) Three months ended September 30, 2019 (unaudited) Year ended September 30, 2020 Year ended September 30, 2019 Interest income:          Control investments$2,330   $2,558   $2,836   $9,832   $11,886   Affiliate investments88   127   101   467   206   Non-control/Non-affiliate investments34,733   27,406   27,640   114,947   120,888   Interest on cash and cash equivalents2   21   85   322   690   Total interest income37,153   30,112   30,662   125,568   133,670   PIK interest income:          Control investments—   —   —   —   67   Non-control/Non-affiliate investments2,573   2,183   1,187   7,863   5,430   Total PIK interest income2,573   2,183   1,187   7,863   5,497   Fee income:          Control investments15   13   6   42   25   Affiliate investments5   5   5   20   19   Non-control/Non-affiliate investments3,551   1,809   2,539   8,457   6,666   Total fee income3,571   1,827   2,550   8,519   6,710   Dividend income:          Control investments299   281   114   1,180   1,825   Non-control/Non-affiliate investments3   —   —   3   —   Total dividend income302   281   114   1,183   1,825   Total investment income43,599   34,403   34,513   143,133   147,702   Expenses:          Base management fee6,005   5,988   5,496   22,895   22,343   Part I incentive fee5,206   3,556   3,545   15,194   14,873   Part II incentive fee—   —   (403)  (5,557)  10,194   Professional fees678   545   720   2,532   2,906   Directors fees142   143   142   570   570   Interest expense6,133   6,406   6,960   26,289   32,426   Administrator expense330   373   388   1,524   1,941   General and administrative expenses560   622   549   2,494   2,530   Total expenses19,054   17,633   17,397   65,941   87,783   Reversal of fees waived / (fees waived)—   —   841   5,200   (7,990)  Net expenses19,054   17,633   18,238   71,141   79,793   Net investment income24,545   16,770   16,275   71,992   67,909   Unrealized appreciation (depreciation):          Control investments10,117   13,790   52   (29,488)  1,519   Affiliate investments76   (45)  (179)  (1,763)  (360)  Non-control/Non-affiliate investments29,922   87,225   2,621   10,904   39,689   Secured borrowings—   —   (2,624)  —   (2,719)  Foreign currency forward contracts(647)  (398)  695   (267)  328   Net unrealized appreciation (depreciation) 39,468   100,572   565   (20,614)  38,457   Realized gains (losses):           Control investments(4,932)  —   —   (4,155)  —   Non-control/Non-affiliate investments13,502   2,821   (6,248)  (4,615)  15,300   Extinguishment of unsecured notes payable—   —   —   (2,541)  —   Secured borrowings—   —   2,625   —   2,625   Foreign currency forward contracts(2,123)  —   1,097   (2,613)  2,880   Net realized gains (losses)6,447   2,821   (2,526)  (13,924)  20,805   Provision for income tax (expense) benefit157   68   (343)  1,770   (1,011)  Net realized and unrealized gains (losses), net of taxes46,072   103,461   (2,304)  (32,768)  58,251   Net increase (decrease) in net assets resulting from operations$70,617   $120,231   $13,971   $39,224   $126,160   Net investment income per common share — basic and diluted$0.17   $0.12   $0.12   $0.51   $0.48   Earnings (loss) per common share — basic and diluted$0.50   $0.85   $0.10   $0.28   $0.89   Weighted average common shares outstanding — basic and diluted140,961   140,961   140,961   140,961   140,961
Wed, 18 Nov 2020
15:06:43 +0000
Earnings Preview for Oaktree Specialty Lending
Oaktree Specialty Lending (NASDAQ: OCSL) releases its next round of earnings this Thursday, November 19. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.Net Income, Earnings, And Earnings Per Share Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.Earnings And Revenue Wall Street analysts see Oaktree Specialty Lending reporting earnings of $0.12 per share on sales of $35.84 million. Oaktree Specialty Lending reported a profit of $0.12 per share when it published results during the same quarter last year. Sales in that period totaled $34.51 million.What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter? Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.View more earnings on OCSLThe analyst consensus estimate would represent 0% change in company's EPS figure. Revenue would be up 3.84% from the same quarter last year. Here is how the Oaktree Specialty Lending's reported EPS has stacked up against analyst estimates in the past:Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019 EPS Estimate 0.11 0.10 0.12 0.12 EPS Actual 0.12 0.12 0.10 0.12 Revenue Estimate 33.65 M 31.97 M 34.34 M 35.97 M Revenue Actual 34.40 M 34.17 M 30.96 M 34.51 M Stock Performance Shares of Oaktree Specialty Lending were trading at $5.2 as of November 17. Over the last 52-week period, shares are down 0.57%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.Do not be surprised to see the stock move on comments made during its conference call. Oaktree Specialty Lending is scheduled to hold the call at 12:30:00 ET and can be accessed here.See more from Benzinga * Click here for options trades from Benzinga * Earnings Preview for Delta Apparel * Earnings Preview: Brady(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Thu, 12 Nov 2020
