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, 2017June 30, 2022
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  ¨
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 140,960,651183,374,250 shares of common stock outstanding as of February 7, 2018.August 2, 2022.




OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2017JUNE 30, 2022



TABLE OF CONTENTS

Item 5.



 




 












1



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)
June 30, 2022 (unaudited)September 30, 2021
ASSETS
Investments at fair value:
Control investments (cost June 30, 2022: $262,244; cost September 30, 2021: $283,599)$222,858 $270,765 
Affiliate investments (cost June 30, 2022: $24,617; cost September 30, 2021: $18,763)23,427 18,289 
Non-control/Non-affiliate investments (cost June 30, 2022: $2,378,626; cost September 30, 2021: $2,236,759)2,319,104 2,267,575 
Total investments at fair value (cost June 30, 2022: $2,665,487; cost September 30, 2021: $2,539,121)2,565,389 2,556,629 
Cash and cash equivalents34,306 29,334 
Restricted cash2,009 2,301 
Interest, dividends and fees receivable29,130 22,125 
Due from portfolio companies6,881 1,990 
Receivables from unsettled transactions3,274 8,150 
Due from broker36,340 1,640 
Deferred financing costs7,918 9,274 
Deferred offering costs32 34 
Deferred tax asset, net1,698 714 
Derivative assets at fair value1,134 1,912 
Other assets1,267 2,284 
Total assets$2,689,378 $2,636,387 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$2,324 $3,024 
Base management fee and incentive fee payable15,563 32,649 
Due to affiliate3,540 4,357 
Interest payable8,356 4,597 
Director fees payable38 — 
Payables from unsettled transactions8,556 8,086 
Derivative liability at fair value30,866 2,108 
Credit facilities payable745,000 630,000 
Unsecured notes payable (net of $5,390 and $6,501 of unamortized financing costs as of June 30, 2022 and September 30, 2021, respectively)611,606 638,743 
Total liabilities1,425,849 1,323,564 
Commitments and contingencies (Note 13)
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 183,374 and 180,361 shares issued and outstanding as of June 30, 2022 and September 30, 2021, respectively1,834 1,804 
Additional paid-in-capital1,826,498 1,804,354 
Accumulated overdistributed earnings(564,803)(493,335)
Total net assets (equivalent to $6.89 and $7.28 per common share as of June 30, 2022 and September 30, 2021, respectively) (Note 11)1,263,529 1,312,823 
Total liabilities and net assets$2,689,378 $2,636,387 
  
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.
2



Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, 2022Three months ended June 30, 2021Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Interest income:
Control investments$3,400 $3,405 $10,214 $8,122 
Affiliate investments470 189 1,170 437 
Non-control/Non-affiliate investments50,707 48,403 155,656 110,720 
Interest on cash and cash equivalents151 157 
Total interest income54,728 51,999 167,197 119,287 
PIK interest income:
Non-control/Non-affiliate investments5,178 4,597 14,515 11,487 
Total PIK interest income5,178 4,597 14,515 11,487 
Fee income:
Control investments12 13 38 46 
Affiliate investments15 15 
Non-control/Non-affiliate investments2,258 7,805 5,039 13,392 
Total fee income2,275 7,823 5,092 13,453 
Dividend income:
Control investments875 1,019 5,491 1,358 
Non-control/Non-affiliate investments81  81 — 
Total dividend income956 1,019 5,572 1,358 
Total investment income63,137 65,438 192,376 145,585 
Expenses:
Base management fee9,819 8,905 29,853 22,520 
Part I incentive fee6,497 6,990 19,658 15,583 
Part II incentive fee(6,796)2,837 (8,791)15,986 
Professional fees885 1,059 3,029 2,943 
Directors fees160 147 443 447 
Interest expense11,870 8,823 31,178 21,486 
Administrator expense271 421 968 1,047 
General and administrative expenses811 716 2,217 2,009 
Total expenses23,517 29,898 78,555 82,021 
Fees waived(750)(750)(2,250)(858)
Net expenses22,767 29,148 76,305 81,163 
Net investment income before taxes40,370 36,290 116,071 64,422 
(Provision) benefit for taxes on net investment income— (358)(3,308)(358)
Net investment income40,370 35,932 112,763 64,064 
Unrealized appreciation (depreciation):
Control investments(16,991)3,590 (26,552)30,336 
Affiliate investments(328)109 (716)213 
Non-control/Non-affiliate investments(67,806)(898)(90,333)83,842 
Foreign currency forward contracts(1,630)1,116 (778)2,226 
Net unrealized appreciation (depreciation)(86,755)3,917 (118,379)116,617 
Realized gains (losses):
Control investments— — 1,868 — 
Non-control/Non-affiliate investments416 9,350 5,888 26,267 
Foreign currency forward contracts8,796 (740)12,179 (3,586)
Net realized gains (losses)9,212 8,610 19,935 22,681 
(Provision) benefit for taxes on realized and unrealized gains (losses)(661)(1,421)1,696 (2,663)
Net realized and unrealized gains (losses), net of taxes(78,204)11,106 (96,748)136,635 
Net increase (decrease) in net assets resulting from operations$(37,834)$47,038 $16,015 $200,699 
Net investment income per common share — basic and diluted$0.22 $0.20 $0.62 $0.41 
Earnings (loss) per common share — basic and diluted (Note 5)$(0.21)$0.26 $0.09 $1.29 
Weighted average common shares outstanding — basic and diluted183,370 180,361 181,778 155,970 
  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.

3


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

Three months ended June 30, 2022Three months ended June 30, 2021Nine months ended June 30, 2022Nine months ended June 30, 2021
Operations:
Net investment income$40,370 $35,932 $112,763 $64,064 
Net unrealized appreciation (depreciation)(86,755)3,917 (118,379)116,617 
Net realized gains (losses)9,212 8,610 19,935 22,681 
(Provision) benefit for taxes on realized and unrealized gains (losses)(661)(1,421)1,696 (2,663)
Net increase (decrease) in net assets resulting from operations(37,834)47,038 16,015 200,699 
Stockholder transactions:
Distributions to stockholders(30,256)(23,447)(87,483)(55,868)
Net increase (decrease) in net assets from stockholder transactions(30,256)(23,447)(87,483)(55,868)
Capital share transactions:
Issuance of common stock in connection with the Mergers— — — 242,704 
Issuance of common stock under dividend reinvestment plan874 520 2,426 1,559 
Repurchases of common stock under dividend reinvestment plan(874)(520)(874)(1,559)
Issuance of common stock in connection with the "at the market" offering1,243 — 20,622 — 
Net increase (decrease) in net assets from capital share transactions1,243  22,174 242,704 
Total increase (decrease) in net assets(66,847)23,591 (49,294)387,535 
Net assets at beginning of period1,330,376 1,278,823 1,312,823 914,879 
Net assets at end of period$1,263,529 $1,302,414 $1,263,529 $1,302,414 
Net asset value per common share$6.89 $7.22 $6.89 $7.22 
Common shares outstanding at end of period183,374 180,361 183,374 180,361 
  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.
4

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
 


Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Operating activities:
Net increase (decrease) in net assets resulting from operations$16,015 $200,699 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net unrealized (appreciation) depreciation118,379 (116,617)
Net realized (gains) losses(19,935)(22,681)
PIK interest income(14,515)(11,487)
Accretion of original issue discount on investments(22,707)(18,032)
Accretion of original issue discount on unsecured notes payable509 403 
Amortization of deferred financing costs2,801 3,030 
Deferred taxes(984)112 
Purchases of investments(620,843)(714,791)
Proceeds from the sales and repayments of investments554,933 586,812 
Cash acquired in the Mergers— 20,945 
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable(9,456)(3,434)
(Increase) decrease in due from portfolio companies(4,891)1,956 
(Increase) decrease in receivables from unsettled transactions4,876 8,199 
(Increase) decrease in due from broker(34,700)(1,640)
(Increase) decrease in other assets1,017 (1,444)
Increase (decrease) in accounts payable, accrued expenses and other liabilities(700)476 
Increase (decrease) in base management fee and incentive fee payable(17,086)17,994 
Increase (decrease) in due to affiliate(817)1,773 
Increase (decrease) in interest payable3,759 1,844 
Increase (decrease) in payables from unsettled transactions470 10,110 
Increase (decrease) in director fees payable38 (90)
Net cash provided by (used in) operating activities(43,837)(35,863)
Financing activities:
Distributions paid in cash(85,057)(54,309)
Borrowings under credit facilities290,000 325,000 
Repayments of borrowings under credit facilities(175,000)(515,525)
Issuance of unsecured notes— 349,020 
Repayments of secured borrowings— (9,341)
Repurchases of common stock under dividend reinvestment plan(874)(1,559)
Shares issued under the "at the market" offering20,839 — 
Deferred financing costs paid(334)(7,844)
Offering costs paid(215)— 
Net cash provided by (used in) financing activities49,359 85,442 
Effect of exchange rate changes on foreign currency(842)(1,146)
Net increase (decrease) in cash and cash equivalents and restricted cash4,680 48,433 
Cash and cash equivalents and restricted cash, beginning of period31,635 39,096 
Cash and cash equivalents and restricted cash, end of period$36,315 $87,529 
Supplemental information:
Cash paid for interest$24,109 $15,583 
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan$2,426 $1,560 
Deferred financing costs— (592)
Issuance of shares in connection with the Mergers— 242,704 
Reconciliation to the Consolidated Statements of Assets and LiabilitiesJune 30, 2022September 30, 2021
Cash and cash equivalents$34,306 $29,334 
Restricted cash2,009 2,301 
Total cash and cash equivalents and restricted cash$36,315 $31,635 

See notes to Consolidated Financial Statements.
5

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 2017June 30, 2022
(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$— $— (15)
34,984,460.37 Preferred Units34,984 27,638 (15)
34,984 27,638 
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20247.26 %$16,074 16,074 16,074 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024— — — (6)(15)(19)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC15,222 9,267 (15)
31,296 25,341 
OCSI Glick JV LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+4.50% cash due 10/20/20284.94 %60,274 50,392 50,606  (6)(11)(15)(19)
87.5% equity interest— —  (11)(16)(19)
50,392 50,606 
Senior Loan Fund JV I, LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/20288.00 %96,250 96,250 96,250 (6)(11)(15)(19)
87.5% LLC equity interest49,322 23,023 (11)(12)(16)(19)
145,572 119,273 
 Total Control Investments (17.6% of net assets)$262,244 $222,858 
Affiliate Investments(17)
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.75% cash due 10/17/20239.00 %$21,754 $21,754 $21,260 (6)(15)(19)
1,609,201 Class A Units764 563 (15)
1,019,168.80 Preferred Units, 6%1,019 1,203 (15)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (15)
23,537 23,026 
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%1,080 401 (15)
1,080 401 
 Total Affiliate Investments (1.9% of net assets)$24,617 $23,427 
Non-Control/Non-Affiliate Investments(18)
109 Montgomery Owner LLCReal Estate Operating Companies
First Lien Term Loan, LIBOR+7.00% cash due 2/2/20238.33 %$2,178 $2,161 $2,306 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/2023— (27)30 (6)(15)(19)
2,134 2,336 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% PIK due 12/22/202233,200 33,122 33,283 (11)(15)
33,122 33,283 
Access CIG, LLCDiversified Support Services
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/20269.32 %20,000 19,921 19,200 (6)
19,921 19,200 
Accupac, Inc.Personal Products
First Lien Term Loan, SOFR+5.50% cash due 1/16/20267.59 %16,017 15,704 15,977 (6)(15)
First Lien Delayed Draw Term Loan, SOFR+5.50% cash due 1/16/2026— — (8)(6)(15)(19)
First Lien Revolver, SOFR+5.50% cash due 1/16/20267.59 %91 51 86 (6)(15)(19)
15,755 16,055 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.12 %27,349 27,012 27,213 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 10/31/20259.08 %269 243 257 (6)(15)(19)
27,255 27,470 
6
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20258.50 %$14,896 $14,384 $14,650 (6)(15)
14,384 14,650 
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.5,165 — (15)
5,165  
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %24,838 27,748 23,760 (6)(11)(15)
27,748 23,760 
AIP RD Buyer Corp.Distributors
Second Lien Term Loan, SOFR+7.75% cash due 12/23/20299.35 %$14,414 14,145 13,880 (6)(15)
14,410 Common Units in RD Holding LP1,352 1,295 (15)
15,497 15,175 
AirStrip Technologies, Inc.Application Software
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/202590 — (15)
90  
All Web Leads, Inc.Advertising
First Lien Term Loan, LIBOR+6.50% cash due 12/29/20238.07 %23,124 21,584 22,060 (6)(15)
21,584 22,060 
Altice Financing S.A.Integrated Telecommunication Services
Fixed Rate Bond, 5.75% cash due 8/15/2029300 248 242 (11)
248 242 
Altice France S.A.Integrated Telecommunication Services
Fixed Rate Bond, 5.50% cash due 10/15/20293,800 3,309 2,915 (11)
3,309 2,915 
Alvogen Pharma US, Inc.Pharmaceuticals
First Lien Term Loan, LIBOR+5.25% cash due 12/31/20237.50 %13,300 12,981 11,751 (6)
12,981 11,751 
Alvotech Holdings S.A.Biotechnology(13)
Tranche A Fixed Rate Bond 10.00% cash due 6/24/202524,043 23,720 24,043 (11)(15)
Tranche B Fixed Rate Bond 10.00% cash due 6/24/202523,522 23,240 23,522 (11)(15)
587,930 Common Shares in Alvotech SA5,349 4,827 
124,780 Seller Earn Out Shares in Alvotech SA444 309 (15)
52,753 52,701 
American Auto Auction Group, LLCConsumer Finance
Second Lien Term Loan, SOFR+8.75% cash due 1/2/202910.80 %14,760 14,481 14,317 (6)(15)
14,481 14,317 
American Tire Distributors, Inc.Distributors
First Lien Term Loan, LIBOR+6.25% cash due 10/20/20287.00 %9,920 9,796 9,404 (6)
9,796 9,404 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.92 %15,259 13,933 14,890 (6)(11)(15)
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/20279.67 %12,500 12,188 12,063 (6)(11)(15)
26,121 26,953 
Anastasia Parent, LLCPersonal Products
First Lien Term Loan, LIBOR+3.75% cash due 8/11/20256.00 %2,494 2,070 2,001 (6)
2,070 2,001 
Ankura Consulting Group LLCResearch & Consulting Services
Second Lien Term Loan, LIBOR+8.00% cash due 3/19/20299.18 %5,316 5,236 4,784 (6)(15)
5,236 4,784 
7
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, 2017June 30, 2022
(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+6.00% cash due 1/10/20257.25 %$34,458 $33,657 $33,680 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/10/20257.25 %892 859 842 (6)(15)(19)
34,516 34,522 
APX Group Inc.Electrical Components & Equipment
Fixed Rate Bond, 5.75% cash due 7/15/20292,075 1,724 1,610 (11)
1,724 1,610 
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+7.00% cash due 7/14/20268.00 %1,964 $2,178 $2,053 (6)(11)(15)
First Lien Term Loan, SONIA+7.00% cash due 7/14/20268.19 %£18,636 23,172 22,633 (6)(11)(15)
First Lien Term Loan, LIBOR+5.75% cash due 7/14/20266.50 %$10,519 10,346 10,309 (6)(11)(15)
First Lien Delayed Draw Term Loan, SONIA+5.75% cash due 7/14/2026£— (44)— (6)(11)(15)(19)
35,652 34,995 
ASP Unifrax Holdings, Inc.Trading Companies & Distributors
Fixed Rate Bond, 7.50% cash due 9/30/2029$5,500 5,406 3,828 
Fixed Rate Bond, 5.25% cash due 9/30/20282,500 2,210 2,000 
7,616 5,828 
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.92 %2,509 2,309 1,791 (6)
2,309 1,791 
Astra Acquisition Corp.Application Software
First Lien Term Loan, LIBOR+5.25% cash due 10/25/20286.92 %8,563 8,314 7,485 (6)
8,314 7,485 
athenahealth Group Inc.Health Care Technology
18,635 Shares of Series A Preferred Stock in Minerva Holdco, Inc., 10.75%18,264 17,153 (15)
18,264 17,153 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202616,155 15,617 15,751 (11)(15)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (274)(527)(11)(15)(19)
First Lien Revenue Interest Financing Term Loan due 5/31/20317,926 7,881 7,881 (6)(11)(15)
328,149 Common Stock Warrants (exercise price $0.4955) expiration date 6/19/2027973 43 (11)(15)
24,197 23,148 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.63 %22,483 22,123 21,336 (6)(11)(15)
22,123 21,336 
The AveryReal Estate Operating Companies
First Lien Term Loan in T8 Urban Condo Owner, LLC, LIBOR+7.30% cash due 2/17/20239.09 %15,874 15,757 16,040 (6)(15)
Subordinated Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/202314.53 %3,834 3,808 3,865 (6)(15)
19,565 19,905 
BAART Programs, Inc.Health Care Services
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.60 %2,269 2,226 2,204 (6)(15)(19)
Second Lien Term Loan, LIBOR+8.50% cash due 6/11/202810.17 %7,166 7,059 7,059 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 6/11/202810.17 %3,596 3,437 3,430 (6)(15)(19)
12,722 12,693 
8
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Berner Food & Beverage, LLCSoft Drinks
First Lien Term Loan, LIBOR+6.50% cash due 7/30/20277.50 %$33,162 $32,671 $32,034 (6)(15)
First Lien Revolver, PRIME+5.50% cash due 7/30/202610.25 %1,980 1,936 1,884 (6)(15)(19)
34,607 33,918 
BioXcel Therapeutics, Inc.Pharmaceuticals
First Lien Term Loan, 10.25% cash due 4/19/20275,322 5,099 5,109 (11)(15)
First Lien Delayed Draw Term Loan, 10.25% cash due 4/19/2027— — — (11)(15)(19)
First Lien Revenue Interest Financing Delayed Draw Term Loan due 9/30/2032— — — (6)(11)(15)(19)
21,177 Common Stock Warrants (exercise price $20.04) expiration date 4/19/2029125 120 (15)
5,224 5,229 
Blackhawk Network Holdings, Inc.Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20268.31 %30,625 30,252 30,038 (6)
30,252 30,038 
Blumenthal Temecula, LLCAutomotive Retail
First Lien Term Loan, 9.00% cash due 9/24/20233,979 3,980 3,960 (15)
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC1,293 1,280 (15)
298,460 Preferred Units in Unstoppable Automotive VMV, LLC298 295 (15)
298,460 Common Units in Unstoppable Automotive AMV, LLC298 373 (12)(15)
5,869 5,908 
Cadence Aerospace, LLCAerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash 2.00% PIK due 11/14/20237.74 %14,256 13,246 13,093 (6)(15)
13,246 13,093 
Carvana Co.Automotive Retail
Fixed Rate Bond, 5.625% cash due 10/1/20256,700 5,765 5,155 (11)
5,765 5,155 
CCO Holdings LLCCable & Satellite
Fixed Rate Bond, 4.50% cash due 5/1/20322,097 1,739 1,705 (11)
1,739 1,705 
CircusTrix Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+5.50% cash 1.50% PIK due 7/16/20237.17 %10,739 10,198 9,761 (6)(15)
10,198 9,761 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.67 %8,998 8,940 8,901 (6)
Fixed Rate Bond, 9.25% cash due 8/1/202410,672 10,672 10,345 
19,612 19,246 
CITGO Petroleum Corp.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.92 %8,268 8,074 8,219 (6)
8,074 8,219 
Clear Channel Outdoor Holdings Inc.Advertising
Fixed Rate Bond, 7.50% cash due 6/1/20296,476 6,476 4,676 (11)
Fixed Rate Bond, 5.125% cash due 8/15/20271,374 1,223 1,164 (11)
Fixed Rate Bond, 7.75% cash due 4/15/2028676 647 494 (11)
8,346 6,334 
CommScope Technologies LLCCommunications Equipment
Fixed Rate Bond, 5.00% cash due 3/15/20271,000 848 741 (11)
Fixed Rate Bond, 6.00% cash due 6/15/20253,250 2,926 2,818 (11)
3,774 3,559 
Condor Merger Sub Inc.Systems Software
Fixed Rate Bond, 7.375% cash due 2/15/20308,420 8,239 6,868 
8,239 6,868 
9
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, 2017June 30, 2022
(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+8.50% cash due 1/28/202510.17 %$32,188 $30,771 $27,372 (6)(15)
Common Stock Warrants expiration date 7/28/2025648 673 (15)
31,419 28,045 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20266.67 %11,944 11,711 10,272 (6)
11,711 10,272 
Conviva Inc.Application Software
517,851 Shares of Series D Preferred Stock605 894 (15)
605 894 
CorEvitas, LLCHealth Care Technology
First Lien Term Loan, SOFR+5.75% cash due 12/13/20257.38 %13,747 13,581 13,618 (6)(15)
First Lien Revolver, PRIME+4.75% cash due 12/13/20259.50 %305 287 288 (6)(15)(19)
1,099 Class A2 Common Units in CorEvitas Holdings, L.P.690 2,340 (15)
14,558 16,246 
Coyote Buyer, LLCSpecialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.00 %18,247 17,814 17,889 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/20257.67 %400 387 374 (6)(15)(19)
18,201 18,263 
Delivery Hero FinCo LLCInternet & Direct Marketing Retail
First Lien Term Loan, SOFR+5.75% cash due 8/12/20276.88 %5,000 4,894 4,713 (6)(11)
4,894 4,713 
Delta Topco, Inc.Systems Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20289.34 %6,680 6,647 5,845 (6)
6,647 5,845 
Dialyze Holdings, LLCHealth Care Equipment
First Lien Term Loan, LIBOR+9.00% cash 2.00% PIK due 8/4/202611.25 %24,272 22,873 22,629 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+9.00% cash 2.00% PIK due 8/4/2026— (144)(175)(6)(15)(19)
5,403,823 Class A Warrants (exercise price $1.00) expiration date 8/4/20281,405 1,351 (15)
24,134 23,805 
Digital.AI Software Holdings, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 2/10/20278.40 %9,927 9,606 9,705 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 2/10/20277.90 %251 227 217 (6)(15)(19)
9,833 9,922 
DirecTV Financing, LLCCable & Satellite
First Lien Term Loan, LIBOR+5.00% cash due 8/2/20276.67 %17,718 17,540 16,363 (6)
17,540 16,363 
DTI Holdco, Inc.Research & Consulting Services
First Lien Term Loan, SOFR+4.75% cash due 4/26/20296.28 %5,000 4,902 4,695 (6)
4,902 4,695 
Eagleview Technology CorporationApplication Software
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/20269.17 %8,974 8,884 8,413 (6)(15)
8,884 8,413 
EOS Fitness Opco Holdings, LLCLeisure Facilities
487.5 Class A Preferred Units, 12%488 966 (15)
12,500 Class B Common Units— — (15)
488 966 
Establishment Labs Holdings Inc.Health Care Technology
First Lien Term Loan, 9.00% cash due 4/21/202710,151 9,999 9,998 (11)(15)
First Lien Delayed Draw Term Loan, 9.00% cash due 4/21/2027(11)(15)(19)
10,002 10,001 
10
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Fairbridge Strategic Capital Funding LLCReal Estate Operating Companies(20)
First Lien Delayed Draw Term Loan, 9.00% cash due 12/24/2028$17,750 $17,750 $17,750 (15)(19)
2,500 Warrant Units (exercise price $0.01) expiration date 11/24/2031— (11)(12)(15)
17,750 17,753 
FINThrive Software Intermediate Holdings, Inc.Health Care Technology
Second Lien Term Loan, LIBOR+6.75% cash due 12/17/20298.42 %25,061 24,685 22,430 (6)
24,685 22,430 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/20259,466 9,037 9,111 (11)(15)
331,200 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030405 56 (11)(15)
9,442 9,167 
Frontier Communications Holdings, LLCIntegrated Telecommunication Services
Fixed Rate Bond, 6.00% cash due 1/15/20304,881 4,408 3,769 (11)
4,408 3,769 
GKD Index Partners, LLCSpecialized Finance
First Lien Term Loan, LIBOR+8.00% cash due 6/29/202310.25 %25,436 25,148 25,029 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 6/29/202310.10 %1,280 1,263 1,254 (6)(15)(19)
26,411 26,283 
Global Medical Response, Inc.Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.92 %5,587 5,434 5,212 (6)
5,434 5,212 
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise Lines
First Lien Term Loan, SOFR+8.00% cash due 6/21/20279.45 %14,311 14,026 14,025 (6)(15)
First Lien Delayed Draw Term Loan, SOFR+8.00% cash due 6/21/2027— (57)(57)(6)(15)(19)
First Lien Revolver, SOFR+8.00% cash due 6/21/2027— (28)(29)(6)(15)(19)
13,941 13,939 
Harbor Purchaser Inc.Education Services
First Lien Term Loan, SOFR+5.25% cash due 4/9/20296.88 %9,392 9,068 8,541 (6)
9,068 8,541 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.72 %25,635 25,179 25,548 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.72 %1,176 1,154 1,172 (6)(15)
26,333 26,720 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20258.00 %8,591 8,407 8,419 (6)(15)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/202510.25 %22,418 21,923 22,026 (6)(15)
30,330 30,445 
Impel Neuropharma, Inc.Health Care Technology
First Lien Revenue Interest Financing Term Loan due 2/15/203112,161 12,161 12,161 (6)(15)
First Lien Term Loan, SOFR+8.75% cash due 3/17/202710.95 %12,161 11,931 11,942 (6)(15)
24,092 24,103 
Innocoll Pharmaceuticals LimitedHealth Care Technology
First Lien Term Loan, 11.00% cash due 1/26/20276,817 6,538 6,391 (11)(15)
First Lien Delayed Draw Term Loan, 11.00% cash due 1/26/2027— — — (11)(15)(19)
56,999 Tranche A Warrant Shares (exercise price $4.23) expiration date 1/26/2029135 125 (11)(15)
6,673 6,516 
11
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Integral Development CorporationOther Diversified Financial Services
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024$113 $— (15)
113  
Inventus Power, Inc.Electrical Components & Equipment
First Lien Term Loan, SOFR+5.00% cash due 3/29/20247.32 %$18,707 18,598 18,099 (6)(15)
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/202410.75 %13,674 13,494 13,093 (6)(15)
32,092 31,192 
INW Manufacturing, LLCPersonal Products
First Lien Term Loan, LIBOR+5.75% cash due 3/25/20278.00 %36,094 35,217 34,109 (6)(15)
35,217 34,109 
IPC Corp.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 10/1/20267.50 %34,357 33,565 33,220 (6)(15)
33,565 33,220 
Itafos Inc.Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+8.25% cash due 8/25/20249.82 %17,017 16,529 16,423 (6)(15)
16,529 16,423 
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.85 %10,247 10,196 9,410 (6)
10,196 9,410 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20279.17 %36,326 35,200 36,411 (6)(15)
Second Lien Term Loan, LIBOR+8.00% cash due 6/18/202710.03 %528 475 483 (6)
35,675 36,894 
Kings Buyer, LLCEnvironmental & Facilities Services
First Lien Term Loan, LIBOR+6.50% cash due 10/29/20278.75 %13,658 13,521 13,316 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 10/29/20278.75 %659 640 612 (6)(15)(19)
14,161 13,928 
LaserShip, Inc.Air Freight & Logistics
Second Lien Term Loan, LIBOR+7.50% cash due 5/7/202910.38 %4,787 4,739 4,536 (6)(15)
4,739 4,536 
Lift Brands Holdings, Inc.Leisure Facilities
2,000,000 Class A Common Units in Snap Investments, LLC1,399 — (15)
1,399  
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20267.25 %41,114 40,293 40,086 (6)(15)
40,293 40,086 
Liquid Environmental Solutions CorporationEnvironmental & Facilities Services
Second Lien Term Loan, LIBOR+8.50% cash due 11/30/202610.17 %4,357 4,280 4,226 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 11/30/202610.17 %1,162 1,139 1,057 (6)(15)(19)
5,419 5,283 
LSL Holdco, LLCHealth Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 1/31/20287.67 %19,236 18,878 18,659 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/31/20287.67 %855 815 791 (6)(15)(19)
19,693 19,450 
LTI Holdings, Inc.Electronic Components
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20268.42 %2,140 2,090 1,957 (6)
2,090 1,957 
Marinus Pharmaceuticals, Inc.Pharmaceuticals
First Lien Term Loan, 11.50% cash due 5/11/202617,203 16,937 16,558 (11)(15)
First Lien Delayed Draw Term Loan, 11.50% cash due 5/11/2026— — — (11)(15)(19)
16,937 16,558 
12
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Mesoblast, Inc.Biotechnology
First Lien Term Loan, 8.00% cash 1.75% PIK due 11/19/2026$7,183 $6,583 $6,357 (11)(15)
First Lien Delayed Draw Term Loan, 8.00% cash 1.75% PIK due 11/19/2026— (11)(15)(19)
209,588 Warrant Shares (exercise price $7.26) expiration date 11/19/2028480 138 (11)(15)
7,064 6,496 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+6.00% cash due 7/21/20277.29 %18,437 18,120 17,979 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 7/21/2027— (24)(35)(6)(15)(19)
18,096 17,944 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.38 %45,487 44,407 44,623 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (58)(76)(6)(15)(19)
44,349 44,547 
Mosaic Companies, LLCHome Improvement Retail
First Lien Term Loan, LIBOR+6.75% cash due 7/2/20268.36 %46,796 46,046 45,907 (6)(15)
46,046 45,907 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20267.75 %28,037 27,574 27,476 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (13)(100)(6)(15)(19)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (13)(36)(6)(15)(19)
27,548 27,340 
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/202610.75 %22,560 22,222 21,432 (6)(15)
22,222 21,432 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.75 %49,572 48,069 48,142 (6)(15)
48,069 48,142 
NFP Corp.Other Diversified Financial Services
Fixed Rate Bond 6.875% cash due 8/15/202810,191 9,759 8,437 
9,759 8,437 
NN, Inc.Industrial Machinery
First Lien Term Loan, LIBOR+6.88% cash due 9/19/20268.54 %58,862 57,734 56,802 (6)(11)(15)
57,734 56,802 
OEConnection LLCApplication Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.67 %3,332 3,160 3,107 (6)
Second Lien Term Loan, LIBOR+7.00% cash due 9/25/20278.60 %7,519 7,383 7,218 (6)(15)
10,543 10,325 
OTG Management, LLCAirport Services
First Lien Term Loan, LIBOR+2.00% cash 8.00% PIK due 9/1/20254.63 %21,125 20,810 20,703 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+2.00% cash 8.00% PIK due 9/1/2025— (33)(38)(6)(15)(19)
20,777 20,665 
P & L Development, LLCPharmaceuticals
Fixed Rate Bond, 7.75% cash due 11/15/20257,776 7,823 5,455 
7,823 5,455 
13
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, SOFR+5.00% cash due 11/10/20276.63 %$9,875 $9,465 $9,521 (6)
9,465 9,521 
Performance Health Holdings, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 7/12/20278.88 %17,976 17,675 17,537 (6)(15)
17,675 17,537 
PFNY Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+7.00% cash due 12/31/20268.00 %26,220 25,750 25,695 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/31/20269.25 %2,228 2,183 2,178 (6)(15)(19)
First Lien Revolver, LIBOR+7.00% cash due 12/31/2026— (22)(25)(6)(15)(19)
27,911 27,848 
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.92 %28,627 28,198 27,482 (6)(15)
28,198 27,482 
PLNTF Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+8.00% cash due 3/22/202610.10 %3,035 2,990 2,944 (6)(15)
2,990 2,944 
Pluralsight, LLCApplication Software
First Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %48,689 47,910 47,325 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 4/6/2027— (56)(99)(6)(15)(19)
47,854 47,226 
PRGX Global, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+6.75% cash due 3/3/20268.95 %33,861 32,952 33,200 (6)(15)
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026— (36)(49)(6)(15)(19)
80,515 Class B Common Units79 89 (15)
32,995 33,240 
Profrac Holdings II, LLCIndustrial Machinery
First Lien Term Loan, SOFR+8.50% cash due 3/4/202510.01 %21,137 20,572 20,714 (6)(15)
20,572 20,714 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/20279.67 %5,250 5,164 5,079 (6)(15)
5,164 5,079 
Quantum Bidco LimitedFood Distributors
First Lien Term Loan, SONIA+6.00% cash due 1/29/20287.31 %£3,501 4,643 3,540 (6)(11)(15)
4,643 3,540 
QuorumLabs, Inc.Application Software
64,887,669 Junior-2 Preferred Stock375 — (15)
375  
Radiology Partners Inc.Health Care Distributors
First Lien Term Loan, LIBOR+4.25% cash due 7/9/20255.89 %$3,400 3,200 3,066 (6)
Fixed Rate Bond, 9.25% cash due 2/1/20284,755 4,718 3,578 
7,918 6,644 
Relativity ODA LLCApplication Software
First Lien Term Loan, LIBOR+7.50% PIK due 5/12/202724,075 23,626 23,498 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 5/12/2027— (45)(53)(6)(15)(19)
23,581 23,445 
Renaissance Holding Corp.Diversified Banks
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/20268.67 %3,542 3,515 3,310 (6)
3,515 3,310 
RP Escrow Issuer LLCHealth Care Distributors
Fixed Rate Bond, 5.25% cash due 12/15/20251,325 1,211 1,147 
1,211 1,147 
14
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, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
RumbleOn, Inc.Automotive Retail
First Lien Term Loan, LIBOR+8.25% cash due 8/31/20269.25 %$37,751 $35,744 $36,275 (6)(11)(15)
First Lien Delayed Draw Term Loan, LIBOR+8.25% cash due 8/31/20269.25 %11,421 10,558 10,786 (6)(11)(15)(19)
164,660 Class B Common Stock Warrants (exercise price $33.00) expiration date 2/28/20231,202 77 (11)(15)
47,504 47,138 
Sabert CorporationMetal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/20266.19 %1,727 1,640 1,645 (6)
1,640 1,645 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/20262,960 2,666 2,916 (15)
2,666 2,916 
ShareThis, Inc.Application Software
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024367 — (15)
367  
SiO2 Medical Products, Inc.Metal & Glass Containers
First Lien Term Loan, 5.50% cash 8.50% PIK due 12/21/202645,140 44,390 44,332 (15)
Common Stock Warrants (exercise price $0.75) expiration date 7/31/2028681 681 (15)
45,071 45,013 
SM Wellness Holdings, Inc.Health Care Services
Second Lien Term Loan, LIBOR+8.00% cash due 4/16/20299.04 %9,109 8,972 8,927 (6)(15)
8,972 8,927 
SonicWall US Holdings Inc.Technology Distributors
Second Lien Term Loan, LIBOR+7.50% cash due 5/18/20269.01 %3,195 3,163 3,069 (6)(15)
3,163 3,069 
Sorrento Therapeutics, Inc.Biotechnology
50,000 Common Stock Units197 101 (11)
197 101 
Spanx, LLCApparel Retail
First Lien Term Loan, LIBOR+5.50% cash due 11/20/20287.10 %4,546 4,463 4,438 (6)(15)
First Lien Revolver, LIBOR+5.25% cash due 11/18/2027— (55)(70)(6)(15)(19)
4,408 4,368 
SumUp Holdings Luxembourg S.À.R.L.Other Diversified Financial Services
First Lien Term Loan, EURIBOR+8.50% cash due 3/10/202610.00 %16,911 19,414 17,186 (6)(11)(15)
19,414 17,186 
Sunland Asphalt & Construction, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.00% cash due 1/13/20268.88 %$42,727 41,686 41,787 (6)(15)
41,686 41,787 
Supermoose Borrower, LLCApplication Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20256.00 %3,475 3,121 3,155 (6)
3,121 3,155 
SVP-Singer Holdings Inc.Home Furnishings
First Lien Term Loan, LIBOR+6.75% cash due 7/28/20289.00 %20,819 19,547 18,802 (6)(15)
19,547 18,802 
Swordfish Merger Sub LLCAuto Parts & Equipment
Second Lien Term Loan, LIBOR+6.75% cash due 2/2/20266.75 %12,500 12,472 11,833 (6)(15)
12,472 11,833 
15
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, 2017June 30, 2022
(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 2/4/20289.17 %$9,448 $9,333 $8,865 (6)
9,333 8,865 
Tahoe Bidco B.V.Application Software
First Lien Term Loan, LIBOR+6.00% cash due 9/29/20287.12 %23,215 22,799 22,843 (6)(11)(15)
First Lien Revolver, LIBOR+6.00% cash due 10/1/2027— (31)(30)(6)(11)(15)(19)
22,768 22,813 
Tecta America Corp.Construction & Engineering
Second Lien Term Loan, LIBOR+8.50% cash due 4/9/202910.17 %5,203 5,125 5,099 (6)(15)
5,125 5,099 
Telestream Holdings CorporationApplication Software
First Lien Term Loan, SOFR+9.25% cash due 10/15/202510.59 %18,370 17,971 17,984 (6)(15)
First Lien Revolver, SOFR+9.25% cash due 10/15/202510.59 %703 681 667 (6)(15)(19)
18,652 18,651 
TerSera Therapeutics LLCPharmaceuticals
Second Lien Term Loan, LIBOR+9.50% cash due 3/30/202611.75 %29,663 29,330 28,912 (6)(15)
668,879 Common Units of TerSera Holdings LLC2,125 3,487 (15)
31,455 32,399 
TGNR HoldCo LLCIntegrated Oil & Gas
Subordinated Debt, 11.50% cash due 5/14/20264,984 4,860 4,859 (10)(11)(15)
4,860 4,859 
Thrasio, LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+7.00% cash due 12/18/20269.25 %37,590 36,606 36,274 (6)(15)
8,434 Shares of Series C-3 Preferred Stock in Thrasio Holdings, Inc.101 124 (15)
284,650.32 Shares of Series C-2 Preferred Stock in Thrasio Holdings, Inc.2,409 4,196 (15)
48,352 Shares of Series D Preferred Stock in Thrasio Holdings, Inc.979 979 (15)
23,201 Shares of Series X Preferred Stock in Thrasio Holdings, Inc.22,986 26,487 (15)(19)
63,081 68,060 
TIBCO Software Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/20288.92 %14,788 14,695 14,592 (6)
14,695 14,592 
Touchstone Acquisition, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+6.00% cash due 12/29/20287.67 %6,031 5,918 5,850 (6)(15)
5,918 5,850 
Uniti Group LPSpecialized REITs
Fixed Rate Bond, 6.50% cash due 2/15/20294,500 4,047 3,309 (11)
Fixed Rate Bond, 4.75% cash due 4/15/2028300 256 247 (11)
4,303 3,556 
Veritas US Inc.Application Software
First Lien Term Loan, LIBOR+5.00% cash due 9/1/20257.25 %5,876 5,602 4,852 (6)
5,602 4,852 
Win Brands Group LLCHousewares & Specialties
First Lien Term Loan, LIBOR+9.00% cash 5.00% PIK due 1/22/202612.00 %3,791 3,755 3,753 (6)(15)
181 Class F Warrants in Brand Value Growth LLC (exercise price $0.01) expiration date 1/25/2027— 195 (15)
3,755 3,948 
Windstream Services II, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.92 %25,565 24,652 24,018 (6)
18,032 Shares of Common Stock in Windstream Holdings II, LLC216 328 (15)
109,420 Warrants in Windstream Holdings II, LLC1,842 1,992 (15)
26,710 26,338 
16
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

