UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 20172020
OR
 
¨

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 1-33901
Oaktree Specialty Lending Corporation

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE
(State or jurisdiction of
incorporation or organization)
 
26-1219283
(I.R.S. Employer
Identification No.)
333 South Grand Avenue, 28th Floor
Los Angeles, CA
(Address of principal executive office)
 
90071
(Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(213) 830-6300


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each ClassTrading Symbol(s)Name of Each Exchange
on Which Registered
Common Stock, par value $0.01 per shareOCSLThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods asperiod that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  þ     NO  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  ¨   NO  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer  þ¨
Accelerated filer  ¨þ
Non-accelerated filer  ¨
Smaller reporting company  ¨
(Do not check if a smaller reporting company)
Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    YES  ¨     NO  þ
The registrant had 140,960,651 shares of common stock outstanding as of February 7, 2018.2, 2021.




OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 20172020



TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item 1.
Consolidated Financial Statements:
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
Item 4.
Controls and Procedures
PART II — OTHER INFORMATION
Item 1.
Legal Proceedings
Item 1A.
Risk Factors
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.3.
Defaults Upon Senior Securities
Item 4.4.
Mine Safety Disclosures
Item 5.
Other Information
98
Item 6.5.
ExhibitsOther Information
SignaturesItem 6.
100Exhibits
Signatures


 




 












PART I — FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
December 31, 2020 (unaudited)September 30, 2020
ASSETS
Investments at fair value:
Control investments (cost December 31, 2020: $243,990; cost September 30, 2020: $245,950)$207,760 $201,385 
Affiliate investments (cost December 31, 2020: $10,303; cost September 30, 2020: $7,551)8,971 6,509 
Non-control/Non-affiliate investments (cost December 31, 2020: $1,503,368; cost September 30, 2020: $1,415,669)1,495,593 1,365,957 
Total investments at fair value (cost December 31, 2020: $1,757,661; cost September 30, 2020: $1,669,170)1,712,324 1,573,851 
Cash and cash equivalents24,234 39,096 
Interest, dividends and fees receivable8,999 6,935 
Due from portfolio companies2,093 2,725 
Receivables from unsettled transactions11,054 9,123 
Deferred financing costs5,840 5,947 
Deferred offering costs67 67 
Deferred tax asset, net1,122 847 
Derivative assets at fair value— 223 
Other assets28,170 1,898 
Total assets$1,793,903 $1,640,712 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$2,442 $1,072 
Base management fee and incentive fee payable20,230 11,212 
Due to affiliate2,355 2,130 
Interest payable4,192 1,626 
Payables from unsettled transactions102,737 478 
Derivative liability at fair value2,203 — 
Credit facility payable400,025 414,825 
Unsecured notes payable (net of $3,086 and $3,272 of unamortized financing costs as of December 31, 2020 and September 30, 2020, respectively)294,802 294,490 
Total liabilities828,986 725,833 
Commitments and contingencies (Note 14)
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 140,961 shares issued and outstanding as of December 31, 2020 and September 30, 20201,409 1,409 
Additional paid-in-capital1,487,774 1,487,774 
Accumulated overdistributed earnings(524,266)(574,304)
Total net assets (equivalent to $6.85 and $6.49 per common share as of December 31, 2020 and September 30, 2020, respectively) (Note 12)964,917 914,879 
Total liabilities and net assets$1,793,903 $1,640,712 
  
December 31, 2017 (unaudited)
 September 30, 2017
ASSETS
Investments at fair value:    
Control investments (cost December 31, 2017: $438,415; cost September 30, 2017: $444,826) $297,534
 $305,271
Affiliate investments (cost December 31, 2017: $33,397; cost September 30, 2017: $33,743) 36,469
 36,983
Non-control/Non-affiliate investments (cost December 31, 2017: $1,204,629; cost September 30, 2017: $1,279,096) 1,081,401
 1,199,501
Total investments at fair value (cost December 31, 2017: $1,676,441; cost September 30, 2017: $1,757,665) 1,415,404
 1,541,755
Cash and cash equivalents 45,435
 53,018
Restricted cash 319
 6,895
Interest, dividends and fees receivable 9,082
 6,892
Due from portfolio companies 5,368
 5,670
Receivables from unsettled transactions 8,869
 —
Deferred financing costs 6,443
 1,304
Other assets 3,260
 514
Total assets $1,494,180
 $1,616,048
LIABILITIES AND NET ASSETS
Liabilities: 
  
Accounts payable, accrued expenses and other liabilities $3,490
 $2,417
Base management fee and Part I incentive fee payable 6,286
 6,750
Due to affiliate 1,534
 1,815
Interest payable 6,547
 3,167
Amounts payable to syndication partners —
 1
Director fees payable 176
 184
Payables from unsettled transactions 33,465
 58,691
Credit facilities payable 205,000
 255,995
Unsecured notes payable (net of $4,432 and $4,737 of unamortized financing costs as of December 31, 2017 and September 30, 2017, respectively) 406,486
 406,115
Secured borrowings at fair value (proceeds of $13,489 as of December 31, 2017 and September 30, 2017) 11,601
 13,256
Total liabilities 674,585
 748,391
Commitments and contingencies (Note 15) 
  
Net assets:    
Common stock, $0.01 par value, 250,000 shares authorized; 140,961 shares issued and outstanding as of December 31, 2017 and September 30, 2017 1,409
 1,409
Additional paid-in-capital 1,579,278
 1,579,278
Net unrealized depreciation on investments and secured borrowings (259,149) (215,677)
Net realized loss on investments and secured borrowings (478,301) (478,010)
Accumulated overdistributed net investment income (23,642) (19,343)
Total net assets (equivalent to $5.81 and $6.16 per common share as of December 31, 2017 and September 30, 2017, respectively) (Note 12) 819,595
 867,657
Total liabilities and net assets $1,494,180
 $1,616,048

See notes to Consolidated Financial Statements.
3


Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended
December 31, 2020		Three months ended
December 31, 2019
Interest income:
Control investments$2,343 $2,551 
Affiliate investments105 114 
Non-control/Non-affiliate investments29,184 25,659 
Interest on cash and cash equivalents1 81 
Total interest income31,633 28,405 
PIK interest income:
Non-control/Non-affiliate investments3,089 1,161 
Total PIK interest income3,089 1,161 
Fee income:
Control investments15 6 
Affiliate investments5 5 
Non-control/Non-affiliate investments3,332 1,060 
Total fee income3,352 1,071 
Dividend income:
Control investments130 323 
Total dividend income130 323 
Total investment income38,204 30,960 
Expenses:
Base management fee6,541 5,607 
Part I incentive fee4,149 2,988 
Part II incentive fee9,540 1,051 
Professional fees867 640 
Directors fees143 143 
Interest expense6,095 6,535 
Administrator expense333 428 
General and administrative expenses518 532 
Total expenses28,186 17,924 
Reversal of fees waived— 5,200 
Net expenses28,186 23,124 
Net investment income10,018 7,836 
Unrealized appreciation (depreciation):
Control investments8,335 1,997 
Affiliate investments(290)(64)
Non-control/Non-affiliate investments41,937 2,408 
Foreign currency forward contracts(2,426)(1,462)
Net unrealized appreciation (depreciation)47,556 2,879 
Realized gains (losses):
Non-control/Non-affiliate investments8,738 3,839 
Foreign currency forward contracts(523)(551)
Net realized gains (losses)8,215 3,288 
Provision for income tax (expense) benefit(245)(160)
Net realized and unrealized gains (losses), net of taxes55,526 6,007 
Net increase (decrease) in net assets resulting from operations$65,544 $13,843 
Net investment income per common share — basic and diluted$0.07 $0.06 
Earnings (loss) per common share — basic and diluted (Note 5)$0.46 $0.10 
Weighted average common shares outstanding — basic and diluted140,961 140,961 
  Three months ended
December 31, 2017		 Three months ended
December 31, 2016
Interest income:    
Control investments $3,203
 $4,445
Affiliate investments 949
 1,008
Non-control/Non-affiliate investments 25,565
 38,301
Interest on cash and cash equivalents 221
 119
Total interest income 29,938
 43,873
PIK interest income:    
Control investments 1,191
 1,560
Affiliate investments 176
 201
Non-control/Non-affiliate investments 500
 1,076
Total PIK interest income 1,867
 2,837
Fee income:    
Control investments 120
 309
Affiliate investments 4
 482
Non-control/Non-affiliate investments 907
 2,777
Total fee income 1,031
 3,568
Dividend and other income:    
Control investments 1,040
 1,462
Non-control/Non-affiliate investments —
 20
Total dividend and other income 1,040
 1,482
Total investment income 33,876
 51,760
Expenses:    
Base management fee 5,590
 8,614
Part I incentive fee 830
 4,063
Professional fees 2,898
 1,064
Board of Directors fees 176
 197
Interest expense 9,584
 13,189
Administrator expense 494
 531
General and administrative expenses 1,116
 1,468
Loss on legal settlements —
 3
Total expenses 20,688
 29,129
Fees waived (134) (61)
Insurance recoveries —
 (602)
Net expenses 20,554
 28,466
Net investment income 13,322
 23,294
Unrealized appreciation (depreciation) on investments:    
Control investments (1,326) 1,339
Affiliate investments (168) 26
Non-control/Non-affiliate investments (43,633) (75,721)
Net unrealized depreciation on investments (45,127) (74,356)
Net unrealized (appreciation) depreciation on secured borrowings 1,655
 (84)
Realized gain (loss) on investments and secured borrowings:    
Control investments —
 (23,624)
Non-control/Non-affiliate investments (291) 528
Net realized loss on investments and secured borrowings (291) (23,096)
Net decrease in net assets resulting from operations $(30,441) $(74,242)
Net investment income per common share — basic $0.09
 $0.16
Loss per common share — basic $(0.22) $(0.52)
Weighted average common shares outstanding — basic 140,961
 142,853
Net investment income per common share — diluted $0.09
 $0.16
Loss per common share — diluted (Note 5) $(0.22) $(0.52)
Weighted average common shares outstanding — diluted 140,961
 142,853
Distributions per common share $0.125
 $0.18


See notes to Consolidated Financial Statements.

4

Oaktree Specialty Lending Corporation
Consolidated Statements of Changes in Net Assets
(in thousands, except per share amounts)
(unaudited)

Three months ended
December 31, 2020		Three months ended
December 31, 2019
Operations:
Net investment income$10,018 $7,836 
Net unrealized appreciation (depreciation)47,556 2,879 
Net realized gains (losses)8,215 3,288 
Provision for income tax (expense) benefit(245)(160)
Net increase (decrease) in net assets resulting from operations65,544 13,843 
Stockholder transactions:
Distributions to stockholders(15,506)(13,391)
Net increase (decrease) in net assets from stockholder transactions(15,506)(13,391)
Capital share transactions:
Issuance of common stock under dividend reinvestment plan528 481 
Repurchases of common stock under dividend reinvestment plan(528)(481)
Net increase (decrease) in net assets from capital share transactions— — 
Total increase (decrease) in net assets50,038 452 
Net assets at beginning of period914,879 930,630 
Net assets at end of period$964,917 $931,082 
Net asset value per common share$6.85 $6.61 
Common shares outstanding at end of period140,961 140,961 

  Three months ended
December 31, 2017		 Three months ended
December 31, 2016		 
Operations:     
Net investment income $13,322
 $23,294
 
Net unrealized depreciation on investments (45,127) (74,356) 
Net unrealized (appreciation) depreciation on secured borrowings 1,655
 (84) 
Net realized loss on investments and secured borrowings (291) (23,096) 
Net decrease in net assets resulting from operations (30,441) (74,242) 
Stockholder transactions:     
Distributions to stockholders (17,621) (25,274) 
Net decrease in net assets from stockholder transactions (17,621) (25,274) 
Capital share transactions:     
Issuance of common stock under dividend reinvestment plan 294
 1,250
 
Repurchases of common stock under stock repurchase program —
 (12,500) 
Repurchases of common stock under dividend reinvestment program (294) (1,250) 
Net decrease in net assets from capital share transactions —
 (12,500) 
Total decrease in net assets (48,062) (112,016) 
Net assets at beginning of period 867,657
 1,142,288
 
Net assets at end of period $819,595
 $1,030,272
 
Net asset value per common share $5.81
 $7.31
 
Common shares outstanding at end of period 140,961
 140,961
 




See notes to Consolidated Financial Statements.
5
Oaktree Specialty Lending Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)



  Three months ended
December 31, 2017		 Three months ended
December 31, 2016		 
Operating activities:     
Net decrease in net assets resulting from operations $(30,441) $(74,242) 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:     
Net unrealized depreciation on investments 45,127
 74,356
 
Net unrealized appreciation (depreciation) on secured borrowings (1,655) 84
 
Net realized loss on investments and secured borrowings 291
 23,096
 
PIK interest income (1,867) (2,837) 
Recognition of fee income (1,031) (3,568) 
Accretion of original issue discount on investments (2,997) (2,201) 
Accretion of original issue discount on unsecured notes payable 66
 66
 
Amortization of deferred financing costs 1,341
 999
 
Changes in operating assets and liabilities:     
Fee income received 1,031
 3,583
 
Decrease in restricted cash 6,576
 11,315
 
(Increase) decrease in interest, dividends and fees receivable (2,190) 3,285
 
Decrease in due from portfolio companies 302
 958
 
(Increase) decrease in receivables from unsettled transactions (8,869) 5,346
 
Decrease in insurance recoveries receivable —
 759
 
(Increase) decrease in other assets (2,746) 372
 
Increase in accounts payable, accrued expenses and other liabilities 1,073
 1,534
 
Decrease in base management fee and Part I incentive fee payable (464) (3,557) 
Decrease in due to affiliate (281) (145) 
Increase in interest payable 3,380
 5,148
 
Increase (decrease) in payables from unsettled transactions (25,226) 13,269
 
Decrease in director fees payable (8) (369) 
Decrease in legal settlements payable —
 (530) 
Increase (decrease) in amounts payable to syndication partners (1) 1,030
 
Purchases of investments and net revolver activity (200,166) (104,153) 
Principal payments received on investments (scheduled payments) 14,149
 6,371
 
Principal payments received on investments (payoffs) 196,415
 209,241
 
PIK interest income received in cash 1,103
 3,434
 
Proceeds from the sale of investments 74,296
 6,427
 
Net cash provided by operating activities 67,208
 179,071
 
Financing activities:     
Distributions paid in cash (17,327) (24,024) 
Borrowings under credit facilities 35,000
 84,000
 
Repayments of borrowings under credit facilities (85,995) (158,882) 
Repayments of secured borrowings —
 (4,503) 
Repurchases of common stock under stock repurchase program —
 (12,500) 
Repurchases of common stock under dividend reinvestment plan (294) (1,250) 
Deferred financing costs paid (6,175) —
 
Net cash used by financing activities (74,791) (117,159) 
Net increase (decrease) in cash and cash equivalents (7,583) 61,912
 
Cash and cash equivalents, beginning of period 53,018
 117,923
 
Cash and cash equivalents, end of period $45,435
 $179,835
 
Supplemental information:     
Cash paid for interest $4,797
 $6,976
 
Non-cash operating activities:     
Purchases of investments from restructurings $—
 $(125,693) 
Proceeds from investment restructurings $—
 $125,693
 
Non-cash financing activities:     
Issuance of shares of common stock under dividend reinvestment plan $294
 $1,250
 


Three months ended
December 31, 2020		Three months ended
December 31, 2019
Operating activities:
Net increase (decrease) in net assets resulting from operations$65,544 $13,843 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net unrealized (appreciation) depreciation(47,556)(2,879)
Net realized (gains) losses(8,215)(3,288)
PIK interest income(3,089)(1,161)
Accretion of original issue discount on investments(3,143)(2,028)
Accretion of original issue discount on unsecured notes payable127 — 
Amortization of deferred financing costs636 463 
Deferred taxes(275)225 
Purchases of investments(243,741)(115,792)
Proceeds from the sales and repayments of investments169,821 97,022 
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable(1,848)811 
(Increase) decrease in due from portfolio companies632 (315)
(Increase) decrease in receivables from unsettled transactions(1,931)(872)
(Increase) decrease in other assets(26,272)(267)
Increase (decrease) in accounts payable, accrued expenses and other liabilities1,314 (92)
Increase (decrease) in base management fee and incentive fee payable9,018 5,804 
Increase (decrease) in due to affiliate225 (141)
Increase (decrease) in interest payable2,566 106 
Increase (decrease) in payables from unsettled transactions102,259 (34,909)
Increase (decrease) in amounts payable to syndication partners— 1 
Net cash provided by (used in) operating activities16,072 (43,469)
Financing activities:
Distributions paid in cash(14,978)(12,910)
Borrowings under credit facilities— 82,000 
Repayments of borrowings under credit facilities(14,800)(19,000)
Repurchases of common stock under dividend reinvestment plan(528)(481)
Deferred financing costs paid(288)— 
Deferred offering costs paid— (20)
Net cash provided by (used in) financing activities(30,594)49,589 
Effect of exchange rate changes on foreign currency(340)1 
Net increase (decrease) in cash and cash equivalents(14,862)6,121 
Cash and cash equivalents, beginning of period39,096 15,406 
Cash and cash equivalents, end of period$24,234 $21,527 
Supplemental information:
Cash paid for interest$2,766 $5,966 
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan$528 $481 
Deferred financing costs(57)— 
Deferred offering costs— (45)
Reconciliation to the Consolidated Statements of Assets and LiabilitiesDecember 31, 2020September 30, 2020
Cash and cash equivalents$24,234 $39,096 
Restricted cash— — 
Total cash and cash equivalents and restricted cash$24,234 $39,096 

See notes to Consolidated Financial Statements.
6
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Control Investments(8)(9)
C5 Technology Holdings, LLCData Processing & Outsourced Services
829 Common Units$— $— (20)
34,984,460.37 Preferred Units34,984 27,638 (20)
34,984 27,638 
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.00 %$27,590 27,590 27,590 (6)(20)
First Lien Revolver, LIBOR+5.00% cash due 2/28/20246.00 %7,699 7,699 7,699 (6)(19)(20)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC18,626 7,667 (20)
53,915 42,956 
First Star Speir Aviation LimitedAirlines(10)
First Lien Term Loan, 9.00% cash due 12/15/20257,500 — 7,500 (11)(20)
100% equity interest6,356 1,681 (11)(12)(20)
6,356 9,181 
New IPT, Inc.Oil & Gas Equipment & Services
First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %2,154 2,154 1,683  (6)(20)
First Lien Revolver, LIBOR+5.00% cash due 3/17/20216.00 %1,009 1,009 788  (6)(19)(20)
50.087 Class A Common Units in New IPT Holdings, LLC— — (20)
3,163 2,471 
Senior Loan Fund JV I, LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/20287.14 %96,250 96,250 96,250 (6)(11)(20)
87.5% LLC equity interest49,322 29,264 (11)(16)(19)
145,572 125,514 
 Total Control Investments (21.5% of net assets)$243,990 $207,760 
 Affiliate Investments(17)
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %$7,440 $7,440 $6,949 (6)(19)(20)
1,609,201 Class A Units764 418 (20)
1,019,168.80 Preferred Units, 6%1,019 1,101 (20)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (20)
9,223 8,468 
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%1,080 503 (20)
1,080 503 
 Total Affiliate Investments (0.9% of net assets)$10,303 $8,971 
 Non-Control/Non-Affiliate Investments(18)
4 Over International, LLCCommercial Printing
First Lien Term Loan, LIBOR+6.00% cash due 6/7/20227.00 %$5,645 $5,627 $5,236 (6)(20)
First Lien Revolver, LIBOR+6.00% cash due 6/7/20217.00 %2,232 2,214 2,070 (6)(20)
7,841 7,306 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% cash due 12/22/202237,158 36,793 36,786 (11)(20)
36,793 36,786 
Access CIG, LLCDiversified Support Services
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/20267.98 %15,000 14,913 14,869 (6)
14,913 14,869 
7
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
Control Investments (3)(15)          
Traffic Solutions Holdings, Inc.   Construction and engineering      
 First Lien Term Loan, LIBOR+7% (1% floor) cash 2% PIK due 4/1/2021 (13) 8.70%   $36,661
 $36,637
 $36,662
 First Lien Revolver, LIBOR+6% (1% floor) cash due 4/1/2021 (13) 7.70%   2,000
 1,997
 2,000
 LC Facility, 6% cash due 4/1/2021 

   4,752
 4,748
 4,752
 746,114 Series A Preferred Units, 10%       20,029
 7,700
 746,114 Shares of Common Stock       5,316
 —
        68,727
 51,114
 TransTrade Operators, Inc.   Air freight & logistics      
 First Lien Term Loan, 5% cash due 12/31/2017 (22)(24) 

   15,973
 15,574
 1,810
 First Lien Revolver, 8% cash due 12/31/2017 (22)(24) 

   7,757
 7,757
 —
 596.67 Series A Common Units       —
 —
 4,000 Series A Preferred Units in TransTrade Holdings LLC       4,000
 —
 5,200,000 Series B Preferred Units in TransTrade Holdings LLC       5,200
 —
        32,531
 1,810
 First Star Speir Aviation Limited (11)(16)   Airlines      
 First Lien Term Loan, 9% cash due 12/15/2020 

   32,510
 25,194
 32,511
 100% equity interest (6)       8,500
 6,937
        33,694
 39,448
 First Star Bermuda Aviation Limited (11)(16)   Airlines      
 First Lien Term Loan, 9% cash 3% PIK due 8/19/2018 

   11,868
 11,868
 11,868
 100% equity interest (6)       5,192
 7,316
        17,060
 19,184
 Eagle Hospital Physicians, LLC   Healthcare services      
 Earn-out (19)       7,851
 5,083
        7,851
 5,083
 Senior Loan Fund JV I, LLC (11)(17)(18)   Multi-sector holdings      
 Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC (13) 6.52%   100,804
 100,804
 100,804
 Class B Mezzanine Secured Deferrable Fixed Rate Notes, 15% PIK due 2036 in SLF Repack Issuer 2016 LLC     27,463
 27,463
 27,463
 87.5% LLC equity interest (25)       16,172
 4,880
        144,439
 133,147
 Ameritox Ltd.   Healthcare services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 (13)(22) 6.69%   39,438
 37,533
 4,800
 14,090,126.4 Class A Preferred Units in Ameritox Holdings II, LLC       14,090
 —
 1,602,260.83 Class B Preferred Units in Ameritox Holdings II, LLC       1,602
 —
 4,930.03 Class A Units in Ameritox Holdings II, LLC       29,049
 —
        82,274
 4,800
 New IPT, Inc.    Oil & gas equipment services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/17/2021 (13) 6.69%   4,107
 4,107
 4,107
 Second Lien Term Loan, LIBOR+5.1% (1% floor) cash due 9/17/2021 (13) 6.79%   2,504
 2,504
 2,504
 First Lien Revolver, LIBOR+5% (1% floor) cash due 3/17/2021 (13) 6.69%   1,009
 1,009
 1,009
 50.087 Class A Common Units in New IPT Holdings, LLC       —
 963
        7,620
 8,583
 AdVenture Interactive, Corp.   Advertising      
 9,073 shares of common stock       13,611
 6,421
        13,611
 6,421
 Keypath Education, Inc.   Advertising      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 4/3/2022 (13) 8.69%   19,960
 19,960
 19,960
 First Lien Revolver, LIBOR+7% (1% floor) cash due 4/3/2022 (13) 8.69%   —
 —
 —
 9,073 Class A Units in FS AVI Holdco, LLC       10,648
 7,984
        30,608
 27,944
 Total Control Investments (36.3% of net assets)       $438,415
 $297,534
See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Accupac, Inc.Personal Products
First Lien Term Loan, LIBOR+6.00% cash due 1/17/20267.00 %$12,456 $12,273 $12,456 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026— (34)— (6)(19)(20)
First Lien Revolver, LIBOR+6.00% cash due 1/17/20267.00 %1,564 1,541 1,564 (6)(20)
13,780 14,020 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.00 %20,950 20,612 20,656 (6)(20)
First Lien Revolver, LIBOR+7.00% cash due 10/31/2025— (37)(31)(6)(19)(20)
20,575 20,625 
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %8,333 8,125 8,167 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 12/18/2025— (42)(33)(6)(19)(20)
8,083 8,134 
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.5,165 — (20)
5,165 — 
AdVenture Interactive, Corp.Advertising
9,073 shares of common stock13,611 13,857 (20)
13,611 13,857 
AI Ladder (Luxembourg) Subco S.a.r.l.Electrical Components & Equipment
First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.65 %16,301 15,984 16,199 (6)(11)
15,984 16,199 
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %€24,838 27,683 30,315 (6)(11)(20)
27,683 30,315 
Airbnb, Inc.Hotels, Resorts & Cruise Lines
First Lien Term Loan, LIBOR+7.50% cash due 4/17/20258.50 %$15,703 15,360 17,057 (6)
15,360 17,057 
AirStrip Technologies, Inc.Application Software
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/202590 — (20)
90 — 
Aldevron, L.L.C.Biotechnology
First Lien Term Loan, LIBOR+4.25% cash due 10/12/20265.25 %7,940 7,861 7,980 (6)
7,861 7,980 
Algeco Scotsman Global Finance PlcConstruction & Engineering
Fixed Rate Bond, 8.00% cash due 2/15/202313,524 13,301 13,820 (11)
13,301 13,820 
Alvotech Holdings S.A.Biotechnology(13)
Fixed Rate Bond 15% PIK Note A due 12/13/202314,800 19,529 20,999 (11)(20)
Fixed Rate Bond 15% PIK Note B due 12/13/202314,800 19,529 20,408 (11)(20)
39,058 41,407 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %7,328 6,541 6,815 (6)(11)(20)
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/20278.75 %12,500 12,188 10,313 (6)(11)(20)
18,729 17,128 
Ancile Solutions, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 6/30/20218.00 %7,995 7,977 7,987  (6)(20)
7,977 7,987 
8
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 Affiliate Investments (4)          
 Caregiver Services, Inc.   Healthcare services      
 Second Lien Term Loan, 10% cash 2% PIK due 6/30/2019 

   $9,752
 $9,751
 $9,708
 1,080,399 Shares of Series A Preferred Stock, 10%       1,080
 2,161
        10,831
 11,869
 AmBath/ReBath Holdings, Inc.   Home improvement retail      
 First Lien Term Loan B, 12.5% cash 2.5% PIK due 8/31/2018 

   22,552
 22,566
 22,552
 4,668,788 Shares of Preferred Stock       —
 2,048
        22,566
 24,600
 Total Affiliate Investments (4.4% of net assets)       $33,397
 $36,469
           
 Non-Control/Non-Affiliate Investments (7)          
 Cenegenics, LLC   Healthcare services      
 First Lien Term Loan, 9.75% cash 2% PIK due 9/30/2019 (22) 

   28,746
 $27,738
 $15,812
 First Lien Revolver, 15% cash due 9/30/2019 (22) 

   2,203
 2,203
 1,085
 452,914.87 Common Units in Cenegenics, LLC       598
 —
 345,380.141 Preferred Units in Cenegenics, LLC       300
 —
        30,839
 16,897
 Riverlake Equity Partners II, LP   Multi-sector holdings      
 1.92% limited partnership interest (11)(25)       871
 588
        871
 588
 Riverside Fund IV, LP   Multi-sector holdings      
 0.34% limited partnership interest (11)(25)       153
 356
        153
 356
 Bunker Hill Capital II (QP), L.P.   Multi-sector holdings      
 0.51% limited partnership interest (11)(25)       638
 808
        638
 808
 Maverick Healthcare Group, LLC (20)   Healthcare equipment      
 First Lien Term Loan A, LIBOR+7.5% cash (1.75% floor) cash due 1/15/2018 (13)(22) 9.25%   16,558
 16,204
 12,415
 First Lien Term Loan B, LIBOR+11% cash (1.75% floor) cash due 1/15/2018 (13)(22) 12.75%   46,030
 39,110
 —
 CapEx Line, LIBOR+7.75% (1.75% floor) cash due 1/15/2018 (13)(22) 10.25%   1,272
 1,261
 1,121
 First Lien Revolver, PRIME+6.5% cash due 1/15/2018 (13)(22) 10.75%   56
 41
 50
        56,616
 13,586
 Refac Optical Group   Specialty stores      
 First Lien Term Loan A, LIBOR+8% cash due 9/30/2018 (13) 9.56%   3,581
 3,552
 3,581
 First Lien Term Loan B, LIBOR+9% cash, 1.75% PIK due 9/30/2018 (13) 10.56%   34,701
 34,617
 34,665
 First Lien Term Loan C, 12.5% cash due 9/30/2018 

   3,416
 3,416
 3,346
 First Lien Revolver, LIBOR+8% cash due 9/30/2018 (13) 9.56%   3,520
 3,516
 3,520
 1,550.9435 Shares of Common Stock in Refac Holdings, Inc.       1
 —
 550.9435 Shares of Series A-2 Preferred Stock in Refac Holdings, Inc., 10%       305
 —
 1,000 Shares of Series A Preferred Stock Units in Refac Holdings, Inc., 10%       999
 397
        46,406
 45,509
 Baird Capital Partners V, LP   Multi-sector holdings      
 0.4% limited partnership interest (11)(25)       994
 634
        994
 634
 Milestone Partners IV, L.P.   Multi-sector holdings      
 0.82% limited partnership interest (11)(25)       1,030
 1,716
        1,030
 1,716

See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %$23,764 $23,441 $23,318 (6)(20)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025— (20)(29)(6)(19)(20)
23,421 23,289 
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+7.50% cash due 7/14/20268.50 %€1,440 1,596 1,746 (6)(11)(20)
First Lien Term Loan, UK LIBOR+5.4375% cash 2.0625% PIK due 7/14/20266.19 %£11,303 13,773 15,311 (6)(11)(20)
First Lien Delayed Draw Term Loan, UK LIBOR+5.4375% cash 2.0625% PIK due 7/14/20266.19 %£400 434 517 (6)(11)(19)(20)
Fixed Rate Bond, 11.50% cash due 1/15/2027$1,111 1,100 1,192 (11)
16,903 18,766 
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.25 %2,546 2,174 2,182 (6)
2,174 2,182 
Asurion, LLCProperty & Casualty Insurance
Second Lien Term Loan, LIBOR+6.50% cash due 8/4/20256.65 %19,985 19,952 20,180 (6)
19,952 20,180 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202634,169 32,875 34,108 (11)(20)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (237)(31)(11)(19)(20)
266,052 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027915 860 (11)(20)
33,553 34,937 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+5.75% cash due 12/24/20266.75 %22,828 22,341 21,275 (6)(11)(20)
22,341 21,275 
Blackhawk Network Holdings, Inc.Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20267.19 %26,250 26,058 24,019 (6)
26,058 24,019 
Boxer Parent Company Inc.Systems Software
First Lien Term Loan, LIBOR+4.25% cash due 10/2/20254.40 %10,284 10,195 10,262 (6)
10,195 10,262 
BX Commercial Mortgage Trust 2020-VIVADiversified Real Estate Activities
Class D Variable Notes due 3/9/20443.67 %3,130 2,616 3,129 (6)(11)(20)
Class E Variable Notes due 3/9/20443.67 %4,739 3,667 4,481 (6)(11)(20)
6,283 7,610 
California Pizza Kitchen, Inc.Restaurants
Second Lien Term Loan, 1.00% cash / LIBOR+12.50% PIK due 5/23/2025588 588 470 (6)(15)(20)
36,188 Shares of Common Stock in CPK Parent, Inc.437 398 (20)
1,025 868 
Chief Power Finance II, LLCIndependent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/20227.50 %21,563 21,224 20,538 (6)(20)
21,224 20,538 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.00 %11,724 11,558 10,903 (6)
Fixed Rate Bond, 9.25% cash due 8/1/202410,672 10,672 9,845 
22,230 20,748 
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %8,957 8,867 8,925 (6)
8,867 8,925 
9
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 RCPDirect, L.P.   Multi-sector holdings      
 0.9% limited partnership interest (11)(25)       $295
 $575
        295
 575
 Riverside Fund V, L.P.   Multi-sector holdings      
 0.48% limited partnership interest (11)(25)       1,452
 1,481
        1,452
 1,481
 ACON Equity Partners III, LP   Multi-sector holdings      
 0.13% limited partnership interest (11)(25)       785
 837
        785
 837
 BMC Acquisition, Inc.   Other diversified financial services      
 500 Series A Preferred Shares, 8%       500
 774
 50,000 Common Shares (6)       1
 59
        501
 833
 Edmentum, Inc.   Education services      
 Unsecured Senior PIK Note, 8.5% PIK due 6/9/2020 (23)     $2,487
 2,434
 —
 Unsecured Junior PIK Note, 10% PIK due 6/9/2020 (23)    11,593
 10,227
 —
 Unsecured Revolver, 5% cash due 6/9/2020 (10)(22) 

   1,731
 1,720
 (400)
 126,127.80 Class A Common Units       126
 —
        14,507
 (400)
 I Drive Safely, LLC   Education services      
125,079 Class A Common Units of IDS Investments, LLC       1,000
 —
        1,000
 —
 Yeti Acquisition, LLC   Leisure products      
 3,000,000 Common Stock Units of Yeti Holdings, Inc.       —
 5,900
        —
 5,900
 Vitalyst Holdings, Inc.   IT consulting & other services      
 675 Series A Preferred Units of PCH Support Holdings, Inc., 10%       675
 521
 7,500 Class A Common Stock Units of PCH Support Holdings, Inc.       75
 —
        750
 521
 Beecken Petty O'Keefe Fund IV, L.P.   Multi-sector holdings      
 0.5% limited partnership interest (11)(25)       973
 1,398
        973
 1,398
 Comprehensive Pharmacy Services LLC   Pharmaceuticals      
 20,000 Common Shares in MCP CPS Group Holdings, Inc.       2,000
 2,815
        2,000
 2,815
 Garretson Firm Resolution Group, Inc.   Diversified support services      
 First Lien Revolver, PRIME+5.5% cash due 5/22/2020 (13) 9.75%   711
 711
 666
 4,950,000 Preferred Units in GRG Holdings, LP, 8%       495
 196
 50,000 Common Units in GRG Holdings, LP       5
 —
        1,211
 862
 Teaching Strategies, LLC   Education services      
 Second Lien Term Loan, LIBOR+9.5% (1% floor) cash due 8/27/2023 (13) 11.19%   33,500
 33,500
 34,119
        33,500
 34,119
See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025$25,411 $25,411 $20,710 (6)(20)
Common Stock Warrants expiration date 7/28/2025— 1,672 (20)
25,411 22,382 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.15 %14,584 14,155 13,819 (6)
14,155 13,819 
Conviva Inc.Application Software
417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021105 395 (20)
105 395 
Corrona, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %10,274 10,126 10,134 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %1,221 1,178 1,171 (6)(19)(20)
First Lien Revolver, PRIME+4.50% cash due 12/13/20257.75 %305 279 280 (6)(19)(20)
1,099 Class A2 Common Units in Corrona Group Holdings, L.P.1,038 1,038 (20)
12,621 12,623 
Coyote Buyer, LLCSpecialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.00 %13,090 12,959 12,959 (6)(20)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025— (9)(9)(6)(19)(20)
12,950 12,950 
CTOS, LLCTrading Companies & Distributors
First Lien Term Loan, LIBOR+4.25% cash due 4/18/20254.40 %5,684 5,718 5,698 (6)
5,718 5,698 
Curium Bidco S.à.r.l.Biotechnology
Second Lien Term Loan, LIBOR+7.75% cash due 10/27/20288.50 %16,787 16,535 16,829 (6)(11)(20)
16,535 16,829 
Delta Topco, Inc.Systems Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.00 %6,680 6,647 6,755 (6)
6,647 6,755 
Eagleview Technology CorporationApplication Software
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/20268.50 %12,000 11,880 10,860 (6)(20)
11,880 10,860 
EHR Canada, LLCFood Retail
First Lien Term Loan, LIBOR+8.00% cash due 1/31/20219.00 %6,861 6,857 6,998 (6)(20)
6,857 6,998 
EOS Fitness Opco Holdings, LLCLeisure Facilities
487.5 Class A Preferred Units, 12%488 49 (20)
12,500 Class B Common Units— — (20)
488 49 
FFI Holdings I CorpIndustrial Machinery
First Lien Term Loan, LIBOR+6.25% cash due 1/24/20257.25 %4,132 3,722 3,719 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 1/24/2025— — — (6)(19)(20)
3,722 3,719 
10
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 Dominion Diagnostics, LLC   Healthcare services      
 Subordinated Term Loan, 11% cash 1% PIK due 10/8/2019 (22) 

   $19,900
 $17,262
 $1,035
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 4/8/2019 (13)��6.35%   48,669
 36,830
 36,877
 First Lien Revolver, LIBOR+5% (1% floor) cash due 4/8/2019 (10)(13) 6.35%     —
 (1,013)
        54,092
 36,899
 Sterling Capital Partners IV, L.P.   Multi-sector holdings      
 0.2% limited partnership interest (11)(25)       1,640
 1,188
        1,640
 1,188
 Advanced Pain Management   Healthcare services      
 First Lien Term Loan, LIBOR+8.5% (1.25% floor) cash due 2/26/2018 (13)(22) 10.07%   24,000
 22,994
 —
        22,994
 —
 TravelClick, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 11/6/2021 (13)(21) 9.32%   2,697
 2,482
 2,710
        2,482
 2,710
 Pingora MSR Opportunity Fund I-A, LP   Thrift & mortgage finance      
 1.86% limited partnership interest (11)(25)       6,905
 5,629
        6,905
 5,629
 Credit Infonet, Inc.   Data processing & outsourced services      
 Subordinated Term Loan, 12.25% cash 0.75% PIK due 10/26/2020 

   13,940
 13,940
 14,024
        13,940
 14,024
 HealthEdge Software, Inc.   Application software      
 482,453 Series A-3 Preferred Stock Warrants (exercise price $1.450918) expiration date 9/30/2023       213
 772
        213
 772
 InMotion Entertainment Group, LLC   Consumer electronics      
 First Lien Term Loan A, LIBOR+7.25% (1.25% floor) cash due 10/1/2021 (13) 8.95%   12,086
 12,042
 12,086
 First Lien Term Loan B, LIBOR+7.25% (1.25% floor) cash due 10/1/2021 (13) 8.95%   5,268
 5,170
 5,268
 First Lien Revolver, LIBOR+6.75% (1.25% floor) cash due 10/1/2018 (13) 8.45%   5,904
 5,897
 5,904
 CapEx Line, LIBOR+7.75% (1.25% floor) cash due 10/1/2018 (13) 9.45%   787
 779
 787
 1,000,000 Class A Units in InMotion Entertainment Holdings, LLC       1,000
 1,855
        24,888
 25,900
 Thing5, LLC   Data processing & outsourced services      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash 2% PIK due 10/11/2020 (12)(13) 9.19%   47,575
 47,575
 40,561
 First Lien Revolver, LIBOR+7.5% (1% floor) cash due 10/11/2020 (13) 9.19%   4,000
 4,000
 4,000
 2,000,000 Units in T5 Investment Vehicle, LLC       2,000
 —
        53,575
 44,561
 Kason Corporation   Industrial machinery      
 Mezzanine Term Loan, 11.5% cash 1.75% PIK due 10/28/2019 

   6,032
 6,032
 5,877
 498.6 Class A Preferred Units in Kason Investment, LLC, 8%       499
 588
 5,540 Class A Common Units in Kason Investment, LLC       55
 —
        6,586
 6,465
 SPC Partners V, L.P.   Multi-sector holdings      
 0.571% limited partnership interest (11)(25)       1,772
 1,929
        1,772
 1,929
See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/2025$8,346 $7,874 $8,054 (11)(20)
243,348 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030258 260 (11)(20)
8,132 8,314 
GI Chill Acquisition LLCManaged Health Care
First Lien Term Loan, LIBOR+4.00% cash due 8/6/20254.25 %17,595 17,507 17,441 (6)(20)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/20267.75 %10,000 9,930 9,700 (6)(20)
27,437 27,141 
GKD Index Partners, LLCSpecialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 6/29/20238.00 %19,705 19,608 19,390 (6)(20)
First Lien Revolver, LIBOR+7.00% cash due 6/29/20238.00 %924 916 906 (6)(19)(20)
20,524 20,296 
Global Medical ResponseHealth Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %6,240 6,142 6,193 (6)
6,142 6,193 
Guidehouse LLPResearch & Consulting Services
First Lien Term Loan, LIBOR+4.50% cash due 5/1/20254.65 %4,937 4,897 4,945 (6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.15 %20,000 19,933 20,000 (6)(20)
24,830 24,945 
Gulf Operating, LLCOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+5.25% cash due 8/25/20236.25 %2,035 1,258 1,553 (6)
First Lien Revolver, LIBOR+4.00% cash due 12/27/2021— (704)(704)(6)(19)(20)
554 849 
Houghton Mifflin Harcourt Publishers Inc.Education Services
First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.25 %6,650 6,438 6,428 (6)(11)
6,438 6,428 
I Drive Safely, LLCEducation Services
125,079 Class A Common Units of IDS Investments, LLC1,000 225 (20)
1,000 225 
IBG Borrower LLCApparel, Accessories & Luxury Goods
First Lien Term Loan, LIBOR+7.00% cash due 8/2/20227.31 %7,768 7,409 6,753 (6)(20)
7,409 6,753 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50 %19,171 18,913 19,029 (6)(20)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.50 %882 869 876 (6)(20)
19,782 19,905 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20256.75 %6,461 6,345 6,331 (6)(20)
First Lien Revolver, LIBOR+5.75% cash due 7/2/2025— (10)(11)(6)(19)(20)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/20259.00 %15,750 15,471 15,435 (6)(20)
21,806 21,755 
Integral Development CorporationOther Diversified Financial Services
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024113 — (20)
113 — 
11
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 P2 Upstream Acquisition Co.    Application software      
 First Lien Revolver, LIBOR+4% (1% floor) cash due 11/1/2018 (10)(13)(21) 5.69%     $—
 $(200)
        —
 (200)
 OmniSYS Acquisition Corporation   Diversified support services      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash due 11/21/2018 (13) 9.19%   $5,500
 5,498
 5,488
 First Lien Revolver, LIBOR+7.5% (1% floor) cash due 11/21/2018 (10)(13) 9.19%     —
 (5)
 100,000 Common Units in OSYS Holdings, LLC       1,000
 898
        6,498
 6,381
 Moelis Capital Partners Opportunity Fund I-B, LP   Multi-sector holdings      
 1.0% limited partnership interest (11)(25)       1,045
 1,420
        1,045
 1,420
 Aden & Anais Merger Sub, Inc.   Apparel, accessories & luxury goods      
 51,645 Common Units in Aden & Anais Holdings, Inc.       5,165
 —
        5,165
 —
 Lift Brands, Inc.   Leisure facilities      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash due 12/23/2019 (13) 9.19%   21,222
 21,211
 21,222
 First Lien Revolver, LIBOR+7.5% (1% floor) cash due 12/23/2019 (10)(13) 9.19%     (3) —
 2,000,000 Class A Common Units in Snap Investments, LLC       2,004
 2,878
        23,212
 24,100
 Tailwind Capital Partners II, L.P.   Multi-sector holdings      
 0.3% limited partnership interest (11)(25)       1,588
 1,894
        1,588
 1,894
 Long's Drugs Incorporated   Pharmaceuticals      
 Second Lien Term Loan, LIBOR+11.25% cash due 2/19/2022 (13) 12.63%   26,909
 26,909
 27,447
 50 Series A Preferred Shares in Long's Drugs Incorporated       500
 799
 25 Series B Preferred Shares in Long's Drugs Incorporated       313
 472
        27,722
 28,718
 Conviva Inc.   Application software      
 417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021       105
 223
        105
 223
 OnCourse Learning Corporation   Education services      
 264,312 Class A Units in CIP OCL Investments, LLC       2,726
 1,878
        2,726
 1,878
 ShareThis, Inc.   Internet software & services      
 345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024       367
 3
        367
 3
 ExamSoft Worldwide, Inc.   Internet software & services      
 180,707 Class C Units in ExamSoft Investor LLC       181
 129
        181
 129
 RCPDirect II, LP   Multi-sector holdings      
 0.4% limited partnership interest (11)(25)       617
 777
        617
 777


See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+8.50% cash due 12/1/20289.50 %$17,346 $16,826 $17,281 (6)(20)
16,826 17,281 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20278.50 %16,871 16,222 16,179 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+7.50% cash due 1/29/2027— — — (6)(19)(20)
16,222 16,179 
L Squared Capital Partners LLCMulti-Sector Holdings
2.00% limited partnership interest— 1,251 (11)(16)
— 1,251 
Lanai Holdings III, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+4.75% cash due 8/29/20225.75 %12,914 12,795 12,511 (6)
12,795 12,511 
Latam Airlines Group S.A.Airlines
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/20228,177 7,903 8,449 (6)(11)(19)(20)
7,903 8,449 
Lift Brands Holdings, Inc.Leisure Facilities
2,000,000 Class A Common Units in Snap Investments, LLC1,399 — (20)
1,399 — 
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.15 %39,400 38,946 38,218 (6)(20)
38,946 38,218 
LogMeIn, Inc.Application Software
Second Lien Term Loan, LIBOR+9.00% cash due 8/31/20289.15 %9,293 8,846 9,270 (6)
8,846 9,270 
LTI Holdings, Inc.Electronic Components
First Lien Term Loan, LIBOR+4.75% cash due 7/24/20264.90 %1,790 1,522 1,779 (6)
First Lien Term Loan, LIBOR+3.50% cash due 9/6/20253.65 %18,036 15,206 17,567 (6)
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20266.90 %10,140 10,072 9,861 (6)
26,800 29,207 
Mayfield Agency Borrower Inc.Property & Casualty Insurance
First Lien Term Loan, LIBOR+4.50% cash due 2/28/20254.65 %28,749 28,019 27,887 (6)
28,019 27,887 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+5.00% cash due 3/8/20246.00 %2,903 2,882 2,826 (6)(20)
2,882 2,826 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/20258.00 %29,208 28,811 26,760 (6)(20)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (42)(255)(6)(19)(20)
28,769 26,505 
12
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 Integral Development Corporation   Other diversified financial services      
 First Lien Term Loan, LIBOR+9.5% (1% floor) cash due 7/10/2019 (13) 10.84%   $10,750
 $10,720
 $10,118
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024       113
 —
        10,833
 10,118
 Loftware, Inc.   Internet software & services      
 Mezzanine Term Loan, 11% cash 1% PIK due 7/18/2020 

   6,214
 6,214
 6,216
 300,000 Class A Common Units in RPLF Holdings, LLC       300
 223
        6,514
 6,439
 Webster Capital III, L.P.   Multi-sector holdings      
0.754% limited partnership interest (11)(25)       1,274
 1,578
        1,274
 1,578
 L Squared Capital Partners LLC   Multi-sector holdings      
 2% limited partnership interest (11)(25)       2,660
 2,677
        2,660
 2,677
 BeyondTrust Software, Inc.   Application software      
 4,500,000 Class A membership interests in BeyondTrust Holdings LLC       4,500
 5,779
        4,500
 5,779
 GOBP Holdings Inc.   Food retail      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 10/21/2022 (13)(21) 9.94%   4,214
 4,177
 4,231
        4,177
 4,231
 Kellermeyer Bergensons Services, LLC   Diversified support services      
 Second Lien Term Loan, LIBOR+8.50% (1% floor) cash due 4/29/2022 (13) 9.88%   6,105
 5,911
 5,914
        5,911
 5,914
 Dodge Data & Analytics LLC   Data processing & outsourced services      
 First Lien Term Loan, LIBOR+8.75% (1% floor) cash due 10/31/2019 (13) 10.13%   7,238
 7,238
 7,173
 500,000 Class A Common Units in Skyline Data, News and Analytics LLC       500
 242
        7,738
 7,415
 Metamorph US 3, LLC   Internet software & services      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash 2% PIK due 12/1/2020 (13)(22) 7.07%   9,942
 9,306
 3,804
 First Lien Revolver, LIBOR+6.5% (1% floor) cash due 12/1/2020 (10)(13)(22) 8.07%   2,205
 2,156
 (75)
        11,462
 3,729
 Janrain, Inc.    Internet software & services      
 218,008 Common Stock Warrants (exercise price $1.3761) expiration date 12/5/2024       45
 —
        45
 —
 TigerText, Inc.   Internet software & services      
 299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024       60
 426
        60
 426

See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Ministry Brands, LLCApplication Software
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022$— $(9)$(9)(6)(19)(20)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/202310.25 %9,000 8,940 8,923 (6)(20)
8,931 8,914 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %15,097 14,970 15,059 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (57)(13)(6)(19)(20)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (13)(3)(6)(19)(20)
14,900 15,043 
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/20269.50 %22,560 22,110 22,109 (6)(20)
22,110 22,109 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.00 %35,938 34,642 34,716 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024— (175)(149)(6)(19)(20)
34,467 34,567 
NuStar Logistics, L.P.Oil & Gas Refining & Marketing
Unsecured Delayed Draw Term Loan, 12.00% cash due 4/19/2023— — — (19)(20)
— — 
Olaplex, Inc.Personal Products
First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %41,939 41,286 41,939 (6)(20)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025— (61)— (6)(19)(20)
41,225 41,939 
OmniSYS Acquisition CorporationDiversified Support Services
100,000 Common Units in OSYS Holdings, LLC1,000 607 (20)
1,000 607 
Onvoy, LLCIntegrated Telecommunication Services
Second Lien Term Loan, LIBOR+10.50% cash due 2/10/202511.50 %16,750 16,750 15,745 (6)(20)
19,666.67 Class A Units in GTCR Onvoy Holdings, LLC1,967 785 (20)
13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC— — (20)
18,717 16,530 
OZLM Funding III, Ltd.Multi-Sector Holdings
Class DR Notes, LIBOR+7.77% cash due 1/22/20297.99 %2,312 1,666 2,288 (6)(11)
1,666 2,288 
P & L Development, LLCPharmaceuticals
Fixed Rate Bond, 7.75% cash due 11/15/20259,123 9,123 9,830 
9,123 9,830 
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %5,000 4,804 4,817 (6)
4,804 4,817 
13
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 EOS Fitness Opco Holdings, LLC   Leisure facilities      
 First Lien Term Loan, LIBOR+8.75% (0.75% floor) cash due 12/30/2019 (13) 10.12%   $3,650
 $3,650
 $3,687
 First Lien Revolver, LIBOR+8.75% (0.75% floor) cash due 12/30/2019 (13) 10.12%     —
 50
 487.5 Class A Preferred Units, 12%       488
 695
 12,500 Class B Common Units       13
 567
        4,151
 4,999
 Motion Recruitment Partners LLC   Human resources & employment services      
 First Lien Revolver, LIBOR+6% (1% floor) cash due 2/13/2020 (10)(13) 7.69%     (6) 3
        (6) 3
 WeddingWire, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+8.5% (1% floor) cash due 2/20/2020 (13) 10.20%   25,438
 25,438
 25,565
 First Lien Revolver, LIBOR+8.5% (1% floor) cash due 2/20/2020 (13) 10.20%     —
 15
 483,645 Common Shares of WeddingWire, Inc.       1,200
 1,655
        26,638
 27,235
 xMatters, Inc.   Internet software & services      
 600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025       709
 372
        709
 372
 Edge Fitness, LLC   Leisure facilities      
 Delayed Draw Term Loan, LIBOR+7.75% (1% floor) cash due 6/30/2020 (13) 9.09%   5,535
 5,535
 5,535
        5,535
 5,535
 Golden State Medical Supply, Inc.   Pharmaceuticals      
 Mezzanine Term Loan, 10% cash 2.5% PIK due 4/24/2021 

   15,001
 15,001
 14,932
        15,001
 14,932
 AirStrip Technologies, Inc.   Internet software & services      
 22,858.71 Series C-1 Preferred Stock Warrants (exercise price $34.99757) expiration date 5/11/2025       90
 —
        90
 —
 Access Medical Acquisition, Inc.   Healthcare services      
 450,000 Shares of Class A Common Stock in CMG Holding Company, LLC (6)       151
 970
        151
 970
 QuorumLabs, Inc.   Internet software & services      
 2,727,939 Common Stock Warrants (exercise price $0.0001) expiration date 7/8/2025       375
 —
        375
 —
 Valet Merger Sub, Inc.   Environmental & facilities services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 9/24/2021 (13) 8.57%   50,532
 49,935
 50,531
 First Lien Revolver, LIBOR+7% (1% floor) cash due 9/24/2021 (10)(13) 8.57%     (115) —
        49,820
 50,531
 Argon Medical Devices, Inc.   Healthcare equipment      
 Second Lien Term Loan, LIBOR+9.5% (1% floor) cash due 6/23/2022 (13) 11.07%   43,000
 43,000
 43,000
        43,000
 43,000
See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
PaySimple, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+5.50% cash due 8/23/20255.65 %$49,410 $48,631 $48,422 (6)(20)
48,631 48,422 
Pingora MSR Opportunity Fund I-A, LPThrifts & Mortgage Finance
1.86% limited partnership interest752 113 (11)(16)(19)
752 113 
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %21,484 21,162 21,484 (6)(20)
21,162 21,484 
ProFrac Services, LLCIndustrial Machinery
First Lien Term Loan, LIBOR+7.50% cash due 9/15/20238.75 %15,007 14,925 11,818 (6)(20)
14,925 11,818 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/20278.15 %3,750 3,750 3,675 (6)(20)
3,750 3,675 
Pug LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+8.00% cash due 2/12/20278.75 %15,701 14,803 16,015 (6)
14,803 16,015 
QuorumLabs, Inc.Application Software
64,887,669 Junior-2 Preferred Stock375 — (20)
375 — 
Refac Optical GroupSpecialty Stores
1,550.9435 Shares of Common Stock in Refac Holdings, Inc.1 — (20)
550.9435 Series A-2 Preferred Stock in Refac Holdings, Inc., 10%305 — (20)
1,000 Series A-1 Preferred Stock in Refac Holdings, Inc., 10%999 — (20)
1,305 — 
Salient CRGT, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %2,911 2,898 2,802 (6)(20)
2,898 2,802 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/202612,277 9,738 10,312 (20)
9,738 10,312 
ShareThis, Inc.Application Software
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024367 — (20)
367 — 
Sorrento Therapeutics, Inc.Biotechnology
125,000 Common Stock Warrants (exercise price $3.94) expiration date 11/3/2029— 625 (11)(20)
— 625 
Supermoose Borrower, LLCApplication Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20254.00 %10,170 8,969 9,540 (6)
8,969 9,540 
Swordfish Merger Sub LLCAuto Parts & Equipment
Second Lien Term Loan, LIBOR+6.75% cash due 2/2/20267.75 %12,500 12,460 11,016 (6)(20)
12,460 11,016 
14
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Lytx, Inc.   Research & consulting services      
3,500 Class A Units in Lytx Holdings, LLC       $2,478
 $2,509
3,500 Class B Units in Lytx Holdings, LLC       —
 1,596
        2,478
 4,105
 Onvoy, LLC    Integrated telecommunication services      
 Second Lien Term Loan, LIBOR+10.5% (1% floor) cash due 2/10/2025 (13) 12.19%   $16,750
 16,750
 12,939
 19,666.67 Class A Units in GTCR Onvoy Holdings, LLC       1,967
 166
 13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC       —
 —
        18,717
 13,105
 4 Over International, LLC    Commercial printing      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 6/7/2022 (13) 7.57%   6,045
 5,985
 6,045
 First Lien Revolver, LIBOR+6% (1% floor) cash due 6/7/2021 (10)(13) 7.57%     (17) —
        5,968
 6,045
 Ping Identity Corporation    Internet software & services      
 First Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/30/2021 (13) 10.82%   42,500
 41,605
 42,929
 First Lien Revolver, LIBOR+9.25% (1% floor) cash due 6/30/2021 (10)(13) 10.82%     (55) 25
        41,550
 42,954
 Ancile Solutions, Inc.    Internet software & services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 6/30/2021 (13) 8.69%   10,198
 9,990
 10,106
        9,990
 10,106
 Ministry Brands, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (13) 6.38%   3,891
 3,859
 3,925
 First Lien Delayed Draw Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (13) 6.38%   1,685
 1,669
 1,705
 Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (13) 10.63%   7,056
 6,968
 7,090
 Second Lien Delayed Draw Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (13) 10.63%   1,944
 1,919
 1,953
 First Lien Revolver LIBOR+5% (1% floor) cash due 12/2/2022 (13) 6.57%   1,000
 991
 1,009
        15,406
 15,682
 California Pizza Kitchen, Inc.   Restaurants      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 8/23/2022 (13)(21) 7.57%   4,938
 4,898
 4,851
        4,898
 4,851
 Aptos, Inc.   Data processing & outsourced services      
 First Lien Term Loan B, LIBOR+6.75% (1% floor) cash due 9/1/2022 (13) 8.44%   5,411
 5,325
 5,357
        5,325
 5,357
 SPC Partners VI, L.P.    Multi-sector holdings      
 0.39% limited partnership interest (11)(25)       139
 139
        139
 139
 Impact Sales, LLC    Advertising      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 12/30/2021 (13) 8.33%   11,138
 10,942
 11,104
 Delayed Draw Term Loan, LIBOR+7% (1% floor) cash due 12/30/2021 (13) 8.33%   512
 436
 501
        11,378
 11,605

See notes to Consolidated Financial Statements.


Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Tacala, LLCRestaurants
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/20288.25 %$9,448 $9,302 $9,357 (6)
9,302 9,357 
Telestream Holdings CorporationApplication Software
First Lien Term Loan, LIBOR+8.75% cash due 10/15/20259.75 %15,020 14,749 14,720 (6)(20)
First Lien Revolver, LIBOR+8.75% cash due 10/15/2025— (27)(28)(6)(19)(20)
14,722 14,692 
TerSera Therapeutics LLCPharmaceuticals
Second Lien Term Loan, LIBOR+9.50% cash due 3/30/202410.50 %29,663 29,268 29,372 (6)(20)
668,879 Common Units of TerSera Holdings LLC2,192 3,487 (20)
31,460 32,859 
Thrasio, LLCSpecialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 12/18/20268.00 %17,213 16,783 16,783 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/18/2026— (284)(284)(6)(19)(20)
16,499 16,499 
TIBCO Software Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/20287.40 %16,788 16,677 17,012 (6)
16,677 17,012 
TigerConnect, Inc.Application Software
299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/202460 525 (20)
60 525 
Transact Holdings Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 4/30/20264.90 %6,913 6,809 6,757 (6)(20)
6,809 6,757 
Truck Hero, Inc.Auto Parts & Equipment
Second Lien Term Loan, LIBOR+8.25% cash due 4/21/20259.25 %21,500 21,191 21,500 (6)(20)
21,191 21,500 
Verscend Holding Corp.Health Care Technology
First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.65 %14,488 14,441 14,510 (6)
Fixed Rate Bond, 9.75% cash due 8/15/20267,000 7,019 7,599 
21,460 22,109 
Vitalyst Holdings, Inc.IT Consulting & Other Services
675 Series A Preferred Stock Units675 440 (20)
7,500 Class A Common Stock Units75 — (20)
750 440 
William Morris Endeavor Entertainment, LLCMovies & Entertainment
First Lien Term Loan, LIBOR+8.50% cash due 5/18/20259.50 %33,214 31,611 34,190 (6)(20)
31,611 34,190 
Windstream Services II, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %25,870 24,876 25,377 (6)
6,129 Shares of Common Stock in Windstream Holdings II, LLC53 90 (20)
37,215 Warrants in Windstream Holdings II, LLC853 546 (20)
25,782 26,013 
WP CPP Holdings, LLCAerospace & Defense
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %15,000 14,898 12,713 (6)(20)
14,898 12,713 
15
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 DFT Intermediate LLC    Specialized finance      
 First Lien Term Revolver, LIBOR+5.5% (1% floor) cash due 3/1/2022 (13) 7.07%   $3,300
 $3,224
 $3,276
        3,224
 3,276
 TerSera Therapeutics, LLC    Pharmaceuticals      
 Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 3/30/2024 (13) 10.94%   15,000
 14,603
 14,676
 668,879 Common Units of TerSera Holdings LLC       1,500
 1,816
        16,103
 16,492
 Cablevision Systems Corp.    Integrated telecommunication services      
 Fixed Rate Bond 10.875% cash due 10/15/2025 (11)(21) 

   5,897
 7,046
 7,017
        7,046
 7,017
 HC2 Holdings Inc.    Multi-sector holdings      
 Fixed Rate Bond 11% cash due 12/1/2019 (11)(21) 

   10,500
 10,641
 10,723
        10,641
 10,723
 Natural Resource Partners LP    Precious metals & minerals      
 Fixed Rate Bond 10.5% cash due 3/15/2022 (11)(21) 

   7,000
 7,426
 7,490
        7,426
 7,490
 Virgin Media    Integrated telecommunication services      
 Fixed Rate Bond 5.5% cash due 8/15/2026 (11)(21) 

   2,000
 2,036
 2,055
 Fixed Rate Bond 5.25% cash due 1/15/2026 (11)(21)     3,000
 3,006
 3,041
        5,042
 5,096
 Scientific Games International, Inc.    Casinos & gaming      
 First Lien Term Loan B4, LIBOR+3.25% cash due 8/14/2024 (13)(21) 4.67%   11,340
 11,277
 11,446
        11,277
 11,446
 Salient CRGT Inc.    IT consulting & other services      
 First Lien Term Loan, LIBOR+5.75% (1% floor) cash due 2/28/2022 (13)(21) 7.32%   3,368
 3,310
 3,397
        3,310
 3,397
 Allied Universal Holdco LLC    Security & alarm services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 7/28/2022 (13)(21) 5.44%   11,939
 12,014
 11,863
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 7/27/2023 (13)(21) 9.88%   1,149
 1,170
 1,148
        13,184
 13,011
 Truck Hero, Inc.    Auto parts & equipment      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 4/21/2025 (13) 9.89%   21,500
 21,191
 21,661
        21,191
 21,661
 BMC Software Finance, Inc.    Internet software & services      
 First Lien Term Loan, LIBOR+3.25% (1% floor) cash due 9/10/2022 (13)(21) 4.82%   16,834
 16,946
 16,875
        16,946
 16,875
 Internet Pipeline, Inc.    Internet software & services      
 Incremental First Lien Term Loan, LIBOR+6.25% (1% floor) cash due 8/1/2022 (13) 7.74%   5,578
 5,516
 5,689
        5,516
 5,689
 MHE Intermediate Holdings, LLC    Diversified support services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/11/2024 (13) 6.69%   2,985
 2,958
 2,985
        2,958
 2,985
See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
WPEngine, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 3/27/20267.50 %$14,188 $13,879 $13,969 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.50% cash due 3/27/2026— (575)(406)(6)(19)(20)
13,304 13,563 
xMatters, Inc.Application Software
600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025709 336 (20)
709 336 
Zep Inc.Specialty Chemicals
First Lien Term Loan, LIBOR+4.00% cash due 8/12/20245.00 %1,950 1,894 1,909 (6)
Second Lien Term Loan, LIBOR+8.25% cash due 8/11/20259.25 %23,807 23,737 22,147 (6)(20)
25,631 24,056 
Zephyr Bidco LimitedSpecialized Finance
Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/20267.52 %£18,000 23,732 23,952 (6)(11)
23,732 23,952 
Total Non-Control/Non-Affiliate Investments (155.0% of net assets)$1,503,368 $1,495,593 
Total Portfolio Investments (177.5% of net assets)$1,757,661 $1,712,324 
Cash and Cash Equivalents
JP Morgan Prime Money Market Fund, Institutional Shares $20,966 $20,966 
Other cash accounts3,268 3,268 
Total Cash and Cash Equivalents (2.5% of net assets)$24,234 $24,234 
Total Portfolio Investments and Cash and Cash Equivalents (180.0% of net assets)$1,781,895 $1,736,558 


Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract$36,999 £27,894 2/11/2021JPMorgan Chase Bank, N.A.$(1,141)
Foreign currency forward contract$30,308 €25,614 2/11/2021JPMorgan Chase Bank, N.A.(1,062)
$(2,203)

16
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 PowerPlan Holdings, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 2/23/2022 (13) 6.82%   $4,975
 $4,932
 $4,975
        4,932
 4,975
 UOS, LLC   Trucking      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash due 4/18/2023 (13)(21) 7.07%   6,898
 7,055
 7,062
        7,055
 7,062
 Veritas US Inc.    Internet software & services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 1/27/2023 (13)(21) 6.19%   34,821
 35,233
 34,949
        35,233
 34,949
 Staples, Inc.    Distributors      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 8/12/2024 (13)(21) 5.49%   6,633
 6,617
 6,516
        6,617
 6,516
 Zep Inc.    Housewares & Specialties      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 8/11/2025 (13) 9.63%   30,000
 29,856
 29,925
        29,856
 29,925
 DTZ U.S. Borrower, LLC   Real estate services      
 First Lien Term Loan, LIBOR+3.25% (1% floor) cash due 11/4/2021 (13)(21) 4.94%   12,934
 12,974
 12,786
        12,974
 12,786
 Micro Holding Corp.    Internet software & services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 9/13/2024 (13)(21) 5.34%   5,985
 5,957
 6,012
        5,957
 6,012
 Accudyne Industries, LLC    Oil & gas equipment services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 8/18/2024 (13)(21) 5.32%   19,865
 19,924
 20,035
        19,924
 20,035
 McAfee, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2024 (13)(21) 6.07%   7,980
 7,904
 7,966
 Second Lien Term Loan LIBOR+8.5% (1% floor) cash due 9/29/2025 (13)(21) 10.07%   8,000
 8,050
 8,040
        15,954
 16,006
 99 Cents Only Stores LLC    General merchandise stores      
 First Lien Term Loan LIBOR+5% 1.50% PIK due 1/13/2022 (13)(21) 6.57%   4,605
 4,206
 4,484
        4,206
 4,484
 Navicure, Inc.    Health care technology      
 Second Lien Term Loan, LIBOR+7.5% (1% floor) cash due 10/31/2025 (13)(21) 8.86%   14,500
 14,357
 14,609
        14,357
 14,609
 Strategic Materials Holdings Corp.    Health care distributors      
 Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 10/27/2025 (13)(21) 9.13%   9,000
 8,911
 9,053
        8,911
 9,053
 Lanai Holdings III, Inc.    Environmental & facilities services      
 First Lien Term Loan B, LIBOR+4.75% (1% floor) cash due 8/29/2022 (13)(21) 6.23%   20,254
 19,754
 19,444
        19,754
 19,444
 Vine Oil & Gas LP    Oil & gas exploration & production      
 First Lien Term Loan B, LIBOR+6.875% (1% floor) cash due 11/25/2021 (13)(21) 8.44%   18,000
 17,913
 17,865
        17,913
 17,865


See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)



(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Sprint Capital Corp    Wireless telecommunication services      
 Fixed Rate Bond 6.875% cash due 11/15/2028 (11)(21) 

   $5,000
 $5,000
 $5,044
        5,000
 5,044
 Avantor Inc.    Commodity chemicals      
 Fixed Rate Bond 6% cash due 10/1/2024 (11)(21) 

   8,000
 7,980
 7,990
 Fixed Rate Bond 9% cash due 10/1/2025 (11)(21) 

   3,000
 2,969
 2,963
        10,949
 10,953
 Datto Inc.    Technology distributors      
 First Lien Term Loan LIBOR+8% (1% floor) cash due 12/7/2022 (13) 9.41%   35,000
 34,310
 34,300
 First Lien Revolver LIBOR+8% (1% floor) cash due 12/7/2022 (13) 9.41%     (46) (47)
        34,264
 34,253
 Altice Finco SA    Integrated telecommunication services      
 Fixed Rate Bond 8.125% cash due 1/15/2024 (11)(21) 

   3,000
 3,060
 3,150
 Fixed Rate Bond 7.625% cash due 2/15/2025 (11)(21) 

   2,000
 2,015
 2,043
        5,075
 5,193
 Numericable SFR SA    Integrated telecommunication services      
 Fixed Rate Bond 7.375% cash due 5/1/2026 (11)(21) 

   5,000
 5,125
 5,169
        5,125
 5,169
 CITGO Petroleum Corp    Oil & gas refining & marketing      
 First Lien Term Loan LIBOR+3.5% (1% floor) cash due 7/29/2021 (11)(13)(21) 4.84%   3,000
 2,948
 2,957
        2,948
 2,957
 CITGO Holding Inc.    Oil & gas refining & marketing      
 First Lien Term Loan LIBOR+8.5% (1% floor) cash due 5/12/2018 (11)(13)(21) 9.84%   29,658
 29,783
 30,029
        29,783
 30,029
 Asset International, Inc.    Research & consulting services      
 Second Lien Term Loan LIBOR+9.25% (1% floor) cash due 6/29/2025 (13) 10.94%   15,000
 14,657
 14,657
        14,657
 14,657
 Total Non-Control/Non-Affiliate Investments (131.9% of net assets)       $1,204,629
 $1,081,401
Total Portfolio Investments (172.7% of net assets)       $1,676,441
 $1,415,404
Cash and Cash Equivalents          
JP Morgan Prime Money Market Fund       $30,074
 $30,074
Other cash accounts       15,361
 15,361
Total Cash and Cash Equivalents (5.5% of net assets)       $45,435
 $45,435
Total Portfolio Investments, Cash and Cash Equivalents (178.2% of net assets)       $1,721,876
 $1,460,839

(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements.Statements for portfolio composition by geographic region.
(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
(3)Control Investments generally are defined by the Investment Company Act of 1940, as amended ("1940 Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(4)Affiliate Investments generally are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(5)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(6)Income producing through payment of dividends or distributions.
(7)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(8)Principal includes accumulated payment in kind ("PIK") interest and is net of repayments.
(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(4)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(5)Each of the Company's investments is pledged as collateral under the Credit Facility (as defined in Note 6 to the accompanying notes to the Consolidated Financial Statements).
(6)The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of December 31, 2020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.25%, the 180-day LIBOR at 0.26%, the 360-day LIBOR at 0.34%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.02%, the 180-day UK LIBOR at 0.22%, the 30-day EURIBOR at (0.61)% and the 180-day EURIBOR at (0.36)%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(7)Principal includes accumulated payment in kind ("PIK") interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.
(8)Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(9)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the three months ended December 31, 2020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(10)First Star Speir Aviation 1 Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with Accounting Standards Update ("ASU") 2013-08, the Company has deemed the holding company to be an investment company under accounting principles generally accepted in the United States ("GAAP") and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2020, qualifying assets represented 75.3% of the Company's total assets and non-qualifying assets represented 24.7% of the Company's total assets.
(12)Income producing through payment of dividends or distributions.
(13)PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment. As a result, the principal amount of the investment does not increase over time for accumulated PIK interest. As of December 31, 2020, the accumulated PIK interest balance for each of the A notes and the B notes was $4.9 million. The fair value of this investment is inclusive of PIK.
(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(15)This investment was on cash non-accrual status as of December 31, 2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
(16)This investment was valued using net asset value as a practical expedient for fair value. Consistent with Financial Accounting Standards Board ("FASB") guidance under Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), these investments are excluded from the hierarchical levels.
(17)Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(18)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(19)Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
17
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 20172020
(dollar amounts in thousands)
(unaudited)


(20)As of December 31, 2020, these investments were categorized as Level 3 within the fair value hierarchy established by ASC 820.

(9)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(10)Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2017, qualifying assets represented 77.3% of the Company's total assets and non-qualifying assets represented 22.7% of the Company's total assets.
(12)
The sale of a portion of this loan does not qualify for true sale accounting under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 860 - Transfers and Servicing ("ASC 860"), and therefore, the entire debt investment remains in the Consolidated Schedule of Investments. Accordingly, the fair value of the Company's debt investments includes $11.6 million related to the Company's secured borrowings. (See Note 14 in the accompanying notes to the Consolidated Financial Statements.)



(13)The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate based rate based on each respective credit agreement and the cash interest rate as of period end.
(14)With the exception of investments held by the Company’s wholly-owned subsidiaries that have each received a license from the U.S. Small Business Administration (“SBA”) to operate as a small business investment company (“SBIC”), each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(15)As defined in the 1940 Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the three months ended December 31, 2017 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(16)First Star Bermuda Aviation Limited and First Star Speir Aviation 1 Limited are wholly-owned holding companies formed by the Company in order to facilitate its investment strategy. In accordance with Accounting Standards Update ("ASU") 2013-08, the Company has deemed the holding companies to be investment companies under accounting principles generally accepted in the United States ("GAAP") and therefore deemed it appropriate to consolidate the financial results and financial position of the holding companies and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding companies are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(17)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(18)The Class A Mezzanine Secured Deferrable Floating Rate Notes bear interest at a rate of LIBOR plus the applicable margin as defined in the indenture. The Class A Mezzanine Secured Deferrable Floating Rate Notes and Class B Mezzanine Secured Deferrable Fixed Rate Notes are collectively referred to as the "mezzanine notes".
(19)In June 2017, the Company sold all of its investments in Eagle Hospital Physicians, LLC ("Eagle Physicians") in exchange for cash and the right to receive contingent payments in the future based on the performance of Eagle Physicians, which is referred to as an "earn-out" in the consolidated schedule of investments. Prior to the sale of its investments in Eagle Physicians, the Company may have been deemed to control Eagle Physicians within the meaning of the 1940 Act due to the fact that the Company owned greater than 25% of the voting securities in Eagle Physicians. After the sale and as of December 31, 2017, the Company no longer owns any of the voting securities in Eagle Physicians and is not deemed to control Eagle Physicians within the meaning of the 1940 Act.
(20)Payments on the Company's investment in Maverick Healthcare Group, LLC ("Maverick Healthcare") are currently past due. In May 2017, the Company entered into a forbearance agreement with Maverick Healthcare in which the Company has temporarily agreed not to take action against Maverick Healthcare. As of December 31, 2017, the forbearance agreement extends to February 28, 2018.
(21)
As of December 31, 2017, these investments are categorized as Level 2 within the fair value hierarchy established by FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"). All other investments are categorized as Level 3 as of December 31, 2017 and were valued using significant unobservable inputs.
(22)This investment was on cash non-accrual status as of December 31, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
(23)This investment was on PIK non-accrual status as of December 31, 2017. PIK non-accrual status is inclusive of other non-cash income, where applicable.
(24)As of December 31, 2017, payments on the Company's investment in TransTrade Operators, Inc. were past due.
(25)This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.
See notes to Consolidated Financial Statements.







































18
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Control Investments(8)(9)
C5 Technology Holdings, LLCData Processing & Outsourced Services
829 Common Units$— $— (20)
34,984,460.37 Preferred Units34,984 27,638 (20)
34,984 27,638 
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.00 %$27,660 27,660 27,660 (6)(20)
First Lien Revolver, LIBOR+5.00% cash due 2/28/20246.00 %5,260 5,260 5,260 (6)(19)(20)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC18,626 7,667 (20)
51,546 40,587 
First Star Speir Aviation LimitedAirlines(10)
First Lien Term Loan, 9.00% cash due 12/15/202011,510 2,035 11,510 (11)(20)
100% equity interest8,500 1,622 (11)(12)(20)
10,535 13,132 
New IPT, Inc.Oil & Gas Equipment & Services
First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %2,304 2,304 1,800  (6)(20)
First Lien Revolver, LIBOR+5.00% cash due 3/17/20216.00 %1,009 1,009 788  (6)(19)(20)
50.087 Class A Common Units in New IPT Holdings, LLC— — (20)
3,313 2,588 
Senior Loan Fund JV I, LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/20287.17 %96,250 96,250 96,250 (6)(11)(20)
87.5% LLC equity interest49,322 21,190 (11)(16)(19)
145,572 117,440 
 Total Control Investments (22.0% of net assets)$245,950 $201,385 
 Affiliate Investments(17)
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %$4,688 $4,688 $4,194 (6)(19)(20)
1,609,201 Class A Units764 483 (20)
1,019,168.80 Preferred Units, 6%1,019 1,091 (20)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (20)
6,471 5,768 
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%1,080 741 (20)
1,080 741 
 Total Affiliate Investments (0.7% of net assets)$7,551 $6,509 
 Non-Control/Non-Affiliate Investments(18)
4 Over International, LLCCommercial Printing
First Lien Term Loan, LIBOR+6.00% cash due 6/7/20227.00 %$5,676 $5,654 $5,264 (6)(20)
First Lien Revolver, LIBOR+6.00% cash due 6/7/20217.00 %2,232 2,214 2,070 (6)(20)
7,868 7,334 
99 Cents Only Stores LLCGeneral Merchandise Stores
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/20226.00 %19,431 19,220 17,877 (6)
19,220 17,877 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 12.00% cash due 4/27/202322,619 22,619 26,464 (11)(20)
First Lien Delayed Draw Term Loan, 12.00% cash due 4/27/20231,508 1,508 1,780 (11)(19)(20)
24,127 28,244 
19
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
Control Investments (3)(15)          
Traffic Solutions Holdings, Inc.   Construction and engineering      
 First Lien Term Loan, LIBOR+7% (1% floor) cash 2% PIK due 4/1/2021 (13) 8.34%   $36,567
 $36,539
 $36,568
 First Lien Revolver, LIBOR+6% (1% floor) cash due 4/1/2021 (13) 7.34%   1,250
 1,247
 1,250
 LC Facility, 6% cash due 4/1/2021     4,752
 4,748
 4,752
 746,114 Series A Preferred Units, 10%       20,029
 7,700
 746,114 Shares of Common Stock       5,316
 —
        67,879
 50,270
 TransTrade Operators, Inc.   Air freight & logistics      
 First Lien Term Loan, 5% cash due 12/31/2017 (23)     15,973
 15,574
 1,810
 First Lien Revolver, 8% cash due 12/31/2017 (23)     7,757
 7,757
 —
 596.67 Series A Common Units       —
 —
 4,000 Series A Preferred Units in TransTrade Holdings LLC       4,000
 —
 5,200,000 Series B Preferred Units in TransTrade Holdings LLC       5,200
 —
        32,531
 1,810
 First Star Speir Aviation Limited (11)(16)   Airlines      
 First Lien Term Loan, 9% cash due 12/15/2020     41,395
 34,542
 41,395
 100% equity interest (6)       8,500
 3,926
        43,042
 45,321
 First Star Bermuda Aviation Limited (11)(16)   Airlines      
 First Lien Term Loan, 9% cash 3% PIK due 8/19/2018     11,868
 11,868
 11,868
 100% equity interest (6)       2,693
 2,323
        14,561
 14,191
 Eagle Hospital Physicians, LLC   Healthcare services      
 Earn-out (19)       7,851
 4,986
        7,851
 4,986
 Senior Loan Fund JV I, LLC (11)(17)(18)   Multi-sector holdings      
 Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC (13) 6.88%   101,030
 101,030
 101,030
 Class B Mezzanine Secured Deferrable Fixed Rate Notes, 15% PIK due 2036 in SLF Repack Issuer 2016 LLC     27,641
 27,641
 27,641
 87.5% LLC equity interest (6)(25)       16,172
 5,525
        144,843
 134,196
 Ameritox Ltd.   Healthcare services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 (13)(23) 6.33%   38,338
 37,539
 4,445
 14,090,126.4 Class A Preferred Units in Ameritox Holdings II, LLC       14,090
 —
 1,602,260.83 Class B Preferred Units in Ameritox Holdings II, LLC       1,602
 —
 4,930.03 Class A Units in Ameritox Holdings II, LLC       29,049
 —
        82,280
 4,445
 New IPT, Inc.    Oil & gas equipment services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/17/2021 (13) 6.33%   4,107
 4,107
 4,107
 Second Lien Term Loan, LIBOR+5.1% (1% floor) cash due 9/17/2021 (13) 6.43%   2,504
 2,504
 2,504
 First Lien Revolver, LIBOR+5% (1% floor) cash due 3/17/2021 (13) 6.33%   1,009
 1,009
 1,009
 50.087 Class A Common Units in New IPT Holdings, LLC       —
 736
        7,620
 8,356
 AdVenture Interactive, Corp.   Advertising      
 9,073 shares of common stock       13,611
 13,818
        13,611
 13,818
 Keypath Education, Inc. (20)   Advertising      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 4/3/2022 (13) 8.33%   19,960
 19,960
 19,960
 First Lien Revolver, LIBOR+7% (1% floor) cash due 4/3/2022 (13) 8.33%   —
 —
 —
 9,073 Class A Units in FS AVI Holdco, LLC       10,648
 7,918
        30,608
 27,878
 Total Control Investments (35.2% of net assets)       $444,826
 $305,271
See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Access CIG, LLCDiversified Support Services
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/20267.91 %$15,000 $14,909 $14,250 (6)
14,909 14,250 
Accupac, Inc.Personal Products
First Lien Term Loan, LIBOR+6.00% cash due 1/17/20267.00 %12,487 12,294 12,487 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026— (36)— (6)(19)(20)
First Lien Revolver, LIBOR+6.00% cash due 1/17/20267.00 %1,564 1,540 1,564 (6)(20)
13,798 14,051 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.00 %20,950 20,594 20,499 (6)(20)
First Lien Revolver, LIBOR+7.00% cash due 10/31/2025— (39)(48)(6)(19)(20)
20,555 20,451 
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.5,165 — (20)
5,165 — 
AdVenture Interactive, Corp.Advertising
9,073 shares of common stock13,611 13,440 (20)
13,611 13,440 
AI Ladder (Luxembourg) Subco S.a.r.l.Electrical Components & Equipment
First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.65 %21,374 20,934 20,465 (6)(11)
20,934 20,465 
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %€24,838 27,668 28,435 (6)(11)(20)
27,668 28,435 
Airbnb, Inc.Hotels, Resorts & Cruise Lines
First Lien Term Loan, LIBOR+7.50% cash due 4/17/20258.50 %$15,743 15,378 17,081 (6)
15,378 17,081 
AirStrip Technologies, Inc.Application Software
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/202590 — (20)
90 — 
Aldevron, L.L.C.Biotechnology
First Lien Term Loan, LIBOR+4.25% cash due 10/12/20265.25 %7,960 7,880 7,977 (6)
7,880 7,977 
Algeco Scotsman Global Finance PlcConstruction & Engineering
Fixed Rate Bond, 8.00% cash due 2/15/202313,524 13,277 13,465 (11)
13,277 13,465 
Alvotech Holdings S.A.Biotechnology(13)
Fixed Rate Bond 15% PIK Note A due 12/13/202314,800 18,849 19,968 (11)(20)
Fixed Rate Bond 15% PIK Note B due 12/13/202314,800 18,849 19,196 (11)(20)
37,698 39,164 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.00% cash due 11/26/20264.75 %995 909 856 (6)(11)(20)
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/20278.75 %12,500 12,188 9,438 (6)(11)(20)
13,097 10,294 
20
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 Affiliate Investments (4)          
 Caregiver Services, Inc.   Healthcare services      
 Second Lien Term Loan, 10% cash 2% PIK due 6/30/2019     $9,719
 $9,719
 $9,665
 1,080,399 Shares of Series A Preferred Stock, 10%       1,080
 2,534
        10,799
 12,199
 AmBath/ReBath Holdings, Inc.   Home improvement retail      
 First Lien Term Loan B, 12.5% cash 2.5% PIK due 8/31/2018     22,955
 22,944
 22,957
 4,668,788 Shares of Preferred Stock       —
 1,827
        22,944
 24,784
 Total Affiliate Investments (4.3% of net assets)       $33,743
 $36,983
           
 Non-Control/Non-Affiliate Investments (7)          
 Cenegenics, LLC   Healthcare services      
 First Lien Term Loan, 9.75% cash 2% PIK due 9/30/2019 (23)     28,600
 $27,737
 $15,811
 First Lien Revolver, 15% cash due 9/30/2019 (23)     2,203
 2,203
 1,218
 452,914.87 Common Units in Cenegenics, LLC       598
 —
 345,380.141 Preferred Units in Cenegenics, LLC       300
 —
        30,838
 17,029
 Riverlake Equity Partners II, LP   Multi-sector holdings      
 1.92% limited partnership interest (11)(25)       870
 625
        870
 625
 Riverside Fund IV, LP   Multi-sector holdings      
 0.34% limited partnership interest (11)(25)       219
 397
        219
 397
 Bunker Hill Capital II (QP), L.P.   Multi-sector holdings      
 0.51% limited partnership interest (11)(25)       826
 1,056
        826
 1,056
 Maverick Healthcare Group, LLC (21)   Healthcare equipment      
 First Lien Term Loan A, LIBOR+7.5% cash (1.75% floor) cash due 4/30/2017 (13)(23) 9.25%   16,309
 16,204
 14,209
 First Lien Term Loan B, LIBOR+11% cash (1.75% floor) cash due 4/30/2017 (13)(23) 12.75%   41,739
 39,110
 14,531
 CapEx Line, LIBOR+7.75% (1.75% floor) cash due 4/30/2017 (13)(23) 9.50%   1,272
 1,261
 1,124
 First Lien Revolver, PRIME+6.5% cash due 4/30/2017 (13)(23) 10.75%   55
 40
 55
        56,615
 29,919
 Refac Optical Group   Specialty stores      
 First Lien Term Loan A, LIBOR+8% cash due 9/30/2018 (13) 9.23%   4,027
 3,997
 4,027
 First Lien Term Loan B, LIBOR+9% cash, 1.75% PIK due 9/30/2018 (13) 10.23%   34,621
 34,533
 34,275
 First Lien Term Loan C, 12.5% cash due 9/30/2018     3,416
 3,416
 3,314
 First Lien Revolver, LIBOR+8% cash due 9/30/2018 (13) 9.23%   3,520
 3,516
 3,520
 1,550.9435 Shares of Common Stock in Refac Holdings, Inc.       1
 —
 550.9435 Shares of Series A-2 Preferred Stock in Refac Holdings, Inc., 10%       305
 —
 1,000 Shares of Series A Preferred Stock Units in Refac Holdings, Inc., 10%       999
 397
        46,767
 45,533
 Baird Capital Partners V, LP   Multi-sector holdings      
 0.4% limited partnership interest (11)(25)       994
 601
        994
 601
 Milestone Partners IV, L.P.   Multi-sector holdings      
 0.82% limited partnership interest (11)(25)       948
 1,527
        948
 1,527
See notes to Consolidated Financial Statements.



Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Ancile Solutions, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 6/30/20218.00 %$8,181 $8,150 $8,124  (6)(20)
8,150 8,124 
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %23,764 23,420 23,297 (6)(20)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025— (22)(30)(6)(19)(20)
23,398 23,267 
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+7.50% cash due 7/14/20268.50 %€1,440 1,594 1,640 (6)(11)(20)
First Lien Term Loan, UK LIBOR+7.50% cash due 7/14/20268.25 %£11,303 13,752 14,188 (6)(11)(20)
First Lien Delayed Draw Term Loan, UK LIBOR+7.50% cash due 7/14/2026£— — — (6)(11)(19)(20)
Fixed Rate Bond, 11.50% cash due 1/15/2027$2,222 2,200 2,255 (11)
17,546 18,083 
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.25 %2,554 2,150 2,073 (6)
2,150 2,073 
Asurion, LLCProperty & Casualty Insurance
Second Lien Term Loan, LIBOR+6.50% cash due 8/4/20256.65 %19,985 19,950 20,058 (6)
19,950 20,058 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202628,475 27,252 28,261 (11)(20)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (321)(171)(11)(19)(20)
266,052 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027915 785 (11)(20)
27,846 28,875 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %22,885 22,376 21,283 (6)(11)(20)
22,376 21,283 
Blackhawk Network Holdings, Inc.Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20267.19 %26,250 26,049 24,150 (6)
26,049 24,150 
Boxer Parent Company Inc.Systems Software
First Lien Term Loan, LIBOR+4.25% cash due 10/2/20254.40 %13,775 13,666 13,407 (6)
13,666 13,407 
BX Commercial Mortgage Trust 2020-VIVADiversified Real Estate Activities
Class D Variable Notes due 3/9/20443.67 %12,556 10,482 11,451 (6)(11)(20)
Class E Variable Notes due 3/9/20443.67 %6,221 4,806 5,395 (6)(11)(20)
15,288 16,846 
California Pizza Kitchen, Inc.Restaurants
First Lien Term Loan, LIBOR+8.00% cash due 8/23/20223,222 3,081 983 (6)(21)
3,081 983 
Chief Power Finance II, LLCIndependent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/20227.50 %21,850 21,462 20,812 (6)(20)
21,462 20,812 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.00 %11,753 11,570 11,081 (6)
Fixed Rate Bond, 9.25% cash due 8/1/202410,672 10,672 10,192 
22,242 21,273 
21
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 RCPDirect, L.P.   Multi-sector holdings      
 0.9% limited partnership interest (11)(25)       $354
 $559
        354
 559
 Riverside Fund V, L.P.   Multi-sector holdings      
 0.48% limited partnership interest (11)(25)       1,452
 1,405
        1,452
 1,405
 ACON Equity Partners III, LP   Multi-sector holdings      
 0.13% limited partnership interest (11)(25)       785
 962
        785
 962
 BMC Acquisition, Inc.   Other diversified financial services      
 500 Series A Preferred Shares       500
 763
 50,000 Common Shares (6)       1
 67
        501
 830
 Edmentum, Inc.   Education services      
 Unsecured Senior PIK Note, 8.5% PIK due 6/9/2020     $2,434
 2,434
 1,922
 Unsecured Junior PIK Note, 10% PIK due 6/9/2020 (24)    11,304
 10,227
 379
 Unsecured Revolver, 5% cash due 6/9/2020       —
 —
 126,127.80 Class A Common Units       126
 —
        12,787
 2,301
 I Drive Safely, LLC   Education services      
125,079 Class A Common Units of IDS Investments, LLC       1,000
 —
        1,000
 —
 Yeti Acquisition, LLC   Leisure products      
 3,000,000 Common Stock Units of Yeti Holdings, Inc.       —
 5,900
        —
 5,900
 Vitalyst Holdings, Inc.   IT consulting & other services      
 675 Series A Preferred Units of PCH Support Holdings, Inc., 10%       675
 511
 7,500 Class A Common Stock Units of PCH Support Holdings, Inc.       75
 —
        750
 511
 Beecken Petty O'Keefe Fund IV, L.P.   Multi-sector holdings      
 0.5% limited partnership interest (11)(25)       1,014
 1,310
        1,014
 1,310
 Comprehensive Pharmacy Services LLC   Pharmaceuticals      
 20,000 Common Shares in MCP CPS Group Holdings, Inc.       2,000
 2,776
        2,000
 2,776
 Garretson Firm Resolution Group, Inc.   Diversified support services      
 First Lien Revolver, PRIME+5.5% cash due 5/22/2020 (13) 9.75%   25
 25
 25
 4,950,000 Preferred Units in GRG Holdings, LP, 8%       495
 198
 50,000 Common Units in GRG Holdings, LP       5
 —
        525
 223
 Teaching Strategies, LLC   Education services      
 Second Lien Term Loan, LIBOR+9.5% (1% floor) cash due 8/27/2023 (13) 10.83%   33,500
 33,500
 33,964
        33,500
 33,964

See notes to Consolidated Financial Statements.







Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+5.00% cash due 3/28/20246.00 %$8,979 $8,890 $8,553 (6)
8,890 8,553 
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/202524,741 24,741 21,753 (6)(20)
Common Stock Warrants expiration date 7/28/2025— 1,672 (20)
24,741 23,425 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.15 %14,621 14,169 13,465 (6)
14,169 13,465 
Conviva Inc.Application Software
417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021105 395 (20)
105 395 
Corrona, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %10,300 10,144 10,152 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/2025— (32)(52)(6)(19)(20)
First Lien Revolver, PRIME+4.50% cash due 12/13/20257.75 %305 277 279 (6)(19)(20)
1,099 Class A2 Common Units in Corrona Group Holdings, L.P.1,038 1,038 (20)
11,427 11,417 
Coyote Buyer, LLCSpecialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.00 %13,123 12,992 12,992 (6)(20)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025— (9)(9)(6)(19)(20)
12,983 12,983 
CTOS, LLCTrading Companies & Distributors
First Lien Term Loan, LIBOR+4.25% cash due 4/18/20254.40 %10,139 10,228 10,069 (6)
10,228 10,069 
Eagleview Technology CorporationApplication Software
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/20268.50 %12,000 11,880 10,440 (6)(20)
11,880 10,440 
EHR Canada, LLCFood Retail
First Lien Term Loan, LIBOR+8.00% cash due 12/4/20209.00 %6,861 6,851 6,998 (6)(20)
6,851 6,998 
EOS Fitness Opco Holdings, LLCLeisure Facilities
487.5 Class A Preferred Units, 12%488 49 (20)
12,500 Class B Common Units— — (20)
488 49 
ExamSoft Worldwide, Inc.Application Software
180,707 Class C Units in ExamSoft Investor LLC181 500 (20)
181 500 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/20258,346 7,842 7,908 (11)(20)
243,348 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030258 419 (11)(20)
8,100 8,327 
GI Chill Acquisition LLCManaged Health Care
First Lien Term Loan, LIBOR+4.00% cash due 8/6/20254.22 %17,640 17,552 17,331 (6)(20)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/20267.72 %10,000 9,927 9,350 (6)(20)
27,479 26,681 
22
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 Dominion Diagnostics, LLC   Healthcare services      
 Subordinated Term Loan, 11% cash 1% PIK due 10/8/2019 (23)     $19,866
 $17,625
 $8,534
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 4/8/2019 (13) 6.30%   49,414
 37,574
 44,592
 First Lien Revolver, LIBOR+5% (1% floor) cash due 4/8/2019 (13) 6.30%     —
 —
        55,199
 53,126
 Sterling Capital Partners IV, L.P.   Multi-sector holdings      
 0.2% limited partnership interest (11)(25)       1,770
 1,297
        1,770
 1,297
 Advanced Pain Management   Healthcare services      
 First Lien Term Loan, LIBOR+8.5% (1.25% floor) cash due 2/26/2018 (13)(23) 9.75%   24,000
 23,409
 1,157
        23,409
 1,157
 TravelClick, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 11/6/2021 (13) 8.99%   2,697
 2,475
 2,710
        2,475
 2,710
 Pingora MSR Opportunity Fund I-A, LP   Thrift & mortgage finance      
 1.86% limited partnership interest (11)(25)       7,240
 6,129
        7,240
 6,129
 Credit Infonet, Inc.   Data processing & outsourced services      
 Subordinated Term Loan, 12.25% cash 0.75% PIK due 10/26/2020     13,940
 13,940
 13,941
        13,940
 13,941
 HealthEdge Software, Inc.   Application software      
 482,453 Series A-3 Preferred Stock Warrants (exercise price $1.450918) expiration date 9/30/2023       213
 768
        213
 768
 InMotion Entertainment Group, LLC   Consumer electronics      
 First Lien Term Loan A, LIBOR+7.75% (1.25% floor) cash due 10/1/2018 (13) 9.09%   12,259
 12,223
 12,259
 First Lien Term Loan B, LIBOR+7.75% (1.25% floor) cash due 10/1/2018 (13) 9.09%   5,344
 5,265
 5,344
 First Lien Revolver, LIBOR+6.25% cash due 10/1/2018 (13) 6.25%   3,904
 3,897
 3,904
 CapEx Line, LIBOR+7.75% (1.25% floor) cash due 10/1/2018 (13) 9.09%   797
 789
 797
 1,000,000 Class A Units in InMotion Entertainment Holdings, LLC       1,000
 1,761
        23,174
 24,065
 Thing5, LLC   Data processing & outsourced services      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash 2% PIK due 10/11/2020 (12)(13) 8.83%   47,530
 47,530
 40,900
 First Lien Revolver, LIBOR+7.5% (1% floor) cash due 10/11/2020 (13) 8.83%   1,000
 1,000
 1,000
 2,000,000 Units in T5 Investment Vehicle, LLC       2,000
 —
        50,530
 41,900
 Kason Corporation   Industrial machinery      
 Mezzanine Term Loan, 11.5% cash 1.75% PIK due 10/28/2019     6,006
 6,006
 5,850
 498.6 Class A Preferred Units in Kason Investment, LLC, 8%       499
 569
 5,540 Class A Common Units in Kason Investment, LLC       55
 —
        6,560
 6,419
 SPC Partners V, L.P.   Multi-sector holdings      
 0.571% limited partnership interest (11)(25)       1,762
 1,857
        1,762
 1,857
See notes to Consolidated Financial Statements.


Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
GKD Index Partners, LLCSpecialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 6/29/20238.00 %$20,933 $20,818 $20,577 (6)(20)
First Lien Revolver, LIBOR+7.00% cash due 6/29/20238.00 %924 915 904 (6)(19)(20)
21,733 21,481 
Global Medical ResponseHealth Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %6,256 6,152 6,084 (6)
6,152 6,084 
Guidehouse LLPResearch & Consulting Services
First Lien Term Loan, LIBOR+4.50% cash due 5/1/20254.65 %4,949 4,907 4,912 (6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.15 %20,000 19,930 19,300 (6)(20)
24,837 24,212 
Gulf Operating, LLCOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+5.25% cash due 8/25/20236.25 %3,275 1,874 2,324 (6)
1,874 2,324 
Houghton Mifflin Harcourt Publishers Inc.Education Services
First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.25 %6,738 6,508 6,300 (6)(11)
6,508 6,300 
I Drive Safely, LLCEducation Services
125,079 Class A Common Units of IDS Investments, LLC1,000 200 (20)
1,000 200 
IBG Borrower LLCApparel, Accessories & Luxury Goods
First Lien Term Loan, LIBOR+7.00% cash due 8/2/20227.25 %9,056 8,569 7,856 (6)(20)
8,569 7,856 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50 %16,718 16,493 16,584 (6)(20)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024— (15)(7)(6)(19)(20)
16,478 16,577 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20256.75 %6,477 6,354 6,347 (6)(20)
First Lien Revolver, LIBOR+5.75% cash due 7/2/2025— (10)(11)(6)(19)(20)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/20259.00 %15,611 15,316 15,298 (6)(20)
21,660 21,634 
Integral Development CorporationOther Diversified Financial Services
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024113 — (20)
113 — 
L Squared Capital Partners LLCMulti-Sector Holdings
2.00% limited partnership interest887 2,192 (11)(16)
887 2,192 
Lanai Holdings III, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+4.75% cash due 8/29/20225.75 %12,948 12,810 12,260 (6)
12,810 12,260 
Lannett Company, Inc.Pharmaceuticals
First Lien Term Loan, LIBOR+5.00% cash due 11/25/20206.00 %460 460 456 (6)(11)
460 456 
23
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 P2 Upstream Acquisition Co.    Application software      
 First Lien Revolver, LIBOR+4% (1% floor) cash due 11/1/2018 (10)(13) 5.33%     $—
 $(238)
        —
 (238)
 OmniSYS Acquisition Corporation   Diversified support services      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash due 11/21/2018 (13) 8.83%   $5,500
 5,495
 5,468
 First Lien Revolver, LIBOR+7.5% (1% floor) cash due 11/21/2018 (10)(13) 8.83%     —
 (15)
 100,000 Common Units in OSYS Holdings, LLC       1,000
 903
        6,495
 6,356
 Moelis Capital Partners Opportunity Fund I-B, LP   Multi-sector holdings      
 1.0% limited partnership interest (11)(25)       1,045
 1,457
        1,045
 1,457
 Aden & Anais Merger Sub, Inc.   Apparel, accessories & luxury goods      
 51,645 Common Units in Aden & Anais Holdings, Inc.       5,165
 1,241
        5,165
 1,241
 Lift Brands, Inc.   Leisure facilities      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash due 12/23/2019 (13) 8.83%   21,371
 21,358
 21,370
 First Lien Revolver, LIBOR+7.5% (1% floor) cash due 12/23/2019 (10)(13) 8.83%     (3) (1)
 2,000,000 Class A Common Units in Snap Investments, LLC       2,004
 2,922
        23,359
 24,291
 Tailwind Capital Partners II, L.P.   Multi-sector holdings      
 0.3% limited partnership interest (11)(25)       1,583
 1,956
        1,583
 1,956
 Long's Drugs Incorporated   Pharmaceuticals      
 Second Lien Term Loan, LIBOR+11.25% cash due 2/19/2022 (13) 12.49%   26,909
 26,909
 27,447
 50 Series A Preferred Shares in Long's Drugs Incorporated       813
 1,267
        27,722
 28,714
 Conviva Inc.   Application software      
 417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021       105
 169
        105
 169
 OnCourse Learning Corporation   Education services      
 264,312 Class A Units in CIP OCL Investments, LLC       2,726
 1,988
        2,726
 1,988
 ShareThis, Inc.   Internet software & services      
 345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024       367
 8
        367
 8
 Aptean, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+9.5% (1% floor) cash due 12/20/2023 (13) 10.84%   5,900
 5,821
 5,952
        5,821
 5,952
 ExamSoft Worldwide, Inc.   Internet software & services      
 180,707 Class C Units in ExamSoft Investor LLC       181
 135
        181
 135

See notes to Consolidated Financial Statements.






Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Lift Brands Holdings, Inc.Leisure Facilities
2,000,000 Class A Common Units in Snap Investments, LLC$1,399 $— (20)
1,399 — 
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.15 %$39,500 39,023 37,723 (6)(20)
39,023 37,723 
LogMeIn, Inc.Application Software
Second Lien Term Loan, LIBOR+9.00% cash due 8/31/20289.16 %9,293 8,831 9,247 (6)
8,831 9,247 
LTI Holdings, Inc.Electronic Components
First Lien Term Loan, LIBOR+4.75% cash due 7/24/20264.90 %1,794 1,513 1,685 (6)
First Lien Term Loan, LIBOR+3.50% cash due 9/6/20253.65 %18,082 15,087 16,884 (6)
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20266.90 %9,000 9,000 7,983 (6)
25,600 26,552 
Maravai Intermediate Holdings, LLCBiotechnology
First Lien Term Loan, LIBOR+4.25% cash due 8/1/20255.25 %11,760 11,642 11,789 (6)(20)
11,642 11,789 
Mauser Packaging Solutions Holding CompanyMetal & Glass Containers
Fixed Rate Bond, 8.50% cash due 4/15/202411,378 11,273 11,833 
11,273 11,833 
Mayfield Agency Borrower Inc.Property & Casualty Insurance
First Lien Term Loan, LIBOR+4.50% cash due 2/28/20254.65 %28,823 28,045 26,679 (6)
28,045 26,679 
McAfee, LLCSystems Software
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/20259.50 %7,000 7,028 7,074 (6)
7,028 7,074 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+5.00% cash due 3/8/20246.00 %2,910 2,888 2,832 (6)(20)
2,888 2,832 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/20258.00 %29,097 28,675 26,828 (6)(20)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (44)(241)(6)(19)(20)
28,631 26,587 
Ministry Brands, LLCApplication Software
First Lien Revolver, LIBOR+5.00% cash due 12/2/20226.00 %575 566 566 (6)(19)(20)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/202310.25 %9,000 8,934 8,923 (6)(20)
9,500 9,489 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %14,369 14,242 14,022 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (59)(144)(6)(19)(20)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (13)(31)(6)(19)(20)
14,170 13,847 
24
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8)
 Cost Fair Value
 DigiCert, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+9% (1% floor) cash due 10/21/2022 (13) 10.24%   $61,500
 $60,980
 $61,500
        60,980
 61,500
 RCPDirect II, LP   Multi-sector holdings      
 0.4% limited partnership interest (11)(25)       617
 719
        617
 719
 Integral Development Corporation   Other diversified financial services      
 First Lien Term Loan, LIBOR+9.5% (1% floor) cash due 7/10/2019 (13) 10.80%   11,500
 11,466
 10,815
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024       113
 —
        11,579
 10,815
 Loftware, Inc.   Internet software & services      
 Mezzanine Term Loan, 11% cash 1% PIK due 7/18/2020     6,198
 6,198
 6,198
 300,000 Class A Common Units in RPLF Holdings, LLC       300
 220
        6,498
 6,418
 Webster Capital III, L.P.   Multi-sector holdings      
0.754% limited partnership interest (11)(25)       1,020
 1,296
        1,020
 1,296
 L Squared Capital Partners LLC   Multi-sector holdings      
 2% limited partnership interest (11)(25)       2,660
 2,660
        2,660
 2,660
 BeyondTrust Software, Inc.   Application software      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 9/25/2019 (13) 8.33%   26,677
 26,174
 26,676
 First Lien Revolver, LIBOR+7% (1% floor) cash due 9/25/2019 (10)(13) 8.33%     (54) —
 4,500,000 Class A membership interests in BeyondTrust Holdings LLC       4,500
 5,660
        30,620
 32,336
 GOBP Holdings Inc.   Food retail      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 10/21/2022 (13) 9.58%   4,214
 4,176
 4,251
        4,176
 4,251
 Kellermeyer Bergensons Services, LLC   Diversified support services      
 Second Lien Term Loan, LIBOR+8.50% (1% floor) cash due 4/29/2022 (13) 9.81%   6,105
 5,907
 5,983
        5,907
 5,983
 Dodge Data & Analytics LLC   Data processing & outsourced services      
 First Lien Term Loan, LIBOR+8.75% (1% floor) cash due 10/31/2019 (13) 10.13%   7,348
 7,348
 6,881
 500,000 Class A Common Units in Skyline Data, News and Analytics LLC       500
 202
        7,848
 7,083
 Metamorph US 3, LLC   Internet software & services      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash 2% PIK due 12/1/2020 (13)(23) 6.74%   9,969
 9,550
 3,816
 First Lien Revolver, LIBOR+6.5% (1% floor) cash due 12/1/2020 (10)(13)(23) 7.74%   2,205
 2,203
 (74)
        11,753
 3,742

See notes to Consolidated Financial Statements.




Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.00 %$35,306 $33,918 $33,894 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024— (175)(175)(6)(19)(20)
33,743 33,719 
NuStar Logistics, L.P.Oil & Gas Refining & Marketing
Unsecured Delayed Draw Term Loan, 12.00% cash due 4/19/2023— — — (19)(20)
— — 
Olaplex, Inc.Personal Products
First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %35,056 34,441 35,056 (6)(20)
First Lien Revolver, LIBOR+6.50% cash due 1/8/20257.50 %1,917 1,852 1,917 (6)(19)(20)
36,293 36,973 
OmniSYS Acquisition CorporationDiversified Support Services
100,000 Common Units in OSYS Holdings, LLC1,000 607 (20)
1,000 607 
Onvoy, LLCIntegrated Telecommunication Services
Second Lien Term Loan, LIBOR+10.50% cash due 2/10/202511.50 %16,750 16,750 15,142 (6)(20)
19,666.67 Class A Units in GTCR Onvoy Holdings, LLC1,967 268 (20)
13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC— — (20)
18,717 15,410 
OZLM Funding III, Ltd.Multi-Sector Holdings
Class DR Notes, LIBOR+7.77% cash due 1/22/20298.03 %2,312 1,657 2,119 (6)(11)
1,657 2,119 
PaySimple, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+5.50% cash due 8/23/20255.65 %49,535 48,711 47,801 (6)(20)
48,711 47,801 
Pingora MSR Opportunity Fund I-A, LPThrifts & Mortgage Finance
1.86% limited partnership interest938 353 (11)(16)(19)
938 353 
PLATO Learning Inc.Education Services
Unsecured Senior PIK Note, 8.50% PIK due 12/9/20213,099 2,434 — (15)(20)
Unsecured Junior PIK Note, 10.00% PIK due 12/9/202115,010 10,227 — (15)(20)
Unsecured Revolver, 5.00% cash due 12/9/20212,938 2,631 588 (20)(21)
126,127.80 Class A Common Units of Edmentum126 — (20)
15,418 588 
ProFrac Services, LLCIndustrial Machinery
First Lien Term Loan, LIBOR+7.50% cash due 9/15/20238.75 %15,170 15,081 11,643 (6)(20)
15,081 11,643 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/20278.15 %3,750 3,750 3,375 (6)(20)
3,750 3,375 
25
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Schulman Associates Institutional Board Review, Inc.   Research & consulting services      
 Second Lien Term Loan, LIBOR+8% (1% floor) cash due 6/3/2021 (13) 9.30%   $17,000
 $17,000
 $17,000
        17,000
 17,000
 Janrain, Inc.   Internet software & services      
 218,008 Common Stock Warrants (exercise price $1.3761) expiration date 12/5/2024       45
 —
        45
 —
 TigerText, Inc.   Internet software & services      
 299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024       60
 409
        60
 409
 Survey Sampling International, LLC   Research & consulting services      
 Second Lien Term Loan, LIBOR+9% (1% floor) cash due 12/16/2021 (13) 10.27%   18,700
 18,475
 18,513
        18,475
 18,513
 PSC Industrial Holdings Corp.   Diversified support services      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 12/3/2021 (13) 9.49%   7,000
 6,839
 7,000
        6,839
 7,000
 EOS Fitness Opco Holdings, LLC   Leisure facilities      
 First Lien Term Loan, LIBOR+8.75% (0.75% floor) cash due 12/30/2019 (13) 9.99%   3,675
 3,675
 3,711
 First Lien Revolver, LIBOR+8.75% (0.75% floor) cash due 12/30/2019 (13) 9.99%     —
 50
 487.5 Class A Preferred Units, 12%       488
 678
 12,500 Class B Common Units       13
 463
        4,176
 4,902
 Motion Recruitment Partners LLC   Human resources & employment services      
 First Lien Revolver, LIBOR+6% (1% floor) cash due 2/13/2020 (10)(13) 7.24%     (6) —
        (6) —
 WeddingWire, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+8.5% (1% floor) cash due 2/20/2020 (13) 9.84%   25,781
 25,781
 25,911
 First Lien Revolver, LIBOR+8.5% (1% floor) cash due 2/20/2020 (13) 9.84%     —
 15
 483,645 Common Shares of WeddingWire, Inc.       1,200
 1,607
        26,981
 27,533
 xMatters, Inc.   Internet software & services      
 600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025       709
 368
        709
 368
 Edge Fitness, LLC   Leisure facilities      
 Delayed Draw Term Loan, LIBOR+7.75% (1% floor) cash due 6/30/2020 (13) 9.05%   3,398
 3,398
 3,397
        3,398
 3,397
 Golden State Medical Supply, Inc.   Pharmaceuticals      
 Mezzanine Term Loan, 10% cash 2.5% PIK due 4/24/2021     15,001
 15,001
 14,835
        15,001
 14,835
 AirStrip Technologies, Inc.   Internet software & services      
 22,858.71 Series C-1 Preferred Stock Warrants (exercise price $34.99757) expiration date 5/11/2025       90
 —
        90
 —

See notes to Consolidated Financial Statements.


Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Pug LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+8.00% cash due 2/12/20278.75 %$15,740 $14,802 $15,307 (6)
14,802 15,307 
QuorumLabs, Inc.Application Software
64,887,669 Junior-2 Preferred Stock375 — (20)
375 — 
Refac Optical GroupSpecialty Stores
1,550.9435 Shares of Common Stock in Refac Holdings, Inc.1 — (20)
550.9435 Series A-2 Preferred Stock in Refac Holdings, Inc., 10%305 — (20)
1,000 Series A-1 Preferred Stock in Refac Holdings, Inc., 10%999 — (20)
1,305 — 
Salient CRGT, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %2,955 2,938 2,748 (6)(20)
2,938 2,748 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/202615,585 12,069 12,468 (20)
12,069 12,468 
ShareThis, Inc.Application Software
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024367 — (20)
367 — 
Sorrento Therapeutics, Inc.Biotechnology
125,000 Common Stock Warrants (exercise price $3.94) expiration date 11/3/2029— 1,123 (11)(20)
— 1,123 
Supermoose Borrower, LLCApplication Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.90 %10,196 8,925 9,193 (6)
8,925 9,193 
Surgery Center Holdings, Inc.Health Care Facilities
First Lien Term Loan, LIBOR+3.25% cash due 9/3/20244.25 %3,850 3,133 3,640 (6)(11)
3,133 3,640 
Swordfish Merger Sub LLCAuto Parts & Equipment
Second Lien Term Loan, LIBOR+6.75% cash due 2/2/20267.75 %12,500 12,458 10,563 (6)(20)
12,458 10,563 
Tacala, LLCRestaurants
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/20287.65 %7,276 7,167 6,903 (6)
7,167 6,903 
TerSera Therapeutics LLCPharmaceuticals
Second Lien Term Loan, LIBOR+9.50% cash due 3/30/202410.50 %29,663 29,236 29,371 (6)(20)
668,879 Common Units of TerSera Holdings LLC2,192 3,487 (20)
31,428 32,858 
TIBCO Software Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/20287.40 %15,000 14,925 14,766 (6)
14,925 14,766 
TigerConnect, Inc.Application Software
299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/202460 525 (20)
60 525 
Transact Holdings Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 4/30/20264.90 %6,930 6,826 6,553 (6)(20)
6,826 6,553 
26
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Access Medical Acquisition, Inc.   Healthcare services      
 450,000 Shares of Class A Common Stock in CMG Holding Company, LLC (6)       $151
 $970
        151
 970
 QuorumLabs, Inc.   Internet software & services      
 2,727,939 Common Stock Warrants (exercise price $0.0001) expiration date 7/8/2025       375
 —
        375
 —
 Poseidon Merger Sub, Inc.   Advertising      
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 8/15/2023 (13) 9.81%   $30,000
 29,101
 30,300
        29,101
 30,300
 Valet Merger Sub, Inc.   Environmental & facilities services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 9/24/2021 (13) 8.24%   50,661
 50,016
 50,660
 First Lien Revolver, LIBOR+7% (1% floor) cash due 9/24/2021 (10)(13) 8.24%   —
 (115) —
        49,901
 50,660
 Argon Medical Devices, Inc.   Healthcare equipment      
 Second Lien Term Loan, LIBOR+9.5% (1% floor) cash due 6/23/2022 (13) 10.74%   43,000
 43,000
 43,002
        43,000
 43,002
 Lytx, Inc.   Research & consulting services      
3,500 Class A Units in Lytx Holdings, LLC       2,478
 2,459
3,500 Class B Units in Lytx Holdings, LLC       —
 559
        2,478
 3,018
 Onvoy, LLC    Integrated telecommunication services      
 Second Lien Term Loan, LIBOR+10.5% (1% floor) cash due 2/10/2025 (13) 11.83%   16,750
 16,750
 16,704
 19,666.67 Class A Units in GTCR Onvoy Holdings, LLC       1,967
 2,088
 13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC       —
 —
        18,717
 18,792
 4 Over International, LLC    Commercial printing      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 6/7/2022 (13) 7.24%   6,045
 6,001
 6,045
 First Lien Revolver, LIBOR+6% (1% floor) cash due 6/7/2021 (10)(13) 7.24%     (17) —
        5,984
 6,045
 Ping Identity Corporation    Internet software & services      
 First Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/30/2021 (13) 10.49%   42,500
 41,557
 43,176
 First Lien Revolver, LIBOR+9.25% (1% floor) cash due 6/30/2021 (10)(13) 10.49%     (55) 40
        41,502
 43,216
 Ancile Solutions, Inc.    Internet software & services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 6/30/2021 (13) 8.33%   10,330
 10,104
 10,248
        10,104
 10,248

See notes to Consolidated Financial Statements.








Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Truck Hero, Inc.Auto Parts & Equipment
Second Lien Term Loan, LIBOR+8.25% cash due 4/21/20259.25 %$21,500 $21,191 $20,819 (6)(20)
21,191 20,819 
U.S. Renal Care, Inc.Health Care Services
First Lien Term Loan, LIBOR+5.00% cash due 6/26/20265.15 %1,122 934 1,096 (6)
934 1,096 
Uniti Group Inc.Specialized REITs
21,072 Common Units— 133 222 (11)(12)
133 222 
Verscend Holding Corp.Health Care Technology
First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.65 %14,525 14,479 14,429 (6)
Fixed Rate Bond, 9.75% cash due 8/15/20267,000 7,020 7,629 
21,499 22,058 
Vertex Aerospace Services Corp.Aerospace & Defense
First Lien Term Loan, LIBOR+4.50% cash due 6/29/20254.65 %10,168 10,133 10,073 (6)
10,133 10,073 
Vitalyst Holdings, Inc.IT Consulting & Other Services
675 Series A Preferred Stock Units675 440 (20)
7,500 Class A Common Stock Units75 — (20)
750 440 
William Morris Endeavor Entertainment, LLCMovies & Entertainment
First Lien Term Loan, LIBOR+8.50% cash due 5/18/20259.50 %33,298 31,594 33,298 (6)(20)
31,594 33,298 
Windstream Services II, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %25,935 24,900 25,168 (6)
6,129 Shares of Common Stock in Windstream Holdings II, LLC53 69 (20)
37,215 Warrants in Windstream Holdings II, LLC913 444 (20)
25,866 25,681 
WP CPP Holdings, LLCAerospace & Defense
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %15,000 14,893 11,700 (6)(20)
14,893 11,700 
WPEngine, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 3/27/20267.50 %14,188 13,863 13,949 (6)(20)
First Lien Delayed Draw Term Loan, LIBOR+6.50% cash due 3/27/2026— (602)(443)(6)(19)(20)
13,261 13,506 
xMatters, Inc.Application Software
600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025709 336 (20)
709 336 
Zep Inc.Specialty Chemicals
First Lien Term Loan, LIBOR+4.00% cash due 8/12/20245.00 %1,955 1,895 1,845 (6)
Second Lien Term Loan, LIBOR+8.25% cash due 8/11/20259.25 %30,000 29,908 24,180 (6)(20)
31,803 26,025 
Zephyr Bidco LimitedSpecialized Finance
Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/20267.55 %£18,000 23,705 21,176 (6)(11)
23,705 21,176 
Total Non-Control/Non-Affiliate Investments (149.3% of net assets)$1,415,669 $1,365,957 
27
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Ministry Brands, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (13) 6.24%   $3,891
 $3,857
 $3,891
 First Lien Delayed Draw Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (13) 6.24%   1,352
 1,336
 1,352
 Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (13) 10.49%   7,056
 6,964
 7,056
 Second Lien Delayed Draw Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (13) 10.49%   1,944
 1,918
 1,944
 First Lien Revolver LIBOR+5% (1% floor) cash due 12/2/2022 (10)(13) 6.24%   —
 (9) —
        14,066
 14,243
 Sailpoint Technologies, Inc.   Application software      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 8/16/2021 (13) 8.33%   20,870
 20,529
 20,870
 First Lien Revolver, LIBOR+7% (1% floor) cash due 8/16/2021 (10)(13) 8.33%     (22) —
        20,507
 20,870
 California Pizza Kitchen, Inc.   Restaurants      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 8/23/2022 (13) 7.24%   4,950
 4,910
 4,917
        4,910
 4,917
 Aptos, Inc.   Data processing & outsourced services      
 First Lien Term Loan B, LIBOR+6.75% (1% floor) cash due 9/1/2022 (13) 8.08%   5,445
 5,354
 5,391
        5,354
 5,391
 SPC Partners VI, L.P.    Multi-sector holdings      
 0.39% limited partnership interest (11)(25)       —
 —
        —
 —
 Impact Sales, LLC    Advertising      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 12/30/2021 (13) 8.30%   11,166
 10,955
 11,145
 Delayed Draw Term Loan, LIBOR+7% (1% floor) cash due 12/30/2021 (13) 8.30%   513
 443
 506
        11,398
 11,651
 DFT Intermediate LLC    Specialized finance      
 First Lien Term Revolver, LIBOR+5.5% (1% floor) cash due 3/1/2022 (13) 6.74%   3,300
 3,224
 3,278
        3,224
 3,278
 Systems, Inc.    Industrial machinery      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 3/3/2022 (13) 6.57%   8,668
 8,553
 8,625
 First Lien Revolver, LIBOR+5.25% (1% floor) cash due 3/3/2022 (10)(13) 6.57%     (40) (40)
        8,513
 8,585
 TerSera Therapeutics, LLC    Pharmaceuticals      
 Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 3/30/2024 (13) 10.58%   15,000
 14,586
 14,629
 668,879 Common Units of TerSera Holdings LLC       1,500
 1,816
        16,086
 16,445
 Cablevision Systems Corp.    Integrated telecommunication services      
 Fixed Rate Bond 10.875% cash due 10/15/2025 (22)     5,897
 7,077
 7,298
        7,077
 7,298
See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Total Portfolio Investments (172.0% of net assets)$1,669,170 $1,573,851 
Cash and Cash Equivalents
JP Morgan Prime Money Market Fund, Institutional Shares $35,248 $35,248 
Other cash accounts3,848 3,848 
Total Cash and Cash Equivalents (4.3% of net assets)$39,096 $39,096 
Total Portfolio Investments and Cash and Cash Equivalents (176.3% of net assets)$1,708,266 $1,612,947 
Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract$35,577 £27,494 11/12/2020JPMorgan Chase Bank, N.A.$25 
Foreign currency forward contract$30,260 €25,614 11/12/2020JPMorgan Chase Bank, N.A.198 
$223 
28
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Terraform Power Operating    Multi-utilities      
 Fixed Rate Bond 6.375% cash due 2/1/2023 (11)(22)     $6,000
 $6,201
 $6,255
        6,201
 6,255
 HC2 Holdings Inc.    Multi-sector holdings      
 Fixed Rate Bond 11% cash due 12/1/2019 (11)(22)     10,500
 10,666
 10,631
        10,666
 10,631
 Natural Resource Partners LP    Precious metals & minerals      
 Fixed Rate Bond 10.5% cash due 3/15/2022 (11)(22)     7,000
 7,459
 7,464
        7,459
 7,464
 Virgin Media    Integrated telecommunication services      
 Fixed Rate Bond 5.5% cash due 8/15/2026 (11)(22)     2,000
 2,038
 2,108
 Fixed Rate Bond 5.25% cash due 1/15/2026 (11)(22)     3,000
 3,009
 3,161
        5,047
 5,269
 Scientific Games International, Inc.    Casinos & gaming      
 First Lien Term Loan B4, LIBOR+3.25% cash due 8/14/2024 (13)(22) 4.58%   11,368
 11,313
 11,402
        11,313
 11,402
 ASHCO, LLC    Specialty stores      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 12/15/2023 (13) 6.24%   12,000
 11,762
 11,335
        11,762
 11,335
 Salient CRGT Inc.    IT consulting & other services      
 First Lien Term Loan, LIBOR+5.75% (1% floor) cash due 2/28/2022 (13) 6.99%   3,440
 3,377
 3,416
        3,377
 3,416
 BJ's Wholesale Club, Inc.    Hypermarkets & super centers      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 1/26/2024 (13)(22) 4.99%   11,970
 11,979
 11,504
        11,979
 11,504
 Everi Payments Inc.    Casinos & gaming      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 5/9/2024 (13)(22) 5.74%   11,970
 11,996
 12,093
        11,996
 12,093
 LSF9 Atlantis Holdings, LLC    Computer & electronics retail      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 5/1/2023 (13) 7.24%   6,459
 6,399
 6,498
        6,399
 6,498
 Allied Universal Holdco LLC    Security & alarm services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 7/28/2022 (13)(22) 5.08%   11,970
 12,043
 11,958
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 7/27/2023 (13)(22) 9.81%   1,149
 1,171
 1,145
        13,214
 13,103
 Truck Hero, Inc.    Auto parts & equipment      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 4/21/2025 (13) 9.58%   21,500
 21,191
 21,715
        21,191
 21,715
 BMC Software Finance, Inc.    Internet software & services      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 9/10/2022 (13)(22) 5.24%   16,881
 16,999
 16,993
        16,999
 16,993
See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172020
(dollar amounts in thousands)


(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 Internet Pipeline, Inc.    Internet software & services      
 Incremental First Lien Term Loan, LIBOR+6.25% (1% floor) cash due 8/1/2022 (13) 7.48%   $5,565
 $5,513
 $5,677
        5,513
 5,677
 CCC Information Services Inc.    Internet software & services      
 Second Lien Term Loan, LIBOR+6.75% (1% floor) cash due 3/13/2025 (13) 7.99%   2,500
 2,559
 2,581
        2,559
 2,581
 Hyland Software Inc.    Internet software & services      
 Second Lien Term Loan, LIBOR+7% (1% floor) cash due 7/7/2025 (13) 8.24%   2,000
 1,991
 1,980
        1,991
 1,980
 Idera, Inc.    Internet software & services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 6/27/2024 (13) 6.24%   6,926
 6,910
 6,978
        6,910
 6,978
 MHE Intermediate Holdings, LLC    Diversified support services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/11/2024 (13) 6.33%   2,993
 2,964
 2,993
        2,964
 2,993
 PowerPlan Holdings, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 2/23/2022 (13) 6.49%   4,988
 4,941
 4,987
        4,941
 4,987
 UOS, LLC   Trucking      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash due 4/18/2023 (13) 6.74%   6,916
 7,081
 7,106
        7,081
 7,106
 Veritas US Inc.    Internet software & services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 1/27/2023 (13)(22) 5.83%   34,947
 35,379
 35,336
        35,379
 35,336
 Staples, Inc.    Distributors      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 8/12/2024 (13)(22) 5.31%   10,000
 9,976
 9,967
 Fixed Rate Bond 8.5% cash due 9/15/2025 (22)     5,000
 4,988
 4,863
        14,964
 14,830
 Zep Inc.    Housewares & Specialties      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 8/11/2025 (13) 9.48%   30,000
 29,852
 29,775
        29,852
 29,775
 DTZ U.S. Borrower, LLC   Real estate services      
 First Lien Term Loan, LIBOR+3.25% (1% floor) cash due 11/4/2021 (13)(22) 4.57%   12,967
 13,011
 13,014
        13,011
 13,014
 Micro Holding Corp.    Internet software & services      
 First Lien Term Loan, LIBOR+3.5% (1% floor) cash due 9/15/2024 (13) 4.82%   6,000
 5,970
 5,978
        5,970
 5,978
 Accudyne Industries, LLC    Oil & gas equipment services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 8/18/2024 (13)(22) 5.01%   19,915
 19,977
 19,990
        19,977
 19,990
See notes to Consolidated Financial Statements.
(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.
Oaktree Specialty Lending Corporation(4)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(5)Each of the Company's investments is pledged as collateral under the Credit Facility (as defined in Note 6 to the accompanying notes to the Consolidated ScheduleFinancial Statements).
(6)The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of Investments
these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of September 30, 20172020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.22%, the 180-day LIBOR at 0.27%, the 360-day LIBOR at 0.37%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.05%, the 180-day UK LIBOR at 0.22%, the 30-day EURIBOR at (0.57)% and the 180-day EURIBOR at (0.36)%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(dollar amounts(7)Principal includes accumulated PIK interest and is net of repayments, if any. “£” signifies the investment is denominated in thousands)British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

(8)Control Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the Company's annual report on Form 10-K for the year ended September 30, 2020 for transactions during the year ended September 30, 2020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(10)First Star Speir Aviation 1 Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding company to be an investment company under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
Portfolio Company/Type of Investment (1)(2)(5)(9)(14)  Cash Interest Rate (13) Industry Principal (8) Cost Fair Value
 McAfee, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2024 (13) 5.83%   $8,000
 $7,921
 $8,083
        7,921
 8,083
 Total Non-Control/Non-Affiliate Investments (138.2% of net assets)       $1,279,096
 $1,199,501
Total Portfolio Investments (177.7% of net assets)       $1,757,665
 $1,541,755
Cash and Cash Equivalents          
JP Morgan Prime Money Market Fund       $48,808
 $48,808
Other cash accounts       4,210
 4,210
Total Cash and Cash Equivalents (6.1% of net assets)       $53,018
 $53,018
Total Portfolio Investments, Cash and Cash Equivalents (183.8% of net assets)       $1,810,683
 $1,594,773
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2020, qualifying assets represented 75.4% of the Company's total assets and non-qualifying assets represented 24.6% of the Company's total assets.
(12)Income producing through payment of dividends or distributions.
(13)PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment. As a result, the principal amount of the investment does not increase over time for accumulated PIK interest. As of September 30, 2020, the accumulated PIK interest balance for each of the A notes and the B notes was $4.3 million. The fair value of this investment is inclusive of PIK.
(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(15)This investment was on PIK non-accrual status as of September 30, 2020. PIK non-accrual status is inclusive of other non-cash income, where applicable.
(16)This investment was valued using net asset value as a practical expedient for fair value. Consistent with ASC 820, these investments are excluded from the hierarchical levels.
(17)Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(18)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(19)Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(20)As of September 30, 2020, these investments were categorized as Level 3 within the fair value hierarchy established by ASC 820.
(21)This investment was on cash non-accrual status as of September 30, 2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
See notes to Consolidated Financial Statements.

(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
(3)Control Investments generally are defined by the 1940 Act, as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(4)Affiliate Investments generally are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(5)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(6)Income producing through payment of dividends or distributions.
(7)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(8)Principal includes accumulated PIK interest and is net of repayments.
(9)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(10)Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2017, qualifying assets represented 83.6% of the Company's total assets and non-qualifying assets represented 16.4% of the Company's total assets.
(12)The sale of a portion of this loan does not qualify for true sale accounting under ASC 860, and therefore, the entire debt investment remains in the Consolidated Schedule of Investments. Accordingly, the fair value of the Company's debt investments includes $11.6 million related to the Company's secured borrowings. (See Note 14 in the accompanying notes to the Consolidated Financial Statements.)
(13)The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate based rate based on each respective credit agreement and the cash interest rate as of period end.
(14)With the exception of investments held by the Company’s wholly-owned subsidiaries that have each received a license from the SBA to operate as a SBIC, each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(15)As defined in the 1940 Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement).
(16)First Star Bermuda Aviation Limited and First Star Speir Aviation 1 Limited are wholly-owned holding companies formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding companies to be investment companies under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding companies and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding companies are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(17)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
Oaktree Specialty Lending Corporation29
Consolidated Schedule of Investments
September 30, 2017
(dollar amounts in thousands)


(18)In December 2016, the Company restructured its investment in Senior Loan Fund JV I, LLC. As part of the restructuring, the Company exchanged its subordinated notes for Class A Mezzanine Secured Deferrable Floating Rate Notes and Class B Mezzanine Secured Deferrable Fixed Rate Notes issued by a newly formed, wholly owned subsidiary, SLF Repack Issuer 2016 LLC. The Class A Mezzanine Secured Deferrable Floating Rate Notes bear interest at a rate of LIBOR plus the applicable margin as defined in the indenture. The Class A Mezzanine Secured Deferrable Floating Rate Notes and Class B Mezzanine Secured Deferrable Fixed Rate Notes are collectively referred to as the "mezzanine notes".
(19)In June 2017, the Company sold all of its investments in Eagle Physicians in exchange for cash and the right to receive contingent payments in the future based on the performance of Eagle Physicians, which is referred to as an "earn-out" in the consolidated schedule of investments. Prior to the sale of its investments in Eagle Physicians, the Company may have been deemed to control Eagle Physicians within the meaning of the 1940 Act due to the fact that the Company owned greater than 25% of the voting securities in Eagle Physicians. After the sale and as of September 30, 2017, the Company no longer owns any of the voting securities in Eagle Physicians and is not deemed to control Eagle Physicians within the meaning of the 1940 Act.
(20)In June 2017, AdVenture Interactive, Corp. reorganized its business to separate its marketing services business from its online program management business. In connection with the reorganization, FS AVI Holdco LLC was formed as a separate entity and is the new parent to Keypath Education, Inc., which represents AdVenture Interactive, Corp.'s former marketing services business, and the Company's first lien term loan and revolver with AdVenture Interactive, Corp. was assigned to Keypath Education, Inc.
(21)The Company's investment in Maverick Healthcare is currently past due. In May 2017, the Company entered into a forbearance agreement with Maverick Healthcare in which the Company has temporarily agreed not to take action against Maverick Healthcare.
(22)As of September 30, 2017, these investments are categorized as Level 2 within the fair value hierarchy established by ASC 820. All other investments are categorized as Level 3 as of September 30, 2017 and were valued using significant unobservable inputs.
(23)This investment was on cash non-accrual status as of September 30, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
(24)This investment was on PIK non-accrual status as of September 30, 2017. PIK non-accrual status is inclusive of other non-cash income, where applicable.
(25)This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.

See notes to Consolidated Financial Statements.


OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Note 1. Organization
Oaktree Specialty Lending Corporation (formerly known as Fifth Street Finance Corp. through October 17, 2017) (together with its consolidated subsidiaries, the "Company") is a specialty finance company that islooks to provide customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company was formed in late 2007 and operates as a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development companyBusiness Development Company under the 1940Investment Company Act. The Company has qualified and elected to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), for tax purposes.
The Company seeksCompany'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, bonds, preferred equity and preferred equity.certain equity co-investments. The Company may also seek to generate capital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions.
As of October 17, 2017, theThe Company is externally managed by Oaktree Capital Management, L.P. (“Oaktree” or the “Investment Adviser”Fund Advisors, LLC ("Oaktree"), a subsidiary of Oaktree Capital Group, LLC (“OCG”), a global investment manager specializing in alternative investments, pursuant to an investment advisory agreement between the Company and the Investment AdviserOaktree (the “New Investment“Investment Advisory Agreement”). Oaktree is an affiliate of Oaktree Capital Management, L.P. ("OCM"), the Company's external investment adviser from October 17, 2017 through May 3, 2020 and also a subsidiary of OCG. Oaktree Fund Administration, LLC (“Oaktree Administrator” or “OFA”), a subsidiary of the Investment Adviser,OCM, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and OFAOaktree Administrator (the “New Administration“Administration Agreement”). See Note 11.
Prior to October 17, 2017, the Company was externally managed by Fifth Street Management LLC (“FSM”), an indirect, partially-owned subsidiary of Fifth Street In 2019, Brookfield Asset Management Inc. ("Brookfield") acquired a majority economic interest in OCG. OCG operates as an independent business within Brookfield, with its own product offerings and investment, marketing and support teams.
On October 28, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Oaktree Strategic Income Corporation, a Delaware corporation (“FSAM”OCSI”), and FSC CT LLC ("FSC CT" or the "Former Administrator")Lion Merger Sub, Inc., a subsidiary of FSM, also provided certain administrativeDelaware corporation and other services necessary for the Company to operate pursuant to an administration agreement (the "Former Administration Agreement")
On September 7, 2017, stockholderswholly-owned subsidiary of the Company approved the New Investment Advisory Agreement to take effect upon the closing of the transactions contemplated by the Asset Purchase Agreement (the “Purchase Agreement”(“Merger Sub”), by and, among Oaktree, FSM, and,solely for certainthe limited purposes FSAM, and Fifth Street Holdings L.P., the direct, partial owner of FSM (the “Transaction”). Upon the closing of the Transaction on October 17, 2017,set forth therein, Oaktree, became the investment adviser to each of Oaktree Strategic Income Corporation (formerly known as Fifth Street Senior Floating Rate Corp.) (“OCSI”) and the Company. The closing of the Transaction resulted in an assignment for purposes of the 1940 Act of the investment advisory agreement between FSM and the Company and OCSI. The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), Merger Sub will merge with and into OCSI, with OCSI continuing as the surviving company and as a result, its immediate termination.wholly-owned subsidiary of the Company (the “Merger”) and, immediately thereafter, OCSI will merge with and into the Company, with the Company continuing as the surviving company (together with the Merger, the “Mergers”). Both the Company’s Board of Directors and the Board of Directors of OCSI, including all of the respective independent directors, in each case, on the recommendation of a special committee comprised solely of certain independent directors of the Company or OCSI, as applicable, have approved the Merger Agreement and the transactions contemplated thereby. For more information about the Mergers, see “Note 15. Pending Merger with OCSI”.

Note 2. Significant Accounting Policies
Basis of Presentation:
The Consolidated Financial Statements of the Company have been prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the Consolidated Financial Statements have been made. All intercompany balances and transactions have been eliminated. The Company is an investment company following the accounting and reporting guidance in FASB ASC Topic 946, Financial Services - Investment Companies ("ASC 946").
Use of Estimates:
The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Changes in the economic and political environments, financial markets and any other parameters used in determining these estimates could cause actual results to differ and such differences could be material. Significant estimates include the valuation of investments and revenue recognition.
Consolidation:
The accompanying Consolidated Financial Statements include the accounts of Oaktree Specialty Lending Corporation and its consolidated subsidiaries. Each consolidated subsidiary is wholly-owned and, as such, consolidated into the Consolidated Financial Statements. Certain subsidiaries that hold investments are treated as pass through entities for tax purposes. The assets of certain of the consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Specialty Lending Corporation or any of its other subsidiaries. As of December 31, 2017, the consolidated subsidiaries were Fifth Street Fund of Funds LLC ("Fund of Funds"), Fifth Street Funding II, LLC ("Funding II"), Fifth Street Mezzanine Partners IV, L.P. ("FSMP IV"), Fifth Street Mezzanine
30
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Partners V, L.P. ("FSMP V" and together with FSMP IV, the "SBIC Subsidiaries") and FSFC Holdings, Inc. ("Holdings"). In addition, the Company consolidates various holding companies held in connection with its equity investments in certain portfolio investments.
Since the Company isAs an investment company, portfolio investments held by the Company are not consolidated into the Consolidated Financial Statements. The portfolio investments held by the CompanyStatements but rather are included on the Statements of Assets and Liabilities as investments at fair value.

Fair Value Measurements:
The Company is required to report its investments for which current market values are not readily available at fair value. The Company values its investments in accordance with ASC 820, which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices derived from such prices over entity-specific inputs. Where observable prices or inputs are not available or reliable, valuation techniques are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments' complexity.
Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:
 
•Level 1 — Unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.
•Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data at the measurement date for substantially the full term of the assets or liabilities.
•Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
If inputs used to measure fair value fall into different levels of the fair value hierarchy, an investment's level is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. This includes investment securities that are valued using "bid" and "ask" prices obtained from independent third party pricing services or directly from brokers. These investments may be classified as Level 3 because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities or may require adjustments for investment-specific factors or restrictions.
Financial instruments with readily available quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. As such, the Investment AdviserOaktree obtains and analyzes readily available market quotations provided by independent pricing servicesvendors and brokers for all of the Company's first lien and second lien ("senior secured") debt investments for which quotations are available. In determining the fair value of a particular investment, pricing servicesvendors and brokers use observable market information, including both binding and non-binding indicative quotations.
The Investment AdviserCompany seeks to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If the Company is unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within the Company's set threshold, the Company seeks to obtain a quote directly from a broker making a market for the asset. Oaktree evaluates the quotations provided by independent pricing servicesvendors and company specific data that could affect the credit quality and/or fair valuebrokers based on available market information, including trading activity of the investment. Investments for which market quotationssubject or similar securities, or by performing a comparable security analysis to ensure that fair values are readily available may be valued at such market quotations.reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In orderaddition to validate market quotations,ongoing monitoring and back-testing, Oaktree performs due diligence procedures over pricing vendors to understand their methodology and controls to support their use in the Investment Adviser looks at a number of factors to determine ifvaluation process. Generally, the quotations are representative of fair value, including the source and nature of the quotations. The Investment AdviserCompany does not adjust any of the prices unless it has a reasonreceived from these sources.
If the quotations obtained from pricing vendors or brokers are determined to believe market quotationsnot be reliable or are not reflective of the fair value of an investment. Examples of events that would cause market quotations to not reflect fair value could include cases when a security trades infrequently causing a quoted purchase or sale price to become stale or in the event of a "fire sale" by a distressed seller. In these instances,readily available, the Company values such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available (as discussed below).
If the quotation provided by the pricing service is based on only one or two market sources, the Company performs additional procedures to corroborate such information, which may include the market yield technique discussed below and a quantitative and qualitative assessmentany of the credit quality and market trends affecting the portfolio company.
The Company performs detailed valuations of its debt and equity investments for which market quotations are not readily available or are deemed not to represent fair value of the investments. The Company typically uses three different valuation techniques. The first valuation technique is the transaction precedent technique, which utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable. The second valuation technique is an analysis of the enterprise value
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





("EV") of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that the Company is deemed to control under the 1940Investment Company Act. To estimate the EV of a portfolio company, the Investment AdviserOaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company and competitive dynamics in the company’s industry. The Investment AdviserOaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company: (i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase price multiplesprices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its
31
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company. The Company may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and the Company considers the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, the Company depends on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.
The Company estimates the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.
The Company's Board of Directors undertakes a multi-step valuation process each quarter in connection with determining the fair value of the Company's investments:
•The quarterly valuation process begins with each portfolio company or investment being initially valued by the Investment Adviser'sOaktree's valuation team in conjunction with the Investment Adviser'sOaktree's portfolio management team and investment professionals responsible for each portfolio investment;
•Preliminary valuations are then reviewed and discussed with management of the Investment Adviser;Oaktree;
•Separately, independent valuation firms engaged by the Board of Directors prepare valuations of the Company's investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to the Company and provide such reports to the Investment AdviserOaktree and the Audit Committee of the Board of Directors;
The Investment Adviser•Oaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;
•The Audit Committee reviews the preliminary valuations with the Investment Adviser,Oaktree, and the Investment AdviserOaktree responds and supplements the preliminary valuations to reflect any discussions between the Investment AdviserOaktree and the Audit Committee;
•The Audit Committee makes a recommendation to the full Board of Directors regarding the fair value of the investments in the Company's portfolio; and
•The Board of Directors discusses valuations and determines the fair value of each investment in the Company's portfolio.
The fair value of the Company's investments as of December 31, 20172020 and September 30, 20172020 was determined in good faith by the Board of Directors. The Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of the Company's portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that assistance. However, the Board of Directors is responsible for the ultimate valuation of the portfolio investments at fair value as determined in good faith pursuant to the Company's valuation policy and a consistently applied valuation process.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.
With the exception of the line items entitled "deferred financing costs," "deferred offering costs," "other assets," "deferred tax asset, net," "credit facility payable" and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities. The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions,"
32
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





"accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.
Foreign Currency Translation:
The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.
Derivative Instruments:
The Company does not utilize hedge accounting and as such values its derivative instruments at fair value with the unrealized gains or losses recorded in “net unrealized appreciation (depreciation)” in the Company’s Consolidated Statements of Operations.
Investment Income:
Interest Income
Interest income, adjusted for accretion of original issue discount ("OID"), is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash and the portfolio company, in management’s judgment, is likely to continue timely payment of its remaining obligations.
In connection with its investment in a portfolio company, the Company sometimes receives nominal cost equity that is valued as part of the negotiation process with the portfolio company. When the Company receives nominal cost equity, the Company allocates its cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.
For the Company's secured borrowings, the interest earned on the entire loan balance is recorded within interest income and the interest earned by the buyer from the partial loan sales is recorded within interest expense in the Consolidated Statements of Operations.
PIK Interest Income
The Company's investments in debt securities may contain PIK interest provisions. PIK interest, which generally represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company generally ceases accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect the portfolio company to be able to pay all principal and interest due. The Company's decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; the Company's assessment of the portfolio company's business development success; information obtained by the Company in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. Based on this and other information, the Company determines whether to cease accruing PIK interest on a loan or debt security. The Company's determination to cease accruing PIK interest is generally made well before the Company's full write-down of a loan or debt security. In addition, if it is subsequently determined that the Company will not be able to collect any previously accrued PIK interest, the fair value of the loans or debt securities would be reduced by the amount of such previously accrued, but uncollectible, PIK interest. The accrual of PIK interest on the Company’s debt investments increases the recorded cost bases of these investments in the consolidated financial statements and, as a result, increases the cost bases of these investmentsConsolidated Financial Statements including for purposes of computing the capital gaingains incentive fee payable by the Company to the Investment Adviser beginning in the fiscal year ending September 30, 2019.Oaktree. To maintain its status as a RIC, certain income from PIK interest may be required to be distributed to the Company’s stockholders, even though the Company has not yet collected the cash and may never do so.
33
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Fee Income
Oaktree or its affiliates may provide financial advisory services to portfolio companies and, in return, the Company may receive fees for capital structuring services. These fees are generally nonrecurring and are recognized by the Company upon the investment closing date. The Company receives a variety ofmay also receive additional fees in the ordinary course of business, including servicing, advisory, amendment structuring and prepayment fees, which are classified as fee income and recognized as they are earned.earned or the services are rendered.
The Company has also structured exit fees across certain of its portfolio investments to be received upon the future exit of those investments. These fees are to betypically paid to the Company upon the earliest to occur of (i) a sale of the borrower or substantially all of itsthe assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs. The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments. A percentage of theseThese fees isare included in net investment income over the life of the loan.
Dividend Income
The Company generally recognizes dividend income on the ex-dividend date.date for public securities and the record date for private equity investments. Distributions received from private equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





record distributions from private equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.
Cash and Cash Equivalents and Restricted Cash:Equivalents:
Cash and cash equivalents and restricted cash consist of demand deposits and highly liquid investments with maturities of three months or less when acquired. The Company places its cash and cash equivalents and restricted cash with financial institutions and, at times, cash held in bank accounts may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit. Cash and cash equivalents are classified as Level 1 assets and are included on the Company's Consolidated Schedule of Investments.
As of December 31, 2017 and September 30, 2017, included in cash and cash equivalents was $28.0 million and $25.2 million, respectively, held in bank accounts of the SBIC Subsidiaries. These cashInvestments and cash equivalents are permitted only for certain uses, including funding operating expenses of the SBIC Subsidiaries. This cash is not permitted to be used to fund the Company's investments that are held outside the SBIC Subsidiaries or for other corporate purposes of the Company.
As of September 30, 2017, included in restricted cash was $6.8 million that was held at U.S. Bank, National Association in connection with the Company's Sumitomo Facility (as defined in Note 6). The Company was restricted in terms of access to this cash until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the credit agreement.classified as Level 1 assets.
Due from Portfolio Companies:
Due from portfolio companies consists of amounts payable to the Company from its portfolio companies, including any escrow receivableproceeds from the sale of portfolio companies not yet received or being held in escrow and excluding those amounts attributable to interest, dividends or fees receivable. These amounts are recognized as they become payable to the Company (e.g., principal payments on the scheduled amortization payment date).
Receivables/Payables Fromfrom Unsettled Transactions:
Receivables/payables from unsettled transactions consistsconsist of amounts receivable to or payable by the Company for transactions that have not settled at the reporting date.
Deferred Financing Costs:
Deferred financing costs consist of fees and expenses paid in connection with the closing or amending of credit facilities and debt offerings. Deferred financing costs in connection with credit facilities are capitalized as an asset at the time of payment.when incurred. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability at the time of payment.when incurred. Deferred financing costs are amortized using the effective interest method over the termsterm of the respective debt arrangement. This amortization expense is included in interest expense in the Company's Consolidated Statements of Operations. Upon early termination or modification of a credit facility, all or a portion of unamortized fees related to such facility may be accelerated into interest expense. For extinguishments of the Company’s unsecured notes payable, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.

Deferred Offering Costs:
Offering costs consist ofLegal fees and expensesother costs incurred in connection with the offerCompany’s shelf registration statement are capitalized as deferred offering costs in the Consolidated Statements of Assets and saleLiabilities. To the extent any such costs relate to equity offerings, these costs are charged as a reduction of capital upon utilization. To the extent any such costs relate to debt offerings, these costs are treated as deferred financing costs and are amortized over the term of the Company's securities, including legal, accountingrespective debt arrangement. Any
34
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and printing fees. The Company chargesper share amounts, percentages and as otherwise indicated)




deferred offering costs to capitalthat remain at the timeexpiration of the shelf registration statement or when it becomes probable that an offering. There were no offering costs charged to capital during the three months ended December 31, 2017 and 2016.will not be completed are expensed.
Income Taxes:
The Company has elected to be subject to tax as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each taxable year. As a RIC, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed currently to stockholders as a dividend. Depending on the level of taxable income earned during a taxable year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next taxable year. The Company would then incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. The Company anticipates timely distribution of its taxable income within the tax rules under
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Subchapter M of the Code. The Company did not incur a U.S. federal excise tax for calendar years 20152019 and 20162020 and does not expect to incur a U.S. federal excise tax for calendar year 2017.2021.
The Company holds certain portfolio investments through taxable subsidiaries, including Funds of Funds and Holdings.subsidiaries. The purpose of the Company's taxable subsidiaries is to permit the Company to hold equity investments in portfolio companies which are "pass through" entities for U.S. federal income tax purposes in order to comply with the RIC tax requirements. The taxable subsidiaries are consolidated for financial reporting purposes, and portfolio investments held by them are included in the Company’s Consolidated Financial Statements as portfolio investments and recorded at fair value. The taxable subsidiaries are not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. This income tax expense, if any, would be reflected in the Company's Consolidated Statements of Operations. The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net operating loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.
FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the Company's Consolidated Financial Statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management's determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including an ongoing analysis of tax laws, regulations and interpretations thereof. The Company recognizes the tax benefits of uncertain tax positions only where the position is "more-likely-than-not" to be sustained assuming examination by tax authorities. Management has analyzed the Company's tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2014, 2015 or 2016.2018, 2019 and 2020. The Company identifies its major tax jurisdictions as U.S. Federal and California, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.    
Secured Borrowings:
The Company follows the guidance in ASC 860 when accounting for loan participations and other partial loan sales. Such guidance provides accounting and reporting standards for transfers and servicing of financial assets and requires a participation or other partial loan sales to meet the definition of a "participating interest," as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest or which are not eligible for sale accounting remain on the Company's Consolidated Statements of Assets and Liabilities and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value. See Note 14 for additional information.
35
Amounts Payable to Syndication Partners:
The Company acts as administrative agent for certain loans it originates and then syndicates. As administrative agent, the Company receives interest, principal and/or other payments from borrowers that is redistributed to syndication partners. If not redistributed by the reporting date, such amounts are classified in restricted cash and a payable is recorded to syndication partners on the Consolidated Statements of Assets and Liabilities.
Fair Value Option:
The Company adopted certain principles under FASB ASC Topic 825 Financial Instruments – Fair Value Option ("ASC 825") and elected the fair value option for its secured borrowings, which had a cost basis of $13.5 million in the aggregate as of each of December 31, 2017 and September 30, 2017. The Company believes that by electing the fair value option for these financial instruments, it provides consistent measurement of the assets and liabilities which relate to the partial loan sales mentioned above.
However, the Company has not elected the fair value option to report other selected financial assets and liabilities at fair value. With the exception of the line items entitled "deferred financing costs," "other assets," "credit facilities payable," and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statement of Assets and Liabilities. The carrying value of the line items titled "interest, dividends, and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "accounts payable, accrued expenses and other liabilities," "base management fee and part I
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





incentive fee payable," "due to affiliate," "interest payable," "amounts payable to syndication partners," "director fees payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.
Recent Accounting Pronouncements:
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations. This ASU is intended to clarify revenue recognition accounting when a third party is involved in providing goods or services to a customer. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing. This ASU is intended to clarify two aspects of Topic 606: identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients. This ASU amends certain aspects of ASU 2014-09, addresses certain implementation issues identified and clarifies the new revenue standards’ core revenue recognition principles. The new standards will be effective for the Company on October 1, 2018 and early adoption is permitted on the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method nor has it determined the effect of this standard on its Consolidated Financial Statements and related disclosures.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall ("ASU 2016-01"), which makes limited amendments to the guidance in GAAP on the classification and measurement of financial instruments. The new standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods therein.  Early adoption is permitted specifically for the amendments pertaining to the presentation of certain fair value changes for financial liabilities measured at fair value.  Early adoption of all other amendments is not permitted. Upon adoption, the Company will be required to make a cumulative-effect adjustment to the Consolidated Statement of Assets and Liabilities as of the beginning of the first reporting period in which the guidance is effective.  The Company did not early adopt the new guidance during the three months ended December 31, 2017. The Company is evaluating the effect that ASU 2016-01 will have on its Consolidated Financial Statements and related disclosures.
In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The amendment should be adopted retrospectively. The Company did not early adopt the new guidance during the three months ended December 31, 2017. The new guidance is not expected to have a material effect on the Company's Consolidated Financial Statements.

Note 3. Portfolio Investments
As of December 31, 2017, 172.7%2020, 177.5% of net assets at fair value, or $1.4$1.7 billion, was invested in 122115 portfolio companies, including the Company's investment$125.5 million in Class A mezzanine secured deferrable floating rate notes, Class B mezzanine secured deferrable fixed ratesubordinated notes and limited liability company ("LLC") equity interests inof Senior Loan Fund JV I, LLC (together with its consolidated subsidiaries, "SLF("SLF JV I"), a joint venture through which hadthe Company and Trinity Universal Insurance Company, a fair valuesubsidiary of $100.8 million, $27.5 millionKemper Corporation ("Kemper"), co-invest in senior secured loans of middle-market companies and $4.9 million, respectively.other corporate debt securities. As of December 31, 2017, 5.6%2020, 2.5% of net assets at fair value, or $45.8$24.2 million, was invested in cash and cash equivalents (including restricted cash).equivalents. In comparison, as of September 30, 2017, 177.7%2020, 172.0% of net assets at fair value, or $1.5$1.6 billion, was invested in 125113 portfolio investments, including the Company's investment$117.4 million in Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed ratesubordinated notes and LLC equity interests inof SLF JV I, which had a fair value of $101.0 million, $27.6 million and $5.5 million, respectively, and 6.9%4.3% of net assets at fair value, or $59.9$39.1 million, was invested in cash and cash equivalents (including restricted cash).equivalents. As of December 31, 2017, 75.8%2020, 85.7% of the Company's portfolio at fair value consisted of senior secured debt investments that were secured by priority liens on the assets of the portfolio companies and 16.0%8.7% consisted of subordinated notes,debt investments, including the debt investmentsinvestment in SLF JV I. As of September 30, 2017, 78.0%2020, 84.1% of the Company's portfolio at fair value consisted of senior secured debt investments that were secured by priority liens on the assets of the portfolio companies and 14.4%10.3% consisted of subordinated notes,debt investments, including the debt investmentsinvestment in SLF JV I.
The Company also held equity investments in certain of its portfolio companies consisting of common stock, preferred stock, warrants, limited partnership interests or LLC equity interests. These instruments generally do not produce a current return but are held for potential investment appreciation and capital gain.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





During the three months ended December 31, 20172020 and December 31, 2016,2019, the Company recorded a net realized loss on investments and secured borrowingsgains of $0.3$8.2 million and $23.1$3.3 million, respectively. During the three months ended December 31, 20172020 and December 31, 2016,2019, the Company recorded net unrealized depreciation on investments and secured borrowingsappreciation of $43.5$47.6 million and $74.4$2.9 million, respectively.
The composition of the Company's investments as of December 31, 20172020 and September 30, 20172020 at cost and fair value was as follows:
 December 31, 2020September 30, 2020
 CostFair ValueCostFair Value
Investments in debt securities$1,514,258 $1,520,243 $1,422,487 $1,388,605 
Investments in equity securities97,831 66,567 101,111 67,806 
Debt investment in SLF JV I96,250 96,250 96,250 96,250 
Equity investment in SLF JV I49,322 29,264 49,322 21,190 
Total$1,757,661 $1,712,324 $1,669,170 $1,573,851 
  December 31, 2017 September 30, 2017
  Cost Fair Value Cost Fair Value
Investments in debt securities $1,343,309
 $1,171,848
 $1,426,301
 $1,296,138
Investments in equity securities 188,693
 110,409
 186,521
 111,421
Debt investments in SLF JV I 128,267
 128,267
 128,671
 128,671
Equity investment in SLF JV I 16,172
 4,880
 16,172
 5,525
Total $1,676,441
 $1,415,404
 $1,757,665
 $1,541,755

The following table presents the composition of the Company's debt investments as of December 31, 20172020 and September 30, 20172020 at fixed rates and floating rates was as follows:rates:
  December 31, 2017 September 30, 2017
  Fair Value 
% of Debt
Portfolio
 Fair Value 
% of Debt
Portfolio
Fixed rate debt securities, including debt investments in SLF JV I $229,274
 17.63% $233,869
 16.41%
Floating rate debt securities, including debt investments in SLF JV I 1,070,841
 82.37
 1,190,940
 83.59
Total $1,300,115
 100.00% $1,424,809
 100.00%
The following table presents the financial instruments carried at fair value as of December 31, 2017 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
 December 31, 2020September 30, 2020
 Fair Value% of Debt
Portfolio		Fair Value% of Debt
Portfolio
Floating rate debt securities, including the debt investment in SLF JV I$1,436,071 88.84 %$1,311,509 88.33 %
Fixed rate debt securities180,422 11.16 173,346 11.67 
Total$1,616,493 100.00 %$1,484,855 100.00 %
36
  Level 1 Level 2 Level 3 Measured at Net Asset Value (a) Total
Investments in debt securities (senior secured) $—
 $258,128
 $815,352
 $—
 $1,073,480
Investments in debt securities (subordinated, including debt investments in SLF JV I) —
 56,684
 169,951
 —
 226,635
Investments in equity securities (preferred) —
 —
 16,350
 —
 16,350
Investments in equity securities (common, including LLC equity interests of SLF JV I) —
 —
 68,434
 30,505
 98,939
Total investments at fair value —
 314,812
 1,070,087
 30,505
 1,415,404
Cash and cash equivalents 45,435
 —
 —
 —
 45,435
Total assets at fair value $45,435
 $314,812
 $1,070,087
 $30,505
 $1,460,839
Secured borrowings relating to senior secured debt investments —
 —
 11,601
 —
 11,601
Total liabilities at fair value $—
 $—
 $11,601
 $—
 $11,601
__________ 
(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





The following table presents the financial instruments carried at fair value as of September 30, 2017December 31, 2020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
 Level 1 Level 2 Level 3 Measured at Net Asset Value (a) TotalLevel 1Level 2Level 3Measured at Net Asset Value (a)Total
Investments in debt securities (senior secured) $—
 $142,257
 $1,060,442
 $—
 $1,202,699
Investments in debt securities (senior secured)$— $389,161 $1,078,416 $— $1,467,577 
Investments in debt securities (subordinated, including debt investments in SLF JV I) —
 41,778
 180,331
 —
 222,109
Investments in debt securities (subordinated, including the debt investment in SLF JV I)Investments in debt securities (subordinated, including the debt investment in SLF JV I)— 34,744 114,172 — 148,916 
Investments in equity securities (preferred) —
 —
 16,445
 —
 16,445
Investments in equity securities (preferred)— — 29,731 — 29,731 
Investments in equity securities (common, including LLC equity interests of SLF JV I) —
 —
 69,164
 31,338
 100,502
Investments in equity securities (common and warrants, including LLC equity interests of SLF JV I)Investments in equity securities (common and warrants, including LLC equity interests of SLF JV I)— — 35,472 30,628 66,100 
Total investments at fair value —
 184,035
 1,326,382
 31,338
 1,541,755
Total investments at fair value— 423,905 1,257,791 30,628 1,712,324 
Cash and cash equivalents 53,018
 —
 —
 —
 53,018
Cash equivalentsCash equivalents20,966 — — — 20,966 
Total assets at fair value $53,018
 $184,035
 $1,326,382
 $31,338
 $1,594,773
Total assets at fair value$20,966 $423,905 $1,257,791 $30,628 $1,733,290 
Secured borrowings relating to senior secured debt investments —
 —
 13,256
 —
 13,256
Derivative liabilitiesDerivative liabilities$— $2,203 $— $— $2,203 
Total liabilities at fair value $—
 $—
 $13,256
 $—
 $13,256
Total liabilities at fair value$— $2,203 $— $— $2,203 
__________ 
(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.
(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.
The following table presents the financial instruments carried at fair value as of September 30, 2020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
Level 1Level 2Level 3Measured at Net Asset Value (a)Total
Investments in debt securities (senior secured)$— $418,806 $904,237 $— $1,323,043 
Investments in debt securities (subordinated, including the debt investment in SLF JV I)— 35,660 126,152 — 161,812 
Investments in equity securities (preferred)— — 29,959 — 29,959 
Investments in equity securities (common and warrants, including LLC equity interests of SLF JV I)222 — 35,080 23,735 59,037 
Total investments at fair value222 454,466 1,095,428 23,735 1,573,851 
Cash equivalents35,248 — — — 35,248 
Derivative assets— 223 — — 223 
Total assets at fair value$35,470 $454,689 $1,095,428 $23,735 $1,609,322 
__________ 
(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.
When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the fact that the unobservable factors are significant to the overall fair value measurement. However, Level 3 financial instruments typically include, in addition to thehave both unobservable or Level 3 components and observable components (i.e. components that are actively quoted and can be validated by external sources). Accordingly, the appreciation (depreciation) in the tables below includes changes in fair value due in part to observable factors that are part of the valuation methodology. Transfers between levels are recognized at the beginning of the
reporting period.
The following table provides a roll-forward in the changes in fair value from September 30, 2017 to December 31, 2017 for all investments and secured borrowings for which the Company determined fair value using unobservable (Level 3) factors:

37
  Investments Liabilities
  Senior Secured Debt 
Subordinated
Debt (including debt investments in SLF JV I)
 
Preferred
Equity
 
Common
Equity
 Total Secured Borrowings
Fair value as of September 30, 2017 $1,060,442
 $180,331
 $16,445
 $69,164
 $1,326,382
 $13,256
New investments & net revolver activity 58,869
 1,730
 —
 2,500
 63,099
 —
Redemptions/repayments/sales (239,894) (812) —
 9
 (240,697) —
Transfers out (a) (37,368) —
 —
 —
 (37,368) —
Net accrual of PIK interest income 683
 75
 —
 —
 758
 —
Accretion of OID 186
 —
 —
 —
 186
 —
Net unrealized depreciation on investments (27,566) (11,372) (95) (3,230) (42,263) —
Net unrealized depreciation on secured borrowings —
 —
 —
 —
 —
 (1,655)
Realized loss on investments —
 (1) —
 (9) (10) —
Fair value as of December 31, 2017 $815,352
 $169,951
 $16,350
 $68,434
 $1,070,087
 $11,601
Net unrealized appreciation (depreciation) relating to Level 3 assets & liabilities still held as of December 31, 2017 and reported within net unrealized depreciation on investments and net unrealized (appreciation) depreciation on secured borrowings in the Consolidated Statement of Operations for the three months ended December 31, 2017 $(27,539) $(11,441) $(94) $(4,243) $(43,317) $(1,655)
__________
(a) There were transfers out of Level 3 to Level 2 for certain investments during the quarter ended December 31, 2017 as a result of an increased number of market quotes available and/or increased market liquidity.

OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





The following table provides a roll-forward in the changes in fair value from September 30, 20162020 to December 31, 20162020 for all investments and secured borrowings for which the Company determined fair value using unobservable (Level 3) factors:
Investments
Senior Secured DebtSubordinated
Debt (including debt investment in SLF JV I)		Preferred
Equity		Common
Equity and Warrants		Total
Fair value as of September 30, 2020$904,237 $126,152 $29,959 $35,080 $1,095,428 
Purchases 209,177 — — — 209,177 
Sales and repayments(68,895)(34,905)(31)(5,147)(108,978)
Transfers in (a)(b)18,458 — — 437 18,895 
PIK interest income2,873 — — — 2,873 
Accretion of OID1,379 992 — — 2,371 
Net unrealized appreciation (depreciation)12,751 14,648 (228)2,467 29,638 
Net realized gains (losses)(1,564)7,285 31 2,635 8,387 
Fair value as of December 31, 2020$1,078,416 $114,172 $29,731 $35,472 $1,257,791 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of December 31, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended December 31, 2020$15,672 $(56)$(228)$2,209 $17,597 
__________
(a) There were transfers into Level 3 from Level 2 for certain investments during the three months ended December 31, 2020 as a result of a change in the number of market quotes available and/or a change in market liquidity.
(b) There was a transfer into Level 3 from Level 2 as a result of an investment restructuring in which Level 2 senior secured debt was exchanged for Level 3 senior secured debt and common equity.

The following table provides a roll-forward in the changes in fair value from September 30, 2019 to December 31, 2019 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments
Senior Secured DebtSubordinated
Debt (including debt investment in SLF JV I)		Preferred
Equity		Common
Equity and Warrants		Total
Fair value as of September 30, 2019$653,334 $110,309 $40,578 $41,006 $845,227 
New investments96,395 959 — 1,328 98,682 
Sales and repayments(73,292)(365)(1,388)(39)(75,084)
Transfers in (a)33,252 — — — 33,252 
Transfers out (a)(15,000)— — — (15,000)
PIK interest income1,119 — — — 1,119 
Accretion of OID1,421 305 — — 1,726 
Net unrealized appreciation (depreciation)469 (2,860)(1,076)2,311 (1,156)
Net realized gains (losses)(66)— 795 39 768 
Fair value as of December 31, 2019$697,632 $108,348 $38,909 $44,645 $889,534 
Net unrealized appreciation (depreciation) relating to Level 3 assets & liabilities still held as of December 31, 2019 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended December 31, 2019$1,313 $(2,860)$(174)$2,311 $590 
__________
(a) There were transfers into/out of Level 3 from/to Level 2 for certain investments during the three months ended December 31, 2019 as a result of a change in the number of market quotes available and/or a change in market liquidity.
38
  Investments Liabilities
  Senior Secured Debt 
Subordinated
Debt (including debt investments in SLF JV I)
 
Preferred
Equity
 
Common
Equity
 Total Secured Borrowings
Fair value as of September 30, 2016 $1,689,535
 $285,277
 $47,749
 $106,540
 $2,129,101
 $18,400
New investments & net revolver activity 99,858
 126,402
 —
 1,586
 227,846
 —
Redemptions/repayments (194,616) (150,043) (652) (1,786) (347,097) (4,503)
Net accrual (receipt) of PIK interest income (1,026) (247) 676
 —
 (597) —
Accretion of OID 2,201
 —
 —
 —
 2,201
 —
Net change in unearned income (26) 11
 —
 —
 (15) —
Net unrealized appreciation (depreciation) on investments (81,425) 14,877
 1,372
 (9,720) (74,896) —
Net unrealized appreciation on secured borrowings —
 —
 —
 —
 —
 84
Realized gain (loss) on investments (140) (19,857) 443
 (3,600) (23,154) —
Fair value as of December 31, 2016 $1,514,361
 $256,420
 $49,588
 $93,020
 $1,913,389
 $13,981
Net unrealized appreciation (depreciation) relating to Level 3 assets & liabilities still held as of December 31, 2016 and reported within net unrealized depreciation on investments and net unrealized (appreciation) depreciation on secured borrowings in the Consolidated Statement of Operations for the three months ended December 31, 2016 $(80,481) $(793) $1,697
 $(11,786) $(91,363) $84






OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Significant Unobservable Inputs for Level 3 Investments
The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, and secured borrowings, which are carried at fair value, as of December 31, 2017:2020:
AssetFair ValueValuation TechniqueUnobservable InputRangeWeighted
Average (a)
Senior Secured Debt$563,045 Market YieldMarket Yield(b)6.9%-20.0%11.2%
35,289 Enterprise ValueEBITDA Multiple(c)5.8x-6.8x6.3x
9,971 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
79,113 Transactions PrecedentTransaction Price(d)N/A-N/AN/A
390,998 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Subordinated Debt17,922 Market YieldMarket Yield(b)3.6%-28.0%17.8%
SLF JV I Debt Investment96,250 Enterprise ValueN/A(f)N/A-N/AN/A
Preferred & Common Equity19,389 Enterprise ValueRevenue Multiple(c)0.9x-6.4x3.0x
43,735 Enterprise ValueEBITDA Multiple(c)3.0x-15.0x7.7x
1,681 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
398 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Total$1,257,791 
Asset Fair Value Valuation Technique Unobservable Input Range 
Weighted
Average (c)
Senior secured debt $579,327
 Market yield technique Market yield (a)6.4%-20.2% 12.2%
  10,340
 Enterprise value technique Revenue multiple (b)0.1x-0.6x 0.3x
  103,793
 Enterprise value technique EBITDA multiple (b)3.2x-7.6x 4.7x
  44,378
 Enterprise value technique Asset multiple (b)0.9x-1.1x 1.0x
  14,657
 Transactions precedent technique Transaction price (d)N/A-N/A N/A
  62,857
 Market quotations Broker quoted price (e)N/A-N/A N/A
Subordinated debt 42,084
 Market yield technique Market yield (a)12.9%-25.0% 14.0%
  (400) Enterprise value technique EBITDA multiple (a)6.8x-7.8x 7.3x
SLF JV I debt investments 128,267
 Enterprise value technique N/A (f)N/A-N/A N/A
Preferred & common equity 15,651
 Enterprise value technique Revenue multiple (b)0.1x-10.9x 2.4x
  49,797
 Enterprise value technique EBITDA multiple (b)3.2x-15.5x 7.7x
  19,336
 Enterprise value technique Asset multiple (b)0.9x-1.1x 1.0x
Total $1,070,087
           
Secured borrowings 11,601
 Market yield technique Market yield (a)16.5%-18.5% 17.5%
Total $11,601
           
__________ 
(a)Used when market participant
(a)Weighted averages are calculated based on fair value of investments.
(b)Used when market participants would take into account market yield when pricing the investment or secured borrowings.
(b)Used when market participant would use such multiples when pricing the investment.
(c)Weighted averages are calculated based on fair value of investments or secured borrowings.
(d)Used when there is an observable transaction or pending event for the investment.
(e)The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The company performs additional procedures to corroborate such information, which may include the market yield technique and a quantitative and qualitative assessment of the credit quality and market trends affecting the portfolio company. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by the Investment Adviser.
(f)The Company determined the value based on the total assets less the total liabilities senior to the mezzanine notes held at SLF JV I in an amount not exceeding par under the enterprise value technique.
Under the market yield technique,when pricing the investment.
(c)Used when market participants would use such multiples when pricing the investment.
(d)Used when there is an observable transaction or pending event for the investment.
(e)The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The Company evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.
(f)The Company determined the value of its subordinated notes of SLF JV I based on the total assets less the total liabilities senior to the subordinated notes held at SLF JV I in an amount not exceeding par under the EV technique.
The following table provides quantitative information related to the significant unobservable input used ininputs for Level 3 investments, which are carried at fair value, as of September 30, 2020:
AssetFair ValueValuation TechniqueUnobservable InputRangeWeighted
Average (a)
Senior Secured Debt$542,354 Market YieldMarket Yield(b)6.6%-30.0%12.5%
35,508 Enterprise ValueEBITDA Multiple(c)0.6x-6.3x5.9x
11,510 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
314,865 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Subordinated Debt29,314 Market YieldMarket Yield(b)4.8%-15.0%9.3%
588 Enterprise ValueEBITDA Multiple(c)7.6x-8.6x8.1x
SLF JV I Debt Investment96,250 Enterprise ValueN/A(f)N/A-N/AN/A
Preferred & Common Equity16,470 Enterprise ValueRevenue Multiple(c)0.9x-7.0x3.1x
45,934 Enterprise ValueEBITDA Multiple(c)0.6x-15.0x7.6x
1,622 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
1,013 Transactions PrecedentTransaction Price(d)N/A-N/AN/A
Total$1,095,428 
__________
(a)Weighted averages are calculated based on fair value of investments.
(b)Used when market participants would take into account market yield when pricing the investment.
(c)Used when market participants would use such multiples when pricing the investment.
(d)Used when there is an observable transaction or pending event for the investment.
(e)The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value measurementdeterminations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The Company evaluates the Company's investments in debt securitiesquotations provided by pricing vendors and secured borrowings as of December 31, 2017 is thebrokers based on available market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.information,
Under the enterprise value technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities as of December 31, 2017 is the earnings before interest, taxes, depreciation and amortization ("EBITDA")/Revenue/Asset multiple. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.
39

OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.
(f)The following table provides quantitative information relatedCompany determined the value of its subordinated notes of SLF JV I based on the total assets less the total liabilities senior to the significant unobservable inputs for Level 3 investments and secured borrowings, which are carriedsubordinated notes held at fair value, as of September 30, 2017:
Asset Fair Value Valuation Technique Unobservable Input Range 
Weighted
Average (c)
Senior secured debt $632,835
 Market yield technique Capital structure premium (a)0.0%-2.0% 0.7%
      Tranche specific risk premium/(discount) (a)(2.5)%-10.5% 2.9%
      Size premium (a)0.5%-2.0% 1.0%
      Industry premium/(discount) (a)(1.2)%-2.6% 0.4%
  58,815
 Enterprise value technique Revenue multiple (b)0.2x-0.6x 0.5x
  107,313
 Enterprise value technique EBITDA multiple (b)0.1x-7.2x 4.6x
  98,800
 Transactions precedent technique Transaction price (d)N/A-N/A N/A
  162,679
 Market quotations Broker quoted price (e)N/A-N/A N/A
Subordinated debt 40,825
 Market yield technique Capital structure premium (a)2.0%-2.0% 2.0%
      Tranche specific risk premium (a)1.8%-5.9% 3.4%
      Size premium (a)2.0%-2.0% 2.0%
      Industry premium/(discount) (a)(0.5)%-2.6% 0.6%
  10,835
 Enterprise value technique EBITDA multiple (b)6.3x-7.0x 6.4x
SLF JV I debt investments 128,671
 Enterprise value technique N/A (f)N/A-N/A N/A
Preferred & common equity 85,609
 Enterprise value technique EBITDA multiple (b)0.1x-15.6x 6.8x
      Revenue multiple (b)0.9x 10.9x 2.7x
Total $1,326,382
           
Secured borrowings 13,256
 Market yield technique Tranche specific risk premium (discount) (a)(2.0)%-6.5% 5.7%
      Size premium (a)2.0%-2.0% 2.0%
      Industry premium (a)0.2%-0.2% 0.2%
              
Total $13,256
           
SLF JV I in an amount not exceeding par under the EV technique.
__________
(a)Used when market participant would take into account this premium or discount when pricing the investment or secured borrowings based on a market yield.
(b)Used when market participant would use such multiples when pricing the investment.
(c)Weighted averages are calculated based on fair value of investments or secured borrowings.
(d)Used when there is an observable transaction or pending event for the investment.
(e)The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The company performs additional procedures to corroborate such information, which may include the market yield technique and a quantitative and qualitative assessment of the credit quality and market trends affecting the portfolio company. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by the Investment Adviser.
(f)The Company determined the value based on the total assets less the total liabilities senior to the mezzanine notes held at SLF JV I in an amount not exceeding par under the enterprise value technique
Under the market yield technique, the significant unobservable inputsinput used in the fair value measurement of the Company's investments in debt securities and secured borrowings as of September 30, 2017 are capital structure premium, tranche specific risk premium (discount), size premium and industry premium (discount).is the market yield. Increases or decreases in any of those inputs in isolationthe market yield may result in a lower or higher fair value measurement, respectively.
Under the enterprise valueEV technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities as of September 30, 2017 is the EBITDA/Revenue multiple.earnings before interest, taxes, depreciation and amortization ("EBITDA"), revenue or asset multiple, as applicable. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.
 
