0001414932ocsl:InvestmentOwnedAtCostMemberocsl:InvestmentSectorConcentrationRiskMemberocsl:HealthCareDistributorsMember2021-10-012022-09-300001414932us-gaap:AdditionalPaidInCapitalMember2021-10-012021-12-31

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, 2023
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)

DELAWAREDelaware
(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  Yes  þ     NO       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  Yes  þ   No  ¨   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  ¨
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  Yes  ¨     NO       No  þ
The registrant had 140,960,65177,079,811 shares of common stock outstanding as of February 7, 2018.August 1, 2023.







OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2017JUNE 30, 2023




TABLE OF CONTENTS


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

1








PART I — FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.
Item 1. Consolidated Financial Statements.

Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
June 30, 2023 (unaudited)September 30, 2022
ASSETS
Investments at fair value:
Control investments (cost June 30, 2023: $285,236; cost September 30, 2022: $260,305)$238,196 $214,165 
Affiliate investments (cost June 30, 2023: $25,370; cost September 30, 2022: $27,353)23,911 26,196 
Non-control/Non-affiliate investments (cost June 30, 2023: $2,985,679; cost September 30, 2022: $2,330,096)2,873,512 2,253,750 
Total investments at fair value (cost June 30, 2023: $3,296,285; cost September 30, 2022: $2,617,754)3,135,619 2,494,111 
Cash and cash equivalents59,704 23,528 
Restricted cash12,956 2,836 
Interest, dividends and fees receivable29,457 35,598 
Due from portfolio companies2,080 22,495 
Receivables from unsettled transactions39,261 4,692 
Due from broker39,990 45,530 
Deferred financing costs13,284 7,350 
Deferred offering costs186 32 
Deferred tax asset, net2,695 1,687 
Derivative assets at fair value49 6,789 
Other assets693 1,665 
Total assets$3,335,974 $2,646,313 
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities$3,412 $3,701 
Base management fee and incentive fee payable20,072 15,940 
Due to affiliate7,724 3,180 
Interest payable12,907 7,936 
Payables from unsettled transactions2,785 26,981 
Derivative liability at fair value39,567 41,969 
Credit facilities payable1,135,000 700,000 
Unsecured notes payable (net of $3,909 and $5,020 of unamortized financing costs as of June 30, 2023 and September 30, 2022, respectively)605,066 601,043 
Total liabilities1,826,533 1,400,750 
Commitments and contingencies (Note 13)
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 77,080 and 61,125 shares issued and outstanding as of June 30, 2023 and September 30, 2022, respectively (1)771 611 
Additional paid-in-capital2,163,528 1,827,721 
Accumulated overdistributed earnings(654,858)(582,769)
Total net assets (equivalent to $19.58 and $20.38 per common share as of June 30, 2023 and September 30, 2022, respectively) (Note 11) (1)1,509,441 1,245,563 
Total liabilities and net assets$3,335,974 $2,646,313 
  
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
 __________
(1) As discussed in Note 2, the Company completed a 1-for-3 reverse stock split on January 20, 2023, effective as of the commencement of trading on January 23, 2023. The issued and outstanding shares and net asset value per share reflect the reverse stock split on a retroactive basis.


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
December 31, 2017		 Three months ended
December 31, 2016		Three months ended June 30, 2023Three months ended June 30, 2022Nine months ended
June 30, 2023		Nine months ended
June 30, 2022
Interest income:    Interest income:
Control investments $3,203
 $4,445
Control investments$5,568 $3,400 $15,326 $10,214 
Affiliate investments 949
 1,008
Affiliate investments681 470 1,970 1,170 
Non-control/Non-affiliate investments 25,565
 38,301
Non-control/Non-affiliate investments88,069 50,707 234,516 155,656 
Interest on cash and cash equivalents 221
 119
Interest on cash and cash equivalents992 151 2,221 157 
Total interest income 29,938
 43,873
Total interest income95,310 54,728 254,033 167,197 
PIK interest income:    PIK interest income:
Control investments 1,191
 1,560
Affiliate investments 176
 201
Non-control/Non-affiliate investments 500
 1,076
Non-control/Non-affiliate investments3,967 5,178 14,220 14,515 
Total PIK interest income 1,867
 2,837
Total PIK interest income3,967 5,178 14,220 14,515 
Fee income:    Fee income:
Control investments 120
 309
Control investments13 12 38 38 
Affiliate investments 4
 482
Affiliate investments5 5 15 15 
Non-control/Non-affiliate investments 907
 2,777
Non-control/Non-affiliate investments1,555 2,258 5,921 5,039 
Total fee income 1,031
 3,568
Total fee income1,573 2,275 5,974 5,092 
Dividend and other income:    
Dividend income:Dividend income:
Control investments 1,040
 1,462
Control investments1,050 875 3,150 5,491 
Non-control/Non-affiliate investments —
 20
Non-control/Non-affiliate investments— 81 4 81 
Total dividend and other income 1,040
 1,482
Total dividend incomeTotal dividend income1,050 956 3,154 5,572 
Total investment income 33,876
 51,760
Total investment income101,900 63,137 277,381 192,376 
Expenses:    Expenses:
Base management fee 5,590
 8,614
Base management fee11,983 9,819 33,383 29,853 
Part I incentive fee 830
 4,063
Part I incentive fee9,590 6,497 26,300 19,658 
Part II incentive feePart II incentive fee— (6,796)— (8,791)
Professional fees 2,898
 1,064
Professional fees1,387 885 4,962 3,029 
Board of Directors fees 176
 197
Directors feesDirectors fees160 160 480 443 
Interest expense 9,584
 13,189
Interest expense30,793 11,870 79,316 31,178 
Administrator expense 494
 531
Administrator expense322 271 935 968 
General and administrative expenses 1,116
 1,468
General and administrative expenses752 811 2,753 2,217 
Loss on legal settlements —
 3
Total expenses 20,688
 29,129
Total expenses54,987 23,517 148,129 78,555 
Fees waived (134) (61)Fees waived(1,500)(750)(4,025)(2,250)
Insurance recoveries —
 (602)
Net expenses 20,554
 28,466
Net expenses53,487 22,767 144,104 76,305 
Net investment income before taxesNet investment income before taxes48,413 40,370 133,277 116,071 
(Provision) benefit for taxes on net investment income(Provision) benefit for taxes on net investment income— — — (3,308)
Excise taxExcise tax— — (78)— 
Net investment income 13,322
 23,294
Net investment income48,413 40,370 133,199 112,763 
Unrealized appreciation (depreciation) on investments:    
Unrealized appreciation (depreciation):Unrealized appreciation (depreciation):
Control investments (1,326) 1,339
Control investments734 (16,991)(900)(26,552)
Affiliate investments (168) 26
Affiliate investments149 (328)(302)(716)
Non-control/Non-affiliate investments (43,633) (75,721)Non-control/Non-affiliate investments(6,497)(67,806)(36,296)(90,333)
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:    
Foreign currency forward contractsForeign currency forward contracts4,575 (1,630)(4,802)(778)
Net unrealized appreciation (depreciation)Net unrealized appreciation (depreciation)(1,039)(86,755)(42,300)(118,379)
Realized gains (losses):Realized gains (losses):
Control investments —
 (23,624)Control investments— — — 1,868 
Non-control/Non-affiliate investments (291) 528
Non-control/Non-affiliate investments(4,294)416 (14,404)5,888 
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
Foreign currency forward contractsForeign currency forward contracts(6,309)8,796 (5,513)12,179 
Net realized gains (losses)Net realized gains (losses)(10,603)9,212 (19,917)19,935 
(Provision) benefit for taxes on realized and unrealized gains (losses)(Provision) benefit for taxes on realized and unrealized gains (losses)(86)(661)397 1,696 
Net realized and unrealized gains (losses), net of taxesNet realized and unrealized gains (losses), net of taxes(11,728)(78,204)(61,820)(96,748)
Net increase (decrease) in net assets resulting from operationsNet increase (decrease) in net assets resulting from operations$36,685 $(37,834)$71,379 $16,015 
Net investment income per common share — basic and diluted (1)Net investment income per common share — basic and diluted (1)$0.63 $0.66 $1.89 $1.86 
Earnings (loss) per common share — basic and diluted (Note 5) (1)Earnings (loss) per common share — basic and diluted (Note 5) (1)$0.48 $(0.62)$1.01 $0.26 
Weighted average common shares outstanding — basic and diluted (1)Weighted average common shares outstanding — basic and diluted (1)77,080 61,123 70,431 60,593 
__________
(1) As discussed in Note 2, the Company completed a 1-for-3 reverse stock split on January 20, 2023, effective as of the commencement of trading on January 23, 2023. The weighted average common shares outstanding and per share information reflect the reverse stock split on a retroactive basis.


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
December 31, 2017		 Three months ended
December 31, 2016		 Three months ended June 30, 2023Three months ended June 30, 2022Nine months ended
June 30, 2023		Nine months ended
June 30, 2022
Operations:     Operations:
Net investment income $13,322
 $23,294
 Net investment income$48,413 $40,370 $133,199 $112,763 
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) 
Net unrealized appreciation (depreciation)Net unrealized appreciation (depreciation)(1,039)(86,755)(42,300)(118,379)
Net realized gains (losses)Net realized gains (losses)(10,603)9,212 (19,917)19,935 
(Provision) benefit for taxes on realized and unrealized gains (losses)(Provision) benefit for taxes on realized and unrealized gains (losses)(86)(661)397 1,696 
Net increase (decrease) in net assets resulting from operationsNet increase (decrease) in net assets resulting from operations36,685 (37,834)71,379 16,015 
Stockholder transactions:     Stockholder transactions:
Distributions to stockholders (17,621) (25,274) Distributions to stockholders(42,394)(30,256)(143,468)(87,483)
Net decrease in net assets from stockholder transactions (17,621) (25,274) 
Net increase (decrease) in net assets from stockholder transactionsNet increase (decrease) in net assets from stockholder transactions(42,394)(30,256)(143,468)(87,483)
Capital share transactions:     Capital share transactions:
Issuance of common stock in connection with the OSI2 MergerIssuance of common stock in connection with the OSI2 Merger— — 334,034 — 
Issuance of common stock under dividend reinvestment plan 294
 1,250
 Issuance of common stock under dividend reinvestment plan1,123 874 4,351 2,426 
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) 
Repurchase of common stock under dividend reinvestment planRepurchase of common stock under dividend reinvestment plan(1,123)(874)(2,418)(874)
Issuance of common stock in connection with the "at the market" offeringIssuance of common stock in connection with the "at the market" offering— 1,243 — 20,622 
Net increase (decrease) in net assets from capital share transactionsNet increase (decrease) in net assets from capital share transactions— 1,243 335,967 22,174 
Total increase (decrease) in net assetsTotal increase (decrease) in net assets(5,709)(66,847)263,878 (49,294)
Net assets at beginning of period 867,657
 1,142,288
 Net assets at beginning of period1,515,150 1,330,376 1,245,563 1,312,823 
Net assets at end of period $819,595
 $1,030,272
 Net assets at end of period$1,509,441 $1,263,529 $1,509,441 $1,263,529 
Net asset value per common share(1) $5.81
 $7.31
 $19.58 $20.67 $19.58 $20.67 
Common shares outstanding at end of period(1) 140,961
 140,961
 77,080 61,125 77,080 61,125 



__________

(1) As discussed in Note 2, the Company completed a 1-for-3 reverse stock split on January 20, 2023, effective as of the commencement of trading on January 23, 2023. The weighted average common shares outstanding and per share information reflect the reverse stock split on a retroactive basis.


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, 2023		Nine months ended
June 30, 2022
Operating activities:
Net increase (decrease) in net assets resulting from operations$71,379 $16,015 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net unrealized (appreciation) depreciation42,300 118,379 
Net realized (gains) losses19,917 (19,935)
PIK interest income(14,220)(14,515)
Accretion of original issue discount on investments(15,554)(22,707)
Accretion of original issue discount on unsecured notes payable509 509 
Amortization of deferred financing costs3,407 2,801 
Deferred taxes(1,030)(984)
Purchases of investments(597,662)(620,843)
Proceeds from the sales and repayments of investments521,163 554,933 
Cash received in the OSI2 Merger22,317 — 
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable12,866 (9,456)
(Increase) decrease in due from portfolio companies20,520 (4,891)
(Increase) decrease in receivables from unsettled transactions(34,562)4,876 
(Increase) decrease in due from broker5,540 (34,700)
(Increase) decrease in other assets(548)1,017 
Increase (decrease) in accounts payable, accrued expenses and other liabilities(52,290)(700)
Increase (decrease) in base management fee and incentive fee payable37 (17,086)
Increase (decrease) in due to affiliate3,823 (817)
Increase (decrease) in interest payable1,278 3,759 
Increase (decrease) in payables from unsettled transactions(24,196)470 
Increase (decrease) in director fees payable(9)38 
Net cash provided by (used in) operating activities(15,015)(43,837)
Financing activities:
Distributions paid in cash(139,117)(85,057)
Borrowings under credit facilities572,000 290,000 
Repayments of borrowings under credit facilities(362,000)(175,000)
Shares issued under the "at the market" offering— 20,839 
Repurchases of common stock under dividend reinvestment plan(2,418)(874)
Deferred financing costs paid(7,314)(334)
Offering costs paid(186)(215)
Net cash provided by (used in) financing activities60,965 49,359 
Effect of exchange rate changes on foreign currency346 (842)
Net increase (decrease) in cash and cash equivalents and restricted cash46,296 4,680 
Cash and cash equivalents and restricted cash, beginning of period26,364 31,635 
Cash and cash equivalents and restricted cash, end of period$72,660 $36,315 
Supplemental information:
Cash paid for interest$70,429 $24,109 
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan1,933 $2,426 
Deferred Financing costs125 — 
Issuance of shares in connection with the OSI2 Merger334,034 — 
Reconciliation to the Consolidated Statements of Assets and LiabilitiesJune 30,
2023		September 30,
2022
Cash and cash equivalents$59,704 $23,528��
Restricted cash12,956 2,836 
Total cash and cash equivalents and restricted cash$72,660 $26,364 

See notes to Consolidated Financial Statements.