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 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.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 2017June 30, 2022
(dollar amounts in thousands)
(unaudited)



Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
WP CPP Holdings, LLCAerospace & Defense
First Lien Term Loan, LIBOR+3.75% cash due 4/30/20254.99 %$10,590 $9,849 $8,900 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.99 %16,000 15,797 13,240 (6)(15)
25,646 22,140 
WPEngine, Inc.Application Software
First Lien Term Loan, LIBOR+6.00% cash due 3/27/20267.50 %40,536 39,905 40,057 (6)(15)
39,905 40,057 
WWEX Uni Topco Holdings, LLCAir Freight & Logistics
Second Lien Term Loan, LIBOR+7.00% cash due 7/26/20299.25 %5,000 4,925 4,538 (6)(15)
4,925 4,538 
Zayo Group Holdings IncAlternative Carriers
Fixed Rate Bond, 6.125% cash due 3/1/20282,166 1,910 1,570 
Fixed Rate Bond, 4.00% cash due 3/1/2027250 210 208 
2,120 1,778 
Zep Inc.Specialty Chemicals
Second Lien Term Loan, LIBOR+8.25% cash due 8/11/202510.50 %19,578 19,539 17,130 (6)(15)
19,539 17,130 
Zephyr Bidco LimitedSpecialized Finance
Second Lien Term Loan, SONIA+7.50% cash due 7/23/20268.72 %£18,000 23,809 19,547 (6)(11)(15)
23,809 19,547 
Total Non-Control/Non-Affiliate Investments (183.5% of net assets)$2,378,626 $2,319,104 
Total Portfolio Investments (203.0% of net assets)$2,665,487 $2,565,389 
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares $8,657 $8,657 
Other cash accounts27,658 27,658 
Total Cash and Cash Equivalents and Restricted Cash (2.9% of net assets)$36,315 $36,315 
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (205.9% of net assets)$2,701,802 $2,601,704 

(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)

Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract$46,196 43,643 8/11/2022JPMorgan Chase Bank, N.A.$440 
Foreign currency forward contract$49,442 £40,109 8/11/2022JPMorgan Chase Bank, N.A.694 
$1,134 


Derivative InstrumentCompany ReceivesCompany PaysCounterpartyMaturity DateNotional AmountFair Value
Interest rate swapFixed 2.7%Floating 3-month LIBOR +1.658%Royal Bank of Canada1/15/2027$350,000$(30,866)
17

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2022
(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.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
(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 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.
(6)The interest rate on the principal balance outstanding for most of the 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. Certain loans may also be indexed to the secured overnight financing rate ("SOFR") or the sterling overnight index average ("SONIA"). 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 the reference 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 June 30, 2022, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 1.67%, the 90-day LIBOR at 2.25%, the 180-day LIBOR at 2.88%, the 360-day LIBOR at 3.61%, the PRIME at 4.75%, the 30-day SOFR at 1.53%, the 90-day SOFR at 2.05%, the SONIA at 1.19%, the 30-day EURIBOR at (0.54)%, the 90-day EURIBOR at (0.30)% and the 180-day EURIBOR at (0.38)%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR and SONIA based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.
(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 nine months ended June 30, 2022 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(10)This investment represents a participation interest in the underlying securities shown.
(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 June 30, 2022, qualifying assets represented 75.9% of the Company's total assets and non-qualifying assets represented 24.1% of the Company's total assets.
(12)Income producing through payment of dividends or distributions.
(13)One half of the Seller Earn Out Shares will vest if, at any time through June 16, 2027, the Alvotech SA common share price is at or above a volume weighted average price ("VWAP") of $15.00 per share for any ten trading days within any twenty trading day period, and the other half will vest, if at any time during such period, the common share price is at or above a VWAP of $20.00 per share for any ten trading days within any twenty trading day period.
(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(15)As of June 30, 2022, these investments were categorized as Level 3 within the fair value hierarchy established by Financial Accounting Standards Board ("FASB") guidance under Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("ASC 820").
(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)This investment was renamed during the three months ended March 31, 2022. For periods prior to March 31, 2022, this investment was referenced as Realfi Strategic Capital Funding LLC.

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, 20172021
(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$— $— (15)
34,984,460.37 Preferred Units34,984 27,638 (15)
34,984 27,638 
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.00 %$27,381 27,381 27,381 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024— — — (6)(15)(19)
30,030.8 Common Units in DD Healthcare Services Holdings, LLC18,625 18,065 (12)(15)
46,006 45,446 
First Star Speir Aviation LimitedAirlines(10)
First Lien Term Loan, 9.00% cash due 12/15/20257,500 — 7,500 (11)(15)
100% equity interest6,332 698 (11)(12)(15)
6,332 8,198 
OCSI Glick JV LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+4.50% cash due 10/20/20284.60 %61,709 50,705 55,582  (6)(11)(15)(19)
87.5% equity interest— —  (11)(16)(19)
50,705 55,582 
Senior Loan Fund JV I, LLCMulti-Sector Holdings(14)
Subordinated Debt, LIBOR+7.00% cash due 12/29/20288.00 %96,250 96,250 96,250 (6)(11)(15)(19)
87.5% LLC equity interest49,322 37,651 (11)(12)(16)(19)
145,572 133,901 
 Total Control Investments (20.6% of net assets)$283,599 $270,765 
Affiliate Investments(17)
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %$15,899 $15,900 $15,712 (6)(15)(19)
1,609,201 Class A Units764 587 (15)
1,019,168.80 Preferred Units, 6%1,019 1,152 (15)
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029— — (15)
17,683 17,451 
Caregiver Services, Inc.Health Care Services
1,080,399 shares of Series A Preferred Stock, 10%1,080 838 (15)
1,080 838 
 Total Affiliate Investments (1.4% of net assets)$18,763 $18,289 
Non-Control/Non-Affiliate Investments(18)
4 Over International, LLCCommercial Printing
First Lien Term Loan, LIBOR+6.00% cash due 6/7/20227.00 %$10,927 $10,524 $10,484 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 6/7/2022— (24)(93)(6)(15)(19)
10,500 10,391 
109 Montgomery Owner LLCReal Estate Operating Companies
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/20237.50 %3,102 2,984 3,153 (6)(15)(19)
2,984 3,153 
A.T. Holdings II SÀRLBiotechnology
First Lien Term Loan, 9.50% cash due 12/22/202237,158 36,930 36,972 (11)(15)
36,930 36,972 
Access CIG, LLCDiversified Support Services
First Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.83 %5,352 5,021 5,332 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/20267.83 %17,000 16,923 17,028 (6)
21,944 22,360 
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, 20172021
(dollar amounts in thousands)


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 %$16,140 $15,758 $16,140 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026— (29)— (6)(15)(19)
First Lien Revolver, LIBOR+6.00% cash due 1/17/20267.00 %1,838 1,789 1,838 (6)(15)(19)
17,518 17,978 
Acquia Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 10/31/20258.00 %27,349 26,936 27,295 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 10/31/20258.00 %179 148 175 (6)(15)(19)
27,084 27,470 
ADB Companies, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %15,463 14,817 15,287 (6)(15)
14,817 15,287 
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.5,165 — (15)
5,165  
AI Sirona (Luxembourg) Acquisition S.a.r.l.Pharmaceuticals
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/20267.25 %24,838 27,720 28,738 (6)(11)(15)
27,720 28,738 
AirStrip Technologies, Inc.Application Software
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/202590 — (15)
90  
All Web Leads, Inc.Advertising
First Lien Term Loan, LIBOR+6.50% cash due 12/29/20237.50 %$23,899 21,512 22,992 (6)(15)
21,512 22,992 
Alvogen Pharma US, Inc.Pharmaceuticals
First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %13,825 13,329 13,383 (6)
13,329 13,383 
Alvotech Holdings S.A.Biotechnology(13)
Fixed Rate Bond 15% PIK Tranche A due 6/24/202520,967 20,576 20,967 (11)(15)
Fixed Rate Bond 15% PIK Tranche B due 6/24/202520,512 20,169 20,512 (11)(15)
27,308 Common Shares6,322 6,322 (15)
47,067 47,801 
Amplify Finco Pty Ltd.Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %15,376 13,814 14,985 (6)(11)(15)
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/20278.75 %12,500 12,188 12,063 (6)(11)(15)
26,002 27,048 
Ankura Consulting Group LLCResearch & Consulting Services
Second Lien Term Loan, LIBOR+8.00% cash due 3/19/20298.75 %7,466 7,354 7,606 (6)(15)
7,354 7,606 
Apptio, Inc.Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %34,458 33,420 33,922 (6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/20258.25 %892 849 858 (6)(15)(19)
34,269 34,780 
Ardonagh Midco 3 PLCInsurance Brokers
First Lien Term Loan, EURIBOR+7.25% cash due 7/14/20268.25 %1,964 2,179 2,283 (6)(11)(15)
First Lien Term Loan, UK LIBOR+7.25% cash due 7/14/20268.00 %£18,636 23,336 25,329 (6)(11)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 7/14/2026$— — — (6)(11)(15)(19)
First Lien Delayed Draw Term Loan, SONIA+6.00% cash due 7/14/2026£— — — (6)(11)(15)(19)
25,515 27,612 
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, 20172021
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Associated Asphalt Partners, LLCConstruction Materials
First Lien Term Loan, LIBOR+5.25% cash due 4/5/20246.25 %$2,531 $2,245 $2,350 (6)
2,245 2,350 
Athenex, Inc.Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/202642,145 40,475 41,845 (11)(15)
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026— (274)(150)(11)(15)(19)
328,149 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027973 95 (11)(15)
41,174 41,790 
Aurora Lux Finco S.À.R.L.Airport Services
First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %22,655 22,232 21,318 (6)(11)(15)
22,232 21,318 
The AveryReal Estate Operating Companies
First Lien Delayed Draw Term Loan in T8 Urban Condo Owner, LLC, LIBOR+7.30% cash due 2/17/20237.55 %20,287 19,933 20,490 (6)(15)(19)
Subordinated Delayed Draw Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/202312.75 %4,692 4,614 4,698 (6)(15)(19)
24,547 25,188 
BAART Programs, Inc.Health Care Services
Second Lien Term Loan, LIBOR+8.50% cash due 6/11/20289.50 %7,166 7,059 7,130 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 6/11/2028— (52)(18)(6)(15)(19)
7,007 7,112 
Berner Food & Beverage, LLCSoft Drinks
First Lien Term Loan, LIBOR+6.50% cash due 7/30/20277.50 %33,412 32,844 32,844 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 7/30/20277.50 %619 566 566 (6)(15)(19)
33,410 33,410 
Blackhawk Network Holdings, Inc.Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20267.13 %30,625 30,181 30,523 (6)
30,181 30,523 
Blumenthal Temecula, LLCAutomotive Retail
First Lien Term Loan, 9.00% cash due 9/24/20233,979 3,980 3,979 (15)
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC1,293 1,293 (15)
298,460 Preferred Units in Unstoppable Automotive VMV, LLC298 298 (15)
298,460 Common Units in Unstoppable Automotive AMV, LLC298 298 (15)
99,486 Common Units in Unstoppable Automotive VMV, LLC100 99 (15)
5,969 5,967 
Cadence Aerospace, LLCAerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash 2.00% PIK due 11/14/20237.50 %14,146 12,574 12,992 (6)(15)
12,574 12,992 
Chief Power Finance II, LLCIndependent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/20227.50 %23,850 23,458 23,552 (6)(15)
23,458 23,552 
CircusTrix Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+5.50% cash 2.50% PIK due 7/16/20236.50 %10,686 9,793 8,816 (6)(15)(19)
9,793 8,816 
CITGO Holding, Inc.Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+7.00% cash due 8/1/20238.00 %11,635 11,517 11,512 (6)
Fixed Rate Bond, 9.25% cash due 8/1/202410,672 10,672 10,765 
22,189 22,277 
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, 20172021
(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+6.25% cash due 3/28/20247.25 %$14,221 $13,855 $14,269 (6)
13,855 14,269 
Clear Channel Outdoor Holdings Inc.Advertising
Fixed Rate Bond, 7.50% cash due 6/1/20297,137 7,137 7,431 (11)
7,137 7,431 
Continental Intermodal Group LPOil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/202538,876 36,668 32,628 (6)(15)
Common Stock Warrants expiration date 7/28/2025648 1,909 (15)
37,316 34,537 
Convergeone Holdings, Inc.IT Consulting & Other Services
First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.08 %7,024 6,848 7,003 (6)
6,848 7,003 
Conviva Inc.Application Software
517,851 Shares of Series D Preferred Stock605 894 (15)
605 894 
CorEvitas, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %10,196 10,071 10,109 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/20256.50 %1,943 1,894 1,912 (6)(15)(19)
First Lien Revolver, PRIME+4.50% cash due 12/13/20257.75 %305 283 290 (6)(15)(19)
1,099 Class A2 Common Units in CorEvitas Holdings, L.P.1,038 1,177 (15)
13,286 13,488 
Coty Inc.Personal Products
First Lien Revolver, LIBOR+1.75% cash due 4/5/2023— (712)(395)(6)(11)(15)(19)
(712)(395)
Coyote Buyer, LLCSpecialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.00 %18,387 17,887 18,225 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025— (13)(12)(6)(15)(19)
17,874 18,213 
Curium Bidco S.à.r.l.Biotechnology
Second Lien Term Loan, LIBOR+7.75% cash due 10/27/20288.50 %16,787 16,535 17,070 (6)(11)(15)
16,535 17,070 
Delta Topco, Inc.Systems Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/20288.00 %6,680 6,647 6,769 (6)
6,647 6,769 
Dialyze Holdings, LLCHealth Care Equipment
First Lien Term Loan, LIBOR+7.00% cash 2.00% PIK due 8/4/20268.00 %24,093 22,439 22,467 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash 2.00% PIK due 8/4/2026— (170)(163)(6)(15)(19)
5,403,823 Class A Warrants (exercise price $1.00) expiration date 8/4/20281,405 1,459 (15)
23,674 23,763 
Digital.AI Software Holdings, Inc.Application Software
First Lien Term Loan, LIBOR+7.00% cash due 2/10/20278.00 %10,003 9,627 9,783 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 2/10/20278.00 %180 151 156 (6)(15)(19)
9,778 9,939 
DirecTV Financing, LLCCable & Satellite
First Lien Term Loan, LIBOR+5.00% cash due 8/2/20275.75 %27,000 26,730 27,048 (6)
26,730 27,048 
Eagleview Technology CorporationApplication Software
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/20268.50 %8,974 8,884 8,918 (6)(15)
8,884 8,918 
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, 20172021
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
EHR Canada, LLCFood Retail
First Lien Term Loan, LIBOR+8.00% cash due 12/31/20219.00 %$3,750 $3,745 $3,750 (6)(15)
3,745 3,750 
EOS Fitness Opco Holdings, LLCLeisure Facilities
487.5 Class A Preferred Units, 12%488 274 (15)
12,500 Class B Common Units— — (15)
488 274 
Firstlight Holdco, Inc.Alternative Carriers
First Lien Term Loan, LIBOR+3.50% cash due 7/23/20253.58 %7,012 6,578 6,939 (6)
6,578 6,939 
Fortress Biotech, Inc.Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/202511,359 10,722 11,075 (11)(15)
331,200 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030405 341 (11)(15)
11,127 11,416 
GI Chill Acquisition LLCManaged Health Care
First Lien Term Loan, LIBOR+3.75% cash due 8/6/20253.90 %12,653 12,442 12,621 (6)(15)
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/20267.63 %6,250 6,212 6,219 (6)(15)
18,654 18,840 
GKD Index Partners, LLCSpecialized Finance
First Lien Term Loan, LIBOR+8.50% cash due 6/29/20239.50 %26,360 25,837 25,931 (6)(15)
First Lien Revolver, LIBOR+8.50% cash due 6/29/20239.50 %1,280 1,251 1,252 (6)(15)(19)
27,088 27,183 
Global Medical Response, Inc.Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %8,630 8,399 8,674 (6)
8,399 8,674 
Gulf Operating, LLCOil & Gas Storage & Transportation
First Lien Revolver, LIBOR+4.00% cash due 12/27/2021— (704)(75)(6)(15)(19)
(704)(75)
Houghton Mifflin Harcourt Publishers Inc.Education Services
First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.25 %1,007 981 1,009 (6)(11)
981 1,009 
iCIMs, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50 %25,635 25,024 25,525 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/20247.50 %1,176 1,147 1,171 (6)(15)
26,171 26,696 
Immucor, Inc.Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/20256.75 %8,657 8,425 8,570 (6)(15)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/20259.00 %21,834 21,225 21,616 (6)(15)
29,650 30,186 
Integral Development CorporationOther Diversified Financial Services
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024113 — (15)
113  
Inventus Power, Inc.Electrical Components & Equipment
First Lien Term Loan, LIBOR+5.00% cash due 3/29/20246.00 %18,849 18,693 18,708 (6)(15)
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/20249.50 %13,674 13,434 13,434 (6)(15)
32,127 32,142 
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, 20172021
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
INW Manufacturing, LLCPersonal Products
First Lien Term Loan, LIBOR+5.75% cash due 5/7/20276.50 %$37,031 $35,988 $36,291 (6)(15)
35,988 36,291 
Itafos Inc.Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+8.25% cash due 8/25/20249.25 %22,506 21,636 21,651 (6)(15)
21,636 21,651 
Ivanti Software, Inc.Application Software
Second Lien Term Loan, LIBOR+8.50% cash due 12/1/20289.50 %17,346 16,864 17,368 (6)(15)
16,864 17,368 
Jazz Acquisition, Inc.Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/20278.50 %36,603 35,292 36,531 (6)(15)
35,292 36,531 
Latam Airlines Group S.A.Airlines
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/202216,239 16,085 16,356 (6)(11)(15)(19)
16,085 16,356 
Lift Brands Holdings, Inc.Leisure Facilities
2,000,000 Class A Common Units in Snap Investments, LLC1,399 — (15)
1,399  
Lightbox Intermediate, L.P.Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.13 %41,432 40,445 41,225 (6)(15)
40,445 41,225 
LogMeIn, Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.83 %3,970 3,720 3,973 (6)
3,720 3,973 
LTI Holdings, Inc.Electronic Components
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/20266.83 %10,140 10,080 10,127 (6)
10,080 10,127 
Marinus Pharmaceuticals, Inc.Pharmaceuticals
First Lien Term Loan, 11.50% cash due 5/11/20263,441 3,377 3,389 (11)(15)
First Lien Delayed Draw Term Loan, 11.50% cash due 5/11/20266,881 6,755 6,778 (11)(15)(19)
10,132 10,167 
Mayfield Agency Borrower Inc.Property & Casualty Insurance
First Lien Term Loan, LIBOR+4.50% cash due 2/28/20254.58 %9,949 9,884 9,949 (6)
9,884 9,949 
MedAssets Software Intermediate Holdings, Inc.Health Care Technology
Second Lien Term Loan, LIBOR+7.75% cash due 1/29/20298.50 %14,137 13,877 13,960 (6)(15)
13,877 13,960 
MHE Intermediate Holdings, LLCDiversified Support Services
First Lien Term Loan, LIBOR+5.75% cash due 7/21/20276.75 %16,429 16,111 16,100 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.75% cash due 7/21/20276.75 %106 84 83 (6)(15)(19)
First Lien Revolver, LIBOR+5.75% cash due 7/21/2027— (27)(28)(6)(15)(19)
16,168 16,155 
Mindbody, Inc.Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.00 %38,774 37,513 38,038 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025— (75)(76)(6)(15)(19)
37,438 37,962 
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, 20172021
(dollar amounts in thousands)