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Financial Instruments Disclosed, But Not Carried, At Fair Value
The following table presents the carrying value and fair value of the Company's financial liabilities disclosed, but not carried, at fair value as of December 31, 20172020 and the level of each financial liability within the fair value hierarchy:
 
Carrying
Value		Fair ValueLevel 1Level 2Level 3
Credit facility payable$400,025 $400,025 $— $— $400,025 
Unsecured notes payable (net of unamortized financing costs and unaccreted discount)294,802 311,346 — 311,346 — 
Total$694,827 $711,371 $— $311,346 $400,025 
  
Carrying
Value
 Fair Value Level 1 Level 2 Level 3
Credit facility payable $205,000
 $205,000
 $—
 $—
 $205,000
Unsecured notes payable (net of unamortized financing costs) 406,486
 413,245
 —
 162,570
 250,675
Total $611,486
 $618,245
 $—
 $162,570
 $455,675

The following table presents the carrying value and fair value of the Company's financial liabilities disclosed, but not carried, at fair value as of September 30, 20172020 and the level of each financial liability within the fair value hierarchy:
  
Carrying
Value
 Fair Value Level 1 Level 2 Level 3
Credit facilities payable $255,995
 $255,995
 $—
 $—
 $255,995
Unsecured notes payable (net of unamortized financing costs) 406,115
 414,067
 —
 163,517
 250,550
Total $662,110
 $670,062
 $—
 $163,517
 $506,545
Carrying
Value		Fair ValueLevel 1Level 2Level 3
Credit facility payable$414,825 $414,825 $— $— $414,825 
Unsecured notes payable (net of unamortized financing costs and unaccreted discount)294,490 301,431 — 301,431 — 
Total$709,315 $716,256 $— $301,431 $414,825 

The principal valuesvalue of the credit facilitiesfacility payable approximate theirapproximates fair valuesvalue due to theirits variable interest ratesrate and areis included in Level 3 of the hierarchy.
As of December 31, 2020 and September 30, 2020, unsecured notes payable consisted of the 3.500% unsecured notes due 2025 ("2025 Notes"). The Company uses the non-binding indicative quoted priceused market quotes as of the valuation date to estimate the fair value of its 4.875% unsecured notes due 2019 ("2019 Notes"),the 2025 Notes, which are included in Level 3 of the hierarchy.
The Company uses the unadjusted quoted price as of the valuation date to calculate the fair value of its 5.875% unsecured notes due 2024 ("2024 Notes") and its 6.125% unsecured notes due 2028 ("2028 Notes"), which, beginning October 17, 2017, trade under the symbol "OSLE" on the New York Stock Exchange and the symbol "OCSLL" on the NASDAQ Global Select Market, respectively. Although these securities are publicly traded, the market is relatively inactive, and accordingly, these securities are included in Level 2 of the hierarchy. Prior to October 17, 2017, the 2024 Notes and 2028 Notes, trade under the symbol “FSCE” on the New York Stock Exchange and the symbol “FSCFL” on the NASDAQ Global Select Market, respectively.

Portfolio Composition
Summaries of the composition of the Company's investment portfolio at cost as a percentage of total investments and at fair value as a percentage of total investments and total net assets are shown in the following tables:
 December 31, 2020September 30, 2020
Cost: % of Total Investments % of Total Investments
Senior secured debt$1,464,479 83.31 %$1,345,012 80.58 %
Debt investment in SLF JV I96,250 5.48 %96,250 5.77 %
Common equity and warrants58,281 3.32 %61,561 3.69 %
Subordinated debt49,779 2.83 %77,475 4.64 %
LLC equity interests of SLF JV I49,322 2.81 %49,322 2.95 %
Preferred equity39,550 2.25 %39,550 2.37 %
Total$1,757,661 100.00 %$1,669,170 100.00 %
40
  December 31, 2017 September 30, 2017
Cost:    % of Total Investments    % of Total Investments
Senior secured debt $1,214,175
 72.44% $1,313,432
 74.73%
Subordinated debt 129,134
 7.70
 112,869
 6.42
Debt investments in SLF JV I 128,267
 7.65
 128,671
 7.32
LLC equity interests of SLF JV I 16,172
 0.96
 16,172
 0.92
Purchased equity 115,057
 6.86
 112,558
 6.40
Equity grants 48,805
 2.91
 48,805
 2.78
Limited partnership interests 24,831
 1.48
 25,158
 1.43
Total $1,676,441
 100.00% $1,757,665
 100.00%
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





 December 31, 2020September 30, 2020
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Senior secured debt$1,467,577 85.70 %152.09 %$1,323,043 84.06 %144.61 %
Debt investment in SLF JV I96,250 5.62 %9.97 %96,250 6.12 %10.52 %
Subordinated debt52,666 3.08 %5.46 %65,562 4.17 %7.17 %
Common equity and warrants36,836 2.15 %3.82 %37,847 2.40 %4.14 %
Preferred equity29,731 1.74 %3.08 %29,959 1.90 %3.27 %
LLC equity interests of SLF JV I29,264 1.71 %3.03 %21,190 1.35 %2.32 %
Total$1,712,324 100.00 %177.45 %$1,573,851 100.00 %172.03 %

  December 31, 2017 September 30, 2017
Fair Value:    % of Total Investments % of Total Net Assets    % of Total Investments % of Total Net Assets
Senior secured debt $1,073,480
 75.84% 130.97% $1,202,699
 78.01% 138.61%
Subordinated debt 98,368
 6.95% 12.00% 93,438
 6.06% 10.77%
Debt investments in SLF JV I 128,267
 9.06% 15.65% 128,671
 8.35% 14.83%
LLC equity interests of SLF JV I 4,880
 0.34% 0.60% 5,525
 0.36% 0.64%
Purchased equity 77,688
 5.49% 9.48% 78,655
 5.10% 9.07%
Equity grants 7,097
 0.50% 0.87% 6,954
 0.45% 0.80%
Limited partnership interests 25,624
 1.82% 3.13% 25,813
 1.67% 2.97%
Total $1,415,404
 100.00% 172.70% $1,541,755
 100.00% 177.69%

The Company primarily invests in portfolio companies located in North America. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's business. The following tables show the composition of the Company's portfolio composition by geographic region at cost as a percentage of total investments and at fair value as a percentage of total investments and total net assets:
 December 31, 2020September 30, 2020
Cost: % of Total Investments % of Total Investments
Northeast$546,733 31.09 %$495,440 29.69 %
West354,623 20.18 %330,468 19.80 %
Midwest268,098 15.25 %285,674 17.11 %
International245,318 13.96 %210,963 12.64 %
Southeast171,853 9.78 %171,330 10.26 %
South70,073 3.99 %72,150 4.32 %
Southwest65,662 3.74 %67,867 4.07 %
Northwest35,301 2.01 %35,278 2.11 %
Total$1,757,661 100.00 %$1,669,170 100.00 %
  December 31, 2017 September 30, 2017
Cost:    % of Total Investments    % of Total Investments
Northeast U.S. $636,226
 37.95% $648,105
 36.87%
Southwest U.S. 270,151
 16.11% 271,484
 15.45%
West U.S. 267,702
 15.97% 328,673
 18.70%
Midwest U.S. 236,992
 14.14% 258,895
 14.73%
Southeast U.S. 187,996
 11.21% 176,460
 10.04%
International 65,997
 3.94% 62,649
 3.56%
Northwest U.S. 11,377
 0.68% 11,399
 0.65%
Total $1,676,441
 100.00% $1,757,665
 100.00%
  December 31, 2017 September 30, 2017
Fair Value:    % of Total Investments % of Total Net Assets    % of Total Investments % of Total Net Assets
Northeast U.S. $511,200
 36.12% 62.37% $539,803
 35.01% 62.22%
Southwest U.S. 206,194
 14.57% 25.16% 224,233
 14.54% 25.84%
West U.S. 237,214
 16.76% 28.94% 297,716
 19.31% 34.31%
Midwest U.S. 183,896
 12.99% 22.44% 224,111
 14.54% 25.83%
Southeast U.S. 191,206
 13.51% 23.33% 179,460
 11.64% 20.68%
International 74,089
 5.23% 9.04% 64,780
 4.20% 7.47%
Northwest U.S. 11,605
 0.82% 1.42% 11,652
 0.76% 1.34%
Total $1,415,404
 100.00% 172.70% $1,541,755
 100.00% 177.69%
 December 31, 2020September 30, 2020
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Northeast$510,433 29.81 %52.89 %$446,499 28.38 %48.81 %
West356,515 20.82 %36.95 %325,708 20.69 %35.60 %
Midwest255,389 14.91 %26.47 %252,482 16.04 %27.60 %
International254,107 14.84 %26.33 %213,741 13.58 %23.36 %
Southeast170,994 9.99 %17.72 %165,516 10.52 %18.09 %
South67,211 3.93 %6.97 %70,551 4.48 %7.71 %
Southwest63,526 3.71 %6.58 %65,647 4.17 %7.18 %
Northwest34,149 1.99 %3.54 %33,707 2.14 %3.68 %
Total$1,712,324 100.00 %177.45 %$1,573,851 100.00 %172.03 %
 

41
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




The following tables show the composition of the Company's portfolio by industry at cost as a percentage of total investments and at fair value as a percentage of total investments and total net assets as of December 31, 20172020 and September 30, 2017 was as follows:2020:
December 31, 2020September 30, 2020
Cost: % of Total Investments % of Total Investments
Application Software$220,237 12.51 %$162,536 9.71 %
Multi-Sector Holdings (1)147,238 8.38 148,116 8.87 
Data Processing & Outsourced Services131,783 7.50 109,744 6.57 
Pharmaceuticals111,557 6.35 99,471 5.96 
Biotechnology108,379 6.17 89,447 5.36 
Health Care Services73,758 4.20 71,139 4.26 
Specialized Finance69,978 3.98 51,909 3.11 
Personal Products55,005 3.13 50,091 3.00 
Movies & Entertainment50,340 2.86 44,691 2.68 
Property & Casualty Insurance47,971 2.73 47,995 2.88 
Integrated Telecommunication Services44,499 2.53 44,583 2.67 
Real Estate Services38,946 2.22 39,023 2.34 
Specialty Chemicals38,581 2.20 44,786 2.68 
Fertilizers & Agricultural Chemicals34,467 1.96 33,743 2.02 
Aerospace & Defense34,018 1.94 27,964 1.68 
Auto Parts & Equipment33,651 1.91 33,649 2.02 
Internet Services & Infrastructure33,573 1.91 28,631 1.72 
Oil & Gas Refining & Marketing31,097 1.77 31,132 1.87 
Managed Health Care27,437 1.56 27,479 1.65 
Electronic Components26,800 1.52 25,600 1.53 
Oil & Gas Storage & Transportation25,965 1.48 26,615 1.59 
Research & Consulting Services24,830 1.41 24,837 1.49 
Airport Services22,341 1.27 22,376 1.34 
Health Care Supplies21,806 1.24 21,660 1.30 
Health Care Technology21,460 1.22 21,499 1.29 
Construction & Engineering21,384 1.22 13,277 0.80 
Independent Power Producers & Energy Traders21,224 1.21 21,462 1.29 
Diversified Support Services18,795 1.07 18,797 1.13 
Industrial Machinery18,647 1.06 15,081 0.90 
Insurance Brokers16,903 0.96 17,546 1.05 
Systems Software16,842 0.96 20,694 1.24 
Electrical Components & Equipment15,984 0.91 20,934 1.25 
Hotels, Resorts & Cruise Lines15,360 0.87 15,378 0.92 
IT Consulting & Other Services14,905 0.85 14,919 0.89 
Internet & Direct Marketing Retail14,803 0.84 14,802 0.89 
Airlines14,259 0.81 10,535 0.63 
Advertising13,611 0.77 13,611 0.82 
Health Care Distributors12,795 0.73 12,810 0.77 
Apparel, Accessories & Luxury Goods12,574 0.72 13,734 0.82 
Restaurants10,327 0.59 10,248 0.61 
Commercial Printing7,841 0.45 7,868 0.47 
Education Services7,438 0.42 22,926 1.37 
Food Retail6,857 0.39 6,851 0.41 
Diversified Real Estate Activities6,283 0.36 15,288 0.92 
Trading Companies & Distributors5,718 0.33 10,228 0.61 
Oil & Gas Equipment & Services3,163 0.18 3,313 0.20 
Construction Materials2,174 0.12 2,150 0.13 
Leisure Facilities1,887 0.11 1,887 0.11 
Specialty Stores1,305 0.07 1,305 0.08 
Thrifts & Mortgage Finance752 0.04 938 0.06 
Other Diversified Financial Services113 0.01 113 0.01 
General Merchandise Stores— — 19,220 1.15 
Metal & Glass Containers— — 11,273 0.68 
Health Care Facilities— — 3,133 0.19 
Specialized REITs— — 133 0.01 
Total$1,757,661 100.00 %$1,669,170 100.00 %
42
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





  December 31, 2017 September 30, 2017
Cost:    % of Total Investments    % of Total Investments
 Healthcare services $209,030
 12.48% $210,527
 11.98%
 Internet software & services 200,405
 11.95
 270,192
 15.37
 Multi-sector holdings (1) 173,005
 10.32
 173,427
 9.87
 Healthcare equipment 99,614
 5.94
 99,614
 5.67
 Data processing & outsourced services 80,579
 4.81
 77,673
 4.42
 Environmental & facilities services 69,576
 4.15
 49,902
 2.84
 Construction & engineering 68,726
 4.10
 67,879
 3.86
 Pharmaceuticals 60,826
 3.63
 60,810
 3.46
 Advertising 55,596
 3.32
 84,720
 4.82
 Education services 51,733
 3.09
 50,013
 2.85
 Airlines 50,755
 3.03
 57,602
 3.28
 Specialty stores 46,407
 2.77
 58,530
 3.33
 Integrated telecommunication services 41,005
 2.45
 30,840
 1.75
 Technology distributors 34,264
 2.04
 —
 —
 Leisure facilities 32,898
 1.96
 30,931
 1.76
 Oil & gas refining & marketing 32,732
 1.95
 —
 —
 Air freight and logistics 32,530
 1.94
 32,530
 1.85
 Housewares & specialties 29,856
 1.78
 29,852
 1.70
 Oil & gas equipment services 27,546
 1.64
 27,598
 1.57
 Consumer electronics 24,889
 1.48
 23,176
 1.32
 Home improvement retail 22,566
 1.35
 22,944
 1.31
 Auto parts & equipment 21,191
 1.26
 21,191
 1.21
 Oil & gas exploration & production 17,913
 1.07
 —
 —
 Research & consulting services 17,135
 1.02
 37,952
 2.16
 Diversified support services 16,578
 0.99
 22,724
 1.29
 Healthcare technology 14,357
 0.86
 —
 —
 Security & alarm services 13,183
 0.79
 13,214
 0.75
 Real estate services 12,974
 0.77
 13,011
 0.74
 Other diversified financial services 11,334
 0.68
 12,079
 0.69
 Casinos & gaming 11,277
 0.67
 23,309
 1.33
 Commodity chemicals 10,950
 0.65
 —
 —
 Healthcare distributors 8,911
 0.53
 —
 —
 Precious metals & minerals 7,426
 0.44
 7,459
 0.42
 Trucking 7,055
 0.42
 7,081
 0.40
 Thrift & mortgage finance 6,905
 0.41
 7,240
 0.41
 Distributors 6,617
 0.39
 14,963
 0.85
 Industrial machinery 6,586
 0.39
 15,074
 0.86
 Commercial printing 5,968
 0.36
 5,983
 0.34
 Apparel, accessories & luxury goods 5,165
 0.31
 5,165
 0.29
 Wireless telecommunication services 5,000
 0.30
 —
 —
 Restaurants 4,898
 0.29
 4,910
 0.28
 Application software 4,818
 0.29
 51,444
 2.93
 General merchandise stores 4,206
 0.25
 —
 —
 Food retail 4,178
 0.25
 4,176
 0.24
 IT consulting & other services 4,060
 0.24
 4,127
 0.23
 Specialized finance 3,224
 0.19
 3,224
 0.18
 Human resources & employment services (6) —
 —
 —
 Hypermarkets & super centers —
 —
 11,979
 0.68
 Computer & electronics retail —
 —
 6,399
 0.36
 Multi-utilities —
 —
 6,201
 0.35
Total $1,676,441
 100.00% $1,757,665
 100.00%
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





  December 31, 2017 September 30, 2017
Fair Value:    % of Total Investments % of Total Net Assets    % of Total Investments % of Total Net Assets
 Internet software & services $194,291
 13.71% 23.70% $265,076
 17.20% 30.56%
 Multi-sector holdings (1) 163,865
 11.58
 19.99
 164,511
 10.67
 18.96
 Healthcare services 76,517
 5.41
 9.34
 93,912
 6.09
 10.82
 Data processing & outsourced services 71,357
 5.04
 8.71
 68,314
 4.43
 7.87
 Environmental & facilities services 69,975
 4.94
 8.54
 50,659
 3.29
 5.84
 Pharmaceuticals 62,958
 4.45
 7.68
 62,770
 4.07
 7.23
 Airlines 58,631
 4.14
 7.15
 59,511
 3.86
 6.86
 Healthcare equipment 56,586
 4.00
 6.90
 72,922
 4.73
 8.40
 Construction & engineering 51,113
 3.61
 6.24
 50,269
 3.26
 5.79
 Advertising 45,970
 3.25
 5.61
 83,648
 5.43
 9.64
 Specialty stores 45,508
 3.22
 5.55
 56,867
 3.69
 6.55
 Education services 35,598
 2.52
 4.34
 38,254
 2.48
 4.41
 Integrated telecommunication services 35,580
 2.51
 4.34
 31,358
 2.03
 3.61
 Leisure facilities 34,634
 2.45
 4.23
 32,591
 2.11
 3.76
 Technology distributors 34,253
 2.42
 4.18
 —
 —
 —
 Oil & gas refining & marketing 32,986
 2.33
 4.02
 —
 —
 —
 Housewares & specialties 29,925
 2.11
 3.65
 29,775
 1.93
 3.43
 Oil & gas equipment services 28,620
 2.02
 3.49
 28,347
 1.84
 3.27
 Consumer electronics 25,901
 1.83
 3.16
 24,066
 1.56
 2.77
 Home improvement retail 24,600
 1.74
 3.00
 24,784
 1.61
 2.86
 Auto parts & equipment 21,661
 1.53
 2.64
 21,715
 1.41
 2.50
 Research & consulting services 18,761
 1.33
 2.29
 38,531
 2.50
 4.44
 Oil & gas exploration & production 17,865
 1.26
 2.18
 —
 —
 —
 Diversified support services 16,143
 1.14
 1.97
 22,554
 1.46
 2.60
 Healthcare technology 14,609
 1.03
 1.78
 —
 —
 —
 Security & alarm services 13,011
 0.92
 1.59
 13,103
 0.85
 1.51
 Real estate services 12,786
 0.90
 1.56
 13,014
 0.84
 1.50
 Casinos & gaming 11,446
 0.81
 1.40
 23,495
 1.52
 2.71
 Commodity chemicals 10,953
 0.77
 1.34
 —
 —
 —
 Other diversified financial services 10,951
 0.77
 1.34
 11,646
 0.76
 1.34
 Healthcare distributors 9,053
 0.64
 1.10
 —
 —
 —
 Precious metals & minerals 7,490
 0.53
 0.91
 7,464
 0.48
 0.86
 Trucking 7,062
 0.50
 0.86
 7,106
 0.46
 0.82
 Application software 6,574
 0.46
 0.80
 53,905
 3.50
 6.21
 Distributors 6,516
 0.46
 0.80
 14,829
 0.96
 1.71
 Industrial machinery 6,465
 0.46
 0.79
 15,004
 0.97
 1.73
 Commercial printing 6,045
 0.43
 0.74
 6,045
 0.39
 0.70
 Leisure products 5,900
 0.42
 0.72
 5,900
 0.38
 0.68
 Thrift & mortgage finance 5,629
 0.40
 0.69
 6,129
 0.40
 0.71
 Wireless telecommunication services 5,044
 0.36
 0.62
 —
 —
 —
 Restaurants 4,851
 0.34
 0.59
 4,917
 0.32
 0.57
 General Merchandise Stores 4,484
 0.32
 0.55
 —
 —
 —
 Food retail 4,231
 0.30
 0.52
 4,251
 0.28
 0.49
 IT consulting & other services 3,918
 0.28
 0.48
 3,927
 0.25
 0.45
 Specialized finance 3,276
 0.23
 0.40
 3,278
 0.21
 0.38
 Air freight and logistics 1,810
 0.13
 0.22
 1,810
 0.12
 0.21
 Human resources & employment services 2
 —
 —
 —
 —
 —
 Hypermarkets & super centers —
 —
 —
 11,504
 0.75
 1.33
 Computer & electronics retail —
 —
 —
 6,498
 0.42
 0.75
 Multi-utilities —
 —
 —
 6,255
 0.41
 0.72
 Apparel, accessories & luxury goods —
 —
 —
 1,241
 0.08
 0.14
Total $1,415,404
 100.00% 172.70% $1,541,755
 100.00% 177.69%
December 31, 2020September 30, 2020
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Application Software$221,153 12.88 %22.88 %$160,591 10.21 %17.57 %
Multi-Sector Holdings (1)129,053 7.54 13.37 121,751 7.74 13.31 
Data Processing & Outsourced Services122,188 7.14 12.66 99,589 6.33 10.89 
Pharmaceuticals118,253 6.91 12.26 103,092 6.55 11.27 
Biotechnology111,941 6.54 11.60 96,624 6.14 10.56 
Specialized Finance69,215 4.04 7.17 48,425 3.08 5.29 
Health Care Services62,275 3.64 6.45 59,925 3.81 6.55 
Personal Products55,959 3.27 5.80 51,024 3.24 5.58 
Movies & Entertainment51,318 3.00 5.32 43,592 2.77 4.76 
Property & Casualty Insurance48,067 2.81 4.98 46,737 2.97 5.11 
Integrated Telecommunication Services42,543 2.48 4.41 41,091 2.61 4.49 
Real Estate Services38,218 2.23 3.96 37,723 2.40 4.12 
Specialty Chemicals37,006 2.16 3.84 39,008 2.48 4.26 
Fertilizers & Agricultural Chemicals34,567 2.02 3.58 33,719 2.14 3.69 
Auto Parts & Equipment32,516 1.90 3.37 31,382 1.99 3.43 
Aerospace & Defense31,694 1.85 3.28 24,521 1.56 2.68 
Internet Services & Infrastructure31,322 1.83 3.25 26,587 1.69 2.91 
Oil & Gas Refining & Marketing29,673 1.73 3.08 29,826 1.90 3.26 
Electronic Components29,207 1.71 3.03 26,552 1.69 2.90 
Managed Health Care27,141 1.59 2.81 26,681 1.70 2.92 
Research & Consulting Services24,945 1.46 2.59 24,212 1.54 2.65 
Oil & Gas Storage & Transportation23,231 1.36 2.41 25,749 1.64 2.81 
Health Care Technology22,109 1.29 2.29 22,058 1.40 2.41 
Construction & Engineering21,954 1.28 2.28 13,465 0.86 1.47 
Health Care Supplies21,755 1.27 2.25 21,634 1.37 2.36 
Airport Services21,275 1.24 2.20 21,283 1.35 2.33 
Independent Power Producers & Energy Traders20,538 1.20 2.13 20,812 1.32 2.27 
Insurance Brokers18,766 1.10 1.94 18,083 1.15 1.98 
Diversified Support Services18,302 1.07 1.90 17,689 1.12 1.93 
Airlines17,630 1.03 1.83 13,132 0.83 1.44 
Hotels, Resorts & Cruise Lines17,057 1.00 1.77 17,081 1.09 1.87 
Systems Software17,017 0.99 1.76 20,481 1.30 2.24 
Electrical Components & Equipment16,199 0.95 1.68 20,465 1.30 2.24 
Internet & Direct Marketing Retail16,015 0.94 1.66 15,307 0.97 1.67 
Industrial Machinery15,537 0.91 1.61 11,643 0.74 1.27 
IT Consulting & Other Services14,259 0.83 1.48 13,905 0.88 1.52 
Advertising13,857 0.81 1.44 13,440 0.85 1.47 
Health Care Distributors12,511 0.73 1.30 12,260 0.78 1.34 
Restaurants10,225 0.60 1.06 7,886 0.50 0.86 
Diversified Real Estate Activities7,610 0.44 0.79 16,846 1.07 1.84 
Commercial Printing7,306 0.43 0.76 7,334 0.47 0.80 
Food Retail6,998 0.41 0.73 6,998 0.44 0.76 
Apparel, Accessories & Luxury Goods6,753 0.39 0.70 7,856 0.50 0.86 
Education Services6,653 0.39 0.69 7,088 0.45 0.77 
Trading Companies & Distributors5,698 0.33 0.59 10,069 0.64 1.10 
Oil & Gas Equipment & Services2,471 0.14 0.26 2,588 0.16 0.28 
Construction Materials2,182 0.13 0.23 2,073 0.13 0.23 
Thrifts & Mortgage Finance113 0.01 0.01 353 0.02 0.04 
Leisure Facilities49 — 0.01 — — — 
General Merchandise Stores— — — 17,877 1.14 1.95 
Metal & Glass Containers— — — 11,833 0.75 1.29 
Health Care Facilities— — — 3,640 0.23 0.40 
Specialized REITs— — — 222 0.01 0.02 
Leisure Products— — — 49 — 0.01 
Total$1,712,324 100.00 %177.45 %$1,573,851 100.00 %172.03 %
___________________
(1)This industry includes the Company's investment in SLF JV I.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(1)This industry includes the Company's investments in SLF JV I and certain limited partnership interests.
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





As of December 31, 20172020 and September 30, 2017,2020, the Company had no single investment that represented greater than 10% of the total investment portfolio at fair value. Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses, canmay fluctuate upon repayment or sale of an investment and in any given period can be highly concentrated among several investments. For the three months ended December 31, 2017
43
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and December 31, 2016, no individual investment produced investment income that exceeded 10% of total investment income.per share amounts, percentages and as otherwise indicated)





Senior Loan Fund JV I, LLC
In May 2014, the Company entered into an LLC agreement with Trinity Universal Insurance Company, a subsidiary of Kemper Corporation ("Kemper"), to form SLF JV I. On July 1, 2014, SLF JV I began investingThe Company co-invests in senior secured loans of middle-market companies and other corporate debt securities. The Company co-invests in these securities with Kemper through its investment in SLF JV I. SLF JV I is managed by a four person Board of Directors, two of whom are selected by the Company and two of whom are selected by Kemper. All portfolio decisions and investment decisions in respect of SLF JV I must be approved by the SLF JV I investment committee, which consists of one representative selected by the Company and one representative selected by Kemper (with approval from a representative of each required). Since the Company does not have a controlling financial interest in SLF JV I, the Company does not consolidate SLF JV I. As of December 31, 2017,
SLF JV I is capitalized pro rata with LLC equity interests as transactions are completed and may be capitalized with additional mezzaninesubordinated notes issued to the Company and Kemper by SLF Repack Issuer 2016JV I. The subordinated notes issued by SLF JV I are referred to as the SLF JV I Notes. The SLF JV I Notes are senior in right of payment to SLF JV I LLC which mature on October 12, 2036.equity interests and subordinated in right of payment to SLF JV I’s secured debt. As of December 31, 20172020 and September 30, 2017,2020, the Company and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I. As of December 31, 2017I and September 30, 2017, the Company and Kemper owned 87.5% and 12.5%, respectively, of the outstanding mezzanine notes.SLF JV I Notes.
SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch (as amended, the "Deutsche Bank I facility"Facility"), which permitted up to $200.0$225.0 million and $250.0 million of borrowings (subject to borrowing base and other limitations) as of December 31, 20172020 and September 30, 2017. As of December 31, 2017, the stated maturity date of the Deutsche Bank I facility was July 1, 2023, and borrowings2020, respectively. Borrowings under the Deutsche Bank I facility bear interest atFacility are secured by all of the assets of SLF JV I Funding LLC, a rate equal tospecial purpose financing subsidiary of SLF JV I. As of December 31, 2020, the 3-month LIBOR plus 2.25% per annum during the reinvestment period and at a rate equal to LIBOR plus 2.40% per annum during the amortization period. The reinvestment period of the Deutsche Bank I Facility expires on July 7, 2018. Underwas scheduled to expire June 28, 2021 and the maturity date for the Deutsche Bank I facility, $105.1 million and $71.5 million of borrowingsFacility was outstanding as of December 31, 2017 and September 30, 2017, respectively.
Prior to December 21, 2017, SLF JV I also had an additional $200.0 million senior credit facility with Deutsche Bank AG, New York Branch (the "Deutsche Bank II facility"). Effective December 21, 2017, SLF JV I merged its financing subsidiaries and, in connection with such merger, terminated the Deutsche Bank II facility. As of September 30, 2017, there were $41.6 million of borrowings outstanding under the Deutsche Bank II facility.
June 29, 2026. As of December 31, 2017,2020, borrowings under the Deutsche Bank I Facility accrued interest at a rate equal to 3-month LIBOR plus 1.85% per annum during the reinvestment period and 3-month LIBOR plus 2.00% per annum during the amortization period. Under the Deutsche Bank I Facility, $175.4 million and $167.9 million of borrowings were outstanding as of December 31, 2020 and September 30, 2020, respectively.
On December 9, 2020, the waiver period under the Deutsche Bank I Facility during which the facility were securedagent was restricted from revaluing certain collateral obligations where the change in valuation was caused by all ofor resulted from a business disruption due primarily to the assets of the special purpose financing subsidiary of SLF JV I.COVID-19 pandemic was terminated.
As of December 31, 20172020 and September 30, 2017,2020, SLF JV I had total assets of $284.5$341.2 million and $276.8 million. As of December 31, 2017, the Company's investment in SLF JV I consisted of LLC equity interests of $4.9$313.5 million, at fair value, and Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed rate notes of $100.8 million and $27.5 million, at fair value, respectively. As of September 30, 2017, the Company's investment in SLF JV I consisted of LLC equity interests of $5.5 million, at fair value, and Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed rate notes of $101.0 million and $27.6 million, at fair value, respectively. In connection with the restructuring in December 2016 of the Company’s and Kemper’s investment in SLF JV I, the Company and Kemper exchanged their holdings of subordinated notes of SLF JV I for the mezzanine notes issued by SLF Repack Issuer 2016 LLC, a newly formed, wholly owned special purpose issuer subsidiary of SLF JV I, which are secured by SLF JV I’s LLC equity interests in the special purpose entities serving as borrowers under the Deutsche Bank I facility and Deutsche Bank II facility described above. The mezzanine notes are senior in right of payment to the SLF JV I LLC equity interests and any contributions made by the Company to fund investments of SLF JV I through SLF Repack Issuer 2016 LLC. SLF JV I's portfolio primarily consisted of middle-market and other corporate debt securitiessenior secured loans to 56 portfolio companies as of 34 and 32 "eligible portfolio companies" (as defined in Section 2(a)(46) of the 1940 Act) aseach of December 31, 20172020 and September 30, 2017, respectively.2020. The portfolio companies in SLF JV I are in industries similar to those in which the Company may invest directly. As of December 31, 2020, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $125.5 million, at fair value. As of September 30, 2020, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $117.4 million, at fair value.
As of each of December 31, 20172020 and September 30, 2017,2020, the Company and Kemper had funded approximately $165.5 million to SLF JV I, of which $144.8 million was from the Company. As of December 31, 2017,2020 and September 30, 2020, the Company and Kemper had the option to fund additional mezzanine notes,SLF JV I Notes, subject to additional equity funding to SLF JV I. As of each of December 31, 20172020 and September 30, 2017,2020, the Company had commitments to fund LLC equity interests in SLF JV I of $17.5 million, of which $1.3 million was unfunded.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Below is a summary of SLF JV I's portfolio, followed by a listing of the individual loans in SLF JV I's portfolio as of December 31, 20172020 and September 30, 2017:2020:
December 31, 2020September 30, 2020
Senior secured loans (1)$313,978$307,579
Weighted average interest rate on senior secured loans (2)5.65%5.44%
Number of borrowers in SLF JV I5656
Largest exposure to a single borrower (1)$9,879$10,487
Total of five largest loan exposures to borrowers (1)$46,981$49,097
  December 31, 2017 September 30, 2017
Senior secured loans (1) $249,967 $245,063
Weighted average interest rate on senior secured loans (2) 7.81% 7.70%
Number of borrowers in SLF JV I 34 32
Largest exposure to a single borrower (1) $18,251 $18,374
Total of five largest loan exposures to borrowers (1) $77,991 $82,728
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans.

loans at fair value.
SLF JV I Portfolio as of December 31, 2017
44
Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
AdVenture Interactive, Corp. (3) Advertising 927 Common Stock Shares 
 
   
 $1,088
 $656
Allied Universal Holdco LLC (3) Security & alarm services First Lien 7/28/2022 LIBOR+3.75% (1% floor) 5.44% $6,965
 7,019
 6,920
Ameritox Ltd. (3)(5) Healthcare services First Lien 4/11/2021 LIBOR+5% (1% floor) 3% PIK 6.69% 5,926
 5,638
 721
    301,913.06 Class B Preferred Units         302
 —
    928.96 Class A Common Units         5,474
 —
Total Ameritox Ltd.           5,926
 11,414
 721
 Asset International, Inc.  Research & Consulting Services First Lien 12/29/2024 LIBOR+4.5% (1% floor) 6.19% 7,000
 6,860
 6,860
BJ's Wholesale Club, Inc. Hypermarkets & super centers First Lien 1/26/2024 LIBOR+3.75% (1% floor) 4.95% 4,975
 4,981
 4,902
 Chloe Ox Parent LLC  Healthcare services First Lien 12/14/2024 LIBOR+5% (1% floor) 6.64% 10,000
 9,900
 10,037
Compuware Corporation Internet software & services First Lien B3 12/15/2021 LIBOR+4.25% (1% floor) 5.63% 11,126
 11,019
 11,213
DFT Intermediate LLC Specialized finance First Lien 3/1/2023 LIBOR+5.5% (1% floor) 6.85% 10,669
 10,433
 10,592
Digital River, Inc. Internet software & services First Lien 2/12/2021 LIBOR+6.5% (1% floor) 8.08% 2,775
 2,786
 2,782
Dodge Data & Analytics LLC (3) Data processing & outsourced services First Lien 10/31/2019 LIBOR+8.75% (1% floor) 10.13% 9,199
 9,228
 9,116
DTZ U.S. Borrower, LLC (3) Real estate services First Lien 11/4/2021 LIBOR+3.25% (1% floor) 4.94% 6,946
 6,978
 6,867
Edge Fitness, LLC Leisure facilities First Lien 12/31/2019 LIBOR+7.75% (1% floor) 9.05% 10,600
 10,601
 10,600
EOS Fitness Opco Holdings, LLC (3) Leisure facilities First Lien 12/30/2019 LIBOR+8.75% (0.75% floor) 10.12% 18,251
 18,078
 18,433
Everi Payments Inc. Casinos & gaming First Lien 5/9/2024 LIBOR+4.5% (1% floor) 4.98% 4,975
 4,952
 5,032
Falmouth Group Holdings Corp. Specialty chemicals First Lien 12/13/2021 LIBOR+6.75% (1% floor) 8.44% 4,528
 4,497
 4,528
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





SLF JV I Portfolio as of December 31, 2020
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Access CIG, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.98 %Diversified Support Services$9,182 $9,149 $9,107 
ADB Companies, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %Construction & Engineering6,667 6,500 6,533 (4)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 12/18/2025Construction & Engineering— (33)(27)(4)(5)
          Total ADB Companies, LLC6,467 6,506 
AdVenture Interactive, Corp.927 shares of common stockAdvertising1,390 1,416 (4)
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.65 %Electrical Components & Equipment6,011 5,894 5,974 (4)
Airbnb, Inc.First Lien Term Loan, LIBOR+7.50% cash due 4/17/20258.50 %Hotels, Resorts & Cruise Lines3,044 2,977 3,306 (4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.24 %Integrated Telecommunication Services4,631 4,447 4,623 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %Pharmaceuticals9,879 9,643 9,500 
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %Movies & Entertainment7,940 7,861 7,384 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/2025Personal Products2,821 2,247 1,890 (6)
Apptio, Inc.First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %Application Software4,615 4,554 4,529 (4)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025Application Software— (5)(7)(4)(5)
Total Apptio, Inc.4,549 4,522 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+5.75% cash due 12/24/20266.75 %Airport Services6,451 6,314 6,013 (4)
Blackhawk Network Holdings, Inc.First Lien Term Loan, LIBOR+3.00% cash due 6/15/20253.15 %Data Processing & Outsourced Services9,750 9,734 9,517 
Boxer Parent Company Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/2/20254.40 %Systems Software7,513 7,430 7,497 (4)
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.15 %Oil & Gas Equipment & Services7,311 7,288 6,405 
C5 Technology Holdings, LLC171 Common UnitsData Processing & Outsourced Services— — (4)
7,193,539.63 Preferred UnitsData Processing & Outsourced Services7,194 5,683 (4)
Total C5 Technology Holdings, LLC7,194 5,683 
Carrols Restaurant Group, Inc.First Lien Term Loan, LIBOR+6.25% cash due 4/30/20267.25 %Restaurants3,980 3,792 3,965 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %Oil & Gas Refining & Marketing7,165 7,094 7,140 (4)
Clear Channel Outdoor Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 8/21/20263.71 %Advertising330 291 318 
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.50 %Alternative Carriers7,418 7,252 7,462 
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+3.75% cash due 7/9/20264.00 %Biotechnology5,925 5,881 5,890 
Dcert Buyer, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.15 %Internet Services & Infrastructure7,940 7,920 7,945 
Dealer Tire, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 12/12/20254.40 %Distributors940 902 937 
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.50 %Application Software7,463 7,388 7,411 
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20245.25 %Systems Software7,762 7,717 7,708 
45
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
Garretson Resolution Group, Inc. Diversified support services First Lien 5/22/2021 LIBOR+6.5% (1% floor) 8.19% $5,797
 $5,780
 $5,432
 Gigamon Inc.  Systems software First Lien 12/18/2024 LIBOR+4.5% (1% floor) 6.03% 8,000
 7,920
 7,960
InMotion Entertainment Group, LLC (3) Consumer electronics First Lien 10/1/2021 LIBOR+7.25% (1.25% floor) 8.95% 8,750
 8,769
 8,750
    First Lien B 10/1/2021 LIBOR+7.25% (1.25% floor) 8.95% 8,750
 8,660
 8,750
Total InMotion Entertainment Group, LLC           17,500
 17,429
 17,500
 Keypath Education, Inc. (3)  Advertising First Lien 4/3/2022 LIBOR+7% (1.00% floor) 8.69% 2,040
 2,039
 2,040
    927 shares Common Stock         1,391
 815
            2,040
 3,430
 2,855
Lift Brands, Inc. (3) Leisure facilities First Lien 12/23/2019 LIBOR+7.5% (1% floor) 9.19% 18,149
 18,132
 18,149
Metamorph US 3, LLC (3)(5) Internet software & services First Lien 12/1/2020 LIBOR+5.5% (1% floor) 2% PIK 7.07% 9,942
 9,232
 3,775
Motion Recruitment Partners LLC Human resources & employment services First Lien 2/13/2020 LIBOR+6% (1% floor) 7.57% 4,298
 4,255
 4,303
NAVEX Global, Inc. Internet software & services First Lien 11/19/2021 LIBOR+4.75% (1% floor) 5.82% 5,944
 5,911
 5,974
New IPT, Inc. (3)  Oil & gas equipment & services First Lien 3/17/2021 LIBOR+5% (1% floor) 6.69% 1,794
 1,794
 1,794
    Second Lien 9/17/2021 LIBOR+5.1% (1% floor) 6.79% 1,094
 1,094
 1,094
    21.876 Class A Common Units       
 —
 420
Total New IPT, Inc.           2,888
 2,888
 3,308
Novetta Solutions, LLC Internet software & services First Lien 9/30/2022 LIBOR+5% (1% floor) 6.70% 6,102
 6,053
 5,937
OmniSYS Acquisition Corporation (3) Diversified support services First Lien 11/21/2018 LIBOR+7.5% (1% floor) 9.19% 10,896
 10,899
 10,873
Refac Optical Group (3) Specialty stores First Lien A 9/30/2018 LIBOR+8% 9.56% 4,111
 4,098
 4,111
Salient CRGT, Inc. (3)  IT consulting & other services First Lien 2/28/2022 LIBOR+5.75% (1% floor) 7.32% 2,405
 2,364
 2,426
Scientific Games International, Inc. (3) Casinos & gaming First Lien 8/14/2024 LIBOR+3.25% 4.67% 6,615
 6,583
 6,677
SHO Holding I Corporation Footwear First Lien 10/27/2022 LIBOR+5% (1% floor) 6.42% 8,573
 8,545
 8,273
TravelClick, Inc. (3) Internet software & services Second Lien 11/6/2021 LIBOR+7.75% (1% floor) 9.32% 5,127
 5,127
 5,153
TV Borrower US, LLC Integrated telecommunications services First Lien 2/22/2024 LIBOR+4.75% (1% floor) 6.44% 2,034
 2,025
 2,045
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien 9/24/2021 LIBOR+7% (1% floor) 8.57% 12,965
 12,838
 12,965
Vubiquity, Inc. Application software First Lien 8/12/2021 LIBOR+5.5% (1% floor) 7.19% 2,646
 2,630
 2,626
            $249,967
 $255,973
 $239,601
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.75% cash due 10/2/20255.75 %Health Care Services$2,231 $2,188 $2,221 
Guidehouse LLPSecond Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.15 %Research & Consulting Services6,000 5,980 6,000 (4)
Helios Software Holdings, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/24/20254.52 %Systems Software3,960 3,920 3,946 
Intelsat Jackson Holdings S.A.First Lien Term Loan, PRIME+4.75% cash due 11/27/20238.00 %Alternative Carriers3,568 3,543 3,628 
First Lien Term Loan, LIBOR+5.50% cash due 7/13/20226.50 %Alternative Carriers1,943 1,762 1,988 
Total Intelsat Jackson Holdings S.A.5,305 5,616 
LogMeIn, Inc.First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.90 %Application Software5,000 4,880 4,994 
Maravai Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 10/19/20275.25 %Biotechnology6,875 6,806 6,952 
Mindbody, Inc.First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/20258.00 %Internet Services & Infrastructure4,564 4,502 4,181 (4)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025Internet Services & Infrastructure— (7)(40)(4)(5)
Total Mindbody, Inc.4,495 4,141 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %Application Software3,863 3,829 3,854 (4)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026Application Software— (1)— (4)(5)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (3)(1)(4)(5)
       Total MRI Software LLC3,825 3,853 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.15 %Health Care Technology5,955 5,925 5,955 
New IPT, Inc.First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %Oil & Gas Equipment & Services941 941 735 (4)
21.876 Class A Common Units in New IPT Holdings, LLCOil & Gas Equipment & Services— — (4)
Total New IPT, Inc.941 735 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.75% cash due 3/31/20255.75 %Electrical Components & Equipment6,807 6,787 6,671 
Northwest Fiber, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 4/30/20275.65 %Integrated Telecommunication Services2,394 2,311 2,406 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20226.00 %Application Software5,915 5,897 5,903 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.15 %Application Software7,879 7,843 7,820 
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026Application Software— — — (5)
      Total OEConnection LLC7,843 7,820 
Olaplex, Inc.First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %Personal Products6,395 6,298 6,395 (4)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025Personal Products— (9)— (4)(5)
       Total Olaplex, Inc.6,289 6,395 
Park Place Technologies, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %Internet Services & Infrastructure5,000 4,804 4,817 (4)
PetVet Care Centers, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 2/14/20255.25 %Specialized Consumer Services2,736 2,729 2,753 
PG&E CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 6/23/20255.50 %Electric Utilities5,970 5,889 6,051 
Planview Parent, Inc.Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %Application Software4,503 4,435 4,503 (4)
Recorded Books Inc.First Lien Term Loan, LIBOR+4.25% cash due 8/29/20254.75 %Publishing6,000 5,940 6,025 
RS Ivy Holdco, Inc.First Lien Term Loan, LIBOR+5.50% cash due 12/23/20276.50 %Oil & Gas Exploration & Production7,000 6,895 6,965 
46
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %Metal & Glass Containers$2,742 $2,714 $2,743 
Salient CRGT, Inc.First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %Aerospace & Defense2,080 2,070 2,002 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.25% cash due 4/27/20246.25 %Footwear8,445 8,430 7,347 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.50 %Health Care Services9,725 9,669 9,433 
Sirva Worldwide, Inc.First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.65 %Diversified Support Services4,750 4,679 4,352 
Star US Bidco LLCFirst Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %Industrial Machinery3,709 3,529 3,649 
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.00% cash due 10/1/20265.00 %Personal Products7,920 7,880 7,969 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20254.00 %Application Software4,876 4,580 4,574 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.25% cash due 9/3/20244.25 %Health Care Facilities4,949 4,931 4,876 
Veritas US Inc.First Lien Term Loan, LIBOR+5.50% cash due 9/1/20256.50 %Application Software6,484 6,362 6,475 
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.65 %Health Care Technology4,101 4,070 4,107 (4)
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %Integrated Telecommunication Services7,960 7,654 7,808 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %Aerospace & Defense6,000 5,959 5,085 (4)
$313,978 $317,432 $313,261 
__________
(1) Represents the interest rate as of December 31, 2017.2020. All interest rates are payable in cash, unless otherwise noted.
(2) Represents the current determination of fair value as of December 31, 2017 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(3) This investment is held by both the Company and SLF JV I as of December 31, 2017.
(4) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.
(5) This investment was onagreement and the cash non-accrual status as of December 31, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





SLF JV I Portfolio as of September 30, 2017
Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
AdVenture Interactive, Corp. (3) Advertising 927 Common Stock Shares         $1,088
 $1,412
Allied Universal Holdco LLC (3) Security & alarm services First Lien 7/28/2022 LIBOR+3.75% (1% floor) 5.08% $6,982
 7,040
 6,976
Ameritox Ltd. (3)(5) Healthcare services First Lien 4/11/2021 LIBOR+5% (1% floor) 3% PIK 6.33% 5,759
 5,638
 668
    301,913.06 Class B Preferred Units         302
 —
    928.96 Class A Common Units         5,474
 —
Total Ameritox Ltd.           5,759
 11,414
 668
BeyondTrust Software, Inc. (3) Application software First Lien 9/25/2019 LIBOR+7% (1% floor) 8.33% 15,330
 15,231
 15,329
BJ's Wholesale Club, Inc. (3) Hypermarkets & super centers First Lien 1/26/2024 LIBOR+3.75% (1% floor) 4.99% 4,988
 4,993
 4,793
Compuware Corporation Internet software & services First Lien B3 12/15/2021 LIBOR+4.25% (1% floor) 5.49% 11,154
 11,041
 11,293
DFT Intermediate LLC (3) Specialized finance First Lien 3/1/2023 LIBOR+5.5% (1% floor) 6.74% 10,723
 10,474
 10,652
Digital River, Inc. Internet software & services First Lien 2/12/2021 LIBOR+6.5% (1% floor) 7.82% 4,524
 4,541
 4,546
Dodge Data & Analytics LLC (3) Data processing & outsourced services First Lien 10/31/2019 LIBOR+8.75% (1% floor) 10.13% 9,339
 9,372
 8,744
DTZ U.S. Borrower, LLC (3) Real estate services First Lien 11/4/2021 LIBOR+3.25% (1% floor) 4.57% 6,964
 6,998
 6,990
Edge Fitness, LLC Leisure facilities First Lien 12/31/2019 LIBOR+7.75% (1% floor) 9.05% 10,600
 10,602
 10,600
EOS Fitness Opco Holdings, LLC (3) Leisure facilities First Lien 12/30/2019 LIBOR+8.75% (0.75% floor) 9.99% 18,374
 18,182
 18,557
Everi Payments Inc.(3) Casinos & gaming First Lien 5/9/2024 LIBOR+4.5% (1% floor) 5.74% 4,988
 4,964
 5,039
Falmouth Group Holdings Corp. Specialty chemicals First Lien 12/13/2021 LIBOR+6.75% (1% floor) 8.08% 4,610
 4,578
 4,610
Garretson Resolution Group, Inc. Diversified support services First Lien 5/22/2021 LIBOR+6.5% (1% floor) 7.83% 5,836
 5,818
 5,766
InMotion Entertainment Group, LLC (3) Consumer electronics First Lien 10/1/2018 LIBOR+7.75% (1.25% floor) 9.09% 8,875
 8,884
 8,875
    First Lien B 10/1/2018 LIBOR+7.75% (1.25% floor) 9.09% 8,875
 8,828
 8,871
Total InMotion Entertainment Group, LLC           17,750
 17,712
 17,746
 Keypath Education, Inc. (3)  Advertising First Lien 4/3/2022 LIBOR+7% (1.00% floor) 8.33% 2,040
 2,040
 2,039
    927 shares Common Stock         1,391
 809
            2,040
 3,431
 2,848
Lift Brands, Inc. (3) Leisure facilities First Lien 12/23/2019 LIBOR+7.5% (1% floor) 8.83% 18,276
 18,257
 18,275
Metamorph US 3, LLC (3)(5) Internet software & services First Lien 12/1/2020 LIBOR+5.5% (1% floor) 2% PIK 6.74% 9,969
 9,481
 3,786
Motion Recruitment Partners LLC Human resources & employment services First Lien 2/13/2020 LIBOR+6% (1% floor) 7.24% 4,330
 4,281
 4,330
NAVEX Global, Inc. Internet software & services First Lien 11/19/2021 LIBOR+4.75% (1% floor) 5.49% 5,959
 5,925
 5,982
New IPT, Inc. (3)  Oil & gas equipment & services First Lien 3/17/2021 LIBOR+5% (1% floor) 6.33% 1,794
 1,794
 1,794
    Second Lien 9/17/2021 LIBOR+5.1% (1% floor) 6.43% 1,094
 1,094
 1,094
    21.876 Class A Common Units         —
 321
Total New IPT, Inc.           2,888
 2,888
 3,209
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
Novetta Solutions, LLC Internet software & services First Lien 9/30/2022 LIBOR+5% (1% floor) 6.34% $6,118
 $6,066
 $5,950
OmniSYS Acquisition Corporation (3) Diversified support services First Lien 11/21/2018 LIBOR+7.5% (1% floor) 8.83% 10,896
 10,900
 10,833
Refac Optical Group (3) Specialty stores First Lien A 9/30/2018 LIBOR+8% 9.23% 4,623
 4,605
 4,623
Salient CRGT, Inc. (3)  IT consulting & other services First Lien 2/28/2022 LIBOR+5.75% (1% floor) 6.99% 2,457
 2,412
 2,440
Scientific Games International, Inc. (3) Casinos & gaming First Lien 8/14/2024 LIBOR+3.25% (1% floor) 4.58% 6,632
 6,598
 6,651
SHO Holding I Corporation Footwear First Lien 10/27/2022 LIBOR+5% (1% floor) 6.24% 8,594
 8,566
 8,487
TravelClick, Inc. (3) Internet software & services Second Lien 11/6/2021 LIBOR+7.75% (1% floor) 8.99% 5,127
 5,127
 5,153
TV Borrower US, LLC Integrated telecommunications services First Lien 2/22/2024 LIBOR+4.75% (1% floor) 6.08% 3,582
 3,565
 3,607
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien 9/24/2021 LIBOR+7% (1% floor) 8.24% 12,998
 12,862
 12,998
Vubiquity, Inc. Application software First Lien 8/12/2021 LIBOR+5.5% (1% floor) 6.83% 2,653
 2,636
 2,633
            $245,063
 $251,648
 $235,526
__________
(1) Represents the interest rate as of September 30, 2017.period end. All the LIBOR shown above is in U.S. dollars. As of December 31, 2020, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.25%, the 180-day LIBOR at 0.26% and the PRIME at 3.25%. Most loans include an interest rates are payable in cash, unless otherwise noted.floor, which generally ranges from 0% to 1%.
(2)(3) Represents the current determination of fair value as of September 30, 2017December 31, 2020 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(3)(4) This investment iswas held by both the Company and SLF JV I as of December 31, 2020.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(6) This investment was on cash non-accrual status as of December 31, 2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.


47
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




SLF JV I Portfolio as of September 30, 2017.2020
(4)
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Access CIG, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.91 %Diversified Support Services$9,206 $9,170 $9,029 
AdVenture Interactive, Corp.927 shares of common stockAdvertising1,390 1,373 (4)
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.65 %Electrical Components & Equipment6,038 5,914 5,781 (4)
Airbnb, Inc.First Lien Term Loan, LIBOR+7.50% cash due 4/17/20258.50 %Hotels, Resorts & Cruise Lines3,051 2,981 3,311 (4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.15 %Integrated Telecommunication Services4,643 4,450 4,527 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %Pharmaceuticals9,879 9,623 9,566 
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.00% cash due 11/26/20264.75 %Movies & Entertainment7,960 7,880 6,846 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/2025Personal Products2,828 2,282 1,248 (6)
Apptio, Inc.First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %Application Software4,615 4,550 4,526 (4)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025Application Software— (5)(8)(4)(5)
Total Apptio, Inc.4,545 4,518 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %Airport Services6,468 6,324 6,015 (4)
Blackhawk Network Holdings, Inc.First Lien Term Loan, LIBOR+3.00% cash due 6/15/20253.15 %Data Processing & Outsourced Services9,775 9,758 9,251 
Boxer Parent Company Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/2/20254.40 %Systems Software7,532 7,448 7,331 (4)
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.16 %Oil & Gas Equipment & Services7,331 7,306 5,600 
C5 Technology Holdings, LLC171 Common UnitsData Processing & Outsourced Services— — (4)
7,193,539.63 Preferred UnitsData Processing & Outsourced Services7,194 5,683 (4)
Total C5 Technology Holdings, LLC7,194 5,683 
Carrols Restaurant Group, Inc.First Lien Term Loan, LIBOR+6.25% cash due 4/30/20267.25 %Restaurants3,990 3,792 3,960 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+5.00% cash due 3/28/20246.00 %Oil & Gas Refining & Marketing7,184 7,112 6,842 (4)
Clear Channel Outdoor Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 8/21/20263.76 %Advertising331 290 302 
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.50 %Alternative Carriers7,437 7,262 7,228 
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+3.75% cash due 7/9/20263.97 %Biotechnology5,940 5,895 5,895 
Dcert Buyer, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.15 %Internet Services & Infrastructure7,960 7,940 7,879 
Dealer Tire, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 12/12/20254.40 %Distributors943 902 924 
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.50 %Application Software7,481 7,406 7,461 
Frontier Communications CorporationFirst Lien Term Loan, PRIME+2.75% cash due 6/15/20246.00 %Integrated Telecommunication Services3,939 3,901 3,887 
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20245.25 %Systems Software7,781 7,734 7,684 
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.75% cash due 10/2/20255.75 %Health Care Services2,231 2,187 2,185 
Guidehouse LLPSecond Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.15 %Research & Consulting Services6,000 5,979 5,790 (4)
48
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Helios Software Holdings, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/24/20254.52 %Systems Software$3,970 $3,930 $3,923 
Intelsat Jackson Holdings S.A.First Lien Term Loan, PRIME+4.75% cash due 11/27/20238.00 %Alternative Carriers3,568 3,541 3,598 
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 7/13/20226.50 %Alternative Carriers971 801 1,011 (5)
Total Intelsat Jackson Holdings S.A.4,342 4,609 
KIK Custom Products Inc.First Lien Term Loan, LIBOR+4.00% cash due 5/15/20235.00 %Household Products5,322 5,308 5,302 
LogMeIn, Inc.First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.91 %Application Software5,000 4,876 4,842 
Mindbody, Inc.First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/20258.00 %Internet Services & Infrastructure4,546 4,481 4,192 (4)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025Internet Services & Infrastructure— (7)(38)(4)(5)
Total Mindbody, Inc.4,474 4,154 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %Application Software3,830 3,795 3,737 (4)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026Application Software— (1)(4)(4)(5)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (3)(8)(4)(5)
Total MRI Software LLC3,791 3,725 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.15 %Health Care Technology5,970 5,940 5,849 
New IPT, Inc.First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %Oil & Gas Equipment & Services1,006 1,006 786 (4)
21.876 Class A Common Units in New IPT Holdings, LLCOil & Gas Equipment & Services— — (4)
Total New IPT, Inc.1,006 786 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.75% cash due 3/31/20255.75 %Electrical Components & Equipment6,825 6,803 6,518 
Northwest Fiber, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 4/30/20275.66 %Integrated Telecommunication Services2,400 2,314 2,403 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20226.00 %Application Software5,931 5,909 5,827 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.15 %Application Software7,455 7,418 7,371 
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026Application Software— (2)(5)(5)
Total OEConnection LLC7,416 7,366 
Olaplex, Inc.First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %Personal Products4,938 4,851 4,938 (4)
First Lien Revolver, LIBOR+6.50% cash due 1/8/20257.50 %Personal Products270 261 270 (4)(5)
Total Olaplex, Inc.5,112 5,208 
PetVet Care Centers, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 2/14/20255.25 %Specialized Consumer Services2,743 2,736 2,747 
PG&E CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 6/23/20255.50 %Electric Utilities5,985 5,899 5,875 
Recorded Books, Inc.First Lien Term Loan, LIBOR+4.25% cash due 8/31/20254.75 %Publishing6,000 5,940 5,940 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %Metal & Glass Containers2,828 2,800 2,791 
Salient CRGT, Inc.First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %Aerospace & Defense2,111 2,099 1,963 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+3.00% cash PIK 2.25% due 4/27/20244.00 %Footwear8,396 8,380 5,898 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.50 %Health Care Services9,750 9,690 9,409 
Sirva Worldwide, Inc.First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.65 %Diversified Support Services4,781 4,709 3,992 
49
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Star US Bidco LLCFirst Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %Industrial Machinery$3,718 $3,532 $3,551 
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.25% cash due 10/1/20265.25 %Personal Products7,940 7,900 7,911 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.90 %Application Software4,888 4,575 4,407 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.25% cash due 9/3/20244.25 %Health Care Facilities4,962 4,943 4,691 (4)
Uber Technologies, Inc.First Lien Term Loan, LIBOR+4.00% cash due 4/4/20255.00 %Application Software2,997 2,959 2,980 
UFC Holdings, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 4/29/20264.25 %Movies & Entertainment2,856 2,816 2,814 
Veritas US Inc.First Lien Term Loan, LIBOR+5.50% cash due 9/1/20256.50 %Application Software6,500 6,371 6,375 
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.65 %Health Care Technology4,112 4,080 4,084 (4)
VM Consolidated, Inc.First Lien Term Loan, LIBOR+3.25% cash due 2/28/20253.40 %Data Processing & Outsourced Services10,487 10,495 10,291 
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %Integrated Telecommunication Services7,980 7,662 7,744 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %Aerospace & Defense6,000 5,956 4,680 (4)
$307,579 $311,428 $298,771 
__________
(1) Represents the interest rate as of September 30, 2020. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.agreement and the cash interest rate as of period end. All the LIBOR shown above is in U.S. dollars. As of September 30, 2020, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.22%, the 180-day LIBOR at 0.27% and the PRIME at 3.25%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(3) Represents the current determination of fair value as of September 30, 2020 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(4) This investment was held by both the Company and SLF JV I as of September 30, 2020.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(6) This investment was on cash non-accrual status as of September 30, 2017.2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

Both the cost and fair value of the Class A mezzanine secured deferrable floating rate notes ofCompany's debt investment in SLF JV I held by the Company were $100.8 million and $101.0$96.3 million as of each of December 31, 20172020 and September 30, 2017, respectively.2020. The Company earned interest income of $1.8 million and $0.2$2.2 million on its investmentsdebt investment in these notesthe SLF JV I for the three months ended December 31, 20172020 and December 31, 2016,2019, respectively. Both the cost and fair value of the Class B mezzanine secured deferrable fixed rate notes ofThe Company's debt investment in SLF JV I held by the Company were $27.5 million and $27.6 million as of each of December 31, 2017 and September 30, 2017, respectively. The Company earned PIK interest of $1.0 million on its investments in these notes for the three months ended December 31, 2017. Prior to their repayment, the subordinated notes of SLF JV I borebears interest at a rate of one-month LIBOR plus 8.0%7.0% per annum and the Company earned interest income of $2.9 millionmatures on its investments in these notes for the three months ended December 31, 2016. 29, 2028.
The cost and fair value of the LLC equity interests in SLF JV I held by the Company was $16.2were $49.3 million and $4.9$29.3 million, respectively, as of December 31, 2017,2020 and $16.2$49.3 million and $5.5$21.2 million, respectively, as of September 30, 2017.2020. The Company did not earned anyearn dividend income for the three months ended December 31, 20172020 and earned dividend income of $0.7 million for the three months ended December 31, 20162019, with respect to its investment in the LLC equity interests of SLF JV I. The LLC equity interests of SLF JV I are incomegenerally dividend producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.
50

Below is certain summarized financial information for SLF JV I as of December 31, 2020 and September 30, 2020 and for the three months ended December 31, 2020 and 2019:
December 31, 2020September 30, 2020
Selected Balance Sheet Information:
Investments at fair value (cost December 31, 2020: $317,432; cost September 30, 2020: $311,428)$313,261 $298,771 
Cash and cash equivalents20,575 5,389 
Restricted cash4,262 4,211 
Other assets3,147 5,093 
Total assets$341,245 $313,464 
Senior credit facility payable$175,410 $167,910 
Debt securities payable at fair value (proceeds December 31, 2020: $110,000; proceeds September 30, 2020: $110,000)110,000 110,000 
Other liabilities22,390 11,336 
Total liabilities$307,800 $289,246 
Members' equity33,445 24,218 
Total liabilities and members' equity$341,245 $313,464 
Three months ended December 31, 2020Three months ended December 31, 2019
Selected Statements of Operations Information:
Interest income$4,475 $5,393 
Other income54 6 
Total investment income4,529 5,399 
Interest expense3,581 4,641 
Other expenses62 67 
Total expenses (1)3,643 4,708 
Net unrealized appreciation (depreciation)8,486 2,941 
Net realized gains (losses)(144)(1,152)
Net income (loss)$9,228 $2,480 
 __________
(1) There are no management fees or incentive fees charged at SLF JV I.