5
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
December 31, 2017June 30, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Control Investments(8)(9)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesCommon Stock829$— $— (15)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesPreferred Equity34,984,46034,984 27,638 (15)
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien Term LoanSOFR+5.00%10.39%8/28/2025$14,102 14,102 14,102 (6)(15)
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien Term LoanSOFR+5.00%8/28/2025— — — (6)(15)(19)
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien RevolverSOFR+5.00%10.24%8/28/20253,484 3,484 3,484 (6)(15)(19)
Dominion Diagnostics, LLCHealth Care ServicesCommon Stock30,03115,222 2,711 (15)
OCSI Glick JV LLCMulti-Sector HoldingsSubordinated DebtL+4.50%9.36%10/20/202858,349 49,997 49,632 (6)(11)(14)(15)(19)
OCSI Glick JV LLCMulti-Sector HoldingsMembership Interest87.5 %— — (11)(14)(16)(19)
Senior Loan Fund JV I, LLCMulti-Sector HoldingsSubordinated DebtL+7.00%11.86%12/29/2028112,656 112,656 112,656 (6)(11)(14)(15)(19)
Senior Loan Fund JV I, LLCMulti-Sector HoldingsMembership Interest87.5 %54,791 27,973 (11)(12)(14)(16)(19)
Total Control Investments (15.8% of net assets)$285,236 $238,196 
Affiliate Investments(17)
Assembled Brands Capital LLCSpecialized FinanceFirst Lien RevolverL+6.75%12.29%10/17/2023$22,304 $22,327 $22,186 (6)(15)(19)
Assembled Brands Capital LLCSpecialized FinanceCommon Stock1,783,332 804 — (15)
Assembled Brands Capital LLCSpecialized FinancePreferred Equity1,129,453 1,159 1,412 (15)
Assembled Brands Capital LLCSpecialized FinanceWarrants78,045— — (15)
Caregiver Services, Inc.Health Care ServicesPreferred Equity1,080,399 1,080 313 (15)
Total Affiliate Investments (1.6% of net assets)$25,370 $23,911 
Non-Control/Non-Affiliate Investments(18)
107-109 Beech OAK22 LLCReal Estate DevelopmentFirst Lien Revolver11.00%2/27/2026$14,916 $14,770 $14,489 (15)(19)
107 Fair Street LLCReal Estate DevelopmentFirst Lien Term Loan12.50%5/31/20241,174 1,133 1,112 (10)(15)(19)
112-126 Van Houten Real22 LLCReal Estate DevelopmentFirst Lien Term Loan12.00%5/4/20243,710 3,664 3,645 (10)(15)(19)
A.T. Holdings II Ltd.BiotechnologyFirst Lien Term Loan14.25%9/13/202921,434 21,620 21,434 (11)(15)(22)
A.T. Holdings II SÀRLBiotechnologyFirst Lien Term Loan20.00%2/6/20245,576 5,561 5,464 (11)(15)
Access CIG, LLCDiversified Support ServicesSecond Lien Term LoanL+7.75%12.94%2/27/202620,000 19,943 18,883 (6)(15)
Accupac, Inc.Personal Care ProductsFirst Lien Term LoanSOFR+5.50%10.86%1/16/202620,286 20,193 20,246 (6)(15)
Accupac, Inc.Personal Care ProductsFirst Lien Term LoanSOFR+5.50%1/16/2026— (2)(8)(6)(15)(19)
Accupac, Inc.Personal Care ProductsFirst Lien RevolverSOFR+5.50%10.86%1/16/20262,033 2,011 2,027 (6)(15)(19)
Acquia Inc.Application SoftwareFirst Lien Term LoanL+7.00%12.34%10/31/20256,400 6,327 6,374 (6)(15)
Acquia Inc.Application SoftwareFirst Lien Term LoanL+7.00%12.34%10/31/202525,332 25,283 25,230 (6)(15)
Acquia Inc.Application SoftwareFirst Lien RevolverL+7.00%12.05%10/31/20252,113 2,101 2,102 (6)(15)(19)
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%12.00%12/18/20253,520 3,480 3,455 (6)(15)
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%12.00%12/18/202518,271 18,091 17,935 (6)(15)
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%11.66%12/18/20251,000 983 982 (6)(15)
ADC Therapeutics SABiotechnologyFirst Lien Term LoanSOFR+7.50%12.89%8/15/20296,589 6,292 6,267 (6)(11)(15)
ADC Therapeutics SABiotechnologyFirst Lien Term LoanSOFR+7.50%8/15/2029— (38)(38)(6)(11)(15)(19)
ADC Therapeutics SABiotechnologyWarrants28,948 174 18 (11)(15)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
AI Sirona (Luxembourg) Acquisition S.a.r.l.PharmaceuticalsSecond Lien Term LoanE+7.25%10.67%9/28/2026€29,985 $33,119 $32,128 (6)(11)(15)
AIP RD Buyer Corp.DistributorsSecond Lien Term LoanSOFR+7.75%12.95%12/21/2029$17,873 17,646 17,533 (6)(15)
AIP RD Buyer Corp.DistributorsCommon Stock17,870 1,733 2,578 (15)
AirStrip Technologies, Inc.Application SoftwareWarrants5,715 90 — (15)
All Web Leads, Inc.AdvertisingFirst Lien Term LoanSOFR+8.50%12/29/202323,562 22,795 16,880 (6)(15)(20)
Altice France S.A.Integrated Telecommunication ServicesFixed Rate Bond5.50%10/15/20294,050 3,561 2,900 (11)
Alto Pharmacy Holdings, Inc.Health Care TechnologyFirst Lien Term LoanSOFR+8.00%13.34%3.50%10/14/20278,794 8,132 8,011 (6)(15)
Alto Pharmacy Holdings, Inc.Health Care TechnologyWarrants166,414 642 518 (15)
Alvogen Pharma US, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+7.50%12.89%6/30/202517,280 17,197 16,503 (6)(15)
Alvotech Holdings S.A.BiotechnologyFixed Rate Bond8.50%3.50%11/16/202628,464 28,363 27,682 (11)(15)
Alvotech Holdings S.A.BiotechnologyFixed Rate Bond8.50%3.50%11/16/20262,121 1,945 2,063 (11)(15)
Alvotech Holdings S.A.BiotechnologyFixed Rate Bond8.50%3.50%11/16/202627,692 27,612 26,930 (11)(15)
Alvotech Holdings S.A.BiotechnologyFixed Rate Bond8.50%3.50%11/16/20262,064 1,891 2,007 (11)(15)
Alvotech Holdings S.A.BiotechnologyCommon Stock824,197 2,426 6,379 (11)
Alvotech Holdings S.A.BiotechnologyCommon Stock141,640 566 339 (11)(13)(15)
American Auto Auction Group, LLCConsumer FinanceSecond Lien Term LoanSOFR+8.75%13.99%1/2/202917,048 16,411 12,616 (6)(15)
American Tire Distributors, Inc.DistributorsFirst Lien Term LoanSOFR+6.25%11.49%10/20/202819,163 18,289 16,718 (6)
Amplify Finco Pty Ltd.Movies & EntertainmentSecond Lien Term LoanSOFR+8.00%13.39%11/26/202712,500 12,188 11,865 (6)(11)(15)
Anastasia Parent, LLCPersonal Care ProductsFirst Lien Term LoanSOFR+3.75%9.25%8/11/20253,710 3,075 2,863 (6)
Apptio, Inc.Application SoftwareFirst Lien Term LoanL+5.00%10.20%1/10/20259,280 9,189 9,280 (6)(15)
Apptio, Inc.Application SoftwareFirst Lien Term LoanL+5.00%10.20%1/10/202532,308 31,999 32,308 (6)(15)
Apptio, Inc.Application SoftwareFirst Lien RevolverL+5.00%10.20%1/10/2025808 792 808 (6)(15)(19)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanE+7.25%10.07%7/14/2026€3,017 3,341 3,321 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanSOFR+6.00%11.25%7/14/2026$10,519 10,389 10,614 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanSONIA+7.25%12.18%7/14/2026£4,949 6,364 6,348 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanSONIA+7.25%12.45%7/14/2026£23,675 28,939 30,370 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanSONIA+5.75%8.57%7/14/2026£3,649 3,927 4,027 (6)(11)(15)
ASP-R-PAC Acquisition Co LLCPaper & Plastic Packaging Products & MaterialsFirst Lien Term LoanSOFR+6.00%11.31%12/29/2027$3,284 3,276 3,120 (6)(11)(15)
ASP-R-PAC Acquisition Co LLCPaper & Plastic Packaging Products & MaterialsFirst Lien RevolverSOFR+6.00%12/29/2027— (14)(20)(6)(11)(15)(19)
Astra Acquisition Corp.Application SoftwareFirst Lien Term LoanL+5.25%10.44%10/25/20288,490 8,153 5,983 (6)
athenahealth Group Inc.Health Care TechnologyPreferred Equity21,523 20,789 18,821 (15)
Athenex, Inc.PharmaceuticalsFirst Lien Term Loan11.00%6/19/20261,338 1,257 1,257 (11)(15)(20)
Athenex, Inc.PharmaceuticalsFirst Lien Term Loan11.00%6/19/20261,338 1,241 1,257 (11)(15)(20)
Athenex, Inc.PharmaceuticalsFirst Lien Term Loan11.00%6/19/20265,350 4,951 5,029 (11)(15)(20)
Athenex, Inc.PharmaceuticalsWarrants10,634 — 488 — (11)(15)
Athenex, Inc.PharmaceuticalsWarrants10,634 488 — (11)(15)
ATNX SPV, LLCPharmaceuticalsFirst Lien Term Loan5/31/203111,683 11,723 11,274 (11)(15)(22)
Aurora Lux Finco S.À.R.L.Airport ServicesFirst Lien Term LoanL+6.00%11.27%12/24/202629,509 29,137 28,299 (6)(11)(15)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Avalara, Inc.Application SoftwareFirst Lien Term LoanSOFR+7.25%12.49%10/19/2028$50,470 $49,639 $49,461 (6)(15)
Avalara, Inc.Application SoftwareFirst Lien RevolverSOFR+7.25%10/19/2028— (113)(101)(6)(15)(19)
The AveryReal Estate Operating CompaniesFirst Lien Term LoanL+7.30%2/17/202319,163 19,163 18,286 (6)(15)(20)
The AveryReal Estate Operating CompaniesSubordinated Debt Term LoanL+12.50%2/17/20234,641 4,641 4,164 (6)(15)(20)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanSOFR+5.00%10.50%6/11/20273,258 3,227 3,173 (6)(15)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanSOFR+5.00%10.50%6/11/20271,264 1,273 1,232 (6)(15)
BAART Programs, Inc.Health Care ServicesSecond Lien Term LoanSOFR+8.50%14.00%6/11/20288,920 8,819 8,661 (6)(15)
BAART Programs, Inc.Health Care ServicesSecond Lien Term LoanSOFR+8.50%14.00%6/11/20282,091 2,067 2,030 (6)(15)
BAART Programs, Inc.Health Care ServicesSecond Lien Term LoanSOFR+8.50%14.00%6/11/20284,361 4,296 4,235 (6)(15)
Berner Food & Beverage, LLCSoft Drinks & Non-alcoholic BeveragesFirst Lien Term LoanSOFR+5.50%10.70%7/30/202740,764 40,529 40,316 (6)(15)
Berner Food & Beverage, LLCSoft Drinks & Non-alcoholic BeveragesFirst Lien RevolverPRIME+4.50%12.50%7/30/20262,528 2,492 2,482 (6)(15)(19)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan8.00%2.25%4/19/20276,719 6,508 6,282 (11)(15)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan9/30/20323,210 3,230 3,130 (11)(15)(22)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan8.00%2.25%4/19/2027— — — (11)(15)(19)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan8.00%2.25%4/19/2027— — — (11)(15)(19)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan9/30/2032— — — (11)(15)(19)(22)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan9/30/2032— — — (11)(15)(19)(22)
BioXcel Therapeutics, Inc.PharmaceuticalsWarrants26,131 225 34 (11)(15)
Blackhawk Network Holdings, Inc.Data Processing & Outsourced ServicesSecond Lien Term LoanL+7.00%12.25%6/15/202630,625 30,346 29,385 (6)
Blumenthal Temecula, LLCAutomotive RetailFirst Lien Term Loan9.00%9/24/20234,994 5,006 4,969 (15)
Blumenthal Temecula, LLCAutomotive RetailPreferred Equity1,708,618 1,711 2,085 (15)
Blumenthal Temecula, LLCAutomotive RetailPreferred Equity394,297 395 481 (15)
Blumenthal Temecula, LLCAutomotive RetailCommon Stock394,297 424 355 (15)
Cadence Aerospace, LLCAerospace & DefenseFirst Lien Term LoanSOFR+6.50%11.91%2.00%11/14/202413 13 13 (6)(15)
Cadence Aerospace, LLCAerospace & DefenseFirst Lien Term LoanSOFR+6.50%11.91%2.00%11/14/20243,031 2,971 3,031 (6)(15)
Cadence Aerospace, LLCAerospace & DefenseFirst Lien Term LoanSOFR+6.50%11.91%2.00%11/14/20241,557 1,526 1,557 (6)(15)
Cadence Aerospace, LLCAerospace & DefenseFirst Lien Term LoanSOFR+6.50%11.91%2.00%11/14/20241,024 1,002 1,024 (6)(15)
CircusTrix Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+5.50%10.70%7/14/2023130 130 130 (6)(15)
CircusTrix Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+5.50%10.70%7/14/2023129 129 129 (6)(15)
CircusTrix Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+5.50%10.70%1/16/20241,084 1,103 1,084 (6)(15)
CircusTrix Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+5.50%10.70%1/16/20249,002 9,003 9,002 (6)(15)
Clear Channel Outdoor Holdings, Inc.AdvertisingFixed Rate Bond7.50%6/1/20292,632 2,632 1,951 (11)
Clear Channel Outdoor Holdings, Inc.AdvertisingFixed Rate Bond7.75%4/15/2028176 170 138 (11)
Condor Merger Sub Inc.Systems SoftwareFixed Rate Bond7.38%2/15/20308,420 8,257 7,330 
Continental Intermodal Group LPOil & Gas Storage & TransportationFirst Lien Term LoanL+8.50%13.69%1/28/202524,350 23,525 21,506 (6)(15)
Continental Intermodal Group LPOil & Gas Storage & TransportationWarrants706 154 (15)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Convergeone Holdings, Inc.IT Consulting & Other ServicesFirst Lien Term LoanL+5.00%10.37%1/4/2026$17,506 $15,434 $11,176 (6)
Conviva Inc.Application SoftwarePreferred Equity417,851 605 894 (15)
CorEvitas, LLCHealth Care TechnologyFirst Lien Term LoanSOFR+6.13%11.33%12/13/202513,671 13,633 13,408 (6)(15)
CorEvitas, LLCHealth Care TechnologyFirst Lien Term LoanSOFR+6.13%11.33%12/13/20254,903 4,853 4,809 (6)(15)
CorEvitas, LLCHealth Care TechnologyFirst Lien RevolverPRIME+5.75%14.00%12/13/20251,250 1,226 1,202 (6)(15)(19)
CorEvitas, LLCHealth Care TechnologyCommon Stock1,500 1,574 3,299 (15)
Coupa Holdings, LLCApplication SoftwareFirst Lien Term LoanSOFR+7.50%12.60%2/27/203013,157 12,843 12,852 (6)(15)
Coupa Holdings, LLCApplication SoftwareFirst Lien Term LoanSOFR+7.50%2/27/2030— (15)(14)(6)(15)(19)
Coupa Holdings, LLCApplication SoftwareFirst Lien RevolverSOFR+7.50%2/27/2029— (21)(21)(6)(15)(19)
Covetrus, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+5.00%10.24%10/13/202914,787 14,186 13,807 (6)
Coyote Buyer, LLCSpecialty ChemicalsFirst Lien Term LoanL+6.00%11.10%2/6/202618,060 17,715 17,706 (6)(15)
Coyote Buyer, LLCSpecialty ChemicalsFirst Lien RevolverSOFR+6.00%11.20%2/6/2025533 520 507 (6)(15)(19)
CPC Acquisition Corp.Specialty ChemicalsSecond Lien Term LoanSOFR+7.75%12/29/2028727 462 325 (6)(15)(20)
Delta Leasing SPV II LLCSpecialized FinanceSubordinated Debt Term Loan3.00%7.00%8/31/202913,043 13,043 13,043 (11)(15)(19)
Delta Leasing SPV II LLCSpecialized FinancePreferred Equity419 419 419 (11)(15)
Delta Leasing SPV II LLCSpecialized FinanceCommon Stock2 2 2 (11)(15)
Delta Leasing SPV II LLCSpecialized FinanceWarrants31 — — (11)(15)
Dialyze Holdings, LLCHealth Care EquipmentFirst Lien Term LoanSOFR+9.00%14.42%8/4/202620,757 20,092 20,705 (6)(15)
Dialyze Holdings, LLCHealth Care EquipmentSubordinated Debt Term Loan8.00%9/30/2027641 640 611 (15)
Dialyze Holdings, LLCHealth Care EquipmentWarrants6,397,254 1,642 1,215 (15)
Digital.AI Software Holdings, Inc.Application SoftwareFirst Lien Term LoanSOFR+7.00%12.34%2/10/202712,418 12,226 12,120 (6)(15)
Digital.AI Software Holdings, Inc.Application SoftwareFirst Lien RevolverSOFR+6.75%12.09%2/10/2027204 184 172 (6)(15)(19)
DirecTV Financing, LLCCable & SatelliteFirst Lien Term LoanSOFR+5.00%10.22%8/2/20274,769 4,687 4,672 (6)
DTI Holdco, Inc.Research & Consulting ServicesFirst Lien Term LoanSOFR+4.75%9.80%4/26/20294,963 4,879 4,632 (6)
Eagleview Technology CorporationApplication SoftwareSecond Lien Term LoanL+7.50%13.04%8/14/20268,974 8,884 7,359 (6)(15)
EOS Fitness Opco Holdings, LLCLeisure FacilitiesPreferred Equity488 488 1,160 (15)
EOS Fitness Opco Holdings, LLCLeisure FacilitiesCommon Stock12,500 — — (15)
Establishment Labs Holdings Inc.Health Care TechnologyFirst Lien Term Loan3.00%6.00%4/21/202710,899 10,779 10,463 (11)(15)
Establishment Labs Holdings Inc.Health Care TechnologyFirst Lien Term Loan3.00%6.00%4/21/20271,746 1,720 1,676 (11)(15)
Establishment Labs Holdings Inc.Health Care TechnologyFirst Lien Term Loan3.00%6.00%4/21/2027— 1 — (11)(15)(19)
Establishment Labs Holdings Inc.Health Care TechnologyFirst Lien Term Loan3.00%6.00%4/21/2027— 1 — (11)(15)(19)
Fairbridge Strategic Capital Funding LLCReal Estate Operating CompaniesFirst Lien Term Loan9.00%12/24/202852,658 52,658 52,658 (15)(19)
Fairbridge Strategic Capital Funding LLCReal Estate Operating CompaniesWarrants2,500 — 3 (11)(15)
FINThrive Software Intermediate Holdings, Inc.Health Care TechnologySecond Lien Term LoanL+6.75%11.94%12/17/202931,074 29,063 18,664 (6)
Fortress Biotech, Inc.BiotechnologyFirst Lien Term Loan11.00%8/27/202511,918 11,572 11,173 (11)(15)
Fortress Biotech, Inc.BiotechnologyWarrants417,011 427 113 (11)(15)
Frontier Communications Holdings, LLCIntegrated Telecommunication ServicesFixed Rate Bond6.00%1/15/20304,881 4,456 3,595 (11)
Galileo Parent, Inc.Aerospace & DefenseFirst Lien Term LoanSOFR+7.25%12.34%5/3/202923,774 23,080 23,094 (6)(15)
Galileo Parent, Inc.Aerospace & DefenseFirst Lien RevolverSOFR+7.25%12.34%5/3/20291,638 1,530 1,532 (6)(15)(19)
Gibson Brands, Inc.Leisure ProductsFirst Lien Term LoanSOFR+5.00%10.25%8/11/20282,463 2,039 1,995 (6)(15)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
GoldenTree Loan Management EUR CLO 2 DACMulti-Sector HoldingsCLO NotesE+2.85%6.05%1/20/2032€1,000 $872 $970 (6)(11)
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise LinesFirst Lien Term LoanSOFR+8.00%13.39%6/21/2027$17,488 17,308 17,314 (6)(15)
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise LinesFirst Lien Term LoanSOFR+8.00%6/21/2027— (58)(35)(6)(15)(19)
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise LinesFirst Lien RevolverSOFR+8.00%6/21/2027— (29)(18)(6)(15)(19)
Harbor Purchaser Inc.Education ServicesFirst Lien Term LoanSOFR+5.25%10.45%4/9/202914,383 13,885 12,352 (6)
Harrow Health, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+6.50%11.74%1/19/20267,448 7,279 7,295 (6)(11)(15)
Harrow Health, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+6.50%1/19/2026— (91)(83)(6)(11)(15)(19)