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)(15)(19)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/202310.25 %11,000 10,844 10,906 (6)(15)
10,835 10,897 
Mosaic Companies, LLCHome Improvement Retail
First Lien Term Loan, LIBOR+6.75% cash due 7/2/20267.75 %47,388 46,487 46,488 (6)(15)
46,487 46,488 
MRI Software LLCApplication Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %27,352 26,815 27,335 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026— (25)— (6)(15)(19)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026— (13)(1)(6)(15)(19)
26,777 27,334 
Navisite, LLCData Processing & Outsourced Services
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/20269.50 %22,560 22,165 22,176 (6)(15)
22,165 22,176 
NeuAG, LLCFertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/20247.00 %47,031 45,279 45,996 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024— (202)(120)(6)(15)(19)
45,077 45,876 
NN, Inc.Industrial Machinery
First Lien Term Loan, LIBOR+6.88% cash due 9/19/20267.88 %59,309 57,971 58,419 (6)(11)(15)
57,971 58,419 
OEConnection LLCApplication Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.08 %3,355 3,152 3,351 (6)
3,152 3,351 
Olaplex, Inc.Personal Products
First Lien Term Loan, LIBOR+6.25% cash due 1/8/20267.25 %52,122 50,906 51,731 (6)(15)
First Lien Revolver, LIBOR+6.25% cash due 1/8/2025— (58)(75)(6)(15)(19)
50,848 51,656 
OmniSYS Acquisition CorporationDiversified Support Services
100,000 Common Units in OSYS Holdings, LLC1,000 729 (15)
1,000 729 
Onvoy, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+4.50% cash due 2/10/20245.50 %3,601 3,410 3,603 (6)
Second Lien Term Loan, LIBOR+10.50% cash due 2/10/202511.50 %9,277 9,277 9,277 (6)(15)
19,666.67 Class A Units in GTCR Onvoy Holdings, LLC1,967 2,372 (15)
13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC— — (15)
14,654 15,252 
OTG Management, LLCAirport Services
First Lien Term Loan, LIBOR+10.00% cash due 9/1/202511.00 %19,894 19,504 19,496 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+10.00% cash due 9/1/2025— (37)(38)(6)(15)(19)
19,467 19,458 
P & L Development, LLCPharmaceuticals
Fixed Rate Bond, 7.75% cash due 11/15/20257,776 7,832 8,089 
7,832 8,089 
Park Place Technologies, LLCInternet Services & Infrastructure
First Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %9,950 9,479 9,961 (6)
9,479 9,961 
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, 20172021
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Performance Health Holdings, Inc.Health Care Distributors
First Lien Term Loan, LIBOR+6.00% cash due 7/12/20277.00 %$20,085 $19,698 $19,683 (6)(15)
19,698 19,683 
Pingora MSR Opportunity Fund I-A, LPThrifts & Mortgage Finance
1.86% limited partnership interest752 112 (11)(16)(19)
752 112 
Planview Parent, Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %28,627 28,198 28,699 (6)(15)
28,198 28,699 
PLNTF Holdings, LLCLeisure Facilities
First Lien Term Loan, LIBOR+8.00% cash due 3/22/20269.00 %13,729 13,482 13,798 (6)(15)
13,482 13,798 
Pluralsight, LLCApplication Software
First Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %48,689 47,788 47,763 (6)(15)
First Lien Revolver, LIBOR+8.00% cash due 4/6/2027— (65)(67)(6)(15)(19)
47,723 47,696 
PRGX Global, Inc.Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+6.75% cash due 3/3/20267.75 %34,118 33,016 33,547 (6)(15)
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026— (44)(42)(6)(15)(19)
80,515 Class B Common Units79 81 (15)
33,051 33,586 
ProFrac Services, LLCIndustrial Machinery
First Lien Term Loan, LIBOR+8.50% cash due 9/15/20239.75 %30,910 29,146 30,600 (6)(15)
29,146 30,600 
Project Boost Purchaser, LLCApplication Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/20278.08 %5,250 5,151 5,224 (6)(15)
5,151 5,224 
Quantum Bidco LimitedFood Distributors
First Lien Term Loan, UK LIBOR+6.00% cash due 1/29/20286.11 %£3,501 4,625 4,673 (6)(11)
4,625 4,673 
QuorumLabs, Inc.Application Software
64,887,669 Junior-2 Preferred Stock375 — (15)
375  
Relativity ODA LLCApplication Software
First Lien Term Loan, LIBOR+7.50% PIK due 5/12/2027$22,856 22,337 22,376 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 5/12/2027— (52)(47)(6)(15)(19)
22,285 22,329 
Renaissance Holding Corp.Diversified Banks
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/20267.08 %3,542 3,515 3,562 (6)
3,515 3,562 
RevSpring, Inc.Commercial Printing
First Lien Term Loan, LIBOR+4.25% cash due 10/11/20254.38 %9,725 9,185 9,709 (6)
9,185 9,709 
RumbleOn, Inc.Automotive Retail
First Lien Term Loan, LIBOR+8.25% cash due 8/31/20269.25 %38,036 35,651 35,640 (6)(11)(15)
First Lien Delayed Draw Term Loan, LIBOR+8.25% cash due 8/31/2026— (1,022)(1,027)(6)(11)(15)(19)
164,660 Class B Common Stock Warrants (exercise price $33.00) expiration date 2/28/20231,202 1,553 (15)
35,831 36,166 
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, 20172021
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Sabert CorporationMetal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %$1,818 $1,711 $1,825 (6)
1,711 1,825 
Scilex Pharmaceuticals Inc.Pharmaceuticals
Fixed Rate Zero Coupon Bond due 8/15/20267,692 6,512 7,169 (15)
6,512 7,169 
ShareThis, Inc.Application Software
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024367 — (15)
367  
SIO2 Medical Products, Inc.Metal & Glass Containers
Subordinated Debt, 11.25% cash due 2/28/202215,896 15,161 15,022 (15)
Subordinated Delayed Draw Debt, 11.25% cash due 2/28/2022— (110)(119)(15)(19)
Common Stock Warrants (exercise price $0.75) expiration date 7/31/2028681 685 (15)
15,732 15,588 
Sirva Worldwide, Inc.Diversified Support Services
First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.58 %1,739 1,554 1,644 (6)
1,554 1,644 
SM Wellness Holdings, Inc.Health Care Services
Second Lien Term Loan, LIBOR+8.00% cash due 4/16/20298.75 %9,109 8,972 9,177 (6)(15)
8,972 9,177 
SonicWall US Holdings Inc.Technology Distributors
Second Lien Term Loan, LIBOR+7.50% cash due 5/18/20267.63 %3,195 3,163 3,178 (6)
3,163 3,178 
Sorrento Therapeutics, Inc.Biotechnology
50,000 Common Stock Units197 382 (11)
197 382 
Star US Bidco LLCIndustrial Machinery
First Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %1,194 1,114 1,199 (6)
1,114 1,199 
SumUp Holdings Luxembourg S.À.R.L.Other Diversified Financial Services
First Lien Delayed Draw Term Loan, EURIBOR+8.50% cash due 3/10/202610.00 %13,980 15,991 15,908 (6)(11)(15)(19)
15,991 15,908 
Sunland Asphalt & Construction, LLCConstruction & Engineering
First Lien Term Loan, LIBOR+6.00% cash due 1/13/20267.00 %$43,052 41,782 42,450 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/13/20227.00 %203 150 169 (6)(15)(19)
41,932 42,619 
Supermoose Borrower, LLCApplication Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.88 %8,576 7,581 7,996 (6)
7,581 7,996 
SVP-Singer Holdings Inc.Home Furnishings
First Lien Term Loan, LIBOR+6.75% cash due 7/28/20287.50 %20,976 19,537 19,735 (6)(15)
19,537 19,735 
Swordfish Merger Sub LLCAuto Parts & Equipment
Second Lien Term Loan, LIBOR+6.75% cash due 2/2/20267.75 %12,500 12,466 12,365 (6)(15)
12,466 12,365 
Tacala, LLCRestaurants
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/20288.25 %9,448 9,317 9,451 (6)
9,317 9,451 
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, 20172021
(dollar amounts in thousands)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Tecta America Corp.Construction & Engineering
Second Lien Term Loan, LIBOR+8.50% cash due 4/9/20299.25 %$5,203 $5,125 $5,203 (6)(15)
5,125 5,203 
Telestream Holdings CorporationApplication Software
First Lien Term Loan, LIBOR+8.75% cash due 10/15/20259.75 %18,510 18,017 18,250 (6)(15)
First Lien Revolver, LIBOR+8.75% cash due 10/15/20259.75 %492 464 468 (6)(15)(19)
18,481 18,718 
TerSera Therapeutics LLCPharmaceuticals
Second Lien Term Loan, LIBOR+9.50% cash due 3/30/202610.50 %29,663 29,359 29,371 (6)(15)
668,879 Common Units of TerSera Holdings LLC2,192 3,487 (15)
31,551 32,858 
TGNR HoldCo LLCIntegrated Oil & Gas
Subordinated Debt, 11.50% cash due 5/14/20264,984 4,842 4,884 (11)(15)(20)
4,842 4,884 
Thermacell Repellents, Inc.Leisure Products
First Lien Term Loan, LIBOR+5.75% cash due 12/4/20266.75 %6,636 6,603 6,603 (6)(15)
First Lien Revolver, LIBOR+5.75% cash due 12/4/2026— (4)(4)(6)(15)(19)
6,599 6,599 
Thrasio, LLCInternet & Direct Marketing Retail
First Lien Term Loan, LIBOR+7.00% cash due 12/18/20268.00 %37,876 36,736 37,686 (6)(15)
8,434 Shares of Series C-3 Preferred Stock in Thrasio Holdings, Inc.101 171 (15)
284,650.32 Shares of Series C-2 Preferred Stock in Thrasio Holdings, Inc.2,410 5,764 (15)
23,201 Shares of Series X Preferred Stock in Thrasio Holdings, Inc.22,986 24,803 (15)(19)
62,233 68,424 
TIBCO Software Inc.Application Software
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/20287.34 %16,788 16,681 17,002 (6)
16,681 17,002 
TigerConnect, Inc.Application Software
299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/202460 525 (15)
60 525 
Transact Holdings Inc.Application Software
First Lien Term Loan, LIBOR+4.75% cash due 4/30/20264.83 %6,860 6,757 6,809 (6)(15)
6,757 6,809 
Velocity Commercial Capital, LLCThrifts & Mortgage Finance
First Lien Term Loan, LIBOR+8.00% cash due 2/5/20269.00 %15,909 15,327 15,830 (6)(15)
15,327 15,830 
Veritas US Inc.Application Software
First Lien Term Loan, LIBOR+5.00% cash due 9/1/20256.00 %5,940 5,599 5,975 (6)
5,599 5,975 
Vitalyst Holdings, Inc.IT Consulting & Other Services
675 Series A Preferred Stock Units675 440 (15)
7,500 Class A Common Stock Units75 — (15)
750 440 
Win Brands Group LLCHousewares & Specialties
First Lien Term Loan, LIBOR+9.00% cash 5.00% PIK due 1/22/202610.00 %1,894 1,875 1,884 (6)(15)
181 Class F Warrants in Brand Value Growth LLC (exercise price $0.01) expiration date 1/25/2027— 119 (15)
1,875 2,003 
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, 20172021
(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)CostFair ValueNotes
Windstream Services II, LLCIntegrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %$31,598 $30,347 $31,793 (6)
18,032 Shares of Common Stock in Windstream Holdings II, LLC216 363 (15)
109,420 Warrants in Windstream Holdings II, LLC1,842 2,199 (15)
32,405 34,355 
WP CPP Holdings, LLCAerospace & Defense
First Lien Term Loan, LIBOR+3.75% cash due 4/30/20254.75 %4,369 4,005 4,264 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %16,000 15,758 15,815 (6)(15)
19,763 20,079 
WPEngine, Inc.Application Software
First Lien Term Loan, LIBOR+6.50% cash due 3/27/20267.50 %40,536 39,778 40,013 (6)(15)
39,778 40,013 
WWEX Uni Topco Holdings, LLCAir Freight & Logistics
Second Lien Term Loan, LIBOR+7.00% cash due 7/26/20297.75 %5,000 4,925 4,981 (6)
4,925 4,981 
Zep Inc.Specialty Chemicals
First Lien Term Loan, LIBOR+4.00% cash due 8/12/20245.00 %6,495 6,165 6,353 (6)
Second Lien Term Loan, LIBOR+8.25% cash due 8/11/20259.25 %22,748 22,692 21,993 (6)(15)
28,857 28,346 
Zephyr Bidco LimitedSpecialized Finance
Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/20267.55 %£18,000 23,783 24,210 (6)(11)
23,783 24,210 
Total Non-Control/Non-Affiliate Investments (172.7% of net assets)$2,236,759 $2,267,575 
Total Portfolio Investments (194.7% of net assets)$2,539,121 $2,556,629 
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares $23,600 $23,600 
Other cash accounts8,035 8,035 
Total Cash and Cash Equivalents and Restricted Cash (2.4% of net assets)$31,635 $31,635 
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (197.2% of net assets)$2,570,756 $2,588,264 

Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract$52,186 £37,709 11/12/2021JPMorgan Chase Bank, N.A.$1,339 
Foreign currency forward contract$46,663 39,736 11/12/2021JPMorgan Chase Bank, N.A.573 
$1,912 

Derivative InstrumentCompany ReceivesCompany PaysCounterpartyMaturity DateNotional AmountFair Value
Interest rate swapFixed 2.7%Floating 3-month LIBOR +1.658%Royal Bank of Canada1/15/2027$350,000$(2,108)
29
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.

Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172021
(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
 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
(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 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.
(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 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, 2021, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.08%, the 60-day LIBOR at 0.11%, the 90-day LIBOR at 0.13%, the 180-day LIBOR at 0.16%, the 360-day LIBOR at 0.24%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.05%, the 180-day UK LIBOR at 0.09%, the 30-day EURIBOR at (0.57)%, the 90-day EURIBOR at (0.56)% and the 180-day EURIBOR at (0.53)%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(7)Principal includes accumulated 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, 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, 2021 for transactions during the year ended September 30, 2021 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 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 September 30, 2021, qualifying assets represented 75.7% of the Company's total assets and non-qualifying assets represented 24.3% 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 subsequent to a restructure that occurred during the year ended September 30, 2021. As a result, the principal amount of the investment does not increase over time for accumulated PIK interest. As of September 30, 2021, the accumulated PIK interest balance for the A notes and the B notes was $0.9 million and $0.8 million, respectively.
(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(15)As of September 30, 2021, these investments were categorized as Level 3 within the fair value hierarchy established by FASB guidance under ASC 820.
(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)This investment represents a participation interest in the underlying securities shown.
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 Corporation
30
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 U.S. federal income 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 Oaktree (as amended and restated, the Investment Adviser (the “New Investment"Investment Advisory Agreement”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”Administrator"), 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 Agreement”"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 Street10. In 2019, Brookfield Asset Management Inc. (“FSAM”("Brookfield"), acquired a majority economic interest in OCG. OCG operates as an independent business within Brookfield, with its own product offerings and FSC CT LLC ("FSC CT" or the "Former Administrator"), a subsidiary of FSM, also provided certain administrativeinvestment, marketing and other services necessary forsupport teams.
On March 19, 2021, the Company to operate pursuant to an administration agreement (the "Former Administration Agreement")
On September 7, 2017, stockholders 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”), by and among Oaktree, FSM, and, for certain 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, Oaktree became the investment adviser to each ofacquired Oaktree Strategic Income Corporation (formerly known(“OCSI”), pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as Fifth Street Senior Floating Rate Corp.) (“OCSI”)of October 28, 2020, by and among OCSI, the Company. The closingCompany, Lion Merger Sub, Inc., a wholly-owned subsidiary of the Transaction resulted in an assignmentCompany (“Merger Sub”), and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the Merger Agreement, Merger Sub was first merged with and into OCSI, with OCSI as the surviving corporation (the “Merger”), and, immediately following the Merger, OCSI was then merged with and into the Company, with the Company as the surviving company (together with the Merger, the “Mergers”). In accordance with the terms of the 1940 ActMerger Agreement, at the effective time of the investment advisory agreement between FSM andMerger, each outstanding share of OCSI’s common stock was converted into the right to receive 1.3371 shares of the Company’s common stock (with OCSI’s stockholders receiving cash in lieu of fractional shares of the Company’s common stock). As a result of the Mergers, the Company and, as a result,issued an aggregate of 39,400,011 shares of its immediate termination.common stock to former OCSI stockholders.

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 U.S. federal income 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

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
32

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 certain 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 engagedapproved 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 AdviserOaktree 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, 2017June 30, 2022 and September 30, 20172021 was determined in good faith by the Board of Directors. The Board of DirectorsCompany 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'sits 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 facilities 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," "due
33

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





from broker," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable," "director fees 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:
Foreign Currency Forward Contracts
The Company uses foreign currency forward contracts to reduce the Company's exposure to fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market at the applicable forward rate. Unrealized appreciation (depreciation) on foreign currency forward contracts are recorded within derivative assets or derivative liabilities on the Consolidated Statements of Assets and Liabilities by counterparty on a net basis, not taking into account collateral posted which is recorded separately, if applicable. Purchases and settlements of foreign currency forward contracts having the same settlement date and counterparty are generally settled net and any realized gains or losses are recognized on the settlement date. The Company does not utilize hedge accounting with respect to foreign currency forward contracts and as such, the Company recognizes its foreign currency forward contracts at fair value with changes included in the net unrealized appreciation (depreciation) on the Consolidated Statements of Operations.
Interest Rate Swaps
The Company uses an interest rate swap to hedge some of the Company's fixed rate debt. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship, and therefore the periodic payments are recognized as components of interest expense in the Consolidated Statements of Operations. Depending on the nature of the balance at period end, the fair value of the interest rate swap is either included as a derivative asset or derivative liability on the Company's Consolidated Statements of Assets and Liabilities. The change in fair value of the interest rate swap is offset by a change in the carrying value of the fixed rate debt. Any amounts paid to the counterparty to cover collateral obligations under the terms of the interest rate swap agreement are included in due from broker on the Company's Consolidated Statements of Assets and Liabilities.
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. As of each of June 30, 2022 and September 30, 2021, there were no investments on non-accrual status.
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
34

OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and the interest earned by the buyer from the partial loan sales is recorded within interest expense in the Consolidated Statements of Operations.per share amounts, percentages and as otherwise indicated)




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.
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 non-recurring 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:
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.classified as Level 1 assets.
As of June 30, 2022 and September 30, 2017,2021, included in restricted cash was $6.8$2.0 million and $2.3 million, respectively, that was held at U.S.Wells Fargo Bank, National AssociationN.A. in connection with the Company's SumitomoCitibank Facility (as defined in Note 6)6. Borrowings). ThePursuant to the terms of the Citibank Facility, the Company was restricted in terms of access to this cash$2.0 million and $2.3 million as of June 30, 2022 and September 30, 2021, respectively, until thethe 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.Citibank Facility.
35

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




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, accounting and printing fees. The Company chargesrespective debt arrangement. Any 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 U.S. 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 20152020 and 20162021 and does not expect to incur a U.S. federal excise tax for calendar year 2017.2022.
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
36

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




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 2016.2019, 2020 and 2021. 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:Recently Adopted Accounting Pronouncements
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.
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 2016,2020, 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 as2020-04, Reference Rate Reform (Topic 848) Facilitation of the beginningEffects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions to ease the firstpotential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting period in which the guidance is effective.if certain criteria are met. 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 afterfrom March 12, 2020 through December 15, 2017 and early31, 2022. As of June 30, 2022, the adoption is permitted. The amendment should be adopted retrospectively. The Companyof this guidance 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 effectan impact on the Company's Consolidated Financial Statements.

Note 3. Portfolio Investments
As of December 31, 2017, 172.7%June 30, 2022, 203.0% of net assets at fair value, or $1.4$2.6 billion, was invested in 122151 portfolio companies, including the Company's investment(i) $119.3 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 $100.8Kemper Corporation ("Kemper"), co-invest in senior secured loans of middle-market companies and other corporate debt securities and (ii) $50.6 million $27.5 millionin subordinated notes and $4.9 million, respectively.LLC equity interests of OCSI Glick JV LLC ("Glick JV" and, together with SLF JV I, the "JVs"), a joint venture through which the Company and GF Equity Funding 2014 LLC ("GF Equity Funding") co-invest primarily in senior secured loans of middle-market companies. As of December 31, 2017, 5.6%June 30, 2022, 2.9% of net assets at fair value, or $45.8$36.3 million, was invested in cash and cash equivalents (including $2.0 million of restricted cash). In comparison, as of September 30, 2017, 177.7%2021, 194.7% of net assets at fair value, or $1.5$2.6 billion, was invested in 125138 portfolio investments, including the Company's investment(i) $133.9 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 valueand (ii) $55.6 million in subordinated notes and LLC equity interests of $101.0 million, $27.6 million and $5.5 million, respectively, and 6.9%Glick JV. As of September 30, 2021, 2.4% of net assets at fair value, or $59.9$31.6 million, was invested in cash and cash equivalents (including $2.3 million of restricted cash). As of December 31, 2017, 75.8%June 30, 2022, 86.6% 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%8.2% consisted of subordinated notes,debt investments, including the debt investments in SLF JV I.the JVs. As of September 30, 2017, 78.0%2021, 86.7% 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 14.4%7.6% consisted of subordinated notes,debt investments, including the debt investments in SLF JV I.the JVs.
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 and nine months ended December 31, 2017 and December 31, 2016,June 30, 2022, the Company recorded a net realized loss on investments and secured borrowingsgains of $0.3$9.2 million and $23.1$19.9 million, respectively. During the three and nine months ended December 31, 2017June 30, 2021, the Company recorded net realized gains of $8.6 million and December 31, 2016,$22.7 million, respectively. During the three and nine months ended June 30, 2022, the Company recorded net unrealized depreciation on investments and secured borrowings of $43.5$86.8 million and $74.4$118.4 million, respectively. During the three and nine months ended June 30, 2021, the Company recorded net unrealized appreciation of $3.9 million and $116.6 million, respectively.
The composition of the Company's investments as of December 31, 2017 and September 30, 2017 at cost and fair value was as follows:
37
  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 composition of the Company's debt investments as of December 31, 2017 and September 30, 2017 at fixed rates and floating rates was as follows:
  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:
  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 composition of the Company's investments as of June 30, 2022 and September 30, 2021 at cost and fair value was as follows:
 June 30, 2022September 30, 2021
 CostFair ValueCostFair Value
Investments in debt securities$2,342,876 $2,285,461 $2,222,223 $2,259,924 
Investments in equity securities126,647 110,049 120,621 107,222 
Debt investments in the JVs146,642 146,856 146,955 151,832 
Equity investments in the JVs49,322 23,023 49,322 37,651 
Total$2,665,487 $2,565,389 $2,539,121 $2,556,629 

The following table presents the composition of the Company's debt investments as of June 30, 2022 and September 30, 2021 at fixed rates and floating rates:
 June 30, 2022September 30, 2021
 Fair Value% of Debt
Portfolio
Fair Value% of Debt
Portfolio
Floating rate debt securities, including the debt investments in the JVs$2,136,619 87.84 %$2,205,648 91.45 %
Fixed rate debt securities295,698 12.16 206,108 8.55 
Total$2,432,317 100.00 %$2,411,756 100.00 %

The following table presents the financial instruments carried at fair value as of SeptemberJune 30, 20172022 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
 $
 $1,202,699
Investments in debt securities (senior secured)$— $290,889 $1,930,714 $— $2,221,603 
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 investments in the JVs)Investments in debt securities (subordinated, including the debt investments in the JVs)— 55,134 155,580 — 210,714 
Investments in equity securities (preferred) 
 
 16,445
 
 16,445
Investments in equity securities (preferred)— — 81,616 — 81,616 
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 the JVs)Investments in equity securities (common and warrants, including LLC equity interests of the JVs)4,928 — 23,505 23,023 51,456 
Total investments at fair value 
 184,035
 1,326,382
 31,338
 1,541,755
Total investments at fair value4,928 346,023 2,191,415 23,023 2,565,389 
Cash and cash equivalents 53,018
 
 
 
 53,018
Cash equivalentsCash equivalents8,657 — — — 8,657 
Derivative assetsDerivative assets— 1,134 — — 1,134 
Total assets at fair value $53,018
 $184,035
 $1,326,382
 $31,338
 $1,594,773
Total assets at fair value$13,585 $347,157 $2,191,415 $23,023 $2,575,180 
Secured borrowings relating to senior secured debt investments 
 
 13,256
 
 13,256
Derivative liabilityDerivative liability$— $30,866 $— $— $30,866 
Total liabilities at fair value $
 $
 $13,256
 $
 $13,256
Total liabilities at fair value$ $30,866 $ $ $30,866 
__________ 
(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.
38

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, 2021 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)$— $338,707 $1,878,536 $— $2,217,243 
Investments in debt securities (subordinated, including the debt investments in the JVs)— 18,196 176,317 — 194,513 
Investments in equity securities (preferred)— — 63,565 — 63,565 
Investments in equity securities (common and warrants, including LLC equity interests of the JVs)382 — 43,163 37,763 81,308 
Total investments at fair value382 356,903 2,161,581 37,763 2,556,629 
Cash equivalents23,600 — — — 23,600 
Derivative assets— 1,912 — — 1,912 
Total assets at fair value$23,982 $358,815 $2,161,581 $37,763 $2,582,141 
Derivative liability$— $2,108 $— $— $2,108 
Total liabilities at fair value$ $2,108 $ $ $2,108 
__________ 
(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 SeptemberMarch 31, 2022 to June 30, 2017 to December 31, 20172022 for all investments and secured borrowings for which the Company determined fair value using unobservable (Level 3) factors:
  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)
Investments
Senior Secured DebtSubordinated
Debt (including debt investments in the JVs)
Preferred
Equity
Common
Equity and Warrants
Total
Fair value as of March 31, 2022$1,955,858 $160,727 $84,372 $33,588 $2,234,545 
Purchases 60,692 29 — 125 60,846 
Sales and repayments(91,730)(733)— (3,890)(96,353)
Transfers in (a)28,475 — — — 28,475 
Transfers out (b)— — — (5,838)(5,838)
Capitalized PIK interest income5,537 — — — 5,537 
Accretion of OID5,100 430 — — 5,530 
Net unrealized appreciation (depreciation)(33,208)(4,873)(2,756)(873)(41,710)
Net realized gains (losses)(10)— — 393 383 
Fair value as of June 30, 2022$1,930,714 $155,580 $81,616 $23,505 $2,191,415 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2022 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2022$(33,199)$(4,873)$(2,756)$(917)$(41,745)
__________
(a) There were transfers out ofinto Level 3 tofrom Level 2 for certain investments during the quarterthree months ended December 31, 2017June 30, 2022 as a result of an increaseda change in the number of market quotes available and/or increaseda change in market liquidity.

39

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




(b) This transfer out was the result of a transaction in which Level 3 common equity was exchanged for Level 1 common equity.
The following table provides a roll-forward in the changes in fair value from March 31, 2021 to June 30, 2021 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments
Senior Secured DebtSubordinated
Debt (including debt investments in the JVs)
Preferred
Equity
Common
Equity and Warrants
Total
Fair value as of March 31, 2021$1,590,290 $157,954 $51,796 $50,339 $1,850,379 
Purchases153,259 5,041 — — 158,300 
Sales and repayments(91,799)(2,977)— (22,422)(117,198)
Transfers in (a)— — — 6,322 6,322 
Transfers out (a)(6,322)— — — (6,322)
Capitalized PIK interest income4,243 — — — 4,243 
Accretion of OID7,383 297 — — 7,680 
Net unrealized appreciation (depreciation)4,585 781 664 (2,784)3,246 
Net realized gains (losses)(52)344 — 7,093 7,385 
Fair value as of June 30, 2021$1,661,587 $161,440 $52,460 $38,548 $1,914,035 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2021 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2021$11,295 $1,085 $664 $656 $13,700 
(a) There was one transfer from senior secured debt to common equity and warrants during the three months ended June 30, 2021 as a result of an investment restructuring, in which $6.3 million of senior secured debt was exchanged for $6.3 million of common equity.

The following table provides a roll-forward in the changes in fair value from September 30, 20162021 to December 31, 2016June 30, 2022 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 investments in the JVs)
Preferred
Equity
Common
Equity and Warrants
Total
Fair value as of September 30, 2021$1,878,536 $176,317 $63,565 $43,163 $2,161,581 
Purchases 437,922 3,777 19,243 2,180 463,122 
Sales and repayments(391,959)(21,868)(163)(12,836)(426,826)
Transfers in (a)37,042 — — — 37,042 
Transfers out (a)(b)(17,070)— — (5,838)(22,908)
Capitalized PIK interest income16,653 313 — — 16,966 
Accretion of OID19,048 1,628 — — 20,676 
Net unrealized appreciation (depreciation)(57,909)(4,587)(517)(2,520)(65,533)
Net realized gains (losses)8,451 — (512)(644)7,295 
Fair value as of June 30, 2022$1,930,714 $155,580 $81,616 $23,505 $2,191,415 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2022 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2022$(45,187)$(4,734)$(752)$(7,629)$(58,302)
__________
(a) There were transfers into/out of Level 3 from/to Level 2 for certain investments during the nine months ended June 30, 2022 as a result of a change in the number of market quotes available and/or a change in market liquidity.
(b) This transfer out was the result of a transaction in which Level 3 common equity was exchanged for Level 1 common equity.

40
  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)




The following table provides a roll-forward in the changes in fair value from September 30, 2020 to June 30, 2021 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments
Senior Secured DebtSubordinated
Debt (including debt investment in the JVs)
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 (a)923,185 51,327 19,958 2,377 996,847 
Sales and repayments(246,671)(44,191)(31)(28,622)(319,515)
Transfers in (b)(c)(d)18,458 — — 6,759 25,217 
Transfers out (d)(6,322)— — — (6,322)
Capitalized PIK interest income10,991 — — — 10,991 
Accretion of OID11,806 1,328 — — 13,134 
Net unrealized appreciation (depreciation)47,469 18,089 2,543 12,618 80,719 
Net realized gains (losses)(1,566)8,735 31 10,336 17,536 
Fair value as of June 30, 2021$1,661,587 $161,440 $52,460 $38,548 $1,914,035 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2021 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2021$51,977 $4,770 $2,543 $12,429 $71,719 
__________
(a) Includes the Level 3 investments acquired in connection with the Mergers during the nine months ended June 30, 2021.
(b) There were transfers into Level 3 from Level 2 for certain investments during the nine months ended June 30, 2021 as a result of a change in the number of market quotes available and/or a change in market liquidity.
(c) 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.
(d) There was one transfer from senior secured debt to common equity and warrants during the nine months ended June 30, 2021 as a result of an investment restructuring, in which $6.3 million of senior secured debt was exchanged for $6.3 million of common equity.

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:June 30, 2022:
AssetFair ValueValuation TechniqueUnobservable InputRangeWeighted
Average (a)
Senior Secured Debt$1,559,851 Market YieldMarket Yield(b)7.0%-25.0%12.7%
25,835 Enterprise ValueEBITDA Multiple(c)5.0x-7.0x6.0x
23,937 Transaction PrecedentTransaction Price(d)N/A-N/AN/A
321,091 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Subordinated Debt8,724 Market YieldMarket Yield(b)13.0%-17.0%14.8%
Debt Investments in the JVs146,856 Enterprise ValueN/A(f)N/A-N/AN/A
Preferred & Common Equity63,662 Enterprise ValueRevenue Multiple(c)0.5x-8.4x4.5x
41,336 Enterprise ValueEBITDA Multiple(c)3.3x-17.7x10.5x
Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
120 Transaction PrecedentTransaction Price(d)N/A-N/AN/A
Total$2,191,415 
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 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.
(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 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
41

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




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 each JV based on the total assets less the total liabilities senior to the subordinated notes held at such JV in an amount not exceeding par under the EV technique.
The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2021:
AssetFair ValueValuation TechniqueUnobservable InputRangeWeighted
Average (a)
Senior Secured Debt$1,413,373 Market YieldMarket Yield(b)4.0%-30.0%10.4%
36,197 Enterprise ValueEBITDA Multiple(c)3.0x-9.0x4.5x
7,500 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
421,466 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Subordinated Debt24,485 Market YieldMarket Yield(b)12.0%-14.0%12.6%
Debt Investments in the JVs151,832 Enterprise ValueN/A(f)N/A-N/AN/A
Preferred & Common Equity6,188 Enterprise ValueRevenue Multiple(c)0.9x-11.2x2.5x
93,520 Enterprise ValueEBITDA Multiple(c)3.0x-35.0x15.9x
698 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
6,322 Transactions PrecedentTransaction Price(d)N/A-N/AN/A
Total$2,161,581 
__________
(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 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 each JV based on the total assets less the total liabilities senior to the subordinated notes held at such JV in an amount not exceeding par under the EV technique.
Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities and secured borrowings as of December 31, 2017 is the market yield. Increases or decreases in the 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 December 31, 2017 is the earnings before interest, taxes, depreciation and amortization ("EBITDA")/Revenue/Asset multiple. Increases, revenue 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 andasset multiple, as otherwise indicated)





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 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
           
__________
(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 inputs 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). Increases or decreases in any of those inputs in isolation may result in a lower or higher fair value measurement, respectively.
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 September 30, 2017 is the EBITDA/Revenue multiple.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, 2017June 30, 2022 and the level of each financial liability within the fair value hierarchy:
 
Carrying
Value
Fair ValueLevel 1Level 2Level 3
Syndicated Facility payable$575,000 $575,000 $— $— $575,000 
Citibank Facility payable170,000 170,000 — — 170,000 
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)296,678 283,956 — 283,956 — 
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)314,928 301,144 — 301,144 — 
Total$1,356,606 $1,330,100 $ $585,100 $745,000 
42

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




  
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, 20172021 and the level of each financial liability within the fair value hierarchy:
Carrying
Value
Fair ValueLevel 1Level 2Level 3
Syndicated Facility payable$495,000 $495,000 $— $— $495,000 
Citibank Facility payable135,000 135,000 — — 135,000 
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)295,740 314,541 — 314,541 — 
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)343,003 351,134 — 351,134 — 
Total$1,268,743 $1,295,675 $ $665,675 $630,000 
  
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
The principal values of the credit facilities payable approximate their fair valuesvalue due to their variable interest rates and are included in Level 3 of the hierarchy.
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% unsecured3.500% notes due 2019 ("20192025 (the "2025 Notes") and 2.700% notes due 2027 (the "2027 Notes"), which are included in Level 32 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:
 June 30, 2022September 30, 2021
Cost: % of Total Investments% of Total Investments
Senior secured debt$2,269,332 85.14 %$2,179,907 85.85 %
Debt investments in the JVs146,642 5.50 %146,955 5.79 %
Preferred equity84,881 3.18 %65,939 2.60 %
Subordinated debt73,544 2.76 %42,316 1.67 %
LLC equity interests of the JVs49,322 1.85 %49,322 1.94 %
Common equity and warrants41,766 1.57 %54,682 2.15 %
Total$2,665,487 100.00 %$2,539,121 100.00 %

 June 30, 2022September 30, 2021
Fair Value: % of Total Investments% of Net Assets% of Total Investments% of Net Assets
Senior secured debt$2,221,603 86.60 %175.82 %$2,217,243 86.72 %168.89 %
Debt investments in the JVs146,856 5.72 %11.63 %151,832 5.94 %11.56 %
Preferred equity81,616 3.18 %6.46 %63,565 2.49 %4.84 %
Subordinated debt63,858 2.49 %5.05 %42,681 1.67 %3.25 %
LLC equity interests of the JVs28,433 1.11 %2.25 %37,651 1.47 %2.87 %
Common equity and warrants23,023 0.90 %1.82 %43,657 1.71 %3.33 %
Total$2,565,389 100.00 %203.03 %$2,556,629 100.00 %194.74 %

43
  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, 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:
 June 30, 2022September 30, 2021
Cost: % of Total Investments % of Total Investments
Northeast$736,761 27.65 %$720,781 28.39 %
Midwest389,291 14.60 %385,846 15.20 %
West363,764 13.65 %365,471 14.39 %
Southeast357,164 13.40 %294,339 11.59 %
International293,670 11.02 %268,817 10.59 %
Southwest240,777 9.03 %256,227 10.09 %
South192,806 7.23 %156,764 6.17 %
Northwest91,254 3.42 %90,876 3.58 %
Total$2,665,487 100.00 %$2,539,121 100.00 %

 June 30, 2022September 30, 2021
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Northeast$694,038 27.07 %54.92 %$721,647 28.24 %54.97 %
Midwest372,834 14.53 %29.51 %382,475 14.96 %29.13 %
West355,367 13.85 %28.12 %371,257 14.52 %28.28 %
Southeast349,474 13.62 %27.66 %299,486 11.71 %22.81 %
International280,481 10.93 %22.20 %275,904 10.79 %21.02 %
Southwest237,561 9.26 %18.80 %258,940 10.13 %19.72 %
South185,473 7.23 %14.68 %155,526 6.08 %11.85 %
Northwest90,161 3.51 %7.14 %91,394 3.57 %6.96 %
Total$2,565,389 100.00 %203.03 %$2,556,629 100.00 %194.74 %
44