17:30:05 +0000
Oaktree Specialty Lending (OCSL) Reports Next Week: What You Should Expect
Oaktree Specialty Lending (OCSL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Tue, 10 Nov 2020
17:42:06 +0000
Oaktree Specialty Lending Corporation -- Moody's: Oaktree Specialty Lending Corporation's ratings (Baa3 senior unsecured) unaffected by planned acquisition of affiliate
Moody's Investors Service (Moody's) has said that the Baa3 long-term issuer and senior unsecured debt ratings of Oaktree Specialty Lending Corporation (OCSL) are unaffected by the company's agreement to acquire its smaller business development company (BDC) affiliate, Oaktree Strategic Income Corporation (OCSI), in an all-stock transaction. Both BDCs are externally managed by Oaktree Capital Management, L.P. (Oaktree), a global investment management firm. OCSL's outlook is negative.
Thu, 29 Oct 2020
10:00:00 +0000
Oaktree Specialty Lending Corporation and Oaktree Strategic Income Corporation Announce Entry into Merger Agreement
LOS ANGELES, CA, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“OCSL”) and Oaktree Strategic Income Corporation (NASDAQ:OCSI) (“OCSI”) today announced that they have entered into an agreement to merge together with OCSL as the surviving company, subject to stockholder approval and customary closing conditions. The Boards of Directors of both OCSL and OCSI, on the recommendation of separate special committees consisting only of certain independent directors, have unanimously approved the transaction. Under the terms of the proposed merger, OCSI shareholders will receive an amount of OCSL shares with a net asset value (“NAV”) equal to the NAV of OCSI shares that they hold at the time of closing. The exchange ratio will be determined at closing such that shares issued by OCSL to OCSI shareholders will result in an ownership split of the combined company based on the respective NAVs of each of OCSL and OCSI. For illustrative purposes, based on June 30, 2020 net asset values and excluding transaction costs and other tax-related distributions, OCSL would issue approximately 1.39 shares for each OCSI share outstanding, resulting in pro forma ownership of 77.5% for current OCSL stockholders and 22.5% for current OCSI stockholders.In support of the transaction, Oaktree Fund Advisors, LLC (“Oaktree”) has agreed to waive a total of $6 million of management fees for two years following the closing of the merger. This will equate to fee waivers of $0.75 million per quarter for each of the eight quarters after the closing of the transaction.Armen Panossian, Chief Executive Officer and Chief Investment Officer of OCSL and OCSI, said, “Since taking over management of OCSL and OCSI three years ago, we have made significant progress in reshaping the portfolios by reducing non-core and underperforming positions and investing in opportunities that align with Oaktree’s value-driven investment style. Our announcement today represents the next step in our plan to further drive stockholder value, and we look forward to leveraging the benefits provided by the larger company with greater scale, portfolio diversity and financial flexibility.”Matt Pendo, President and Chief Operating Officer of OCSL and OCSI, said, “We are thrilled to announce this merger. We believe this transaction will provide many immediate and long-term benefits to both companies and position us to continue to deliver strong risk-adjusted returns and investment performance to both groups of shareholders.”Key Transaction Highlights * The merger is expected to be accretive to the net investment income of the combined company, reflecting anticipated operational synergies through the elimination of duplicative expenses, interest expense savings resulting from a streamlined capital structure, the two-year base management fee waiver and the rotation of OCSI’s lower yielding portfolio into higher-yielding investments. * The larger market capitalization following completion of the merger may result in greater secondary market trading liquidity and broader equity research coverage. * The combination of two known portfolios – including over 50% of OCSI’s investments that overlap with those of OCSL – will help to facilitate a seamless portfolio integration. * The combined portfolio will result in greater diversification through larger portfolio size and more individual