Horizon Aircraft Finance I Ltd.Specialized FinanceCLO Notes4.46%12/15/20386,932 5,577 6,001 (11)
IAMGOLD CorporationGoldSecond Lien Term LoanSOFR+8.25%13.30%5/16/202823,975 23,274 23,292 (6)(11)(15)
iCIMs, Inc.Application SoftwareFirst Lien Term LoanSOFR+7.25%8.50%3.88%8/18/202824,188 23,876 23,235 (6)(15)
iCIMs, Inc.Application SoftwareFirst Lien Term LoanSOFR+7.25%12.38%8/18/20283,636 3,600 3,563 (6)(15)
iCIMs, Inc.Application SoftwareFirst Lien Term LoanSOFR+7.25%8/18/2028— — — (6)(15)(19)
iCIMs, Inc.Application SoftwareFirst Lien RevolverSOFR+6.75%11.99%8/18/2028377 331 288 (6)(15)(19)
Impel Neuropharma, Inc.Health Care TechnologyFirst Lien Term Loan2/15/203115,302 15,341 14,269 (15)(22)
Impel Neuropharma, Inc.Health Care TechnologyFirst Lien Term LoanSOFR+8.75%14.14%3/17/202713,109 12,939 12,617 (6)(15)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyFirst Lien Term Loan11.00%1/26/20278,452 8,185 7,730 (11)(15)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyFirst Lien Term Loan11.00%1/26/2027— — — (11)(15)(19)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyFirst Lien Term Loan11.00%1/26/2027— — — (11)(15)(19)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyWarrants112,990 300 172 (11)(15)
Integral Development CorporationDiversified Financial ServicesWarrants1,078,284 113 — (15)
Inventus Power, Inc.Electrical Components & EquipmentFirst Lien Term LoanSOFR+7.50%12.72%6/30/202533,498 32,494 32,493 (6)(15)
Inventus Power, Inc.Electrical Components & EquipmentFirst Lien RevolverSOFR+7.50%6/30/2025— (114)(114)(6)(15)(19)
INW Manufacturing, LLCPersonal Care ProductsFirst Lien Term LoanL+5.75%11.29%3/25/202745,169 43,394 35,834 (6)(15)
IPC Corp.Application SoftwareFirst Lien Term LoanSOFR+6.50%11.57%10/1/202640,484 39,779 38,662 (6)(15)
Ivanti Software, Inc.Application SoftwareSecond Lien Term LoanL+7.25%12.42%12/1/202813,939 12,601 9,252 (6)
Jazz Acquisition, Inc.Aerospace & DefenseFirst Lien Term LoanSOFR+7.50%12.70%1/29/202717,069 17,053 16,966 (6)(15)
Jazz Acquisition, Inc.Aerospace & DefenseFirst Lien Term LoanSOFR+7.50%12.70%1/29/202727,360 26,872 27,488 (6)(15)
Jazz Acquisition, Inc.Aerospace & DefenseFirst Lien Term LoanSOFR+5.50%10.60%1/29/202715,150 14,331 14,924 (6)(15)
Jazz Acquisition, Inc.Aerospace & DefenseSecond Lien Term LoanSOFR+8.00%13.20%6/18/2027666 616 652 (6)
Kings Buyer, LLCEnvironmental & Facilities ServicesFirst Lien Term LoanSOFR+6.50%11.84%10/29/202716,765 16,636 16,511 (6)(15)
Kings Buyer, LLCEnvironmental & Facilities ServicesFirst Lien RevolverSOFR+6.50%11.84%10/29/2027545 517 510 (6)(15)(19)
Latam Airlines Group S.A.Passenger AirlinesFirst Lien Term LoanSOFR+9.50%14.61%10/12/202726,489 24,888 26,985 (6)(11)
Lift Brands Holdings, Inc.Leisure FacilitiesCommon Stock2,000,000 1,399 — (15)
Lightbox Intermediate, L.P.Real Estate ServicesFirst Lien Term LoanSOFR+5.00%10.50%5/9/202645,361 44,783 44,227 (6)(15)
Liquid Environmental Solutions CorporationEnvironmental & Facilities ServicesSecond Lien Term LoanSOFR+8.50%13.84%11/30/20265,403 5,344 5,173 (6)(15)
Liquid Environmental Solutions CorporationEnvironmental & Facilities ServicesSecond Lien Term LoanSOFR+8.50%13.84%11/30/20262,939 2,883 2,755 (6)(15)(19)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Liquid Environmental Solutions CorporationEnvironmental & Facilities ServicesCommon Stock559 $563 $487 (15)
LSL Holdco, LLCHealth Care DistributorsFirst Lien Term LoanSOFR+6.00%11.20%1/31/2028$2,742 2,594 2,592 (6)(15)
LSL Holdco, LLCHealth Care DistributorsFirst Lien Term LoanSOFR+6.00%11.20%1/31/202823,554 23,166 22,258 (6)(15)
LSL Holdco, LLCHealth Care DistributorsFirst Lien RevolverSOFR+6.00%1/31/2028— (44)(146)(6)(15)(19)
LTI Holdings, Inc.Electronic ComponentsSecond Lien Term LoanSOFR+6.75%11.97%9/6/20262,140 2,101 1,834 (6)
Marinus Pharmaceuticals, Inc.PharmaceuticalsFirst Lien Term Loan11.50%5/11/20268,568 8,488 8,225 (11)(15)
Marinus Pharmaceuticals, Inc.PharmaceuticalsFirst Lien Term Loan11.50%5/11/20264,284 4,244 4,112 (11)(15)
Marinus Pharmaceuticals, Inc.PharmaceuticalsFirst Lien Term Loan11.50%5/11/20268,568 8,488 8,225 (11)(15)
Marinus Pharmaceuticals, Inc.PharmaceuticalsFirst Lien Term Loan11.50%5/11/2026— — — (11)(15)(19)
Mesoblast, Inc.BiotechnologyFirst Lien Term Loan8.00%1.75%11/19/20269,066 8,496 8,114 (11)(15)
Mesoblast, Inc.BiotechnologyFirst Lien Term Loan8.00%1.75%11/19/2026— 1 — (11)(15)(19)
Mesoblast, Inc.BiotechnologyFirst Lien Term Loan8.00%1.75%11/19/2026— — — (11)(15)(19)
Mesoblast, Inc.BiotechnologyWarrants259,877 545 437 (11)(15)
Mesoblast, Inc.BiotechnologyWarrants66,817 23 153 (11)(15)
MHE Intermediate Holdings, LLCDiversified Support ServicesFirst Lien Term LoanSOFR+6.00%11.20%7/21/202720,176 19,949 19,648 (6)(15)
MHE Intermediate Holdings, LLCDiversified Support ServicesFirst Lien Term LoanSOFR+6.00%11.20%7/21/20272,637 2,594 2,568 (6)(15)
MHE Intermediate Holdings, LLCDiversified Support ServicesFirst Lien RevolverSOFR+6.00%11.25%7/21/2027250 220 203 (6)(15)(19)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien Term LoanL+7.00%12.19%2/14/20257,464 7,416 7,352 (6)(15)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien Term LoanL+7.00%12.19%2/14/202546,687 46,157 45,987 (6)(15)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien RevolverL+7.00%2/14/2025— (51)(71)(6)(15)(19)
MND Holdings III CorpOther Specialty RetailFirst Lien Term LoanSOFR+7.50%12.74%5/9/202840,640 39,937 39,937 (6)(15)
MND Holdings III CorpOther Specialty RetailFirst Lien RevolverSOFR+7.50%12.58%5/9/20282,118 1,853 1,853 (6)(15)(19)
Mosaic Companies, LLCHome Improvement RetailFirst Lien Term LoanL+6.75%11.97%7/2/202655,297 54,939 54,235 (6)(15)
MRI Software LLCApplication SoftwareFirst Lien Term LoanSOFR+5.50%10.84%2/10/202612,397 12,357 12,056 (6)(15)
MRI Software LLCApplication SoftwareFirst Lien Term LoanSOFR+5.50%10.84%2/10/202621,383 21,055 20,795 (6)(15)
MRI Software LLCApplication SoftwareFirst Lien Term LoanSOFR+5.50%10.83%2/10/2026570 559 526 (6)(15)(19)
MRI Software LLCApplication SoftwareFirst Lien RevolverSOFR+5.50%2/10/2026— (29)(62)(6)(15)(19)
Navisite, LLCData Processing & Outsourced ServicesSecond Lien Term LoanL+8.50%14.04%12/30/202630,339 30,002 29,125 (6)(15)
NeuAG, LLCFertilizers & Agricultural ChemicalsFirst Lien Term LoanL+10.50%16.04%9/11/202464,606 64,750 63,185 (6)(15)
NFP Corp.Diversified Financial ServicesFixed Rate Bond6.88%8/15/202810,191 9,816 8,860 
NN, Inc.Industrial Machinery & Supplies & ComponentsFirst Lien Term LoanSOFR+6.88%12.08%2.00%9/19/202673,178 72,195 69,885 (6)(11)(15)
NN, Inc.Industrial Machinery & Supplies & ComponentsWarrants487,870 — — 1,161 (11)(15)
NN, Inc.Industrial Machinery & Supplies & ComponentsWarrants487,870 — — 1,161 (11)(15)
OEConnection LLCApplication SoftwareSecond Lien Term LoanSOFR+7.00%12.34%9/25/20279,323 9,203 9,090 (6)(15)
Oranje Holdco, Inc.Systems SoftwareFirst Lien Term LoanSOFR+7.75%12.79%2/1/202915,231 $14,876 $14,882 (6)(15)
Oranje Holdco, Inc.Systems SoftwareFirst Lien RevolverSOFR+7.75%2/1/2029— (44)(44)(6)(15)(19)
OTG Management, LLCAirport ServicesFirst Lien Term LoanL+10.00%15.50%9/2/202525,712 25,603 25,712 (6)(15)
OTG Management, LLCAirport ServicesFirst Lien Term LoanL+10.00%9/2/2025— (13)— (6)(15)(19)
OTG Management, LLCAirport ServicesFirst Lien Term LoanL+10.00%15.39%9/2/20251,210 1,192 1,210 (6)(15)(19)
P & L Development, LLCPharmaceuticalsFixed Rate Bond7.75%11/15/20257,480 7,514 6,090 
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Park Place Technologies, LLCInternet Services & InfrastructureFirst Lien Term LoanSOFR+5.00%10.20%11/10/2027$9,701 $9,535 $9,458 (6)
Performance Health Holdings, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+6.00%10.96%7/12/202722,375 22,177 21,829 (6)(15)
Planview Parent, Inc.Application SoftwareSecond Lien Term LoanSOFR+7.25%12.59%12/18/202836,499 35,427 32,606 (6)(15)
Pluralsight, LLCApplication SoftwareFirst Lien Term LoanSOFR+8.00%13.04%4/6/202767,244 66,290 64,756 (6)(15)
Pluralsight, LLCApplication SoftwareFirst Lien RevolverSOFR+8.00%13.04%4/6/20272,395 2,312 2,218 (6)(15)(19)
PPW Aero Buyer, Inc.Aerospace & DefenseFirst Lien Term LoanSOFR+7.00%12.10%2/15/202910,923 10,513 10,497 (6)(15)
PPW Aero Buyer, Inc.Aerospace & DefenseFirst Lien RevolverSOFR+7.00%2/15/2029— (55)(57)(6)(15)(19)
PRGX Global, Inc.Data Processing & Outsourced ServicesFirst Lien Term LoanL+6.50%11.73%3/3/202638,521 38,018 38,205 (6)(15)
PRGX Global, Inc.Data Processing & Outsourced ServicesFirst Lien RevolverL+6.50%3/3/2026— (37)(26)(6)(15)(19)
PRGX Global, Inc.Data Processing & Outsourced ServicesCommon Stock100,000 109 221 (15)
Profrac Holdings II, LLCIndustrial Machinery & Supplies & ComponentsFirst Lien Term LoanSOFR+7.25%12.42%3/4/202524,537 24,245 24,047 (6)(15)
Profrac Holdings II, LLCIndustrial Machinery & Supplies & ComponentsFirst Lien Term LoanSOFR+7.25%12.42%3/4/20252,823 2,797 2,767 (6)(15)
Project Boost Purchaser, LLCApplication SoftwareSecond Lien Term LoanSOFR+8.00%13.22%5/31/20276,750 6,652 6,235 (6)(15)
Quantum Bidco LimitedFood DistributorsFirst Lien Term LoanSONIA+5.68%10.88%1/31/2028£4,626 5,900 5,296 (6)(11)(15)
QuorumLabs, Inc.Application SoftwarePreferred Equity64,887,669 375 — (15)
Relativity ODA LLCApplication SoftwareFirst Lien Term LoanSOFR+7.50%11.70%5/12/2027$32,329 32,052 31,715 (6)(15)
Relativity ODA LLCApplication SoftwareFirst Lien RevolverSOFR+6.50%5/12/2027— (46)(52)(6)(15)(19)
Renaissance Holding Corp.Education ServicesSecond Lien Term LoanL+7.00%12.19%5/29/20261,789 1,775 1,764 (6)
RumbleOn, Inc.Automotive RetailFirst Lien Term LoanSOFR+8.25%13.75%8/31/202644,602 43,077 41,815 (6)(11)(15)
RumbleOn, Inc.Automotive RetailFirst Lien Term LoanSOFR+8.25%13.75%8/31/202613,495 13,010 12,651 (6)(11)(15)
RumbleOn, Inc.Automotive RetailWarrants204,454 1,202 — (11)(15)
Salus Workers' Compensation, LLCDiversified Financial ServicesFirst Lien Term LoanSOFR+10.00%15.24%10/7/202625,558 24,711 24,791 (6)(15)
Salus Workers' Compensation, LLCDiversified Financial ServicesFirst Lien RevolverSOFR+10.00%10/7/2026— (103)(93)(6)(15)(19)
Salus Workers' Compensation, LLCDiversified Financial ServicesWarrants991,019 327 1,883 (15)
Scilex Holding CoBiotechnologyCommon Stock9,307 78 52 (11)
SCP Eye Care Services, LLCHealth Care ServicesSecond Lien Term LoanSOFR+8.75%14.00%10/7/20308,010 7,792 7,770 (6)(15)
SCP Eye Care Services, LLCHealth Care ServicesSecond Lien Term LoanSOFR+8.75%10/7/2030— (35)(71)(6)(15)(19)
SCP Eye Care Services, LLCHealth Care ServicesCommon Stock1,037 1,037 1,024 (15)
scPharmaceuticals Inc.PharmaceuticalsFirst Lien Term LoanSOFR+8.75%11.75%10/13/20275,212 4,973 5,034 (6)(15)
scPharmaceuticals Inc.PharmaceuticalsFirst Lien Term LoanSOFR+8.75%10/13/2027— — — (6)(15)(19)
scPharmaceuticals Inc.PharmaceuticalsFirst Lien Term LoanSOFR+8.75%10/13/2027— — — (6)(15)(19)
scPharmaceuticals Inc.PharmaceuticalsWarrants53,700 175 407 (15)
Seres Therapeutics, Inc.BiotechnologyFirst Lien Term LoanSOFR+7.88%12.95%4/27/20297,191 6,923 6,931 (6)(11)(15)
Seres Therapeutics, Inc.BiotechnologyFirst Lien Term LoanSOFR+7.88%12.88%4/27/20292,697 2,596 2,599 (6)(11)(15)
Seres Therapeutics, Inc.BiotechnologyFirst Lien Term LoanSOFR+7.88%4/27/2029— — — (6)(11)(15)(19)
Seres Therapeutics, Inc.BiotechnologyFirst Lien Term LoanSOFR+7.88%4/27/2029— — — (6)(11)(15)(19)
Seres Therapeutics, Inc.BiotechnologyWarrants58,210 182 202 (11)(15)
ShareThis, Inc.Application SoftwareWarrants345,452 367 — (15)
SiO2 Medical Products, Inc.Metal, Glass & Plastic ContainersFirst Lien Term Loan14.00%12/21/202654,730 41,705 25,997 (15)(20)
SiO2 Medical Products, Inc.Metal, Glass & Plastic ContainersFirst Lien Term Loan14.00%7/27/202314,993 11,582 13,923 (15)(20)
SiO2 Medical Products, Inc.Metal, Glass & Plastic ContainersFirst Lien Term Loan14.00%7/27/20234,813 3,935 4,034 (15)(19)(20)
SIO2 Medical Products, Inc.Metal, Glass & Plastic ContainersWarrants491 727 — (15)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
SM Wellness Holdings, Inc.Health Care ServicesFirst Lien Term LoanSOFR+4.75%9.97%4/17/2028$4,463 $3,780 $4,139 (6)(15)
SM Wellness Holdings, Inc.Health Care ServicesSecond Lien Term LoanSOFR+8.00%13.22%4/16/202912,034 11,220 9,387 (6)(15)
SonicWall US Holdings Inc.Technology DistributorsSecond Lien Term LoanL+7.50%12.69%5/18/20261,095 1,084 1,024 (6)(15)
Sorenson Communications, LLCCommunications EquipmentFirst Lien Term LoanL+5.50%10.69%3/17/20261,054 1,053 980 (6)
Sorrento Therapeutics, Inc.BiotechnologyCommon Stock66,000 139 24 (11)
Spanx, LLCApparel RetailFirst Lien Term LoanSOFR+5.50%10.70%11/20/20284,500 4,431 4,393 (6)(15)
Spanx, LLCApparel RetailFirst Lien RevolverL+5.25%10.35%11/18/2027907 862 837 (6)(15)(19)
SumUp Holdings Luxembourg S.À.R.L.Diversified Financial ServicesFirst Lien Term LoanE+8.50%11.97%3/10/2026€23,731 26,829 25,632 (6)(11)(15)
Superior Industries International, Inc.Auto Parts & EquipmentFirst Lien Term LoanSOFR+7.75%12.85%12/16/2028$49,645 48,611 49,128 (6)(15)
Supreme Fitness Group NY Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+7.00%12.18%12/31/202632,185 31,923 30,495 (6)(15)(21)
Supreme Fitness Group NY Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+7.00%12.18%12/31/20262,756 2,728 2,593 (6)(15)(19)(21)
Supreme Fitness Group NY Holdings, LLCLeisure FacilitiesFirst Lien Term LoanSOFR+7.00%12.18%12/31/20261,099 1,059 926 (6)(15)(19)(21)
Supreme Fitness Group NY Holdings, LLCLeisure FacilitiesFirst Lien RevolverSOFR+7.00%12.18%12/31/20261,552 1,539 1,471 (6)(15)(21)
SVP-Singer Holdings Inc.Home FurnishingsFirst Lien Term LoanL+6.75%12.29%7/28/202825,592 23,832 19,514 (6)(15)
Swordfish Merger Sub LLCAuto Parts & EquipmentSecond Lien Term LoanL+6.75%11.94%2/2/202612,500 12,480 11,681 (6)(15)
Tacala, LLCRestaurantsSecond Lien Term LoanL+7.50%12.69%2/4/202812,843 12,589 12,168 (6)
Tahoe Bidco B.V.Application SoftwareFirst Lien Term LoanL+6.00%11.15%9/29/202828,826 28,583 28,537 (6)(11)(15)
Tahoe Bidco B.V.Application SoftwareFirst Lien RevolverL+6.00%10/1/2027— (31)(24)(6)(11)(15)(19)
Tecta America Corp.Construction & EngineeringSecond Lien Term LoanSOFR+8.50%13.72%4/9/20294,755 4,677 4,529 (6)(15)
Telestream Holdings CorporationApplication SoftwareFirst Lien Term LoanSOFR+9.75%14.99%10/15/202523,483 23,239 22,919 (6)(15)
Telestream Holdings CorporationApplication SoftwareFirst Lien RevolverSOFR+9.75%14.93%10/15/20251,590 1,572 1,535 (6)(15)(19)
Ten-X LLCInteractive Media & ServicesFirst Lien Term LoanSOFR+6.00%11.09%5/26/202819,947 18,963 19,000 (6)(15)
TGNR HoldCo LLCIntegrated Oil & GasSubordinated Debt11.50%5/14/20264,984 4,887 4,810 (10)(11)(15)
THL Zinc Ventures LtdDiversified Metals & MiningFirst Lien Term Loan13.00%5/23/202650,419 49,787 49,809 (11)(15)
Thrasio, LLCBroadline RetailFirst Lien Term LoanSOFR+7.00%12.50%12/18/202646,832 45,609 41,919 (6)(15)
Thrasio, LLCBroadline RetailPreferred Equity10,616 120 55 (15)
Thrasio, LLCBroadline RetailPreferred Equity358,299 2,912 1,526 (15)
Thrasio, LLCBroadline RetailPreferred Equity60,862 1,207 795 (15)
Thrasio, LLCBroadline RetailPreferred Equity32,447 33,353 36,587 (15)
TIBCO Software Inc.Application SoftwareFirst Lien Term LoanSOFR+4.50%9.84%3/30/202917,213 15,952 16,141 (6)
Touchstone Acquisition, Inc.Health Care SuppliesFirst Lien Term LoanSOFR+6.00%11.20%12/29/202811,701 11,675 11,408 (6)(15)
Trinitas CLO XV DACMulti-Sector HoldingsCLO NotesL+7.45%12.72%4/22/20341,000 814 929 (6)(11)
Uniti Group LPOther Specialized REITsFixed Rate Bond6.50%2/15/20294,500 4,101 3,189 (11)
Uniti Group LPOther Specialized REITsFixed Rate Bond4.75%4/15/2028300 263 249 (11)
Virgin Pulse, Inc.Application SoftwareSecond Lien Term LoanSOFR+7.25%12.47%4/6/20291,540 1,239 1,279 (6)(15)
Win Brands Group LLCHousewares & SpecialtiesFirst Lien Term LoanL+15.00%21.22%1/23/20261,565 1,551 1,475 (6)(15)
WIN Brands Group LLCHousewares & SpecialtiesFirst Lien Term LoanL+15.00%21.22%1/23/20261,323 1,311 1,247 (6)(15)
Win Brands Group LLCHousewares & SpecialtiesWarrants4,871 46 136 (15)
Windstream Services II, LLCIntegrated Telecommunication ServicesFirst Lien Term LoanSOFR+6.25%11.45%9/21/202724,419 23,589 22,862 (6)
Windstream Services II, LLCIntegrated Telecommunication ServicesCommon Stock127,452 2,057 1,565 (15)
WP CPP Holdings, LLCAerospace & DefenseFirst Lien Term LoanL+3.75%9.03%4/30/202511,822 11,228 10,743 (6)
WPEngine, Inc.Application SoftwareFirst Lien Term LoanL+6.50%11.38%3/27/202635,853 35,764 35,495 (6)(15)
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, 2023
(dollar amounts in thousands)
(unaudited)











Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
WPEngine, Inc.Application SoftwareFirst Lien Term LoanL+6.50%12.00%3/27/2026$19,306 $19,258 $19,113 (6)(15)
WWEX Uni Topco Holdings, LLCAir Freight & LogisticsSecond Lien Term LoanSOFR+7.00%12.50%7/26/20295,000 4,925 4,025 (6)(15)
Zep Inc.Specialty ChemicalsSecond Lien Term LoanL+8.25%13.79%8/11/202519,578 19,551 13,693 (6)(15)
Zephyr Bidco LimitedSpecialized FinanceSecond Lien Term LoanSONIA+7.50%12.46%7/23/2026£20,000 25,857 23,270 (6)(11)(15)
Total Non-Control/Non-Affiliate Investments (190.4% of net assets)$2,985,679 $2,873,512 
Total Portfolio Investments (207.7% of net assets)$3,296,285 $3,135,619 
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares$5,193 $5,193 
Other cash accounts67,467 67,467 
Total Cash and Cash Equivalents and Restricted Cash (4.8% of net assets)$72,660 $72,660 
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (212.5% of net assets)$3,368,945 $3,208,279 
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, 2023
(dollar amounts in thousands)
(unaudited)












Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract$78,866 €71,658 8/10/2023JPMorgan Chase Bank, N.A.$531 
Foreign currency forward contract$71,438 £56,556 8/10/2023JPMorgan Chase Bank, N.A.(482)
$49 


Derivative InstrumentCompany ReceivesCompany PaysCounterpartyMaturity DateNotional AmountFair Value
Interest rate swapFixed 2.7%Floating 3-month LIBOR +1.658%Royal Bank of Canada1/15/2027$350,000$(39,567)
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, 2023
(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.
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
(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.

(4)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.
(5)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.
(6)The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to the secured overnight financing rate ("SOFR"), the London Interbank Offered Rate ("LIBOR" or "L"), the sterling overnight index average ("SONIA") 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 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, 2023, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 5.19%, the 90-day LIBOR at 5.54%, the 180-day LIBOR at 5.73%, the PRIME at 8.25%, the 30-day SOFR at 5.10%, the 90-day SOFR at 5.24%, the 180-day SOFR at 5.34%, the SONIA at 3.47%, the 30-day EURIBOR at 3.42%, the 90-day EURIBOR at 3.49% and the 180-day EURIBOR at 2.82%. Most loans include an interest floor, which generally ranges from 0% to 2%. 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, 2023 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, 2023, qualifying assets represented 73.7% of the Company's total assets and non-qualifying assets represented 26.3% of the Company's total assets.
(12)Income producing through payment of dividends or distributions.
(13)This investment represents Seller Earn Out Shares in Alvotech SA. 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, 2023, 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 on non-accrual status as of June 30, 2023.
(21)This investment was renamed during the three months ended March 31, 2023. For periods prior to March 31, 2023, this investment was referenced as PFNY Holdings, LLC.
(22)This investment represents a revenue interest financing term loan in which the Company receives periodic interest payments based on a percentage of revenues earned at the respective portfolio company over the life of the loan.

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
16
Consolidated Schedule of Investments
December 31, 2017
(dollar amounts in thousands)
(unaudited)