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
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%
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, 2017June 30, 2022 and September 30, 2017 was as follows:2021:
June 30, 2022September 30, 2021
Cost: % of Total Investments % of Total Investments
Application Software$407,964 15.30 %$367,265 14.49 %
Multi-Sector Holdings (1)195,964 7.35 196,277 7.73 
Pharmaceuticals129,031 4.84 138,250 5.44 
Data Processing & Outsourced Services120,453 4.52 120,381 4.74 
Biotechnology102,578 3.85 111,856 4.41 
Health Care Technology98,274 3.69 13,877 0.55 
Industrial Machinery78,306 2.94 88,231 3.47 
Aerospace & Defense74,567 2.80 67,629 2.66 
Specialized Finance73,757 2.77 68,554 2.70 
Internet & Direct Marketing Retail67,975 2.55 62,233 2.45 
Fertilizers & Agricultural Chemicals64,598 2.42 66,713 2.63 
Construction & Engineering61,195 2.30 61,874 2.44 
Health Care Services59,504 2.23 84,750 3.34 
Automotive Retail59,138 2.22 41,800 1.65 
Internet Services & Infrastructure53,814 2.02 46,917 1.85 
Personal Products53,042 1.99 103,642 4.08 
Metal & Glass Containers46,711 1.75 17,443 0.69 
Health Care Distributors46,497 1.74 19,698 0.78 
Home Improvement Retail46,046 1.73 46,487 1.83 
Leisure Facilities42,986 1.61 25,162 0.99 
Airport Services42,900 1.61 41,699 1.64 
Real Estate Services40,293 1.51 40,445 1.59 
Real Estate Operating Companies39,449 1.48 27,531 1.08 
Diversified Support Services38,017 1.43 40,666 1.60 
Specialty Chemicals37,740 1.42 46,731 1.84 
Health Care Supplies36,248 1.36 29,650 1.17 
Insurance Brokers35,652 1.34 25,515 1.00 
Integrated Telecommunication Services34,675 1.30 47,059 1.85 
Soft Drinks34,607 1.30 33,410 1.32 
Electrical Components & Equipment33,816 1.27 32,127 1.27 
Oil & Gas Storage & Transportation31,419 1.18 36,612 1.44 
Advertising29,930 1.12 28,649 1.13 
Other Diversified Financial Services29,286 1.10 16,104 0.63 
Oil & Gas Refining & Marketing27,686 1.04 36,044 1.42 
Movies & Entertainment26,121 0.98 26,002 1.02 
Distributors25,293 0.95 — — 
Health Care Equipment24,134 0.91 23,674 0.93 
Environmental & Facilities Services19,580 0.73 — — 
Home Furnishings19,547 0.73 19,537 0.77 
Cable & Satellite19,279 0.72 26,730 1.05 
Systems Software14,886 0.56 6,647 0.26 
Consumer Finance14,481 0.54 — — 
Hotels, Resorts & Cruise Lines13,941 0.52 — — 
Auto Parts & Equipment12,472 0.47 12,466 0.49 
IT Consulting & Other Services11,711 0.44 7,598 0.30 
Research & Consulting Services10,138 0.38 7,354 0.29 
Air Freight & Logistics9,664 0.36 4,925 0.19 
Restaurants9,333 0.35 9,317 0.37 
Education Services9,068 0.34 981 0.04 
Trading Companies & Distributors7,616 0.29 — — 
Apparel, Accessories & Luxury Goods5,165 0.19 5,165 0.20 
Integrated Oil & Gas4,860 0.18 4,842 0.19 
Food Distributors4,643 0.17 4,625 0.18 
Apparel Retail4,408 0.17 — — 
Specialized REITs4,303 0.16 — — 
Communications Equipment3,774 0.14 — — 
Housewares & Specialties3,755 0.14 1,875 0.07 
Diversified Banks3,515 0.13 3,515 0.14 
Technology Distributors3,163 0.12 3,163 0.12 
Construction Materials2,309 0.09 2,245 0.09 
Alternative Carriers2,120 0.08 6,578 0.26 
Electronic Components2,090 0.08 10,080 0.40 
Independent Power Producers & Energy Traders— — 23,458 0.92 
Airlines— — 22,417 0.88 
Commercial Printing— — 19,685 0.78 
Managed Health Care— — 18,654 0.73 
Thrifts & Mortgage Finance— — 16,079 0.63 
Property & Casualty Insurance— — 9,884 0.39 
Leisure Products— — 6,599 0.26 
Food Retail— — 3,745 0.15 
$2,665,487 100.00 %$2,539,121 100.00 %
45

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




June 30, 2022September 30, 2021
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Application Software$403,073 15.69 %31.94 %$372,606 14.58 %28.39 %
Multi-Sector Holdings (1)169,879 6.62 13.44 189,483 7.41 14.43 
Pharmaceuticals121,216 4.73 9.59 142,194 5.56 10.83 
Data Processing & Outsourced Services112,348 4.38 8.89 113,923 4.46 8.68 
Biotechnology101,748 3.97 8.05 113,641 4.44 8.66 
Health Care Technology96,449 3.76 7.63 13,960 0.55 1.06 
Industrial Machinery77,516 3.02 6.13 90,218 3.53 6.87 
Internet & Direct Marketing Retail72,773 2.84 5.76 68,424 2.68 5.21 
Aerospace & Defense72,127 2.81 5.71 69,602 2.72 5.30 
Specialized Finance68,856 2.68 5.45 68,844 2.69 5.24 
Fertilizers & Agricultural Chemicals64,565 2.52 5.11 67,527 2.64 5.14 
Construction & Engineering61,536 2.40 4.87 63,109 2.47 4.81 
Automotive Retail58,201 2.27 4.61 42,133 1.65 3.21 
Internet Services & Infrastructure54,068 2.11 4.28 47,923 1.87 3.65 
Health Care Services52,574 2.05 4.16 84,735 3.31 6.45 
Personal Products52,165 2.03 4.13 105,530 4.13 8.04 
Metal & Glass Containers46,658 1.82 3.69 17,413 0.68 1.33 
Home Improvement Retail45,907 1.79 3.63 46,488 1.82 3.54 
Health Care Distributors44,778 1.75 3.54 19,683 0.77 1.50 
Airport Services42,001 1.64 3.32 40,776 1.59 3.11 
Leisure Facilities41,519 1.62 3.29 22,888 0.90 1.74 
Real Estate Services40,086 1.56 3.17 41,225 1.61 3.14 
Real Estate Operating Companies39,994 1.56 3.17 28,341 1.11 2.16 
Diversified Support Services37,144 1.45 2.94 40,888 1.60 3.11 
Health Care Supplies36,295 1.41 2.87 30,186 1.18 2.30 
Specialty Chemicals35,393 1.38 2.80 46,559 1.82 3.55 
Insurance Brokers34,995 1.36 2.77 27,612 1.08 2.10 
Soft Drinks33,918 1.32 2.68 33,410 1.31 2.54 
Integrated Telecommunication Services33,264 1.30 2.63 49,607 1.94 3.78 
Electrical Components & Equipment32,802 1.28 2.60 32,142 1.26 2.45 
Advertising28,394 1.11 2.25 30,423 1.19 2.32 
Oil & Gas Storage & Transportation28,045 1.09 2.22 34,462 1.35 2.63 
Oil & Gas Refining & Marketing27,465 1.07 2.17 36,546 1.43 2.78 
Movies & Entertainment26,953 1.05 2.13 27,048 1.06 2.06 
Other Diversified Financial Services25,623 1.00 2.03 15,908 0.62 1.21 
Distributors24,579 0.96 1.95 — — — 
Health Care Equipment23,805 0.93 1.88 23,763 0.93 1.81 
Environmental & Facilities Services19,211 0.75 1.52 — — — 
Home Furnishings18,802 0.73 1.49 19,735 0.77 1.50 
Cable & Satellite18,068 0.70 1.43 27,048 1.06 2.06 
Consumer Finance14,317 0.56 1.13 — — — 
Hotels, Resorts & Cruise Lines13,939 0.54 1.10 — — — 
Systems Software12,713 0.50 1.01 6,769 0.26 0.52 
Auto Parts & Equipment11,833 0.46 0.94 12,365 0.48 0.94 
IT Consulting & Other Services10,272 0.40 0.81 7,443 0.29 0.57 
Research & Consulting Services9,479 0.37 0.75 7,606 0.30 0.58 
Air Freight & Logistics9,074 0.35 0.72 4,981 0.19 0.38 
Restaurants8,865 0.35 0.70 9,451 0.37 0.72 
Education Services8,541 0.33 0.68 1,009 0.04 0.08 
Trading Companies & Distributors5,828 0.23 0.46 — — — 
Integrated Oil & Gas4,859 0.19 0.38 4,884 0.19 0.37 
Apparel Retail4,368 0.17 0.35 — — — 
Housewares & Specialties3,948 0.15 0.31 2,003 0.08 0.15 
Communications Equipment3,559 0.14 0.28 — — — 
Specialized REITs3,556 0.14 0.28 — — — 
Food Distributors3,540 0.14 0.28 4,673 0.18 0.36 
Diversified Banks3,310 0.13 0.26 3,562 0.14 0.27 
Technology Distributors3,069 0.12 0.24 3,178 0.12 0.24 
Electronic Components1,957 0.08 0.15 10,127 0.40 0.77 
Construction Materials1,791 0.07 0.14 2,350 0.09 0.18 
Alternative Carriers1,778 0.07 0.14 6,939 0.27 0.53 
Airlines— — — 24,554 0.96 1.87 
Independent Power Producers & Energy Traders— — — 23,552 0.92 1.79 
Commercial Printing— — — 20,100 0.79 1.53 
Managed Health Care— — — 18,840 0.74 1.44 
Thrifts & Mortgage Finance— — — 15,942 0.62 1.21 
Property & Casualty Insurance— — — 9,949 0.39 0.76 
Leisure Products— — — 6,599 0.26 0.50 
Food Retail— — — 3,750 0.15 0.29 
Total$2,565,389 100.00 %203.03 %$2,556,629 100.00 %194.74 %
___________________
(1)This industry includes the Company's investments in the JVs and certain limited partnership interests.

46
  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%
___________________
(1)This industry includes the Company's investment in SLF JV I.
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, 2017June 30, 2022 and September 30, 2017,2021, 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 and December 31, 2016, no individual investment produced investment income that exceeded 10% of total investment income.

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 (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, 2017June 30, 2022 and September 30, 2017,2021, 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,outstanding SLF JV I Notes. SLF JV I is not an "eligible portfolio company" as defined in section 2(a)(46) of the outstanding mezzanine notes.Investment Company Act.
SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch (as amended, the "Deutsche"SLF JV I Deutsche Bank I facility"Facility"), which permitted up to $200.0$260.0 million of borrowings (subject to borrowing base and other limitations) as of December 31, 2017each of June 30, 2022 and September 30, 2017. As of December 31, 2017, the stated maturity date of the Deutsche Bank I facility was July 1, 2023, and borrowings2021. Borrowings under the Deutsche Bank I facility bear interest at a rate equal to 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. Under the Deutsche Bank I facility, $105.1 million and $71.5 million of borrowings 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.
As of December 31, 2017, borrowings under the Deutsche Bank I facility wereFacility are secured by all of the assets of theSLF JV I Funding LLC, a special purpose financing subsidiary of SLF JV I.
As of December 31, 2017June 30, 2022, the reinvestment period of the SLF JV I Deutsche Bank Facility was scheduled to expire May 3, 2023 and the maturity date was May 3, 2028. As of June 30, 2022, borrowings under the SLF JV I Deutsche Bank Facility accrued interest at a rate equal to 3-month LIBOR plus 2.00% per annum during the reinvestment period, 3-month LIBOR plus 2.15% per annum for the first year after the reinvestment period, 3-month LIBOR plus 2.25% for the following year and 3-month LIBOR plus 2.50% thereafter, in each case with a 0.125% LIBOR floor. $215.0 million and $215.6 million of borrowings were outstanding under the SLF JV I Deutsche Bank Facility as of June 30, 2022 and September 30, 2017,2021, respectively.
As of June 30, 2022 and September 30, 2021, SLF JV I had total assets of $284.5$365.0 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$379.2 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-marketsenior secured loans to 56 and other corporate debt securities of 34 and 32 "eligible55 portfolio companies" (as defined in Section 2(a)(46) of the 1940 Act)companies as of December 31, 2017June 30, 2022 and September 30, 2017,2021, respectively. The portfolio companies in SLF JV I are in industries similar to those in which the Company may invest directly. As of June 30, 2022, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $119.3 million in aggregate, at fair value. As of September 30, 2021, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $133.9 million in aggregate, at fair value.
As of each of December 31, 2017June 30, 2022 and September 30, 2017,2021, 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,each of June 30, 2022 and September 30, 2021, the Company and Kemper had the optionaggregate commitments to fund SLF JV I of $35.0 million, of which approximately $26.2 million was to fund additional mezzanine notes, subject to additional equity funding to SLF JV I. As of each of December 31, 2017I Notes and September 30, 2017, the Company had commitmentsapproximately $8.8 million was to fund LLC equity interests in SLF JV II.
Below is a summary of $17.5 million,SLF JV I's portfolio, followed by a listing of which $1.3 million was unfunded.the individual loans in SLF JV I's portfolio as of June 30, 2022 and September 30, 2021:
June 30, 2022September 30, 2021
Senior secured loans (1)$357,198$344,196
Weighted average interest rate on senior secured loans (2)6.79%5.60%
Number of borrowers in SLF JV I5655
Largest exposure to a single borrower (1)$9,650$9,875
Total of five largest loan exposures to borrowers (1)$47,298$46,984
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

47

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, 2017 and September 30, 2017:
  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 annual interest rate on accruing senior secured loans.

SLF JV I Portfolio as of December 31, 2017June 30, 2022
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Access CIG, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 2/27/20255.32 %Diversified Support Services$9,038 $9,017 $8,561 
ADB Companies, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 12/18/20258.50 %Construction & Engineering8,641 8,500 8,498 (4)
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20237.50 %Pharmaceuticals9,385 9,273 8,291 (4)
American Tire Distributors, Inc.First Lien Term Loan, LIBOR+6.25% cash due 10/20/20287.00 %Distributors4,885 4,824 4,631 (4)
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.92 %Movies & Entertainment7,820 7,742 7,631 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/20256.00 %Personal Products1,543 1,206 1,238 (4)
Apptio, Inc.First Lien Term Loan, LIBOR+6.00% cash due 1/10/20257.25 %Application Software4,615 4,576 4,511 (4)
Apptio, Inc.First Lien Revolver, LIBOR+6.00% cash due 1/10/20257.25 %Application Software154 151 145 (4)(5)
Total Apptio, Inc.4,769 4,727 4,656 
ASP-R-PAC Acquisition Co LLCFirst Lien Term Loan, LIBOR+6.00% cash due 12/29/20277.67 %Paper Packaging4,187 4,110 4,086 
ASP-R-PAC Acquisition Co LLCFirst Lien Revolver, LIBOR+6.00% cash due 12/29/2027Paper Packaging— (9)(12)(5)
Total ASP-R-PAC Acquisition Co LLC4,187 4,101 4,074 
Astra Acquisition Corp.First Lien Term Loan, LIBOR+5.25% cash due 10/25/20286.92 %Application Software6,670 6,507 5,831 (4)
Asurion, LLCSecond Lien Term Loan, LIBOR+5.25% cash due 1/20/20296.92 %Property & Casualty Insurance1,846 1,828 1,579 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.63 %Airport Services6,353 6,252 6,030 (4)
BAART Programs, Inc.First Lien Term Loan, LIBOR+5.00% cash due 6/11/20276.67 %Health Care Services6,386 6,327 6,291 
BAART Programs, Inc.First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.60 %Health Care Services1,577 1,558 1,533 (4)(5)
Total BAART Programs, Inc.7,963 7,885 7,824 
Blackhawk Network Holdings, Inc.First Lien Term Loan, LIBOR+3.00% cash due 6/15/20255.05 %Data Processing & Outsourced Services9,600 9,590 9,100 
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20255.60 %Oil & Gas Equipment & Services4,203 4,194 4,059 
BYJU's Alpha, Inc.First Lien Term Loan, LIBOR+5.50% cash due 11/24/20267.01 %Application Software7,463 7,360 6,380 
C5 Technology Holdings, LLC171 Common UnitsData Processing & Outsourced Services— — (4)
C5 Technology Holdings, LLC7,193,539.63 Preferred UnitsData Processing & Outsourced Services7,194 5,683 (4)
Total C5 Technology Holdings, LLC7,194 5,683 
Centerline Communications, LLCFirst Lien Term Loan, SOFR+5.50% cash due 8/10/20277.05 %Wireless Telecommunication Services4,368 4,292 4,291 
Centerline Communications, LLCFirst Lien Delayed Draw Term Loan, SOFR+5.50% cash due 8/10/20277.05 %Wireless Telecommunication Services450 428 414 (5)
Centerline Communications, LLCFirst Lien Revolver, LIBOR+5.50% cash due 8/10/2027Wireless Telecommunication Services— (10)(11)(5)
Total Centerline Communications, LLC4,818 4,710 4,694 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.92 %Oil & Gas Refining & Marketing7,056 6,985 7,014 (4)
City Football Group LimitedFirst Lien Term Loan, LIBOR+3.50% cash due 7/21/20284.60 %Movies & Entertainment6,484 6,451 5,997 
48
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)





Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Convergeone Holdings, Inc.First Lien Term Loan, LIBOR+5.00% cash due 1/4/20266.67 %IT Consulting & Other Services$7,392 $7,211 $6,357 (4)
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+3.75% cash due 7/9/20266.00 %Biotechnology5,835 5,791 5,525 
Delivery Hero FinCo LLCFirst Lien Term Loan, SOFR+5.75% cash due 7/9/20276.88 %Internet & Direct Marketing Retail5,050 4,948 4,760 (4)
DirecTV Financing, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 8/2/20276.67 %Cable & Satellite5,595 5,539 5,167 (4)
Domtar CorporationFirst Lien Term Loan, LIBOR+5.50% cash due 11/30/20286.69 %Paper Products4,110 4,075 3,967 
DTI Holdco, Inc.First Lien Term Loan, SOFR+4.75% cash due 4/26/20296.28 %Research & Consulting Services8,000 7,843 7,511 (4)
Eagle Parent Corp.First Lien Term Loan, SOFR+4.25% cash due 4/1/20296.30 %Industrial Machinery4,489 4,380 4,317 
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20276.17 %Application Software7,350 7,277 6,809 
Gibson Brands, Inc.First Lien Term Loan, LIBOR+5.00% cash due 8/11/20286.41 %Leisure Products7,463 7,388 6,380 
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.92 %Health Care Services1,985 1,985 1,852 (4)
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/2/20255.25 %Health Care Services2,198 2,168 2,050 
Total Global Medical Response, Inc.4,183 4,153 3,902 
Harbor Purchaser Inc.First Lien Term Loan, SOFR+5.25% cash due 4/9/20296.88 %Education Services8,000 7,765 7,275 (4)
Indivior Finance S.À.R.L.First Lien Term Loan, SOFR+5.25% cash due 6/30/20267.57 %Pharmaceuticals7,425 7,304 7,252 
INW Manufacturing, LLCFirst Lien Term Loan, LIBOR+5.75% cash due 3/25/20278.00 %Personal Products9,625 9,391 9,096 (4)
Iris Holding, Inc.First Lien Term Loan, SOFR+4.75% cash due 6/15/20285.25 %Metal & Glass Containers4,000 3,680 3,663 
LaserAway Intermediate Holdings II, LLCFirst Lien Term Loan, LIBOR+5.75% cash due 10/14/20276.79 %Health Care Services7,463 7,330 7,355 
Lightbox Intermediate, L.P.First Lien Term Loan, LIBOR+5.00% cash due 5/9/20267.25 %Real Estate Services7,386 7,331 7,201 (4)
LogMeIn, Inc.First Lien Term Loan, LIBOR+4.75% cash due 8/31/20276.35 %Application Software7,880 7,766 6,087 
LTI Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 9/6/20255.17 %Electronic Components7,385 7,294 6,891 
Mindbody, Inc.First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.38 %Internet Services & Infrastructure4,669 4,629 4,580 (4)
Mindbody, Inc.First Lien Revolver, LIBOR+8.00% cash due 2/14/2025Internet Services & Infrastructure— (4)(9)(4)(5)
Total Mindbody, Inc.4,669 4,625 4,571 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20267.75 %Application Software6,154 6,120 6,031 (4)
MRI Software LLCFirst Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (3)(7)(4)(5)
Total MRI Software LLC6,154 6,117 6,024 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20256.55 %Electrical Components & Equipment6,703 6,689 6,501 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.67 %Application Software7,797 7,761 7,270 (4)
Park Place Technologies, LLCFirst Lien Term Loan, SOFR+5.00% cash due 11/10/20276.63 %Internet Services & Infrastructure4,938 4,786 4,761 (4)
Peloton Interactive, Inc.First Lien Term Loan, SOFR+6.50% cash due 5/17/20277.00 %Leisure Products4,000 3,822 3,823 
Planview Parent, Inc.Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.92 %Application Software4,503 4,435 4,323 (4)
Pluralsight, LLCFirst Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %Application Software6,795 6,687 6,605 (4)
Pluralsight, LLCFirst Lien Revolver, LIBOR+8.00% cash due 4/6/2027Application Software— (7)(12)(4)(5)
Total Pluralsight, LLC6,795 6,680 6,593 
49

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
RevSpring, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/11/20255.67 %Commercial Printing$9,650 $9,630 $9,264 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20266.19 %Metal & Glass Containers2,591 2,565 2,468 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.25% cash due 4/27/20246.49 %Footwear8,223 8,215 7,483 
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.23% cash due 4/27/20246.47 %Footwear138 138 125 
Total SHO Holding I Corporation8,361 8,353 7,608 
Sorenson Communications, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 3/17/20267.75 %Communications Equipment2,628 2,602 2,578 
Spanx, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 11/20/20287.10 %Apparel Retail8,955 8,792 8,743 (4)
SPX Flow, Inc.First Lien Term Loan, LIBOR+4.60% cash due 4/5/20296.13 %Industrial Machinery7,453 7,128 6,965 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20256.00 %Application Software7,763 7,475 7,049 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.75% cash due 8/31/20264.95 %Health Care Facilities3,386 3,374 3,165 
Touchstone Acquisition, Inc.First Lien Term Loan, LIBOR+6.00% cash due 12/29/20287.67 %Health Care Supplies7,304 7,167 7,085 (4)
Veritas US Inc.First Lien Term Loan, LIBOR+5.00% cash due 9/1/20257.25 %Application Software6,365 6,284 5,257 (4)
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.92 %Integrated Telecommunication Services7,838 7,604 7,364 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.99 %Aerospace & Defense6,000 5,970 4,965 (4)
WP CPP Holdings, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 4/30/20254.99 %Aerospace & Defense1,990 1,907 1,672 (4)
Total Portfolio Investments$357,198 $358,578 $339,335 
_________
(1) Represents the interest rate as of December 31, 2017.June 30, 2022. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for most of the 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. Certain loans may also be indexed to SOFR. 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 the reference rates based on each respective credit agreement and the cash interest rate as of period end. All the LIBOR shown above is in U.S. dollars. As of June 30, 2022, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 1.67%, the 90-day LIBOR at 2.25%, the 180-day LIBOR at 2.88%, the 360-day LIBOR at 3.61%, the 30-day SOFR at 1.53% and the 90-day SOFR at 2.05%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.
(3) Represents the current determination of fair value as of December 31, 2017June 30, 2022 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, 2017.June 30, 2022.
(4)(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.
50

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, 2021

Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
Access CIG, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 2/27/20253.83 %Diversified Support Services$9,111 $9,084 $9,078 (4)
ADB Companies, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25 %Construction & Engineering7,732 7,566 7,644 (4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.12 %Integrated Telecommunication Services2,596 2,468 2,591 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25 %Pharmaceuticals9,755 9,580 9,443 (4)
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00 %Movies & Entertainment7,880 7,801 7,680 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/20253.88 %Personal Products2,799 2,211 2,378 
Apptio, Inc.First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25 %Application Software4,615 4,565 4,544 (4)
Apptio, Inc.First Lien Revolver, LIBOR+7.25% cash due 1/10/20258.25 %Application Software154 150 148 (4)(5)
Total Apptio, Inc.4,769 4,715 4,692 
Asurion, LLCSecond Lien Term Loan, LIBOR+5.25% cash due 1/20/20295.33 %Property & Casualty Insurance6,000 5,940 5,980 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00 %Airport Services6,403 6,283 6,025 (4)
BAART Programs, Inc.First Lien Term Loan, LIBOR+5.00% cash due 6/11/20276.00 %Health Care Services5,985 5,925 5,970 
BAART Programs, Inc.First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.00 %Health Care Services450 436 446 (5)
Total BAART Programs, Inc.6,435 6,361 6,416 
Blackhawk Network Holdings, Inc.First Lien Term Loan, LIBOR+3.00% cash due 6/15/20253.08 %Data Processing & Outsourced Services9,675 9,662 9,615 
Boxer Parent Company Inc.First Lien Term Loan, LIBOR+3.75% cash due 10/2/20253.88 %Systems Software6,643 6,570 6,615 
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.08 %Oil & Gas Equipment & Services7,253 7,234 7,158 
C5 Technology Holdings, LLC171 Common UnitsData Processing & Outsourced Services— — (4)
C5 Technology Holdings, LLC7,193,539.63 Preferred UnitsData Processing & Outsourced Services7,194 5,683 (4)
Total C5 Technology Holdings, LLC7,194 5,683 
Centerline Communications, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 8/10/20276.50 %Wireless Telecommunication Services2,000 1,961 1,960 
Centerline Communications, LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/10/20236.50 %Wireless Telecommunication Services1,920 1,890 1,889 (5)
Centerline Communications, LLCFirst Lien Revolver, LIBOR+5.50% cash due 8/10/2027Wireless Telecommunication Services— (12)(12)(5)
Total Centerline Communications, LLC3,920 3,839 3,837 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25 %Oil & Gas Refining & Marketing7,111 7,040 7,134 (4)
City Football Group LimitedFirst Lien Term Loan, LIBOR+3.50% cash due 7/21/20284.00 %Movies & Entertainment6,500 6,468 6,492 
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+3.50% cash due 12/11/20264.50 %Alternative Carriers7,362 7,204 7,376 
Convergeone Holdings, Inc.First Lien Term Loan, LIBOR+5.00% cash due 1/4/20265.08 %IT Consulting & Other Services7,449 7,229 7,427 (4)
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+4.00% cash due 7/9/20264.13 %Biotechnology5,880 5,836 5,884 
Dcert Buyer, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.08 %Internet Services & Infrastructure5,885 5,870 5,893 
DirecTV Financing, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 8/2/20275.75 %Cable & Satellite6,000 5,940 6,011 (4)
Enviva Holdings, LPFirst Lien Term Loan, LIBOR+5.50% cash due 2/17/20266.50 %Forest Products5,878 5,819 5,893 
51

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
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.50 %Application Software$7,406 $7,332 $7,451 
GI Chill Acquisition LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/6/20253.90 %Managed Health Care3,721 3,737 3,712 (4)
GI Chill Acquisition LLCSecond Lien Term Loan, LIBOR+7.50% cash due 8/6/20267.63 %Managed Health Care3,750 3,674 3,731 (4)
Total GI Chill Acquisition LLC7,471 7,411 7,443 
Gibson Brands, Inc.First Lien Term Loan, LIBOR+5.00% cash due 8/11/20285.75 %Leisure Products7,500 7,425 7,463 
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.75% cash due 10/2/20255.75 %Health Care Services2,214 2,178 2,226 
Global Medical Response, Inc.First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.25 %Health Care Services1,995 1,995 2,004 (4)
Total Global Medical Response, Inc.4,209 4,173 4,230 
Grab Holdings Inc.First Lien Term Loan, LIBOR+4.50% cash due 1/29/20265.50 %Interactive Media & Services2,985 2,907 3,025 
Indivior Finance S.À.R.L.First Lien Term Loan, LIBOR+5.25% cash due 6/30/20266.00 %Pharmaceuticals7,481 7,336 7,456 
Intelsat Jackson Holdings S.A.First Lien Term Loan, PRIME+4.75% cash due 11/27/20238.00 %Alternative Carriers3,568 3,550 3,622 
Intelsat Jackson Holdings S.A.First Lien Term Loan, LIBOR+4.75% cash due 7/13/20225.75 %Alternative Carriers5,000 4,935 5,044 
Intelsat Jackson Holdings S.A.First Lien Delayed Draw Term Loan, LIBOR+4.75% cash due 7/13/2022Alternative Carriers— (13)(5)
Total Intelsat Jackson Holdings S.A.8,568 8,472 8,675 
INW Manufacturing, LLCFirst Lien Term Loan, LIBOR+5.75% cash due 5/7/20276.50 %Personal Products9,875 9,597 9,678 (4)
Lightbox Intermediate, L.P.First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.13 %Real Estate Services7,443 7,377 7,405 (4)
LogMeIn, Inc.First Lien Term Loan, LIBOR+4.75% cash due 8/31/20274.83 %Application Software7,940 7,812 7,946 (4)
LTI Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 9/6/20253.58 %Electronic Components7,442 7,329 7,354 
Maravai Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 10/19/20274.75 %Biotechnology6,819 6,751 6,846 
Mindbody, Inc.First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/20258.00 %Internet Services & Infrastructure4,616 4,565 4,528 (4)
Mindbody, Inc.First Lien Revolver, LIBOR+8.00% cash due 2/14/2025Internet Services & Infrastructure— (6)(9)(4)(5)
Total Mindbody, Inc.4,616 4,559 4,519 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50 %Application Software3,877 3,843 3,875 (4)
MRI Software LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026Application Software— (6)(1)(4)(5)
MRI Software LLCFirst Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (3)— (4)(5)
Total MRI Software LLC3,877 3,834 3,874 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20255.50 %Electrical Components & Equipment6,755 6,738 6,738 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.08 %Application Software7,852 7,816 7,842 (4)
Olaplex, Inc.First Lien Term Loan, LIBOR+6.25% cash due 1/8/20267.25 %Personal Products6,273 6,189 6,226 (4)
Olaplex, Inc.First Lien Revolver, LIBOR+6.25% cash due 1/8/2025Personal Products— (7)(8)(4)(5)
Total Olaplex, Inc.6,273 6,182 6,218 
Park Place Technologies, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 11/10/20276.00 %Internet Services & Infrastructure4,975 4,801 4,981 (4)
Planview Parent, Inc.Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00 %Application Software4,503 4,435 4,514 (4)
52

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
Pluralsight, LLCFirst Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00 %Application Software$6,796 $6,669 $6,667 (4)
Pluralsight, LLCFirst Lien Revolver, LIBOR+8.00% cash due 4/6/2027Application Software— (8)(8)(4)(5)
Total Pluralsight, LLC6,796 6,661 6,659 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50 %Metal & Glass Containers2,728 2,700 2,738 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.25% cash due 4/27/20246.25 %Footwear8,288 8,277 7,874 
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.23% cash due 4/27/20246.23 %Footwear138 138 131 
Total SHO Holding I Corporation8,426 8,415 8,005 
Sirva Worldwide, Inc.First Lien Term Loan, LIBOR+5.50% cash due 8/4/20255.58 %Diversified Support Services1,087 1,071 1,027 (4)
Sorenson Communications, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 3/17/20266.25 %Communications Equipment2,854 2,825 2,877 
Star US Bidco LLCFirst Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.25 %Industrial Machinery8,255 8,075 8,289 (4)
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.88 %Application Software7,823 7,465 7,294 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.75% cash due 8/31/20264.50 %Health Care Facilities4,911 4,895 4,925 
Trench Plate Rental, Co.First Lien Term Loan, LIBOR+4.75% cash due 12/3/20265.75 %Construction Materials3,942 3,882 3,881 
Trench Plate Rental, Co.First Lien Delayed Draw Term Loan, LIBOR+4.75% cash due 12/3/2026Construction Materials— (11)(12)(5)
Trench Plate Rental, Co.First Lien Revolver, LIBOR+4.75% cash due 12/3/20265.75 %Construction Materials24 15 15 (5)
Total Trench Plate Rental, Co.3,966 3,886 3,884 
Veritas US Inc.First Lien Term Loan, LIBOR+5.00% cash due 9/1/20256.00 %Application Software6,435 6,333 6,473 (4)
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.00% cash due 8/27/20254.08 %Health Care Technology4,080 4,052 4,091 
Waystar Technologies, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.08 %Health Care Technology5,910 5,880 5,921 
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25 %Integrated Telecommunication Services7,899 7,629 7,948 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75 %Aerospace & Defense6,000 5,964 5,931 (4)
Total Portfolio Investments$344,196 $346,052 $346,665 
__________
(1) Represents the interest rate as of September 30, 2021. 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.
(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 period end. All the LIBOR shown above is in U.S. dollars. As of September 30, 2017. All2021, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 0.08%, the 60-day LIBOR at 0.11%, the 90-day LIBOR at 0.13%, the 180-day LIBOR at 0.16%, the 360-day LIBOR at 0.24% 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, 20172021 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 September 30, 2017.2021.
(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.