For the three months ended December 31, 2020, SLF JV I's interest expense included $1.6 million related to the Deutsche Bank I Facility and $2.0 million related to the SLF JV I Notes, of which $1.8 million was payable to the Company and $0.2 million was payable to Kemper.
SLF JV I has elected to fair value the debt securities issued to the Company and Kemper under FASB ASC Topic 825, Financial Instruments - Fair Value Option. The debt securities are valued based on the total assets less the total liabilities senior to the subordinated notes of SLF JV I in an amount not exceeding par under the EV technique.
During the three months ended December 31, 2020 and 2019, the Company did not sell any debt investments to SLF JV I.
Note 4. Fee Income
For the three months ended December 31, 2020 and 2019, the Company recorded total fee income of $3.4 million and $1.1 million, respectively, of which $0.1 million and $0.2 million, respectively, was recurring in nature. Recurring fee income primarily consisted of servicing fees and exit fees.

51
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Note 5. Share Data and Net Assets
Below is certain summarized financial information for SLF JV I asEarnings per Share
The following table sets forth the computation of December 31, 2017basic and September 30, 2017 anddiluted earnings per share, pursuant to ASC Topic 260-10, Earnings per Share, for the three months ended December 31, 20172020 and December 31, 2016:2019:
(Share amounts in thousands)Three months ended
December 31, 2020		Three months ended
December 31, 2019
Earnings (loss) per common share — basic and diluted:
Net increase (decrease) in net assets resulting from operations$65,544 $13,843 
Weighted average common shares outstanding — basic and diluted140,961 140,961 
Earnings (loss) per common share — basic and diluted$0.46 $0.10 
  December 31, 2017 September 30, 2017
Selected Balance Sheet Information:    
Investments in loans at fair value (cost December 31, 2017: $255,973; cost September 30, 2017: $251,648) $239,601
 $235,526
Receivables from secured financing arrangements at fair value (cost December 31, 2017: $9,787; cost September 30, 2017: $9,783) 8,334
 8,305
Cash and cash equivalents 28,386
 24,389
Restricted cash 4,100
 5,097
Other assets 4,117
 3,485
Total assets $284,538
 $276,802
     
Senior credit facilities payable $105,053
 $113,053
Debt securities payable at fair value (proceeds December 31, 2017: $146,572; proceeds September 30, 2017: $147,052) 146,572
 147,052
Other liabilities 27,407
 10,383
Total liabilities $279,032
 $270,488
Members' equity 5,506
 6,314
Total liabilities and members' equity $284,538
 $276,802
Changes in Net Assets

  Three months ended December 31, 2017 Three months ended December 31, 2016
Selected Statements of Operations Information:    
Interest income $4,728
 $6,759
Other income —
 308
Total investment income 4,728
 7,067
Interest expense 5,145
 6,014
Other expenses 161
 408
Total expenses (1) 5,306
 6,422
Net unrealized depreciation (226) (22,473)
Net realized gain (loss) (4) 22,708
Net income (loss) $(808) $880
 __________
(1) There are no management fees or incentive fees charged at SLF JV I.
SLF JV I has elected to fair valueThe following table presents the debt securities issued to the Company and Kemper under ASC 825. The debt securities are valued based on the totalchanges in net assets less the total liabilities senior to the mezzanine notes of SLF JV I in an amount not exceeding par under the enterprise value technique.
Duringfor the three months ended December 31, 2017 and2020:
Common Stock
SharesPar ValueAdditional paid-in-capitalAccumulated Overdistributed EarningsTotal Net Assets
Balance as of September 30, 2020140,961 $1,409 $1,487,774 $(574,304)$914,879 
Net investment income———10,01810,018
Net unrealized appreciation (depreciation)———47,55647,556
Net realized gains (losses)———8,2158,215
Provision for income tax (expense) benefit———(245)(245)
Distributions to stockholders———(15,506)(15,506)
Issuance of common stock under dividend reinvestment plan941527—528
Repurchases of common stock under dividend reinvestment plan(94)(1)(527)—(528)
Balance as of December 31, 2020140,961 $1,409 $1,487,774 $(524,266)$964,917 

The following table presents the changes in net assets for the three months ended December 31, 2016, the Company did not sell any senior secured debt investments to SLF JV I.2019:
Common Stock
SharesPar ValueAdditional paid-in-capitalAccumulated Overdistributed EarningsTotal Net Assets
Balance as of September 30, 2019140,961 $1,409 $1,487,774 $(558,553)$930,630 
Net investment income———7,8367,836
Net unrealized appreciation (depreciation)———2,8792,879
Net realized gains (losses)———3,2883,288
Provision for income tax (expense) benefit———(160)(160)
Distributions to stockholders———(13,391)(13,391)
Issuance of common stock under dividend reinvestment plan881480—481
Repurchases of common stock under dividend reinvestment plan(88)(1)(480)—(481)
Balance as of December 31, 2019140,961 $1,409 $1,487,774 $(558,101)$931,082 
Note 4. Fee Income
The Company receives a variety of fees in the ordinary course of business, including servicing, advisory, amendment, structuring and prepayment fees, which are classified as fee income and recognized as they are earned. The unearned fee income balance as of December 31, 2017 and September 30, 2017 was $1.1 million and $1.1 million, respectively.
As of December 31, 2017, the Company had a receivable for $1.5 million in aggregate exit fees of one portfolio investment, which are paid contingent upon the future occurrence of certain events in connection with the exit of this investment. A percentage of these fees are included in net investment income over the life of the loan.
52
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





For the three months ended December 31, 2017, the Company recorded total fee income of $1.0 million, $0.1 million of which was recurring in nature. For the three months ended December 31, 2016, the Company recorded total fee income of $3.6 million, $0.8 million of which was recurring in nature. Recurring fee income primarily consists of servicing fees and exit fees.

Note 5. Share Data and Distributions
Earnings per Share
The following table sets forth the computation of basic and diluted earnings per share, pursuant to FASB ASC Topic 260-10 Earnings per Share, for the three months ended December 31, 2017 and 2016:

(Share amounts in thousands) Three months ended
December 31, 2017		 Three months ended
December 31, 2016
Earnings (loss) per common share — basic:    
Net decrease in net assets resulting from operations $(30,441) $(74,242)
Weighted average common shares outstanding — basic 140,961
 142,853
Loss per common share — basic $(0.22) $(0.52)
Earnings (loss) per common share — diluted:    
Net decrease in net assets resulting from operations $(30,441) $(74,242)
Weighted average common shares outstanding — diluted 140,961
 142,853
Loss per common share — diluted $(0.22) $(0.52)


Distributions
Distributions to common stockholders are recorded on the ex-dividend date. The Company is required to distribute dividends each taxable year to its stockholders of an amount generally at least equal to 90% of its investment company taxable income, determined without regard to any deduction for dividends paid, in order to be eligible for tax benefits allowed to a RIC under Subchapter M of the Code. The Company anticipates paying out as a distribution all or substantially all of those amounts. The amount to be paid out as a dividend is determined by the Board of Directors and is based on management’s estimate of the Company’s annual taxable income. Net realized capital gains, if any, are generallymay be distributed although the Company may decide to retain such net realized capital gainsstockholders or retained for investment.reinvestment.
The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s Board of Directors authorizes, and the Company declares a cash distribution, then the Company’s stockholders who have not “opted out” of the Company’s DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. If the Company’s shares are trading at a premium to net asset value, the Company typically issues new shares to implement the DRIP with such shares issued at the greater of the most recently computed net asset value per share of common stock or 95% of the current market price per share of common stock on the payment date for such distribution (or such lesser discount that still exceeds the most recently computed net asset value per share of common stock).distribution. If the Company’s shares are trading at a discount to net asset value, the Company typically purchases shares in the open market in connection with the Company’s obligations under the DRIP.
For income tax purposes, the Company estimates thathas reported its distributions for the 20172020 calendar year will be composed primarily ofas ordinary income and the actualincome. The character of such distributions will bewas appropriately reported to the Internal Revenue Service and stockholders for the 20172020 calendar year. To the extent that the Company’s taxable earnings for a fiscal and taxable year fall below the amount of distributions paid for the fiscal and taxable year, a portion of the total amount of the Company’s distributions for the fiscal and taxable year may beis deemed a return of capital for tax purposes to the Company’s stockholders.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





The following table reflects the distributions per share that the Company has paid, including shares issued under the DRIP, on its common stock during the three months ended December 31, 20172020 and 2016:2019:
Date Declared Record Date Payment Date 
Amount
per Share
 
Cash
Distribution
 
DRIP Shares
Issued
   
DRIP Shares
Value
August 7, 2017 December 15, 2017 December 29, 2017 $0.125
 $ 17.3 million 58,456
 (1) $ 0.3 million
Total for the three months ended December 31, 2017 $0.125
 $ 17.3million 58,456
   $ 0.3 million
               
Date Declared Record Date Payment Date 
Amount
per Share
 
Cash
Distribution (2)
 
DRIP Shares
Issued
   
DRIP Shares
Value (2)
August 3, 2016 October 14, 2016 October 31, 2016 $0.06
 $ 8.2 million 81,391
 (1) $ 0.4 million
August 3, 2016 November 15, 2016 November 30, 2016 0.06
 8.2 million 80,962
 (1) 0.4 million
October 18, 2016 December 15, 2016 December 30, 2016 0.06
 7.7 million 70,316
 (1) 0.4 million
Total for the three months ended December 31, 2016 $0.18
 $ 24.0 million 232,669
   $ 1.3 million
Date DeclaredRecord DatePayment DateAmount
per Share		Cash
Distribution		DRIP Shares
Issued (1)		DRIP Shares
Value
November 13, 2020December 15, 2020December 31, 2020$0.11 $ 15.0 million93,964 $ 0.5 million
Total for the three months ended December 31, 2020$0.11 $ 15.0 million93,964 $ 0.5 million
Date DeclaredRecord DatePayment DateAmount
per Share		Cash
Distribution		DRIP Shares
Issued (1)		DRIP Shares
Value
November 12, 2019December 13, 2019December 31, 2019$0.095 $ 12.9 million87,747 $ 0.5 million
Total for the three months ended December 31, 2019$0.095 $ 12.9 million87,747 $ 0.5 million
 __________
(1) Shares were purchased on the open market and distributed.
(2) Totals do not sum due to rounding.

Common Stock Offering
There were no common stock offerings during the three months ended December 31, 20172020 and December 31, 2016.2019.
Stock Repurchase Program
On November 28, 2016, the Company’s Board of Directors approved a common stock repurchase program authorizing the Company to repurchase up to $12.5 million in the aggregate of its outstanding common stock through November 28, 2017. During the three months ended December 31, 2016, the Company repurchased 2,298,247 shares of its common stock for $12.5 million, including commissions, under the common stock repurchase plan. This authorization has been fully utilized.

Note 6. Borrowings
INGCredit Facility

On November 30, 2017, the Company entered into a senior secured revolving credit facility (the “ING facility”(as amended and restated, the “Credit Facility”) pursuant to a Senior Secured Revolving Credit Agreement (the “ING Credit Agreement”) with the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents. The ING facilityCredit Facility provides that the Company may use the proceeds of the loans and issuances of letters of credit under the facilityCredit Facility for general corporate purposes, including acquiring and funding leveraged loans, mezzanine loans, high-yield securities, convertible securities, preferred stock, common stock and other investments. The ING Credit AgreementFacility further allows the Company to request letters of credit from ING Capital LLC, as the issuing bank.
The ING facility permits up to $600
On October 28, 2020, the Company entered into an incremental commitment and assumption agreement in connection with the Company’s exercise of $75 million of borrowings and includesthe accordion feature under the Credit Facility. On December 28, 2020, the Company entered into an incremental commitment agreement pursuant to which a lender under the Credit Facility increased its commitment amount under the Credit Facility by $25 million. As a result of such agreements, as of December 31, 2020, the size of the Credit Facility was $800 million (with an “accordion” feature that permits the Company, under certain
53
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




circumstances, to increase the size of the facility to up to $800 million. Borrowings under the ING Credit Agreement bear interest at a rate equal to, atamount of the Company’s election, eithernet worth (as defined in the Credit Facility) on the date of such increase).

As of December 31, 2020, (i) the period during which the Company may make drawings will expire on February 25, 2023 and the maturity date is February 25, 2024 and (ii) the interest rate margin for (a) LIBOR (1-loans (which may be 1-, 2-, 3- or 6-month, at the Company’s option) plus awas 2.00% (which can be increased up to 2.25%) and (b) alternate base rate loans was 1.00% (which can be increased up to 1.25%); provided that the interest margin of 2.25%, 2.50% orwill increase to 2.75% per annumand 1.75% for LIBOR loans and alternative base rate loans, respectively, if the Company’s stockholders’ equity is below $700 million, each depending on the Company’s senior debt coverage ratio as calculated under the ING Credit Agreement, with no LIBOR floor or (b) an alternate base rate plus a margin of 1.25%, 1.50% or 1.75% per annum depending on the Company’s senior debt coverage ratio as calculated under the ING Credit Agreement. The period during which the Company may make drawings under the ING facility expires on November 29, 2020 (the “Revolving Termination Date”) and the final maturity date of the facility will be one year following the Revolving Termination Date.ratio.

The ING facilityCredit Facility is secured by substantially all of the Company’s assets (excluding, among other things, investments held in and by certain subsidiaries of the Company or investments in certain portfolio companies of the Company) and guaranteed by certain subsidiaries of the Company pursuant to a Guarantee, Pledge and Security Agreement (“ING Security Agreement”) entered into in connection with the ING Credit Agreement, among the Company, the other obligors party thereto, and ING Capital LLC, as collateral agent to the secured parties. Pursuant to the ING Security Agreement, the Company pledged its entire equity interest inCompany. As of December 31, 2020, except for assets that were held by certain immaterial subsidiaries, to the collateral agent pursuant to the termssubstantially all of the ING Security Agreement.Company's assets are pledged as collateral under the Credit Facility.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





The ING Credit Agreement and related agreements governing the ING facility requiredFacility requires the Company to, among other things, (i) make representations and warranties regarding the collateral as well as each of the Company’s portfolio companies’ businesses, (ii) agree to certain indemnification obligations, and (iii) comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including covenants related to: (A) limitations on the incurrence of additional indebtedness and liens, (B) limitations on certain investments, (C) limitations on certain asset transfers and restricted payments, (D) maintaining a certain minimum stockholders’ equity, (E) maintaining a ratio of total assets (less total liabilities) to total indebtedness, of the Company and its subsidiaries (subject to certain exceptions), of not less than 2.0:1.0,1.50 to 1.00, (F) maintaining a ratio of consolidated EBITDA to consolidated interest expense, of the Company and its subsidiaries (subject to certain exceptions), of not less than (1) 2.02.25 to 1.0 for the first year following the closing date and (2) 2.25:1.00, thereafter, (G) maintaining a minimum liquidity and net worth, and (H) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries. The ING facilityCredit Facility also includeincludes usual and customary default provisions such as the failure to make timely payments under the facility, the occurrence of a change in control, and the failure by the Company to materially perform under the ING Credit Agreement and related agreements governing the ING facility, which, if not complied with, could accelerate repayment under the ING facility. As of December 31, 2017,2020, the Company was in compliance with all financial covenants under the ING facility.
Credit Facility. In addition to the asset coverage ratio described above, borrowings under the Credit Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that will apply different advance rates to different types of assets in the Company’s portfolio. Each loan or letter of credit originated or assumed under the ING facilityCredit Facility is subject to the satisfaction of certain conditions. The Company cannot be assured that it will be able to borrow funds under the ING facility at any particular time or at all.
From May 27, 2010 through November 30, 2017,On December 10, 2020, the Company was party to a secured syndicated revolving credit facility with certain lenders party thereto from time to time and ING Capital LLC, as administrative agent (as amended, the “Prior ING Facility”). In connection with the entryentered into the ING Credit Agreement, the Company repaid all outstanding borrowings under the Prior ING Facility following which the Prior ING Facility was terminated. Obligations under the Prior ING Facility would have otherwise matured on August 6, 2018. During the three months ended December 31, 2017, the Company expensed $0.2 million of unamortized deferred financing costs relatedan amendment to the Prior ING Facility.Credit Facility that, among other things, (i) increases the minimum stockholders’ equity covenant as of closing of the Mergers; (ii) increases the minimum obligors’ net worth covenant as of the date of the closing of the Mergers; (iii) modifies the covenants, including the negative covenants relating to investments and transactions with affiliates, to permit the Mergers; and (iv) adds provisions relating to the transition from the LIBOR to the Secured Overnight Financing Rate.

As of December 31, 2017,2020 and September 30, 2020, the Company had $205.0$400.0 million and $414.8 million of borrowings outstanding under the ING facility,Credit Facility, respectively, which had a fair value of $205.0 million.$400.0 million and $414.8 million, respectively. The Company's borrowings under the ING facility bore interest at a weighted average interest rate of 3.961% for the period from November 30, 2017 to December 31, 2017. As of September 30, 2017, the Company had $226.5 million of borrowings outstanding under the Prior ING Facility. The Company’s borrowings under the Prior INGCredit Facility bore interest at a weighted average interest rate of 3.705%2.323% and 2.945%3.983% for the period from October 1, 2017 to November 30, 2017 and the three months ended December 31, 2016,2020 and 2019, respectively. For the three months ended December 31, 2017,2020 and 2019, the Company recorded interest expense (inclusive of $2.7fees) of $3.2 million in the aggregate, related to the Prior ING Facility and the ING facility. For the three months ended December 31, 2016, the Company recorded interest expense of $4.2 million related to the Prior ING Facility.
Sumitomo Facility
On September 16, 2011, Funding II, a consolidated wholly-owned bankruptcy remote, special purpose subsidiary of the Company, entered into a Loan and Servicing Agreement (as subsequently amended, the "Sumitomo Agreement"), as amended from time to time, with respect to a credit facility ("Sumitomo facility") with Sumitomo Mitsui Banking Corporation ("SMBC"), an affiliate of Sumitomo Mitsui Financial Group, Inc., as administrative agent, and each of the lenders from time to time party thereto.
Prior to its termination on November 24, 2017, the Sumitomo facility permitted up to $125 million of borrowings (subject to collateral requirements). Borrowings under the Sumitomo facility bore interest at a rate of either (i) LIBOR (1-month) plus 2.00% per annum, with no LIBOR floor, if the borrowings under the Sumitomo facility were greater than 35% of the aggregate available borrowings under the Sumitomo facility or (ii) LIBOR (1-month) plus 2.25% per annum, if the borrowings under the Sumitomo Facility were less than or equal to 35% of the aggregate available borrowings under the Sumitomo facility. The period during which the Company could have made and reinvested borrowings under the facility expired on September 16, 2017. On November 24, 2017, Funding II, as the borrower under the Sumitomo facility, repaid all outstanding borrowings thereunder, following which the Sumitomo facility was terminated. Obligations under the Sumitomo facility would have otherwise matured on the earlier of August 6, 2018 or the date on which the Prior ING Facility was repaid, refinanced or terminated. As of December 31, 2017, the Company had no borrowings outstanding under the Sumitomo facility. During the three months ended December 31, 2017, the Company expensed $0.5 million of unamortized deferred financing costs related to the Sumitomo Facility.
The Company's borrowings under the Sumitomo facility bore interest at a weighted average interest rate of 3.501% and 2.784% for the period from October 1, 2017 through termination on November 24, 2017 and the three months ended December 31, 2016, respectively. For the three months ended December 31, 2017 and 2016, the Company recorded interest expense of $0.7 million, including $0.6 million of debt issuance costs that were expensed, and $0.6$4.0 million, respectively, related to the Sumitomo facility.Credit Facility.
2025 Notes
On February 25, 2020, the Company issued $300.0 million in aggregate principal amount of the 2025 Notes for net proceeds of $293.8 million after deducting OID of $2.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.7 million. The OID on the 2025 Notes is amortized based on the effective interest method over the term of the 2025 Notes.
The 2025 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the fifth supplemental indenture, dated February 25, 2020 (collectively, the "2025 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee"). The 2025 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2025 Notes. The 2025 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2025 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2025
54
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





SBIC Subsidiaries
On February 3, 2010,Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's consolidated, wholly-owned subsidiary, FSMP IV, receivedsubsidiaries, financing vehicles or similar facilities. 
Interest on the 2025 Notes is paid semi-annually on February 25 and August 25 at a license, effectiverate of 3.500% per annum. The 2025 Notes mature on February 1, 2010,25, 2025 and may be redeemed in whole or in part at any time or from time to time at the SBACompany's option prior to operate as an SBIC under Section 301(c)maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the Small Business Investment Act of 1958, as amended. On May 15, 2012, the Company's consolidated, wholly-owned subsidiary, FSMP V, received a license, effective May 10, 2012, from the SBA to operate as an SBIC.
As of December 31, 2017 and September 30, 2017, FSMP IV and FSMP V had no SBA-guaranteed debentures outstanding, and2025 Notes can require the Company had commenced actions to surrenderrepurchase the license for FSMP IV2025 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2025 Notes Indenture. The 2025 Notes were issued in minimum denominations of $2,000 and FSMP V to the SBA. During the year ended September 30, 2017, FSMP IV and FSMP V repaid all SBA-guaranteed debentures outstanding. On January 17, 2018, the SBA approved FSMP IV's and FSMP V's requests to surrender its licenses.
integral multiples of $1,000 in excess thereof. During the three months ended December 31, 2016,2020, the SBA-guaranteed debentures heldCompany did not repurchase any of the 2025 Notes in the open market.
The 2025 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the SBIC subsidiaries outstanding carried a weighted average interest rateU.S. Securities and Exchange Commission ("SEC")), as well as covenants requiring the Company to provide financial information to the holders of 3.348% (excluding the SBA annual charge). 2025 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. These covenants are subject to limitations and exceptions that are described in the 2025 Notes Indenture.
For the three months ended December 31, 2016,2020, the Company recorded aggregate interest expense (inclusive of $2.2fees) of $2.9 million related to the SBA-guaranteed debentures of both SBIC subsidiaries.2025 Notes.
The Company has received exemptive relief from the SEC to permit it to exclude the debt of the SBIC subsidiaries guaranteed by the SBA from the definition of senior securities in the Company's 200% asset coverage test under the 1940 Act. This allows the Company increased flexibility under the 200% asset coverage test by permitting it to borrow more than it would otherwise be able to under the 1940 Act absent the receipt of this exemptive relief.
As of December 31, 2017, except for assets that2020, there were funded through$300.0 million of 2025 Notes outstanding, which had a carrying value and fair value of $294.8 million and $311.3 million, respectively. As of September 30, 2020, there were $300.0 million of 2025 Notes outstanding, which had a carrying value and fair value of $294.5 million and $301.4 million, respectively.The carrying value represents the Company's SBIC subsidiaries, substantially allaggregate principal amount outstanding less unamortized deferred financing costs and the unaccreted discount recorded upon the issuance of the Company's assets2025 Notes. As of December 31, 2020, the total unamortized deferred financing costs and the net unaccreted discount were pledged as collateral under$3.1 million and $2.1 million, respectively. As of September 30, 2020, the ING facility.total unamortized deferred financing costs and the net unaccreted discount were $3.3 million and $2.2 million, respectively.
See2024 Notes 13 through 14 for discussion of additional debt obligations
On October 18, 2012, the Company issued $75.0 million in aggregate principal amount of the Company.5.875% notes due 2024 (the "2024 Notes") for net proceeds of $72.5 million after deducting underwriting commissions of $2.2 million and offering costs of $0.3 million. The 2024 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the first supplemental indenture, dated October 18, 2012, between the Company and the Trustee.

Interest on the 2024 Notes was paid quarterly in arrears on January 30, April 30, July 30 and October 30 at a rate of 5.875% per annum. On March 2, 2020, the Company redeemed 100%, or $75.0 million aggregate principal amount, of the issued and outstanding 2024 Notes, following which they were delisted from the New York Stock Exchange. The redemption price per 2024 Note was $25 plus accrued and unpaid interest.
For the three months ended December 31, 2019, the Company recorded interest expense of $1.2 million (inclusive of fees) related to the 2024 Notes. As of December 31, 2020 and September 30, 2020, there were no 2024 Notes outstanding.
2028 Notes
In April and May 2013, the Company issued $86.3 million in aggregate principal amount of the 6.125% notes due 2028 (the "2028 Notes") for net proceeds of $83.4 million after deducting underwriting commissions of $2.6 million and offering costs of $0.3 million. The 2028 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the second supplemental indenture, dated April 4, 2013, between the Company and the Trustee.
Interest on the 2028 Notes was paid quarterly in arrears on January 30, April 30, July 30 and October 30 at a rate of 6.125% per annum. On March 13, 2020, the Company redeemed 100%, or $86.3 million aggregate principal amount, of the issued and outstanding 2028 Notes, following which they were delisted from the Nasdaq Global Select Market. The redemption price per 2028 Note was $25 plus accrued and unpaid interest.
For the three months ended December 31, 2019, the Company recorded interest expense of $1.4 million (inclusive of fees) related to the 2028 Notes. As of December 31, 2020 and September 30, 2020, there were no 2028 Notes outstanding.

55
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Note 7. Interest and Dividend Income
See Note 2 "Investment Income" for a description of the Company's accounting treatment of investment income.
Accumulated PIK interest activity for the three months ended December 31, 2017 and December 31, 2016 was as follows:
  Three months ended
December 31, 2017		 Three months ended
December 31, 2016
PIK balance at beginning of period $69,417
 $62,631
Gross PIK interest accrued 8,046
 5,046
PIK income reserves (1) (6,179) (2,209)
PIK interest received in cash (1,103) (3,434)
PIK balance at end of period $70,181
 $62,034
 ___________________
(1)PIK income is generally reserved for when a loan is placed on PIK non-accrual status.

As of each of December 31, 20172020 and September 30, 2017,2020, there were eightone and two investments, respectively, on which the Company had stopped accruing cash and/or PIK interest or OID income. The percentages of the Company's debt investments at cost and fair value by accrual status as of December 31, 20172020 and September 30, 20172020 were as follows: 
  December 31, 2017 September 30, 2017
  Cost % of Debt
Portfolio		 Fair
Value		 % of Debt
Portfolio		 Cost % of Debt
Portfolio		 Fair
Value		 % of Debt
Portfolio
Accrual $1,258,056
 85.49% $1,258,658
 96.81% $1,344,535
 86.46% $1,357,794
 95.29%
PIK non-accrual (1) 12,661
 0.86
 —
 —
 10,227
 0.66
 379
 0.03
Cash non-accrual (2) 200,859
 13.65
 41,457
 3.19
 200,210
 12.88
 66,636
 4.68
Total $1,471,576
 100.00% $1,300,115
 100.00% $1,554,972
 100.00% $1,424,809
 100.00%
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





 December 31, 2020September 30, 2020
 Cost% of Debt
Portfolio		Fair
Value		% of Debt
Portfolio		Cost% of Debt
Portfolio		Fair
Value		% of Debt
Portfolio
Accrual$1,609,920 99.96 %$1,616,023 99.97 %$1,500,364 98.79 %$1,483,284 99.89 %
PIK non-accrual (1)— — — — 12,661 0.83 — — 
Cash non-accrual (2)588 0.04 470 0.03 5,712 0.38 1,571 0.11 
Total$1,610,508 100.00 %$1,616,493 100.00 %$1,518,737 100.00 %$1,484,855 100.00 %
 ___________________
(1)PIK non-accrual status is inclusive of other non-cash income, where applicable.
(2)Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

(1)PIK non-accrual status is inclusive of other non-cash income, where applicable.
(2)Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

 Note 8. Taxable/Distributable Income and Dividend Distributions
Taxable income differs from net increase (decrease) in net assets resulting from operations primarily due to: (1) unrealized appreciation (depreciation) on investments and secured borrowings,foreign currency, as gains and losses are not included in taxable income until they are realized; (2) origination and exit fees received in connection with investments in portfolio companies; (3) organizational and deferred offering costs; (4) income or loss recognition on exited investments; (5) recognition of interest income on certain loans; (5) income or loss recognition on exited investments; and (6) certain items related to investments in controlled foreign corporations.
As of September 30, 2020, the Company had net capital loss carryforwards of $515.3 million to offset net capital gains that will not expire, to the extent available and permitted by U.S. federal income tax law, of which $84.3 million are available to offset future short-term capital gains and $431.0 million are available to offset future long-term capital gains.
Listed below is a reconciliation of "net decreaseincrease (decrease) in net assets resulting from operations" to taxable income for the three months ended December 31, 20172020 and December 31, 2016.2019.
Three months ended
December 31,
2020		Three months ended
December 31,
2019
Net increase (decrease) in net assets resulting from operations$65,544 $13,843 
Net unrealized (appreciation) depreciation(47,556)(2,879)
Book/tax difference due to organizational costs(22)(22)
Book/tax difference due to interest income on certain loans130 — 
Book/tax difference due to capital losses utilized(9,943)(3,977)
Other book/tax differences5,614 5,144 
Taxable/Distributable Income (1)$13,767 $12,109 
  Three months ended
December 31,
2017		 Three months ended
December 31,
2016
Net decrease in net assets resulting from operations $(30,441) $(74,242)
Net unrealized depreciation on investments and secured borrowings 43,472
 74,440
Book/tax difference due to loan fees 264
 16
Book/tax difference due to exit fees —
 1,081
Book/tax difference due to organizational and deferred offering costs (22) (22)
Book/tax difference due to interest income on certain loans —
 (168)
Book/tax difference due to capital losses not recognized 591
 24,206
Other book/tax differences (1,206) (1,871)
Taxable/Distributable Income(1) $12,658
 $23,440
__________
(1) The Company's taxable income for the three months ended December 31, 20172020 is an estimate and will not be finally determined until the Company files its tax return for the Company's anticipated fiscal and taxable year ending September 30, 2018.2021. Therefore, the final taxable income may be different than the estimate.
As of September 30, 2017, the components of accumulated undistributed income on a tax basis were as follows:
Undistributed ordinary income, net$24,409
Net realized capital losses465,077
Unrealized losses, net97,839
The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.
TheWhen assessing the realizability of deferred tax assets, the Company considers whether it is permitted to carry forward net capital losses, if any, incurred in taxable years beginning with the Company's taxable year ended September 30, 2012 for an unlimited period. However, any losses incurred during such taxable years will be required to be utilized prior to the losses incurred in taxable years ended prior to the Company’s taxable year ended September 30, 2012, which are subject to an expiration date. As a resultprobable that some or all of the ordering rule, capital loss carryforwards fromdeferred tax assets will not be realized. In determining whether the Company’s taxable year ended prior to its taxable year ended September 30, 2012 may be more likely to expire unused than under previousdeferred tax law.
As of September 30, 2017,assets are realizable, the Company had net capital loss carryforwardsconsiders the period of $466.6 million to offset net capital gains, toexpiration of the extent availabletax asset, historical and permitted by U.S. federalprojected taxable income and tax law. Ofliabilities for the capital loss carryforwards, $1.5 million expired on September 30, 2017, $10.3 million will expire on September 30, 2019 and $454.8 million will not expire, of which $71.5 million are available to offset future short-term capital gains and $384.3 million are available to offset future long-term capital gains.tax jurisdiction in
56
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





which the tax asset is located. The deferred tax asset recognized by the Company, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of those assets, will be recognized in future years by these taxable entities. Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be realized in future periods. In determining the realizability of this tax benefit, management considered numerous factors that will give rise to pre-tax income in future periods. Among these are the historical and expected future book and tax basis pre-tax income of the Company and unrealized gains in the Company’s assets at the determination date. Based on these and other factors, the Company determined that, as of December 31, 2020, $1.8 million of the $2.9 million net deferred tax assets would not more likely than not be realized in future periods. As of December 31, 2020, the Company recorded a deferred tax asset of $1.1 million on the Consolidated Statements of Assets and Liabilities.
For the three months ended December 31, 2020, the Company recognized a total provision for income tax expense of $0.2 million, which was comprised of (i) a current income tax expense of approximately $0.5 million, and (ii) a deferred income tax benefit of approximately $0.3 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable subsidiaries.
As a RIC,of September 30, 2020, the Company is also subject to a U.S. federal exciseCompany's last tax based on distributive requirementsyear end, the components of its taxable incomeaccumulated overdistributed earnings on a calendar year basis. The Company did not incur a U.S. federal excise tax for calendar years 2015 and 2016 and does not expect to incur a U.S. federal excise tax for calendar year 2017.basis were as follows:
Undistributed ordinary income, net$9,392 
Net realized capital losses515,255 
Unrealized losses, net68,439 
The aggregate cost of investments for income tax purposes was $1.8$1.6 billion as of September 30, 2017.2020. As of September 30, 2017,2020, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over cost for income tax purposes was $51.7$300.3 million. As of September 30, 2017,2020, the aggregate gross unrealized depreciation for all investments in which there was an excess of cost for income tax purposes over value was $277.8$368.7 million. Net unrealized depreciation based on the aggregate cost of investments for income tax purposes was $226.1$68.4 million.
Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation on Investments and Secured Borrowings
Realized Gains or Losses
Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption and the cost basis of the investment without regard to unrealized appreciation or depreciation previously recognized, and include investments written-off during the period, net of recoveries. Realized losses may also be recorded in connection with the Company's determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.
During the three months ended December 31, 2017,2020, the Company recorded an aggregate net realized lossgain of $0.3$8.2 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
  PLATO Learning Inc.$7.8 
  L Squared Capital1.4 
  BX Commercial Mortgage Trust 2020-VIVA1.2 
  ExamSoft Worldwide Inc.0.9 
  California Pizza Kitchen Inc.(2.1)
  99 Cents Only Stores(0.9)
  Other, net(0.1)
Total, net$8.2
57
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in connection with the sale of various debt investments in the open market.thousands, except share and per share amounts, percentages and as otherwise indicated)




During the three months ended December 31, 2016,2019, the Company recorded an aggregate net realized lossgain of $23.1$3.3 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
  YETI Holdings, Inc.$3.4 
  Other, net(0.1)
Total, net$3.3
($ in millions) 
Portfolio CompanyNet Realized Gain (Loss)
First Star Aviation, LLC$(3.8)
Ansira Partners, Inc.0.4
Senior Loan Fund JV I, LLC(19.9)
Other, net0.2
Total, net$(23.1)

Net Unrealized Appreciation or Depreciation on Investments and Secured Borrowings
Net unrealized appreciation or depreciation reflects the net change in the valuation of the portfolio pursuant to the Company's valuation guidelines and the reclassification of any prior period unrealized appreciation or depreciation.
During the three months ended December 31, 20172020 and December 31, 2016,2019, the Company recorded net unrealized depreciation on investments and secured borrowingsappreciation of $43.5$47.6 million and $74.4$2.9 million, respectively. For the three months ended December 31, 2017,2020, this consisted of $39.0$27.2 million of net unrealized depreciationappreciation on debt investments, $3.8$12.8 million of net unrealized depreciationappreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $9.9 million of net unrealized appreciation on equity investments, and $2.3 million of net reclassifications to realized gains (resulting in unrealized depreciation),partially offset by $1.6$2.4 million of net unrealized depreciation of secured borrowings.foreign currency forward contracts. For the three months ended December 31, 2016, the Company's net unrealized depreciation2019, this consisted of $81.2 million of net unrealized depreciation on debt investments, $9.6 million of net unrealized depreciation on equity investments and $0.1$3.9 million of net unrealized appreciation on secured borrowings, offset by $16.5equity investments and $2.2 million of net reclassificationsunrealized appreciation on debt investments, partially offset by $1.7 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized losses (resulting ingains) and $1.5 million of net unrealized appreciation).depreciation of foreign currency forward contracts.
Note 10. Concentration of Credit Risks
The Company deposits its cash with financial institutions and at times such balances may be in excess of the FDIC insurance limit. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring their financial stability.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)







Note 11. Related Party Transactions

As of December 31, 20172020 and September 30, 2017,2020, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $6.3$20.2 million and $6.8$11.2 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree and FSM.Oaktree.
New Investment Advisory Agreement
Effective October 17, 2017 and as of December 31, 2017, theThe Company is party to the New Investment Advisory Agreement with Oaktree.Agreement. Under the New Investment Advisory Agreement, the Company pays Oaktree a fee for its services under the New Investment Advisory Agreement consisting of two components: a base management fee and an incentive fee. The cost of both the base management fee payable to Oaktree and any incentive fees earned by Oaktree is ultimately borne by common stockholders of the Company.
From October 17, 2017 through May 3, 2020, the Company was externally managed by OCM pursuant to an investment advisory agreement. On May 4, 2020, OCM effected the novation of such investment advisory agreement to Oaktree. Immediately following such novation, the Company and Oaktree entered into a new investment advisory agreement with the same terms, including fee structure, as the investment advisory agreement with OCM. The term “Investment Advisory Agreement” refers collectively to the agreements with Oaktree and, prior to its novation, with OCM. Prior to October 17, 2017, the Company was externally managed by Fifth Street Management LLC (the "Former Adviser”), an indirect, partially-owned subsidiary of Fifth Street Asset Management Inc., pursuant to an investment advisory agreement between the Company and the Former Adviser, which was terminated on October 17, 2017.
Unless earlier terminated as described below, the New Investment Advisory Agreement will remain in effect until October 17, 2019September 30, 2021 and thereafter from year-to-year if approved annually by the Board of Directors of the Company or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, including, in either case, approval by a majority of the directors of the Company who are not interested persons. The New Investment Advisory Agreement will automatically terminate in the event of its assignment. The New Investment Advisory Agreement may be terminated by
58
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




either party without penalty upon 60 days’ written notice to the other. The New Investment Advisory Agreement may also be terminated, without penalty, upon the vote of a majority of the outstanding voting securities of the Company.
Base Management Fee

Under the New Investment Advisory Agreement, the base management fee onis calculated at an annual rate of 1.50% of total gross assets, including any investment made with borrowings, but excluding cash and cash equivalents, is 1.50%.equivalents. The base management fee is payable quarterly in arrears and the fee for any partial month or quarter is appropriately prorated.
For the period from October 17, 2017 to December 31, 2017, Effective May 3, 2019, the base management fee (neton the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of waivers)(A) 200% and (B) the Company’s net asset value will be 1.00%. For the avoidance of doubt, the 200% will be calculated in accordance with the Investment Company Act and will give effect to exemptive relief the Company received from the SEC with respect to debentures issued by a small business investment company subsidiary. In connection with entry into the Merger Agreement, 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 Mergers (for an aggregate waiver of $6.0 million of base management fees).
For the three months ended December 31, 2020 and 2019, the base management fee incurred under the New Investment Advisory Agreement was $4.4$6.5 million which was payable to Oaktree. For the period from October 17, 2017 to December 31, 2017, Oaktree voluntarily and irrevocably waived a portion of the base management fee, which resulted in waivers of less than $0.1 million.$5.6 million, respectively.
Incentive Fee

The incentive fee consists of two parts. Under the New Investment Advisory Agreement, the first part of the incentive fee (the “incentive fee on income” or "Part I incentive fee") is calculated and payable quarterly in arrears based upon the “pre-incentive fee net investment income” of the Company for the immediately preceding quarter. The payment of the incentive fee on income is subject to payment of a preferred return to investors each quarter (i.e., a “hurdle rate”), expressed as a rate of return on the value of the Company’s net assets at the end of the most recently completed quarter, of 1.50%, subject to a “catch up” feature.

For this purpose, “pre-incentive fee net investment income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies, other than fees for providing managerial assistance) accrued during the fiscal quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the New Administration Agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as OID debt, instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

Under the New Investment Advisory Agreement, the calculation of the incentive fee on income for each quarter is as follows:

OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





•No incentive fee is payable to Oaktree in any quarter in which the Company’s pre-incentive fee net investment income does not exceed the preferred return rate of 1.50% (the “preferred return”) on net assets;
•100% of the Company’s pre-incentive fee net investment income, if any, that exceeds the preferred return but is less than or equal to 1.8182% in any fiscal quarter is payable to Oaktree. This portion of the incentive fee on income is referred to as the “catch-up” provision, and it is intended to provide Oaktree with an incentive fee of 17.5% on all of the Company’s pre-incentive fee net investment income when the Company’s pre-incentive fee net investment income exceeds 1.8182% on net assets in any fiscal quarter; and
•For any quarter in which the Company’s pre-incentive fee net investment income exceeds 1.8182% on net assets, the subordinated incentive fee on income is equal to 17.5% of the amount of the Company’s pre-incentive fee net investment income, as the preferred return and catch-up will have been achieved.

There is no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle.

For the period from October 17, 2017 tothree months ended December 31, 2017,2020 and 2019, the first part of the incentive fee (net of waivers)(incentive fee on income) incurred under the New Investment Advisory Agreement was $0.7 million. To ensure compliance of the transactions contemplated by the Purchase Agreement, Oaktree entered into a two-year contractual fee waiver with the Company that will waive, to the extent necessary, any management or incentive fees payable under the New Investment Advisory Agreement that exceed what would have been paid to the Former Adviser in the aggregate under the Former Investment Advisory Agreement. Amounts potentially subject to waiver are accrued quarterly on a cumulative basis$4.1 million and to the extent required, any fees will be waived or reimbursed as soon as practicable after the end of the two-year period. As of December 31, 2017, Oaktree had accrued an aggregate amount of $0.1$3.0 million, of incentive fees potentially subject to waiver.respectively.

Under the New Investment Advisory Agreement, the second part of the incentive fee will be(the "capital gains incentive fee") is determined and payable in arrears as of the end of each fiscal year (or upon termination of the investment advisory agreement, Investment Advisory Agreement,
59
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




as of the termination date) commencing with the fiscal year endingended September 30, 2019 and will equalequals 17.5% of the Company’s realized capital gains, if any, on a cumulative basis from the beginning of the fiscal year endingended September 30, 2019 through the end of each subsequent fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees under the New Investment Advisory Agreement. Any realized capital gains, realized capital losses, unrealized capital appreciation and unrealized capital depreciation with respect to the Company’s portfolio as of the end of the fiscal year endingended September 30, 2018 will beare excluded from the calculations of the second part of the incentive fee. As of December 31, 2020, the Company incurred $4.6 million of capital gains incentive fees cumulatively under the Investment Advisory Agreement (prior to waivers). For the three months ended December 31, 2020, the Company did not incur any capital gains incentive fees under the Investment Advisory Agreement.

GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a theoretical "liquidation basis." A fee so calculated and accrued would not be payable under applicable law and may never be paid based upon the computation of capital gains incentive fees in subsequent periods. Amounts ultimately paid under the Investment Advisory Agreement will be consistent with the formula reflected in the Investment Advisory Agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation. Any realized capital gains and losses and cumulative unrealized capital appreciation and depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the GAAP accrual. If such amount is positive at the end of a period, then GAAP requires the Company to record a capital gains incentive fee equal to 17.5% of such cumulative amount, less the aggregate amount of actual capital gains incentive fees payable or capital gains incentive fees accrued under GAAP in all prior periods. The resulting accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. There can be no assurance that such unrealized capital appreciation will be realized in the future or any accrued capital gains incentive fee will become payable under the Investment Advisory Agreement. For the three months ended December 31, 2020 and 2019, the Company recorded $9.5 million and $1.1 million of accrued capital gains incentive fees, respectively.

Any amounts resulting solely from the new cost basis of the acquired OCSI investments established by ASC 805-50 (as defined in Note 15) as a result of the Mergers will be excluded from the calculation of the incentive fee on income and the incentive fee on capital gains, with such exclusion to be implemented either through an amendment to the Investment Advisory Agreement or a waiver of such amounts by Oaktree.

To ensure compliance with Section 15(f) of the Investment Company Act, OCM entered into a two-year contractual fee waiver with the Company, which ended on October 17, 2019, pursuant to which OCM waived any management or incentive fees payable under the Investment Advisory Agreement that exceeded what would have been paid to the Former Adviser in the aggregate under the Former Investment Advisory Agreement. The contractual amount of fees permanently waived at the end of the two-year period was $3.9 million. Prior to the end of the two-year period, amounts potentially subject to waiver under the two-year contractual fee waiver were accrued quarterly based on a theoretical “liquidation basis.” As of September 30, 2019, the Company had accrued cumulative fee waivers of $9.1 million. During the three months ended December 31, 2019, the Company reversed $5.2 million of previously accrued fee waivers since the two-year fee waiver period has ended.

60
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




The following table provides a roll-forward of the accrued waiver balance and illustrates the impact of the end of the two-year contractual fee waiver period:
($ in millions)
Accrued fee waivers as of September 30, 2019 (1)$9.1 
Reversal of previously accrued fee waivers (2)(5.2)
Contractual fees waived under the Investment Advisory Agreement (3)(3.9)
Accrued fee waivers as of December 31, 2019$— 
(1)Calculated in accordance with GAAP as of September 30, 2019 and is based on a hypothetical liquidation basis.
(2)Reflects the reversal of fee waivers that were previously accrued based on a hypothetical liquidation basis when the two-year contractual fee waiver was in effect. This reversal was recognized in connection with the expiration of the two-year contractual fee waiver, which ended on October 17, 2019, and is reflected in reversal of fees waived in the Consolidated Statement of Operations for the three months ended December 31, 2019.
(3)Reflects the amount of fees permanently waived pursuant to the two-year contractual fee waiver.

As of September 30, 2019, the capital gains incentive fee payable under the Investment Advisory Agreement (net of waivers) was $0.8 million as shown below:
($ in millions) September 30, 2019 (1)
Capital gains incentive fee payable under the Investment Advisory Agreement (prior to waivers)$4.6 
Contractual fees waived(3.9)
Capital gains incentive fee payable under the Investment Advisory Agreement (net of waivers)$0.8 
(1)Amounts may not sum due to rounding.
Indemnification

The New Investment Advisory agreementAgreement provides that, absent willful misfeasance, bad faith or gross negligence in the performance of their respective duties or by reason of the reckless disregard of their respective duties and obligations, Oaktree and its officers, managers, partners, members (and their members, including the owners of their members), agents, employees, controlling persons and any other person or entity affiliated with it, are entitled to indemnification from the Company for any damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) arising from the rendering of the Investment Adviser'sOaktree's services under the investment advisory agreement or otherwise as the Investment Adviser.
Collection and Disbursement of Fees Owed to FSM

Under the Former Investment Advisory Agreement described below, both the base management fee and incentive fee on income were calculated and paid to FSM at the end of each quarter. In order to ensure that FSM receives the compensation earned during the quarter ending December 31, 2017, the initial payment of the base management fee and incentive fee on income under the New Investment Advisory Agreement will cover the entire quarter in which the New Investment Advisory Agreement became effective, and be calculated at a blended rate that will reflect fee rates under the respective investment advisory agreements for the portion of the quarter in which FSM and Oaktree were serving as investment adviser. This structure will allow Oaktree to pay FSM in early 2018, the pro rata portion of the fees that were earned by, but not paid to, FSM for services rendered to the Company prior to October 17, 2017.
Former Investment Advisory Agreement

The following is a description of the fourth amended and restated investment advisory agreement between FSM and the Company (the “Former Investment Advisory Agreement”), which was terminated on October 17, 2017. The Former Investment Advisory Agreement, dated March 20, 2017, was effective January 1, 2017 through its termination on October 17, 2017. The Former Investment
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Advisory Agreement amended and restated the Company’s third amended and restated investment advisory agreement with FSM, which was effective as of January 1, 2016, to impose a total return hurdle provision and reduce the “preferred return.”

Through October 17, 2017, the Company paid FSM a fee for its services under the Former Investment Advisory Agreement consisting of two components: a base management fee and an incentive fee. The cost of both the base management fee paid to FSM and any incentive fees earned by FSM were ultimately borne by common stockholders of the Company.
Base Management Fee

As of January 1, 2016, the base management fee was calculated at an annual rate of 1.75% of the Company’s gross assets, including any borrowings for investment purposes but excluding cash and cash equivalents. The base management fee was payable quarterly in arrears and the fee for any partial month or quarter was appropriately prorated.

For the period from October 1, 2017 to October 17, 2017 and the three months ended December 31, 2016, the base management fee incurred under the investment advisory agreements with FSM was $1.1 million (net of waivers) and $8.6 (net of waivers), respectively, all of which were payable to FSM. For the period from October 1, 2017 to October 17, 2017 and the three months ended December 31, 2016, FSM voluntarily waived a portion of the base management fee, which resulted in waivers of less than $0.1 million and $0.1 million, respectively.
Incentive Fee

The incentive fee paid to FSM had two parts. The first part was calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding fiscal quarter. Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding quarter, was compared to a “hurdle rate” of 1.75% per quarter (2% for periods prior to January 1, 2017), subject to a “catch-up” provision measured as of the end of each quarter. The Company’s net investment income used to calculate this part of the incentive fee was also included in the amount of its gross assets used to calculate the 1.75% base management fee. The operation of the incentive fee with respect to the Company’s pre-incentive fee net investment income for each quarter was as follows:
No incentive fee was payable to FSM in any fiscal quarter in which the Company’s pre-incentive fee net investment income did not exceed the preferred return rate of 1.75% (2% for periods prior to January 1, 2017) (the “preferred return”);
100% of the Company’s pre-incentive fee net investment income, if any, that exceeded the preferred return rate but was less than or equal to 2.1875% (2.5% for periods prior to January 1, 2017) in any fiscal quarter was payable to FSM. This portion of the Company’s pre-incentive fee net investment income (which exceeds the preferred return rate but is less than or equal to 2.1875% (2.5% for periods prior to January 1, 2017)) is referred to as the “catch-up.” The “catch-up” provision was intended to provide FSM with an incentive fee of 20% on all of the Company’s pre-incentive fee net investment income as if a preferred return rate did not apply when the Company’s pre-incentive fee net investment income exceeded 2.1875% in any quarter (2.5% for periods prior to January 1, 2017); and
For any quarter in which the Company’s pre-incentive fee net investment income, if any, exceeded 2.1875% on net assets (2.5% for periods prior to January 1, 2017) , the subordinated incentive fee on income was equal to 20% of the amount of the Company’s pre-incentive fee net investment income as the preferred return and catch-up would have been achieved.

From January 1, 2017 to October 17, 2017, in the event the cumulative subordinated incentive fee on income accrued for the Lookback Period (after giving effect to any reduction(s) pursuant to this paragraph for any prior fiscal quarters of the Lookback Period but not the quarter of calculation) exceeded 20.0% of the cumulative net increase in net assets resulting from operations during the Lookback Period, then the subordinated incentive fee on income for the quarter was reduced by an amount equal to (1) 25% of the subordinated incentive fee on income calculated for such quarter (prior to giving effect to any reduction pursuant to this paragraph) less (2) any base management fees waived by FSM for such fiscal quarter. For this purpose, the “cumulative net increase in net assets resulting from operations” was an amount, if positive, equal to the sum of pre-incentive fee net investment income, base management fees, realized gains and losses and unrealized capital appreciation and depreciation of the Company for the Lookback Period. “Lookback Period” meant the period commencing January 1, 2017 and ending on the last day of the fiscal quarter for which the subordinated incentive fee on income was being calculated.
There was no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there was no clawback of amounts previously paid if subsequent quarters were below the quarterly hurdle and there was no delay of payment if prior quarters were below the quarterly hurdle.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





The second part of the incentive fee was determined and payable in arrears as of the end of each fiscal year (or upon termination of the Former Investment Advisory Agreement, as of the termination date) and equaled 20% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of each fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees, provided that, the incentive fee determined as of September 30, 2008 was calculated for a period of shorter than twelve calendar months to take into account any realized capital gains computed net of all realized capital losses and unrealized capital depreciation from inception.
For the period from October 1, 2017 to October 17, 2017, no incentive fee was incurred under the Prior Investment Advisory Agreement. For the three months ended December 31, 2016, incentive fees incurred under the investment advisory agreement with FSM were $4.1 million.
GAAP Accruals

GAAP requires the Company to accrue for the theoretical capital gain incentive fee that would be payable after giving effect to the net unrealized capital appreciation. A fee so calculated and accrued would not be payable under either the New Investment Advisory Agreement or theotherwise as investment advisory agreements with FSM, and may never be paid based upon the computation of capital gain incentive fees in subsequent periods. Amounts ultimately paid under the New Investment Advisory Agreement will be consistent with the formula reflected in the New Investment Advisory Agreement. The Company did not accrue for capital gain incentive fees as of December 31, 2017 because the capital gain incentive fee under the New Investment Advisory Agreement will not be charged until the fiscal year ending September 30, 2019.adviser.
Administrative Services
The Company entered intois party to the New Administration Agreement with Oaktree Administrator on October 17, 2017.Administrator. Pursuant to the New Administration Agreement, Oaktree Administrator provides administrative services to the Company necessary for the operations of the Company, which include providing office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services as Oaktree Administrator, subject to review by the Company’s Board of Directors, shall from time to time deem to be necessary or useful to perform its obligations under the New Administration Agreement. Oaktree Administrator may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. Oaktree Administrator makes reports to the Company’s Board of Directors of its performance of obligations under the New Administration Agreement and furnishes advice and recommendations with respect to such other aspects of the Company’s business and affairs, in each case, as it shall determine to be desirable or as reasonably required by the Company’s Board of Directors; provided that Oaktree Administrator shall not provide any investment advice or recommendation.
Oaktree Administrator also provides portfolio collection functions for interest income, fees and warrants and is responsible for the financial and other records that the Company is required to maintain and prepares, prints and disseminates reports to the Company’s stockholders and all other materials filed with the SEC. In addition, Oaktree Administrator assists the Company in determining and publishing the Company’s net asset value, overseeing the preparation and filing of the Company’s tax returns, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Oaktree Administrator may also offer to provide, on the Company’s behalf, managerial assistance to the Company’s portfolio companies.
61
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




For providing these services, facilities and personnel, the Company reimburses Oaktree Administrator the allocable portion of overhead and other expenses incurred by Oaktree Administrator in performing its obligations under the New Administration Agreement, including the Company’s allocable portion of the rent of the Company’s principal executive offices (which are located in a building owned by a Brookfield affiliate) at market rates and the Company’s allocable portion of the costs of compensation and related expenses of its Chief Financial Officer, Chief Compliance Officer, their staffs and other non-investment professionals at Oaktree that perform duties for the Company. Such reimbursement is at cost, with no profit to, or markup by, Oaktree Administrator. The New Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other. The New Administration Agreement may also be terminated, without penalty, upon the vote of a majority of the Company’s outstanding voting securities.
Prior to its termination by its terms on October 17, 2017For the three months ended December 31, 2020 and throughout the Company’s 2017 fiscal year,2019, the Company accrued administrative expenses of $0.4 million and $0.5 million, respectively, including $0.1 million and $0.1 million of general and administrative expenses, respectively.
As of December 31, 2020 and September 30, 2020, $2.4 million and $2.1 million, respectively, was partyincluded in “Due to affiliate” in the Former Administration Agreement withConsolidated Statements of Assets and Liabilities, reflecting the Formerunpaid portion of administrative expenses and other reimbursable expenses payable to Oaktree Administrator. The Former Administrator was a wholly-owned subsidiary of FSM. Pursuant to the Former Administration Agreement, the Former Administrator provided services substantially similar to those provided by Oaktree Administrator as described above. For providing these services, facilities and personnel, the Company reimbursed

62
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





the Former Administrator the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Former Administration Agreement, including rent and the allocable portion of the costs of compensation and related expenses of its Chief Financial Officer and Chief Compliance Officer and their staffs. Such reimbursement was at cost, with no profit to, or markup by, the Former Administrator. The Former Administration Agreement with FSC CT was terminable by either party without penalty upon 60 days' written notice to the other party.
For the three months ended December 31, 2017, the Company accrued administrative expenses of $0.7 million, including $0.2 million of general and administrative expenses. Of these amounts, $0.2 million was due to the Former Administrator for administrative expenses incurred prior to October 17, 2017 and $0.5 million was due to Oaktree Administrator. For the three months ended December 31, 2016, the Company accrued administrative expenses of $1.4 million, including $0.9 million of general and administrative expenses, which were due to the Former Administrator.
As of December 31, 2017 and September 30, 2017, $1.5 million and $1.8 million was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, respectively, reflecting the unpaid portion of administrative expenses payable to the Former Administrator and Oaktree Administrator.