(9)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(10)Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2017, qualifying assets represented 77.3% of the Company's total assets and non-qualifying assets represented 22.7% of the Company's total assets.
(12)
The sale of a portion of this loan does not qualify for true sale accounting under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 860 - Transfers and Servicing ("ASC 860"), and therefore, the entire debt investment remains in the Consolidated Schedule of Investments. Accordingly, the fair value of the Company's debt investments includes $11.6 million related to the Company's secured borrowings. (See Note 14 in the accompanying notes to the Consolidated Financial Statements.)
(13)The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate based rate based on each respective credit agreement and the cash interest rate as of period end.
(14)With the exception of investments held by the Company’s wholly-owned subsidiaries that have each received a license from the U.S. Small Business Administration (“SBA”) to operate as a small business investment company (“SBIC”), each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(15)As defined in the 1940 Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the three months ended December 31, 2017 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(16)First Star Bermuda Aviation Limited and First Star Speir Aviation 1 Limited are wholly-owned holding companies formed by the Company in order to facilitate its investment strategy. In accordance with Accounting Standards Update ("ASU") 2013-08, the Company has deemed the holding companies to be investment companies under accounting principles generally accepted in the United States ("GAAP") and therefore deemed it appropriate to consolidate the financial results and financial position of the holding companies and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding companies are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(17)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(18)The Class A Mezzanine Secured Deferrable Floating Rate Notes bear interest at a rate of LIBOR plus the applicable margin as defined in the indenture. The Class A Mezzanine Secured Deferrable Floating Rate Notes and Class B Mezzanine Secured Deferrable Fixed Rate Notes are collectively referred to as the "mezzanine notes".
(19)In June 2017, the Company sold all of its investments in Eagle Hospital Physicians, LLC ("Eagle Physicians") in exchange for cash and the right to receive contingent payments in the future based on the performance of Eagle Physicians, which is referred to as an "earn-out" in the consolidated schedule of investments. Prior to the sale of its investments in Eagle Physicians, the Company may have been deemed to control Eagle Physicians within the meaning of the 1940 Act due to the fact that the Company owned greater than 25% of the voting securities in Eagle Physicians. After the sale and as of December 31, 2017, the Company no longer owns any of the voting securities in Eagle Physicians and is not deemed to control Eagle Physicians within the meaning of the 1940 Act.
(20)Payments on the Company's investment in Maverick Healthcare Group, LLC ("Maverick Healthcare") are currently past due. In May 2017, the Company entered into a forbearance agreement with Maverick Healthcare in which the Company has temporarily agreed not to take action against Maverick Healthcare. As of December 31, 2017, the forbearance agreement extends to February 28, 2018.
(21)
As of December 31, 2017, these investments are categorized as Level 2 within the fair value hierarchy established by FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"). All other investments are categorized as Level 3 as of December 31, 2017 and were valued using significant unobservable inputs.
(22)This investment was on cash non-accrual status as of December 31, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
(23)This investment was on PIK non-accrual status as of December 31, 2017. PIK non-accrual status is inclusive of other non-cash income, where applicable.
(24)As of December 31, 2017, payments on the Company's investment in TransTrade Operators, Inc. were past due.
(25)This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.
See notes to Consolidated Financial Statements.
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Control Investments(8)(9)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesCommon Stock829$— $— (15)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesPreferred Equity34,984,460 34,984 27,638 (15)
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien Term LoanL+5.00%8.68%2/28/2024$14,333 14,333 14,333 (6)(15)
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien RevolverL+5.00%2/28/2024— — — (6)(15)(19)
Dominion Diagnostics, LLCHealth Care ServicesCommon Stock30,031 15,222 4,946 (15)
OCSI Glick JV LLCMulti-Sector HoldingsSubordinated DebtL+4.50%6.30%10/20/202859,662 50,194 50,283 (6)(11)(14)(15)(19)
OCSI Glick JV LLCMulti-Sector HoldingsMembership Interest87.5 %— — (11)(14)(16)(19)
Senior Loan Fund JV I, LLCMulti-Sector HoldingsSubordinated DebtL+7.00%8.80%12/29/202896,250 96,250 96,250 (6)(11)(14)(15)(19)
Senior Loan Fund JV I, LLCMulti-Sector HoldingsMembership Interest87.5 %49,322 20,715 (11)(12)(14)(16)(19)
 Total Control Investments (17.2% of net assets)$260,305 $214,165 
Affiliate Investments(17)
Assembled Brands Capital LLCSpecialized FinanceFirst Lien RevolverL+6.75%10.42%10/17/2023$24,490 $24,490 $24,225 (6)(15)(19)
Assembled Brands Capital LLCSpecialized FinanceCommon Stock1,609,201 764 370 (15)
Assembled Brands Capital LLCSpecialized FinancePreferred Equity1,019,169 1,019 1,223 (15)
Assembled Brands Capital LLCSpecialized FinanceWarrants70,425 — — (15)
Caregiver Services, Inc.Health Care ServicesPreferred Equity1,080,399 1,080 378 (15)
 Total Affiliate Investments (2.1% of net assets)$27,353 $26,196 
Non-Control/Non-Affiliate Investments(18)
109 Montgomery Owner LLCReal Estate Operating CompaniesFirst Lien Term LoanL+7.00%9.80%2/2/2023$389 $387 $727 (6)(15)
109 Montgomery Owner LLCReal Estate Operating CompaniesFirst Lien Term LoanL+7.00%2/2/2023— (31)— (6)(15)(19)
A.T. Holdings II SÀRLBiotechnologyFirst Lien Term Loan10.50%12/22/202233,997 33,960 34,891 (11)(15)
Access CIG, LLCDiversified Support ServicesSecond Lien Term LoanL+7.75%10.82%2/27/202620,000 19,927 19,075 (6)
Accupac, Inc.Personal ProductsFirst Lien Term LoanSOFR+5.50%9.12%1/16/202615,976 15,686 15,944 (6)(15)
Accupac, Inc.Personal ProductsFirst Lien Term LoanSOFR+5.50%1/16/2026— — (6)(6)(15)(19)
Accupac, Inc.Personal ProductsFirst Lien RevolverSOFR+5.50%9.14%1/16/2026500 462 495 (6)(15)(19)
Acquia Inc.Application SoftwareFirst Lien Term LoanL+7.00%9.63%10/31/202527,349 27,038 27,158 (6)(15)
Acquia Inc.Application SoftwareFirst Lien RevolverL+7.00%10.64%10/31/2025914 890 898 (6)(15)(19)
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.25%9.80%12/18/202514,685 14,217 14,431 (6)(15)
ADC Therapeutics SABiotechnologyFirst Lien Term LoanSOFR+7.50%11.20%8/15/20296,589 6,256 6,262 (6)(11)(15)
ADC Therapeutics SABiotechnologyFirst Lien Term LoanSOFR+7.50%8/15/2029— (38)(37)(6)(11)(15)(19)
ADC Therapeutics SABiotechnologyWarrants28,948 174 73 (11)(15)
Aden & Anais Merger Sub, Inc.Apparel, Accessories & Luxury GoodsCommon Stock51,645 5,165 — (15)
AI Sirona (Luxembourg) Acquisition S.a.r.l.PharmaceuticalsSecond Lien Term LoanE+7.25%7.94%9/28/2026€24,838 27,752 22,143 (6)(11)(15)
AIP RD Buyer Corp.DistributorsSecond Lien Term LoanSOFR+7.75%10.88%12/21/2029$14,414 14,154 13,910 (6)(15)
AIP RD Buyer Corp.DistributorsCommon Stock14,410 1,352 1,291 (15)
AirStrip Technologies, Inc.Application SoftwareWarrants5,715 90 — (15)
All Web Leads, Inc.AdvertisingFirst Lien Term LoanL+8.50%11.64%12/29/202323,338 22,057 22,141 (6)(15)
17
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, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Altice France S.A.Integrated Telecommunication ServicesFixed Rate Bond5.50%10/15/2029$4,050 $3,518 $3,057 (11)
Alvogen Pharma US, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+7.50%11.20%6/30/202513,134 12,847 13,068 (6)(15)
Alvotech Holdings S.A.BiotechnologyFixed Rate Bond10.00%6/24/202524,043 23,747 23,923 (11)(15)
Alvotech Holdings S.A.BiotechnologyFixed Rate Bond10.00%6/24/202523,522 23,264 23,404 (11)(15)
Alvotech Holdings S.A.BiotechnologyCommon Stock587,930 5,308 3,974 (11)
Alvotech Holdings S.A.BiotechnologyCommon Stock124,780 485 212 (11)(13)(15)
American Auto Auction Group, LLCConsumer FinanceSecond Lien Term LoanSOFR+8.75%12.30%1/2/202914,760 14,492 13,284 (6)(15)
American Tire Distributors, Inc.DistributorsFirst Lien Term LoanL+6.25%9.03%10/20/20289,895 9,772 9,293 (6)
Amplify Finco Pty Ltd.Movies & EntertainmentFirst Lien Term LoanL+4.25%7.92%11/26/202615,220 13,973 14,687 (6)(11)(15)
Amplify Finco Pty Ltd.Movies & EntertainmentSecond Lien Term LoanL+8.00%11.67%11/26/202712,500 12,188 11,958 (6)(11)(15)
Anastasia Parent, LLCPersonal ProductsFirst Lien Term LoanL+3.75%7.42%8/11/20252,736 2,260 2,189 (6)
Ankura Consulting Group LLCResearch & Consulting ServicesSecond Lien Term LoanL+8.00%10.78%3/19/20294,346 4,281 3,813 (6)(15)
Apptio, Inc.Application SoftwareFirst Lien Term LoanL+6.00%8.46%1/10/202534,458 33,737 33,738 (6)(15)
Apptio, Inc.Application SoftwareFirst Lien RevolverL+6.00%8.46%1/10/2025892 863 846 (6)(15)(19)
APX Group Inc.Electrical Components & EquipmentFixed Rate Bond5.75%7/15/20292,075 1,733 1,645 (11)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanE+7.00%8.00%7/14/2026€1,964 2,176 1,927 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanSONIA+7.00%9.19%7/14/2026£18,636 23,139 20,826 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanL+5.75%8.81%7/14/2026$10,519 10,357 10,328 (6)(11)(15)
Ardonagh Midco 3 PLCInsurance BrokersFirst Lien Term LoanSONIA+5.75%7/14/2026£— (44)— (6)(11)(15)(19)
ASP Unifrax Holdings, Inc.Trading Companies & DistributorsFixed Rate Bond7.50%9/30/2029$5,500 5,408 3,641 
ASP Unifrax Holdings, Inc.Trading Companies & DistributorsFixed Rate Bond5.25%9/30/20282,500 2,220 1,926 
Associated Asphalt Partners, LLCConstruction MaterialsFirst Lien Term LoanL+5.25%8.06%4/5/20242,501 2,331 1,934 (6)
Astra Acquisition Corp.Application SoftwareFirst Lien Term LoanL+5.25%8.37%10/25/20285,640 5,482 4,822 (6)
athenahealth Group Inc.Health Care TechnologyPreferred Equity18,635 18,264 16,575 (15)
Athenex, Inc.PharmaceuticalsFirst Lien Term Loan11.00%6/19/202613,346 12,929 12,812 (11)(15)
Athenex, Inc.PharmaceuticalsFirst Lien Term Loan5/31/20318,309 8,264 8,309 (11)(15)(21)
Athenex, Inc.PharmaceuticalsWarrants328,149 973 16 (11)(15)
Aurora Lux Finco S.À.R.L.Airport ServicesFirst Lien Term LoanL+6.00%8.78%12/24/202622,425 22,086 21,326 (6)(11)(15)
The AveryReal Estate Operating CompaniesFirst Lien Term LoanL+7.30%10.44%2/17/202315,674 15,605 15,682 (6)(15)
The AveryReal Estate Operating CompaniesSubordinated Debt Term LoanL+12.50%16.17%2/17/20233,789 3,774 3,800 (6)(15)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanL+5.00%8.12%6/11/20272,546 2,503 2,395 (6)(15)(19)
BAART Programs, Inc.Health Care ServicesSecond Lien Term LoanL+8.50%11.62%6/11/20287,166 7,059 6,915 (6)(15)
BAART Programs, Inc.Health Care ServicesSecond Lien Term LoanL+8.50%11.62%6/11/20284,227 4,070 3,839 (6)(15)(19)
Berner Food & Beverage, LLCSoft DrinksFirst Lien Term LoanL+5.50%8.31%7/30/202733,078 32,612 32,053 (6)(15)
Berner Food & Beverage, LLCSoft DrinksFirst Lien RevolverPRIME+4.50%10.75%7/30/20261,702 1,660 1,617 (6)(15)(19)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan10.25%4/19/20275,322 5,111 5,114 (11)(15)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan10.25%4/19/2027— — — (11)(15)(19)
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan9/30/20322,353 2,353 2,353 (11)(15)(21)
18
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, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
BioXcel Therapeutics, Inc.PharmaceuticalsFirst Lien Term Loan9/30/2032$— $— $— (11)(15)(19)(21)
BioXcel Therapeutics, Inc.PharmaceuticalsWarrants21,177 125 98 (11)(15)
Blackhawk Network Holdings, Inc.Data Processing & Outsourced ServicesSecond Lien Term LoanL+7.00%9.50%6/15/202630,625 30,276 29,017 (6)
Blumenthal Temecula, LLCAutomotive RetailFirst Lien Term Loan9.00%9/24/20233,979 3,980 3,960 (15)
Blumenthal Temecula, LLCAutomotive RetailPreferred Equity1,293,324 1,293 1,280 (15)
Blumenthal Temecula, LLCAutomotive RetailPreferred Equity298,460 298 295 (15)
Blumenthal Temecula, LLCAutomotive RetailCommon Stock298,460 298 349 (15)
Cadence Aerospace, LLCAerospace & DefenseFirst Lien Term LoanL+6.50%9.31%2.00%11/14/202314,294 13,471 13,143 (6)(15)
Carvana Co.Automotive RetailFixed Rate Bond5.63%10/1/20256,700 5,825 4,724 (11)
CCO Holdings LLCCable & SatelliteFixed Rate Bond4.50%5/1/20322,097 1,746 1,603 (11)
CircusTrix Holdings, LLCLeisure FacilitiesFirst Lien Term LoanL+5.50%8.62%7/16/202310,692 10,004 10,209 (6)(15)
CITGO Holding, Inc.Oil & Gas Refining & MarketingFixed Rate Bond9.25%8/1/20247,857 7,857 7,807 
CITGO Petroleum Corp.Oil & Gas Refining & MarketingFirst Lien Term LoanL+6.25%9.37%3/28/2024795 770 797 (6)
Clear Channel Outdoor Holdings, Inc.AdvertisingFixed Rate Bond7.50%6/1/20294,311 4,311 3,132 (11)
Clear Channel Outdoor Holdings, Inc.AdvertisingFixed Rate Bond5.13%8/15/20271,374 1,229 1,163 (11)
Clear Channel Outdoor Holdings, Inc.AdvertisingFixed Rate Bond7.75%4/15/2028676 648 512 (11)
Condor Merger Sub Inc.Systems SoftwareFixed Rate Bond7.38%2/15/20308,420 8,243 6,900 
Continental Intermodal Group LPOil & Gas Storage & TransportationFirst Lien Term LoanL+8.50%11.62%1/28/202522,537 21,642 20,396 (6)(15)
Continental Intermodal Group LPOil & Gas Storage & TransportationWarrants648 457 (15)
Convergeone Holdings, Inc.IT Consulting & Other ServicesFirst Lien Term LoanL+5.00%8.12%1/4/202611,913 11,697 8,596 (6)
Conviva Inc.Application SoftwarePreferred Equity417,851 605 894 (15)
CorEvitas, LLCHealth Care TechnologyFirst Lien Term LoanSOFR+5.75%8.88%12/13/202513,712 13,554 13,583 (6)(15)
CorEvitas, LLCHealth Care TechnologyFirst Lien RevolverPRIME+4.75%11.00%12/13/2025916 898 898 (6)(15)(19)
CorEvitas, LLCHealth Care TechnologyCommon Stock1,099 690 2,340 (15)
Covetrus, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+5.00%7.65%10/13/202910,336 9,716 9,681 (6)
Coyote Buyer, LLCSpecialty ChemicalsFirst Lien Term LoanL+6.00%8.81%2/6/202618,200 17,790 17,843 (6)(15)
Coyote Buyer, LLCSpecialty ChemicalsFirst Lien RevolverL+6.00%2/6/2025— (13)(26)(6)(15)(19)
Delivery Hero FinCo LLCInternet & Direct Marketing RetailFirst Lien Term LoanSOFR+5.75%8.49%8/12/20274,988 4,882 4,757 (6)(11)
Delta Leasing SPV II LLCSpecialized FinanceSubordinated Debt Term Loan10.00%8/31/20294,183 4,183 4,183 (11)(15)(19)
Delta Leasing SPV II LLCSpecialized FinancePreferred Equity419 419 419 (11)(15)
Delta Leasing SPV II LLCSpecialized FinanceCommon Stock2 2 2 (11)(15)
Delta Leasing SPV II LLCSpecialized FinanceWarrants31 — — (11)(15)
Delta Topco, Inc.Systems SoftwareSecond Lien Term LoanL+7.25%9.34%12/1/20286,680 6,647 5,934 (6)
Dialyze Holdings, LLCHealth Care EquipmentFirst Lien Term LoanL+9.00%12.67%2.00%8/4/202624,396 23,083 22,993 (6)(15)
Dialyze Holdings, LLCHealth Care EquipmentFirst Lien Term LoanL+9.00%8/4/2026— (135)(129)(6)(15)(19)
Dialyze Holdings, LLCHealth Care EquipmentWarrants5,403,823 1,405 1,297 (15)
Digital.AI Software Holdings, Inc.Application SoftwareFirst Lien Term LoanL+7.00%9.91%2/10/20279,902 9,599 9,793 (6)(15)
Digital.AI Software Holdings, Inc.Application SoftwareFirst Lien RevolverL+6.50%9.41%2/10/2027251 228 239 (6)(15)(19)
19
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, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
DirecTV Financing, LLCCable & SatelliteFirst Lien Term LoanL+5.00%8.12%8/2/2027$19,242 $18,970 $17,973 (6)
DTI Holdco, Inc.Research & Consulting ServicesFirst Lien Term LoanSOFR+4.75%7.33%4/26/20295,000 4,906 4,760 (6)
Eagleview Technology CorporationApplication SoftwareSecond Lien Term LoanL+7.50%11.17%8/14/20268,974 8,884 8,503 (6)(15)
EOS Fitness Opco Holdings, LLCLeisure FacilitiesPreferred Equity488 488 966 (15)
EOS Fitness Opco Holdings, LLCLeisure FacilitiesCommon Stock12,500 — — (15)
Establishment Labs Holdings Inc.Health Care TechnologyFirst Lien Term Loan3.00%6.00%4/21/202710,418 10,275 10,231 (11)(15)
Establishment Labs Holdings Inc.Health Care TechnologyFirst Lien Term Loan3.00%4/21/2027— 3 — (11)(15)(19)
Fairbridge Strategic Capital Funding LLCReal Estate Operating CompaniesFirst Lien Term Loan9.00%12/24/202827,850 27,850 27,850 (15)(19)(20)
Fairbridge Strategic Capital Funding LLCReal Estate Operating CompaniesWarrants2,500 — 3 (11)(15)(20)
FINThrive Software Intermediate Holdings, Inc.Health Care TechnologySecond Lien Term LoanL+6.75%9.87%12/17/202925,061 24,685 21,646 (6)
Fortress Biotech, Inc.BiotechnologyFirst Lien Term Loan11.00%8/27/20259,466 9,071 9,008 (11)(15)
Fortress Biotech, Inc.BiotechnologyWarrants331,200 405 66 (11)(15)
Frontier Communications Holdings, LLCIntegrated Telecommunication ServicesFixed Rate Bond6.00%1/15/20304,881 4,420 3,845 (11)
GKD Index Partners, LLCSpecialized FinanceFirst Lien Term LoanL+7.00%10.67%6/29/202325,128 24,915 24,851 (6)(15)
GKD Index Partners, LLCSpecialized FinanceFirst Lien RevolverL+7.00%10.60%6/29/20231,280 1,268 1,262 (6)(15)(19)
Global Medical Response, Inc.Health Care ServicesFirst Lien Term LoanL+4.25%7.37%3/14/20255,572 5,435 4,848 (6)
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise LinesFirst Lien Term LoanSOFR+8.00%11.04%6/21/202714,311 14,041 14,060 (6)(15)
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise LinesFirst Lien Term LoanSOFR+8.00%6/21/2027— (54)(50)(6)(15)(19)
Grove Hotel Parcel Owner, LLCHotels, Resorts & Cruise LinesFirst Lien RevolverSOFR+8.00%6/21/2027— (27)(25)(6)(15)(19)
Harbor Purchaser Inc.Education ServicesFirst Lien Term LoanSOFR+5.25%8.38%4/9/20299,392 9,080 8,582 (6)
iCIMs, Inc.Application SoftwareFirst Lien Term LoanSOFR+6.75%9.49%8/18/202819,203 18,874 18,867 (6)(15)
iCIMs, Inc.Application SoftwareFirst Lien Term LoanSOFR+6.75%8/18/2028— — — (6)(15)(19)
iCIMs, Inc.Application SoftwareFirst Lien RevolverSOFR+6.75%8/18/2028— (31)(32)(6)(15)(19)
Immucor, Inc.Health Care SuppliesFirst Lien Term LoanL+5.75%9.42%7/2/20258,569 8,401 8,407 (6)(15)
Immucor, Inc.Health Care SuppliesSecond Lien Term LoanL+8.00%11.67%3.50%10/2/202522,619 22,162 22,275 (6)(15)
Impel Neuropharma, Inc.Health Care TechnologyFirst Lien Term Loan2/15/203113,083 13,083 13,083 (15)(21)
Impel Neuropharma, Inc.Health Care TechnologyFirst Lien Term LoanSOFR+8.75%12.45%3/17/202712,161 11,944 11,942 (6)(15)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyFirst Lien Term Loan11.00%1/26/20276,817 6,553 6,408 (11)(15)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyFirst Lien Term Loan11.00%1/26/2027— — — (11)(15)(19)
Innocoll Pharmaceuticals LimitedHealth Care TechnologyWarrants56,999 135 609 (11)(15)
Integral Development CorporationOther Diversified Financial ServicesWarrants1,078,284 113 — (15)
Inventus Power, Inc.Electrical Components & EquipmentFirst Lien Term LoanSOFR+5.00%8.55%3/29/202418,660 18,567 18,134 (6)(15)
Inventus Power, Inc.Electrical Components & EquipmentSecond Lien Term LoanL+8.50%12.17%9/29/202413,674 13,514 13,154 (6)(15)
INW Manufacturing, LLCPersonal ProductsFirst Lien Term LoanL+5.75%9.42%3/25/202735,625 34,806 31,528 (6)(15)
IPC Corp.Application SoftwareFirst Lien Term LoanL+6.50%9.44%10/1/202634,357 33,612 32,639 (6)(15)
Ivanti Software, Inc.Application SoftwareSecond Lien Term LoanL+7.25%10.33%12/1/202810,247 10,196 7,702 (6)
Jazz Acquisition, Inc.Aerospace & DefenseFirst Lien Term LoanL+7.50%10.62%1/29/202736,234 35,170 36,392 (6)(15)
Jazz Acquisition, Inc.Aerospace & DefenseSecond Lien Term LoanL+8.00%11.12%6/18/2027528 478 481 (6)
20
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, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Kings Buyer, LLCEnvironmental & Facilities ServicesFirst Lien Term LoanL+6.50%10.17%10/29/2027$13,623 $13,487 $13,351 (6)(15)
Kings Buyer, LLCEnvironmental & Facilities ServicesFirst Lien RevolverL+6.50%10.17%10/29/2027329 311 292 (6)(15)(19)
LaserShip, Inc.Air Freight & LogisticsSecond Lien Term LoanL+7.50%10.38%5/7/20292,394 2,370 1,867 (6)(15)
Lift Brands Holdings, Inc.Leisure FacilitiesCommon Stock2,000,000 1,399 — (15)
Lightbox Intermediate, L.P.Real Estate ServicesFirst Lien Term LoanL+5.00%8.67%5/9/202641,008 40,243 39,573 (6)(15)
Liquid Environmental Solutions CorporationEnvironmental & Facilities ServicesSecond Lien Term LoanL+8.50%11.38%11/30/20264,357 4,285 4,226 (6)(15)
Liquid Environmental Solutions CorporationEnvironmental & Facilities ServicesSecond Lien Term LoanL+8.50%11.38%11/30/20262,370 2,323 2,265 (6)(15)(19)
Liquid Environmental Solutions CorporationEnvironmental & Facilities ServicesCommon Stock451 451 451 (15)
LSL Holdco, LLCHealth Care DistributorsFirst Lien Term LoanL+6.00%9.12%1/31/202819,236 18,894 18,707 (6)(15)
LSL Holdco, LLCHealth Care DistributorsFirst Lien RevolverL+6.00%9.12%1/31/20281,710 1,672 1,651 (6)(15)(19)
LTI Holdings, Inc.Electronic ComponentsSecond Lien Term LoanL+6.75%9.87%9/6/20262,140 2,092 1,890 (6)
Marinus Pharmaceuticals, Inc.PharmaceuticalsFirst Lien Term Loan11.50%5/11/202617,203 16,954 16,644 (11)(15)
Marinus Pharmaceuticals, Inc.PharmaceuticalsFirst Lien Term Loan11.50%5/11/2026— — — (11)(15)(19)
Mesoblast, Inc.BiotechnologyFirst Lien Term Loan8.00%1.75%11/19/20267,215 6,650 6,440 (11)(15)
Mesoblast, Inc.BiotechnologyFirst Lien Term Loan8.00%1.75%11/19/2026— 1 — (11)(15)(19)
Mesoblast, Inc.BiotechnologyWarrants209,588 480 170 (11)(15)
MHE Intermediate Holdings, LLCDiversified Support ServicesFirst Lien Term LoanSOFR+6.00%9.50%7/21/202718,390 18,088 17,691 (6)(15)
MHE Intermediate Holdings, LLCDiversified Support ServicesFirst Lien RevolverSOFR+6.00%7/21/2027— (23)(54)(6)(15)(19)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien Term LoanL+7.00%10.64%1.50%2/14/202545,665 44,689 44,523 (6)(15)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien RevolverL+8.00%2/14/2025— (54)(100)(6)(15)(19)
Mosaic Companies, LLCHome Improvement RetailFirst Lien Term LoanL+6.75%9.89%7/2/202646,499 45,802 45,421 (6)(15)
MRI Software LLCApplication SoftwareFirst Lien Term LoanL+5.50%9.17%2/10/202629,565 29,128 28,734 (6)(15)
MRI Software LLCApplication SoftwareFirst Lien Term LoanL+5.50%2/10/2026— (12)(96)(6)(15)(19)
MRI Software LLCApplication SoftwareFirst Lien RevolverL+5.50%2/10/2026— (13)(51)(6)(15)(19)
Navisite, LLCData Processing & Outsourced ServicesSecond Lien Term LoanL+8.50%12.17%12/30/202622,560 22,241 21,524 (6)(15)
NeuAG, LLCFertilizers & Agricultural ChemicalsFirst Lien Term LoanL+10.50%14.17%9/11/202450,459 49,301 51,972 (6)(15)
NFP Corp.Other Diversified Financial ServicesFixed Rate Bond6.88%8/15/202810,191 9,773 7,966 
NN, Inc.Industrial MachineryFirst Lien Term LoanL+6.88%9.99%9/19/202658,713 57,655 56,805 (6)(11)(15)
OEConnection LLCApplication SoftwareFirst Lien Term LoanL+4.00%7.12%9/25/20263,323 3,162 3,207 (6)
OEConnection LLCApplication SoftwareSecond Lien Term LoanL+7.00%10.05%9/25/20277,519 7,389 7,237 (6)(15)
OTG Management, LLCAirport ServicesFirst Lien Term LoanL+2.00%5.08%8.00%9/2/202521,557 21,267 21,557 (6)(15)
OTG Management, LLCAirport ServicesFirst Lien Term LoanL+2.00%9/2/2025— (31)— (6)(15)(19)
P & L Development, LLCPharmaceuticalsFixed Rate Bond7.75%11/15/20257,776 7,820 5,846 
Park Place Technologies, LLCInternet Services & InfrastructureFirst Lien Term LoanSOFR+5.00%8.13%11/10/20279,850 9,460 9,374 (6)
Performance Health Holdings, Inc.Health Care DistributorsFirst Lien Term LoanL+6.00%8.88%7/12/202717,976 17,690 17,537 (6)(15)
PFNY Holdings, LLCLeisure FacilitiesFirst Lien Term LoanL+7.00%9.28%12/31/202626,154 25,712 25,893 (6)(15)
21
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, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
PFNY Holdings, LLCLeisure FacilitiesFirst Lien Term LoanL+7.00%9.25%12/31/2026$2,228 $2,186 $2,203 (6)(15)(19)
PFNY Holdings, LLCLeisure FacilitiesFirst Lien RevolverL+7.00%12/31/2026— (21)(13)(6)(15)(19)
Planview Parent, Inc.Application SoftwareSecond Lien Term LoanL+7.25%10.92%12/18/202828,627 28,198 27,482 (6)(15)
Pluralsight, LLCApplication SoftwareFirst Lien Term LoanL+8.00%10.68%4/6/202748,689 47,951 47,155 (6)(15)
Pluralsight, LLCApplication SoftwareFirst Lien RevolverL+8.00%4/6/2027— (53)(111)(6)(15)(19)
PRGX Global, Inc.Data Processing & Outsourced ServicesFirst Lien Term LoanL+6.75%10.42%3/3/202633,775 32,931 33,116 (6)(15)
PRGX Global, Inc.Data Processing & Outsourced ServicesFirst Lien RevolverL+6.75%3/3/2026— (34)(49)(6)(15)(19)
PRGX Global, Inc.Data Processing & Outsourced ServicesCommon Stock80,515 79 89 (15)
Profrac Holdings II, LLCIndustrial MachineryFirst Lien Term LoanSOFR+8.50%10.01%3/4/202523,275 22,722 22,810 (6)(15)
Project Boost Purchaser, LLCApplication SoftwareSecond Lien Term LoanL+8.00%11.12%5/31/20275,250 5,168 5,047 (6)(15)
Quantum Bidco LimitedFood DistributorsFirst Lien Term LoanSONIA+6.00%8.39%1/31/2028£3,501 4,646 3,367 (6)(11)(15)
QuorumLabs, Inc.Application SoftwarePreferred Equity64,887,669 375 — (15)
Radiology Partners, Inc.Health Care DistributorsFirst Lien Term LoanL+4.25%7.33%7/9/2025$3,400 3,202 2,880 (6)
Radiology Partners, Inc.Health Care DistributorsFixed Rate Bond9.25%2/1/20284,755 4,720 3,109 
Relativity ODA LLCApplication SoftwareFirst Lien Term LoanL+7.50%10.59%5/12/202724,692 24,265 24,101 (6)(15)
Relativity ODA LLCApplication SoftwareFirst Lien RevolverL+6.50%5/12/2027— (43)(64)(6)(15)(19)
Renaissance Holding Corp.Diversified BanksSecond Lien Term LoanL+7.00%10.12%5/29/20263,542 3,515 3,402 (6)
RP Escrow Issuer LLCHealth Care DistributorsFixed Rate Bond5.25%12/15/20251,325 1,218 1,097 
RumbleOn, Inc.Automotive RetailFirst Lien Term LoanL+8.25%11.92%8/31/202637,656 35,775 36,187 (6)(11)(15)
RumbleOn, Inc.Automotive RetailFirst Lien Term LoanL+8.25%11.92%8/31/202611,393 10,583 10,760 (6)(11)(15)(19)
RumbleOn, Inc.Automotive RetailWarrants164,660 1,202 74 (11)(15)
Sabert CorporationMetal & Glass ContainersFirst Lien Term LoanL+4.50%7.63%12/10/20261,691 1,610 1,623 (6)
ShareThis, Inc.Application SoftwareWarrants345,452 367 — (15)
SiO2 Medical Products, Inc.Metal & Glass ContainersFirst Lien Term Loan5.50%8.50%12/21/202646,121 45,413 45,295 (15)
SIO2 Medical Products, Inc.Metal & Glass ContainersWarrants415 681 681 (15)
SM Wellness Holdings, Inc.Health Care ServicesSecond Lien Term LoanL+8.00%10.74%4/16/20299,109 8,972 8,289 (6)(15)
SonicWall US Holdings Inc.Technology DistributorsSecond Lien Term LoanL+7.50%10.48%5/18/20263,195 3,163 2,997 (6)(15)
Sorrento Therapeutics, Inc.BiotechnologyCommon Stock50,000 197 79 (11)
Spanx, LLCApparel RetailFirst Lien Term LoanL+5.25%8.30%11/20/20284,534 4,455 4,427 (6)(15)
Spanx, LLCApparel RetailFirst Lien RevolverL+5.25%8.03%11/18/2027866 813 796 (6)(15)(19)
SPX Flow, Inc.Industrial MachineryFirst Lien Term LoanSOFR+4.50%7.63%4/5/20291,500 1,410 1,393 (6)
SumUp Holdings Luxembourg S.À.R.L.Other Diversified Financial ServicesFirst Lien Term LoanE+8.50%10.00%3/10/2026£16,911 19,414 16,360 (6)(11)(15)
Sunland Asphalt & Construction, LLCConstruction & EngineeringFirst Lien Term LoanL+6.00%8.88%1/13/2026$42,618 41,654 41,723 (6)(15)
Supermoose Borrower, LLCApplication SoftwareFirst Lien Term LoanL+3.75%7.42%8/29/20253,466 3,141 3,056 (6)
SVP-Singer Holdings Inc.Home FurnishingsFirst Lien Term LoanL+6.75%10.42%7/28/202820,766 19,550 18,188 (6)(15)
Swordfish Merger Sub LLCAuto Parts & EquipmentSecond Lien Term LoanL+6.75%9.81%2/2/202612,500 12,474 11,469 (6)(15)
Tacala, LLCRestaurantsSecond Lien Term LoanL+7.50%10.62%2/4/20289,448 9,338 8,692 (6)
Tahoe Bidco B.V.Application SoftwareFirst Lien Term LoanL+6.00%8.68%9/29/202823,215 22,815 22,843 (6)(11)(15)
Tahoe Bidco B.V.Application SoftwareFirst Lien RevolverL+6.00%10/1/2027— (29)(28)(6)(11)(15)(19)
Tecta America Corp.Construction & EngineeringSecond Lien Term LoanL+8.50%11.62%4/9/20295,203 5,125 5,034 (6)(15)
22
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, 20172022
(dollar amounts in thousands)