53

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




Both the cost and fair value of the Company's SLF JV I Notes were $96.3 million as of each of June 30, 2022 and September 30, 2021. The Company earned interest income of $1.9 million and $5.8 million on the SLF JV I Notes for the three and nine months ended June 30, 2022, respectively. The Company earned interest income of $1.9 million and $5.4 million on the SLF JV I Notes for the three and nine months ended June 30, 2021, respectively. As of June 30, 2022, the SLF JV I Notes bore interest at a rate of one-month LIBOR plus 7.00% per annum with a LIBOR floor of 1.00% and will mature on December 29, 2028.
The cost and fair value of the LLC equity interests in SLF JV I held by the Company were $49.3 million and $23.0 million, respectively, as of June 30, 2022, and $49.3 million and $37.7 million, respectively, as of September 30, 2021. The Company earned $0.9 million and $2.0 million in dividend income for the three and nine months ended June 30, 2022, respectively, with respect to its investment in the LLC equity interests of SLF JV I. The Company earned $0.5 million in dividend income for the three and nine months ended June 30, 2021 with respect to its investment in the LLC equity interests of SLF JV I. The LLC equity interests of SLF JV I are generally dividend producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.
Below is certain summarized financial information for SLF JV I as of June 30, 2022 and September 30, 2021 and for the three and nine months ended June 30, 2022 and 2021:
June 30, 2022September 30, 2021
Selected Balance Sheet Information:
Investments at fair value (cost June 30, 2022: $358,578; cost September 30, 2021: $346,052)$339,335 $346,665 
Cash and cash equivalents14,904 23,446 
Restricted cash4,156 4,517 
Other assets6,653 4,529 
Total assets$365,048 $379,157 
Senior credit facility payable$215,000 $215,620 
SLF JV I Notes payable at fair value (proceeds June 30, 2022: $110,000; proceeds September 30, 2021: $110,000)110,000 110,000 
Other liabilities13,718 10,507 
Total liabilities$338,718 $336,127 
Members' equity26,330 43,030 
Total liabilities and members' equity$365,048 $379,157 
Three months ended June 30, 2022Three months ended June 30, 2021Nine months ended June 30, 2022Nine months ended June 30, 2021
Selected Statements of Operations Information:
Interest income$5,796 $5,247 $16,664 $14,535 
Other income32 19 105 546 
Total investment income5,828 5,266 16,769 15,081 
Senior credit facility interest expense1,929 1,430 4,995 4,222 
SLF JV I Notes interest expense2,224 2,224 6,673 6,195 
Other expenses77 56 198 193 
Total expenses (1)4,230 3,710 11,866 10,610 
Net unrealized appreciation (depreciation)(16,411)1,407 (19,856)13,334 
Net realized gains (losses)165 426 568 427 
Net income (loss)$(14,648)$3,389 $(14,385)$18,232 
 __________
(1) There are no management fees or incentive fees charged at SLF JV I.

SLF JV I has elected to fair value the SLF JV I Notes issued to the Company and Kemper under FASB ASC Topic 825, Financial Instruments - Fair Value Option. The SLF JV I Notes are valued based on the total assets less the total liabilities senior to the SLF JV I Notes in an amount not exceeding par under the EV technique.
During the nine months ended June 30, 2022, the Company sold $9.7 million of senior secured debt investments to SLF JV I for $9.7 million cash consideration, which represented the fair value at the time of sale. A gain of $0.5 million was recognized by the Company on these transactions. The Company did not sell any senior secured debt investments to SLF JV I during the three months ended June 30, 2022. During the three and nine months ended June 30, 2021, the Company sold $10.5 million and $45.5 million, respectively, of senior secured debt investments to SLF JV I, for $10.3 million and $44.8 million cash consideration, respectively, which represented the fair value at the time of sale.
54

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




OCSI Glick JV LLC
On March 19, 2021, as a result of the consummation of the Mergers, the Company became party to the LLC agreement of Glick JV. The Company co-invests primarily in senior secured loans of middle-market companies with GF Equity Funding through the Glick JV. The Glick JV is managed by a four person Board of Directors, two of whom are selected by the Company and two of whom are selected by GF Equity Funding. The Glick JV is capitalized as transactions are completed, and portfolio decisions and investment decisions in respect of the Glick JV must be approved by the Glick JV investment committee, which consists of one representative selected by the Company and one representative selected by GF Equity Funding (with approval from a representative of each required). Since the Company does not have a controlling financial interest in the Glick JV, the Company does not consolidate the Glick JV.
The members provide capital to the Glick JV in exchange for LLC equity interests, and the Company and GF Debt Funding 2014 LLC ("GF Debt Funding"), an entity advised by affiliates of GF Equity Funding, provide capital to the Glick JV in exchange for subordinated notes issued by the Glick JV (the "Glick JV Notes"). As of June 30, 2022 and September 30, 2021, the Company and GF Equity Funding owned 87.5% and 12.5%, respectively, of the outstanding LLC equity interests, and the Company and GF Debt Funding owned 87.5% and 12.5%, respectively, of the Glick JV Notes. The Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act.
The Glick JV has a senior revolving credit facility with Deutsche Bank AG, New York Branch (the "Glick JV Deutsche Bank Facility"), which, as of June 30, 2022, had a reinvestment period end date and maturity date of May 3, 2023 and May 3, 2028, respectively, and permitted borrowings of up to $90.0 million (subject to borrowing base and other limitations). Borrowings under the Glick JV Deutsche Bank Facility are secured by all of the assets of the Glick JV and all of the equity interests in the Glick JV and, as of June 30, 2022, bore interest at a rate equal to 3-month LIBOR plus 2.25% per annum during the reinvestment period, 3-month LIBOR plus 2.40% for the first year after the end of the reinvestment period, 3-month LIBOR plus 2.50% for the following year and 3-month LIBOR plus 2.75% thereafter, in each case with a 0.125% LIBOR floor. $80.1 million and $71.9 million of borrowings were outstanding under the Glick JV Deutsche Bank Facility as of June 30, 2022 and September 30, 2021, respectively.
As of June 30, 2022 and September 30, 2021, the Glick JV had total assets of $141.5 million and $141.0 million, respectively. The Glick JV's portfolio consisted of middle-market and other corporate debt securities of 43 and 37 portfolio companies as of June 30, 2022 and September 30, 2021, respectively. The portfolio companies in the Glick JV are in industries similar to those in which the Company may invest directly.The Company's investment in the Glick JV consisted of LLC equity interests and Glick JV Notes of $50.6 million and $55.6 million in the aggregate at fair value as of June 30, 2022 and September 30, 2021, respectively. The Glick JV Notes are junior in right of payment to the repayment of temporary contributions made by the Company to fund investments of the Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Glick JV Notes, respectively.
As of each of June 30, 2022 and September 30, 2021, the Glick JV had total capital commitments of $100.0 million, $87.5 million of which was from the Company and the remaining $12.5 million of which was from GF Equity Funding and GF Debt Funding. Approximately $84.0 million in aggregate commitments were funded as of each of June 30, 2022 and September 30, 2021, of which $73.5 million was from the Company. As of each of June 30, 2022 and September 30, 2021, the Company had commitments to fund Glick JV Notes of $78.8 million, of which $12.4 million were unfunded. As of each of June 30, 2022 and September 30, 2021, the Company had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million were unfunded.

55

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 the Glick JV's portfolio, followed by a listing of the individual loans in the Glick JV's portfolio as of June 30, 2022 and September 30, 2021:
June 30, 2022September 30, 2021
Senior secured loans (1)$141,783$126,512
Weighted average current interest rate on senior secured loans (2)6.85%5.86%
Number of borrowers in the Glick JV4337
Largest loan exposure to a single borrower (1)$6,645$6,907
Total of five largest loan exposures to borrowers (1)$28,564$28,324
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

Glick JV Portfolio as of June 30, 2022
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
ADB Companies, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 12/18/20258.50%Construction & Engineering$4,714 $4,640 $4,636 (4)
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20237.50%Pharmaceuticals6,645 6,564 5,871 (4)
American Tire Distributors, Inc.First Lien Term Loan, LIBOR+6.25% cash due 10/20/20287.00%Distributors2,897 2,861 2,746 (4)
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.92%Movies & Entertainment2,933 2,903 2,862 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/20256.00%Personal Products919 714 738 (4)
ASP-R-PAC Acquisition Co LLCFirst Lien Term Loan, LIBOR+6.00% cash due 12/29/20277.67%Paper Packaging1,738 1,706 1,696 
ASP-R-PAC Acquisition Co LLCFirst Lien Revolver, LIBOR+6.00% cash due 12/29/2027Paper Packaging— (4)(5)(5)
Total ASP-R-PAC Acquisition Co LLC1,738 1,702 1,691 
Astra Acquisition Corp.First Lien Term Loan, LIBOR+5.25% cash due 10/25/20286.92%Application Software3,155 3,084 2,758 (4)
Asurion, LLCSecond Lien Term Loan, LIBOR+5.25% cash due 1/20/20296.92%Property & Casualty Insurance923 914 789 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.63%Airport Services3,666 3,607 3,478 (4)
BAART Programs, Inc.First Lien Term Loan, LIBOR+5.00% cash due 6/11/20276.67%Health Care Services3,406 3,375 3,355 
BAART Programs, Inc.First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.60%Health Care Services720 712 699 (4)(5)
Total BAART Programs, Inc.4,126 4,087 4,054 
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20255.60%Oil & Gas Equipment & Services2,802 2,796 2,706 
BYJU's Alpha, Inc.First Lien Term Loan, LIBOR+5.50% cash due 11/24/20267.01%Application Software3,980 3,925 3,403 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.92%Oil & Gas Refining & Marketing3,528 3,493 3,507 (4)
City Football Group LimitedFirst Lien Term Loan, LIBOR+3.50% cash due 7/21/20284.60%Movies & Entertainment2,494 2,481 2,307 
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+3.75% cash due 7/9/20266.00%Biotechnology2,878 2,856 2,725 
DirecTV Financing, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 8/2/20276.67%Cable & Satellite2,798 2,770 2,583 (4)
Domtar CorporationFirst Lien Term Loan, LIBOR+5.50% cash due 11/30/20286.69%Paper Products2,509 2,484 2,421 
DTI Holdco, Inc.First Lien Term Loan, SOFR+4.75% cash due 4/26/20296.28%Research & Consulting Services3,000 2,941 2,817 (4)
Eagle Parent Corp.First Lien Term Loan, SOFR+4.25% cash due 4/1/20294.75%Industrial Machinery2,494 2,433 2,398 
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20276.17%Application Software2,450 2,426 2,270 
56

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
Gibson Brands, Inc.First Lien Term Loan, LIBOR+5.00% cash due 8/11/20286.41%Leisure Products$3,980 $3,940 $3,403 
Harbor Purchaser Inc.First Lien Term Loan, SOFR+5.25% cash due 4/9/20296.88%Education Services4,000 3,883 3,638 (4)
Indivior Finance S.À.R.L.First Lien Term Loan, LIBOR+5.51% cash due 6/30/20267.57%Pharmaceuticals3,960 3,895 3,868 
Integro Parent, Inc.First Lien Term Loan, LIBOR+2.50% cash due 10/31/20224.00%Insurance Brokers3,217 3,221 3,041 
INW Manufacturing, LLCFirst Lien Term Loan, LIBOR+5.75% cash due 3/25/20278.00%Personal Products2,406 2,348 2,274 (4)
Iris Holding, Inc.First Lien Term Loan, SOFR+4.75% cash due 6/15/20286.86%Metal & Glass Containers2,000 1,840 1,832 
LaserAway Intermediate Holdings II, LLCFirst Lien Term Loan, LIBOR+5.75% cash due 10/14/20276.79%Health Care Services3,980 3,909 3,923 
LTI Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 9/6/20255.17%Electronic Components1,362 1,180 1,271 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20267.75%Application Software1,651 1,636 1,618 (4)
MRI Software LLCFirst Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (1)(3)(4)(5)
   Total MRI Software LLC1,651 1,635 1,615 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20256.55%Electrical Components & Equipment5,266 5,256 5,108 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.67%Application Software3,898 3,880 3,635 (4)
Planview Parent, Inc.Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.92%Application Software2,842 2,799 2,728 (4)
Pluralsight, LLCFirst Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00%Application Software4,465 4,394 4,340 (4)
Pluralsight, LLCFirst Lien Revolver, LIBOR+8.00% cash due 4/6/2027Application Software— (5)(9)(4)(5)
Total Pluralsight, LLC4,465 4,389 4,331 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20266.19%Metal & Glass Containers1,728 1,710 1,645 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.25% cash due 4/27/20246.49%Footwear6,110 6,097 5,560 
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.23% cash due 4/27/20246.47%Footwear102 102 93 
Total SHO Holding I Corporation6,212 6,199 5,653 
Spanx, LLCFirst Lien Term Loan, LIBOR+5.50% cash due 11/20/20287.10%Apparel Retail4,975 4,884 4,857 (4)
SPX Flow, Inc.First Lien Term Loan, LIBOR+4.60% cash due 4/5/20296.13%Industrial Machinery5,466 5,222 5,108 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20256.00%Application Software2,828 2,710 2,567 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.75% cash due 8/31/20264.95%Health Care Facilities3,386 3,374 3,165 
Touchstone Acquisition, Inc.First Lien Term Loan, LIBOR+6.00% cash due 12/29/20287.67%Health Care Supplies3,031 2,975 2,940 (4)
Tribe Buyer LLCFirst Lien Term Loan, LIBOR+4.50% cash due 2/16/20246.17%Human Resource & Employment Services1,587 1,586 1,326 
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.92%Integrated Telecommunication Services4,899 4,753 4,603 (4)
WP CPP Holdings, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 4/30/20254.99%Aerospace & Defense995 954 836 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.99%Aerospace & Defense3,000 2,985 2,482 (4)
Total WP CPP Holdings, LLC3,995 3,939 3,318 
Total Portfolio Investments$141,783 $139,208 $132,609 
__________
(1) Represents the interest rate as of June 30, 2022. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for most of the 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. Certain loans may also be indexed to SOFR. 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 the reference rates based on each respective credit agreement and the cash interest rate as of period end. All
57

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




LIBOR shown above is in U.S. dollars. As of June 30, 2022, the reference rates for the Glick JV's variable rate loans were the 30-day LIBOR at 1.67%, the 90-day LIBOR at 2.25%, the 180-day LIBOR at 2.88% and the 360-day LIBOR at 3.61%, the 30-day SOFR at 1.53% and the 90-day SOFR at 2.05%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.
(3) Represents the current determination of fair value as of June 30, 2022 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 the Glick JV as of June 30, 2022.
(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.

Glick JV Portfolio as of September 30, 2021
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipalCostFair Value (3)Notes
ADB Companies, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 12/18/20257.25%Construction & Engineering$3,866 $3,783 $3,822 (4)
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.25%Pharmaceuticals6,907 6,780 6,687 (4)
Amplify Finco Pty Ltd.First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.00%Movies & Entertainment2,955 2,925 2,880 (4)
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/20253.88%Personal Products1,667 1,310 1,416 
Asurion, LLCSecond Lien Term Loan, LIBOR+5.25% cash due 1/20/20295.33%Property & Casualty Insurance3,000 2,970 2,990 
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00%Airport Services3,694 3,625 3,476 (4)
BAART Programs, Inc.First Lien Term Loan, LIBOR+5.00% cash due 6/11/20276.00%Health Care Services3,192 3,160 3,184 
BAART Programs, Inc.First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/20276.00%Health Care Services240 232 238 (5)
Total BAART Programs, Inc.3,432 3,392 3,422 
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.08%Oil & Gas Equipment & Services4,835 4,823 4,772 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+6.25% cash due 3/28/20247.25%Oil & Gas Refining & Marketing3,555 3,520 3,567 (4)
City Football Group LimitedFirst Lien Term Loan, LIBOR+3.50% cash due 7/21/20284.00%Movies & Entertainment2,500 2,488 2,497 
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+4.00% cash due 7/9/20264.13%Biotechnology4,900 4,863 4,903 
DirecTV Financing, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 8/2/20275.75%Cable & Satellite3,000 2,970 3,005 (4)
Enviva Holdings, LPFirst Lien Term Loan, LIBOR+5.50% cash due 2/17/20266.50%Forest Products3,919 3,879 3,928 
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.50%Application Software2,469 2,444 2,484 
Gibson Brands, Inc.First Lien Term Loan, LIBOR+5.00% cash due 8/11/20285.75%Leisure Products4,000 3,960 3,981 
Houghton Mifflin Harcourt Publishers Inc.First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.25%Education Services431 420 433 (4)
Indivior Finance S.À.R.L.First Lien Term Loan, LIBOR+5.25% cash due 6/30/20266.00%Pharmaceuticals3,990 3,913 3,977 
Integro Parent, Inc.First Lien Term Loan, LIBOR+5.75% cash due 10/31/20226.75%Insurance Brokers3,229 3,221 3,173 
Intelsat Jackson Holdings S.A.First Lien Term Loan, LIBOR+4.75% cash due 7/13/20225.75%Alternative Carriers4,167 4,112 4,203 
Intelsat Jackson Holdings S.A.First Lien Delayed Draw Term Loan, LIBOR+4.75% cash due 7/13/2022Alternative Carriers— (11)(5)
Total Intelsat Jackson Holdings S.A.4,167 4,101 4,210 
INW Manufacturing, LLCFirst Lien Term Loan, LIBOR+5.75% cash due 5/7/20276.50%Personal Products2,469 2,399 2,419 (4)
Lightstone Holdco LLCFirst Lien Term Loan, LIBOR+3.75% cash due 1/30/20244.75%Electric Utilities3,439 3,115 2,855 
LTI Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 9/6/20253.58%Electronic Components1,372 1,147 1,356 
58

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
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.50%Application Software$1,635 $1,621 $1,634 (4)
MRI Software LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026Application Software— (1)— (4)(5)
MRI Software LLCFirst Lien Revolver, LIBOR+5.50% cash due 2/10/2026Application Software— (1)— (4)(5)
   Total MRI Software LLC1,635 1,619 1,634 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20255.50%Electrical Components & Equipment5,308 5,294 5,294 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20264.08%Application Software3,926 3,908 3,921 (4)
Olaplex, Inc.First Lien Term Loan, LIBOR+6.25% cash due 1/8/20267.25%Personal Products3,502 3,454 3,475 (4)
Olaplex, Inc.First Lien Revolver, LIBOR+6.25% cash due 1/8/2025Personal Products— (4)(5)(4)(5)
Total Olaplex, Inc.3,502 3,450 3,470 
Planview Parent, Inc.Second Lien Term Loan, LIBOR+7.25% cash due 12/18/20288.00%Application Software2,842 2,799 2,849 (4)
Pluralsight, LLCFirst Lien Term Loan, LIBOR+8.00% cash due 4/6/20279.00%Application Software4,465 4,383 4,380 (4)
Pluralsight, LLCFirst Lien Revolver, LIBOR+8.00% cash due 4/6/2027Application Software— (6)(6)(4)(5)
Total Pluralsight, LLC4,465 4,377 4,374 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50%Metal & Glass Containers1,819 1,800 1,825 (4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.25% cash due 4/27/20246.25%Footwear6,159 6,140 5,851 
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.23% cash due 4/27/20246.23%Footwear102 102 97 
Total SHO Holding I Corporation6,261 6,242 5,948 
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20253.88%Application Software2,850 2,703 2,657 (4)
Surgery Center Holdings, Inc.First Lien Term Loan, LIBOR+3.75% cash due 8/31/20264.50%Health Care Facilities4,911 4,895 4,925 
Tribe Buyer LLCFirst Lien Term Loan, LIBOR+4.50% cash due 2/16/20245.50%Human Resource & Employment Services1,599 1,598 1,354 
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.00% cash due 8/27/20254.08%Health Care Technology1,721 1,709 1,725 
Waystar Technologies, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.08%Health Care Technology3,940 3,920 3,947 
Windstream Services II, LLCFirst Lien Term Loan, LIBOR+6.25% cash due 9/21/20277.25%Integrated Telecommunication Services4,937 4,768 4,967 (4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20268.75%Aerospace & Defense3,000 2,982 2,965 (4)
Total Portfolio Investments$126,512 $124,112 $124,108 
__________
(1) Represents the interest rate as of September 30, 2021. 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 LIBOR shown above is in U.S. dollars. As of September 30, 2021, the reference rates for the Glick JV's variable rate loans were the 30-day LIBOR at 0.08%, the 60-day LIBOR at 0.11%, the 90-day LIBOR at 0.13%, the 180-day LIBOR at 0.16% and the 360-day LIBOR at 0.24%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(5) This investment was on cash non-accrual status(3) Represents the current determination of fair value as of September 30, 2017. Cash non-accrual status is inclusive2021 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of PIK and other non-cash income, where applicable.
Both the cost andsuch fair value is not included in the Company's Board of the Class A mezzanine secured deferrable floating rate notes of SLF JV IDirectors' valuation process described elsewhere herein.
(4) This investment was held by both the Company were $100.8 million and $101.0 millionthe Glick JV as of December 31, 2017 and September 30, 2017, respectively. The Company earned interest of $1.8 million and $0.2 million on its investments2021.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in these notes for the three months ended December 31, 2017 and December 31, 2016, respectively. Both thea negative cost andbasis. A negative fair value ofmay result from the Class B mezzanine secured deferrable fixed rate notes of 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 bore interest at a rate of LIBOR plus 8.0% per annum and the Company earned interest income of $2.9 million on its investments in these notes for the three months ended December 31, 2016. unfunded commitment being valued below par.

The cost and fair value of the LLC equity interestsCompany's aggregate investment in SLFthe Glick JV I held by the Company was $16.2$50.4 million and $4.9$50.6 million, respectively, as of December 31, 2017,June 30, 2022. The cost and $16.2 million and $5.5 million, respectively, asfair value of September 30, 2017. The Company did not earned any dividend income for the three months ended December 31, 2017 and earned dividend income of $0.7 million forCompany's aggregate investment in the three months ended December 31, 2016 with respect to the LLC equity interests of SLFGlick JV I. The LLC equity interests are income producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.was
59

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





$50.7 million and $55.6 million, respectively, as of September 30, 2021. For the three and nine months ended June 30, 2022, the Company's investment in the Glick JV Notes earned interest income of $1.2 million and $3.3 million, respectively. For the three months ended June 30, 2021, the Company's investment in the Glick JV Notes earned interest income of $1.0 million. For the period from March 19, 2021 to June 30, 2021, the Company's investment in the Glick JV Notes earned interest income of $1.1 million. The Company did not earn dividend income for the three and nine months ended June 30, 2022 and for the period from March 19, 2021 to June 30, 2021 with respect to its investment in the LLC equity interest of the Glick JV. The LLC equity interests of the Glick JV are income producing to the extent there is residual cash to be distributed on a quarterly basis. As of June 30, 2022, the Glick JV Notes bore interest at a rate of one-month LIBOR plus 4.50% per annum and will mature on October 20, 2028.
Below is certain summarized financial information for SLFthe Glick JV I as of December 31, 2017June 30, 2022 and September 30, 20172021 and for the three and nine months ended June 30, 2022 and for the three months ended December 31, 2017June 30, 2021 and December 31, 2016:for the period from March 19, 2021 to June 30, 2021:
June 30, 2022September 30, 2021
Selected Balance Sheet Information:
Investments at fair value (cost June 30, 2022: $139,208; September 30, 2021: $124,112)$132,609 $124,108 
Cash and cash equivalents2,677 14,087 
Restricted cash1,387 1,055 
Other assets4,792 1,750 
Total assets$141,465 $141,000 
Senior credit facility payable$80,082 $71,882 
Glick JV Notes payable at fair value (proceeds June 30, 2022: $68,885; September 30, 2021: $70,525)57,837 63,522 
Other liabilities3,546 5,596 
Total liabilities$141,465 $141,000 
Members' equity— — 
Total liabilities and members' equity$141,465 $141,000 
  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 June 30, 2022Three months ended June 30, 2021Nine months ended June 30, 2022For the period from March 19, 2021 to June 30, 2021
Selected Statements of Operations Information:
Interest income$2,416 $2,161 $6,796 $2,465 
Fee income47 56 82 59 
Total investment income2,463 2,217 6,878 2,524 
Senior credit facility interest expense694 557 1,742 646 
Glick JV Notes interest expense860 830 2,479 950 
Other expenses59 48 127 54 
Total expenses (1)1,613 1,435 4,348 1,650 
Net unrealized appreciation (depreciation)(753)(778)(2,549)(902)
Realized gain (loss)(97)(4)19 28 
Net income (loss)$ $ $ $ 

  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 SLFthe Glick JV.
The Glick JV I.
SLF JV I has elected to fair value the debt securitiesGlick JV Notes issued to the Company and KemperGF Debt Funding under FASB ASC 825.Topic 825, Financial Instruments - Fair Value Option. The debt securitiesGlick JV Notes are valued based on the total assets less the total liabilities senior to the mezzanine notes of SLFGlick JV INotes in an amount not exceeding par under the enterprise valueEV technique.

During the three and nine months ended December 31, 2017June 30, 2022 and December 31, 2016,the period from March 19, 2021 to June 30, 2021, the Company did not sell any senior secured debt investments to SLF JV I.the Glick JV.
Note 4. Fee Income
TheFor the three and nine months ended June 30, 2022, the Company receives a variety of fees in the ordinary course of business, including servicing, advisory, amendment, structuring and prepayment fees, which are classified asrecorded total 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$2.3 million and $1.1$5.1 million, respectively.respectively, of which $0.2 million and $0.7 million, respectively, was recurring in nature. For the three and nine
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.
60

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,June 30, 2021, the Company recorded total fee income of $1.0$7.8 million and $13.5 million, respectively, of which $0.1 million of which was recurring in nature. For the three months ended December 31, 2016, the Company recorded total fee income of $3.6and $0.3 million, $0.8 million of whichrespectively, was recurring in nature. Recurring fee income primarily consistsconsisted of servicing fees and exit fees.

Note 5. Share Data and DistributionsNet Assets
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 and nine months ended December 31, 2017June 30, 2022 and 2016:2021:
(Share amounts in thousands)Three months ended
June 30, 2022
Three months ended
June 30, 2021
Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Earnings (loss) per common share — basic and diluted:
Net increase (decrease) in net assets resulting from operations$(37,834)$47,038 $16,015 $200,699 
Weighted average common shares outstanding — basic and diluted183,370 180,361 181,778 155,970 
Earnings (loss) per common share — basic and diluted$(0.21)$0.26 $0.09 $1.29 

Changes in Net Assets

The following table presents the changes in net assets for the three and nine months ended June 30, 2022:
Common Stock
(Share amounts in thousands)SharesPar ValueAdditional paid-in-capitalAccumulated Overdistributed EarningsTotal Net Assets
Balance as of September 30, 2021180,361 $1,804 $1,804,354 $(493,335)$1,312,823 
Net investment income32,29532,295
Net unrealized appreciation (depreciation)(4,586)(4,586)
Net realized gains (losses)9,3219,321
(Provision) benefit for taxes on realized and unrealized gains (losses)2,3782,378
Distributions to stockholders(27,956)(27,956)
Issuance of common stock under dividend reinvestment plan1081785786
Balance as of December 31, 2021180,469$1,805$1,805,139$(481,883)$1,325,061
Net investment income— 40,09840,098
Net unrealized appreciation (depreciation)(27,038)(27,038)
Net realized gains (losses)1,4021,402
(Provision) benefit for taxes on realized and unrealized gains (losses)(21)(21)
Distributions to stockholders(29,271)(29,271)
Issuance of common stock in connection with the "at the market" offering2,6322619,35319,379
Issuance of common stock under dividend reinvestment plan1041765766
Balance as of March 31, 2022183,205 $1,832 $1,825,257 $(496,713)$1,330,376 
Net investment income— 40,37040,370
Net unrealized appreciation (depreciation)(86,755)(86,755)
Net realized gains (losses)9,2129,212
(Provision) benefit for taxes on realized and unrealized gains (losses)(661)(661)
Distributions to stockholders(30,256)(30,256)
Issuance of common stock in connection with the "at the market" offering16921,2411,243
Issuance of common stock under dividend reinvestment plan1311873874
Repurchases of common stock under dividend reinvestment plan(131)(1)(873)(874)
Balance as of June 30, 2022183,374 $1,834 $1,826,498 $(564,803)$1,263,529 

61

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




(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)
The following table presents the changes in net assets for the three and nine months ended June 30, 2021:

Common Stock
(Share amounts in thousands)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 income10,01810,018
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 plan941527528
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 
Net investment income18,11418,114
Net unrealized appreciation (depreciation)65,14465,144
Net realized gains (losses)5,8565,856
Provision for income tax (expense) benefit(997)(997)
Distributions to stockholders(16,915)(16,915)
Issuance of common stock in connection with the Mergers39,400395242,309242,704
Issuance of common stock under dividend reinvestment plan821510511
Repurchases of common stock under dividend reinvestment plan(82)(1)(510)(511)
Balance as of March 31, 2021180,361 $1,804 $1,730,083 $(453,064)$1,278,823 
Net investment income35,93235,932
Net unrealized appreciation (depreciation)3,9173,917
Net realized gains (losses)8,6108,610
(Provision) benefit for taxes on realized and unrealized gains (losses)(1,421)(1,421)
Distributions to stockholders(23,447)(23,447)
Issuance of common stock under dividend reinvestment plan771519520
Repurchases of common stock under dividend reinvestment plan(77)(1)(519)(520)
Balance as of June 30, 2021180,361 $1,804 $1,730,083 $(429,473)$1,302,414 

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 20172021 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 20172021 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 U.S. federal income tax purposes to the Company’s stockholders.
62

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 threenine months ended December 31, 2017June 30, 2022 and 2016:2021:
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
DRIP Shares
Value (3)
October 13, 2021December 15, 2021December 31, 2021$0.155 $ 27.2 million107,971 (1)$ 0.8 million
January 28, 2022March 15, 2022March 31, 20220.16 28.5 million104,411 (1)0.8 million
April 29, 2022June 15, 2022June 30, 20220.165 29.4 million131,028 (2)0.9 million
Total for the nine months ended June 30, 2022$0.48 $ 85.1 million343,410 $ 2.4 million
Date DeclaredRecord DatePayment DateAmount
per Share
Cash
Distribution
DRIP Shares
Issued (2)
DRIP Shares
Value (3)
November 13, 2020December 15, 2020December 31, 2020$0.11 $ 15.0 million93,964 $ 0.5 million
January 29, 2021March 15, 2021March 31, 20210.12 16.4 million81,702 0.5 million
April 30, 2021June 15, 2021June 30, 20210.13 22.9 million76,979 0.5 million
Total for the nine months ended June 30, 2021$0.36 $ 54.3 million252,645 $ 1.6 million
 __________
(1) New shares were issued and distributed.
(2) Shares were purchased on the open market and distributed.
(2) Totals do(3) Total may not sum due to rounding.