borrowers. * The combined company is expected to have improved access to more diverse, lower cost sources of debt capital and may provide the combined company with a better opportunity for further debt optimization. * The combined company would have had over $2 billion of assets invested in 148 portfolio companies as of June 30, 2020. The combined investment portfolio would have been composed of 83% senior secured loans, 5% unsecured debt, 4% equity and 8% in joint venture interests. Investments on non-accrual would have been low at 0.2% of the combined portfolio at fair value¹. The merger would have reduced the concentration of top ten investments to 20.7%, down from 23.3% and 24.5% of OCSL and OCSI, respectively. * Prior to the anticipated closing in the second fiscal quarter of 2021, the OCSL and OCSI Boards of Directors intend to declare and pay the ordinary course quarterly distributions that would have otherwise been paid on or about March 31, 2021. Additionally, the OCSI Board of Directors intends to declare a special distribution that will represent any previously undistributed taxable income. This distribution will help ensure that OCSI maintains its RIC status and avoids paying excise tax. The combined company will continue to be externally managed by Oaktree and all current OCSL officers and directors will remain in their current positions. The combined company will trade under the ticker symbol “OCSL” on the Nasdaq Global Select Market.The transaction, which is intended to be treated as a tax-free reorganization, is subject to approval by OCSL and OCSI stockholders and other customary closing conditions. Assuming these conditions are satisfied, the transaction is expected to close in the second fiscal quarter of 2021.Keefe, Bruyette & Woods, a Stifel Company, served as financial advisor and Stradley Ronon Stevens & Young, LLP serves as the legal counsel to the special committee of OCSL. Houlihan Lokey Capital, Inc. served as financial advisor and Dechert LLP serves as the legal counsel to the special committee of OCSI. Proskauer Rose LLP serves as the legal counsel to OCSL, OCSI and Oaktree.Conference CallOaktree will host a conference call to discuss this transaction today, October 29, 2020, at 12:00 p.m. Eastern Time / 9:00 a.m. Pacific Time. The conference call may be accessed by dialing (877) 507-3275 (U.S. callers) or +1 (412) 317-5238 (non-U.S. callers). All callers will need to reference “Oaktree” once connected with the operator. Alternatively, a live webcast of the conference call can be accessed through the Investors sections of OCSL’s and OCSI’s websites, www.oaktreespecialtylending.com and www.oaktreestrategicincome.com.A presentation containing a discussion of this transaction will be referenced on the conference call and has been posted to the Investors sections of OCSL’s and OCSI’s websites and filed with the Securities and Exchange Commission (the “SEC”).For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on OCSL’s and OCSI’s websites, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 10149373, beginning approximately one hour after the broadcast.About Oaktree Specialty Lending CorporationOaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. OCSL’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, and preferred equity. OCSL is regulated as a business development company under the Investment Company Act of 1940, as amended, and is managed by Oaktree, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit OCSL’s website at www.oaktreespecialtylending.com.About Oaktree Strategic Income CorporationOaktree Strategic Income Corporation (NASDAQ:OCSI) is a specialty finance company dedicated to providing customized capital solutions for middle-market companies in both the syndicated and private placement markets. OCSI’s investment objective is to generate a stable source of current income while minimizing the risk of principal loss and, to a lesser extent, capital appreciation by providing innovative first-lien financing solutions to companies across a wide variety of industries. OCSI is regulated as a business development company under the Investment Company Act of 1940, as amended, and is managed by Oaktree, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit OCSI’s website at www.oaktreestrategicincome.com.Forward-Looking StatementsSome of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition or the two-step merger of OCSI with and into OCSL (the “Mergers”). The forward-looking statements may include statements as to: future operating results of OCSI and OCSL and distribution projections; business prospects of OCSI and OCSL and the prospects of their portfolio companies; and the impact of the investments that OCSI and OCSL expect to make. 