Portfolio CompanyIndustryType of Investment (1)(2)(3)(4)IndexSpreadCash Interest Rate (5)(6)PIKMaturity DateSharesPrincipal (7)CostFair ValueNotes
Telestream Holdings CorporationApplication SoftwareFirst Lien Term LoanSOFR+9.25%12.11%10/15/2025$18,323 $17,956 $17,865 (6)(15)
Telestream Holdings CorporationApplication SoftwareFirst Lien RevolverSOFR+9.25%12.20%10/15/20251,231 1,210 1,187 (6)(15)(19)
TerSera Therapeutics LLCPharmaceuticalsSecond Lien Term LoanL+9.50%13.17%3/30/202629,663 29,352 29,031 (6)(15)
TerSera Therapeutics LLCPharmaceuticalsCommon Stock668,879 2,028 4,077 (15)
TGNR HoldCo LLCIntegrated Oil & GasSubordinated Debt11.50%5/14/20264,984 4,866 4,872 (10)(11)(15)
Thrasio, LLCInternet & Direct Marketing RetailFirst Lien Term LoanL+7.00%11.17%12/18/202637,494 36,569 35,807 (6)(15)
Thrasio, LLCInternet & Direct Marketing RetailPreferred Equity8,434 101 69 (15)
Thrasio, LLCInternet & Direct Marketing RetailPreferred Equity284,650 2,409 2,320 (15)
Thrasio, LLCInternet & Direct Marketing RetailPreferred Equity48,352 979 979 (15)
Thrasio, LLCInternet & Direct Marketing RetailPreferred Equity23,201 22,986 26,487 (15)(19)
TIBCO Software Inc.Application SoftwareFirst Lien Term LoanSOFR+4.50%8.15%3/30/202912,032 10,949 10,827 (6)
Touchstone Acquisition, Inc.Health Care SuppliesFirst Lien Term LoanL+6.00%9.12%12/29/20286,016 5,908 5,895 (6)(15)
Uniti Group LPSpecialized REITsFixed Rate Bond6.50%2/15/20294,500 4,060 3,026 (11)
Uniti Group LPSpecialized REITsFixed Rate Bond4.75%4/15/2028300 258 238 (11)
Win Brands Group LLCHousewares & SpecialtiesFirst Lien Term LoanL+15.00%19.64%1/23/20262,316 2,293 2,264 (6)(15)
Win Brands Group LLCHousewares & SpecialtiesWarrants3,621 — 192 (15)
Windstream Services II, LLCIntegrated Telecommunication ServicesFirst Lien Term LoanL+6.25%9.37%9/21/202725,499 24,632 23,204 (6)
Windstream Services II, LLCIntegrated Telecommunication ServicesCommon Stock18,032 216 296 (15)
Windstream Services II, LLCIntegrated Telecommunication ServicesWarrants109,420 1,842 1,799 (15)
WP CPP Holdings, LLCAerospace & DefenseFirst Lien Term LoanL+3.75%6.56%4/30/20257,564 6,989 6,795 (6)
WP CPP Holdings, LLCAerospace & DefenseSecond Lien Term LoanL+7.75%10.56%4/30/20266,000 5,855 5,070 (6)(15)
WPEngine, Inc.Application SoftwareFirst Lien Term LoanL+6.00%10.19%3/27/202640,536 39,947 40,131 (6)(15)
WWEX Uni Topco Holdings, LLCAir Freight & LogisticsSecond Lien Term LoanL+7.00%10.67%7/26/20295,000 4,925 4,538 (6)(15)
Zayo Group Holdings, Inc.Alternative CarriersFixed Rate Bond4.00%3/1/2027250 212 201 
Zep Inc.Specialty ChemicalsSecond Lien Term LoanL+8.25%11.92%8/11/202519,578 19,542 16,152 (6)(15)
Zephyr Bidco LimitedSpecialized FinanceSecond Lien Term LoanSONIA+7.50%9.72%7/23/2026£18,000 23,804 16,552 (6)(11)(15)
Total Non-Control/Non-Affiliate Investments (180.9% of net assets)$2,330,096 $2,253,750 
Total Portfolio Investments (200.2% of net assets)$2,617,754 $2,494,111 
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares$5,261 $5,261 
Other cash accounts21,103 21,103 
Total Cash and Cash Equivalents and Restricted Cash (2.1% of net assets)$26,364 $26,364 
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (202.4% of net assets)$2,644,118 $2,520,475 