Common Stock OfferingIssuances
During the nine months ended June 30, 2022, the Company issued an aggregate of 212,382 shares of common stock as part of the DRIP.
On February 7, 2022, the Company entered into an equity distribution agreement by and among the Company, Oaktree, Oaktree Administrator and Keefe, Bruyette & Woods, Inc., JMP Securities LLC, Raymond James & Associates, Inc. and SMBC Nikko Securities America, Inc., as placement agents, in connection with the issuance and sale by the Company of shares of common stock, having an aggregate offering price of up to $125.0 million. Sales of the common stock may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or similar securities exchanges or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.
In connection with the "at the market" offering, the Company issued and sold the following shares of common stock during the nine months ended June 30, 2022:
Number of Shares IssuedGross ProceedsPlacement Agent FeesNet Proceeds (1)Average Sales Price per Share (2)
"At the market" offering2,801,206 $21,049 $210 $20,839 $7.51 
 __________
(1) Net proceeds excludes offering costs of $0.2 million.
(2) Represents the gross sales price before deducting placement agent fees and estimated offering expenses.
On March 19, 2021, in connection with the Mergers, the Company issued an aggregate of 39,400,011 shares of common stock to former OCSI stockholders. There were no other common stock offeringsissuances during the threenine months ended December 31, 2017 and December 31, 2016.June 30, 2021.
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
INGSyndicated Facility

On November 30, 2017, the Company entered into a senior secured revolving credit facility (the “ING facility”(as amended and restated, the “Syndicated 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., BofA Securities, Inc. and Merrill Lynch, Pierce, Fenner & Smith IncorporatedMUFG Union Bank, N.A., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents. The ING facilitySyndicated Facility provides that the Company may use the proceeds of the loans and issuances of letters of credit under the facilitySyndicated 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 Agreement further allows the Company to request letters of credit from ING Capital LLC, as the issuing bank.
The ING facility permits up to $600 million of borrowings and includes an “accordion” feature that permits the Company, under certain circumstances, to increase the size of the facility up to $800 million. Borrowings under the ING Credit Agreement bear interest at a rate equal to, at the Company’s election, either (a) LIBOR (1-, 2-, 3- or 6-month, at the Company’s option) plus a margin of 2.25%, 2.50% or 2.75% per annum 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.
63
The ING 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 in certain immaterial subsidiaries to the collateral agent pursuant to the terms of the ING Security Agreement.

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




mezzanine loans, high-yield securities, convertible securities, preferred stock, common stock and other investments. The Syndicated Facility further allows the Company to request letters of credit from ING Capital LLC, as the issuing bank.

On December 10, 2021, the Company entered into an incremental commitment and assumption agreement pursuant to which a new lender provided additional commitments of $50 million under the Syndicated Facility. As of June 30, 2022, the size of the Syndicated Facility was $1.0 billion. In addition, pursuant to an "accordion" feature, the Company may increase the size of the facility to up to the greater of $1.25 billion and the Company's net worth, as defined in the facility, under certain circumstances.

As of June 30, 2022, (i) the period during which the Company may make drawings will expire on May 4, 2025 and the maturity date is May 4, 2026 and (ii) the interest rate margin for (a) LIBOR loans (which may be 1-, 2-, 3- or 6-month, at the Company’s option) was 2.00% and (b) alternate base rate loans was 1.00%.

The ING Credit AgreementSyndicated Facility is secured by substantially all of the Company’s assets (excluding, among other things, investments held in and related agreements governingby certain subsidiaries of the ING facility requiredCompany (including OCSL Senior Funding II LLC) or investments in certain portfolio companies of the Company) and guaranteed by certain subsidiaries of the Company. As of June 30, 2022, except for assets that were held by OCSL Senior Funding II LLC and certain immaterial subsidiaries, substantially all of the Company's assets are pledged as collateral under the Syndicated Facility.

The Syndicated Facility 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 facilitySyndicated 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,June 30, 2022, the Company was in compliance with all financial covenants under the ING facility.
Syndicated Facility. In addition to the asset coverage ratio described above, borrowings under the Syndicated 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 facilitySyndicated 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, 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 entry 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 related to the Prior ING Facility.
As of December 31, 2017,June 30, 2022 and September 30, 2021, the Company had $205.0$575.0 million and $495.0 million of borrowings outstanding under the ING facility,Syndicated Facility, respectively, which had a fair value of $205.0 million.$575.0 million and $495.0 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 INGSyndicated Facility bore interest at a weighted average interest rate of 3.705%2.406% and 2.945%2.202% for the period from October 1, 2017 to November 30, 2017 and the threenine months ended December 31, 2016,June 30, 2022 and 2021, respectively. For the three and nine months ended December 31, 2017,June 30, 2022, the Company recorded interest expense (inclusive of $2.7fees) of $4.8 million in the aggregate,and $12.6 million, respectively, related to the Prior ING Facility and the ING facility.Syndicated Facility. For the three and nine months ended December 31, 2016,June 30, 2021, the Company recorded interest expense (inclusive of $4.2fees) of $4.0 million and $10.5 million, respectively, related to the Prior INGSyndicated Facility.
SumitomoCitibank Facility
On September 16, 2011, Funding II,March 19, 2021, as a consolidated wholly-owned bankruptcy remote, special purpose subsidiaryresult of the consummation of the Mergers, the Company entered intobecame party to a Loan and Servicing Agreementrevolving credit facility (as subsequently amended the "Sumitomo Agreement"), as amendedand/or restated from time to time, with respect to a credit facility ("Sumitomo facility"the “Citibank Facility”) with Sumitomo Mitsui Banking Corporation ("SMBC")OCSL Senior Funding II LLC (formerly OCSI Senior Funding II LLC), an affiliate of Sumitomo Mitsui Financial Group, Inc.,the Company’s wholly-owned, special purpose financing subsidiary, as administrative agent,the borrower, the Company, as collateral manager and seller, each of the lenders from time to time party thereto.thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian.
PriorOn November 18, 2021, the Company entered into an amendment to its terminationthe Citibank Facility that, among other things, increased the size of the facility by $50 million and extended the reinvestment period and final maturity date. As of June 30, 2022, the Company was able to borrow up to $200 million under the Citibank Facility (subject to borrowing base and other limitations). As of June 30, 2022, the reinvestment period under the Citibank Facility was scheduled to expire on November 24, 2017,18, 2023 and the Sumitomo facility permitted up to $125 million of borrowings (subject to collateral requirements). Borrowings undermaturity date for 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 INGCitibank 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.November 18, 2024. 
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 million, respectively, related to the Sumitomo facility.
64

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, the Company's consolidated, wholly-owned subsidiary, FSMP IV, received a license, effective February 1, 2010, from the SBA to operate as an SBIC under Section 301(c) 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, 2017June 30, 2022, borrowings under the Citibank Facility are subject to certain customary advance rates and accrue interest at a rate equal to LIBOR plus between 1.25% and 2.20% per annum on broadly syndicated loans, subject to observable market depth and pricing, and LIBOR plus 2.25% per annum on all other eligible loans during the reinvestment period. In addition, as of June 30, 2022, for the duration of the reinvestment period there is a non-usage fee payable of 0.50% per annum on the undrawn amount under the Citibank Facility. The minimum asset coverage ratio applicable to the Company under the Citibank Facility is 150% as determined in accordance with the requirements of the Investment Company Act. Borrowings under the Citibank Facility are secured by all of the assets of OCSL Senior Funding II LLC and all of the Company’s equity interests in OCSL Senior Funding II LLC. The Company may use the Citibank Facility to fund a portion of its loan origination activities and for general corporate purposes. Each loan origination under the Citibank Facility is subject to the satisfaction of certain conditions.
As of June 30, 2022 and September 30, 2017, FSMP IV and FSMP V had no SBA-guaranteed debentures outstanding, and2021, the Company had commenced actions to surrender$170.0 million and $135.0 million outstanding under the license for FSMP IVCitibank Facility, respectively, which had a fair value of $170.0 million and FSMP V to$135.0 million, respectively. The Company's borrowings under 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.
During the three months ended December 31, 2016, the SBA-guaranteed debentures held by the SBIC subsidiaries outstanding carriedCitibank Facility bore interest at a weighted average interest rate of 3.348% (excluding2.563% and 2.198% for the SBA annual charge).nine months ended June 30, 2022 and the period from March 19, 2021 to June 30, 2021, respectively. For the three and nine months ended December 31, 2016,June 30, 2022, the Company recorded aggregate interest expense (inclusive of $2.2fees) of $1.6 million and $3.5 million related to the SBA-guaranteed debenturesCitibank Facility. For three months ended June 30, 2021 and the period from March 19, 2021 to June 30, 2021, the Company recorded interest expense (inclusive of both SBIC subsidiaries.fees) of $0.8 million and $0.9 million, respectively, related to the Citibank 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 Company has received exemptive relief from the SEC2025 Notes were issued pursuant to permit it to exclude the debt of the SBIC subsidiaries guaranteedan indenture, dated April 30, 2012, as supplemented by the SBA fromfifth supplemental indenture, dated February 25, 2020 (collectively, the definition of senior securities in"2025 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee"). The 2025 Notes are 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 itgeneral unsecured obligations that rank senior in right of payment 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 that were funded through the Company's SBIC subsidiaries, substantially all of the Company's assets were pledged as collateral underexisting and future indebtedness that is expressly subordinated in right of payment to the ING facility.
See2025 Notes. The 2025 Notes 13 through 14 for discussionrank equally in right of additional debt obligations of the Company.

Note 7. Interest and Dividend Income
See Note 2 "Investment Income" for a descriptionpayment with all of the Company's accounting treatment of investment income.
Accumulated PIK interest activity for the three months ended December 31, 2017existing 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, 2017 and September 30, 2017, there were eight investments on which the Company had stopped accruing cash and/or PIK interest or OID income.future liabilities that are not so subordinated. The percentages2025 Notes effectively rank junior to any of the Company's debt investmentssecured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2025 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities. 
Interest on the 2025 Notes is paid semi-annually on February 25 and August 25 at costa rate of 3.500% per annum. The 2025 Notes mature on February 25, 2025 and fair valuemay be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the 2025 Notes can require the Company to repurchase the 2025 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 integral multiples of $1,000 in excess thereof. During the nine months ended June 30, 2022, the Company 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 accrual statusSection 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 U.S. Securities and Exchange Commission ("SEC")), as well as covenants requiring the Company to provide financial information to the holders of December 31, 2017the 2025 Notes and Septemberthe 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 2025 Notes Indenture.
2027 Notes
On May 18, 2021, the Company issued $350.0 million in aggregate principal amount of the 2027 Notes for net proceeds of $344.8 million after deducting OID of $1.0 million, underwriting commissions and discounts of $3.5 million and offering costs of $0.7 million. The OID on the 2027 Notes is amortized based on the effective interest method over the term of the 2027 Notes.
The 2027 Notes were issued pursuant to an indenture, dated April 30, 2017 were2012, as follows:supplemented by the sixth supplemental indenture, dated May 18, 2021 (collectively, the "2027 Notes Indenture"), between the Company and the Trustee. The 2027
65
  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)





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 2027 Notes. The 2027 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2027 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 2027 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.
 ___________________
(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.

Interest on the 2027 Notes is paid semi-annually on January 15 and July 15, beginning on January 15, 2022, at a rate of 2.700% per annum. The 2027 Notes mature on January 15, 2027 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 at par plus a “make-whole” premium, if applicable. In addition, holders of the 2027 Notes can require the Company to repurchase the 2027 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2027 Notes Indenture. The 2027 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the nine months ended June 30, 2022, the Company did not repurchase any of the 2027 Notes in the open market.
The 2027 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 SEC), as well as covenants requiring the Company to provide financial information to the holders of the 2027 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 in the 2027 Notes Indenture.
In connection with the 2027 Notes, the Company entered into an interest rate swap to more closely align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, the Company receives a fixed interest rate of 2.700% and pays a floating interest rate of the three-month LIBOR plus 1.658% on a notional amount of $350 million. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship. See Note 12 for more information regarding the interest rate swap.
The below table presents the components of the carrying value of the 2025 Notes and the 2027 Notes as of June 30, 2022 and September 30, 2021:
 As of June 30, 2022As of September 30, 2021
($ in millions)2025 Notes2027 Notes2025 Notes2027 Notes
Principal$300.0 $350.0 $300.0 $350.0 
  Unamortized financing costs(2.0)(3.4)(2.6)(4.0)
  Unaccreted discount(1.3)(0.8)(1.7)(0.9)
  Interest rate swap fair value adjustment— (30.9)— (2.1)
Net carrying value$296.7 $314.9 $295.7 $343.0 
Fair Value$284.0 $301.1 $314.5 $351.1 
The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2022:
2025 Notes2027 Notes
($ in millions)Three months ended June 30, 2022Nine months ended June 30, 2022Three months ended June 30, 2022Nine months ended June 30, 2022
Coupon interest$2.6 $7.9 $2.4 $7.1 
Amortization of financing costs and discount0.3 0.9 0.2 0.7 
Effect of interest rate swap— — (0.1)(1.6)
 Total interest expense$2.9 $8.8 $2.5 $6.2 
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)3.500 %3.500 %2.572 %2.069 %
66

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




The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2021:
2025 Notes2027 Notes
($ in millions)Three months ended June 30, 2021Nine months ended June 30, 2021Three months ended June 30, 2021Nine months ended June 30, 2021
Coupon interest$2.6 $7.9 $1.1 $1.1 
Amortization of financing costs and discount0.3 0.9 0.1 0.1 
Effect of interest rate swap— — (0.3)(0.3)
 Total interest expense$2.9 $8.8 $0.9 $0.9 
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)3.500 %3.500 %1.813 %1.813 %

 Note 8.7. 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) recognition of interest income on certain loans; (5) income or loss recognition on exited investments; and (6)(5) recognition of interest income on certain items relatedloans.
As of September 30, 2021, the Company had net capital loss carryforwards of $547.9 million to investments in controlled foreign corporations.offset net capital gains that will not expire, to the extent available and permitted by U.S. federal income tax law, of which $69.1 million are available to offset future short-term capital gains and $478.8 million are available to offset future long-term capital gains. A portion of such net capital loss carryfowards represented a realized loss under sections 382 and 383 of the Code, which is carried forward to future years to offset future gains subject to certain limitations.
Listed below is a reconciliation of "net decreaseincrease (decrease) in net assets resulting from operations" to taxable income for the three and nine months ended December 31, 2017June 30, 2022 and December 31, 2016.2021.
Three months ended
June 30, 2022
Three months ended
June 30, 2021
Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Net increase (decrease) in net assets resulting from operations$(37,834)$47,038 $16,015 $200,699 
Net unrealized (appreciation) depreciation86,755 (3,917)118,379 (116,617)
Book/tax difference due to organizational costs(21)— (65)(22)
Book/tax difference due to interest income on certain loans— 339 — — 
Book/tax difference due to capital losses utilized(3,736)(12,728)(19,183)(34,625)
Other book/tax differences(8,819)(3,785)(18,597)13,847 
Taxable/Distributable Income (1)$36,345 $26,947 $96,549 $63,282 
  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 and nine months ended December 31, 2017June 30, 2022 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, 2018.2022. 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.
When assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred tax assets are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income and tax liabilities for the tax jurisdiction in which the tax asset is located. The deferred tax asset recognized by the Company, is permittedas it relates to carry forward net capital losses, if any, incurredthe higher tax basis 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 yearscarrying value of certain assets compared to the book basis of those assets, will be required to be utilized prior to the losses incurredrecognized in taxablefuture years ended prior to the Company’sby these taxable year ended September 30, 2012, which are subject to an expiration date. As a result of the ordering rule, capital loss carryforwards from the Company’s taxable year ended prior to its taxable year ended September 30, 2012 may be more likely to expire unused than under previous tax law.
As of September 30, 2017, the Company had net capital loss carryforwards of $466.6 million to offset net capital gains, to the extent available and permitted by U.S. federal income tax law. Of 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.
67

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





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 June 30, 2022, $3.3 million of the $5.0 million deferred tax assets would not more likely than not be realized in future periods. As of June 30, 2022, the Company recorded a net deferred tax asset of $1.7 million on the Consolidated Statements of Assets and Liabilities.
For the three months ended June 30, 2022, the Company recognized a total provision for income tax related to realized and unrealized gains (losses) of $0.7 million, which was primarily composed of current income tax expense. For the three months ended June 30, 2021, the Company recognized a provision for income tax related to realized and unrealized gains of $1.4 million, which was comprised of (i) a current income tax expense of approximately $1.6 million, and (ii) a deferred income tax benefit of approximately $0.2 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable subsidiaries.
For the nine months ended June 30, 2022, the Company recognized a provision for income tax related to net investment income of $3.3 million, which was all current income tax expense. For the nine months ended June 30, 2022, the Company also recognized a total benefit for income taxes related to realized and unrealized gains (losses) of $1.7 million, which was composed of (i) a current income tax benefit of approximately $0.7 million, and (ii) a deferred income tax benefit of approximately $1.0 million, which resulted from unrealized depreciation of investments held by the Company's wholly-owned taxable subsidiaries. For the nine months ended June 30, 2021, the Company recognized a total provision for income tax related to realized and unrealized gains of $2.7 million, which was comprised of (i) a current income tax expense of approximately $2.6 million, and (ii) a deferred income tax expense of approximately $0.1 million, which resulted from unrealized appreciation on investments held by the Company’s wholly-owned taxable subsidiaries.
As a RIC,of September 30, 2021, the Company is also subject to a U.S. federal exciseCompany's last tax based on distributive requirementsyear end, the components of its taxable incomeaccumulated overdistributed earnings on a calendar year basis. The Company did not incur a U.S. federal excise tax for calendar years 2015 and 2016 and does not expect to incur a U.S. federal excise tax for calendar year 2017.basis were as follows:
Undistributed ordinary income, net$(20,260)
Net realized capital losses497,255 
Unrealized losses, net16,340 
Accumulated overdistributed earnings$493,335
The aggregate cost of investments for U.S. federal income tax purposes was $1.8$2.6 billion as of September 30, 2017.2021. As of September 30, 2017,2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over cost for U.S. federal income tax purposes was $51.7$409.5 million. As of September 30, 2017,2021, the aggregate gross unrealized depreciation for all investments in which there was an excess of cost for U.S. federal income tax purposes over value was $277.8$425.8 million. Net unrealized depreciation based on the aggregate cost of investments for U.S. federal income tax purposes was $226.1$16.3 million.

Note 9.8. 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.
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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, 2017,June 30, 2022, the Company recorded an aggregate net realized lossgain of $0.3$9.2 million, in connection withwhich consisted of the sale of various debt investments in the open market.following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
Foreign currency forward contracts8.8 
Other, net0.4 
Total, net$9.2
During the three months ended December 31, 2016,June 30, 2021, the Company recorded an aggregate net realized lossgain of $23.1$8.6 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
Keypath Education Holdings, LLC$6.8 
Signify Health, LLC0.6 
Other, net1.2 
Total, net$8.6
($ 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)
During the nine months ended June 30, 2022, the Company recorded an aggregate net realized gain of $19.9 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
 Foreign currency forward contracts$12.2 
 OmniSYS Acquisition Corporation2.2 
 First Star Speir Aviation Limited1.9 
TigerConnect Inc.1.8 
Other, net1.8 
Total, net$19.9
During the nine months ended June 30, 2021, the Company recorded an aggregate net realized gain of $22.7 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
PLATO Learning Inc.$7.8 
Keypath Education Holdings, LLC6.8 
L Squared Capital Partners LLC3.4 
LTI Holdings, Inc.2.6 
BX Commercial Mortgage Trust 2020-VIVA2.6 
California Pizza Kitchen Inc.(1.8)
Other, net1.3 
Total, net$22.7

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, 2017June 30, 2022 and December 31, 2016,2021, the Company recorded net unrealized depreciation on investments and secured borrowingsappreciation (depreciation) of $43.5$(86.8) million and $74.4$3.9 million, respectively. For the three months ended December 31, 2017,June 30, 2022, this consisted of $39.0$66.8 million of net unrealized depreciation on debt investments, $3.8$17.9 million of net unrealized depreciation on equity investments, and $2.3 million of net reclassifications to realized gains (resulting in unrealized depreciation), offset by $1.6 million of net unrealized depreciation of secured borrowings.foreign currency forward contracts and $0.4 million of net unrealized depreciation
69

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




related to exited investments (a portion of which resulted in a reclassification to realized gains). For the three months ended December 31, 2016, the Company'sJune 30, 2021, this consisted of $12.3 million of net unrealized appreciation on debt investments, $3.8 million of net unrealized appreciation on equity investments and $1.1 million of net unrealized appreciation of foreign currency forward contracts, partially offset by $13.3 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains).
During the nine months ended June 30, 2022 and 2021, the Company recorded net unrealized appreciation (depreciation) of $(118.4) million and $116.6 million, respectively. For the nine months ended June 30, 2022, this consisted of $81.2$84.6 million of net unrealized depreciation on debt investments, $9.6$23.8 million of net unrealized depreciation on equity investments, $9.2 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains) and $0.1$0.8 million of net unrealized depreciation of foreign currency forward contracts. For the nine months ended June 30, 2021, this consisted of $79.7 million of net unrealized appreciation on secured borrowings, offset by $16.5debt investments, $30.7 million of net reclassificationsunrealized appreciation on equity investments, $4.0 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses (resulting inlosses) and $2.2 million of net unrealized appreciation).appreciation of foreign currency forward contracts.

Note 10.9. 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 11.10. Related Party Transactions

As of December 31, 2017June 30, 2022 and September 30, 2017,2021, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $6.3$15.6 million and $6.8$32.6 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 investment advisory agreement with Oaktree was subsequently amended and restated on March 19, 2021 in connection with the closing of the Mergers. The term “Investment Advisory Agreement” refers collectively to the agreements with Oaktree and, prior to its novation, with OCM.
Unless earlier terminated as described below, the New Investment Advisory Agreement will remain in effect until October 17, 2019 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 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. Effective May 3, 2019, the
70

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




base management fee on the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of (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 the Mergers, the Company and Oaktree entered into an amended and restated investment advisory agreement, which among other items, waived an aggregate of $6 million of base management fees otherwise payable to Oaktree in the two years following the closing of the Mergers on March 19, 2021 at a rate of $750,000 per quarter (with such amount appropriately prorated for any partial quarter).
For the period from October 17, 2017 to December 31, 2017,three and nine months ended June 30, 2022, the base management fee (net of waivers) incurred under the New Investment Advisory Agreement was $4.4$9.1 million which was payable to Oaktree.(net of waiver) and $27.6 million (net of waiver), respectively. For the period from October 17, 2017 to December 31, 2017, Oaktree voluntarilythree and irrevocably waived a portion ofnine months ended June 30, 2021, the base management fee which resulted in waiversincurred under the Investment Advisory Agreement was $8.2 million (net of less than $0.1 million.waiver) and $21.7 million (net of waiver), 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. In addition, pre-incentive fee net investment income does not include any amortization or accretion of any purchase premium or purchase discount to interest income resulting solely from merger-related accounting adjustments in connection with the assets acquired in the Mergers, including any premium or discount paid for the acquisition of such assets, solely to the extent that the inclusion of such merger-related accounting adjustments, in the aggregate, would result in an increase in pre-incentive fee net investment income.

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 to December 31, 2017,three and nine months ended June 30, 2022, 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$6.5 million and $19.7 million, respectively. For the three and nine months ended June 30, 2021, the first part of the transactions contemplated by the Purchase Agreement, Oaktree entered into a two-year contractualincentive fee waiver with the Company that will waive, to the extent necessary, any management or incentive fees payable(incentive fee on income) incurred under the New Investment Advisory Agreement that exceed what would have been paid to the Former Adviser was $7.0 million and $15.6 million, respectively.
71

OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in the aggregate under the Former Investment Advisory Agreement. Amounts potentially subject to waiver are accrued quarterly on a cumulative basisthousands, except share and to the extent required, any fees will be waived or reimbursedper share amounts, percentages and 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 million of incentive fees potentially subject to waiver.otherwise indicated)




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, 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. In addition, the calculation of realized capital gains, realized capital losses and unrealized capital depreciation does (1) not include any such amounts resulting solely from merger-related accounting adjustments in connection with the assets acquired in the Mergers, including any premium or discount paid for the acquisition of such assets, solely to the extent that the inclusion of such merger-related accounting adjustments, in the aggregate, would result in an increase in the capital gains incentive fee and (2) include any such amounts associated with the investments acquired in the Mergers for the period from October 1, 2018 to the date of closing of the Mergers, solely to the extent that the exclusion of such amounts, in the aggregate, would result in an increase in the capital gains incentive fee. As of June 30, 2022, the Company paid $9.6 million of capital gains incentive fees cumulatively under the Investment Advisory Agreement (net of waivers). For the three and nine months ended June 30, 2022, 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 and nine months ended June 30, 2022, $6.8 million and $8.8 million of accrued capital gains incentive fees were reversed, respectively. For the three and nine months ended June 30, 2021, $2.8 million and $16.0 million of accrued capital gains incentive fees were expensed, respectively. As of June 30, 2022, the total accrued capital gains incentive fee liability was zero. Part II incentive fees are contractually calculated and paid at the end of the fiscal year in accordance with the Investment Advisory Agreement, which, as described above, differs from Part II incentive fees accrued under GAAP. Hypothetically, if Part II incentive fees were calculated as of June 30, 2022 under the Investment Advisory Agreement, there would be no amounts payable.
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
72

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




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.
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 June 30, 2022 and throughout the Company’s 2017 fiscal year,2021, the Company was party toaccrued administrative expenses of $0.3 million and $0.5 million, respectively, including $0.1 million and $0.1 million of general and administrative expenses, respectively. For the Former Administration Agreement with the Former 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, facilitiesnine months ended June 30, 2022 and personnel,2021, the Company reimbursedaccrued administrative expenses of $1.2 million and $1.2 million, respectively, including $0.2 million and $0.1 million of general and administrative expenses, respectively.
As of June 30, 2022 and September 30, 2021, $3.5 million and $4.4 million, respectively, was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to Oaktree Administrator.

73

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 12.11. 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
June 30, 2022
Three months ended
June 30, 2021
Nine months ended
June 30, 2022
Nine months ended
June 30, 2021
Net asset value per share at beginning of period$7.26$7.09$7.28$6.49
Net investment income (1)0.220.200.620.41
Net unrealized appreciation (depreciation) (1)(0.47)0.02(0.65)0.74
Net realized gains (losses) (1)0.050.050.110.15
(Provision) benefit for taxes on realized and unrealized gains (losses) (1)(0.01)0.01(0.02)
Distributions of net investment income to stockholders(0.17)(0.13)(0.48)(0.36)
Issuance of common stock(0.19)
Net asset value per share at end of period6.897.226.897.22
Per share market value at beginning of period$7.37$6.20$7.06$4.84
Per share market value at end of period6.556.696.55$6.69
Total return (2)(8.93)%9.98%(0.79)%46.39%
Common shares outstanding at beginning of period183,205180,361180,361140,961
Common shares outstanding at end of period183,374180,361183,374180,361
Net assets at beginning of period$1,330,376$1,278,823$1,312,823$914,879
Net assets at end of period$1,263,529$1,302,414$1,263,529$1,302,414
Average net assets (3)$1,306,727$1,298,995$1,323,232$1,094,761
Ratio of net investment income to average net assets (4)12.39%11.09%11.39%7.82%
Ratio of total expenses to average net assets (4)7.22%9.23%7.94%10.02%
Ratio of net expenses to average net assets (4)6.99%9.00%7.71%9.91%
Ratio of portfolio turnover to average investments at fair value4.73%7.43%21.44%31.59%
Weighted average outstanding debt (5)$1,369,615$1,140,774$1,358,150$884,525
Average debt per share (1)$7.47$6.32$7.47$5.67
Asset coverage ratio at end of period (6)187.82%216.01%187.82%216.01%
 __________
(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 sharesprincipal debt outstanding for the period.
(5)(6)Interim periods are annualized.Based on outstanding senior securities of $1,395.0 million and $1,114.1 million as of June 30, 2022 and 2021, respectively.


74

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.12. Derivative Instruments
The 2019 Notes were issued pursuantCompany enters into foreign currency forward 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 juniorISDA Master Agreement permits a single net payment in the event of a default or similar event. As of June 30, 2022, no cash collateral has been pledged to all existingcover obligations and future indebtedness (including trade payables) incurred byno cash collateral has been received from the counterparty with respect to the Company's subsidiaries, financing vehicles or similar facilities. forward currency contracts.
InterestIn connection with the issuance of the 2027 Notes, the Company entered into an interest rate swap agreement with the Royal Bank of Canada pursuant to an ISDA Master Agreement. As of June 30, 2022, the Company paid $36.3 million to the Royal Bank of Canada to cover collateral obligations under the terms of the interest swap agreement, which is included in due from broker on the 2019 Notes is paid semi-annually on March 1Consolidated Statement of Assets 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.Liabilities.
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 financialCertain 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.Company’s foreign currency forward contracts is presented below as of June 30, 2022.
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.
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$46,196 43,643 8/11/2022$440 $— Derivative asset
Foreign currency forward contract$49,442 £40,109 8/11/2022$694 $— Derivative asset
$1,134 $ 
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 pursuant 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 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 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 financialCertain 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 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 any of the 2024 Notes in the open market.
For each of the three months ended December 31, 2017 and December 31, 2016, the Company recorded interest expense of $1.2 million related to the 2024 Notes.Company’s foreign currency forward contracts is presented below as of September 30, 2021.
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.
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$52,186 £37,709 11/12/2021$1,339 $— Derivative asset
Foreign currency forward contract$46,663 39,736 11/12/2021$573 $— Derivative asset
$1,912 $ 
2028 Notes
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.
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.
For the three months ended December 31, 2017 and December 31, 2016, the secured borrowings bore interest at a weighted averageCompany’s interest rate swap is presented below as 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,June 30, 2022.
DescriptionNotional AmountMaturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet Location of Net Amounts
Interest rate swap$350,000 1/15/2027$— $30,866 Derivative liability
$ $30,866 
Certain information related to the secured borrowings.Company’s interest rate swap is presented below as of September 30, 2021.