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 press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the timing or likelihood of the Mergers closing; (ii) the expected synergies and savings associated with the Mergers; (iii) the ability to realize the anticipated benefits of the Mergers, including the expected elimination of certain expenses and costs due to the Mergers; (iv) the percentage of OCSI and OCSL stockholders voting in favor of the proposals submitted for their approval; (v) the possibility that competing offers or acquisition proposals will be made; (vi) the possibility that any or all of the various conditions to the consummation of the Mergers may not be satisfied or waived; (vii) risks related to diverting management’s attention from ongoing business operations; (viii) the risk that stockholder litigation in connection with the Mergers may result in significant costs of defense and liability; (ix) changes in the economy, financial markets and political environment, (x) risks associated with possible disruption in the operations of OCSI and OCSL or the economy generally due to terrorism, natural disasters or the COVID-19 pandemic; (xi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (xii) conditions in OCSI’s and OCSL’s operating areas, particularly with respect to business development companies or regulated investment companies; (xiii) general considerations associated with the COVID-19 pandemic; and (xiv) other considerations that may be disclosed from time to time in OCSI’s and OCSL’s publicly disseminated documents and filings. OCSI and OCSL have based the forward-looking statements included in this presentation on information available to them on the date of this presentation, and they assume no obligation to update any such forward-looking statements. Although OCSI and OCSL 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 they may make directly to you or through reports that OCSI and OCSL in the future may file with the SEC, including the Joint Proxy Statement and the Registration Statement (each as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.Additional Information and Where to Find ItIn connection with the Mergers, OCSI and OCSL plan to file with the SEC and mail to their respective stockholders a joint proxy statement on Schedule 14A (the “Joint Proxy Statement”), and OCSL plans to file with the SEC a registration statement on Form N-14 (the “Registration Statement”) that will include the Joint Proxy Statement and a prospectus of OCSL. The Joint Proxy Statement and the Registration Statement will each contain important information about OCSI, OCSL, the Mergers and related matters. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. STOCKHOLDERS OF OCSI AND OCSL ARE URGED TO READ THE JOINT PROXY STATEMENT AND REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT OCSI, OCSL, THE MERGERS AND RELATED MATTERS. Investors and security holders will be able to obtain the documents filed with the SEC free of charge at the SEC’s website, http://www.sec.gov or, for documents filed by OCSI, from OCSI’s website at http://www.oaktreestrategicincome.com and, for documents filed by OCSL, from OCSL’s website at http://www.oaktreespecialtylending.com.Participants in the SolicitationOCSI, its directors, certain of its executive officers and certain employees and officers of Oaktree and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Mergers. Information about the directors and executive officers of OCSI is set forth in its proxy statement for its 2020 Annual Meeting of Stockholders, which was filed with the SEC on January 13, 2020. OCSL, its directors, certain of its executive officers and certain employees and officers of Oaktree and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Mergers. Information about the directors and executive officers of OCSL is set forth in its proxy statement for its 2020 Annual Meeting of Stockholders, which was filed with the SEC on January 13, 2020. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the OCSI and OCSL stockholders in connection with the Mergers will be contained in the Joint Proxy Statement when such document becomes available. These documents may be obtained free of charge from the sources indicated above.No Offer or SolicitationThis press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this press release is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in OCSI, OCSL or in any fund or other investment vehicle managed by Oaktree or any of its affiliates.ContactsInvestor Relations: Michael Mosticchio (212) 284-7869 mmosticchio@oaktreecapital.com Media Relations: Financial Profiles, Inc. Moira Conlon (310) 478-2700 mediainquiries@oaktreecapital.com____________________________________¹ Excludes OCSI’s investment in OCSI Glick JV LLC.