Note 12. Financial Highlights
  Three months ended
December 31, 2017		 Three months ended
December 31, 2016
Net asset value at beginning of period $6.16 $7.97
Net investment income (4) 0.09 0.16
Net unrealized depreciation on investments and secured borrowings (4) (0.31) (0.52)
Net realized loss on investments and secured borrowings (4) — (0.16)
Distributions to stockholders (4) (0.13) (0.18)
Net issuance/repurchases of common stock (4) — 0.04
Net asset value at end of period $5.81 $7.31
Per share market value at beginning of period $5.47 $5.81
Per share market value at end of period $4.89 $5.37
Total return (1) (8.37)% (4.44)%
Common shares outstanding at beginning of period 140,960,651 143,258,785
Common shares outstanding at end of period 140,960,651 140,960,651
Net assets at beginning of period $867,657 $1,142,288
Net assets at end of period $819,595 $1,030,272
Average net assets (2) $849,181 $1,090,244
Ratio of net investment income to average net assets (5) 6.22% 8.48%
Ratio of total expenses to average net assets (excluding fee waiver and insurance recovery) (5) 9.67% 10.60%
Effect of fee waivers (5) (0.06)% (0.02)%
Effect of insurance recoveries (5) —% (0.22)%
Ratio of net expenses to average net assets (5) 9.61% 10.36%
Ratio of portfolio turnover to average investments at fair value 12.76% 8.75%
Weighted average outstanding debt (3) $651,826 $1,168,790
Average debt per share (4) $4.62 $8.18
Asset coverage ratio 230.61% 217.39%
(Share amounts in thousands)Three months ended
December 31, 2020		Three months ended
December 31, 2019
Net asset value per share at beginning of period$6.49$6.60
Net investment income (1)0.070.06
Net unrealized appreciation (depreciation) (1)0.340.03
Net realized gains (losses) (1)0.060.02
Distributions of net investment income to stockholders(0.11)(0.10)
Net asset value per share at end of period$6.85$6.61
Per share market value at beginning of period$4.84$5.18
Per share market value at end of period$5.57$5.46
Total return (2)17.34%7.23%
Common shares outstanding at beginning of period140,961140,961
Common shares outstanding at end of period140,961140,961
Net assets at beginning of period$914,879$930,630
Net assets at end of period$964,917$931,082
Average net assets (3)$944,955$934,932
Ratio of net investment income to average net assets (4)4.21%3.33%
Ratio of total expenses to average net assets (4)11.83%7.61%
Ratio of net expenses to average net assets (4)11.83%9.81%
Ratio of portfolio turnover to average investments at fair value10.34%6.68%
Weighted average outstanding debt (5)$703,403$489,564
Average debt per share (1)$4.99$3.47
Asset coverage ratio at end of period (6)236.67%271.92%
 __________
(1)Calculated based upon weighted average shares outstanding for the period.
(2)Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming dividend reinvestment prices obtained under the Company's DRIP. Total return does not include sales load.
(2)(3)Calculated based upon the weighted average net assets for the period.
(3)(4)Interim periods are annualized.
(5)Calculated based upon the weighted average of loans payable for the period.
(4)Calculated based upon weighted average sharesdebt outstanding for the period.
(5)(6)Interim periods are annualized.Based on outstanding senior securities of $702.2 million and $540.0 million as of December 31, 2020 and 2019, respectively.
63
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)






Note 13. Unsecured Notes
2019 Notes
On February 26, 2014, the Company issued $250.0 million in aggregate principal amount of its 4.875% unsecured notes due 2019 (the "2019 Notes") for net proceeds of $244.4 million after deducting OID of $1.4 million, underwriting commissions and discounts of $3.7 million and offering costs of $0.5 million.  The OID on the 2019 Notes is amortized based on the effective interest method over the term of the notes.Derivative Instruments
The 2019 Notes were issued pursuantCompany enters into forward currency contracts from time to time to help mitigate the impact that an indenture, dated April 30, 2012, as supplemented by the supplemental indenture, dated February 26, 2014 (collectively, the "2019 Notes Indenture"), between the Company and the Trustee. The 2019 Notes are the Company's general unsecured obligations that rank senioradverse change in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2019 Notes. The 2019 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2019 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent offoreign exchange rates would have on the value of the assets securing such indebtedness.Company’s investments denominated in foreign currencies.
In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company entered into an International Swaps and Derivatives Association, Inc. Master Agreement (the "ISDA Master Agreement") with its derivative counterparty, JPMorgan Chase Bank, N.A. The 2019 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred byISDA Master Agreement permits a single net payment in the Company's subsidiaries, financing vehiclesevent of a default or similar facilities. 
Interest on the 2019 Notes is paid semi-annually on March 1 and September 1 at a rate of 4.875% per annum. The 2019 Notes mature on March 1, 2019 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity.
The 2019 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with (regardless of whether the Company is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring the Company to provide financial information to the holders of the 2019 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants are subject to limitations and exceptions that are described in the 2019 Notes Indenture. The Company may repurchase the 2019 Notes in accordance with the 1940 Act and the rules promulgated thereunder. In addition, holders of the 2019 Notes can require the Company to repurchase the 2019 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2019 Notes Indenture. The 2019 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the three months ended December 31, 2017 and 2016, the Company did not repurchase any of the 2019 Notes in the open market.
For each of the three months ended December 31, 2017 and 2016, the Company recorded interest expense of $3.3 million related to the 2019 Notes.
event. As of December 31, 2017, there were $250.0 million of 2019 Notes outstanding, which had a carrying value and fair value of $248.6 million and $250.7 million, respectively.
2024 Notes
On October 18, 2012, the Company issued $75.0 million in aggregate principal amount of its 5.875% unsecured 2024 Notes for net proceeds of $72.5 million after deducting underwriting commissions of $2.2 million and offering costs of $0.3 million.
The 2024 Notes were issued pursuant2020, no cash collateral has been pledged to an indenture, dated April 30, 2012, as supplemented by the first supplemental indenture, dated October 18, 2012 (collectively, the "2024 Notes Indenture"), between the Company and the Trustee. The 2024 Notes are the Company's unsecuredcover obligations and rank senior in right of paymentno cash collateral has been received from the counterparty with respect to the Company's existingforward currency contracts.
Net unrealized gains or losses on foreign currency contracts are included in “net unrealized appreciation (depreciation)” and future indebtedness that is expressly subordinatednet realized gains or losses on forward currency contracts are included in right of payment to the 2024 Notes; equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company's secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries or financing vehicles.
Interest on the 2024 Notes is paid quarterly in arrears on January 30, April 30, July 30 and October 30, at a rate of 5.875% per annum. The 2024 Notes mature on October 30, 2024 and may be redeemed in whole or in part at any time or from time to time at the Company's option on or after October 30, 2017. As of October 17, 2017, the 2024 Notes were listed on the New York Stock Exchange
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





under the trading symbol “OSLE” with a par value of $25.00 per note. Prior to October 17, 2017, the 2024 Notes were listed on the New York Stock Exchange under the trading symbol "FSCE".
The 2024 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with (regardless of whether the Company is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act and with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring the Company to provide financial information to the holders of the 2024 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. These covenants are subject to limitations and exceptions that are described“net realized gains (losses)” in the 2024 Notes Indenture. The Company may repurchase the 2024 Notes in accordance with the 1940 Act and the rules promulgated thereunder. Any 2024 Notes repurchased by the Company may, at the Company's option, be surrendered to the Trustee for cancellation, but may not be reissued or resold by the Company. Any 2024 Notes surrendered for cancellation will be promptly canceled and no longer outstanding under the 2024 Notes Indenture. During the three months ended December 31, 2017 and 2016, the Company did not repurchase anyaccompanying Consolidated Statements of the 2024 Notes in the open market.Operations. Forward currency contracts are considered undesignated derivative instruments.
For each of the three months ended December 31, 2017 and December 31, 2016, the Company recorded interest expense of $1.2 millionCertain information related to the 2024 Notes.
AsCompany’s foreign currency forward contracts is presented below as of December 31, 2017, there were $75.0 million of 2024 Notes outstanding, which had a carrying value and fair value of $73.6 million and $75.6 million, respectively.2020.
2028 Notes
DescriptionNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet Location of Net Amounts
Foreign currency forward contract$36,999 £27,894 2/11/2021$— $(1,141)Derivative liability
Foreign currency forward contract$30,308 €25,614 2/11/2021$— $(1,062)Derivative liability
$— $(2,203)
In April and May 2013, the Company issued $86.3 million in aggregate principal amount of its 6.125% unsecured 2028 Notes for net proceeds of $83.4 million after deducting underwriting commissions of $2.6 million and offering costs of $0.3 million.
The 2028 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the second supplemental indenture, dated April 4, 2013 (collectively, the "2028 Notes Indenture"), between the Company and the Trustee. The 2028 Notes are the Company's unsecured obligations and rank senior in right of payment to the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2028 Notes; equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company's secured indebtedness (including existing unsecured indebtedness that it later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries or financing vehicles.
Interest on the 2028 Notes is paid quarterly in arrears on January 30, April 30, July 30 and October 30, at a rate of 6.125% per annum. The 2028 Notes mature on April 30, 2028 and may be redeemed in whole or in part at any time or from time to time at the Company's option on or after April 30, 2018. As of October 17, 2017, the 2028 Notes are listed on the NASDAQ Global Select Market under the trading symbol "OCSLL" with a par value of $25.00 per note. Prior to October 17, 2017, the 2028 Notes were listed on the NASDAQ Global Select Market under the trading symbol "FSCFL."
The 2028 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring the Company to provide financialCertain information to the holders of the 2028 Notes and the Trustee if it ceases to be subject to the reporting requirements of the Exchange Act. These covenants are subject to limitations and exceptions that are described in the 2028 Notes Indenture. The Company may repurchase the 2028 Notes in accordance with the 1940 Act and the rules promulgated thereunder. Any 2028 Notes repurchased by the Company may, at its option, be surrendered to the Trustee for cancellation, but may not be reissued or resold by the Company. Any 2028 Notes surrendered for cancellation will be promptly canceled and no longer outstanding under the 2028 Notes Indenture. During the three months ended December 31, 2017 and 2016, the Company did not repurchase any of the 2028 Notes in the open market.
For each of the three months ended December 31, 2017 and 2016, the Company recorded interest expense of $1.4 million related to the 2028 Notes.
AsCompany’s foreign currency forward contracts is presented below as of December 31, 2017, there were $86.3 million of 2028 Notes outstanding, which had a carrying value and fair value of $84.3 million and $86.9 million, respectively.
Note 14. Secured Borrowings
See Note 2 "Secured Borrowings" for a description of the Company's accounting treatment of secured borrowings.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





As of December 31, 2017, there were $13.5 million of secured borrowings outstanding. As of December 31, 2017, secured borrowings at fair value totaled $11.6 million and the fair value of the investment that is associated with these secured borrowings was $40.6 million. These secured borrowings were the result of the Company's completion of partial loan sales totaling $22.8 million of a senior secured debt investment during the fiscal year ended September 30, 2014 that did not meet the definition of a participating interest. As a result, sale treatment was not allowed and these partial loan sales were treated as secured borrowings. The Company receives loan servicing fees as it continues to serve as administrative agent for this investment. As a result, the Company earns servicing fees in connection with the loans that were partially sold. During the three months ended December 31, 2017, there were no net repayments on secured borrowings. During the three months ended December 31, 2016, there were $4.5 million of net repayments on secured borrowings.2020.
For the three months ended December 31, 2017 and December 31, 2016, the secured borrowings bore interest at a weighted average interest rate of 7.91% and 8.94%, respectively. For the three months ended December 31, 2017 and 2016, the Company recorded interest expense of $0.3 million and $0.4 million, respectively, related to the secured borrowings.
DescriptionNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet Location of Net Amounts
Foreign currency forward contract$35,577 £27,494 11/12/2020$25 $— Derivative asset
Foreign currency forward contract$30,260 €25,614 11/12/2020$198 $— Derivative asset
$223 $— 


Note 15.14. Commitments and Contingencies
SEC ExaminationMerger Litigation
On December 18, 2020, putative stockholder Oklahoma Firefighters Pension and Investigation
On March 23, 2016, the DivisionRetirement System filed a complaint on behalf of Enforcementitself and all other similarly situated holders of the SEC sent document subpoenasCompany’s common stock and document preservation notices to the Company, FSAM, FSCO GP LLC - General Partnerderivatively on behalf of Fifth Street Opportunities Fund, L.P. ("FSOF") and OCSI. The subpoenas sought production of documents relating to a variety of issues principally related to the activities of FSM, including those raised in an ordinary-course examination of FSM by the SEC’s Office of Compliance Inspections and Examinations that began in October 2015, andus as nominal defendant in the previously disclosed securities class actionsDelaware Court of Chancery, captioned Oklahoma Firefighters Pension and other previously disclosed litigation.Retirement System v. Frank, et al., No. 2020-1075-VCM (Del. Ch.). This lawsuit is referred to herein as the “Merger Litigation”. The subpoenas were issued pursuant toMerger Litigation alleges a formal orderdirect breach of private investigation captioned In the Matter of the Fifth Street Group of Companies, No. HO-12925, dated March 23, 2016, which addresses (among other things) (i) the valuation of the Company's portfolio companies and investments, (ii) the expenses allocated or charged to the Company and OCSI, (iii) FSOF’s trading in the securities of publicly traded business development companies, (iv) statements tofiduciary duty claim against the Board of Directors other representatives of pooled investment vehicles, investors, or prospective investors concerningin connection with the fair valuesolicitation of the Company's portfolio companies approval by the Company’s stockholders of the issuance of shares of the Company’s common stock to be issued pursuant to the Merger Agreement and a derivative breach of fiduciary duty claim against the Board of Directors in connection with its negotiation and approval of the Mergers. The Merger Litigation alleges, among other things, that the members of the Board of Directors had certain conflicts of interest in the negotiation and approval of the Mergers and that the initial filing of the joint proxy statement/prospectus relating to the Mergers omitted certain information that the plaintiff claims is material. The Merger Litigation, among other things, requests that the court enjoin the vote of the Company’s stockholders with respect to the approval of the issuance of shares of the Company’s common stock to be issued pursuant to the Merger Agreement and award attorneys’ fees and damages in an unspecified amount.
The defendants believe that the Company previously made complete disclosure of all information required to be disclosed to ensure that the Company’s stockholders can make an informed vote at the Company’s Annual Meeting of Stockholders and that the additional disclosures requested by the plaintiff are immaterial and/or investmentswere included in the preliminary joint proxy statement/prospectus filed as wellpart of the Company’s Registration Statement on Form N-14 on November 23, 2020.
64
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as expenses allocatedotherwise indicated)




Accordingly, the defendants believe these claims are without merit and intend to vigorously defend against them. However, in an attempt to reduce the costs, risks and uncertainties inherent in litigation and to maximize the Company’s net asset value at the time of the Mergers, the Company determined to voluntarily include certain supplemental disclosures in the amendment to its Registration Statement on Form N-14 filed on January 19, 2021. The inclusion of such disclosures shall not be deemed an admission of the legal necessity or charged tomateriality of any of these disclosures under applicable law. Rather, the Company and OCSI, (v) various issues relating to adoption and implementationits Board of policies and procedures under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), (vi) statements and/or potential omissionsDirectors specifically deny all allegations in the entities’ SEC filings, (vii)Merger Litigation that any additional disclosure was or is required.
Neither the entities’ books, records, and accounts and whether they fairly and accurately reflected the entities’ transactions and dispositions of assets, and (viii) several other issues relating to corporate books and records. The formal order cites various provisionsoutcome of the Securities Actlawsuit nor an estimate of 1933,any reasonably possible losses is determinable as amended,of December 31, 2020. No provision for any losses related to the Exchange Act andlawsuit has been recorded in the Advisers Act,consolidated financial statements as well as rules promulgated under those Acts, as the bases of the investigation. The Company is cooperatingDecember 31, 2020. In connection with the Divisionlawsuit, the Company incurred professional fees of Enforcement investigation, has produced requested documents, and has been communicating with Division of Enforcement personnel. The Investment Adviser is not subject to these subpoenas.$0.2 million during the three months ended December 31, 2020.
Off-Balance Sheet Arrangements
The Company may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its portfolio companies. As of December 31, 2017,2020, the Company's only off-balance sheet arrangements consisted of $98.7$197.6 million of unfunded commitments, which was comprised of $88.0$192.8 million to provide debt financing to certain of its portfolio companies, $1.3 million to provide equity financing to SLF JV I and $9.4$3.5 million related to unfunded limited partnership interests. As of September 30, 2017,2020, the Company's only off-balance sheet arrangements consisted of $118.1$157.5 million of unfunded commitments, which was comprised of $107.3$152.7 million to provide debt financing to certain of its portfolio companies, $1.3 million to provide equity financing to SLF JV I and $9.5$3.5 million related to unfunded limited partnership interests. Such commitments are subject to itsthe portfolio companies' satisfaction of certain financial and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company's Consolidated Statements of Assets and Liabilities.
A list of unfunded commitments by investment (consisting of revolvers, term loans with delayed draw components, SLF JV I LLC equity interests, and limited partnership interests) as of December 31, 2017 and September 30, 2017 is shown in the table below:
65
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





  December 31, 2017 September 30, 2017
 Lift Brands Holdings, Inc. $15,000
 $15,000
 P2 Upstream Acquisition Co. 10,000
 10,000
 Valet Merger Sub, Inc. 9,326
 9,326
 Edge Fitness, LLC 6,215
 8,353
 InMotion Entertainment Group, LLC 5,545
 7,544
 EOS Fitness Opco Holdings, LLC 5,000
 5,000
 Dominion Diagnostics, LLC (1) 4,180
 4,180
 Impact Sales, LLC 3,236
 3,234
 Pingora MSR Opportunity Fund I, LP (limited partnership interest) 3,095
 2,760
 WeddingWire, Inc. 3,000
 3,000
 Keypath Education, Inc. 3,000
 3,000
 Motion Recruitment Partners LLC 2,900
 2,900
 OmniSYS Acquisition Corporation 2,500
 2,500
 Ping Identity Corporation 2,500
 2,500
 Datto Inc. 2,356
 —
 Traffic Solutions Holdings, Inc. 2,248
 2,998
 4 Over International, LLC 2,232
 2,232
 New IPT, Inc. 2,229
 2,229
 Refac Optical Group 2,080
 2,080
 SPC Partners VI, L.P. (limited partnership interest) 1,862
 2,000
 Metamorph US 3, LLC (1) 1,470
 1,470
 TransTrade Operators, Inc. (1)(2) 1,393
 1,052
 Senior Loan Fund JV 1, LLC 1,328
 1,328
 Edmentum, Inc. (1) 932
 2,664
 Riverside Fund V, LP (limited partnership interest) 539
 539
 Webster Capital III, L.P. (limited partnership interest) 482
 736
 Sterling Capital Partners IV, L.P. (limited partnership interest) 474
 490
 Tailwind Capital Partners II, L.P. (limited partnership interest) 469
 391
 Beecken Petty O'Keefe Fund IV, L.P. (limited partnership interest) 468
 472
 Ministry Brands, LLC 375
 1,708
 Moelis Capital Partners Opportunity Fund I-B, L.P. (limited partnership interest) 365
 365
 RCP Direct II, LP (limited partnership interest) 364
 364
 Cenegenics, LLC (1) 297
 297
 Riverside Fund IV, LP (limited partnership interest) 254
 254
 ACON Equity Partners III, LP (limited partnership interest) 231
 239
 Bunker Hill Capital II (QP), LP (limited partnership interest) 183
 183
 RCP Direct, LP (limited partnership interest) 178
 184
 SPC Partners V, L.P. (limited partnership interest) 148
 159
 Riverlake Equity Partners II, LP (limited partnership interest) 129
 129
 Milestone Partners IV, LP (limited partnership interest) 84
 180
 Baird Capital Partners V, LP (limited partnership interest) 54
 —
 BeyondTrust Software, Inc. —
 5,995
 Thing5, LLC —
 3,000
 Garretson Firm Resolution Group, Inc. —
 508
 Sailpoint Technologies, Inc. —
 1,500
 Systems, Inc. —
 3,030
Total $98,721
 $118,073
 ___________ 
(1) ThisA list of unfunded commitments by investment was on cash or PIK non-accrual status(consisting of revolvers, term loans with delayed draw components, SLF JV I LLC subordinated notes and LLC equity interests and limited partnership interests) as of December 31, 20172020 and September 30, 2017.2020 is shown in the table below:
(2) This portfolio company does not have the ability to draw on this unfunded commitment as of December 31, 2017.
December 31, 2020September 30, 2020
Assembled Brands Capital LLC$33,326 $36,079 
WPEngine, Inc.26,348 26,348 
NuStar Logistics, L.P.17,911 17,911 
Athenex, Inc.17,085 22,780 
FFI Holdings I Corp16,529 — 
Thrasio, LLC11,355 — 
Jazz Acquisition, Inc.10,147 — 
Gulf Operating, LLC10,064 — 
Latam Airlines Group S.A.8,177 — 
MRI Software LLC6,473 7,239 
NeuAG, LLC4,382 4,382 
Corrona, LLC3,968 5,189 
Olaplex, Inc.3,834 1,917 
Pingora MSR Opportunity Fund I-A, LP3,500 3,500 
Dominion Diagnostics, LLC3,449 5,887 
Mindbody, Inc.3,048 3,048 
Ardonagh Midco 3 PLC2,506 3,007 
Accupac, Inc.2,346 2,346 
Acquia Inc.2,240 2,240 
New IPT, Inc.2,229 2,229 
ADB Companies, LLC1,667 — 
Apptio, Inc.1,538 1,538 
Telestream Holdings Corporation1,417 — 
Senior Loan Fund JV I, LLC1,328 1,328 
Ministry Brands, LLC1,000 425 
Coyote Buyer, LLC942 942 
Immucor, Inc.541 541 
GKD Index Partners, LLC231 231 
A.T. Holdings II SÀRL— 7,541 
iCIMs, Inc.— 882 
Total$197,581 $157,530 

66
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Note 15. Pending Merger with OCSI

On October 28, 2020, the Company entered into the Merger Agreement, which provides that, subject to the conditions set forth in the Merger Agreement, at the Effective Time Merger Sub will merge with and into OCSI, with OCSI continuing as the surviving company and as a wholly-owned subsidiary of the Company and, immediately thereafter, OCSI will merge with and into the Company, with the Company continuing as the surviving company.

At the Effective Time, each share of common stock, par value $0.01 per share, of OCSI (“OCSI Common Stock”) issued and outstanding immediately prior to the Effective Time (other than shares owned by the Company or any of its consolidated subsidiaries (the “Cancelled Shares”)) will be converted into the right to receive a number of shares of the Company’s common stock equal to the Exchange Ratio (as defined below), plus any cash (without interest) in lieu of fractional shares.
As of a mutually agreed date no earlier than 48 hours (excluding Sundays and holidays) prior to the Effective Time (such date, the “Determination Date”), each of the Company and OCSI will deliver to the other a calculation of its net asset value as of such date (such calculation with respect to the Company, the “Closing OCSL Net Asset Value” and such calculation with respect to OCSI, the “Closing OCSI Net Asset Value”), in each case using a pre-agreed set of assumptions, methodologies and adjustments. Based on such calculations, the parties will calculate the “OCSI Per Share NAV”, which will be equal to (i) the Closing OCSI Net Asset Value divided by (ii) the number of shares of OCSI Common Stock issued and outstanding as of the Determination Date (excluding any Cancelled Shares), and the “OCSL Per Share NAV”, which will be equal to (A) the Closing OCSL Net Asset Value divided by (B) the number of shares of the Company’s common stock issued and outstanding as of the Determination Date. The “Exchange Ratio” will be equal to the quotient (rounded to four decimal places) of (i) the OCSI Per Share NAV divided by (ii) the OCSL Per Share NAV.
The Company and OCSI will update and redeliver the Closing OCSL Net Asset Value or the Closing OCSI Net Asset Value, respectively, in the event of a material change to such calculation between the Determination Date and the closing of the Mergers and if needed to ensure that the calculation is determined within 48 hours (excluding Sundays and holidays) prior to the Effective Time.

The Merger Agreement contains customary representations and warranties by each of the Company, OCSI and Oaktree. The Merger Agreement also contains customary covenants, including, among others, covenants relating to the operation of each of the Company’s and OCSI’s businesses during the period prior to the closing of the Mergers.

Consummation of the Mergers, which is currently anticipated to occur during the first half of calendar year 2021, is subject to certain closing conditions, including requisite approvals of the Company’s and OCSI’s stockholders and certain other closing conditions.

The Merger Agreement also contains certain termination rights in favor of the Company and OCSI, including if the Mergers are not completed on or before July 28, 2021 or if the requisite approvals of the Company’s or OCSI’s stockholders are not obtained. The Merger Agreement provides that, upon the termination of the Merger Agreement under certain circumstances, a third party acquiring OCSI may be required to pay the Company a termination fee of approximately $5.7 million. The Merger Agreement provides that, upon the termination of the Merger Agreement under certain circumstances, a third party acquiring the Company may be required to pay OCSI a termination fee of approximately $20.0 million.

The Mergers are expected to be accounted for as an asset acquisition of OCSI by the Company in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues, with the fair value of total consideration paid in conjunction with the Mergers allocated to the assets acquired and liabilities assumed based on their relative fair values as of the date of the Mergers. Under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. The consideration paid by the Company will be allocated to the individual assets acquired or liabilities assumed based on their relative fair values of net identifiable assets acquired other than “non-qualifying” assets (for example, cash) and does not give rise to goodwill. The Company has determined the fair value of its shares of common stock to be issued pursuant to the Merger Agreement plus transaction costs (“purchase price”) to be most evident of fair value for measuring the consideration given in connection with the Mergers. To the extent that the purchase price does not closely approximate the net asset value of the Company’s common stock at such time, the difference between the purchase price and the fair value of OCSI’s net assets acquired would result in a purchase discount or premium (henceforth referred to as the (“purchase discount (or premium)”). The purchase discount (or premium) will be allocated to the acquired assets and assumed liabilities of OCSI based on their relative fair values as of the Effective Time. Immediately following the Mergers, the Company will record its investments, including the acquired OCSI investments, at their respective fair values and, as a result, the purchase discount (or premium) allocated to the cost basis of the investments acquired from OCSI will be recognized as unrealized appreciation (or depreciation). The purchase discount (or premium) allocated to the acquired OCSI investments in
67
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




loans would accrete (or amortize) over the life of the loans through interest income with a corresponding reversal of the initial unrealized appreciation (or depreciation) on the acquired OCSI loans through their ultimate disposition. The purchase discount (or premium) allocated to the acquired OCSI investments in equity securities would not accrete (or amortize) over the life of the equity securities through interest income and, assuming no subsequent change to the fair value of the acquired OCSI equity securities and disposition of such equity securities at fair value, would be recognized as realized gain (or loss) with a corresponding reversal of the unrealized appreciation (or depreciation) upon disposition of such equity securities. The final allocation of the purchase price will be determined after the Mergers are completed and after completion of a final analysis to determine the estimated relative fair values of OCSI’s assets and liabilities.

Note 16. Subsequent Events
The Company’s management evaluated subsequent events through the date of issuance of the Consolidated Financial Statements. There have been no subsequent events that occurred during such period that would require disclosure in, or would be required to be recognized in the Consolidated Financial Statements as of and for the three months ended December 31, 2017,2020, except as discussed below:below.
Distribution Declaration
On February 5, 2018,January 29, 2021, the Company’s Board of Directors declared a quarterly dividenddistribution of $0.085$0.12 per share, payable in cash on March 30, 201831, 2021 to stockholders of record on March 15, 2018.2021.



68








Schedule 12-14
Oaktree Specialty Lending Corporation
Schedule of Investments in and Advances to Affiliates
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
Three months ended December 31, 20172020
(unaudited)
Portfolio Company/Type of Investment (1) Cash Interest RateIndustryPrincipalNet Realized Gain (Loss)Amount of
Interest,
Fees or
Dividends
Credited in
Income (2)		Fair Value
as of October 1,
2020		Gross
Additions (3)		Gross
Reductions (4)		Fair Value
as of December 31, 2020		% of Total Net Assets
Control Investments
C5 Technology Holdings, LLCData Processing & Outsourced Services
829 Common Units$— $— $— $— $— $— — %
34,984,460.37 Preferred Units— — 27,638 — — 27,638 2.9 %
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.00 %$27,590 — 437 27,660 — (70)27,590 2.9 %
First Lien Revolver, LIBOR+5.00% cash due 2/28/20246.00 %7,699 — 111 5,260 2,439 — 7,699 0.8 %
30,030.8 Common Units in DD Healthcare Services Holdings, LLC— — 7,667 — — 7,667 0.8 %
 First Star Speir Aviation Limited (5)Airlines
First Lien Term Loan, 9.00% cash due 12/15/20257,500 — 130 11,510 — (4,010)7,500 0.8 %
100% equity interest— — 1,622 2,204 (2,145)1,681 0.2 %
New IPT, Inc.Oil & Gas Equipment & Services
First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %2,154 — 37 1,800 33 (150)1,683 0.2 %
First Lien Revolver, LIBOR+5.00% cash due 3/17/20216.00 %1,009 — 17 788 — — 788 0.1 %
50.087 Class A Common Units in New IPT Holdings, LLC— — — — — — — %
 Senior Loan Fund JV I, LLC (6)Multi-Sector Holdings
Subordinated Debt, LIBOR+7.00% cash due 12/29/20287.14 %96,250 — 1,756 96,250 — — 96,250 10.0 %
87.5% LLC equity interest— — 21,190 8,074 — 29,264 3.0 %
Total Control Investments$142,202 $— $2,488 $201,385 $12,750 $(6,375)$207,760 21.5 %
Affiliate Investments
 Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %$7,440 $— $110 $4,194 $2,755 $— $6,949 0.7 %
1,609,201 Class A Units— — 483 — (65)418 — %
1,019,168.80 Preferred Units, 6%— — 1,091 10 — 1,101 0.1 %
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — — — — — — %
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%— — — 741 — (238)503 0.1 %
Total Affiliate Investments$7,440 $— $110 $6,509 $2,765 $(303)$8,971 0.9 %
Total Control & Affiliate Investments$149,642 $— $2,598 $207,894 $15,515 $(6,678)$216,731 22.5 %
Portfolio Company/Type of Investment (1)  Cash Interest Rate Industry Principal Net Realized Gain (Loss) 
Amount of
Interest,
Fees or
Dividends
Credited in
Income (2)
 
Fair Value
at October 1,
2017
 
Gross
Additions (3)
 
Gross
Reductions (4)
 
Fair Value
at December 31, 2017
 % of Total Net Assets
Control Investments                    
Traffic Solutions Holdings, Inc.    Construction & engineering                
 First Lien Term Loan, LIBOR+7% (1% floor) cash 2% PIK due 4/1/2021 8.70%   $36,661
 $—
 $1,088
 $36,568
 $186
 $(92) $36,662
 4.5%
 First Lien Revolver, LIBOR+6% (1% floor) cash due 4/1/2021 7.70%   2,000
 —
 37
 1,250
 750
 —
 2,000
 0.2%
 LC Facility, 6% cash due 4/1/2021     4,752
 —
 64
 4,752
 —
 —
 4,752
 0.6%
 746,114 Series A Preferred Units, 10%     —
 —
 —
 7,700
 —
 —
 7,700
 0.9%
 746,114 Common Stock Units     —
 —
 —
 —
 —
 —
 —
 —%
TransTrade Operators, Inc. (7)    Air freight and logistics               

 First Lien Term Loan, 5% cash due 12/31/2017     15,973
 —
 —
 1,810
 —
 —
 1,810
 0.2%
 First Lien Revolver, 8% cash due 12/31/2017     7,757
 —
 —
 —
 —
 —
 —
 —%
 596.67 Series A Common Units     —
 —
 —
 —
 —
 —
 —
 —%
 4,000 Series A Preferred Units in TransTrade Holdings LLC     —
 —
 —
 —
 —
 —
 —
 —%
 5,200,000 Series B Preferred Units in TransTrade Holdings LLC     —
 —
 —
 —
 —
 —
 —
 —%
First Star Speir Aviation Limited (6)    Airlines               

 First Lien Term Loan, 9% cash due 12/15/2020     32,510
 —
 634
 41,395
 464
 (9,348) 32,511
 4.0%
 100% equity interest     —
 —
 —
 3,926
 3,011
 —
 6,937
 0.8%
First Star Bermuda Aviation Limited (6)    Airlines               

 First Lien Term Loan, 9% cash 3% PIK due 8/19/2018     11,868
 —
 406
 11,868
 —
 —
 11,868
 1.4%
 100% equity interest     —
 —
 —
 2,323
 4,993
 —
 7,316
 0.9%
 Eagle Hospital Physicians, LLC    Healthcare services               

 Earn-out     —
 —
 —
 4,986
 97
 —
 5,083
 0.6%
Senior Loan Fund JV I, LLC (5)    Multi-sector holdings               

 Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC 6.52%   100,804
 —
 1,754
 101,030
 —
 (226) 100,804
 12.3%
 Class B Mezzanine Secured Deferrable Fixed Rate Notes, 15% PIK due 2036 in SLF Repack Issuer 2016 LLC     27,463
 —
 1,006
 27,641
 —
 (178) 27,463
 3.4%
 87.5% LLC equity interest     —
 —
 —
 5,525
 —
 (645) 4,880
 0.6%
 Ameritox Ltd. (7)    Healthcare services               

 First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 6.69%   39,438
 —
 —
 4,445
 361
 (6) 4,800
 0.6%
 14,090,126.4 Class A Preferred A Units in Ameritox Holdings II, LLC     —
 —
 —
 —
 —
 —
 —
 —%
 1,602,260.83 Class B Preferred A Units in Ameritox Holdings II, LLC     —
 —
 —
 —
 —
 —
 —
 —%
 4,930.03 Common Units in Ameritox Holdings II, LLC     —
 —
 —
 —
 —
 —
 —
 —%


 New IPT, Inc.    Oil & gas equipment services               

 First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/17/2021 6.69%   $4,107
 $—
 $67
 $4,107
 $—
 $—
 $4,107
 0.5%
 Second Lien Term Loan, LIBOR+5.1% (1% floor) cash due 9/17/2021 6.79%   2,504
 —
 41
 2,504
 —
 —
 2,504
 0.3%
 First Lien Revolver, LIBOR+5% (1% floor) cash due 3/17/2021 6.69%   1,009
 —
 18
 1,009
 —
 —
 1,009
 0.1%
 50.087 Class A Common Units in New IPT Holdings, LLC     —
 —
 —
 736
 227
 —
 963
 0.1%
 AdVenture Interactive, Corp.    Advertising               

 9,073 shares of common stock     —
 —
 —
 13,818
 —
 (7,397) 6,421
 0.8%
 Keypath Education, Inc.    Advertising               

 First Lien Term Loan, LIBOR+7% (1% floor) cash due 4/3/2022 8.69%   19,960
 —
 435
 19,960
 —
 —
 19,960
 2.4%
 First Lien Revolver, LIBOR+7% (1% floor) cash due 4/3/2022 8.69%   —
 —
 4
 —
 —
 —
 —
 —%
 9,073 Class A Units in FS AVI Holdco, LLC     —
 —
 —
 7,918
 66
 —
 7,984
 1.0%
Total Control Investments     $306,806
 $—
 $5,554
 $305,271
 $10,155
 $(17,892) $297,534
 36.3%
                     
Affiliate Investments                    
Caregiver Services, Inc.    Healthcare services                
 Second Lien Term Loan, 10% cash 2% PIK due 6/30/2019     9,752
 —
 265
 9,665
 43
 —
 9,708
 1.2%
 1,080,399 shares of Series A Preferred Stock, 10%     —
 —
 —
 2,534
 —
 (373) 2,161
 0.3%
AmBath/ReBath Holdings, Inc.    Home improvement retail               

 First Lien Term Loan B, 12.5% cash 2.5% PIK due 8/31/2018     22,552
 —
 864
 22,957
 169
 (574) 22,552
 2.8%
 4,668,788 shares of Preferred Stock     —
 —
 —
 1,827
 221
 —
 2,048
 0.2%
Total Affiliate Investments     $32,304
 $—
 $1,129
 $36,983
 $433
 $(947) $36,469
 4.4%
Total Control & Affiliate Investments     $339,110
 $—
 $6,683
 $342,254
 $10,588
 $(18,839) $334,003
 40.8%

This schedule should be read in connection with the Company's Consolidated Financial Statements, including the Consolidated Schedules of Investments and Notes to the Consolidated Financial Statements.
______________________
(1)The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments.
(2)Represents the total amount of interest, fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest (net of non-accrual amounts) and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.
(4)Gross reductions include decreases in the cost basis of investment resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
(5)Together with Kemper, the Company co-invests through SLF JV I. SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).
(6)First Star Bermuda Aviation Limited and First Star Speir Aviation Limited are wholly-owned holding companies formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding companies to be investment companies under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding companies and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding companies are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(7)This investment was on cash non-accrual status as of December 31, 2017 and September 30, 2017.

(1)The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments.
(2)Represents the total amount of interest (net of non-accrual amounts), fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.
69

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest (net of non-accrual amounts) and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
(5)First Star Speir Aviation Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding company to be an investment company under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(6)Together with Kemper, the Company co-invests through SLF JV I. SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).



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Schedule 12-14
Oaktree Specialty Lending Corporation
Schedule of Investments in and Advances to Affiliates
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
Three months ended December 31, 20162019
(unaudited)
Portfolio Company/Type of Investment (1) Cash Interest RateIndustryPrincipalNet Realized Gain (Loss)Amount of
Interest,
Fees or
Dividends
Credited in
Income (2)		Fair Value
as of October 1,
2019		Gross
Additions (3)		Gross
Reductions (4)		Fair Value
as of December 31, 2019		% of Total Net Assets
Control Investments
C5 Technology Holdings, LLCData Processing & Outsourced Services
829 Common Units$— $— $— $— $— $— — %
34,984,460.37 Preferred Units— — 34.984 — — 34,984 3.8 %
 First Star Speir Aviation Limited (5)Airlines
First Lien Term Loan, 9.00% cash due 12/15/2020$11,510 — 323 11,510 — — 11,510 1.2 %
100% equity interest— — — 4,630 — (174)4,456 0.5 %
New IPT, Inc.Oil & Gas Equipment & Services
 First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.94 %2,755 — 61 3,256 — (501)2,755 0.3 %
 First Lien Revolver, LIBOR+5.00% cash due 3/17/20216.94 %1,009 — 20 1,009 — — 1,009 0.1 %
 50.087 Class A Common Units in New IPT Holdings, LLC— — 2,903 — — 2,903 0.3 %
 Senior Loan Fund JV I, LLC (6)Multi-Sector Holdings
Subordinated Debt, LIBOR+7.00% cash due 12/29/20289.01 %96,250 — 2,217 96,250 — — 96,250 10.3 %
87.5% LLC equity interest— — 30,052 2,171 — 32,223 3.5 %
 Thruline Marketing, Inc.Advertising
 First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022— — 257 18,146 — (18,146)— — %
 First Lien Revolver, LIBOR+7.75% cash due 4/3/2022— — 2 — — — — — %
 9,073 Class A Units in FS AVI Holdco, LLC— — 6,438 — — 6,438 0.7 %
Total Control Investments$111,524 $— $2,880 $209,178 $2,171 $(18,821)$192,528 20.7 %
Affiliate Investments
 Assembled Brands Capital LLCSpecialized Finance
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/20237.94 %$5,585 $— $119 $5,585 $— $— $5,585 0.6 %
1,609,201 Class A Units— — 782 135 — 917 0.1 %
1,019,168.80 Preferred Units, 6%— — 1,019 21 — 1,040 0.1 %
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — — — — — — %
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%— — — 1,784 — (220)1,564 0.2 %
Total Affiliate Investments$5,585 $— $119 $9,170 $156 $(220)$9,106 1.0 %
Total Control & Affiliate Investments$117,109 $— $2,999 $218,348 $2,327 $(19,041)$201,634 21.7 %
Portfolio Company/Type of Investment (1)  Cash Interest Rate Industry Principal Net Realized Gain (Loss) 
Amount of
Interest,
Fees or
Dividends
Credited in
Income (2)
 
Fair Value
at October 1,
2015
 
Gross
Additions (3)
 
Gross
Reductions (4)
 
Fair Value
at December 31, 2016
 % of Total Net Assets
Control Investments                    
Traffic Solutions Holdings, Inc.    Construction & engineering                
 First Lien Term Loan, LIBOR+7% (1% floor) cash 2% PIK due 4/1/2021 8.00%   $36,278
 $—
 $1,050
 $36,328
 $310
 $(360) $36,278
 3.5%
 First Lien Revolver, LIBOR+7% (1% floor) cash due 4/1/2021 8.00%   1,800
 —
 53
 2,800
 2
 (1,002) 1,800
 0.2%
 LC Facility, 6% cash due 4/1/2021     3,518
 —
 58
 3,518
 2
 (2) 3,518
 0.3%
 746,114 Series A Preferred Units - Granted     —
 —
 676
 20,094
 1,919
 —
 22,013
 2.1%
 746,114 Common Stock Units - Granted     —
 —
 —
 —
 378
 —
 378
 —%
TransTrade Operators, Inc. (7)    Air freight and logistics               

 First Lien Term Loan, 11% cash 3% PIK due 12/31/2017     15,973
 —
 6
 7,046
 642
 (6) 7,682
 0.7%
 First Lien Revolver, 8% cash due 12/31/2017     8,220
 —
 —
 —
 1,335
 (1,335) —
 —%
 596.67 Series A Common Units - Granted     —
 —
 —
 —
 —
 —
 —
 —%
 4,000,000 Series A Preferred Units in TransTrade Holdings LLC - Purchased     —
 —
 —
 —
 —
 —
 —
 —%
 5,200,000 Series B Preferred Units in TransTrade Holding LLC - Purchased     —
 —
 —
 —
 —
 —
 —
 —%
First Star Aviation, LLC (6)    Airlines               

 10,104,401 Common Units     —
 (3,767) —
 2,413
 87
 (2,500) —
 —%
First Star Speir Aviation Limited (6)    Airlines               

 First Lien Term Loan, 9% cash due 12/15/2020     41,395
 —
 647
 54,214
 1,846
 (14,665) 41,395
 4.0%
 100% equity interest     —
 —
 —
 2,839
 —
 (98) 2,741
 0.3%
First Star Bermuda Aviation Limited (6)    Airlines               

 First Lien Term Loan, 9% cash 3% PIK due 8/19/2018     11,868
 —
 267
 11,851
 58
 (41) 11,868
 1.2%
 100% equity interest     —
 —
 —
 5,729
 (130) (605) 4,994
 0.5%
 Eagle Hospital Physicians, LLC    Healthcare services               

 First Lien Term Loan A, 8% PIK due 4/30/2017     14,175
 —
 286
 13,875
 300
 —
 14,175
 1.4%
 First Lien Term Loan B, 8.1% PIK due 4/30/2017     3,970
 —
 81
 3,887
 83
 —
 3,970
 0.4%
 First Lien Revolver, 8% cash due 4/30/2017     1,913
 —
 43
 1,913
 19
 (19) 1,913
 0.2%
 4,100,000 Class A Common Units     —
 —
 —
 7,421
 —
 (7,188) 233
 —%
Senior Loan Fund JV I, LLC (5)    Multi-sector holdings               

 Subordinated Note, LIBOR+8% cash due 5/2/2021     —
 (19,857) 2,859
 129,004
 16,546
 (145,550) —
 —%
 Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC 6.76%   101,030
 —
 171
 —
 101,030
 —
 101,030
 9.8%
 Class B Mezzanine Secured Deferrable Fixed Rate Notes due 2036 in SLF Repack Issuer 2016 LLC     24,756
 —
 92
 —
 24,756
 —
 24,756
 2.4%
 87.5% equity interest     —
 —
 700
 13,708
 150
 —
 13,858
 1.3%

Express Group Holdings LLC (7)    Oil & gas equipment services               

 First Lien Term Loan, PRIME+6% (1% floor) cash due 9/3/2019 10.75%   $12,506
 $—
 $—
 $1,193
 $—
 $(1,193) $—
 —%
 First Lien Revolver, PRIME+3.5% (3.5% floor) cash due 3/4/2019 7.00%   6,090
 —
 —
 6,090
 —
 (5,211) 879
 0.1%
 Last-In Revolver, PRIME+3.5% (3.5% floor) cash due 10/7/2016 7.00%   3,000
 —
 53
 3,000
 —
 —
 3,000
 0.3%
 14,033,391 Series B Preferred Units     —
 —
 —
 —
 —
 —
 —
 —%
 280,668 Series A Preferred Units     —
 —
 —
 —
 —
 —
 —
 —%
 1,456,344 Common Units     —
 —
 —
 —
 —
 —
 —
 —%
 Ameritox Ltd.    Healthcare services               

 First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 6.00%   31,498
 —
 734
 31,039
 459
 —
 31,498
 3.1%
 14,090,126.4 Class A Preferred A Units in Ameritox Holdings II, LLC     —
 —
 —
 15,437
 720
 —
 16,157
 1.6%
 1,602,260.83 Class B Preferred A Units in Ameritox Holdings II, LLC     —
 —
 —
 1,755
 82
 —
 1,837
 0.2%
 4,930.03 Common Units in Ameritox Holdings II, LLC     —
 —
 —
 13,113
 —
 (6,925) 6,188
 0.6%
Total Control Investments     $317,990
 $(23,624) $7,776
 $388,267
 $150,594
 $(186,700) $352,161
 34.2%
Affiliate Investments                   

Caregiver Services, Inc.    Healthcare services               

 Second Lien Term Loan, 10% cash 2% PIK due 6/30/2019     9,573
 —
 293
 9,549
 49
 (26) 9,572
 0.9%
 1,080,399 shares of Series A Preferred Stock, 10%     —
 —
 —
 4,079
 —
 (117) 3,962
 0.4%
AmBath/ReBath Holdings, Inc.    Home improvement retail               

 First Lien Term Loan B, 12.5% cash 2.5% PIK due 8/31/2017     24,015
 —
 1,398
 24,268
 416
 (548) 24,136
 2.3%
 4,668,788 shares of Preferred Stock     —
 —
 —
 1,873
 —
 (82) 1,791
 0.2%
Total Affiliate Investments     $33,588
 $—
 $1,691
 $39,769
 $465
 $(773) $39,461
 3.8%
Total Control & Affiliate Investments     $351,578
 $(23,624) $9,467
 $428,036
 $151,059
 $(187,473) $391,622
 38.0%

This schedule should be read in connection with the Company's Consolidated Financial Statements, including the Consolidated Schedules of Investments and Notes to the Consolidated Financial Statements.
______________________
(1)The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments.
(2)Represents the total amount of interest, fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and accrued PIK interest (net of non-accrual amounts), and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.
(4)Gross reductions include decreases in the cost basis of investment resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
(5)Together with Kemper, the Company co-invests through SLF JV I. SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).
(6)First Star Aviation, LLC, First Star Bermuda Aviation Limited and First Star Speir Aviation Limited are wholly-owned holding companies formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding companies to be investment companies under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding companies and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding companies are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(7)This investment was on cash non-accrual status as of December 31, 2016.

(1)The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments as of December 31, 2019 included in the Company's quarterly report on Form 10-Q for the quarter ended December 31, 2019.
(2)Represents the total amount of interest (net of non-accrual amounts), fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest (net of non-accrual amounts) and the exchange of one or more existing securities for one or more new securities.
71

Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.
(4)Gross reductions include decreases in the cost basis of investment resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
(5)First Star Speir Aviation Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding company to be an investment company under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the holding company is disregarded for accounting purposes since the economic substance of this instrument is an equity investment in the operating entity.
(6)Together with Kemper, the Company co-invests through SLF JV I. SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).




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Item 2.     Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in connection with our Consolidated Financial Statements and the notes thereto included elsewhere in this quarterly report on Form 10-Q.
Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q may include statements as to:

•our future operating results and distribution projections;
•the ability of Oaktree Capital Management, L.P.,Fund Advisors, LLC, or Oaktree, or our Investment Adviser, to find lower-risk investments to reposition our portfolio and to implement our Investment Adviser’sOaktree's future plans with respect to our business;
•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 achieve their objectives;
•our expected financings and investments;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; and
•the cost or potential outcome of any litigation to which we may be a party.
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 quarterly report on Form 10-Q 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 “Item“Item 1A. Risk Factors”Factors” in our annual report on Form 10-K for the year ended September 30, 20172020 and elsewhere in this quarterly report on Form 10-Q.
Other factors that could cause actual results to differ materially include:
•changes or potential disruptions in our operations, the economy, financial markets andor political environment;
•risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or natural disasters;the COVID-19 pandemic;
•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 companiesBusiness Development Companies or regulated investment companies, or RICs;
•general considerations associated with the COVID-19 pandemic;
•the ability of the parties to consummate the Mergers (as defined below) on the expected timeline, or at all;
•the ability to realize the anticipated benefits of the Mergers;
•the effects of disruption on our business from the proposed Mergers;
•the combined company’s plans, expectations, objectives and intentions, as a result of the Mergers;
•any potential termination of the Merger Agreement;
•the actions of our stockholders or the stockholders of Oaktree Strategic Income Corporation, or OCSI, with respect to the proposals submitted for their approval in connection with the Mergers; and
•other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.
We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report, 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 Securities and Exchange Commission, or the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Except as otherwise specified, references to the “Company,” “we,” “us,” and “our,” refer to Oaktree Specialty Lending Corporation and its consolidated subsidiaries.
All dollar amounts in tables are in thousands, except share and per share amounts percentages and as otherwise indicated.
Business Overview
We are a specialty finance company dedicatedthat looks to providingprovide customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. We are a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development companyBusiness Development Company under the Investment Company Act
73

of 1940, as amended, or the 1940Investment Company Act. In addition, we have qualified and elected to be treated as a RIC under the Internal Revenue Code of 1986, as amended, or the Code for tax purposes.
As of October 17, 2017, weWe are externally managed by Oaktree a subsidiary of Oaktree Capital Group, LLC, or “OCG”, a global investment manager specializing in alternative investments, pursuant to an investment advisory agreement, between us and the Investment Adviser,as amended from time to time, or the New Investment Advisory Agreement. Oaktree Fund Administration, LLC, or the Oaktree Administrator, or OFA, a subsidiaryan affiliate of our Investment Adviser, alsoOaktree, provides certain administrative and other services necessary for us to operate. Prioroperate pursuant to October 17, 2017,


we were externally managed and advised by Fifth Street Management LLC, or FSMan administration agreement, as amended from time to time, or the Former Adviser, and we were named Fifth Street Finance Corp.Administration Agreement.
We generally lend to and invest in small and mid-sized companies, primarily in connection with investments by private equity sponsors. Our investment objective is to maximize our portfolio’s total return by generatinggenerate current income from our debt investments, and to a lesser extent, capital appreciation from ourby providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity investments.
Our Investment Adviser intends to reposition our portfolio into investments that are better aligned with our Investment Adviser's overall approach to credit investing and that it believes have the potentialcertain equity co-investments. We may also seek to generate attractive returnscapital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions. Our portfolio may also include certain structured finance and other non-traditional structures. We invest in companies that typically possess resilient business models with strong underlying fundamentals. We intend to deploy capital across market cycles. We expectcredit and economic cycles with a focus on long-term results, which we believe will enable us to build lasting partnerships with financial sponsors and management teams, and we may seek to opportunistically take advantage of dislocations in the financial markets and other situations that our Investment Adviser will focusmay benefit from Oaktree’s credit and structuring expertise, including during the COVID-19 pandemic. Sponsors may include financial sponsors, such as an institutional investor or a private equity firm, or a strategic entity seeking to invest in a portfolio company. Oaktree is generally focused on middle-market companies, which we define as companies with enterprise values of between $100 million and $750 million. Going forward, we expect our portfolio to include a mix of approximately 40% to 60% of first and 35% to 55% of second lien loans, including asset backed loans, unitranche loans, mezzanine loans, approximately 5% to 15% of unsecured loans and 0% to 10% of preferred equity and certain equity co-investments. Our portfolio may also include certain structured finance and other non-traditional structures. We expect to target investments of $30 million to $50 million, on average, although we may invest more or less in certain portfolio companies. We generally invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “high yield” and “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal.
Since becomingOaktree intends to continue to rotate our investment adviser,portfolio into investments that are better aligned with Oaktree's overall approach to credit investing and that it believes have the potential to generate attractive returns across market cycles (which we call "core investments"). Oaktree has performed a comprehensive review of our portfolio and categorized our portfolio into core investments, non-core performing investments and underperforming investments. Certain additional information on such categorization and our portfolio composition will beis included in our investor presentation to be filedpresentations that we file with the SEC.
During Since an Oaktree affiliate became our investment adviser in October 2017, Oaktree and its affiliates have reduced the fiscal year ending September 30, 2018,investments identified as non-core by over $700 million at fair value. Over time, Oaktree also intends to rotate us out of the remaining non-core investments, which were approximately $80$125 million at fair value of investments with spreads over LIBOR of less than 4.0% and, over time, to reduce our exposure to smaller investments of less than $10 million. Oaktree will seek to redeploy capital from realization of existing investments into Oaktree-originated investments with higher yields.
During the three months ended December 31, 2017, the integration of our operational infrastructure, including accounting, valuation, compliance and information technology processes and systems, into the Oaktree platform was completed, and we believe that we will realize synergies and cost savings, including from trade settlement and internal audit functions, as a result of this integration.
Business Environment and Developments
The opportunity set in credit is still dominated by the search for yield as central banks in Japan and Europe continue their accommodative monetary policies. This glut of capital is resulting in significant inflows into sub-investment grade credit from investors, including private equity sponsors, seeking higher spreads as investment grade and highly rated sub-investment grade credit trade at close-to-historically tight levels.
During the quarter ended December 31, 2017, the spread on the BAML High Yield Single B Index ranged between 3.34% and 3.99% and was 3.69% as of December 31, 2017. In addition,2020. Oaktree periodically reviews designations of investments as core and non-core and may change such designations over time.
On October 28, 2020, we entered into an Agreement and Plan of Merger, or the Merger Agreement, with OCSI, Lion Merger Sub, Inc., a Delaware corporation and our wholly-owned subsidiary, or the Merger Sub, and, solely for the limited purposes set forth therein, Oaktree. The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into OCSI, with OCSI continuing as the surviving company and as our wholly-owned subsidiary, or the Merger, and, immediately thereafter, OCSI will merge with and into us, with us continuing as the surviving company, or together with the Merger, the Mergers. Consummation of the Mergers, which is currently anticipated to occur during the quarter ended December 31, 2017,first half of calendar year 2021, is subject to certain closing conditions, including requisite approvals of our and OCSI’s stockholders and certain other closing conditions. For more information about the Credit Suisse Leveraged Loan Index spread ranged between 3.70%Mergers, see Note 15 to our consolidated financial statements included in this quarterly report on Form 10-Q and 3.88%our final joint proxy statement/prospectus filed with the SEC on January 21, 2021.
Business Environment and was 3.75% as of December 31, 2017. The weighted average annual yield on our portfolio of 9.0% as of December 31, 2017 compares favorably in the current environment.Developments

We believe that the fundamentalsCOVID-19 pandemic may have lasting effects on the U.S. and global financial markets and may cause further economic uncertainties or deterioration in the performance of middle-market companies remain strong, which drove the highest lending levelmiddle market in three years. Inthe United States and worldwide. While the initial market disruptions have somewhat eased, the global economy continues to experience economic uncertainty, particularly due to difficulties in the reopening of certain economies, or portions thereof, and delays in vaccine rollout. This uncertainty can impact the overall supply and demand of the market through changing spreads, deal terms and structures, and equity purchase price multiples.

Despite this environment,economic uncertainty, we believe attractive risk-adjusted returns can be achieved by investingmaking loans to companies in companies that cannot efficiently access traditional debt capital markets. Wethe middle market. Given the breadth of the investment platform of Oaktree and its affiliates, we believe that the Company haswe have the resources and experience to source, diligence and structure investments in these companies and isare well placed to generate attractive returns for investors.

New Investment Advisory Agreement with Oaktree
74

Upon the closingWe have proactively taken a number of actions to evaluate and support our portfolio companies in light of the transactions, or the Transaction, contemplated by the Asset Purchase Agreement, or the Purchase Agreement, byCOVID-19 pandemic, including outreach to a variety of management teams and among Oaktree, our Former Adviser and, for certain limited purposes, Fifth Street Asset Management Inc., or FSAM, the indirect, partial ownersponsors. We have been in close contact with many of our Former Adviser,portfolio companies to understand their liquidity and Fifth Street Holdings L.P., the direct, partial ownersolvency positions. We believe that these efforts to closely monitor and identify vulnerable investments will allow us to address potential problems early and provide constructive solutions to our portfolio companies.

As of December 31, 2020, 88.8% of our Former Adviser, on October 17, 2017, Oaktree became thedebt investment adviser to each of Oaktree Strategic Income Corporation, or OCSI,portfolio (at fair value) and us, and Oaktree paid gross cash consideration of $320 million to our Former Adviser. The closing of the Transaction resulted in an assignment for purposes of the 1940 Act89.6% of our debt investment advisory agreement with FSM, or the Former Investment Advisory Agreement, and, as a result, its immediate termination. The material terms of the services to be provided under the New Investment Advisory Agreement, other than the fee structure, are substantially the same as the Former Investment Advisory Agreement, except that services are provided by Oaktree. See “Note 11. Related Party Transactions-New Investment Advisory Agreement” and “-Administrative Services” in the notesportfolio (at cost) bore interest at floating rates indexed to the accompanying Consolidated Financial Statements.


In order to ensure thatLIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly or monthly at the Transaction complied with Section 15(f) of the 1940 Act, Oaktree and our Former Adviser agreed to certain conditions. First, for a period of three years after the closing of the Transaction, at least 75% of the members of our Board of Directors must not be interested persons of Oaktree or our Former Adviser. Second, an “unfair burden” must not be imposed on us asborrower’s option. As a result of the closingCOVID-19 pandemic and the related decision of the TransactionU.S. Federal Reserve to reduce certain interest rates, LIBOR decreased beginning in March 2020. A prolonged reduction in interest rates will result in a decrease in our total investment income and could result in a decrease in our net investment income to the extent the decreases are not offset by an increase in the spread on our floating rate investments, a decrease in our interest expense or any express or implied terms, conditions or understandings applicable thereto duringa reduction of our incentive fee on income. In July 2017, the two-year period after the closinghead of the Transaction.United Kingdom Financial Conduct Authority, or the FCA, announced the desire to phase out the use of LIBOR by the end of 2021. However, the FCA recently announced that most US Dollar LIBOR would continue to be published through June 30, 2023. In anticipation of the cessation of LIBOR, we may need to renegotiate any credit agreements extending beyond the applicable phase out date with our prospective portfolio companies that utilize LIBOR as a factor in determining the interest rate. Certain of the loan agreements with our portfolio companies have included fallback language in the event that LIBOR becomes unavailable. This language generally provides that the administrative agent may identify a replacement reference rate, typically with the consent of (or prior consultation with) the borrower. In certain cases, the administrative agent will be required to obtain the consent of either a majority of the lenders under the facility, or the consent of each lender, prior to identifying a replacement reference rate. Certain of the loan agreements with our portfolio companies do not include any fallback language providing a mechanism for the parties to negotiate a new reference interest rate and will instead revert to the base rate in the event LIBOR ceases to exist.