DescriptionNotional AmountMaturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet Location of Net Amounts
Interest rate swap$350,000 1/15/2027$— $2,108 Derivative liability
$ $2,108 


Note 15.13. Commitments and Contingencies
SEC Examination and Investigation
On March 23, 2016, the Division of Enforcement of the SEC sent document subpoenas and document preservation notices to the Company, FSAM, FSCO GP LLC - General Partner 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, and in the previously disclosed securities class actions and other previously disclosed litigation. The subpoenas were issued pursuant to a formal order 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 to the Board of Directors, other representatives of pooled investment vehicles, investors, or prospective investors concerning the fair value of the Company's portfolio companies or investments as well as expenses allocated or charged to the Company and OCSI, (v) various issues relating to adoption and implementation of policies and procedures under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), (vi) statements and/or potential omissions in the entities’ SEC filings, (vii) 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 provisions of the Securities Act of 1933, as amended, the Exchange Act and the Advisers Act, as well as rules promulgated under those Acts, as the bases of the investigation. The Company is cooperating with the Division 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.
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,June 30, 2022, the Company's only off-balance sheet arrangements consisted of $98.7$232.1 million of unfunded commitments, which was comprised of $88.0$183.1 million to provide debt and equity financing to certain of its portfolio companies $1.3and $49.0 million to provide equity financing to SLF JV I and $9.4 million related to unfunded limited partnership interests.the JVs. As of September 30, 2017,2021, the
75

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




Company's only off-balance sheet arrangements consisted of $118.1$264.9 million of unfunded commitments, which was comprised of $107.3$212.4 million to provide debt and equity financing to certain of its portfolio companies, $1.3$49.0 million to provide equity financing to SLF JV Ithe JVs 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:
76

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, subordinated notes and LLC equity interests in the JVs, preferred stock and limited partnership interests) as of December 31, 2017June 30, 2022 and September 30, 2017.2021 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.
June 30, 2022September 30, 2021
Senior Loan Fund JV I, LLC$35,000 $35,000 
Fairbridge Strategic Capital Funding LLC32,250 — 
Athenex, Inc.21,072 21,072 
BioXcel Therapeutics, Inc.14,066 — 
OCSI Glick JV LLC13,998 13,998 
Dominion Diagnostics, LLC11,148 11,148 
BAART Programs, Inc.9,562 3,583 
MRI Software LLC6,800 2,699 
Innocoll Pharmaceuticals Limited6,292 — 
Marinus Pharmaceuticals, Inc.5,734 18,349 
Establishment Labs Holdings Inc.5,075 — 
Accupac, Inc.5,014 3,267 
RumbleOn, Inc.4,822 16,301 
Assembled Brands Capital LLC4,746 24,868 
Ardonagh Midco 3 PLC4,372 14,892 
Grove Hotel Parcel Owner, LLC4,293 — 
Mindbody, Inc.4,000 4,000 
OTG Management, LLC3,789 3,789 
Mesoblast, Inc.3,553 — 
Pluralsight, LLC3,532 3,532 
Dialyze Holdings, LLC3,431 3,431 
Spanx, LLC3,092 — 
Thrasio, LLC2,578 2,578 
PRGX Global, Inc.2,518 2,518 
Liquid Environmental Solutions Corporation2,324 — 
Relativity ODA LLC2,218 2,218 
Acquia Inc.1,971 2,061 
Tahoe Bidco B.V.1,741 — 
PFNY Holdings, LLC1,527 — 
CorEvitas, LLC1,526 3,235 
MHE Intermediate Holdings, LLC1,429 3,466 
Apptio, Inc.1,338 1,338 
LSL Holdco, LLC1,282 — 
Kings Buyer, LLC1,208 — 
Berner Food & Beverage, LLC1,114 2,475 
Telestream Holdings Corporation1,055 1,266 
Coyote Buyer, LLC933 1,333 
Digital.AI Software Holdings, Inc.826 898 
109 Montgomery Owner LLC513 937 
GKD Index Partners, LLC320 320 
Gulf Operating, LLC— 10,064 
Coty Inc.— 9,886 
Latam Airlines Group S.A.— 7,267 
Sunland Asphalt & Construction, LLC— 6,492 
NeuAG, LLC— 5,441 
Olaplex, Inc.— 4,806 
Pingora MSR Opportunity Fund I-A, LP— 3,500 
SIO2 Medical Products, Inc.— 3,406 
SumUp Holdings Luxembourg S.À.R.L.— 3,350 
4 Over International, LLC— 2,300 
The Avery— 1,850 
Ministry Brands, LLC— 1,100 
Thermacell Repellents, Inc.— 833 
CircusTrix Holdings, LLC— 37 
Total$232,062 $264,904 

77

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





Note 16.14. 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 and nine months ended December 31, 2017,June 30, 2022, except as discussed below:below.
Distribution Declaration
On February 5, 2018,July 29, 2022, the Company’s Board of Directors declared a quarterly dividenddistribution of $0.085$0.17 per share, payable in cash on MarchSeptember 30, 20182022 to stockholders of record on MarchSeptember 15, 2018.2022.



78









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)
ThreeNine months ended December 31, 2017June 30, 2022
(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,
2021
Gross
Additions (3)
Gross
Reductions (4)
Fair Value
as of June 30, 2022
% 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 2.2 %
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20247.26 %$16,074 — 1,078 27,381 — (11,307)16,074 1.3 %
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024— — 42 — — — — — %
30,030.8 Common Units in DD Healthcare Services Holdings, LLC— 3,308 18,065 — (8,798)9,267 0.7 %
First Star Speir Aviation Limited (5)Airlines
First Lien Term Loan, 9.00% cash due 12/15/2025— 7,500 — 7,500 — (7,500)— — %
100% equity interest(5,632)158 698 — (698)— — %
OCSI Glick JV LLC (6)Multi-Sector Holdings
Subordinated Debt, LIBOR+4.50% cash due 10/20/20284.94 %60,274 — 3,292 55,582 1,123 (6,099)50,606 4.0 %
87.5% equity interest— — — — — — — %
Senior Loan Fund JV I, LLC (7)Multi-Sector Holdings
Subordinated Debt, LIBOR+7.00% cash due 12/29/20288.00 %96,250 — 5,839 96,250 — — 96,250 7.6 %
87.5% LLC equity interest— 2,026 37,651 — (14,628)23,023 1.8 %
Total Control Investments$172,598 $1,868 $15,743 $270,765 $1,123 $(49,030)$222,858 17.6 %
Affiliate Investments
Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.75% cash due 10/17/20239.00 %$21,754 $— $1,185 $15,712 $11,585 $(6,037)$21,260 1.7 %
1,609,201 Class A Units— — 587 — (24)563 — %
1,019,168.80 Preferred Units, 6%— — 1,152 51 — 1,203 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%— — — 838 — (437)401 — %
Total Affiliate Investments$21,754 $ $1,185 $18,289 $11,636 $(6,498)$23,427 1.9 %
Total Control & Affiliate Investments$194,352 $1,868 $16,928 $289,054 $12,759 $(55,528)$246,285 19.5 %
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.
(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.
79


(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 GF Equity Funding, the Company co-invests through Glick JV. Glick JV is capitalized as transactions are completed and all portfolio and investment decisions in respect to Glick JV must be approved by the Glick JV investment committee consisting of representatives of the Company and GF Equity Funding (with approval from a representative of each required).
(7)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).



80


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)
ThreeNine months ended December 31, 2016June 30, 2021
(unaudited)

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%

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 June 30, 2021
% 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 2.1 %
Dominion Diagnostics, LLCHealth Care Services
First Lien Term Loan, LIBOR+5.00% cash due 2/28/20246.00 %$27,451 — 1,293 27,660 — (209)27,451 2.1 %
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024— — 261 5,260 2,439 (7,699)— — %
30,030.8 Common Units in DD Healthcare Services Holdings, LLC— 358 7,667 10,398 — 18,065 1.4 %
 First Star Speir Aviation Limited (5)Airlines
First Lien Term Loan, 9.00% cash due 12/15/20257,500 — — 11,510 — (4,010)7,500 0.6 %
100% equity interest— 550 1,622 1,021 (2,161)482 — %
New IPT, Inc.Oil & Gas Equipment & Services
First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021— — 42 1,800 504 (2,304)— — %
First Lien Revolver, LIBOR+5.00% cash due 3/17/2021— — 17 788 221 (1,009)— — %
50.087 Class A Common Units in New IPT Holdings, LLC— — — — — — — %
OCSI Glick JV LLC (6)Multi-Sector Holdings
Subordinated Debt, LIBOR+4.50% cash due 10/20/20284.70 %62,296 — 1,134 — 55,923 (526)55,397 4.3 %
87.5% equity interest— — — — — — — %
 Senior Loan Fund JV I, LLC (7)Multi-Sector Holdings
Subordinated Debt, LIBOR+7.00% cash due 12/29/20288.00 %96,250 — 5,420 96,250 — — 96,250 7.4 %
87.5% LLC equity interest— 451 21,190 15,505 — 36,695 2.8 %
Total Control Investments$193,497 $ $9,526 $201,385 $86,011 $(17,918)$269,478 20.7 %
Affiliate Investments
 Assembled Brands Capital LLCSpecialized Finance
First Lien Revolver, LIBOR+6.00% cash due 10/17/20237.00 %$11,924 $— $452 $4,194 $7,996 $(510)$11,680 0.9 %
1,609,201 Class A Units— — 483 96 — 579 — %
1,019,168.80 Preferred Units, 6%— — 1,091 40 — 1,131 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 — (172)569 — %
Total Affiliate Investments$11,924 $ $452 $6,509 $8,132 $(682)$13,959 1.1 %
Total Control & Affiliate Investments$205,421 $ $9,978 $207,894 $94,143 $(18,600)$283,437 21.8 %

81

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, included in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2021.
(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. 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 GF Equity Funding, the Company co-invests through Glick JV. Glick JV is capitalized as transactions are completed and all portfolio and investment decisions in respect to Glick JV must be approved by the Glick JV investment committee consisting of representatives of the Company and GF Equity Funding (with approval from a representative of each required).
(7)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 “ItemItem 1A. Risk Factors”Factors in our annual report on Form 10-K for the year ended September 30, 20172021 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 or political environment, including the impacts of inflation and political environment;rising interest rates;
risks associated with possible disruption in our operations or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters;disasters or 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 to realize the anticipated benefits of the Mergers (as defined below); 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 dedicated to providing 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 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 U.S. federal income 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, orAdministrator, an affiliate of Oaktree, Administrator or OFA, a subsidiary of our Investment Adviser, also provides certain administrative and other
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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. 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 becomingIn the current market environment, Oaktree intends to focus on the following areas, in which Oaktree believes there is less competition and thus potential for greater returns, for our new investment adviser,opportunities: (1) situational lending, which we define to include directly originated loans to non-sponsor companies that are hard to understand and value using traditional underwriting techniques, (2) select sponsor lending, which we define to include financing to support leveraged buyouts of companies with specialized sponsors that have expertise in certain industries, and (3) stressed sector and rescue lending, which we define to include opportunistic private loans in industries experiencing stress or limited access to capital.
Oaktree intends to continue to rotate our 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 approximately $800 million at fair value. Over time, Oaktree also intends to rotate us out of the remaining non-core investments, which were approximately $80$77 million at fair value as of June 30, 2022. Oaktree periodically reviews designations of investments as core and non-core and may change such designations over time.

On March 19, 2021, we acquired Oaktree Strategic Income Corporation, or OCSI, pursuant to the Merger Agreement, dated as of October 28, 2020, by and among OCSI, us, Lion Merger Sub, Inc., our wholly-owned subsidiary, or Merger Sub, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the Merger Agreement, Merger Sub was first merged with spreads over LIBORand into OCSI, with OCSI as the surviving corporation, or the Merger, and, immediately following the Merger, OCSI was then merged with and into us, with us as the surviving company or together with the Merger, or the Mergers. In accordance with the terms of less than 4.0% and, overthe Merger Agreement, at the effective time of the Merger, each outstanding share of OCSI’s common stock was converted into the right 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 integrationreceive 1.3371 shares 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, ascommon stock (with OCSI’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of this integration.the Mergers, we issued an aggregate of 39,400,011 shares of our common stock to former OCSI stockholders.
Business Environment and Developments
The opportunity set
Global financial markets have experienced an increase in credit is still dominated byvolatility as concerns about the search for yield as central banksimpact of higher inflation, rising interest rates, a potential recession, the current conflict in JapanUkraine and Europethe ongoing uncertainty related to the COVID-19 pandemic have weighed on market participants. These factors have created disruptions in supply chains and economic activity and have had a particularly adverse impact on certain companies in the energy, raw materials and transportation sectors, among others. These uncertainties can ultimately impact the overall supply and demand of the market through changing spreads, deal terms and structures and equity purchase price multiples.

We are unable to predict the full effects of these macroeconomic events or how long any further market disruptions or volatility might last. We 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.
Duringto closely monitor 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, during the quarter ended December 31, 2017, the Credit Suisse Leveraged Loan Index spread ranged between 3.70% and 3.88% and was 3.75% as of December 31, 2017. The weighted average annual yieldimpact these events have on our business, industry and portfolio of 9.0% as of December 31, 2017 compares favorably in the current environment.companies and will provide constructive solutions where necessary.
We believe that the fundamentals of middle-market companies remain strong, which drove the highest lending level in three years. In
Against this environment,uncertain macroeconomic backdrop, we believe attractive risk-adjusted returns can be achieved by investing inmaking loans to middle market companies that cannot efficiently access traditional debt capital markets. Wetypically possess resilient business models with strong underlying fundamentals. Given the breadth of the investment platform and decades of credit investing experience of Oaktree and its affiliates, we believe that the Company has
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we 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
UponAs of June 30, 2022, 87.8% of our debt investment portfolio (at fair value) and 87.6% of our debt investment portfolio (at cost) bore interest at floating rates. Most of our floating rate loans are indexed to the closingLIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly or monthly at the borrower’s option. Certain loans may also be indexed to the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements, backed by Treasury securities, or the Sterling Overnight Index Average, or SONIA, an alternative reference rate that is based on transactions. In July 2017, the head of the transactions,United Kingdom Financial Conduct Authority, or the Transaction, contemplatedFCA, announced the desire to phase out the use of LIBOR by the Asset Purchase Agreement,end of 2021. However, in March 2021 the FCA announced that most U.S. dollar LIBOR would continue to be published through June 30, 2023 effectively extending the LIBOR transition period to June 30, 2023. However, the FCA no longer compels panel banks to continue to contribute to LIBOR and the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have encouraged banks to cease entering into new contracts that use U.S. dollar LIBOR as a reference rate no later than December 31, 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, supports replacing U.S.-dollar LIBOR with SOFR. Although there have been issuances utilizing SOFR or SONIA, it is unknown whether these alternative reference rates will attain market acceptance as replacements for LIBOR. 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 Purchase Agreement, by and among Oaktree, our Former Adviser and, for certain limited purposes, Fifth Street Asset Management Inc., or FSAM, the indirect, partial ownerconsent of our Former Adviser, and Fifth Street Holdings L.P., the direct, partial owner of our Former Adviser, on October 17, 2017, Oaktree became the investment advisereach lender, prior to each of Oaktree Strategic Income Corporation, or OCSI, and us, and Oaktree paid gross cash consideration of $320 million to our Former Adviser. The closingidentifying a replacement reference rate. Certain of the Transaction resulted in an assignmentloan agreements with our portfolio companies do not include any fallback language providing a mechanism for purposes of the 1940 Act of our investment advisory agreement with FSM, orparties to negotiate a new reference interest rate and will instead revert to 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”base rate in the notesevent LIBOR ceases to the accompanying Consolidated Financial Statements.exist.


In order to ensure that 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 as a result of the closing of the Transaction or any express or implied terms, conditions or understandings applicable thereto during the two-year period after the closing of the Transaction.
Critical Accounting PoliciesEstimates

Investment Valuation
Basis of Presentation
Our Consolidated Financial Statements have been preparedWe value our investments 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 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
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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. Under the EV technique, the significant unobservable input used in the fair value measurement of our investments in debt or equity securities is the 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. 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. Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities is the market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.
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 certain 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’s valuation team in conjunction with the Investment Adviser’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;
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 Adviser and the Audit Committee of our Board of Directors;
The Investment Adviser 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, and our Investment Adviser responds and supplements the preliminary valuations to reflect any discussions between our Investment Adviser 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, 2017June 30, 2022 and September 30, 20172021 was determined in good faith by our Board of Directors. Our Board of Directors hasWe have 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%June 30, 2022, 89.0% 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.
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Certain factors that may be considered in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company’s earnings and its ability to make payments on its indebtedness, the markets in which the portfolio company does business, comparison to comparable publicly-traded companies, discounted cash flow and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to these uncertainties, our fair value determinations may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize upon the sale of one or more of our investments.
As of December 31, 2017June 30, 2022, we held $2,565.4 million of investments at fair value, up from $2,556.6 million held at September 30, 2021, primarily driven by new originations and partially offset by unrealized losses related to credit spread widening. As of June 30, 2022 and September 30, 2017,2021, approximately 94.7%95.4% and 95.4%97.0%, 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,each of June 30, 2022 and September 30, 2021, there were eightno investments on which we had stopped accruing cash and/or PIK interest or OID income.non-accrual status.
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 payment-in-kind, or 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 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, or 5.0%, of the fair value of our portfolio of investments as of December 31, 2017 and $69.4 million, or 4.5%, of fair value of our portfolio investments as of September 30, 2017. The net increases in loan balances as a result of contractual PIK arrangements are separately identified in our Consolidated Statements of Cash Flows.
87


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, and OCSI Glick JV LLC, or the Glick JV, a joint venture through which we and GF Equity Funding 2014 LLC, or GF Equity Funding, co-invest primarily in senior secured loans of middle-market companies. We refer to SLF JV I and the Glick JV collectively as the JVs. 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 threenine months ended December 31, 2017,June 30, 2022, we originated $183.0$659.7 million of investment commitments in 1340 new and one34 existing portfolio companies and funded $200.2$607.0 million of investments.
During the threenine months ended December 31, 2017,June 30, 2022, we received $196.4$545.0 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 27 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:
June 30, 2022September 30, 2021
Cost:
Senior secured debt85.14 %85.85 %
Debt investments in the JVs5.50 5.79 
Preferred equity3.18 2.60 
Subordinated debt2.76 1.67 
LLC equity interests of the JVs1.85 1.94 
Common equity and warrants1.57 2.15 
Total100.00 %100.00 %
 
June 30, 2022September 30, 2021
Fair value:
Senior secured debt86.60 %86.72 %
Debt investments in the JVs5.72 5.94 
Preferred equity3.18 2.49 
Subordinated debt2.49 1.67 
LLC equity interests of the JVs1.11 1.47 
Common equity and warrants0.90 1.71 
Total100.00 %100.00 %
  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%

88

  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:
June 30, 2022September 30, 2021
Cost:
Application Software15.30 %14.49 %
Multi-Sector Holdings (1)7.35 7.73 
Pharmaceuticals4.84 5.44 
Data Processing & Outsourced Services4.52 4.74 
Biotechnology3.85 4.41 
Health Care Technology3.69 0.55 
Industrial Machinery2.94 3.47 
Aerospace & Defense2.80 2.66 
Specialized Finance2.77 2.70 
Internet & Direct Marketing Retail2.55 2.45 
Fertilizers & Agricultural Chemicals2.42 2.63 
Construction & Engineering2.30 2.44 
Health Care Services2.23 3.34 
Automotive Retail2.22 1.65 
Internet Services & Infrastructure2.02 1.85 
Personal Products1.99 4.08 
Metal & Glass Containers1.75 0.69 
Health Care Distributors1.74 0.78 
Home Improvement Retail1.73 1.83 
Leisure Facilities1.61 0.99 
Airport Services1.61 1.64 
Real Estate Services1.51 1.59 
Real Estate Operating Companies1.48 1.08 
Diversified Support Services1.43 1.60 
Specialty Chemicals1.42 1.84 
Health Care Supplies1.36 1.17 
Insurance Brokers1.34 1.00 
Integrated Telecommunication Services1.30 1.85 
Soft Drinks1.30 1.32 
Electrical Components & Equipment1.27 1.27 
Oil & Gas Storage & Transportation1.18 1.44 
Advertising1.12 1.13 
Other Diversified Financial Services1.10 0.63 
Oil & Gas Refining & Marketing1.04 1.42 
Movies & Entertainment0.98 1.02 
Distributors0.95 — 
Health Care Equipment0.91 0.93 
Environmental & Facilities Services0.73 — 
Home Furnishings0.73 0.77 
Cable & Satellite0.72 1.05 
Systems Software0.56 0.26 
Consumer Finance0.54 — 
Hotels, Resorts & Cruise Lines0.52 — 
Auto Parts & Equipment0.47 0.49 
IT Consulting & Other Services0.44 0.30 
Research & Consulting Services0.38 0.29 
Air Freight & Logistics0.36 0.19 
Restaurants0.35 0.37 
Education Services0.34 0.04 
Trading Companies & Distributors0.29 — 
Apparel, Accessories & Luxury Goods0.19 0.20 
Integrated Oil & Gas0.18 0.19 
Food Distributors0.17 0.18 
Apparel Retail0.17 — 
Specialized REITs0.16 — 
Communications Equipment0.14 — 
Housewares & Specialties0.14 0.07 
Diversified Banks0.13 0.14 
Technology Distributors0.12 0.12 
Construction Materials0.09 0.09 
Alternative Carriers0.08 0.26 
Electronic Components0.08 0.40 
Independent Power Producers & Energy Traders— 0.92 
Airlines— 0.88 
Commercial Printing— 0.78 
Managed Health Care— 0.73 
Thrifts & Mortgage Finance— 0.63 
Property & Casualty Insurance— 0.39 
Leisure Products— 0.26 
Food Retail— 0.15 
Total100.00 %100.00 %
89


  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%
June 30, 2022September 30, 2021
Fair value:
Application Software15.69 %14.58 %
Multi-Sector Holdings (1)6.62 7.41 
Pharmaceuticals4.73 5.56 
Data Processing & Outsourced Services4.38 4.46 
Biotechnology3.97 4.44 
Health Care Technology3.76 0.55 
Industrial Machinery3.02 3.53 
Internet & Direct Marketing Retail2.84 2.68 
Aerospace & Defense2.81 2.72 
Specialized Finance2.68 2.69 
Fertilizers & Agricultural Chemicals2.52 2.64 
Construction & Engineering2.40 2.47 
Automotive Retail2.27 1.65 
Internet Services & Infrastructure2.11 1.87 
Health Care Services2.05 3.31 
Personal Products2.03 4.13 
Metal & Glass Containers1.82 0.68 
Home Improvement Retail1.79 1.82 
Health Care Distributors1.75 0.77 
Airport Services1.64 1.59 
Leisure Facilities1.62 0.90 
Real Estate Services1.56 1.61 
Real Estate Operating Companies1.56 1.11 
Diversified Support Services1.45 1.60 
Health Care Supplies1.41 1.18 
Specialty Chemicals1.38 1.82 
Insurance Brokers1.36 1.08 
Soft Drinks1.32 1.31 
Integrated Telecommunication Services1.30 1.94 
Electrical Components & Equipment1.28 1.26 
Advertising1.11 1.19 
Oil & Gas Storage & Transportation1.09 1.35 
Oil & Gas Refining & Marketing1.07 1.43 
Movies & Entertainment1.05 1.06 
Other Diversified Financial Services1.00 0.62 
Distributors0.96 — 
Health Care Equipment0.93 0.93 
Environmental & Facilities Services0.75 — 
Home Furnishings0.73 0.77 
Cable & Satellite0.70 1.06 
Consumer Finance0.56 — 
Hotels, Resorts & Cruise Lines0.54 — 
Systems Software0.50 0.26 
Auto Parts & Equipment0.46 0.48 
IT Consulting & Other Services0.40 0.29 
Research & Consulting Services0.37 0.30 
Air Freight & Logistics0.35 0.19 
Restaurants0.35 0.37 
Education Services0.33 0.04 
Trading Companies & Distributors0.23 — 
Integrated Oil & Gas0.19 0.19 
Apparel Retail0.17 — 
Housewares & Specialties0.15 0.08 
Communications Equipment0.14 — 
Specialized REITs0.14 — 
Food Distributors0.14 0.18 
Diversified Banks0.13 0.14 
Technology Distributors0.12 0.12 
Electronic Components0.08 0.40 
Construction Materials0.07 0.09 
Alternative Carriers0.07 0.27 
Airlines— 0.96 
Independent Power Producers & Energy Traders— 0.92 
Commercial Printing— 0.79 
Managed Health Care— 0.74 
Thrifts & Mortgage Finance— 0.62 
Property & Casualty Insurance— 0.39 
Leisure Products— 0.26 
Food Retail— 0.15 
Total100.00 %100.00 %
___________________
(1)This industry includes our investment in SLF JV I.

(1)This industry includes our investments in the JVs and certain limited partnership interests.

90


Loans and Debt Securities on Non-Accrual Status
As of each of December 31, 2017 and September 30, 2017, there were eight investments 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, 2017 and September 30, 2017 were as follows:Joint Ventures
  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%
 ___________________
(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 not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act. 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, 2017June 30, 2022 and September 30, 2017,2021, 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.
SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch, or, as amended, the Deutsche Bank I facility, which as of December 31, 2017 permitted up to $200.0 million of borrowings as of December 31, 2017 and September 30, 2017. As of December 31, 2017, the stated maturity date of the Deutsche Bank I facility was July 1, 2023, and borrowings under the Deutsche Bank I facility bear interest at a rate equal to 3-month London Interbank Offered Rate, or 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. There was $105.1 million and $71.5 million outstanding under 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.
As of December 31, 2017, borrowings under the Deutsche Bank I facility are secured by all of the assets of the special purpose financing vehicle of SLF JV I.
As of December 31, 2017 and September 30, 2017, SLF JV I had total assets of $284.5 million and $276.8 million, respectively. As of December 31, 2017, our investment in SLF JV I consisted of LLC equity interests of $4.9 million, 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. As of September 30, 2017, 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 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.
Notes. As of each of December 31, 2017June 30, 2022 and September 30, 2017,2021, 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, 2017each of June 30, 2022 and September 30, 2017,2021, we and Kemper had the optionaggregate commitments to fund SLF JV I of $35.0 million, of which approximately $26.2 million was to fund additional mezzanine notes, subject to additional equity funding to SLF JV I. As of each of December 31, 2017I Notes and September 30, 2017, we had commitmentsapproximately $8.8 million was to fund LLC equity interests in SLF JV I of $17.5 million, of which $1.3 million was unfunded.
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, 2017 and September 30, 2017:

  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% 7.7%
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 annual interest rate on accruing senior secured loans.

SLF JV I Portfolio as of December 31, 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
 $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 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
__________________
(1) Represents the current interest rate as of December 31, 2017. 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 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.



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. All interest rates are payable in cash, unless otherwise noted.
(2) Represents the current determination of fair value as of September 30, 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 September 30, 2017.
(4) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and 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 based on each respective credit agreement.
(5) This investment is 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.I.
Both the cost and fair value of the Class A mezzanine secured deferrable floating rate notes ofour SLF JV I held by usNotes were $100.8 million and $101.0$96.3 million as of December 31, 2017each of June 30, 2022 and September 30, 2017,2021. We earned interest income of $1.9 million and $5.8 million on the SLF JV I Notes for the three and nine months ended June 30, 2022, respectively. We earned cash interest income of $1.8$1.9 million and $0.2$5.4 million on our investments in these notesthe SLF JV I Notes for the three and nine months ended December 31, 2017 and December 31, 2016,June 30, 2021, respectively. BothAs of June 30, 2022, the cost and fair value of the Class B mezzanine secured deferrable fixed rate notes of 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 INotes bore interest at a rate of one-month LIBOR plus 8.0%7.00% per annum with a LIBOR floor of 1.00% and we earned interest income of $2.9 millionwill mature 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$23.0 million, respectively, as of December 31, 2017,June 30, 2022, and $16.2$49.3 million and $5.5$37.7 million, respectively, as of September 30, 2017.2021. We did not earn anyearned $0.9 million and $2.0 million in dividend income for the three and nine months ended December 31, 2017 and earned dividend income of $0.7 million for the three months ended December 31, 2016,June 30, 2022, respectively, with respect to our investment in the LLC equity interests.interests of SLF JV I. We earned $0.5 million in dividend income for the three and nine months ended June 30, 2021 with respect to our investment in the LLC equity 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.


Below is certain summarizeda summary of SLF JV I's portfolio as of June 30, 2022 and September 30, 2021:
June 30, 2022September 30, 2021
Senior secured loans (1)$357,198$344,196
Weighted average interest rate on senior secured loans (2)6.79%5.60%
Number of borrowers in SLF JV I5655
Largest exposure to a single borrower (1)$9,650$9,875
Total of five largest loan exposures to borrowers (1)$47,298$46,984
__________________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

See "Note 3. Portfolio Investments" in the notes to the accompanying financial statements for more information foron SLF JV I and its portfolio.
91


OCSI Glick JV LLC
On March 19, 2021, as a result of December 31, 2017the consummation of the Mergers, we became party to the LLC agreement of the Glick JV. The Glick JV invests primarily in senior secured loans of middle-market companies. We co-invest in these securities with GF Equity Funding through the Glick JV. The Glick JV is managed by a four person Board of Directors, two of whom are selected by us and two of whom are selected by GF Equity Funding. All portfolio decisions and investment decisions in respect of the Glick JV must be approved by the Glick JV investment committee, consisting of one representative selected by us and one representative selected by GF Equity Funding (with approval from a representative of each required). Since we do not have a controlling financial interest in the Glick JV, we do not consolidate the Glick JV. The Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act. The Glick JV is capitalized as transactions are completed. The members provide capital to the Glick JV in exchange for LLC equity interests, and we and GF Debt Funding 2014 LLC, or GF Debt Funding, an entity advised by affiliates of GF Equity Funding, provide capital to the Glick JV in exchange for subordinated notes issued by the Glick JV, or the Glick JV Notes. The Glick JV Notes are junior in right of payment to the repayment of temporary contributions made by us to fund investments of the Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Glick JV Notes, respectively.
As of June 30, 2022 and September 30, 20172021, we and forGF Equity Funding owned 87.5% and 12.5%, respectively, of the outstanding LLC equity interests, and we and GF Debt Funding owned 87.5% and 12.5%, respectively, of the Glick JV Notes. Approximately $84.0 million in aggregate commitments was funded as of each of June 30, 2022 and September 30, 2021, of which $73.5 million was from us. As of June 30, 2022 and September 30, 2021, we had commitments to fund Glick JV Notes of $78.8 million, of which $12.4 million was unfunded. As of each of June 30, 2022 and September 30, 2021, we had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million was unfunded.