23
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, 20172022
(dollar amounts in thousands)



Derivative InstrumentNotional Amount to be PurchasedNotional Amount to be SoldMaturity DateCounterpartyCumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract$43,179 €41,444 11/10/2022JPMorgan Chase Bank, N.A.$2,466 
Foreign currency forward contract$45,692 £37,033 11/10/2022JPMorgan Chase Bank, N.A.4,323 
$6,789 

Derivative InstrumentCompany ReceivesCompany PaysCounterpartyMaturity DateNotional AmountFair Value
Interest rate swapFixed 2.7%Floating 3-month LIBOR +1.658%Royal Bank of Canada1/15/2027$350,000$(41,969)

24
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, 20172022
(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
 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.
(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.
Oaktree Specialty Lending Corporation(4)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.
Consolidated Schedule(5)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.
(6)The interest rate on the principal balance outstanding for most of Investments
the floating rate loans is indexed to LIBOR, SOFR, SONIA 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 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 September 30, 20172022, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 3.12%, the 90-day LIBOR at 3.67%, the 180-day LIBOR at 4.17%, the 360-day LIBOR at 4.78%, the PRIME at 6.25%, the 30-day SOFR at 3.03%, the 90-day SOFR at 3.55%, the SONIA at 1.69%, the 30-day EURIBOR at 0.69%, the 90-day EURIBOR at 0.99% 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.
(dollar amounts(7)Principal includes accumulated PIK interest and is net of repayments, if any. “£” signifies the investment is denominated in thousands)British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

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

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
(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 Schedule of Investments
Financial Statements for transactions during the year ended September 30, 20172022 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(dollar amounts(10)This investment represents a participation interest in thousands)the underlying securities shown.


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(11)Investment is not a "qualifying asset" as defined under Section 55(a) of Investments
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, 20172022, qualifying assets represented 75.7% of the Company's total assets and non-qualifying assets represented 24.3% of the Company's total assets.
(dollar amounts(12)Income producing through payment of dividends or distributions.
(13)This investment represents Seller Earn Out Shares in thousands)Alvotech SA. 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 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 September 30, 2022, 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.
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
(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.
(21)This investment represents a revenue interest financing term loan in which the Company receives periodic interest payments based on a percentage of revenues earned at the respective portfolio company over the life of the loan.

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
25
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. 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 11.10. In 2019, Brookfield Corporation (f/k/a Brookfield Asset Management Inc.) ("Brookfield") acquired a majority economic interest in Oaktree Capital Group, LLC. Oaktree and its affiliates operate as an independent business within Brookfield, with their own product offerings and investment, marketing and support teams.
Prior to October 17, 2017,On March 19, 2021, the Company was externally managed by Fifth Street Management LLC (“FSM”), an indirect, partially-owned subsidiary of Fifth Street Asset Management Inc. (“FSAM”), and FSC CT LLC ("FSC CT" or the "Former Administrator"), a subsidiary of FSM, also provided certain administrative and other services necessary for 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 “OCSI 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 assignment for purposes of the 1940 Act of the investment advisory agreement between FSM and the Company, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OCSI Merger Agreement, OCSI was merged with and into the Company in a two-step transaction, with the Company as the surviving company (the "OCSI Merger”).
On January 23, 2023, the Company acquired Oaktree Strategic Income II, Inc. (“OSI2”) pursuant to that certain Agreement and Plan of Merger (the “OSI2 Merger Agreement”), dated as of September 14, 2022, by and among OSI2, the Company, Project Superior Merger Sub, Inc., a result, its immediate termination.wholly-owned subsidiary of the Company, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OSI2 Merger Agreement, OSI2 was merged with and into the Company in a two-step transaction with the Company as the surviving company (the “OSI2 Merger”). For further information, see Note 14 "Merger with OSI2."

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").
Certain prior period amounts have been reclassified to conform to the current period presentation. All per share amounts and common shares outstanding as of and for periods prior to March 31, 2023 reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.
Use of Estimates:
The preparation of the financial statements in conformity with GAAPaccounting principles generally accepted in the United States ("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.
26
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




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'sOaktree'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'sOaktree'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 AdviserOaktree seeks to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If Oaktree is unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within Oaktree's set threshold, Oaktree 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 if the quotations are representative of fair value, including the source and nature of the quotations. The Investment Adviservaluation process. Generally, Oaktree does not adjust any of the prices unless it has a reason to believe marketreceived from these sources.
If the quotations obtained from pricing vendors or brokers are not reflective of the fair value of an investment. Examples of events that would cause market quotationsdetermined to not reflect fair value could include cases when a security trades infrequently causing a quoted purchasebe reliable or sale price to become stale or in the event of a "fire sale" by a distressed seller. In these instances, 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 corroborateOaktree values such information, which may include the market yield technique discussed below and a quantitative and qualitative assessmentinvestments using any 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
27
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




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 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 CompanyOaktree 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 CompanyOaktree 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 CompanyOaktree 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 CompanyOaktree 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.
Rule 2a-5 under the Investment Company Act permits boards of directors of registered investment companies and Business Development Companies to either (i) choose to determine fair value in good faith or (ii) designate a valuation designee tasked with determining fair value in good faith, subject to the board’s oversight. The Company's Board of Directors has designated Oaktree to serve as its valuation designee effective September 8, 2022.
Oaktree 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's portfolio management team and investment professionals responsible for each portfolio investment;team;
•Preliminary valuations are then reviewed and discussed with management of the Investment Adviser;Oaktree;
•Separately, independent valuation firms engaged by the Board of Directors prepare valuations of the Company's investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to the Company and provide such reports to the Investment Adviser and the Audit Committee of the Board of Directors;Oaktree;
The Investment Adviser•Oaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;
•The Audit Committee reviews the preliminary valuationsvaluation report with the Investment Adviser,Oaktree, and the Investment AdviserOaktree responds and supplements the preliminary valuationsvaluation report to reflect any discussions between the Investment AdviserOaktree and the Audit Committee; and
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•Oaktree, as valuation designee, 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, 2023 and September 30, 20172022 was determined in good faith by Oaktree, as the Board of Directors.Company's valuation designee. 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, andquarter.
Due to the Boardinherent uncertainty of Directorsdetermining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may reasonably rely onfluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that assistance. However, the Board of Directors is responsiblewould have been reported had a ready market for the ultimate valuation ofinvestments existed, and it is reasonably possible that the portfolio investments at fair value as determined in good faith pursuant to the Company's valuation policy and a consistently applied valuation process.difference could be material.
28
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









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 from broker," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.
Foreign Currency Translation:
The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.
Derivative Instruments:
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 is 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 June 30, 2023,
29
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




there were five investments on non-accrual status that in aggregate represented 3.6% and 3.1% of total debt investments at cost and fair value, respectively. As of September 30, 2022, 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 and the interest earned by the buyer from the partial loan sales is recorded within interest expense in the Consolidated Statements of Operations.
PIK Interest Income
The Company's investments in debt securities may contain PIK interest provisions. PIK interest, which generally represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company generally ceases accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect the portfolio company to be able to pay all principal and interest due. The Company's decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; the Company's assessment of the portfolio company's business development success; information obtained by the Company in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. Based on this and other information, the Company determines whether to cease accruing PIK interest on a loan or debt security. The Company's determination to cease accruing PIK interest is generally made well before the Company's full write-down of a loan or debt security. In addition, if it is subsequently determined that the Company will not be able to collect any previously accrued PIK interest, the fair value of the loans or debt securities would be reduced by the amount of such previously accrued, but uncollectible, PIK interest. The accrual of PIK interest on the Company’s debt investments increases the recorded cost bases of these investments in the consolidated financial statements and, as a result, increases the cost bases of these investmentsConsolidated Financial Statements including for purposes of computing the capital gaingains incentive fee payable by the Company to the Investment Adviser beginning in the fiscal year ending September 30, 2019.Oaktree. To maintain its status as a RIC, certain income from PIK interest may be required to be distributed to the Company’s stockholders, even though the Company has not yet collected the cash and may never do so.
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, structuringexit and prepayment fees, which are classified as fee income and recognized as they are earned.
The Company has also structured exit fees across certain of its portfolio investments to be received uponearned or the future exit of those investments. These feesservices are to be paid to the Company upon the earliest to occur of (i) a sale of the borrower or substantially all of its 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.rendered.
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 exceedexceeds 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.
30
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




As of September 30, 2017,2022, included in restricted cash was $6.8$2.8 million 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$2.8 million as of September 30, 2022, until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the Citibank Facility. As of June 30, 2023, included in restricted cash was $13.0 million that was held at Deutsche Bank Trust Company Americas in connection with the Company’s OSI2 Citibank Facility (defined in Note 6. Borrowings). Pursuant to the terms of the OSI2 Citibank Facility, the Company was restricted in terms of access to the $13.0 million until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the credit agreement.OSI2 Citibank Facility.
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 Subchapter M of the Code. The Company did not incur a U.S. federal excise tax for calendar year 2021. For the calendar year 2022, the Company incurred $0.1 million of excise tax. The Company does not expect to incur a U.S. federal excise tax for calendar year 2023.
31
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 2015 and 2016 and does not expect to incur a U.S. federal excise tax for calendar year 2017.
The Company holds certain portfolio investments through taxable subsidiaries, including Funds of Funds and Holdings.subsidiaries. The purpose of the Company's taxable subsidiaries is to permit the Company to hold equity investments in portfolio companies which are "pass through" entities for U.S. federal income tax purposes in order to comply with the RIC tax requirements. The taxable subsidiaries are consolidated for financial reporting purposes, and portfolio investments held by them are included in the Company’s Consolidated Financial Statements as portfolio investments and recorded at fair value. The taxable subsidiaries are not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. This income tax expense, if any, would be reflected in the Company's Consolidated Statements of Operations. The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net operating loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.
FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the Company's Consolidated Financial Statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management's determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including an ongoing analysis of tax laws, regulations and interpretations thereof. The Company recognizes the tax benefits of uncertain tax positions only where the position is "more-likely-than-not" to be sustained assuming examination by tax authorities. Management has analyzed the Company's tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2014, 2015 or 2016.2020, 2021 and 2022. The Company identifies its major tax jurisdictions as U.S. Federal and California, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Secured Borrowings:
The Company follows the guidance in ASC 860 when accounting for loan participations and other partial loan sales. Such guidance provides accounting and reporting standards for transfers and servicing of financial assets and requires a participation or other partial loan sales to meet the definition of a "participating interest," as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest or which are not eligible for sale accounting remain on the Company's Consolidated Statements of Assets and Liabilities and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value. See Note 14 for additional information.
32
Amounts Payable to Syndication Partners:
The Company acts as administrative agent for certain loans it originates and then syndicates. As administrative agent, the Company receives interest, principal and/or other payments from borrowers that is redistributed to syndication partners. If not redistributed by the reporting date, such amounts are classified in restricted cash and a payable is recorded to syndication partners on the Consolidated Statements of Assets and Liabilities.
Fair Value Option:
The Company adopted certain principles under FASB ASC Topic 825 Financial Instruments – Fair Value Option ("ASC 825") and elected the fair value option for its secured borrowings, which had a cost basis of $13.5 million in the aggregate as of each of December 31, 2017 and September 30, 2017. The Company believes that by electing the fair value option for these financial instruments, it provides consistent measurement of the assets and liabilities which relate to the partial loan sales mentioned above.
However, the Company has not elected the fair value option to report other selected financial assets and liabilities at fair value. With the exception of the line items entitled "deferred financing costs," "other assets," "credit facilities payable," and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statement of Assets and Liabilities. The carrying value of the line items titled "interest, dividends, and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "accounts payable, accrued expenses and other liabilities," "base management fee and part I
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