Critical Accounting Policies

Basis of Presentation
Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the Consolidated Financial Statements have been made. All intercompany balances and transactions have been eliminated. We are an investment company following the accounting and reporting guidance in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 946, Financial Services-Investment Companies, or ASC 946.
Investment Valuation
We report our investments for which current market values are not readily available at fair value. We value our investments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820, which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices derived from such prices over entity-specific inputs. Where observable prices or inputs are not available or reliable, valuation techniques are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments’ complexity.
Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follow:follows:
 
•Level 1 — Unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.
•Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data at the measurement date for substantially the full term of the assets or liabilities.
•Level 3 — Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
If inputs used to measure fair value fall into different levels of the fair value hierarchy, an investment's level is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. This
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includes investment securities that are valued using “bid”"bid" and “ask”"ask" prices obtained from independent third party pricing services or directly from brokers. These investments may be classified as Level 3 because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities or may require adjustments for investment-specific factors or restrictions.
Financial instruments with readily available quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. As such, our Investment AdviserOaktree obtains and analyzes readily available market quotations provided by independent pricing servicesvendors and brokers for all of our first lien and second lien, or senior secured, debt investments for which quotations are available. In determining the fair value of a particular investment, pricing servicesvendors and brokers use observable market information, including both binding and non-binding indicative quotations.
Our Investment AdviserWe seek to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If we are unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within our set threshold, we seek to obtain a quote directly from a broker making a market for the asset. Oaktree evaluates the quotations provided by independent pricing servicesvendors and company specific data that could affect the credit quality and/or fair valuebrokers based on available market information, including trading activity of the investment. Investments for which market quotationssubject or similar securities, or by performing a comparable security analysis to ensure that fair values are readily available may be valued at such market quotations.reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In orderaddition to validate market quotations, our Investment Adviser looks at a numberongoing monitoring and back-testing, Oaktree performs due diligence procedures over pricing vendors to understand their methodology and controls to support their use in the valuation process. Generally, we do not adjust any of factors to determine ifthe prices received from these sources.
If the quotations obtained from pricing vendors or brokers are representative of fair value, including the source and nature of the quotations. Our Investment Adviser doesdetermined to not adjust the prices unless it has a reason to believe market quotationsbe reliable or are not reflective of the fair value of an investment. Examples of events that would cause market quotations to not reflect fair value could include cases when a security trades infrequently causing a quoted purchase or sale price to become stale or in the event of a “fire sale” by a distressed seller. In these instances,readily available, we value such investments by using the valuation procedure that we use with respect to assets for which market quotations are not readily available (as discussed below).


If the quotation provided by the pricing service is based on only one or two market sources, we perform additional procedures to corroborate such information, which may include the market yield technique discussed below and a quantitative and qualitative assessmentany of the credit quality and market trends affecting the portfolio company.
We perform detailed valuations of our debt and equity investments for which market quotations are not readily available or are deemed not to represent fair value of the investments. We typically use three different valuation techniques. The first valuation technique is the transaction precedent technique, which utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable. The second valuation technique is an analysis of the enterprise value, or EV, of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that we are deemed to control under the 1940Investment Company Act. To estimate the EV of a portfolio company, the Investment AdviserOaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company and competitive dynamics in the company’s industry. The Investment AdviserOaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company: (i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase price multiplesprices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company’s assets and (vii) offers from third parties to buy the portfolio company. We may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and we consider the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, we depend on primary market data, including newly funded transactions and industry-specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.
We estimate the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk-free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.
Our Board of Directors undertakes a multi-step valuation process each quarter in connection with determining the fair value of our investments:
•The quarterly valuation process begins with each portfolio company or investment being initially valued by our Investment Adviser’sOaktree’s valuation team in conjunction with the Investment Adviser’sOaktree’s portfolio management team and investment professionals responsible for each portfolio investment;
•Preliminary valuations are then reviewed and discussed with management of our Investment Adviser;Oaktree;
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•Separately, independent valuation firms engaged by our Board of Directors prepare valuations of our investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to us and provide such reports to our Investment AdviserOaktree and the Audit Committee of our Board of Directors;
The Investment Adviser•Oaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;
•The Audit Committee reviews the preliminary valuations with our Investment Adviser,Oaktree, and our Investment AdviserOaktree responds and supplements the preliminary valuations to reflect any discussions between our Investment AdviserOaktree and the Audit Committee;
•The Audit Committee makes a recommendation to our full Board of Directors regarding the fair value of the investments in our portfolio; and
•Our Board of Directors discusses valuations and determines the fair value of each investment in our portfolio.
The fair value of our investments as of December 31, 20172020 and September 30, 20172020 was determined in good faith by our Board of Directors. Our Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the


determination of the fair value of a portion of our portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that assistance. As of December 31, 2017, 69.2%2020, 94.3% of our portfolio at fair value was valued either based on market quotations, the transactions precedent approach or corroborated by independent valuation firms. However, our Board of Directors is responsible for the ultimate valuation of the portfolio investments at fair value as determined in good faith pursuant to our valuation policy and a consistently applied valuation process.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.
As of December 31, 20172020 and September 30, 2017,2020, approximately 94.7%95.5% and 95.4%95.9%, respectively, of our total assets represented investments at fair value.
Revenue Recognition
Interest and Dividend Income
Interest income, adjusted for accretion of original issue discount, or OID, is recorded on thean accrual basis to the extent that such amounts are expected to be collected. We stop accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash, and the portfolio company, in management’s judgment, is likely to continue timely payment of its remaining obligations. As of December 31, 2017,2020, there were eight investmentswas one investment on which we had stopped accruing cash and/or payment in kind, or PIK, interest or OID income.
In connection with our investment in a portfolio company, we sometimes receive nominal cost equity that is valued as part of the negotiation process with the portfolio company. When we receive nominal cost equity, we allocate our cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.
We generally recognize dividend income on the ex-dividend date. Distributions received from equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from such equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.
Fee Income
We receive a variety of fees in the ordinary course of business, including servicing, advisory, amendment, structuring and prepayment fees, which are classified as fee income and recognized as they are earned.
We have also structured exit fees across certain of our portfolio investments to be received upon the future exit of those investments. Exit fees are payable upon the exit of a debt security. These fees are to be paid to us upon the sooner to occur of (i) a sale of the borrower or substantially all of the assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs. The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments. A percentage of these fees is included in net investment income over the life of the loan. As of December 31, 2017, we had a receivable for $1.5 million in aggregate exit fees of one portfolio investment upon the future exit of this investment.
PIK Interest Income
Our investments in debt securities may contain PIK interest provisions. PIK interest, which typically represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We generally cease accruing PIK interest if there is insufficient value to support the accrual or if we do not expect the portfolio company to be able to pay all principal and interest due. Our decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; our assessment of the portfolio company's business development success; information obtained by us in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. Based on this and other information, we determine whether to cease accruing PIK interest on a loan or debt security when it is determined that PIK interest is no longer collectible. Our determination to cease accruing PIK interest on a loan or debt security is generally made well before our full write-down of sucha loan or debt security. In
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addition, if it is subsequently determined that we will not be able to collect any previously accrued PIK interest, the fair value of ourthe loans or debt securities would be reduced by the amount of such previously accrued, but uncollectible, PIK interest. The accrual of PIK interest on our debt investments increases the recorded cost bases of these investments in our Consolidated Financial Statements and, as a result, increases the cost bases of these investmentsincluding for purposes of computing the capital gains incentive fee payable by us to our Investment Adviser.


Oaktree. To maintain our status as a RIC, certain income from PIK interest may be required to be distributed to our stockholders, as distributions, even though we have not yet collected the cash and may never do so. Accumulated PIK interest was $70.2 million,
Fee Income
Oaktree or 5.0%,its affiliates may provide financial advisory services to portfolio companies and, in return, we may receive fees for capital structuring services. These fees are generally nonrecurring and are recognized by us upon the investment closing date. We may also receive additional fees in the ordinary course of business, including servicing, amendment and prepayment fees, which are classified as fee income and recognized as they are earned or the fair value of our portfolio of investments as of December 31, 2017 and $69.4 million, or 4.5%, of fair valueservices are rendered.
We have also structured exit fees across certain of our portfolio investments to be received upon the future exit of those investments. These fees are typically paid to us upon the earliest to occur of (i) a sale of the borrower or substantially all of the assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs. The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments. These fees are included in net investment income over the life of the loan.
Dividend Income
We generally recognize dividend income on the ex-dividend date for public securities and the record date for private equity investments. Distributions received from private equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of September 30, 2017. The net increases in loan balancescapital. Generally, we will not record distributions from private equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a resultreturn of contractual PIK arrangementscapital are separately identifiedrecorded as a reduction in our Consolidated Statementsthe cost basis of Cash Flows.the investment.
Portfolio Composition
Our investments principally consist of loans, purchasedcommon and preferred equity investments and equity grantswarrants in privately-held companies and SLFSenior Loan Fund JV I, LLC, or SLF JV I.I, a joint venture through which we and Trinity Universal Insurance Company, a subsidiary of Kemper Corporation, or Kemper, co-invest in senior secured loans of middle-market companies and other corporate debt securities. Our loans are typically secured by a first, second or subordinated lien on the assets of the portfolio company and generally have terms of up to ten years (but an expected average life of between three and four years). We believe the environment for direct lending remains active, and, as a result, a number of our portfolio companies were able to refinance and repay their loans during the three months ended December 31, 2017.
During the three months ended December 31, 2017,2020, we originated $183.0$286.3 million of investment commitments in 1314 new and oneseven existing portfolio companies and funded $200.2$241.5 million of investments.
During the three months ended December 31, 2017,2020, we received $196.4$160.7 million in connection with the full repayments andof proceeds from prepayments, exits, of nine of our investments and an additional $88.4 million in connection with other paydowns and sales of investments.and exited 12 portfolio companies.
A summary of the composition of our investment portfolio at cost and fair value as a percentage of total investments is shown in the following tables:
December 31, 2020September 30, 2020
Cost:
Senior secured debt83.31 %80.58 %
Debt investment in SLF JV I5.48 5.77 
Common equity and warrants3.32 3.69 
Subordinated debt2.83 4.64 
LLC equity interests of SLF JV I2.81 2.95 
Preferred equity2.25 2.37 
Total100.00 %100.00 %
 
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  December 31, 2017 September 30, 2017
Cost:    
Senior secured debt 72.44% 74.73%
Subordinated debt 7.70
 6.42
Debt investments in SLF JV I 7.65
 7.32
LLC equity interests of SLF JV I 0.96
 0.92
Purchased equity 6.86
 6.40
Equity grants 2.91
 2.78
Limited partnership interests 1.48
 1.43
Total 100.00% 100.00%
December 31, 2020September 30, 2020
Fair value:
Senior secured debt85.70 %84.06 %
Debt investment in SLF JV I5.62 6.12 
Subordinated debt3.08 4.17 
Common equity and warrants2.15 2.40 
Preferred equity1.74 1.90 
LLC equity interests of SLF JV I1.71 1.35 
Total100.00 %100.00 %

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  December 31, 2017 September 30, 2017
Fair value:    
Senior secured debt 75.84% 78.01%
Subordinated debt 6.95
 6.06
Debt investments in SLF JV I 9.06
 8.35
LLC equity interests of SLF JV I 0.34
 0.36
Purchased equity 5.49
 5.10
Equity grants 0.50
 0.45
Limited partnership interests 1.82
 1.67
Total 100.00% 100.00%



The industry composition of our portfolio at cost and fair value as a percentage of total investments was as follows:
December 31, 2020September 30, 2020
Cost:
Application Software12.51 %9.71 %
Multi-Sector Holdings (1)8.38 8.87 
Data Processing & Outsourced Services7.50 6.57 
Pharmaceuticals6.35 5.96 
Biotechnology6.17 5.36 
Health Care Services4.20 4.26 
Specialized Finance3.98 3.11 
Personal Products3.13 3.00 
Movies & Entertainment2.86 2.68 
Property & Casualty Insurance2.73 2.88 
Integrated Telecommunication Services2.53 2.67 
Real Estate Services2.22 2.34 
Specialty Chemicals2.20 2.68 
Fertilizers & Agricultural Chemicals1.96 2.02 
Aerospace & Defense1.94 1.68 
Auto Parts & Equipment1.91 2.02 
Internet Services & Infrastructure1.91 1.72 
Oil & Gas Refining & Marketing1.77 1.87 
Managed Health Care1.56 1.65 
Electronic Components1.52 1.53 
Oil & Gas Storage & Transportation1.48 1.59 
Research & Consulting Services1.41 1.49 
Airport Services1.27 1.34 
Health Care Supplies1.24 1.30 
Health Care Technology1.22 1.29 
Construction & Engineering1.22 0.80 
Independent Power Producers & Energy Traders1.21 1.29 
Diversified Support Services1.07 1.13 
Industrial Machinery1.06 0.90 
Insurance Brokers0.96 1.05 
Systems Software0.96 1.24 
Electrical Components & Equipment0.91 1.25 
Hotels, Resorts & Cruise Lines0.87 0.92 
IT Consulting & Other Services0.85 0.89 
Internet & Direct Marketing Retail0.84 0.89 
Airlines0.81 0.63 
Advertising0.77 0.82 
Health Care Distributors0.73 0.77 
Apparel, Accessories & Luxury Goods0.72 0.82 
Restaurants0.59 0.61 
Commercial Printing0.45 0.47 
Education Services0.42 1.37 
Food Retail0.39 0.41 
Diversified Real Estate Activities0.36 0.92 
Trading Companies & Distributors0.33 0.61 
Oil & Gas Equipment & Services0.18 0.20 
Construction Materials0.12 0.13 
Leisure Facilities0.11 0.11 
Specialty Stores0.07 0.08 
Thrifts & Mortgage Finance0.04 0.06 
Other Diversified Financial Services0.01 0.01 
General Merchandise Stores— 1.15 
Metal & Glass Containers— 0.68 
Health Care Facilities— 0.19 
Specialized REITs— 0.01 
Total100.00 %100.00 %
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  December 31, 2017 September 30, 2017
Cost:    
 Healthcare services 12.48% 11.98%
 Internet software & services 11.95
 15.37
 Multi-sector holdings (1) 10.32
 9.87
 Healthcare equipment 5.94
 5.67
 Data processing & outsourced services 4.81
 4.42
 Environmental & facilities services 4.15
 2.84
 Construction & engineering 4.10
 3.86
 Pharmaceuticals 3.63
 3.46
 Advertising 3.32
 4.82
 Education services 3.09
 2.85
 Airlines 3.03
 3.28
 Specialty stores 2.77
 3.33
 Integrated telecommunication services 2.45
 1.75
 Technology distributors 2.04
 —
 Leisure facilities 1.96
 1.76
 Oil & gas refining & marketing 1.95
 —
 Air freight and logistics 1.94
 1.85
 Housewares & specialties 1.78
 1.70
 Oil & gas equipment services 1.64
 1.57
 Consumer electronics 1.48
 1.32
 Home improvement retail 1.35
 1.31
 Auto parts & equipment 1.26
 1.21
 Oil & gas exploration & production 1.07
 —
 Research & consulting services 1.02
 2.16
 Diversified support services 0.99
 1.29
 Healthcare technology 0.86
 —
 Security & alarm services 0.79
 0.75
 Real estate services 0.77
 0.74
 Other diversified financial services 0.68
 0.69
 Casinos & gaming 0.67
 1.33
 Commodity chemicals 0.65
 —
 Healthcare distributors 0.53
 —
 Precious metals & minerals 0.44
 0.42
 Trucking 0.42
 0.40
 Thrift & mortgage finance 0.41
 0.41
 Distributors 0.39
 0.85
 Industrial machinery 0.39
 0.86
 Commercial printing 0.36
 0.34
 Apparel, accessories & luxury goods 0.31
 0.29
 Wireless telecommunication services 0.30
 —
 Restaurants 0.29
 0.28
 Application software 0.29
 2.93
 General merchandise stores 0.25
 —
 Food retail 0.25
 0.24
 IT consulting & other services 0.24
 0.23
 Specialized finance 0.19
 0.18
 Human resources & employment services —
 —
 Hypermarkets & super centers —
 0.68
 Computer & electronics retail —
 0.36
 Multi-utilities —
 0.35
Total 100.00% 100.00%


  December 31, 2017 September 30, 2017
Fair value:    
 Internet software & services 13.71% 17.20%
 Multi-sector holdings (1) 11.58
 10.67
 Healthcare services 5.41
 6.09
 Data processing & outsourced services 5.04
 4.43
 Environmental & facilities services 4.94
 3.29
 Pharmaceuticals 4.45
 4.07
 Airlines 4.14
 3.86
 Healthcare equipment 4.00
 4.73
 Construction & engineering 3.61
 3.26
 Advertising 3.25
 5.43
 Specialty stores 3.22
 3.69
 Education services 2.52
 2.48
 Integrated telecommunication services 2.51
 2.03
 Leisure facilities 2.45
 2.11
 Technology distributors 2.42
 —
 Oil & gas refining & marketing 2.33
 —
 Housewares & specialties 2.11
 1.93
 Oil & gas equipment services 2.02
 1.84
 Consumer electronics 1.83
 1.56
 Home improvement retail 1.74
 1.61
 Auto parts & equipment 1.53
 1.41
 Research & consulting services 1.33
 2.50
 Oil & gas exploration & production 1.26
 —
 Diversified support services 1.14
 1.46
 Healthcare technology 1.03
 —
 Security & alarm services 0.92
 0.85
 Real estate services 0.90
 0.84
 Casinos & gaming 0.81
 1.52
 Commodity chemicals 0.77
 —
 Other diversified financial services 0.77
 0.76
 Healthcare distributors 0.64
 —
 Precious metals & minerals 0.53
 0.48
 Trucking 0.50
 0.46
 Application software 0.46
 3.50
 Distributors 0.46
 0.96
 Industrial machinery 0.46
 0.97
 Commercial printing 0.43
 0.39
 Leisure products 0.42
 0.38
 Thrift & mortgage finance 0.40
 0.40
 Wireless telecommunication services 0.36
 —
 Restaurants 0.34
 0.32
 General Merchandise Stores 0.32
 —
 Food retail 0.30
 0.28
 IT consulting & other services 0.28
 0.25
 Specialized finance 0.23
 0.21
 Air freight and logistics 0.13
 0.12
 Human resources & employment services —
 —
 Hypermarkets & super centers —
 0.75
 Computer & electronics retail —
 0.42
 Multi-utilities —
 0.41
 Apparel, accessories & luxury goods —
 0.08
Total 100.00% 100.00%
December 31, 2020September 30, 2020
Fair value:
Application Software12.88 %10.21 %
Multi-Sector Holdings (1)7.54 7.74 
Data Processing & Outsourced Services7.14 6.33 
Pharmaceuticals6.91 6.55 
Biotechnology6.54 6.14 
Specialized Finance4.04 3.08 
Health Care Services3.64 3.81 
Personal Products3.27 3.24 
Movies & Entertainment3.00 2.77 
Property & Casualty Insurance2.81 2.97 
Integrated Telecommunication Services2.48 2.61 
Real Estate Services2.23 2.40 
Specialty Chemicals2.16 2.48 
Fertilizers & Agricultural Chemicals2.02 2.14 
Auto Parts & Equipment1.90 1.99 
Aerospace & Defense1.85 1.56 
Internet Services & Infrastructure1.83 1.69 
Oil & Gas Refining & Marketing1.73 1.90 
Electronic Components1.71 1.69 
Managed Health Care1.59 1.70 
Research & Consulting Services1.46 1.54 
Oil & Gas Storage & Transportation1.36 1.64 
Health Care Technology1.29 1.40 
Construction & Engineering1.28 0.86 
Health Care Supplies1.27 1.37 
Airport Services1.24 1.35 
Independent Power Producers & Energy Traders1.20 1.32 
Insurance Brokers1.10 1.15 
Diversified Support Services1.07 1.12 
Airlines1.03 0.83 
Hotels, Resorts & Cruise Lines1.00 1.09 
Systems Software0.99 1.30 
Electrical Components & Equipment0.95 1.30 
Internet & Direct Marketing Retail0.94 0.97 
Industrial Machinery0.91 0.74 
IT Consulting & Other Services0.83 0.88 
Advertising0.81 0.85 
Health Care Distributors0.73 0.78 
Restaurants0.60 0.50 
Diversified Real Estate Activities0.44 1.07 
Commercial Printing0.43 0.47 
Food Retail0.41 0.44 
Apparel, Accessories & Luxury Goods0.39 0.50 
Education Services0.39 0.45 
Trading Companies & Distributors0.33 0.64 
Oil & Gas Equipment & Services0.14 0.16 
Construction Materials0.13 0.13 
Thrifts & Mortgage Finance0.01 0.02 
Leisure Facilities— — 
General Merchandise Stores— 1.14 
Metal & Glass Containers— 0.75 
Health Care Facilities— 0.23 
Specialized REITs— 0.01 
Total100.00 %100.00 %
___________________
(1)This industry includes our investment in SLF JV I.

(1)This industry includes our investments in SLF JV I and certain limited partnership interests.

81

Loans and Debt Securities on Non-Accrual Status
As of each of December 31, 20172020 and September 30, 2017,2020, there were eightone and two investments, respectively, on which we had stopped accruing cash and/or PIK interest or OID income.
The percentages of our debt investments at cost and fair value by accrual status as of December 31, 20172020 and September 30, 20172020 were as follows:
 December 31, 2017 September 30, 2017 December 31, 2020September 30, 2020
 Cost % of Debt
Portfolio		 Fair
Value		 % of Debt
Portfolio		 Cost % of Debt
Portfolio		 Fair
Value		 % of Debt
Portfolio		 Cost% of Debt
Portfolio		Fair
Value		% of Debt
Portfolio		Cost% of Debt
Portfolio		Fair
Value		% of Debt
Portfolio
Accrual $1,258,056
 85.49% $1,258,658
 96.81% $1,344,535
 86.46% $1,357,794
 95.29%Accrual$1,609,920 99.96 %$1,616,023 99.97 %$1,500,364 98.79 %$1,483,284 99.89 %
PIK non-accrual (1) 12,661
 0.86
 —
 —
 10,227
 0.66
 379
 0.03
PIK non-accrual (1)— — — — 12,661 0.83 — — 
Cash non-accrual (2) 200,859
 13.65
 41,457
 3.19
 200,210
 12.88
 66,636
 4.68
Cash non-accrual (2)588 0.04 470 0.03 5,712 0.38 1,571 0.11 
Total $1,471,576
 100.00% $1,300,115
 100.00% $1,554,972
 100.00% $1,424,809
 100.00%Total$1,610,508 100.00 %$1,616,493 100.00 %$1,518,737 100.00 %$1,484,855 100.00 %
 ___________________
(1)PIK non-accrual status is inclusive of other non-cash income, where applicable.
(2)Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

(1)PIK non-accrual status is inclusive of other non-cash income, where applicable.
(2)Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

Senior Loan Fund JV I, LLC
In May 2014, we entered into a limited liability company, or LLC, agreement with Trinity Universal Insurance Company, a subsidiary of Kemper Corporation, or Kemper to form SLF JV I. On July 1, 2014, SLF JV I began investingWe co-invest in senior secured loans of middle-market companies and other corporate debt securities. We co-invest in these securities with Kemper through our investment in SLF JV I. SLF JV I is managed by a four person boardBoard of directors,Directors, two of whom are selected by us and two of whom are selected by Kemper. All portfolio decisions and investment decisions in respect of SLF JV I must be approved by the SLF JV I investment committee, which consists of one representative selected by us and one representative selected by Kemper (with approval from a representative of each required). Since we do not have a controlling financial interest in SLF JV I, we do not consolidate SLF JV I.
SLF JV I is capitalized pro rata with LLC equity interests as transactions are completed and may be capitalized with additional Class A mezzanine senior secured deferrable floating rate notes and Class B mezzanine senior secured deferrable fixed rate notes, or, collectively, the mezzaninesubordinated notes issued to us and Kemper by SLF Repack Issuer 2016 LLC, a wholly-owned subsidiary of SLF JV I. The mezzaninesubordinated notes mature on October 12, 2036.issued by SLF JV I are referred to as the SLF JV I Notes. The SLF JV I Notes are senior in right of payment to SLF JV I LLC equity interests and subordinated in right of payment to SLF JV I’s secured debt. As of December 31, 20172020 and September 30, 2017,2020, we and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I. As of December 31, 2017I and September 30, 2017, we and Kemper owned 87.5% and 12.5%, respectively, of the outstanding mezzanine notes.
SLF JV I's portfolio consisted of middle-market and other corporate debt securities of 34 and 32 "eligible portfolio companies" (as defined in the Section 2(a)(46) of the 1940 Act) as of December 31, 2017 and September 30, 2017, respectively. The portfolio companies in SLF JV I are in industries similar to those in which we may invest directly.Notes.
SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch, or, as amended, the Deutsche Bank I facility,Facility, which permitted up to $225.0 million and $250.0 million of borrowings (subject to borrowing base and other limitations) as of December 31, 2017 permitted up to $200.0 million of borrowings as of December 31, 20172020 and September 30, 2017. As of December 31, 2017, the stated maturity date of the Deutsche Bank I facility was July 1, 2023, and borrowings2020, respectively. Borrowings under the Deutsche Bank I facility bear interest atFacility are secured by all of the assets of SLF JV I Funding LLC, a rate equal to 3-month London Interbank Offered Rate, or LIBOR, plus 2.25% per annum duringspecial purpose financing subsidiary of SLF JV I. As of December 31, 2020, the reinvestment period and at a rate equal to LIBOR plus 2.40% per annum during the amortization period. The reinvestment period of the Deutsche Bank I Facility expires on July 7, 2018. There was $105.1 millionscheduled to expire June 28, 2021 and $71.5 million outstanding underthe maturity date for the Deutsche Bank I facility as of December 31, 2017 and September 30, 2017, respectively.
Prior to December 21, 2017, SLF JV I also had an additional $200.0 million senior credit facility with Deutsche Bank AG, New York Branch, or the Deutsche Bank II facility. Effective December 21, 2017, SLF JV I merged its financing subsidiaries and, in connection with such merger, terminated the Deutsche Bank II facility. As of September 30, 2017, there were $41.6 million of borrowings outstanding under the Deutsche Bank II facility.
Facility was June 29, 2026. As of December 31, 2017,2020, borrowings under the Deutsche Bank I Facility accrued interest at a rate equal to the 3-month LIBOR plus 1.85% per annum during the reinvestment period and 3-month LIBOR plus 2.00% per annum during the amortization period. Under the Deutsche Bank I Facility, $175.4 million and $167.9 million of borrowings were outstanding as of December 31, 2020 and September 30, 2020, respectively.
On December 9, 2020, the waiver period under the Deutsche Bank I Facility during which the facility are securedagent was restricted from revaluing certain collateral obligations where the change in valuation was caused by all ofor resulted from a business disruption due primarily to the assets of the special purpose financing vehicle of SLF JV I.COVID-19 pandemic was terminated.
As of December 31, 20172020 and September 30, 2017,2020, SLF JV I had total assets of $284.5$341.2 million and $276.8$313.5 million, respectively. SLF JV I's portfolio primarily consisted of senior secured loans to 56 portfolio companies as of each of December 31, 2020 and September 30, 2020. The portfolio companies in SLF JV I are in industries similar to those in which we may invest directly. As of December 31, 2017,2020, our investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $4.9$125.5 million in aggregate at fair value, and Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed rate notes of approximately $100.8 million and $27.5 million, at fair value, respectively.value. As of September 30, 2017,2020, our investment in SLF JV I consisted of LLC equity interests of $5.5 million, at fair value, and Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed rate


notes of $101.0 million and $27.6 million, at fair value, respectively. In connection with the restructuring of our and Kemper’s investment in SLF JV I Notes of $117.4 million in December 2016, we and Kemper exchanged our holdings of subordinated notes of SLF JV I for the mezzanine notes issued by SLF Repack Issuer 2016 LLC, a newly formed, wholly-owned, special purpose issuer subsidiary of SLF JV I, which are secured by SLF JV I’s LLC equity interests in the special purpose entities serving as borrowers under the Deutsche Bank I facility described above. The mezzanine notes are senior in right of payment to the SLF JV I LLC equity interests and any contributions we make to fund investments of SLF JV I through SLF Repack Issuer 2016 LLC.aggregate at fair value.
As of each of December 31, 20172020 and September 30, 2017,2020, we and Kemper had funded approximately $165.5 million to SLF JV I, of which $144.8 million was from us. As of December 31, 20172020 and September 30, 2017,2020, we and Kemper had the option to fund additional mezzanine notes,SLF JV I Notes, subject to additional equity funding to SLF JV I. As of each of December 31, 20172020 and September 30, 2017,2020, we had commitments to fund LLC equity interests in SLF JV I of $17.5 million, of which $1.3 million was unfunded.
82

Below is a summary of SLF JV I's portfolio, followed by a listing of the individual loans in SLF JV I's portfolio as of December 31, 20172020 and September 30, 2017:2020:

 December 31, 2017 September 30, 2017December 31, 2020September 30, 2020
Senior secured loans (1) $249,967 $245,063Senior secured loans (1)$313,978$307,579
Weighted average interest rate on senior secured loans (2) 7.81% 7.7%Weighted average interest rate on senior secured loans (2)5.65%5.44%
Number of borrowers in SLF JV I 34 32Number of borrowers in SLF JV I5656
Largest exposure to a single borrower (1) $18,251 $18,374Largest exposure to a single borrower (1)$9,879$10,487
Total of five largest loan exposures to borrowers (1) $77,991 $82,728Total of five largest loan exposures to borrowers (1)$46,981$49,097
__________________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans.loans at fair value.
83


SLF JV I Portfolio as of December 31, 20172020
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Access CIG, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.98 %Diversified Support Services$9,182 $9,149 $9,107 
ADB Companies, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %Construction & Engineering66676,500 6,533 (4)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 12/18/2025Construction & Engineering— (33)(27)(4)(5)
           Total ADB Companies, LLC6,467 6,506 
AdVenture Interactive, Corp.927 shares of common stockAdvertising1,390 1,416 (4)
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.65 %Electrical Components & Equipment6,011 5,894 5,974 (4)
Airbnb, Inc.First Lien Term Loan, LIBOR+7.50% cash due 4/17/20258.50 %Hotels, Resorts & Cruise Lines3,044 2,977 3,306 (4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.24 %Integrated Telecommunication Services4,631 4,447 4,623 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %Pharmaceuticals9,879 9,643 9,500 
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %Movies & Entertainment7,940 7,861 7,384 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/2025Personal Products2,821 2,247 1,890 (6)
Apptio, Inc.First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %Application Software4,615 4,554 4,529 (4)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025Application Software— (5)(7)(4)(5)
Total Apptio, Inc.4,549 4,522 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+5.75% cash due 12/24/20266.75 %Airport Services6,451 6,314 6,013 (4)
Blackhawk Network Holdings, Inc.First Lien Term Loan, LIBOR+3.00% cash due 6/15/20253.15 %Data Processing & Outsourced Services9,750 9,734 9,517 
Boxer Parent Company Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/2/20254.40 %Systems Software7,513 7,430 7,497 (4)
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.15 %Oil & Gas Equipment & Services7,311 7,288 6,405 
C5 Technology Holdings, LLC171 Common UnitsData Processing & Outsourced Services— — (4)
7,193,539.63 Preferred UnitsData Processing & Outsourced Services7,194 5,683 (4)
       Total C5 Technology Holdings, LLC7,194 5,683 
Carrols Restaurant Group, Inc.First Lien Term Loan, LIBOR+6.25% cash due 4/30/20267.25 %Restaurants3,980 3,792 3,965 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %Oil & Gas Refining & Marketing7,165 7,094 7,140 (4)
Clear Channel Outdoor Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 8/21/20263.71 %Advertising330 291 318 
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.50 %Alternative Carriers7,418 7,252 7,462 
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+3.75% cash due 7/9/20264.00 %Biotechnology5,925 5,881 5,890 
Dcert Buyer, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.15 %Internet Services & Infrastructure7,940 7,920 7,945 
Dealer Tire, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 12/12/20254.40 %Distributors940 902 937 
84

Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
AdVenture Interactive, Corp. (3) Advertising 927 Common Stock Shares 
 
   
 $1,088
 $656
Allied Universal Holdco LLC (3) Security & alarm services First Lien 7/28/2022 LIBOR+3.75% (1% floor) 5.44% $6,965
 7,019
 6,920
Ameritox Ltd. (3)(5) Healthcare services First Lien 4/11/2021 LIBOR+5% (1% floor) 3% PIK 6.69% 5,926
 5,638
 721
    301,913.06 Class B Preferred Units         302
 —
    928.96 Class A Common Units         5,474
 —
Total Ameritox Ltd.           5,926
 11,414
 721
 Asset International, Inc.  Research & Consulting Services First Lien 12/29/2024 LIBOR+4.5% (1% floor) 6.19% 7,000
 6,860
 6,860
BJ's Wholesale Club, Inc. Hypermarkets & super centers First Lien 1/26/2024 LIBOR+3.75% (1% floor) 4.95% 4,975
 4,981
 4,902
 Chloe Ox Parent LLC  Healthcare services First Lien 12/14/2024 LIBOR+5% (1% floor) 6.64% 10,000
 9,900
 10,037
Compuware Corporation Internet software & services First Lien B3 12/15/2021 LIBOR+4.25% (1% floor) 5.63% 11,126
 11,019
 11,213
DFT Intermediate LLC Specialized finance First Lien 3/1/2023 LIBOR+5.5% (1% floor) 6.85% 10,669
 10,433
 10,592


Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.50 %Application Software$7,463 $7,388 $7,411 
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20245.25 %Systems Software7,762 7,717 7,708 
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.75% cash due 10/2/20255.75 %Health Care Services2,231 2,188 2,221 
Guidehouse LLPSecond Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.15 %Research & Consulting Services6,000 5,980 6,000 (4)
Helios Software Holdings, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/24/20254.52 %Systems Software3,960 3,920 3,946 
Intelsat Jackson Holdings S.A.First Lien Term Loan, PRIME+4.75% cash due 11/27/20238.00 %Alternative Carriers3,568 3,543 3,628 
First Lien Term Loan, LIBOR+5.50% cash due 7/13/20226.50 %Alternative Carriers1,943 1,762 1,988 
      Total Intelsat Jackson Holdings S.A.5,305 5,616 
LogMeIn, Inc.First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.90 %Application Software5,000 4,880 4,994 
Maravai Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 10/19/20275.25 %Biotechnology6,875 6,806 6,952 
Mindbody, Inc.First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/20258.00 %Internet Services & Infrastructure4,564 4,502 4,181 (4)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025Internet Services & Infrastructure— (7)(40)(4)(5)
Total Mindbody, Inc.4,495 4,141 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %Application Software3,863 3,829 3,854 (4)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026Application Software— (1)— (4)(5)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (3)(1)(4)(5)
Total MRI Software LLC3,825 3,853 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.15 %Health Care Technology5,955 5,925 5,955 
New IPT, Inc.First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %Oil & Gas Equipment & Services941 941 735 (4)
21.876 Class A Common Units in New IPT Holdings, LLCOil & Gas Equipment & Services— — (4)
Total New IPT, Inc.941 735 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.75% cash due 3/31/20255.75 %Electrical Components & Equipment6,807 6,787 6,671 
Northwest Fiber, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 4/30/20275.65 %Integrated Telecommunication Services2,394 2,311 2,406 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20226.00 %Application Software5,915 5,897 5,903 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.15 %Application Software7,879 7,843 7,820 
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026Application Software— — — (5)
Total OEConnection LLC7,843 7,820 
Olaplex, Inc.First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %Personal Products6,395 6,298 6,395 (4)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025Personal Products— (9)— (4)(5)
Total Olaplex, Inc.6,289 6,395 
Park Place Technologies, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %Internet Services & Infrastructure5,000 4,804 4,817 (4)
PetVet Care Centers, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 2/14/20255.25 %Specialized Consumer Services2,736 2,729 2,753 
85

Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
Digital River, Inc. Internet software & services First Lien 2/12/2021 LIBOR+6.5% (1% floor) 8.08% $2,775
 $2,786
 $2,782
Dodge Data & Analytics LLC (3) Data processing & outsourced services First Lien 10/31/2019 LIBOR+8.75% (1% floor) 10.13% 9,199
 9,228
 9,116
DTZ U.S. Borrower, LLC (3) Real estate services First Lien 11/4/2021 LIBOR+3.25% (1% floor) 4.94% 6,946
 6,978
 6,867
Edge Fitness, LLC Leisure facilities First Lien 12/31/2019 LIBOR+7.75% (1% floor) 9.05% 10,600
 10,601
 10,600
EOS Fitness Opco Holdings, LLC (3) Leisure facilities First Lien 12/30/2019 LIBOR+8.75% (0.75% floor) 10.12% 18,251
 18,078
 18,433
Everi Payments Inc. Casinos & gaming First Lien 5/9/2024 LIBOR+4.5% (1% floor) 4.98% 4,975
 4,952
 5,032
Falmouth Group Holdings Corp. Specialty chemicals First Lien 12/13/2021 LIBOR+6.75% (1% floor) 8.44% 4,528
 4,497
 4,528
Garretson Resolution Group, Inc. Diversified support services First Lien 5/22/2021 LIBOR+6.5% (1% floor) 8.19% 5,797
 5,780
 5,432
 Gigamon Inc.  Systems software First Lien 12/18/2024 LIBOR+4.5% (1% floor) 6.03% 8,000
 7,920
 7,960
InMotion Entertainment Group, LLC (3) Consumer electronics First Lien 10/1/2021 LIBOR+7.25% (1.25% floor) 8.95% 8,750
 8,769
 8,750
    First Lien B 10/1/2021 LIBOR+7.25% (1.25% floor) 8.95% 8,750
 8,660
 8,750
Total InMotion Entertainment Group, LLC           17,500
 17,429
 17,500
 Keypath Education, Inc. (3)  Advertising First Lien 4/3/2022 LIBOR+7% (1.00% floor) 8.69% 2,040
 2,039
 2,040
    927 shares Common Stock         1,391
 815
            2,040
 3,430
 2,855
Lift Brands, Inc. (3) Leisure facilities First Lien 12/23/2019 LIBOR+7.5% (1% floor) 9.19% 18,149
 18,132
 18,149
Metamorph US 3, LLC (3)(5) Internet software & services First Lien 12/1/2020 LIBOR+5.5% (1% floor) 2% PIK 7.07% 9,942
 9,232
 3,775
Motion Recruitment Partners LLC Human resources & employment services First Lien 2/13/2020 LIBOR+6% (1% floor) 7.57% 4,298
 4,255
 4,303
NAVEX Global, Inc. Internet software & services First Lien 11/19/2021 LIBOR+4.75% (1% floor) 5.82% 5,944
 5,911
 5,974
New IPT, Inc. (3)  Oil & gas equipment & services First Lien 3/17/2021 LIBOR+5% (1% floor) 6.69% 1,794
 1,794
 1,794
    Second Lien 9/17/2021 LIBOR+5.1% (1% floor) 6.79% 1,094
 1,094
 1,094
    21.876 Class A Common Units       
 —
 420
Total New IPT, Inc.           2,888
 2,888
 3,308
Novetta Solutions, LLC Internet software & services First Lien 9/30/2022 LIBOR+5% (1% floor) 6.70% 6,102
 6,053
 5,937
OmniSYS Acquisition Corporation (3) Diversified support services First Lien 11/21/2018 LIBOR+7.5% (1% floor) 9.19% 10,896
 10,899
 10,873
Refac Optical Group (3) Specialty stores First Lien A 9/30/2018 LIBOR+8% 9.56% 4,111
 4,098
 4,111
Salient CRGT, Inc. (3)  IT consulting & other services First Lien 2/28/2022 LIBOR+5.75% (1% floor) 7.32% 2,405
 2,364
 2,426
Scientific Games International, Inc. (3) Casinos & gaming First Lien 8/14/2024 LIBOR+3.25% 4.67% 6,615
 6,583
 6,677
SHO Holding I Corporation Footwear First Lien 10/27/2022 LIBOR+5% (1% floor) 6.42% 8,573
 8,545
 8,273
TravelClick, Inc. (3) Internet software & services Second Lien 11/6/2021 LIBOR+7.75% (1% floor) 9.32% 5,127
 5,127
 5,153
TV Borrower US, LLC Integrated telecommunications services First Lien 2/22/2024 LIBOR+4.75% (1% floor) 6.44% 2,034
 2,025
 2,045
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien 9/24/2021 LIBOR+7% (1% floor) 8.57% 12,965
 12,838
 12,965
Vubiquity, Inc. Application software First Lien 8/12/2021 LIBOR+5.5% (1% floor) 7.19% 2,646
 2,630
 2,626
            $249,967
 $255,973
 $239,601
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
PG&E CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 6/23/20255.50 %Electric Utilities$5,970 $5,889 $6,051 
Planview Parent, Inc.Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %Application Software4,503 4,435 4,503 (4)
Recorded Books Inc.First Lien Term Loan, LIBOR+4.25% cash due 8/29/20254.75 %Publishing6,000 5,940 6,025 
RS Ivy Holdco, Inc.First Lien Term Loan, LIBOR+5.50% cash due 12/23/20276.50 %Oil & Gas Exploration & Production7,000 6,895 6,965 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %Metal & Glass Containers2,742 2,714 2,743 
Salient CRGT, Inc.First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %Aerospace & Defense2,080 2,070 2,002 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.25% cash due 4/27/20246.25 %Footwear8,445 8,430 7,347 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.50 %Health Care Services9,725 9,669 9,433 
Sirva Worldwide, Inc.First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.65 %Diversified Support Services4,750 4,679 4,352 
Star US Bidco LLCFirst Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %Industrial Machinery3,709 3,529 3,649 
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.00% cash due 10/1/20265.00 %Personal Products7,920 7,880 7,969 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20254.00 %Application Software4,876 4,580 4,574 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.25% cash due 9/3/20244.25 %Health Care Facilities4,949 4,931 4,876 
Veritas US Inc.First Lien Term Loan, LIBOR+5.50% cash due 9/1/20256.50 %Application Software6,484 6,362 6,475 
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.65 %Health Care Technology4,101 4,070 4,107 (4)
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %Integrated Telecommunication Services7,960 7,654 7,808 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %Aerospace & Defense6,000 5,959 5,085 (4)
$313,978 $317,432 $313,261 
__________________
(1) Represents the current interest rate as of December 31, 2017.2020. All interest rates are payable in cash, unless otherwise noted.


(2) Represents the current determination of fair value as of December 31, 2017 utilizing a similar technique as us in accordance with ASC 820. However, the determination of such fair value is not included in our Board of Directors' valuation process described elsewhere herein.
(3) This investment is held by both us and SLF JV I as of December 31, 2017.
(4) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, we have provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.
(5) This investment was onagreement and the cash non-accrual status as of December 31, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.



SLF JV I Portfolio as of September 30, 2017
Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
AdVenture Interactive, Corp. (3) Advertising 927 Common Stock Shares         $1,088
 $1,412
Allied Universal Holdco LLC (3) Security & alarm services First Lien 7/28/2022 LIBOR+3.75% (1% floor) 5.08% $6,982
 7,040
 6,976
Ameritox Ltd. (3)(5) Healthcare services First Lien 4/11/2021 LIBOR+5% (1% floor) 3% PIK 6.33% 5,759
 5,638
 668
    301,913.06 Class B Preferred Units         302
 —
    928.96 Class A Common Units         5,474
 —
Total Ameritox, Ltd.           5,759
 11,414
 668
BeyondTrust Software, Inc. (3) Application software First Lien 9/25/2019 LIBOR+7% (1% floor) 8.33% 15,330
 15,231
 15,329
BJ's Wholesale Club, Inc. (3) Hypermarkets & super centers First Lien 1/26/2024 LIBOR+3.75% (1% floor) 4.99% 4,988
 4,993
 4,793
Compuware Corporation Internet software & services First Lien B3 12/15/2021 LIBOR+4.25% (1% floor) 5.49% 11,154
 11,041
 11,293
DFT Intermediate LLC (3) Specialized finance First Lien 3/1/2023 LIBOR+5.5% (1% floor) 6.74% 10,723
 10,474
 10,652
Digital River, Inc. Internet software & services First Lien 2/12/2021 LIBOR+6.5% (1% floor) 7.82% 4,524
 4,541
 4,546
Dodge Data & Analytics LLC (3) Data processing & outsourced services First Lien 10/31/2019 LIBOR+8.75% (1% floor) 10.13% 9,339
 9,372
 8,744
DTZ U.S. Borrower, LLC (3) Real estate services First Lien 11/4/2021 LIBOR+3.25% (1% floor) 4.57% 6,964
 6,998
 6,990
Edge Fitness, LLC Leisure facilities First Lien 12/31/2019 LIBOR+7.75% (1% floor) 9.05% 10,600
 10,602
 10,600
EOS Fitness Opco Holdings, LLC (3) Leisure facilities First Lien 12/30/2019 LIBOR+8.75% (0.75% floor) 9.99% 18,374
 18,182
 18,557
Everi Payments Inc.(3) Casinos & gaming First Lien 5/9/2024 LIBOR+4.5% (1% floor) 5.74% 4,988
 4,964
 5,039
Falmouth Group Holdings Corp. Specialty chemicals First Lien 12/13/2021 LIBOR+6.75% (1% floor) 8.08% 4,610
 4,578
 4,610
Garretson Resolution Group, Inc. Diversified support services First Lien 5/22/2021 LIBOR+6.5% (1% floor) 7.83% 5,836
 5,818
 5,766
InMotion Entertainment Group, LLC (3) Consumer electronics First Lien 10/1/2018 LIBOR+7.75% (1.25% floor) 9.09% 8,875
 8,884
 8,875
    First Lien B 10/1/2018 LIBOR+7.75% (1.25% floor) 9.09% 8,875
 8,828
 8,871
Total InMotion Entertainment Group, LLC           17,750
 17,712
 17,746
 Keypath Education, Inc. (3)  Advertising First Lien 4/3/2022 LIBOR+7% (1.00% floor) 8.33% 2,040
 2,040
 2,039
    927 shares Common Stock         1,391
 809
            2,040
 3,431
 2,848
Lift Brands, Inc. (3) Leisure facilities First Lien 12/23/2019 LIBOR+7.5% (1% floor) 8.83% 18,276
 18,257
 18,275
Metamorph US 3, LLC (3)(5) Internet software & services First Lien 12/1/2020 LIBOR+5.5% (1% floor) 2% PIK 6.74% 9,969
 9,481
 3,786
Motion Recruitment Partners LLC Human resources & employment services First Lien 2/13/2020 LIBOR+6% (1% floor) 7.24% 4,330
 4,281
 4,330
NAVEX Global, Inc. Internet software & services First Lien 11/19/2021 LIBOR+4.75% (1% floor) 5.49% 5,959
 5,925
 5,982
New IPT, Inc. (3)  Oil & gas equipment & services First Lien 3/17/2021 LIBOR+5% (1% floor) 6.33% 1,794
 1,794
 1,794
    Second Lien 9/17/2021 LIBOR+5.1% (1% floor) 6.43% 1,094
 1,094
 1,094
    21.876 Class A Common Units         —
 321
Total New IPT, Inc.           2,888
 2,888
 3,209


Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
Novetta Solutions, LLC Internet software & services First Lien 9/30/2022 LIBOR+5% (1% floor) 6.34% $6,118
 $6,066
 $5,950
OmniSYS Acquisition Corporation (3) Diversified support services First Lien 11/21/2018 LIBOR+7.5% (1% floor) 8.83% 10,896
 10,900
 10,833
Refac Optical Group (3) Specialty stores First Lien A 9/30/2018 LIBOR+8% 9.23% 4,623
 4,605
 4,623
Salient CRGT, Inc. (3)  IT consulting & other services First Lien 2/28/2022 LIBOR+5.75% (1% floor) 6.99% 2,457
 2,412
 2,440
Scientific Games International, Inc. (3) Casinos & gaming First Lien 8/14/2024 LIBOR+3.25% (1% floor) 4.58% 6,632
 6,598
 6,651
SHO Holding I Corporation Footwear First Lien 10/27/2022 LIBOR+5% (1% floor) 6.24% 8,594
 8,566
 8,487
TravelClick, Inc. (3) Internet software & services Second Lien 11/6/2021 LIBOR+7.75% (1% floor) 8.99% 5,127
 5,127
 5,153
TV Borrower US, LLC Integrated telecommunications services First Lien 2/22/2024 LIBOR+4.75% (1% floor) 6.08% 3,582
 3,565
 3,607
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien 9/24/2021 LIBOR+7% (1% floor) 8.24% 12,998
 12,862
 12,998
Vubiquity, Inc. Application software First Lien 8/12/2021 LIBOR+5.5% (1% floor) 6.83% 2,653
 2,636
 2,633
            $245,063
 $251,648
 $235,526

 ___________________
(1) Represents the current interest rate as of September 30, 2017.period end. All the LIBOR shown above is in U.S. dollars. As of December 31, 2020, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.25%, the 180-day LIBOR at 0.26% and the PRIME at 3.25%. Most loans include an interest rates are payable in cash, unless otherwise noted.floor, which generally ranges from 0% to 1%.
(2)(3) Represents the current determination of fair value as of September 30, 2017December 31, 2020 utilizing a similar technique as us in accordance with ASC 820. However, the determination of such fair value is not included in our Board of Directors' valuation process described elsewhere herein.
(3)(4) This investment is held by both us and SLF JV I as of December 31, 2020.
(5) Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(6) This investment was on cash non-accrual status as of December 31, 2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.


86

SLF JV I Portfolio as of September 30, 2017.2020
(4)
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Access CIG, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.91 %Diversified Support Services$9,206 $9,170 $9,029 
AdVenture Interactive, Corp.927 shares of common stockAdvertising1,390 1,373 (4)
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20254.65 %Electrical Components & Equipment6,038 5,914 5,781 (4)
Airbnb, Inc.First Lien Term Loan, LIBOR+7.50% cash due 4/17/20258.50 %Hotels, Resorts & Cruise Lines3,051 2,981 3,311 (4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.15 %Integrated Telecommunication Services4,643 4,450 4,527 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %Pharmaceuticals9,879 9,623 9,566 
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.00% cash due 11/26/20264.75 %Movies & Entertainment7,960 7,880 6,846 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/2025Personal Products2,828 2,282 1,248 (6)
Apptio, Inc.First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %Application Software4,615 4,550 4,526 (4)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025Application Software— (5)(8)(4)(5)
Total Apptio, Inc.4,545 4,518 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %Airport Services6,468 6,324 6,015 (4)
Blackhawk Network Holdings, Inc.First Lien Term Loan, LIBOR+3.00% cash due 6/15/20253.15 %Data Processing & Outsourced Services9,775 9,758 9,251 
Boxer Parent Company Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/2/20254.40 %Systems Software7,532 7,448 7,331 (4)
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.16 %Oil & Gas Equipment & Services7,331 7,306 5,600 
C5 Technology Holdings, LLC171 Common UnitsData Processing & Outsourced Services— — (4)
7,193,539.63 Preferred UnitsData Processing & Outsourced Services7,194 5,683 (4)
Total C5 Technology Holdings, LLC7,194 5,683 
Carrols Restaurant Group, Inc.First Lien Term Loan, LIBOR+6.25% cash due 4/30/20267.25 %Restaurants3,990 3,792 3,960 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+5.00% cash due 3/28/20246.00 %Oil & Gas Refining & Marketing7,184 7,112 6,842 (4)
Clear Channel Outdoor Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 8/21/20263.76 %Advertising331 290 302 
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.50 %Alternative Carriers7,437 7,262 7,228 
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+3.75% cash due 7/9/20263.97 %Biotechnology5,940 5,895 5,895 
Dcert Buyer, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.15 %Internet Services & Infrastructure7,960 7,940 7,879 
Dealer Tire, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 12/12/20254.40 %Distributors943 902 924 
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.50 %Application Software7,481 7,406 7,461 
Frontier Communications CorporationFirst Lien Term Loan, PRIME+2.75% cash due 6/15/20246.00 %Integrated Telecommunication Services3,939 3,901 3,887 
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20245.25 %Systems Software7,781 7,734 7,684 
87

Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.75% cash due 10/2/20255.75 %Health Care Services$2,231 $2,187 $2,185 
Guidehouse LLPSecond Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.15 %Research & Consulting Services6,000 5,979 5,790 (4)
Helios Software Holdings, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/24/20254.52 %Systems Software3,970 3,930 3,923 
Intelsat Jackson Holdings S.A.First Lien Term Loan, PRIME+4.75% cash due 11/27/20238.00 %Alternative Carriers3,568 3,541 3,598 
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 7/13/20226.50 %Alternative Carriers971 801 1,011 (5)
Total Intelsat Jackson Holdings S.A.4,342 4,609 
KIK Custom Products Inc.First Lien Term Loan, LIBOR+4.00% cash due 5/15/20235.00 %Household Products5,322 5,308 5,302 
LogMeIn, Inc.First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.91 %Application Software5,000 4,876 4,842 
Mindbody, Inc.First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/20258.00 %Internet Services & Infrastructure4,546 4,481 4,192 (4)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025Internet Services & Infrastructure— (7)(38)(4)(5)
Total Mindbody, Inc.4,474 4,154 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %Application Software3,830 3,795 3,737 (4)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026Application Software— (1)(4)(4)(5)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (3)(8)(4)(5)
Total MRI Software LLC3,791 3,725 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.15 %Health Care Technology5,970 5,940 5,849 
New IPT, Inc.First Lien Term Loan, LIBOR+5.00% cash due 3/17/20216.00 %Oil & Gas Equipment & Services1,006 1,006 786 (4)
21.876 Class A Common Units in New IPT Holdings, LLCOil & Gas Equipment & Services— — (4)
Total New IPT, Inc.1,006 786 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.75% cash due 3/31/20255.75 %Electrical Components & Equipment6,825 6,803 6,518 
Northwest Fiber, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 4/30/20275.66 %Integrated Telecommunication Services2,400 2,314 2,403 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20226.00 %Application Software5,931 5,909 5,827 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.15 %Application Software7,455 7,418 7,371 
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026Application Software— (2)(5)(5)
Total OEConnection LLC7,416 7,366 
Olaplex, Inc.First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50 %Personal Products4,938 4,851 4,938 (4)
First Lien Revolver, LIBOR+6.50% cash due 1/8/20257.50 %Personal Products270 261 270 (4)(5)
Total Olaplex, Inc.5,112 5,208 
PetVet Care Centers, LLCFirst Lien Term Loan, LIBOR+4.25% cash due 2/14/20255.25 %Specialized Consumer Services2,743 2,736 2,747 
PG&E CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 6/23/20255.50 %Electric Utilities5,985 5,899 5,875 
Recorded Books, Inc.First Lien Term Loan, LIBOR+4.25% cash due 8/31/20254.75 %Publishing6,000 5,940 5,940 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %Metal & Glass Containers2,828 2,800 2,791 
88

Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Salient CRGT, Inc.First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.50 %Aerospace & Defense$2,111 $2,099 $1,963 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+3.00% cash PIK 2.25% due 4/27/20244.00 %Footwear8,396 8,380 5,898 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.50 %Health Care Services9,750 9,690 9,409 
Sirva Worldwide, Inc.First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.65 %Diversified Support Services4,781 4,709 3,992 
Star US Bidco LLCFirst Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %Industrial Machinery3,718 3,532 3,551 
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.25% cash due 10/1/20265.25 %Personal Products7,940 7,900 7,911 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.90 %Application Software4,888 4,575 4,407 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.25% cash due 9/3/20244.25 %Health Care Facilities4,962 4,943 4,691 (4)
Uber Technologies, Inc.First Lien Term Loan, LIBOR+4.00% cash due 4/4/20255.00 %Application Software2,997 2,959 2,980 
UFC Holdings, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 4/29/20264.25 %Movies & Entertainment2,856 2,816 2,814 
Veritas US Inc.First Lien Term Loan, LIBOR+5.50% cash due 9/1/20256.50 %Application Software6,500 6,371 6,375 
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.50% cash due 8/27/20254.65 %Health Care Technology4,112 4,080 4,084 (4)
VM Consolidated, Inc.First Lien Term Loan, LIBOR+3.25% cash due 2/28/20253.40 %Data Processing & Outsourced Services10,487 10,495 10,291 
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %Integrated Telecommunication Services7,980 7,662 7,744 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %Aerospace & Defense6,000 5,956 4,680 (4)
$307,579 $311,428 $298,771 
__________________
(1) Represents the interest rate as of September 30, 2020. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR andand/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, we havethe Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.agreement and the cash interest rate as of period end. All the LIBOR shown above is in U.S. dollars. As of September 30, 2020, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.22%, the 180-day LIBOR at 0.27% and the PRIME at 3.25%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(3) Represents the current determination of fair value as of September 30, 2020 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(4) This investment was held by both the Company and SLF JV I as of September 30, 2020.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(6) This investment iswas on cash non-accrual status as of September 30, 2017.2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

Both the cost and fair value of our debt investment in the Class A mezzanine secured deferrable floating rate notes of SLF JV I held by us were $100.8 million and $101.0$96.3 million as of each of December 31, 20172020 and September 30, 2017, respectively.2020. We earned cash interest income of $1.8 million and $0.2$2.2 million on our investments in these notesthe SLF JV I Subordinated Notes for the three months ended December 31, 20172020 and December 31, 2016,2019, respectively. Both the cost and fair value of the Class B mezzanine secured deferrable fixed rate notes ofThe SLF JV I held by us were $27.5 million and $27.6 million as of December 31, 2017 and September 30, 2017, respectively. We earned PIK interest of $1.0 million on our investments in these notes for the three months ended December 31, 2017. Prior to their repayment, the subordinated notes of SLF JV I boreSubordinated Notes bear interest at a rate of one-month LIBOR plus 8.0%7.0% per annum and we earned interest income of $2.9 millionmature on our investments in these notes for the three months ended December 31, 2016. 29, 2028.
The cost and fair value of the LLC equity interests in SLF JV I held by us was $16.2$49.3 million and $4.9$29.3 million, respectively, as of December 31, 2017,2020 and $16.2$49.3 million and $5.5$21.2 million, respectively, as of September 30, 2017.2020. We did not earn any dividend income for the three months ended December 31, 20172020 and earned dividend income of $0.7 million for the three months ended December 31, 2016,2019 with respect to our investment in the LLC equity interests.interests of SLF JV I. The LLC equity interests of SLF JV I are dividend producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.
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Below is certain summarized financial information for SLF JV I as of December 31, 20172020 and September 30, 20172020 and for the three months ended December 31, 20172020 and December 31, 2016:2019:
December 31, 2020September 30, 2020
Selected Balance Sheet Information:
Investments at fair value (cost December 31, 2020: $317,432; cost September 30, 2020: $311,428)$313,261 $298,771 
Cash and cash equivalents20,575 5,389 
Restricted cash4,262 4,211 
Other assets3,147 5,093 
Total assets$341,245 $313,464 
Senior credit facility payable$175,410 $167,910 
Debt securities payable at fair value (proceeds December 31, 2020: $110,000; proceeds September 30, 2020: $110,000)110,000 110,000 
Other liabilities22,390 11,336 
Total liabilities307,800 289,246 
Members' equity33,445 24,218 
Total liabilities and members' equity$341,245 $313,464 
  December 31, 2017 September 30, 2017
Selected Balance Sheet Information:    
Investments in loans at fair value (cost December 31, 2017: $255,973; cost September 30, 2017: $251,648) $239,601
 $235,526
Receivables from secured financing arrangements at fair value (cost December 31, 2017: $9,787; cost September 30, 2017: $9,783) 8,334
 8,305
Cash and cash equivalents 28,386
 24,389
Restricted cash 4,100
 5,097
Other assets 4,117
 3,485
Total assets $284,538
 $276,802
     
Senior credit facilities payable $105,053
 $113,053
Debt securities payable at fair value (proceeds December 31, 2017: $146,572; proceeds September 30, 2017: $147,052) 146,572
 147,052
Other liabilities 27,407
 10,383
Total liabilities 279,032
 270,488
Members' equity 5,506
 6,314
Total liabilities and members' equity $284,538
 $276,802

 Three months ended December 31, 2017 Three months ended December 31, 2016Three months ended December 31, 2020Three months ended December 31, 2019
Selected Statements of Operations Information:    Selected Statements of Operations Information:
Interest income $4,728
 $6,759
Interest income$4,475 $5,393 
Other income —
 308
Other income54 6 
Total investment income 4,728
 7,067
Total investment income4,529 5,399 
Interest expense 5,145
 6,014
Interest expense3,581 4,641 
Other expenses 161
 408
Other expenses62 67 
Total expenses (1) 5,306
 6,422
Total expenses (1)3,643 4,708 
Net unrealized depreciation (226) (22,473)
Net realized gain (loss) (4) 22,708
Net unrealized appreciation (depreciation)Net unrealized appreciation (depreciation)8,486 2,941 
Net realized gains (losses)Net realized gains (losses)(144)(1,152)
Net income (loss) $(808) $880
Net income (loss)$9,228 $2,480 
 __________
(1) There are no management fees or incentive fees charged at SLF JV I.