The cost and fair value of our aggregate investment in the Glick JV was $50.4 million and $50.6 million, respectively, as of June 30, 2022. The cost and fair value of our aggregate investment in the Glick JV was $50.7 million and $55.6 million, respectively, as of September 30, 2021. For the three and nine months ended June 30, 2022, our investment in the Glick JV Notes earned interest income of $1.2 million and $3.3 million, respectively. For the three months ended December 31, 2017June 30, 2021, our investment in the Glick JV Notes earned interest income of $1.0 million. For the period from March 19, 2021 to June 30, 2021, our investment in the Glick JV Notes earned interest income of $1.1 million. We did not earn any dividend income for the three and December 31, 2016:nine months ended June 30, 2022 and for the period from March 19, 2021 to June 30, 2021 with respect to our investment in the LLC equity interests of the Glick JV. The LLC equity interests of the Glick JV are income producing to the extent there is residual cash to be distributed on a quarterly basis.
Below is a summary of the Glick JV's portfolio as of June 30, 2022 and September 30, 2021:
  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
June 30, 2022September 30, 2021
Senior secured loans (1)$141,783$126,512
Weighted average current interest rate on senior secured loans (2)6.85%5.86%
Number of borrowers in the Glick JV4337
Largest loan exposure to a single borrower (1)$6,645$6,907
Total of five largest loan exposures to borrowers (1)$28,564$28,324

  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 chargedAt principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans at SLF JV I.

fair value.
SLF JV I has electedSee "Note 3. Portfolio Investments" in the notes to fair value the debt securities issued to us and Kemper under ASC Topic 825, Financial Instruments, or ASC 825. The debt securities are valued basedaccompanying financial statements for more information on the total assets less the total liabilities senior to the mezzanine notes of SLFGlick JV I in an amount not exceeding par under the enterprise value technique.and its portfolio.
During the three months ended December 31, 2017 and December 31, 2016, we did not sell any senior secured debt investments to SLF JV I.
92


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 and nine months ended December 31, 2017June 30, 2022 and December 31, 2016June 30, 2021
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, 2017June 30, 2022 and December 31, 20162021 was $33.9$63.1 million and $51.8$65.4 million, respectively. For the three months ended December 31, 2017,June 30, 2022, this amount primarily consisted of $31.8$59.9 million of interest income from portfolio investments (which included $1.9$5.2 million of PIK interest), $1.0$2.3 million of fee income and $1.0 million of dividend income. For the three months ended December 31, 2016,June 30, 2021, this amount primarily consisted of $46.7$56.6 million of interest income from portfolio investments (which included $2.8$4.6 million of PIK interest), $3.6$7.8 million of fee income and $1.5$1.0 million of dividend income.
The decrease of $17.9$2.3 million, or 3.5%, in our total investment income for the three months ended December 31, 2017,June 30, 2022, as compared to the three months ended December 31, 2016,June 30, 2021, was due primarily to a $14.9$5.5 million decrease in fee income resulting from lower prepayment and amendment fees, partially offset by a $3.3 million increase in interest income, primarily resulting from a larger investment portfolio and the impact of rising reference rates on interest income, partially offset by lower OID acceleration from exited investments.
Total investment income for the nine months ended June 30, 2022 and 2021 was $192.4 million and $145.6 million, respectively. For the nine months ended June 30, 2022, this amount consisted of $181.7 million of interest income from portfolio investments (which included $14.5 million of PIK interest), $5.1 million of fee income and $5.6 million of dividend income. For the nine months ended June 30, 2021, this amount consisted of $130.8 million of interest income from portfolio investments (which included $11.5 million of PIK interest), $13.5 million of fee income and $1.4 million of dividend income. The increase of $46.8 million, or 32.1%, in our total investment income for the nine months ended June 30, 2022, as compared to the nine months ended June 30, 2021, was due primarily to (1) a $50.9 million increase in interest income, which was attributable toprimarily driven by a decrease in the size of ourlarger average investment portfolio as a $2.5result of the increase in assets resulting from the Mergers and new originations and the impact of rising reference rates on interest income and (2) a $4.2 million increase in dividend income mainly driven by larger dividends received from two investments as compared with the prior year. This was partially offset by a $8.4 million decrease in fee income which was attributable 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 attributableprimarily due to lower dividend income earned on our investments in SLF JV I in the current quarter.prepayment and amendment fees.
Expenses
Net expenses (expenses net of fee waivers and insurance recoveries)waivers) for the three months ended December 31, 2017June 30, 2022 and December 31, 20162021 were $20.6$22.8 million and $28.5$29.1 million, respectively. Net expenses decreased for the three months ended December 31, 2017,June 30, 2022, as compared to the three months ended December 31, 2016,June 30, 2021, by $7.9$6.4 million, or 27.8%21.9%, primarily due primarily to (1) $9.6 million of lower accrued Part II incentive fees as a $3.0 million decrease in base managementresult of a reversal of previously accrued capital gains incentive fees, which was attributable to(2) a reduction in the size of our portfolio and a reduction in the base management fee rate under the New Investment Advisory Agreement, a $3.3$0.5 million decrease in Part I incentive fees which was attributablemainly due to lower pre-incentive fee net investment income in the current quarterhigher interest expense and management fees and (3) a $3.6$0.2 million decrease in interest expense attributable to lower levels of outstanding debt in the current quarter,professional fees, partially offset by a $1.8$3.0 million increase in professionalinterest expense due to higher borrowings outstanding and the impact of rising reference rates and $0.9 million of higher base management fees (net of management fee waivers) resulting from a larger investment portfolio.
Net expenses (expenses net of fee waivers) for the nine months ended June 30, 2022 and 2021 were $76.3 million and $81.2 million, respectively. Net expenses decreased for the nine months ended June 30, 2022, as compared to the nine months ended June 30, 2021, by $4.9 million, or 6.0%, primarily due to $24.8 million of lower accrued Part II incentive fees as a result of a reversal of previously accrued capital gains incentive fees driven by unrealized losses during the current period, partially offset by (1) a $9.7 million increase in interest expense due to higher borrowings outstanding and the impact of rising reference rates, (2) $5.9 million of higher base management fees (net of management fee waivers) primarily as a result of a larger investment portfolio and (3) a $4.1 million increase in Part I incentive fees mainly due to higher total investment income, partially offset by higher interest expense and management fees.
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Net Investment Income
AsPrimarily as a result of the $17.9$2.3 milliondecrease in total investment income, and the $7.9$6.4 million decrease in net expenses and a $0.4 million decrease in provision for taxes on net investment income, net investment income for the three months ended December 31, 2017 decreasedJune 30, 2022 increased by $10.0$4.4 million or 42.8%, compared to the three months ended December 31, 2016.June 30, 2021.
Primarily as a result of the $46.8 million increase in total investment income, the $4.9 million decrease in net expenses and a $3.0 million increase in the provision for taxes on net investment income, net investment income for the nine months ended June 30, 2022 increased by $48.7 million compared to the nine months ended June 30, 2021.
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 $0.3June 30, 2022 and 2021, we recorded aggregate net realized gains of $9.2 million forand $8.6 million, respectively, in connection with the threeexits of various investments and foreign currency forward contracts. During the nine months ended December 31, 2017. ForJune 30, 2022 and 2021, we recorded aggregate net realized gains of $19.9 million and $22.7 million, respectively, in connection with the three months ended December 31, 2016, realized losses were driven primarily by the restructuring our investment in SLF JV Iexits of various investments and the disposition of our investment in First Star Aviation, LLC.
foreign currency forward contracts. See “Note 9.Note 8. 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 and nine months ended December 31, 2017June 30, 2022 and December 31, 2016.2021.
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 $43.5June 30, 2022 and 2021, we recorded net unrealized appreciation (depreciation) of $(86.8) million forand $3.9 million, respectively. For the three months ended December 31, 2017. NetJune 30, 2022, this consisted of $66.8 million of net unrealized depreciation foron debt investments, $17.9 million of net unrealized depreciation on equity investments, $1.6 million of net unrealized depreciation of foreign currency forward contracts and $0.4 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains). For the three months ended December 31, 2017 was primarily the resultJune 30, 2021, this consisted of significant write-downs on our investment portfolio, including $39.9$12.3 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 $82.9debt investments, $3.8 million of aggregate write-downsnet unrealized appreciation on fourequity investments and $1.1 million of net unrealized appreciation of foreign currency forward contracts, partially offset by $13.3 million of net reclassificationsunrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized losses (resulting in unrealized appreciation)gains).


See “Note 9. Realized Gains or LossesDuring the nine months ended June 30, 2022 and Net Unrealized Appreciation or Depreciation on Investments and Secured Borrowings” in the Consolidated Financial Statements for more details regarding2021, we recorded net unrealized appreciation (depreciation) on investmentsof $(118.4) million and secured borrowings for$116.6 million, respectively. For the threenine months ended December 31, 2017June 30, 2022, this consisted of $84.6 million of net unrealized depreciation on debt investments, $23.8 million of net unrealized depreciation on equity investments, $9.2 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains) and December 31, 2016.

$0.8 million of net unrealized depreciation of foreign currency forward contracts. For the nine months ended June 30, 2021, this consisted of $79.7 million of net unrealized appreciation on debt investments, $30.7 million of net unrealized appreciation on equity investments, $4.0 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $2.2 million of net unrealized appreciation 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 may not be able 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 publicborrowings or private offerings, which offerings will depend on future market conditions, funding needs and other factors.equity offerings. 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 us 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 June 30, 2022, we had $1,395.0 million in senior securities and our asset coverage ratio was 187.8%. During the quarter, the Company increased its target a debt to equity ratio of 0.70xfrom 0.85x to 0.85x1.0x to 0.90x to 1.25x (i.e., one dollar of equity for each $0.70$0.90 to $0.85$1.25 of debt outstanding).
Although we may fund to provide the growthCompany with increased capacity to opportunistically deploy capital into the markets. As of June 30, 2022, our investment portfolio throughdebt to 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.ratio was 1.10x.
For the threenine months ended December 31, 2017,June 30, 2022, we experienced a net decreaseincrease in cash and cash equivalents (including restricted cash) of $7.6$4.7 million. During that period, we received $67.2used $43.8 million of net cash from operating activities, primarily from $286.0funding $620.8 million of investments and $34.7 million of increase in due from broker (cash held at a broker to cover collateral obligations under the interest swap agreement), partially offset by $554.9 million of principal payments PIK payments and sale proceeds received, $5.3 million of net decrease in receivables from unsettled transactions and the cash activities related to $13.3$112.8 million of net investment income, partially offset by funding $200.2 million of investments and net revolvers.income. During the same period, net cash usedprovided by financing activities was $74.8$49.4 million, primarily consisting of $51.0$115.0 million of net repaymentsborrowings under ourthe credit facilities $17.3and $20.6 million of proceeds (net of offering costs) from shares issued under the "at the market" offering, partially offset by $85.1 million of cash distributions paid to our stockholders, $6.2 million of payments of deferred financing costs and $0.3$0.9 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 threenine months ended December 31, 2016,June 30, 2021, we experienced a net increase in cash and cash equivalents (including restricted cash) of $61.9$48.4 million. During that period, we received $179.1used $35.9 million of net cash from operating activities, primarily from $225.5funding $714.8 million of investments, partially offset by $586.8 million of principal payments, PIK payments and sale proceeds received, and$20.9 million of cash acquired in the Mergers, the cash activities related to $23.3$64.1 million of net investment income partially offset by funding $104.2and $18.3 million of investments and net revolvers.increase in payables from unsettled transactions. During the same period, net cash usedprovided by financing activities was $117.2$85.4 million, primarily consisting of $74.9$349.0 million of borrowings of unsecured notes (net of OID), partially offset by $190.5 million of net repayments under ourthe credit facilities, $24.0$54.3 million of cash distributions paid to our stockholders, $12.5 million of repurchases of common stock under stock repurchase program, $4.5$9.3 million of repayments of secured borrowings, and $1.3$1.6 million of repurchases of common stock under our DRIP.DRIP, and $7.8 million of deferred financing costs paid.
As of December 31, 2017,June 30, 2022, we had $45.8$36.3 million in cash and cash equivalents (including $0.3$2.0 million of restricted cash), portfolio investments (at fair value) of $1.4$2.6 billion, $9.1$29.1 million of interest, dividends and fees receivable, $24.6$455.0 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $5.3 million of net payables from unsettled transactions, $205.0$745.0 million of borrowings outstanding under our credit facilities $406.5and $611.6 million of unsecured notes payable (net of unamortized financing costs), $11.6 million of secured borrowings (atcosts, unaccreted discount and interest rate swap fair value) and unfunded commitments of $98.7 million.value adjustment).
As of September 30, 2017,2021, we had $59.9$31.6 million in cash and cash equivalents (including $6.9$2.3 million of restricted cash), portfolio investments (at fair value) of $1.5$2.6 billion, $6.9$22.1 million of interest, dividends and fees receivable, $58.7$470.0 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $0.1 million of net payablesreceivables from unsettled transactions, $256.0$630.0 million of borrowings outstanding under our credit facilities $406.1and $638.7 million of unsecured notes payable (net of unamortized financing costs), $13.3costs, unaccreted discount and interest rate swap fair value adjustment).
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 June 30, 2022, our only off-balance sheet arrangements consisted of $232.1 million of secured borrowings (at fair value) and unfunded commitments, which was comprised of $118.1 million.$183.1 million to provide debt and equity financing to certain of our portfolio companies and $49.0 million to provide financing to the JVs. As of September 30, 2017, included2021, our only off-balance sheet arrangements consisted of $264.9 million of unfunded commitments, which was comprised of $212.4 million to provide debt and equity financing to certain of our portfolio companies, $49.0 million to provide financing to the JVs and $3.5 million related to unfunded limited partnership interests. Such commitments are subject to our portfolio companies' satisfaction of
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certain financial and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in restrictedexcess of the amount recognized in our Consolidated Statements of Assets and Liabilities.
As of June 30, 2022, we have analyzed cash and cash equivalents, availability under our credit facilities, 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.
Contractual Obligations
The following table reflects information pertaining to our principal debt outstanding under the Syndicated Facility (as defined below), Citibank Facility (as defined below), our 3.500% notes due 2025, or the 2025 Notes, and our 2.700% notes due 2027, or the 2027 Notes:
Debt Outstanding
as of September 30, 2021
Debt Outstanding
as of June 30, 2022
Weighted average debt
outstanding for the
nine months ended
June 30, 2022
Maximum debt
outstanding for the nine months ended
June 30, 2022
Syndicated Facility$495,000 $575,000 $548,846 $620,000 
Citibank Facility135,000 170,000 159,304 185,000 
2025 Notes300,000 300,000 300,000 300,000 
2027 Notes350,000 350,000 350,000 350,000 
Total debt$1,280,000 $1,395,000 $1,358,150 
The following table reflects our contractual obligations arising from the Syndicated Facility, Citibank Facility, 2025 Notes and 2027 Notes:
 Payments due by period as of June 30, 2022
Contractual ObligationsTotalLess than 1 year1-3 years3-5 years
Syndicated Facility$575,000 $— $— $575,000 
Interest due on Syndicated Facility69,984 18,194 36,388 15,402 
Citibank Facility170,000 — 170,000 — 
Interest due on Citibank Facility16,900 7,074 9,826 — 
2025 Notes300,000 — 300,000 — 
Interest due on 2025 Notes27,933 10,500 17,433 — 
2027 Notes350,000 — — 350,000 
Interest due on 2027 Notes (a)43,015 9,458 18,916 14,641 
Total$1,552,832 $45,226 $552,563 $955,043 
__________ 
(a) The interest due on the 2027 Notes was $6.8 million that was held at U.S. Bank, National Associationcalculated net of the interest rate swap.
Equity Issuances
During the nine months ended June 30, 2022, we issued an aggregate of 212,382 shares of common stock as part of the DRIP.
On February 7, 2022, we entered into an equity distribution agreement by and among us, Oaktree, Oaktree Administrator and Keefe, Bruyette & Woods, Inc., JMP Securities LLC, Raymond James & Associates, Inc. and SMBC Nikko Securities America, Inc., as placement agents, in connection with our credit facilitythe issuance and sale by us of shares of common stock, having an aggregate offering price of up to $125.0 million. Sales of the common stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or similar securities exchanges or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.
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In connection with Sumitomo Mitsui Banking Corporation, or SMBC.the "at the market" offering, we issued and sold the following shares of common stock during the nine months ended June 30, 2022:

Number of Shares IssuedGross ProceedsPlacement Agent FeesNet Proceeds (1)Average Sales Price per Share (2)
"At the market" offering2,801,206 $21,049 $210 $20,839 $7.51 
 __________
(1) Net proceeds excludes offering costs of $0.2 million.
(2) Represents the gross sales price before deducting placement agent fees and estimated offering expenses.
On March 19, 2021, in connection with the Mergers, we issued an aggregate of 39,400,011 shares of common stock to former OCSI stockholders. There were no other common stock issuances during the nine months ended June 30, 2021.

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, 2016:2019:
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 12, 2019December 13, 2019December 31, 2019$0.095 $ 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
January 29, 2021March 15, 2021March 31, 20210.12 16.4 million81,702 0.5 million
April 30, 2021June 15, 2021June 30, 20210.13 22.9 million76,979 0.5 million
July 30, 2021September 15, 2021September 30, 20210.145 25.5 million85,075 0.6 million
October 13, 2021December 15, 2021December 31, 20210.155 27.2 million107,971 0.8 million
January 28, 2022March 15, 2022March 31, 20220.16 28.5 million104,411 0.8 million
April 29, 2022June 15, 2022June 30, 20220.165 29.4 million131,028 0.9 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. Duringmarket and distributed other than with respect to the three monthsdistributions paid on December 31, 2021 and March 31, 2022. New shares were issued and distributed during the quarters ended December 31, 2016, we repurchased 2,298,247 shares of2021 and March 31, 2022.
our common stock for $12.5 million, including commissions, under the common stock repurchase program. This authorization has been fully utilized.

Indebtedness
See “NoteNote 6. Borrowings”Borrowings in the Consolidated Financial Statements for more details regarding our indebtedness and secured borrowings.indebtedness.
SBIC SubsidiariesSyndicated Facility

As of December 31, 2017 and SeptemberJune 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 surrender2022, (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/or restated from time to time, the ING facility,Syndicated 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., BofA Securities, Inc. and Merrill Lynch, Pierce, Fenner & Smith IncorporatedMUFG Union Bank, N.A. 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 $600 million of borrowings and includesagents, was $1.0 billion (with an “accordion” feature that permits us, under certain circumstances, to increase the size of the facility to up to $800 million. Borrowings under the ING Credit Agreement beargreater of $1.25 billion and our net worth (as defined in the Syndicated Facility) on the date of such increase), (ii) the period during which we may make drawings will expire on May 4, 2025 and the maturity date was May 4, 2026 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 a margin of 2.25%, 2.50% or 2.75% per annum depending on our senior debt coverage ratio as calculated under the ING Credit Agreement, with no LIBOR floor orwas 2.00% and (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.loans was 1.00%.

Each loan or letter of credit originated or assumed under the ING facilitySyndicated Facility is subject to the satisfaction of certain conditions. Borrowings under the Syndicated 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 facilitySyndicated Facility at any particular time or at all.
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The following table describes significant financial covenants, as of December 31, 2017,June 30, 2022, with which we must comply under the ING facilitySyndicated Facility on a quarterly basis:
Financial CovenantDescriptionTarget ValueMarch 31, 2022 Reported Value (1)
Minimum shareholders' equityNet assets shall not be less than the greatersum of (a) 40% of total assets and (b) $700(x) $600 million, plus (y) 50% of the aggregate net proceeds of all sales of equity interests after November 30, 2017May 6, 2020
$610 million$1,330 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 us1.50:11.93:1
Interest coverage ratioInterest coverage ratio shall not be less than 2.00:2.25:12.25:14.85:1
Minimum net worthNet worth shall not be less than $650$550 million$550 million$1,155 million
 ___________ 
(1) As contractually required, we report financial covenants based on the last filed quarterly or annual report, in this case our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022. We were in compliance with all financial covenants under the ING facilitySyndicated 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,June 30, 2022 and September 30, 2021, we had $205.0$575.0 million and $495.0 million of borrowings outstanding under the ING facility,Syndicated Facility, respectively, which had a fair value of $205.0 million.$575.0 million and $495.0 million, respectively. Our 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 INGSyndicated Facility bore interest at a weighted average interest rate of 3.705%2.406% and 2.945%2.202% for the period from October 1, 2017 to November 30, 2017 and the threenine months ended December 31, 2016,June 30, 2022 and 2021, respectively.
For the three and nine months ended December 31, 2017,June 30, 2022, we recorded interest expense (inclusive of $2.7fees) of $4.8 million in the aggregate,and $12.6 million, respectively, related to the Prior ING Facility and the ING facility.Syndicated Facility. For the three and nine months ended December 31, 2016,June 30, 2021, we recorded interest expense (inclusive of $4.2fees) of $4.0 million and $10.5 million, respectively, related to the Prior INGSyndicated Facility.
SumitomoCitibank Facility
On September 16, 2011, our consolidated wholly-owned bankruptcy remote, special purpose subsidiary, or Funding II, entered intoMarch 19, 2021, as a result of the consummation of the Mergers, we became party to a revolving credit facility, or, as amended and/or restated from time to time, the Sumitomo facility,Citibank Facility, with SMBC, an affiliate of Sumitomo Mitsui Financial Group, Inc.,OCSL Senior Funding II LLC, our wholly-owned, special purpose financing subsidiary, as administrative agent,the borrower, us, as collateral manager and seller, each of the lenders from time to time party thereto. Priorthereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian. As of June 30, 2022, we were able to November 24, 2017, the Sumitomo facility permittedborrow up to $125$200 million of borrowingsunder the Citibank Facility (subject to collateral requirements)borrowing base and other limitations)BorrowingsAs of June 30, 2022, the reinvestment period under the Sumitomo facility boreCitibank Facility was scheduled to expire on November 18, 2023 and the maturity date for the Citibank Facility was November 18, 2024.
As of June 30, 2022, borrowings under the Citibank Facility are subject to certain customary advance rates and accrue interest at a rate of either (i)equal to LIBOR (1-month) plus 2.00%between 1.25% and 2.20% per annum with noon broadly syndicated loans, subject to observable market depth and pricing, and 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 ifon all other eligible loans during the borrowingsreinvestment period. In addition, as of June 30, 2022, for the duration of the reinvestment period there is a non-usage fee payable of 0.50% per annum on the undrawn amount under the Sumitomo facility were less than or equalCitibank Facility. The minimum asset coverage ratio applicable to 35%us under the Citibank Facility is 150% as determined in accordance with the requirements of the aggregate available borrowingsInvestment Company Act. Borrowings under the Sumitomo facility. On November 24, 2017,Citibank Facility are secured by all of the assets of OCSL Senior Funding II asLLC and all of our equity interests in OCSL Senior Funding II LLC. We may use the borrowerCitibank Facility to fund a portion of our loan origination activities and for general corporate purposes. Each loan origination under the Sumitomo facility, repaid all outstanding borrowings thereunder, following whichCitibank Facility is subject to the Sumitomo facility was terminated. Obligations under the Sumitomo facility would have otherwise matured on the earliersatisfaction of August 6, 2018 or the date on which the Prior ING Facility was repaid, refinanced or terminated. certain conditions.
As of December 31, 2017, the CompanyJune 30, 2022 and September 30, 2021, we had no borrowings$170.0 million and $135.0 million outstanding under the Sumitomo facility.
Citibank Facility, respectively, which had a fair value of $170.0 million and $135.0 million, respectively. Our borrowings under the Sumitomo facilityCitibank Facility bore interest at a weighted average interest rate of 3.501%2.563% and 2.784%2.198% for the nine months ended June 30, 2022 and the period from October 1, 2017 through termination on November 24, 2017 and the three months ended December 31, 2016,March 19, 2021 to June 30, 2021, respectively. For the three and nine months ended December 31, 2017 and December 31, 2016,June 30, 2022, we recorded interest expense (inclusive of $0.7fees) of $1.6 million and $0.6$3.5 million, respectively, related to the Sumitomo facility.

2019 Notes
Citibank Facility. For each of the three months ended December 31, 2017June 30, 2021 and December 31, 2016, wethe period from March 19, 2021 to June 30, 2021, the Company recorded interest expense (inclusive 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 anyfees) of the 2019 Notes in the open market.
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$0.8 million and $250.7 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, 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. 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, 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 December 31, 2016, we recorded interest expense of $0.3 million and $0.4$0.9 million, respectively, related to the secured borrowings.Citibank Facility.
Off-Balance Sheet Arrangements2025 Notes
We may be a partyOn February 25, 2020, we 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 notes.
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2027 Notes
On May 18, 2021, we issued $350.0 million in aggregate principal amount of the 2027 Notes for net proceeds of $344.8 million after deducting OID of $1.0 million, underwriting commissions and discounts of $3.5 million and offering costs of $0.7 million. The OID on the 2027 Notes is amortized based on the effective interest method over the term of the notes.
In connection with the 2027 Notes, we entered into an interest rate swap to financial instruments with off-balance sheet risk inmore closely align the normal course of business to meet the financial needsinterest rates of our liabilities with our investment portfolio, companies. Aswhich consists of December 31, 2017, our only off-balance sheet arrangements consistedpredominately floating rate loans. Under the interest rate swap agreement, we receive a fixed interest rate of $98.7 million of unfunded commitments, which was comprised of $88.0 million to provide debt financing to certain of our portfolio companies, $1.3 million to provide equity financing to SLF JV I2.700% and $9.4 million related to unfunded limited partnership interests. As of September 30, 2017, our only off-balance sheet arrangements consisted of $118.1 million of unfunded commitments, which was comprised of $107.3 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 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 excesspay a floating interest rate of the three-month LIBOR plus 1.658% on a notional amount recognizedof $350 million. We designated the interest rate swap as the hedging instrument in our Consolidated Statementsan effective hedge accounting relationship.
The below table presents the components of Assetsthe carrying value of the 2025 Notes and Liabilities.
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)the 2027 Notes as of December 31, 2017 and SeptemberJune 30, 2017 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
 $118,073
 ___________ 
(1) This investment was on cash or PIK non-accrual status as of December 31, 20172022 and September 30, 2017.2021:
(2) This portfolio company does not have the ability to draw on this unfunded commitment as of December 31, 2017.
 As of June 30, 2022As of September 30, 2021
($ in millions)2025 Notes2027 Notes2025 Notes2027 Notes
Principal$300.0 $350.0 $300.0 $350.0 
  Unamortized financing costs(2.0)(3.4)(2.6)(4.0)
  Unaccreted discount(1.3)(0.8)(1.7)(0.9)
  Interest rate swap fair value adjustment— (30.9)— (2.1)
Net carrying value$296.7 $314.9 $295.7 $343.0 
Fair Value$284.0 $301.1 $314.5 $351.1 



Contractual Obligations
The followingbelow table reflects information pertainingpresents the components of interest and other debt expenses related to our debt outstanding under the ING facility, the Sumitomo facility, the 2019 Notes, the 2024 Notes, the 20282025 Notes and our secured borrowings:the 2027 Notes for the three and nine months ended June 30, 2022:
  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.

2025 Notes2027 Notes
($ in millions)Three months ended June 30, 2022Nine months ended June 30, 2022Three months ended June 30, 2022Nine months ended June 30, 2022
Coupon interest$2.6 $7.9 $2.4 $7.1 
Amortization of financing costs and discount0.3 0.9 0.2 0.7 
Effect of interest rate swap— — (0.1)(1.6)
 Total interest expense$2.9 $8.8 $2.5 $6.2 
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)3.500 %3.500 %2.572 %2.069 %
The followingbelow table reflects our contractual obligations arising frompresents the ING facility, our secured borrowings, our 2019 Notes, our 2024components of interest and other debt expenses related to the 2025 Notes and our 2028 Notes:the 2027 Notes for the three and nine months ended June 30, 2021:
2025 Notes2027 Notes
($ in millions)Three months ended June 30, 2021Nine months ended June 30, 2021Three months ended June 30, 2021Nine months ended June 30, 2021
Coupon interest$2.6 $7.9 $1.1 $1.1 
Amortization of financing costs and discount0.3 0.9 0.1 0.1 
Effect of interest rate swap— — (0.3)(0.3)
 Total interest expense$2.9 $8.8 $0.9 $0.9 
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)3.500 %3.500 %1.813 %1.813 %
  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

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 U.S. federal income 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
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(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 20152020 and 20162021 and do not expect to incur a U.S. federal excise tax for the calendar year 2017.2022. 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 facilityour credit facilities 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.
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's last tax year end.
2021.
Year EndedQualified Net Interest IncomeQualified Short-Term Capital Gains
September 30, 2017202185.889.8 %
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.
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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.Oaktree Capital Group, LLC. See “Note 11.Note 10. 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
Distribution Declaration
On February 5, 2018,July 29, 2022, our Board of Directors declared a quarterly dividenddistribution of $0.085$0.17 per share, payable in cash on MarchSeptember 30, 20182022 to stockholders of record on MarchSeptember 15, 2018.2022.

Rule 2a-5

Recently Issued Accounting StandardsOn July 29, 2022, the Board of Directors appointed Oaktree as the valuation designee under Rule 2a-5 of the Investment Company Act effective September 8, 2022 for purposes of determining the fair value of our investments.
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.risks. Our investment income will be affected by changes in various interest rates, including LIBOR, SOFR, SONIA 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%June 30, 2022, 87.8% of our debt investment portfolio (at fair value) and 80.5%87.6% of our debt investment portfolio (at cost) bore interest at floating rates. As of September 30, 2021, 91.5% of our debt investment portfolio (at fair value) and 91.8% 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, 2017June 30, 2022 and September 30, 20172021, was as follows: 
 June 30, 2022September 30, 2021
($ in thousands)Fair Value% of Floating Rate PortfolioFair Value% of Floating Rate Portfolio
0%$256,910 11.9 %$322,222 14.6 %
>0% and <1%362,178 17.0 %283,065 12.8 %
1%1,452,203 68.0 %1,507,977 68.4 %
>1%65,328 3.1 %92,384 4.2 %
Total Floating Rate Investments$2,136,619 100.0 %$2,205,648 100.0 %
  December 31, 2017 September 30, 2017
($ 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,June 30, 2022, 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 in net assets resulting from operations
250$54,812 $(27,375)$27,437 
20043,780 (21,900)21,880 
15032,802 (16,425)16,377 
10021,866 (10,950)10,916 
5010,933 (5,475)5,458 

102


($ 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.


($ in thousands) Basis point decrease(Decrease) in Interest IncomeDecrease in Interest ExpenseNet (decrease) in net assets resulting from operations
50$(10,789)$5,475 $(5,314)
100(19,446)10,950 (8,496)
150(24,552)12,892 (11,660)
200(26,628)13,742 (12,886)
We regularly measure exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on this review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. The following table shows a comparison of the interest rate base for our interest-bearing cash and outstanding investments, at principal, and our outstanding borrowings as of December 31, 2017June 30, 2022 and September 30, 2017:2021: 
 June 30, 2022September 30, 2021
($ in thousands)Interest Bearing
Cash and
Investments
BorrowingsInterest Bearing
Cash and
Investments
Borrowings
Money market rate$8,657 $— $23,600 $— 
Prime rate2,285 — 305 10,000 
LIBOR
30 day797,277 575,000 674,613 485,000 
90 day (a)831,103 520,000 1,037,019 485,000 
180 day300,499 — 323,869 — 
360 day33,861 — 96,095 — 
EURIBOR
30 day25,967 — 28,786 — 
90 day17,680 — 19,599 — 
180 day2,053 — 18,516 — 
SOFR
30 day82,763 — — — 
90 day88,208 — — — 
SONIA
30 day26,112 — — — 
180 day22,633 — — — 
Fixed rate318,859 300,000 200,599 300,000 
Total$2,557,957 $1,395,000 $2,423,001 $1,280,000 
__________ 
(a)Borrowings include the 2027 Notes, which pay interest at a floating rate under the terms of the interest rate swap.
103
  December 31, 2017 September 30, 2017
($ 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

(a) Evaluation of Disclosure Controls and Procedures

Management, with the participation of the Company’sour Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2017.June 30, 2022. 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’sSecurities and Exchange Commission’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,June 30, 2022, 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 June 30, 2022 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, weWe are currently not a party to any pending material legal proceedings except as described below.proceedings.
SEC Examination and Investigation
On March 23, 2016, the Division of Enforcement of the SEC sent document subpoenas 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 activities of our Former Adviser, including those raised in an ordinary-course examination of the Former Adviser by the SEC’s Office of Compliance Inspections and Examinations that began in October 2015, and in the previously disclosed securities class actions and other previously disclosed litigation. The subpoenas were issued pursuant to a formal order 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 to our board of directors, other representatives of pooled investment vehicles, investors, or prospective investors concerning the fair value of our portfolio companies or investments as well as expenses allocated or charged to us and OCSI, (v) various issues relating to adoption and implementation of policies and procedures under the Advisers Act, (vi) statements and/or potential omissions in the entities’ SEC filings, (vii) 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 provisions of the Securities Act of 1933, as amended, the Exchange Act and the Advisers Act, as well as rules promulgated under those Acts, as the bases of the investigation. We are cooperating with the Division of Enforcement investigation, have produced requested documents, and have been communicating with Division of Enforcement personnel. Our Investment Adviser is not subject to these subpoenas.


Item 1A. Risk Factors
ThereExcept as set forth below, there have been no material changes during the three months ended December 31, 2017 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2017.2021.

Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the ongoing conflict between Russia and Ukraine.

The global economy has been negatively impacted by the military conflict between Russia and Ukraine. Furthermore, governments in the U.S., United Kingdom, and European Union have each imposed export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia. We do not currently have investments in companies headquartered or that operate primarily in Russia or Ukraine. However, businesses in the United States and globally have experienced shortages in materials and increased costs for transportation, energy, and raw material due in part to the negative impact of the Russia-Ukraine military conflict on the global economy, all of which could have an indirect impact on our portfolio companies. Further escalation of geopolitical tensions related to the military conflict, including increased trade barriers or restrictions on global trade, could result in, among other things, cyberattacks, supply disruptions, lower consumer demand, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business, financial condition and results of operations and that of our portfolio companies. In addition, the effects of the ongoing conflict could heighten many of our known risks described in the Company's Annual Report on Form 10-K for the year ended September 30, 2021.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
None.

Item 3. Defaults Upon Senior Securities
None.

Item 4.     Mine Safety Disclosures
104


Not applicable.

Item 5. Other Information
None.

Item 6. Exhibits

Restated Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-A (File No. 001-33901) filed on January 2, 2008).


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).


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).


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).
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).
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).


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).
Fourth Amended and Restated Bylaws of Oaktree Specialty Lending Corporation, effective as of January 29, 2018 (Incorporated by reference to Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-00755) filed on January 29, 2018)
Fourth Supplemental Indenture, dated as of October 17, 2017, between Registrant 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).
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).
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).
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).
Investment Advisory Agreement, dated as of October 17, 2017, between the Registrant and Oaktree Capital Management, L.P. (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
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).
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).
Amendment No. 9 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of November 17, 2017, among the Registrant, FSFC Holdings, Inc., Fifth Street Fund of Funds LLC, the lenders party thereto and ING Capital LLC as administrative agent for the lenders party thereto (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).
Senior Secured Revolving Credit Agreement, dated as of November 30, 2017, 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).



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


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 CarlisleChristopher McKown
 
Mel Carlisle

Christopher McKown
 Chief Financial Officer and Treasurer
Date: February 7, 2018August 3, 2022






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