Tue, 06 Oct 2020
20:05:00 +0000
Oaktree Specialty Lending Corporation Schedules Fourth Fiscal Quarter and Full Year 2020 Earnings Conference Call for November 19, 2020
11:00 a.m. Eastern Time / 8:00 a.m. Pacific TimeLOS ANGELES, CA, Oct. 06, 2020 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending” or the “Company”) today announced that it will report its financial results for the fourth fiscal quarter and full year ended September 30, 2020 before the opening of the Nasdaq Global Select Market on Thursday, November 19, 2020. Management will host a conference call to discuss the results on the same day at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. The conference call may be accessed by dialing (877) 507-3275 (U.S. callers) or +1 (412) 317-5238 (non-U.S. callers). All callers will need to reference “Oaktree Specialty Lending” once connected with the operator. Alternatively, a live webcast of the conference call can be accessed through the Investors section of Oaktree Specialty Lending’s website, www.oaktreespecialtylending.com.For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on Oaktree Specialty Lending’s website, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 10148621, beginning approximately one hour after the broadcast.About Oaktree Specialty Lending CorporationOaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. 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, and preferred equity. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended, and is managed by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending's website at www.oaktreespecialtylending.com.ContactInvestor Relations: Oaktree Specialty Lending Corporation Michael Mosticchio (212) 284-1900 ocsl-ir@oaktreecapital.com
Fri, 18 Sep 2020
13:56:41 +0000
3 Big Dividend Stocks Yielding Over 8%; JMP Says ‘Buy’
From the end of March through the end of August, stocks had a tremendous runup to record high levels. The gains completely wiped out the losses from the mid-winter ‘coronavirus collapse,’ and it looked like we were in for a sustained run of good days. But all of that changed as September rang in. The market hit a bump, and has been undergoing a correction. The Nasdaq is down nearly 7%, and volatility has been high so far this month.A new report from Canaccord's Tony Dwyer puts the situation into perspective by pointing out the major source of uncertainty: “In a true statement of the obvious,” he writes, “this is the most complicated election-year setup we could possibly have.” He goes on to note the four most important ‘unknown’ factors: how the voting will actually happen this year, and avoiding vote fraud; who will win the White House; if the Democrats will sweep the Federal level elections; and, if the loser will concede the contest without a dragged-out legal battle. These are points giving investors ulcers at night.Dwyer balances all of that with the predictable factor: “Unlike the political backdrop, which is totally unpredictable, we know the Fed intends to keep rates at zero and to keep intervening when there are any signs of stress.” An active central bank will continue injecting liquidity into the system, which will be bullish for stocks. In Dwyer’s view, the only question is, what tools will the Fed use?So, in a situation that recalls Donald Rumsfeld’s ‘unknown unknowns,’ many investors are gravitating toward defensive stocks, taking steps to ensure a steady income stream. And this brings them, quite naturally, to dividend stocks. These traditional defensive plays may not offer the high share appreciation that is so attractive in normal times, but their high-yielding dividends make up for that when things turn sideways.With this in mind, analysts from JMP Securities have tapped three such defensive stocks, with dividend yields range from 8.5% to more than 12%. We’ve run the three through the TipRanks database to find out what makes them so compelling. Here are the results. BlackRock TCP Capital (TCPC)The first stock on our list is a financial company. BlackRock TCP Capital is a specialty finance company with a clear focus on mid-market lending. Since 1999, BlackRock has worked on originating and investing in debt securities, and has made a total of $20.1 billion in financing loans to more than 500 companies over the years. A plurality (over 34%) of the company’s investments are in the software and financial services fields, but BlackRock’s portfolio, current valued at $1.6 billion, spans a diverse field of targets.The company’s investments are profitable; as of the end of Q2 this year, the average annual return was 9.8%. That income provides earnings that regularly beat the forecasts. As the recessionary pressures began to ease, Q2 earnings came in at 36 cents per share, or 20% higher than expected.BlackRock uses these earnings to fund its dividend, which has been paid out regularly for more than 3 years. In a nod to the coronavirus crisis, the payment was cut from 36 cents to 30 cents – but at that level, BlackRock returns almost all of its earnings to company shareholders. The dividend yield is 12.1%, more than 6x higher than the average yield found among S&P listed companies – and more than 12x higher than the yield on US Treasury bonds in these days of near-zero interest rates. JMP analyst Christopher York is cautiously bullish on TCPC, and one of the reasons he cites is the company’s solid cash position."The company has cash of ~$20.6mln and ~$328mln in availability on revolvers, which is more than enough to support any draw of unfunded commitments of $46.0mln. We think the liquidity at the company is very strong and think the resources at the advisor are superior to many BDCs, which we expect to lead to good longer-term restructuring and recovery outcomes,” York noted. York rates this stock an Outperform (i.e. Buy) and his $11 price target implies room for 13% share price growth in the coming year. (To watch York’s track record, click here)Overall, the analyst consensus rating here is a Moderate Buy, based on 3 Buys and 2 Holds. Shares are selling for $9.76 and the average price target matches York’s, at $11. (See BlackRock stock analysis on TipRanks)PennyMac Mortgage (PMT)Next up is another financial stock, PennyMac Mortgage. This company is a mortgage investment trust, a sub-niche of the real estate investment trust industry that provides somewhat more liquidity by investing primarily in mortgage backed securities rather than directly in real properties.During the corona crisis of 1H20, PMT saw earnings turn negative in Q1 and return to positive territory in Q2. The numbers were -$5.99 EPS in the first quarter, and $4.51 in the second. Revenues followed a similar pattern, with the Q2 top line hitting $475 million.The company adjusted its mortgage payments in the first half to account for the earnings volatility. PMT paid out 25 cents per common share in Q1, just slightly more than half of the long-held dividend of 47 cents. In Q2, management started raising the dividend, and paid out 40 cents per common share, which gives a yield 9.1%.Trevor Cranston wrote the review of this stock for JMP, and sees the company with a path forward as the pandemic effects wane. “[Our] outlook on MSRs has improved somewhat in the past few months as the expected negative COVID-19-related impact has subsided, and we continue to believe strength in the correspondent lending business is likely to more than offset any weakness in MSR results due to strong tailwinds for origination volumes, even as conventional margins have returned to more normalized levels," Cranston opined. “As a result, believe PMT shares should trade at a premium to the hybrid REIT peer group as many peers sold significant volumes of credit assets in late 1Q and early 2Q, resulting in less book value recovery potential.”Along with these comments, he gives the stock a $19 price target, implying room for 9% upside growth. Cranston’s rating on the stock is Outperform, (i.e. Buy). (To watch Cranston’s track record, click here)Overall, PMT holds a Moderate Buy analyst consensus rating based on 5 recent Buys and 2 Holds. The stock has an average price target of $19.40, slightly higher than Cranston’s, and indicative of a 11% upside potential. (See PMT stock analysis on TipRanks)Oaktree Specialty Lending (OCSL)Last up on this list, Oaktree, is another specialty finance company. Oaktree provides loans and credit access for small- to mid-size companies that cannot gain entry to traditional sources of capital. Oaktree’s portfolio is modestly diverse, with $1.4 billion invested in 128 companies. Most of this is first lien debt, 62%, while some 20% is made up of second lien. Oaktree reported last month on its FYQ3 results, and the results were solid. EPS came in at 12 cents, against a forecast of 11 cents, for a 9% beat. Revenue for the fiscal third quarter was $34.4 million, even with forecast and down slightly yoy.The earnings results suggest that the company is emerging from the corona crises intact, a thesis supported by management’s decision to raise the quarterly dividend. They have not raised the payout since mid-2018, when it was set at 10 cents per common share. The new dividend payment is 10% higher, at 11 cents, but while the numbers seem small, the yield is an impressive 8.5%.Turning back to Christopher York, we find that the JPM analyst has set a $6 price target on OCSL, suggesting his belief in a 24% potential for the stock.Backing his stance, York writes, “We think the combination of stability in portfolio performance in 2Q20, along with growth in the investment portfolio at wider spreads gave the board the necessary boost to finally increase the dividend with improved visibility in recurring core earnings. Going forward, we believe there are a couple levers available for OCSL to expand earnings and ROE, so we think another dividend increase in F2021 is possible.”Of the three stocks on this list, Oaktree is the one with a Strong Buy analyst consensus rating – and it is unanimous. The stock has received 5 Buy reviews in recent weeks. The shares are priced at $4.83, and the $5.60 average price target implies an upside potential of 16% for the coming 12 months. (See OCSL stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Thu, 10 Sep 2020
15:21:32 +0000
Insider Buys Oaktree Specialty Lending's Shares
Gero Deborah Ann filed a Form 4 with the SEC on Thursday, September 10. The insider bought 4,000 shares of Oaktree Specialty Lending Inc (NASDAQ:OCSL) at an average price of $5.00. After the transaction, the executive's stake in Oaktree Specialty Lending moved to 35,000 shares. Oaktree Specialty Lending was trading 0.2% higher from the previous closing price.Why Insider Transactions Are Important? Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."Transaction Codes To Focus On Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.See more from Benzinga * Insider Buys Oaktree Specialty Lending Shares * Insider Buys Oaktree Specialty Lending's Stock * Recap: Oaktree Specialty Lending Q3 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Fri, 04 Sep 2020
15:38:25 +0000
Insider Buys Oaktree Specialty Lending Shares
A Form 4 filing filed with the SEC on Friday, September 4 showed that Ruben Richard bought 5,000 shares of Oaktree Specialty Lending Inc (NASDAQ:OCSL) at $4.94 on Wednesday, Sep 02, and bought 2,500 shares at $4.97 on Thursday, Sep 03.The transaction moved the executive's stake in Oaktree Specialty Lending to 42,250 shares. Shares of Oaktree Specialty Lending fell by 0.90% from the previous closing price.Why Insider Transactions Are Important? Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."Important Transaction Codes Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.See more from Benzinga * Insider Buys Oaktree Specialty Lending's Stock * Recap: Oaktree Specialty Lending Q3 Earnings * Earnings Scheduled For August 10, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Wed, 19 Aug 2020
15:30:24 +0000
Insider Buys Oaktree Specialty Lending's Stock
Oaktree Specialty Lending Inc (NASDAQ:OCSL) was trading 0.10% lower from the previous closing price. Ruben Richard filed a Form 4 with the SEC on Wednesday, August 19. The insider bought 2,000 shares at an average price of $5.03. After the transaction, the executive's stake in Oaktree Specialty Lending Inc. moved to 32,250 shares.The Importance of Insider Transactions While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."Transaction Codes To Focus On Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.See more from Benzinga * Recap: Oaktree Specialty Lending Q3 Earnings * Earnings Scheduled For August 10, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 10 Aug 2020
22:00:51 +0000
Oaktree Specialty Lending Corporation (OCSL) Q3 2020 Earnings Call Transcript
Now I would like to introduce Michael Mosticchio of Investor Relations, who will host today's conference call. Before we begin, I want to remind you that comments on today's call include forward-looking statements reflecting our current views with respect to, among other things, our future operating results and financial performance.
Mon, 10 Aug 2020
11:30:11 +0000
Oaktree Specialty Lending (OCSL) Q3 Earnings and Revenues Top Estimates
Oaktree Specialty Lending (OCSL) delivered earnings and revenue surprises of 9.09% and 0.67%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

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Oaktree Specialty Lending Corporation (OCSL)