Oaktree Specialty Lending Corporation reported its financial results for the quarter ending December 31, 2024, revealing a total interest income of $78.4 million, a decrease from $91.4 million in the same period last year. The company's net investment income was $44.3 million, slightly up from $44.2 million year-over-year. However, the net increase in net assets resulting from operations was $7.2 million, down from $10.5 million in the previous year. The company’s net asset value per share decreased to $17.63 from $19.14, reflecting a decline in overall asset value.
The company experienced significant changes in its investment portfolio, with total investments at fair value dropping to $2.8 billion from $3.0 billion. Control investments decreased from $289.4 million to $267.8 million, while non-control/non-affiliate investments also saw a decline from $2.7 billion to $2.5 billion. The company’s cash and cash equivalents increased to $112.9 million from $64.0 million, indicating improved liquidity. The total liabilities decreased to $1.6 billion from $1.7 billion, primarily due to a reduction in credit facilities payable.
Strategically, Oaktree Specialty Lending has focused on enhancing its investment capabilities through joint ventures, specifically with the Senior Loan Fund JV I and OCSI Glick JV LLC. These partnerships allow the company to co-invest in senior secured loans of middle-market companies, diversifying its investment strategy. The company has also waived a portion of its management fees, which contributed to a reduction in total expenses from $55.3 million to $49.2 million compared to the previous year.
Operationally, the company reported a weighted average common share count of 82.2 million, up from 77.8 million a year ago. The asset coverage ratio remained stable at approximately 187.9%, indicating a solid buffer against liabilities. The company’s portfolio is primarily concentrated in senior secured debt, which constituted 84.8% of its total investments at fair value. The geographic distribution of investments remains diverse, with significant holdings in the Northeast and Midwest regions.
Looking ahead, Oaktree Specialty Lending Corporation anticipates continued focus on managing its investment portfolio effectively while navigating market conditions. The company has declared a quarterly distribution of $0.40 per share, reflecting its commitment to returning value to shareholders. The management remains optimistic about leveraging its strategic partnerships and maintaining a strong liquidity position to capitalize on future investment opportunities.
About Oaktree Specialty Lending Corp
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