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

Note 3. Portfolio Investments
As of December 31, 2017, 172.7%June 30, 2023, 207.7%of net assets at fair value, or $1.4$3.1 billion, was invested in 122156 portfolio companies, including the Company's investment(i) $140.6 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) $49.6 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, 2023, 4.8% of net assets at fair value, or $45.8$72.7 million, was invested in cash and cash equivalents (including $13.0 million of restricted cash). In comparison, as of September 30, 2017, 177.7%2022, 200.2% of net assets at fair value, or $1.5$2.5 billion, was invested in 125149 portfolio investments, including the Company's investment(i) $117.0 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) $50.3 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, 2022, 2.1% of net assets at fair value, or $59.9$26.4 million, was invested in cash and cash equivalents (including $2.8 million of restricted cash). As of December 31, 2017, 75.8%June 30, 2023, 88.5% 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%6.8% consisted of subordinated notes,debt investments, including the debt investments in SLF JV I.the JVs. As of September 30, 2017, 78.0%2022, 86.9% 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%8.1% 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, 2023, the Company recorded a net realized loss on investments and secured borrowingslosses of $0.3$10.6 million and $23.1$19.9 million, respectively. During the three and nine months ended December 31, 2017June 30, 2022, the Company recorded net realized gains of $9.2 million and December 31, 2016,$19.9 million, respectively. During the three and nine months ended June 30, 2023, the Company recorded net unrealized depreciation on investments and secured borrowings of $43.5$1.0 million and $74.4$42.3 million, respectively. During the three and nine months ended June 30, 2022, the Company recorded net unrealized depreciation of $86.8 million and $118.4 million, respectively.
The composition of the Company's investments as of December 31, 2017June 30, 2023 and September 30, 20172022 at cost and fair value was as follows:
  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:
 June 30, 2023September 30, 2022
 CostFair ValueCostFair Value
Investments in debt securities$2,942,222 $2,826,369 $2,294,392 $2,223,329 
Investments in equity securities136,619 118,989 127,596 103,534 
Debt investments in the JVs162,653 162,288 146,444 146,533 
Equity investments in the JVs54,791 27,973 49,322 20,715 
Total$3,296,285 $3,135,619 $2,617,754 $2,494,111 
33
  Level 1 Level 2 Level 3 Measured at Net Asset Value (a) Total
Investments in debt securities (senior secured) $—
 $258,128
 $815,352
 $—
 $1,073,480
Investments in debt securities (subordinated, including debt investments in SLF JV I) —
 56,684
 169,951
 —
 226,635
Investments in equity securities (preferred) —
 —
 16,350
 —
 16,350
Investments in equity securities (common, including LLC equity interests of SLF JV I) —
 —
 68,434
 30,505
 98,939
Total investments at fair value —
 314,812
 1,070,087
 30,505
 1,415,404
Cash and cash equivalents 45,435
 —
 —
 —
 45,435
Total assets at fair value $45,435
 $314,812
 $1,070,087
 $30,505
 $1,460,839
Secured borrowings relating to senior secured debt investments —
 —
 11,601
 —
 11,601
Total liabilities at fair value $—
 $—
 $11,601
 $—
 $11,601
__________ 
(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)










The following table presents the composition of the Company's debt investments as of June 30, 2023 and September 30, 2022 at fixed rates and floating rates:
 June 30, 2023September 30, 2022
 Fair Value% of Debt
Portfolio		Fair Value% of Debt
Portfolio
Floating rate debt securities, including the debt investments in the JVs$2,571,458 86.04 %$2,049,644 86.49 %
Fixed rate debt securities417,199 13.96 320,218 13.51 
Total$2,988,657 100.00 %$2,369,862 100.00 %

The following table presents the financial instruments carried at fair value as of SeptemberJune 30, 20172023 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
 $—
 $1,202,699
Investments in debt securities (senior secured)$— $245,925 $2,528,448 $— $2,774,373 
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)— 29,368 184,916 — 214,284 
Investments in equity securities (preferred) —
 —
 16,445
 —
 16,445
Investments in equity securities (preferred)— — 92,186 — 92,186 
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)6,455 — 20,348 27,973 54,776 
Total investments at fair value —
 184,035
 1,326,382
 31,338
 1,541,755
Total investments at fair value6,455 275,293 2,825,898 27,973 3,135,619 
Cash and cash equivalents 53,018
 —
 —
 —
 53,018
Cash equivalentsCash equivalents5,193 — — — 5,193 
Derivative assetDerivative asset— 49 — — 49 
Total assets at fair value $53,018
 $184,035
 $1,326,382
 $31,338
 $1,594,773
Total assets at fair value$11,648 $275,342 $2,825,898 $27,973 $3,140,861 
Secured borrowings relating to senior secured debt investments —
 —
 13,256
 —
 13,256
Derivative liabilityDerivative liability$— $39,567 $— $— $39,567 
Total liabilities at fair value $—
 $—
 $13,256
 $—
 $13,256
Total liabilities at fair value$— $39,567 $— $— $39,567 
__________ 
(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.
34
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, 2022 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)$— $255,803 $1,910,606 $— $2,166,409 
Investments in debt securities (subordinated, including the debt investments in the JVs)— 44,065 159,388 — 203,453 
Investments in equity securities (preferred)— — 79,523 — 79,523 
Investments in equity securities (common and warrants, including LLC equity interests of the JVs)4,053 — 19,958 20,715 44,726 
Total investments at fair value4,053 299,868 2,169,475 20,715 2,494,111 
Cash equivalents5,261 — — — 5,261 
Derivative assets— 6,789 — — 6,789 
Total assets at fair value$9,314 $306,657 $2,169,475 $20,715 $2,506,161 
Derivative liability$— $41,969 $— $— $41,969 
Total liabilities at fair value$— $41,969 $— $— $41,969 
__________ 
(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, 2023 to June 30, 2017 to December 31, 20172023 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, 2023$2,493,622 $183,756 $91,447 $25,509 $2,794,334 
Purchases228,375 4,183 — 182 232,740 
Sales and repayments(191,409)(350)— (7,320)(199,079)
Transfers out (a)— (2,708)— — (2,708)
Capitalized PIK interest income3,610 358 — — 3,968 
Accretion of OID4,086 381 — — 4,467 
Net unrealized appreciation (depreciation)(8,027)(704)739 1,893 (6,099)
Net realized gains (losses)(1,809)— — 84 (1,725)
Fair value as of June 30, 2023$2,528,448 $184,916 $92,186 $20,348 $2,825,898 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2023 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2023$(10,360)$(704)$739 $1,095 $(9,230)
__________
(a) There were transfers out of Level 3 to Level 2 for certain investments during the quarterthree months ended December 31, 2017June 30, 2023 as a result of an increaseda change in the number of market quotes available and/or increaseda change in market liquidity.


35
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 March 31, 2022 to June 30, 2022 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, 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 was a transfer into Level 3 from Level 2 for an investment during the three 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
The following table provides a roll-forward in the changes in fair value from September 30, 20162022 to December 31, 2016June 30, 2023 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, 2022$1,910,606 $159,388 $79,523 $19,958 $2,169,475 
Purchases (a)980,595 26,508 14,296 5,610 1,027,009 
Sales and repayments(357,903)(1,396)— (8,295)(367,594)
Transfers in (b)19,075 — — — 19,075 
Capitalized PIK interest income12,549 376 — — 12,925 
Accretion of OID11,684 1,109 — — 12,793 
Net unrealized appreciation (depreciation)(45,019)(1,069)(1,633)2,804 (44,917)
Net realized gains (losses)(3,139)— — 271 (2,868)
Fair value as of June 30, 2023$2,528,448 $184,916 $92,186 $20,348 $2,825,898 
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2023 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2023$(46,680)$(1,069)$(1,633)$(355)$(49,737)
__________
(a) Includes Level 3 investments acquired in connection with the OSI2 Merger during the nine months ended June 30, 2023.
(b) There was a transfer into Level 3 from Level 2 for an investment during the nine months ended June 30, 2023 as a result of a change in the number of market quotes available and/or a change in market liquidity.
36
  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, 2021 to June 30, 2022 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 September 30, 2021$1,878,536 $176,317 $63,565 $43,163 $2,161,581 
Purchases437,922 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.

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, 2023:
AssetFair ValueValuation TechniqueUnobservable InputRangeWeighted
Average (a)
Senior Secured Debt$2,058,831 Market YieldMarket Yield(b)9.0%-38.0%14.1%
43,954 Enterprise ValueRevenue Multiple(c)5.0x-7.0x6.0x
34,466 Enterprise ValueEBITDA Multiple(c)3.4x-5.4x5.2x
32,379 Transaction PrecedentTransaction Price(d)N/A-N/AN/A
358,818 Broker quotationsBroker Quoted Price(e)N/A-N/AN/A
Subordinated Debt18,464 Market YieldMarket Yield(b)10.0%-22.0%11.4%
4,164 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Debt Investments in the JVs162,288 Enterprise ValueN/A(f)N/A-N/AN/A
Preferred & Common Equity70,852 Enterprise ValueRevenue Multiple(c)0.4x-6.0x1.4x
37,322 Enterprise ValueEBITDA Multiple(c)1.7x-17.5x11.1x
1,415 Enterprise ValueAsset Multiple(c)1.0x-1.4x1.4x
2,945 Transaction PrecedentTransaction Price(d)N/A-N/AN/A
Total$2,825,898 
__________
(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)Oaktree 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. Oaktree 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.
(f)Oaktree 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.
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
           
37
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 quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2022:
AssetFair ValueValuation TechniqueUnobservable InputRangeWeighted
Average (a)
Senior Secured Debt$1,599,148 Market YieldMarket Yield(b)9.0%-30.0%13.7%
14,333 Enterprise ValueEBITDA Multiple(c)5.0x-7.0x6.0x
297,125 Broker QuotationsBroker Quoted Price(e)N/A-N/AN/A
Subordinated Debt12,855 Market YieldMarket Yield(b)10.0%-19.0%13.8%
Debt Investments in the JVs146,533 Enterprise ValueN/A(f)N/A-N/AN/A
Preferred & Common Equity61,693 Enterprise ValueRevenue Multiple(c)0.4x-10.1x4.3x
36,913 Enterprise ValueEBITDA Multiple(c)3.0x-20.0x11.4x
3 Enterprise ValueAsset Multiple(c)0.9x-1.1x1.0x
872 Transaction PrecedentTransaction Price(d)N/A-N/AN/A
Total$2,169,475 
__________
(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)Oaktree 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. Oaktree 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.
(f)Oaktree 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, 2023 and the level of each financial liability within the fair value hierarchy:
 
Carrying
Value		Fair ValueLevel 1Level 2Level 3
Syndicated Facility payable$800,000 $800,000 $— $— $800,000 
OSI2 Citibank Facility payable335,000 335,000 — — 335,000 
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)297,928 285,717 — 285,717 — 
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)307,138 302,260 — 302,260 — 
Total$1,740,066 $1,722,977 $— $587,977 $1,135,000 
38
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, 20172022 and the level of each financial liability within the fair value hierarchy:
Carrying
Value		Fair ValueLevel 1Level 2Level 3
Syndicated Facility payable$540,000 $540,000 $— $— $540,000 
Citibank Facility payable160,000 160,000 — — 160,000 
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)296,991 283,077 — 283,077 — 
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)304,052 294,028 — 294,028 — 
Total$1,301,043 $1,277,105 $— $577,105 $700,000 
  
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 price Oaktree used market quotes as of the valuation date to estimate the fair value of its 4.875% unsecuredthe Company's 3.500% 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, 2023September 30, 2022
Cost: % of Total Investments% of Total Investments
Senior secured debt$2,886,772 87.59 %$2,227,245 85.08 %
Debt investments in the JVs162,653 4.93 %146,444 5.59 %
Preferred equity99,597 3.02 %85,300 3.26 %
Subordinated debt55,450 1.68 %67,147 2.57 %
LLC equity interests of the JVs54,791 1.66 %49,322 1.88 %
Common equity and warrants37,022 1.12 %42,296 1.62 %
Total$3,296,285 100.00 %$2,617,754 100.00 %

 June 30, 2023September 30, 2022
Fair Value: % of Total Investments% of Net Assets% of Total Investments% of Net Assets
Senior secured debt$2,774,373 88.48 %183.80 %$2,166,409 86.86 %173.93 %
Debt investments in the JVs162,288 5.18 %10.75 %146,533 5.88 %11.77 %
Preferred equity92,186 2.94 %6.11 %79,523 3.19 %6.38 %
Subordinated debt51,996 1.66 %3.44 %56,920 2.28 %4.57 %
LLC equity interests of the JVs27,973 0.89 %1.85 %20,715 0.83 %1.66 %
Common equity and warrants26,803 0.85 %1.78 %24,011 0.96 %1.93 %
Total$3,135,619 100.00 %207.73 %$2,494,111 100.00 %200.24 %

39
  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, 2023September 30, 2022
Cost: % of Total Investments % of Total Investments
Northeast$994,695 30.17 %$747,420 28.55 %
Midwest448,981 13.62 %373,236 14.26 %
Southeast446,546 13.55 %356,041 13.60 %
West440,634 13.37 %358,306 13.69 %
International434,844 13.19 %301,242 11.51 %
South197,754 6.00 %168,819 6.45 %
Northwest168,992 5.13 %91,382 3.49 %
Southwest163,839 4.97 %221,308 8.45 %
Total$3,296,285 100.00 %$2,617,754 100.00 %

 June 30, 2023September 30, 2022
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Northeast$936,888 29.87 %62.07 %$696,368 27.93 %55.90 %
International432,986 13.81 %28.69 %279,646 11.21 %22.45 %
Midwest429,317 13.69 %28.44 %356,934 14.31 %28.66 %
West428,232 13.66 %28.37 %345,251 13.84 %27.72 %
Southeast406,523 12.96 %26.93 %344,567 13.82 %27.66 %
South186,792 5.96 %12.37 %166,230 6.66 %13.35 %
Northwest166,089 5.30 %11.00 %90,131 3.61 %7.24 %
Southwest148,792 4.75 %9.86 %214,984 8.62 %17.26 %
Total$3,135,619 100.00 %207.73 %$2,494,111 100.00 %200.24 %
40
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, 2023 and September 30, 2017 was as follows:2022:
June 30, 2023September 30, 2022
Cost: % of Total Investments % of Total Investments
Application Software$560,503 16.98 %$391,938 14.98 %
Multi-Sector Holdings (1)219,130 6.65 195,766 7.48 
Data Processing & Outsourced Services133,422 4.05 120,477 4.60 
Health Care Technology129,178 3.92 100,084 3.82 
Biotechnology127,394 3.86 109,960 4.20 
Pharmaceuticals121,497 3.69 126,508 4.83 
Aerospace & Defense110,680 3.36 61,963 2.37 
Industrial Machinery & Supplies & Components99,237 3.01 — — 
Broadline Retail83,201 2.52 — — 
Health Care Services77,364 2.35 58,674 2.24 
Real Estate Operating Companies76,462 2.32 47,585 1.82 
Specialized Finance69,188 2.10 80,864 3.09 
Personal Care Products68,671 2.08 — — 
Automotive Retail64,825 1.97 59,254 2.26 
Fertilizers & