Oaktree Specialty Lending Corp (OCSL) SEC Filings & Earnings Calls

High coupon rate (7%) may indicate credit risk or market conditions.

“7.000% Notes due 2031” · word for word

Increased leverage and interest expense from $300M notes at 7% coupon.

“7.000% Notes due 2031; net proceeds $296.5M.”

Total investment income decreased due to lower average portfolio balance and non-recurring income

“The decrease was primarily driven by a lower average portfolio balance and a decrease in non-recurring income” · word for word

Interest Rate Sensitivity

“The decrease of $5.8 million, or 7.8%, in our total investment income for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was due primarily to a $7.6 million decrease in interest income that primarily resulted from decreases in reference rates.” · word for word

Credit Losses

“During the three months ended June 30, 2026 and 2025, we recorded aggregate net realized losses of $49.5 million and $13.4 million, respectively, in connection with the exits and restructurings of various investments and foreign currency forward contracts.” · word for word

Portfolio Concentration

“Application Software 17.61% of portfolio at cost”

NAV per share declined 3.7% QoQ due to realized and unrealized depreciation on debt and equity investments, particularly software investments

“Net asset value ('NAV') per share was $15.69 as of March 31, 2026, down as compared with $16.30 as of December 31, 2025. The decrease was primarily driven by realized and unrealized depreciation on certain debt and equity investments during the quarter.”

Dividend cut from $0.34/share (quarterly+supplemental) to $0.34/share (combined) signals management's cautious outlook on income generation

“Due to our conservative use of leverage, we adjusted our cash dividend to $0.34 per share for the quarter ending June 30, 2026.” · word for word

Net realized and unrealized losses of $53.3M in the quarter, driven by market-driven spread widening for software investments

“Net realized and unrealized gains (losses), net of taxes of ($53,251) for the quarter. Some depreciation across certain investments, largely attributable to market-driven spread widening for software investments.”

Interest rate sensitivity

“The decrease of $7.2 million, or 9.3%, in our total investment income for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was due primarily to a $6.4 million decrease in interest income that primarily resulted from decreases in reference rates” · word for word

Credit quality deterioration

“During the six months ended March 31, 2026 and 2025, we recorded net unrealized depreciation of $71.8 million and $101.6 million, respectively.” · word for word

Realized losses from exits

“During the three months ended March 31, 2026 and 2025, we recorded aggregate net realized gains (losses) of $(13.6) million and $6.7 million, respectively” · word for word

Decline in NAV per share driven by unrealized depreciation on debt and equity investments; lower interest income from lower reference rates.

“NAV per share down from $16.64 to $16.30; net realized and unrealized losses of $31.1M”

Interest Rate Sensitivity

“The decrease of $11.6 million, or 13.3%, in our total investment income ... was due primarily to a $13.4 million decrease in interest income that resulted from decreases in reference rates” · word for word

Credit Risk / Non-Accruals

“As of December 31, 2025, there were eleven investments on non-accrual status that in the aggregate represented 6.5% and 3.1% of total debt investments at cost and fair value, respectively.” · word for word

Unrealized Depreciation

“During the three months ended December 31, 2025 and 2024, we recorded net unrealized depreciation of $32.4 million and $19.6 million, respectively.” · word for word

Dilution from below-NAV issuance

“Any sale of common stock at a price below NAV per share would result in an immediate dilution to existing common stockholders who do not participate in such sale on at least a pro rata basis.” · word for word

Year-over-year decline in total investment income and net investment income due to lower reference rates and tightening spreads.

“Total investment income decreased from $381.7M in FY2024 to $316.8M in FY2025; net investment income decreased from $175.1M to $152.6M.”

NAV per share declined from $18.09 to $16.64 year-over-year due to unrealized depreciation.

“NAV per share decreased from $18.09 as of September 30, 2024 to $16.64 as of September 30, 2025.”

Dividend cut signals earnings pressure

“Quarterly distribution reduced from $0.55 to $0.40 per share.”

Portfolio fair value decline

“portfolio investments (at fair value) of $2.8 billion... As of September 30, 2024... $3.0 billion.” · word for word

Net investment income decline

“net investment income of $152.6 million... (prior year $175.1 million).”