For the three months ended December 31, 2020, SLF JV I's interest expense included $1.6 million related to the Deutsche Bank I Facility and $2.0 million related to the SLF JV I Notes, of which $1.8 million was payable to us and $0.2 million was payable to Kemper.
SLF JV I has elected to fair value the debt securities issued to us and Kemper under FASB ASC Topic 825, Financial Instruments - Fair Value Option, or ASC 825.. The debt securities are valued based on the total assets less the total liabilities senior to the mezzanine notes of SLF JV I Notes in an amount not exceeding par under the enterprise value technique.
During the three months ended December 31, 20172020 and December 31, 2016,2019, we did not sell any senior secured debt investments to SLF JV I.
Discussion and Analysis of Results and Operations
Results of Operations
The principal measure of our financial performance is the netNet increase (decrease) in net assets resulting from operations which includes net investment income, net realized gain (loss)gains (losses) and net unrealized appreciation (depreciation). Net investment income is the difference between our income from interest, dividends and fees and other investment income and totalnet expenses. Net realized gain (loss) on investments and secured borrowingsgains (losses) is the difference between the proceeds received from dispositions of portfolio investmentsinvestment related assets and secured borrowingsliabilities and their stated costs. Net unrealized appreciation (depreciation) is the net change in the fair value of our investment portfoliorelated assets and secured borrowingsliabilities carried at fair value during the reporting period, including the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.


Comparison of three months ended December 31, 20172020 and December 31, 20162019
Total Investment Income
Total investment income includes interest on our investments, fee income and other investmentdividend income.
Total investment income for the for the three months ended December 31, 20172020 and December 31, 20162019 was $33.9$38.2 million and $51.8$31.0 million, respectively. For the three months ended December 31, 2017,2020, this amount primarily consisted of $31.8$34.7 million of interest income from
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portfolio investments (which included $1.9$3.1 million of PIK interest), $1.0$3.4 million of fee income and $1.0$0.1 million of dividend income. For the three months ended December 31, 2016,2019, this amount primarily consisted of $46.7$29.6 million of interest income from portfolio investments (which included $2.8$1.2 million of PIK interest), $3.6$1.1 million of fee income and $1.5$0.3 million of dividend income.
The decreaseincrease of $17.9$7.2 million, or 23.4%, in our total investment income for the three months ended December 31, 2017,2020, as compared to the three months ended December 31, 2016,2019, was due primarily to (1) a $14.9$5.2 million decreaseincrease in interest income, which was primarily attributable to a decrease in the size of ourlarger investment portfolio, and (2) a $2.5$2.3 million decreaseincrease in fee income which was attributableprimarily due to a higher number of advisory and structuring fees earned during the three months ended December 31, 2016, and a $0.4 million decrease in dividend income, which was attributable to lower dividend income earned on our investments in SLF JV I in the current quarter.prepayment fees.
Expenses
Net expenses (expenses net of fee waivers and insurance recoveries)waivers) for the three months ended December 31, 20172020 and December 31, 20162019 were $20.6$28.2 million and $28.5$23.1 million, respectively. Net expenses decreasedincreased for the three months ended December 31, 2017,2020, as compared to the three months ended December 31, 2016,2019, by $7.9$5.1 million, or 27.8%21.9%, primarily due primarily to a $3.0 million decrease in base management fees, which was attributable to a reduction in the size of our portfolio and a reduction in the base management fee rate under the New Investment Advisory Agreement,(1) a $3.3 million decreaseincrease in Part II fees (net of fee waivers) as a result of higher capital gains earned during the current quarter offset by a reversal of fee waivers in the prior year comparable quarter, (2) a $1.2 million increase in Part I incentive fees which was attributablemainly due to lower pre-incentive fee nethigher investment income and (3) a $0.9 million increase in the current quarter andmanagement fees as a $3.6result of a larger investment portfolio. This was partially offset by a $0.4 million decrease in interest expense attributableprimarily due to lower levels of outstanding debtdecreases in the current quarter, partially offset by a $1.8 million increase in professional fees.LIBOR.
Net Investment Income
As a result of the $17.9$7.2 milliondecrease increase in total investment income and the $7.9$5.1 million decreaseincrease in net expenses, net investment income for the three months ended December 31, 2017 decreased2020 increased by $10.0$2.2 million, or 42.8%27.8%, compared to the three months ended December 31, 2016.2019.
Realized Gain (Loss) on Investments and Secured Borrowings
Realized gain (loss) isgains or losses are measured by the difference between the net proceeds received from dispositionsthe sale or redemption of portfolio investments and secured borrowingsforeign currency and their stated costs.the cost basis without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period, net of recoveries. Realized losses may also be recorded in connection with our determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.
Realized losses on investments and secured borrowings decreased from $23.1 million forDuring the three months ended December 31, 2016 to $0.32020 and 2019, we recorded aggregate net realized gains of $8.2 million forand $3.3 million, respectively, in connection with the three months ended December 31, 2017. For the three months ended December 31, 2016, realized losses were driven primarily by the restructuring our investment in SLF JV I and the dispositionexits or restructurings of our investment in First Star Aviation, LLC.
various investments. See “Note“Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation on Investments and Secured Borrowings”” in the notes to the accompanying Consolidated Financial Statements for more details regarding investment realization events for the three months ended December 31, 20172020 and December 31, 2016.2019.
Net Unrealized Appreciation (Depreciation) on Investments and Secured Borrowings

Net unrealized appreciation or depreciation is the net change in the fair value of our investments and secured borrowingsforeign currency during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Net unrealized depreciation on investments and secured borrowings decreased from $74.4 million forDuring the three months ended December 31, 2016 to $43.52020 and 2019, we recorded net unrealized appreciation (depreciation) of $47.6 million forand $2.9 million, respectively. For the three months ended December 31, 2017. Net2020, this consisted of $27.2 million of net unrealized appreciation on debt investments, $12.8 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $9.9 million of net unrealized appreciation on equity investments, partially offset by $2.4 million of net unrealized depreciation forof foreign currency forward contracts. For the three months ended December 31, 2017 was primarily the result2019, this consisted of significant write-downs on our investment portfolio, including $39.9$3.9 million of aggregate write-downsnet unrealized appreciation on three investments. Net unrealized depreciation for the three months ended December 31, 2016 was primarily the result of significant write-downs on our investment portfolio, including $82.9equity investments and $2.2 million of aggregate write-downsnet unrealized appreciation on fourdebt investments, partially offset by $1.7 million of net reclassificationsunrealized depreciation related to exited investments (a portion of which results in a reclassification to realized losses (resulting ingains) and $1.5 million net unrealized appreciation).


See “Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation on Investments and Secured Borrowings” in the Consolidated Financial Statements for more details regarding unrealized appreciation (depreciation) on investments and secured borrowings for the three months ended December 31, 2017 and December 31, 2016.

depreciation of foreign currency forward contracts.
Financial Condition, Liquidity and Capital Resources
We have a number of alternatives available to fund our investment portfolio and our operations, including raising equity, increasing or refinancing debt and funding from operational cash flow. Additionally,We generally expect to generate liquidity wefund the growth of our investment portfolio through additional debt and equity capital, which may reduce investment size by syndicatinginclude securitizing a portion of any given transaction.our investments. We cannot assure you, however, that our efforts to grow our portfolio will be successful. For example, our common stock has generally traded at prices below net asset value for the past several years, and we are currently limited in our ability to raise additional equity at prices below the then-current net asset value per share. We intend to continue to generate cash primarily from cash flows from operations, including interest earned, and future borrowings. We may also from time to time issue securities in public or private offerings, which offerings will depend on future market conditions, funding needs and other factors. We intend to fund our future distribution
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obligations through operating cash flow or with funds obtained through future equity and debt offerings or credit facilities, as we deem appropriate.
In the future, we may also securitize a portion of our investments to the extent permitted by applicable law and regulation. To securitize investments, we would likely create a wholly-owned subsidiary and contribute a pool of loans to the subsidiary. We would then sell interests in the subsidiary on a non-recourse basis to purchasers and we would retain all or a portion of the equity in the subsidiary. Our primary uses of funds are investments in our targeted asset classes and cash distributions to holders of our common stock. We may also from time to time repurchase or redeem some or all of our outstanding notesnotes. At a special meeting of our stockholders held on June 28, 2019, our stockholders approved the application of the reduced asset coverage requirements in open-market transactions, privately negotiated transactions or otherwise. We generally expectSection 61(a)(2) of the Investment Company Act to targetus effective as of June 29, 2019. As a result of the reduced asset coverage requirement, we can incur $2 of debt for each $1 of equity as compared to $1 of debt for each $1 of equity. As of December 31, 2020, we had $702.2 million in senior securities and our asset coverage ratio was 236.7%. As of December 31, 2020, our debt to equity ratio of 0.70xwas 0.73x. Our target debt to equity ratio is 0.85x to 1.0x (i.e., one dollar of equity for each $0.70$0.85 to $0.85$1.00 of debt outstanding).
Although as we may fundplan to continue to opportunistically deploy capital into the growth of our investment portfolio through equity offerings, our plans to do so may not be successful. In this regard, because our common stock has at times traded at a price below our then-current net asset value per share (which has primarily been the case for several years) and we are limited in our ability to sell our common stock at a price below net asset value per share, we are currently limited in our ability to raise equity capital absent stockholder approval to issue shares of our common stock at prices below the then-current net asset value per share.markets.
For the three months ended December 31, 2017,2020, we experienced a net decrease in cash and cash equivalents of $7.6$14.9 million. During that period, we received $67.2$16.1 million of net cash from operating activities, primarily from $286.0$169.8 million of principal payments PIK payments and sale proceeds received, $100.3 million of net increase in payables from unsettled transactions and the cash activities related to $13.3$10.0 million of net investment income, partially offset by funding $200.2$243.7 million of investments and $26.3 million of net revolvers.increase in other assets. During the same period, net cash used by financing activities was $74.8$30.6 million, primarily consisting of $51.0 million of net repayments under our credit facilities, $17.3$15.0 million of cash distributions paid to our stockholders, $6.2$14.8 million of payments of deferred financing costs and $0.3net repayments under the Credit Facility (as defined below), $0.5 million of repurchases of common stock under our dividend reinvestment plan, or DRIP.DRIP, and $0.3 million of deferred financing costs paid.
For the three months ended December 31, 2016,2019, we experienced a net increase in cash and cash equivalents of $61.9$6.1 million. During that period, we received $179.1used $43.5 million of net cash from operating activities, primarily from $225.5funding $115.8 million of principal payments, PIK payments and sale proceeds receivedinvestments, a $35.8 million of net decrease in payables from unsettled transactions and the cash activities related to $23.3$7.8 million of net investment income, partially offset by funding $104.2$97.0 million of investmentsprincipal payments and net revolvers.sale proceeds received. During the same period, net cash usedprovided by financing activities was $117.2$49.6 million, primarily consisting of $74.9$63.0 million of net repaymentsborrowings under our credit facilities, $24.0the Credit Facility (as defined below), partially offset by $12.9 million of cash distributions paid to our stockholders $12.5 million of repurchases of common stock under stock repurchase program, $4.5 million of repayments of secured borrowings and $1.3$0.5 million of repurchases of common stock under our DRIP.
As of December 31, 2017,2020, we had $45.8$24.2 million in cash and cash equivalents, (including $0.3 million of restricted cash), portfolio investments (at fair value) of $1.4$1.7 billion, $9.1$9.0 million of interest, dividends and fees receivable, $24.6$400.0 million of undrawn capacity on the Credit Facility (subject to borrowing base and other limitations), $91.7 million of net payables from unsettled transactions, $205.0$400.0 million of borrowings outstanding under our credit facilities, $406.5Credit Facility, $294.8 million of unsecured notes payable (net of unamortized financing costs), $11.6 million of secured borrowings (at fair value)costs and unaccreted discount) and unfunded commitments to portfolio companies of $98.7$197.6 million. As of December 31, 2020, we have analyzed cash and cash equivalents, availability under the 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, 2017,2020, we had $59.9$39.1 million in cash and cash equivalents, (including $6.9 million of restricted cash), portfolio investments (at fair value) of $1.5$1.6 billion, $6.9 million of interest, dividends and fees receivable, $58.7$285.2 million of undrawn capacity on the Credit Facility (subject to borrowing base and other limitations), $8.6 million of net payablesreceivables from unsettled transactions, $256.0$414.8 million of borrowings outstanding under our credit facilities, $406.1Credit Facility, $294.5 million of unsecured notes payable (net of unamortized financing costs), $13.3 million of secured borrowings (at fair value)costs and unaccreted discount) and unfunded commitments to portfolio companies of $118.1$157.5 million. As of September 30, 2017, included in restricted cash was $6.8 million that was held at U.S. Bank, National Association in connection with our credit facility with Sumitomo Mitsui Banking Corporation, or SMBC.
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Significant Capital Transactions
The following table reflects the distributions per share that our Board of Directors has declared,we have paid, including shares issued under our DRIP, on our common stock since October 1, 2016:2018:
Date Declared Record Date Payment Date 
Amount
per Share
 
Cash
Distribution
 DRIP Shares
Issued (1)		 
DRIP Shares
Value
August 3, 2016 October 14, 2016 October 31, 2016 $0.06
 $ 8.2 million 81,391
 $ 0.4 million
August 3, 2016 November 15, 2016 November 30, 2016 0.06
 8.2 million 80,962
 0.4 million
October 18, 2016 December 15, 2016 December 30, 2016 0.06
 7.7 million 70,316
 0.4 million
October 18, 2016 January 13, 2017 January 31, 2017 0.06
 8.0 million 73,940
 0.4 million
October 18, 2016 February 15, 2017 February 28, 2017 0.06
 8.0 million 86,120
 0.4 million
February 6, 2017 March 15, 2017 March 31, 2017 0.02
 2.7 million 27,891
 0.1 million
February 6, 2017 June 15, 2017 June 30, 2017 0.02
 2.7 million 20,502
 0.1 million
February 6, 2017 September 15, 2017 September 29, 2017 0.125
 17.0 million 118,992
 0.7 million
August 7, 2017 December 15, 2017 December 29, 2017 0.125
 17.3 million 58,456
 0.3 million
Date DeclaredRecord DatePayment DateAmount
per Share		Cash
Distribution		DRIP Shares
Issued (1)		DRIP Shares
Value
November 19, 2018December 17, 2018December 28, 2018$0.095 $ 13.0 million87,429 $ 0.4 million
February 1, 2019March 15, 2019March 29, 20190.095 13.1 million59,603  0.3 million
May 3, 2019June 14, 2019June 28, 20190.095 13.1 million61,093  0.3 million
August 2, 2019September 13, 2019September 30, 20190.095 13.1 million61,205  0.3 million
November 12, 2019December 13, 2019December 31, 20190.095 12.9 million87,747 0.5 million
January 31, 2020March 13, 2020March 31, 20200.095 12.9 million157,523 0.5 million
April 30, 2020June 15, 2020June 30, 20200.095 13.0 million87,351 0.4 million
July 31, 2020September 15, 2020September 30, 20200.105 14.3 million102,404 0.5 million
November 13, 2020December 15, 2020December 31, 20200.11 15.0 million93,964 0.5 million
 ______________
(1)
(1)Shares were purchased on the open market and distributed.
On November 28, 2016, our Board of Directors approved a common stock repurchase program authorizing us to repurchase up to $12.5 million in the aggregate of our outstanding common stock through November 28, 2017. Common stock repurchases under the program were made in the open market. During the three months ended December 31, 2016, we repurchased 2,298,247 shares of
our common stock for $12.5 million, including commissions, under the common stock repurchase program. This authorization has been fully utilized.market and distributed.
Indebtedness
See “Note“Note 6. Borrowings”Borrowings” in the Consolidated Financial Statements for more details regarding our indebtedness and secured borrowings.indebtedness.
SBIC SubsidiariesCredit Facility

As of December 31, 2017 and September 30, 2017, Fifth Street Mezzanine Partners IV, L.P., or FSMP IV, and Fifth Street Mezzanine Partners V, L.P., or FSMP V, had no U.S. Small Business Administration, or SBA, -guaranteed debentures outstanding, and we had commenced actions to surrender2020, (i) the license for FSMP IV and FSMP V to the SBA. During the year ended September 30, 2017, FSMP IV and FSMP V repaid all SBA-guaranteed debentures outstanding. On January 17, 2018, the SBA approved FSMP IV's and FSMP V's requests to surrender its licenses. Following surrendersize of the SBIC licenses of FSMP IV and FSMP V to the SBA, we intend to redeploy the cash previously held at these subsidiaries.
For the three months ended December 31, 2016, we recorded aggregate interest expense of $2.2 million related to the SBA-guaranteed debentures of both small business investment company subsidiaries.
ING Facility
On November 30, 2017, the Company entered into aour senior secured revolving credit facility, or, as amended and restated, the ING facility,Credit Facility, pursuant to a Senior Secured Revolving Credit Agreement, or the ING Credit Agreement,senior secured revolving credit agreement, with the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents. As of December 31, 2017, the ING facility permits up to $600agents, was $800 million of borrowings and includes(with an “accordion” feature that permits us, under certain circumstances, to increase the size of the facility to up to $800 million. Borrowings underour net worth (as defined in the ING Credit Agreement bearFacility) on the date of such increase, (ii) the period during which we may make drawings will expire on February 25, 2023 and the maturity date was February 25, 2024 and (iii) the interest at a rate equal to, at our election, eithermargin for (a) LIBOR (1-loans (which may be 1-, 2-, 3- or 6-month, at our option) plus awas 2.00% (which can be increased up to 2.25%) and (b) alternate base rate loans was 1.00% (which can be increased up to 1.25%); provided that the interest margin of 2.25%, 2.50% orwill increase to 2.75% per annumand 1.75% for LIBOR loans and alternative base rate loans, respectively, if our stockholders’ equity is below $700 million, each depending on our senior debt coverage ratio as calculated under the ING Credit Agreement, with no LIBOR floor or (b) an alternate base rate plus a margin of 1.25%, 1.50% or 1.75% per annum depending on the Company’s senior debt coverage ratio as calculated under the ING Credit Agreement. The period during which we may make drawings under the ING facility expires on November 29, 2020, or the Revolving Termination Date, and the final maturity date of the facility will be one year following the Revolving Termination Date.ratio.

Each loan or letter of credit originated or assumed under the ING facilityCredit Facility is subject to the satisfaction of certain conditions. Borrowings under the Credit Facility are subject to the facility’s various covenants and the leverage restrictions contained in the Investment Company Act. We cannot be assuredassure you that we will be able to borrow funds under the ING facilityCredit Facility at any particular time or at all.


The following table describes significant financial covenants, as of December 31, 2017,2020, with which we must comply under the ING facilityCredit Facility on a quarterly basis:
Financial CovenantDescriptionTarget ValueSeptember 30, 2020 Reported Value (1)
Minimum shareholders' equityNet assets shall not be less than the greatersum of (a) 40% of total assets and (b) $700(x) $550 million, plus (y) 50% of the aggregate net proceeds of all sales of equity interests after November 30, 2017May 6, 2020
$550 million$915 million
Asset coverage ratioAsset coverage ratio shall not be less than 2.00:the greater of 1.50:1 and the statutory test applicable to us1.50:12.27:1
Interest coverage ratioInterest coverage ratio shall not be less than 2.00:2.25:12.25:13.69:1
Minimum net worthNet worth shall not be less than $650$500 million$500 million$911 million
 ___________ 
(1) As contractually required, we report financial covenants based on the last filed quarterly or annual report, in this case our Annual Report on Form 10-K for the year ended September 30, 2020. We were in compliance with all financial covenants under the ING facilityCredit Facility based on the financial information contained in this Quarterly Report on Form 10-Q for the three months ended December 31, 2017.10-Q.
From May 27, 2010 through November 30, 2017, we were party to a secured syndicated revolving credit facility with certain lenders party thereto from time to time and ING Capital LLC, as administrative agent, or, as amended, the Prior ING Facility. In connection with the entry into the ING Credit Agreement, we repaid all outstanding borrowings under the Prior ING Facility following which the Prior ING Facility was terminated. Obligations under the Prior ING Facility would have otherwise matured on August 6, 2018. As of December 31, 2017,2020 and September 30, 2020, we had $205.0$400.0 million and $414.8 million of borrowings outstanding under the ING facility,Credit Facility, respectively, which had a fair value of $205.0 million.$400.0 million and $414.8 million, respectively. Our
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borrowings under the ING facility bore interest at a weighted average interest rate of 3.961% for the period from November 30, 2017 to December 31, 2017. As of December 31, 2016, we had $402.5 million of borrowings outstanding under the Prior ING Facility. Our borrowings under the Prior INGCredit Facility bore interest at a weighted average interest rate of 3.705%2.323% and 2.945%3.983% for the period from October 1, 2017 to November 30, 2017 and the three months ended December 31, 2016,2020 and 2019, respectively. For the three months ended December 31, 2020 and 2019, we recorded interest expense (inclusive of fees) of $3.2 million and $4.0 million, respectively, related to the Credit Facility.
2025 Notes
On February 25, 2020, we issued $300.0 million in aggregate principal amount of our 3.500% notes due 2025, or the 2025 Notes, for net proceeds of $293.8 million after deducting OID of $2.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.7 million. The OID on the 2025 Notes is amortized based on the effective interest method over the term of the notes.
For the three months ended December 31, 2017,2020, we recorded interest expense of $2.7 million, in the aggregate, related to the Prior ING Facility and the ING facility. For the three months ended December 31, 2016, we recorded interest expense of $4.2$2.9 million related to the Prior ING Facility.
Sumitomo Facility
On September 16, 2011, our consolidated wholly-owned bankruptcy remote, special purpose subsidiary, or Funding II, entered into a credit facility, or the Sumitomo facility, with SMBC, an affiliate of Sumitomo Mitsui Financial Group, Inc., as administrative agent, and each of the lenders from time to time party thereto. Prior to November 24, 2017, the Sumitomo facility permitted up to $125 million of borrowings (subject to collateral requirements). Borrowings under the Sumitomo facility bore interest at a rate of either (i) LIBOR (1-month) plus 2.00% per annum, with no LIBOR floor, if the borrowings under the Sumitomo facility were greater than 35% of the aggregate available borrowings under the Sumitomo facility or (ii) LIBOR (1-month) plus 2.25% per annum, if the borrowings under the Sumitomo facility were less than or equal to 35% of the aggregate available borrowings under the Sumitomo facility. On November 24, 2017, Funding II, as the borrower under the Sumitomo facility, repaid all outstanding borrowings thereunder, following which the Sumitomo facility was terminated. Obligations under the Sumitomo facility would have otherwise matured on the earlier of August 6, 2018 or the date on which the Prior ING Facility was repaid, refinanced or terminated.2025 Notes. As of December 31, 2017, the Company had no borrowings outstanding under the Sumitomo facility.
Our borrowings under the Sumitomo facility bore interest at a weighted average interest rate of 3.501% and 2.784% for the period from October 1, 2017 through termination on November 24, 2017 and the three months ended December 31, 2016, respectively. For the three months ended December 31, 2017 and December 31, 2016, we recorded interest expense of $0.7 million and $0.6 million, respectively, related to the Sumitomo facility.

2019 Notes
For each of the three months ended December 31, 2017 and December 31, 2016, we recorded interest expense of $3.3 million related to our 4.875% unsecured notes due 2019, or the 2019 Notes. During the three months ended December 31, 2017 and December 31, 2016, we did not repurchase any of the 2019 Notes in the open market.
As of December 31, 2017,2020, there were $250.0$300.0 million of 20192025 Notes outstanding, which had a carrying value and fair value of $248.6$294.8 million and $250.7$311.3 million, respectively.
2024 Notes
For each of the three months ended December 31, 2017 and December 31, 2016, we recorded interest expense of $1.2 million related to our 5.875% unsecured notes due 2024, or the 2024 Notes. During the three months ended December 31, 2017 and December 31, 2016, we did not repurchase any of the 2024 Notes in the open market.


As of December 31, 2017,September 30, 2020, there were $75.0$300.0 million of 20242025 Notes outstanding, which had a carrying value and fair value of $73.6$294.5 million and $75.6$301.4 million, respectively. As of December 31, 2017, the
2024 Notes were listed on the New York Stock Exchange under the trading symbol “OSLE” with a par value of $25.00 per note.
2028 Notes
For each of the three months ended December 31, 2017 and December 31, 2016, we recorded interest expense of $1.4 million related to our 6.125% unsecured notes due 2028, or the 2028 Notes. During the three months ended December 31, 2017 and December 31, 2016, we did not repurchase any of the 2028 Notes in the open market.
As of December 31, 2017, there were $86.3 million of 2028 Notes outstanding, which had a carrying value and fair value of $84.3 million and $86.9 million, respectively. As of December 31, 2017, the 2028 Notes were listed on the NASDAQ Global Select Market under the trading symbol “OCSLL” with a par value of $25.00 per note.
Secured Borrowings
We follow the guidance in ASC Topic 860, Transfers and Servicing when accounting for loan participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet the definition of a "participating interest," as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain on our Consolidated Statements of Assets and Liabilities and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value.
As of December 31, 2017, there were $13.5 million of secured borrowings outstanding. As of December 31, 2017, secured borrowings at fair value totaled $11.6 million and the fair value of the loan that is associated with these secured borrowings was $40.6 million. These secured borrowings were the result of the completion of partial loan sales totaling $22.8 million of a senior secured debt investment during the fiscal year ended September 30, 2014 that did not meet the definition of a participating interest. As a result, sale treatment was not allowed and these partial loan sales were treated as secured borrowings. During the three months ended December 31, 2017, there were no net repayments on secured borrowings. During the three months ended December 31, 2016, there were $4.5 million of net repayments on secured borrowings.
For the three months ended December 31, 20172019, we recorded interest expense of $1.2 million (inclusive of fees) related to our 5.875% notes due 2024, or the 2024 Notes.
On March 2, 2020, we redeemed 100%, or $75.0 million aggregate principal amount, of the issued and outstanding 2024 Notes. The redemption price per 2024 Note was $25 plus accrued and unpaid interest. As of December 31, 2016, the secured borrowings bore interest at a weighted average interest rate of 7.91%2020 and 8.94%, respectively. September 30, 2020, there were no 2024 Notes outstanding.
2028 Notes
For the three months ended December 31, 2017 and December 31, 2016,2019, we recorded interest expense of $0.3$1.4 million and $0.4 million, respectively,(inclusive of fees) related to our 6.125% notes due 2028, or the secured borrowings.2028 Notes.
On March 13, 2020, we redeemed 100%, or $86.3 million aggregate principal amount, of the issued and outstanding 2028 Notes. The redemption price per 2028 Note was $25 plus accrued and unpaid interest. As of December 31, 2020 and September 30, 2020, there were no 2028 Notes outstanding.
Off-Balance Sheet Arrangements
We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of December 31, 2017,2020, our only off-balance sheet arrangements consisted of $98.7$197.6 million of unfunded commitments, which was comprised of $88.0$192.8 million to provide debt financing to certain of our portfolio companies, $1.3 million to provide equity financing to SLF JV I and $9.4$3.5 million related to unfunded limited partnership interests. As of September 30, 2017,2020, our only off-balance sheet arrangements consisted of $118.1$157.5 million of unfunded commitments, which was comprised of $107.3$152.7 million to provide debt financing to certain of our portfolio companies, $1.3 million to provide equity financing to SLF JV I and $9.5$3.5 million related to unfunded limited partnership interests. Such commitments are subject to our portfolio companies' satisfaction of certain financial and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in excess of the amount recognized in our Consolidated Statements of Assets and Liabilities.
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A list of unfunded commitments by investment (consisting of revolvers, term loans with delayed draw components, SLF JV I subordinated notes and LLC equity interests, and limited partnership interests) as of December 31, 20172020 and September 30, 20172020 is shown in the table below:


  December 31, 2017 September 30, 2017
 Lift Brands Holdings, Inc. $15,000
 $15,000
 P2 Upstream Acquisition Co. 10,000
 10,000
 Valet Merger Sub, Inc. 9,326
 9,326
 Edge Fitness, LLC 6,215
 8,353
 InMotion Entertainment Group, LLC 5,545
 7,544
 EOS Fitness Opco Holdings, LLC 5,000
 5,000
 Dominion Diagnostics, LLC (1) 4,180
 4,180
 Impact Sales, LLC 3,236
 3,234
 Pingora MSR Opportunity Fund I, LP (limited partnership interest) 3,095
 2,760
 WeddingWire, Inc. 3,000
 3,000
 Keypath Education, Inc. 3,000
 3,000
 Motion Recruitment Partners LLC 2,900
 2,900
 OmniSYS Acquisition Corporation 2,500
 2,500
 Ping Identity Corporation 2,500
 2,500
 Datto Inc. 2,356
 —
 Traffic Solutions Holdings, Inc. 2,248
 2,998
 4 Over International, LLC 2,232
 2,232
 New IPT, Inc. 2,229
 2,229
 Refac Optical Group 2,080
 2,080
 SPC Partners VI, L.P. (limited partnership interest) 1,862
 2,000
 Metamorph US 3, LLC (1) 1,470
 1,470
 TransTrade Operators, Inc. (1)(2) 1,393
 1,052
 Senior Loan Fund JV 1, LLC 1,328
 1,328
 Edmentum, Inc. (1) 932
 2,664
 Riverside Fund V, LP (limited partnership interest) 539
 539
 Webster Capital III, L.P. (limited partnership interest) 482
 736
 Sterling Capital Partners IV, L.P. (limited partnership interest) 474
 490
 Tailwind Capital Partners II, L.P. (limited partnership interest) 469
 391
 Beecken Petty O'Keefe Fund IV, L.P. (limited partnership interest) 468
 472
 Ministry Brands, LLC 375
 1,708
 Moelis Capital Partners Opportunity Fund I-B, L.P. (limited partnership interest) 365
 365
 RCP Direct II, LP (limited partnership interest) 364
 364
 Cenegenics, LLC (1) 297
 297
 Riverside Fund IV, LP (limited partnership interest) 254
 254
 ACON Equity Partners III, LP (limited partnership interest) 231
 239
 Bunker Hill Capital II (QP), LP (limited partnership interest) 183
 183
 RCP Direct, LP (limited partnership interest) 178
 184
 SPC Partners V, L.P. (limited partnership interest) 148
 159
 Riverlake Equity Partners II, LP (limited partnership interest) 129
 129
 Milestone Partners IV, LP (limited partnership interest) 84
 180
 Baird Capital Partners V, LP (limited partnership interest) 54
 —
 BeyondTrust Software, Inc. —
 5,995
 Thing5, LLC —
 3,000
 Garretson Firm Resolution Group, Inc. —
 508
 Sailpoint Technologies, Inc. —
 1,500
 Systems, Inc. —
 3,030
Total $98,721
 $118,073
December 31, 2020September 30, 2020
Assembled Brands Capital LLC$33,326 $36,079 
WPEngine, Inc.26,348 26,348 
NuStar Logistics, L.P.17,911 17,911 
Athenex, Inc.17,085 22,780 
FFI Holdings I Corp16,529 0 
Thrasio, LLC11,355 0 
Jazz Acquisition, Inc.10,147 0 
Gulf Operating, LLC10,064 0 
Latam Airlines Group S.A.8,177 0 
MRI Software LLC6,473 7,239 
NeuAG, LLC4,382 4,382 
Corrona, LLC3,968 5,189 
Olaplex, Inc.3,834 1,917 
Pingora MSR Opportunity Fund I-A, LP3,500 3,500 
Dominion Diagnostics, LLC3,449 5,887 
Mindbody, Inc.3,048 3,048 
Ardonagh Midco 3 PLC2,506 3,007 
Accupac, Inc.2,346 2,346 
Acquia Inc.2,240 2,240 
New IPT, Inc.2,229 2,229 
ADB Companies, LLC1,667 — 
Apptio, Inc.1,538 1,538 
Telestream Holdings Corporation1,417 — 
Senior Loan Fund JV I, LLC1,328 1,328 
Ministry Brands, LLC1,000 425 
Coyote Buyer, LLC942 942 
Immucor, Inc.541 541 
GKD Index Partners, LLC231 231 
A.T. Holdings II SÀRL— 7,541 
iCIMs, Inc.— 882 
Total$197,581 $157,530 
 ___________ 
(1) This investment was on cash or PIK non-accrual status as of December 31, 2017 and September 30, 2017.
(2) This portfolio company does not have the ability to draw on this unfunded commitment as of December 31, 2017.



Contractual Obligations
The following table reflects information pertaining to our principal debt outstanding under the ING facility, the Sumitomo facility, the 2019 Notes, the 2024 Notes, the 2028 NotesCredit Facility and our secured borrowings:2025 Notes:
Debt Outstanding
as of September 30, 2020		Debt Outstanding
as of December 31, 2020		Weighted average debt
outstanding for the
three months ended
December 31, 2020		Maximum debt
outstanding for the three months ended
December 31, 2020
Credit Facility$414,825 $400,025 $403,403 $414,825 
2025 Notes300,000 300,000 300,000 300,000 
Total debt$714,825 $700,025 $703,403 
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  Debt Outstanding
as of September 30, 2017		 
Debt Outstanding
as of December 31, 2017
 
Weighted average debt
outstanding for the
three months ended
December 31, 2017
 
Maximum debt
outstanding
for the three months ended
December 31, 2017
ING facility (1) $226,495
 $205,000
 $209,449
 $226,495
Sumitomo facility 29,500
 —
 17,636
 29,500
2019 Notes 250,000
 250,000
 250,000
 250,000
2024 Notes 75,000
 75,000
 75,000
 75,000
2028 Notes 86,250
 86,250
 86,250
 86,250
Secured borrowings 13,489
 13,489
 13,489
 13,489
Total debt $680,734
 $629,739
 $651,824
 
 ___________ 
(1) Includes the Prior ING facility for periods prior to November 30, 2017.

The following table reflects our contractual obligations arising from the ING facility, our secured borrowings, our 2019 Notes, our 2024 NotesCredit Facility and our 2028the 2025 Notes:
 
  Payments due by period as of December 31, 2017
Contractual Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years
ING facility $205,000
 $—
 $—
 $205,000
 $—
Interest due on ING facility 30,048
 7,675
 15,350
 7,023
 —
Secured borrowings 13,489
 —
 13,489
 —
 —
Interest due on secured borrowings 1,688
 607
 1,081
 —
 —
2019 Notes 250,000
 —
 250,000
 —
 —
Interest due on 2019 Notes 14,191
 12,188
 2,003
 —
 —
2024 Notes 75,000
 —
 —
 —
 75,000
Interest due on 2024 Notes 30,119
 4,406
 8,813
 8,813
 8,087
2028 Notes 86,250
 —
 —
 —
 86,250
Interest due on 2028 Notes 54,608
 5,283
 10,566
 10,566
 28,193
Total $760,393
 $30,159
 $301,302
 $231,402
 $197,530
 Payments due by period as of December 31, 2020
Contractual ObligationsTotalLess than 1 year1-3 years3-5 yearsMore than 5 years
Credit Facility$400,025 $— $— $400,025 $— 
Interest due on Credit Facility27,570 8,751 17,501 1,318 — 
2025 Notes300,000 — — 300,000 — 
Interest due on 2025 Notes43,640 10,500 21,000 12,140 — 
Total$771,235 $19,251 $38,501 $713,483 $— 

Regulated Investment Company Status and Distributions

We have qualified and elected to be treated as a RIC under Subchapter M of the Code.Code for tax purposes. As long as we continue to qualify as a RIC, we will not be subject to tax on our investment company taxable income (determined without regard to any deduction for dividends paid) or realized net capital gains, to the extent that such taxable income or gains is distributed, or deemed to be distributed as dividends, to stockholders on a timely basis.
Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation. Distributions declared and paid by us in a taxable year may differ from taxable income for that taxable year as such distributions may include the distribution of taxable income derived from the current taxable year or the distribution of taxable income derived from the prior taxable year carried forward into and distributed in the current taxable year. Distributions also may include returns of capital.
To maintain RIC tax treatment, we must, among other things, distribute dividends, with respect to each taxable year, of an amount at least equal to 90% of our investment company taxable income (i.e., our net ordinary income and our realized net short-term capital gains in excess of realized net long-term capital losses, if any), determined without regard to any deduction for dividends paid. As a RIC, we are also subject to a federal excise tax, based on distribution requirements of our taxable income on a calendar year basis. We anticipate timely


distribution of our taxable income in accordance with tax rules. We did not incur a U.S. federal excise tax for calendar years 20152019 and 2016 and do not expect to incur a U.S. federal excise tax for the calendar year 2017.2020. We may incur a federal excise tax in future years.
We intend to distribute at least 90% of our annual taxable income (which includes our taxable interest and fee income) to our stockholders. The covenants contained in the ING facilityCredit Facility may prohibit us from making distributions to our stockholders, and, as a result, could hinder our ability to satisfy the distribution requirement associated with our ability to be subject to tax as a RIC. In addition, we may retain for investment some or all of our net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) and treat such amounts as deemed distributions to our stockholders. If we do this, our stockholders will be treated as if they received actual distributions of the capital gains we retained and then reinvested the net after-tax proceeds in our common stock. Our stockholders also may be eligible to claim tax credits (or, in certain circumstances, tax refunds) equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. To the extent our taxable earnings for a fiscal and taxable year fall below the total amount of our dividend distributions for that fiscal and taxable year, a portion of those distributions may be deemed a return of capital to our stockholders.
We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a business development companyBusiness Development Company under the 1940Investment Company Act and due to provisions in our credit facilities and debt instruments. If we do not distribute a certain percentage of our taxable income annually, we will suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.
A RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder elects to receive his or her entire distribution in either cash or stock of the RIC, subject to certain limitations regarding the aggregate amount of cash to be distributed to all stockholders. If these and certain other requirements are met, for U.S federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. We have no current intention of paying dividends in shares of our stock in accordance with these guidelines.
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We may generate qualified net interest income or qualified net short-term capital gains that may be exempt from U.S. withholding tax when distributed to foreign stockholders. A RIC is permitted to designate distributions of qualified net interest income and qualified short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation. The following table, which may be subject to change as we finalize our annual tax filings, lists the percentage of qualified net interest income and qualified short-term capital gains as offor the year ended September 30, 2017, the Company's2020, our last tax year end.
Year EndedQualified Net Interest IncomeQualified Short-Term Capital Gains
September 30, 2017202085.883.4 %—
We have adopted a DRIP that provides for the reinvestment of any distributions that we declare in cash on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board of Directors declares a cash distribution, then our stockholders who have not “opted out” of the DRIP will have their cash distributions automatically reinvested in additional shares of our common stock, rather than receiving a cash distribution. If our shares are trading at a premium to net asset value, we typically issue new shares to implement the DRIP, with such shares issued at the greater of the most recently computed net asset value per share of our common stock or 95% of the current market value per share of our common stock on the payment date for such distribution. If our shares are trading at a discount to net asset value, we typically purchase shares in the open market in connection with our obligations under the DRIP.
Related Party Transactions
We have entered into the New Investment Advisory Agreement with our Investment AdviserOaktree and the New Administration Agreement with Oaktree Administrator, a wholly-owned subsidiaryan affiliate of the Investment Adviser.Oaktree. Mr. John B. Frank, an interested member of our Board of Directors, has an indirect pecuniary interest in our Investment Adviser. The Investment AdviserOaktree. Oaktree is a registered investment adviser under the Investment Advisers Act of 1940, as amended, or the Advisers Act, that is partially and indirectly owned by OCG. See “Note“Note 11. Related Party Transactions-NewTransactions – Investment Advisory Agreement”Agreement” and “-Administrative Services”“– Administrative Services” in the notes to the accompanying Consolidated Financial Statements.
Prior to October 17, 2017, we were externally managed and advised by our Former Adviser, and our administrator was our Former Administrator, a wholly-owned subsidiary of our Former Adviser. Messrs. Bernard D. Berman, Patrick J. Dalton, Ivelin M. Dimitrov, Alexander C. Frank, Todd G. Owens and Sandeep K. Khorana, each an interested member of our Board of Directors for all or a portion of our fiscal year ended September 30, 2017 and prior to October 17, 2017, had a direct or indirect pecuniary interest in our Former Adviser. See “Note 11. Related Party Transactions-Former Investment Advisory Agreements” and “-Administrative Services” in the notes to the accompanying Consolidated Financial Statements.
Recent Developments
Registration Statement on Form N-14 and Stockholder Meetings
On February 5, 2018,January 19, 2021, we filed an amended registration statement on Form N-14, which included a joint proxy statement of us and OCSI and our prospectus. The registration statement on Form N-14 was declared effective by the SEC on January 21, 2021. On January 21, 2021, we filed our final joint proxy statement/prospectus with the SEC, which was mailed on or about January 21, 2021 to our stockholders of record as of January 19, 2021. Our annual meeting of stockholders and OCSI’s special meeting of stockholders are both scheduled for March 15, 2021 to vote on the matters described in the joint proxy statement/prospectus as required by the Merger Agreement.
Distribution Declaration
On January 29, 2021, our Board of Directors declared a quarterly dividenddistribution of $0.085$0.12 per share, payable in cash on March 30, 201831, 2021 to stockholders of record on March 15, 2018.2021.


Recently Issued Accounting Standards
See “Note 2. Significant Accounting Policies” in the Consolidated Financial Statements for a description of recent accounting pronouncements, including the expected dates of adoption and the anticipated impact on our Consolidated Financial Statements.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in the valuations of our investment portfolio and interest rates.
Valuation Risk
Our investments may not have a readily available market price, and we value these investments at fair value as determined in good faith by our Board of Directors, with the assistance of the Audit Committee and Oaktree. There is no single standard for determining fair value in good faith and valuation methodologies involve a significant degree of management judgment. In addition, our valuation methodology utilizes discount rates in part in valuing our investments, and changes in those discount rates may have an impact on the valuation of our investments. Accordingly, valuations by us do not necessarily represent the amounts which may eventually be realized from sales or other dispositions of investments. Estimated fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the financial statements.
Interest Rate Risk
We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding and our interest income from portfolio investments, cash and cash equivalents and idle fundsfund investments. Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs. Our investment income will be affected by changes in various interest rates, including LIBOR and prime rates, to the extent our debt investments include floating interest rates. In addition, our investments are carried at fair value as determined in good faith by our Board of Directors in accordance with the 1940 Act. Our valuation methodology utilizes discount rates in part in valuing our investments, and changes in those discount rates may have an impact on the valuation of our investments.
As of December 31, 2017, 82.4%2020, 88.8% of our debt investment portfolio (at fair value) and 80.5%89.6% of our debt investment portfolio (at cost) bore interest at floating rates. The composition of our floating rate debt investments by cash interest rate floor (excluding PIK) as of December 31, 20172020 and September 30, 20172019 was as follows: 
 December 31, 2020September 30, 2020
($ in thousands)Fair Value% of Floating Rate PortfolioFair Value% of Floating Rate Portfolio
0%$528,798 36.8 %$553,829 42.2 %
>0% and <1%111,845 7.8 %39,789 3.0 %
1%748,573 52.1 %672,529 51.3 %
>1%46,855 3.3 %45,362 3.5 %
Total Floating Rate Investments$1,436,071 100.0 %$1,311,509 100.0 %
  December 31, 2017 September 30, 2017
($ in thousands) Fair Value 
% of Floating
Rate Portfolio
 Fair Value 
% of Floating
Rate Portfolio
Under 1% $189,683
 17.71% $201,365
 16.91%
1% to under 2% 881,158
 82.29
 989,575
 83.09
2% to under 3% —
 —
 —
 —
3% and over —
 —
 —
 —
Total $1,070,841
 100.00% $1,190,940
 100.00%

Based on our Consolidated Statement of Assets and Liabilities as of December 31, 2017,2020, the following table shows the approximate annualized net increase (decrease) in components of net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in our investment and capital structure:structure. However, there can be no assurances our portfolio companies will be able to meet their contractual obligations at any or all levels on increases in interest rates.
($ in thousands)
Basis point increaseIncrease in Interest Income(Increase) in Interest ExpenseNet increase (decrease) in net assets resulting from operations
250$29,066 $(10,001)$19,065 
20021,838 (8,001)13,837 
15014,610 (6,000)8,610 
1007,471 (4,000)3,471 
502,703 (2,000)703 

The net effect of any decrease in interest rates is limited and would not be of significance due to interest rate floors on investments and borrowings outstanding.
98
($ in thousands)      
Basis point increase(1) 
Interest
income
 
Interest
expense
 
Net increase
(decrease)
300 31,300
 (6,100) 25,200
200 20,800
 (3,900) 16,900
100 10,200
 (1,800) 8,400

Basis point decrease (1) Interest Income Interest Expense Net increase (decrease)
100 (7,800) 2,200
 (5,600)

(1)A decline in interest rates of 200 basis points or greater would not have a material incremental impact on our Consolidated Financial Statements as compared to a 100 basis point decrease.


We regularly measure exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on this review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. The following table shows a comparison of the interest rate base for our interest-bearing cash and outstanding investments, at principal, and our outstanding borrowings as of December 31, 20172020 and September 30, 2017:2020: 
 December 31, 2020September 30, 2020
($ in thousands)Interest Bearing
Cash and
Investments		BorrowingsInterest Bearing
Cash and
Investments		Borrowings
Money market rate$20,966 $— $35,248 $— 
Prime rate305 — 305 — 
LIBOR
30 day749,525 400,025 717,576 414,825 
60 day9,000 — 6,861 — 
90 day466,373 — 362,141 — 
180 day167,349 — 201,699 — 
360 day15,007 — 23,351 — 
EURIBOR
30 day30,391 — 29,126 — 
180 day1,762 — 1,689 — 
UK LIBOR
30 day24,605 — 23,270 — 
180 day15,450 — 14,612 — 
Fixed rate162,980 300,000 171,976 300,000 
Total$1,663,713 $700,025 $1,587,854 $714,825 

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  December 31, 2017 September 30, 2017
($ in thousands) 
Interest Bearing
Cash and
Investments
 Borrowings Interest Bearing
Cash and
Investments		 Borrowings
Money market rate $45,754
 $—
 $59,913
 $—
Prime rate 2,756
 —
 1,061
 —
LIBOR        
30 day 41,802
 205,000
 42,165
 255,993
90 day 1,168,248
 13,489
 1,254,246
 13,491
Fixed rate 298,287
 411,250
 290,427
 411,250
Total $1,556,847
 $629,739
 $1,647,812
 $680,734



Item 4. Controls and Procedures

Management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2017.2020. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives. Based on the evaluation of our disclosure controls and procedures as of December 31, 2017,2020, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, in timely identifying, recording, processing, summarizing and reporting any material information relating to us that is required to be disclosed in the reports we file or submit under the Exchange Act.

Effective October 17, 2017, Oaktree became our investment adviser. During the three months ended December 31, 2017 in connection with Oaktree assuming its role as our investment adviser, we adopted new controls and procedures, including formalized policies and procedures and controls over the validation of portfolio company data. As a result of the adoption of such controls and procedures and the changes to our internal controls and procedures that resulted during the three months ended December 31, 2017, management has determined that, as of December 31, 2017, the previously disclosed material weakness in our internal control over financial reporting had been remediated.

Other than the changes described above, thereThere were no changes in our internal control over financial reporting that occurred during the first fiscal quarter of 2018three months ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



PART II — OTHER INFORMATION

Item 1.     Legal Proceedings
Although we may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise,Other than as described below, we are currently not a party to any pending material legal proceedings except as described below.proceedings.
SEC ExaminationOn December 18, 2020, putative stockholder Oklahoma Firefighters Pension and Investigation
On March 23, 2016, the DivisionRetirement System filed a complaint on behalf of Enforcement of the SEC sent document subpoenasitself and document preservation notices to us, FSAM, FSCO GP LLC - General Partner of Fifth Street Opportunities Fund, L.P., or FSOF, and OCSI. The subpoenas sought production of documents relating to a variety of issues principally related to the activitiesall other similarly situated holders of our Former Adviser, including those raised in an ordinary-course examinationcommon stock and derivatively on behalf of the Former Adviser by the SEC’s Office of Compliance Inspections and Examinations that began in October 2015, andus as nominal defendant in the previously disclosed securities class actionsDelaware Court of Chancery, captioned Oklahoma Firefighters Pension and other previously disclosed litigation.Retirement System v. Frank, et al., No. 2020-1075-VCM (Del. Ch.). This lawsuit is referred to herein as the “Merger Litigation”. The subpoenas were issued pursuant toMerger Litigation alleges a formal orderdirect breach of private investigation captioned In the Matter of the Fifth Street Group of Companies, No. HO-12925, dated March 23, 2016, which addresses (among other things) (i) the valuation of our portfolio companies and investments, (ii) the expenses allocated or charged to us and OCSI, (iii) FSOF’s trading in the securities of publicly traded business development companies, (iv) statements tofiduciary duty claim against our board of directors other representativesin connection with the solicitation of pooled investment vehicles, investors, or prospective investors concerning the fair valueapproval by our stockholders of the issuance of shares of our portfolio companies or investments as well as expenses allocated or chargedcommon stock to us be issued pursuant to the Merger Agreement and OCSI, (v) various issuesa derivative breach of fiduciary duty claim against our board of directors in connection with its negotiation and approval of the Mergers. The Merger Litigation alleges, among other things, that the members of our board of directors had certain conflicts of interest in the negotiation and approval of the Mergers and that the initial filing of the joint proxy statement/prospectus relating to adoption the Mergers omitted certain information that the plaintiff claims is material. The Merger Litigation, among other things, requests that the court enjoin the vote of our stockholders with respect to the approval of the issuance of shares of our common stock to be issued pursuant to the Merger Agreement and implementationaward attorneys’ fees and damages in an unspecified amount.

The defendants believe that we previously made complete disclosure of policiesall information required to be disclosed to ensure that our stockholders can make an informed vote at the Annual Meeting of Stockholders and procedures underthat the Advisers Act, (vi) statementsadditional disclosures requested by the plaintiff are immaterial and/or potential omissionswere included in the entities’ SEC filings, (vii)preliminary joint proxy statement/prospectus filed as part of our Registration Statement on Form N-14 on November 23, 2020. Accordingly, the entities’ books, records,defendants believe these claims are without merit and accountsintend to vigorously defend against them. However, in an attempt to reduce the costs, risks and whether they fairlyuncertainties inherent in litigation and accurately reflectedto maximize our net asset value at the entities’ transactions and dispositions of assets, and (viii) several other issues relating to corporate books and records. The formal order cites various provisionstime of the Securities ActMergers, we determined to voluntarily include certain supplemental disclosures in the amendment to our Registration Statement on Form N-14 filed on January 19, 2021. The inclusion of 1933, as amended, the Exchange Act and the Advisers Act, as well as rules promulgated under those Acts, as the basessuch disclosures shall not be deemed an admission of the investigation. We are cooperating withlegal necessity or materiality of any of these disclosures under applicable law. Rather, we and our board of directors specifically deny all allegations in the Division of Enforcement investigation, have produced requested documents, and have been communicating with Division of Enforcement personnel. Our Investment AdviserMerger Litigation that any additional disclosure was or is not subject to these subpoenas.required.


Item 1A. Risk Factors
There have been no material changes during the three months ended December 31, 20172020 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2017.2020.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
None.
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Item 3. Defaults Upon Senior Securities
None.

Item 4.     Mine Safety Disclosures
Not applicable.


Item 5. Other Information
None.


Item 6. Exhibits

3.12.1^
Restated CertificateAgreement and Plan of Incorporation ofMerger among Oaktree Strategic Income Corporation, the Registrant, Lion Merger Sub, Inc. and Oaktree Fund Advisors LLC (for the limited purposes set forth therein), dated as of October 28, 2020 (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-A (File No. 001-33901) filed on January 2, 2008).


3.2
Certificate of Amendment to the Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit (a)(2) filed with Registrant’s Registration Statement on Form N-2 (File No. 333-146743) filed on June 6, 2008).


3.3
Certificate of Correction to the Certificate of Amendment to the Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit (a)(3) filed with Registrant’s Registration Statement on Form N-2 (File No. 333-146743) filed on June 6, 2008).


3.4
Certificate of Amendment to Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Quarterly Report on Form 10-Q (File No. 001-33901) filed on May 5, 2010).
3.5
Certificate of Amendment to Registrant’s Certificate of Incorporation (Incorporated by reference to Exhibit (a)(5) filed with the Registrant’s Registration Statement on Form N-2 (File No. 333-180267) filed on April 2, 2013).
3.6
Certificate of Amendment to the Restated Certificate of Incorporation of the Company, dated as of October 17, 2017 (Incorporated by reference to Exhibit 3.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).


3.7
Third Amended and Restated Bylaws of the Registrant (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-K (File No. 001-33901) filed on September 2, 2016).
3.8
Fourth Amended and Restated Bylaws of Oaktree Specialty Lending Corporation, effective as of January 29, 2018 (Incorporated by reference to Exhibit 3.12.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-00755) filed on JanuaryOctober 29, 2018)2020).
4.110.1
Fourth Supplemental Indenture, dated as of October 17, 2017, between RegistrantIncremental Commitment and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
4.2
Form of Note relating to the 4.875% Notes due 2019, between Registrant and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.2 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
4.3
Form of Note relating to the 5.875% Notes due 2024, between Registrant and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.3 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
4.4
Form of Note relating to the 6.125% Notes due 2028, between Registrant and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.4 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.1
Investment AdvisoryAssumption Agreement, dated as of October 17, 2017, between28, 2020, made by the Registrant, as Borrower, the assuming lender party hereto, as assuming lender, and OaktreeING Capital Management, L.P. (Incorporated by referenceLLC, as administrative agent and issuing bank relating to Exhibit 10.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.2
Administration Agreement, dated as of October 17, 2017, between the Registrant and Oaktree Fund Administration, LLC (Incorporated by reference to Exhibit 10.2 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.3
Pledge Agreement, dated as of October 17, 2017, between the Registrant and Fifth Street Holdings L.P. (Incorporated by reference to Exhibit 10.3 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.4
Amendment No. 9 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of November 17, 2017,February 25, 2019 among the Registrant, FSFC Holdings, Inc., Fifth Street Fund of Funds LLC,as Borrower, the lenders party thereto, and ING Capital LLC, as administrative agent, for the lenders party theretoING Capital LLC, JPMorgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-00755) filed on November 22, 2017)October 29, 2020).
10.510.2
Amendment No. 3 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of November 30, 2017,December 10, 2020, among the Registrant, as Borrower, the lenders party thereto from time to time and ING Capital LLC, as administrative agent for the lenders thereunder (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-00755) filed on December 14, 2020).
10.3
Incremental Commitment Agreement, dated as of December 28, 2020, made by the Registrant, as Borrower, MUFG Union Bank, N.A., as increasing lender, and ING Capital LLC, as administrative agent and issuing bank relating to the Amended and Restated Senior Secured Revolving Credit Agreement, dated as of February 25, 2019 among the Registrant, as Borrower, the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-00755) filed on December 1, 2017)29, 2020).



31.1*
  Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2*
  Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1*
  Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.2*
  Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

*Filed herewith.
^Exhibits and schedules to Exhibit 2.1 have been omitted in accordance with Item 601 of Regulation S-K. The Registrant agrees to furnish supplementally a copy of all omitted exhibits and schedules to the SEC upon its request.

101

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
OAKTREE SPECIALTY LENDING CORPORATION
By: /s/   Edgar LeeArmen Panossian
 
Edgar Lee



Armen Panossian
 Chief Executive Officer
By: /s/    Mel Carlisle
 
Mel Carlisle

 Chief Financial Officer and Treasurer
Date: February 7, 20183, 2021






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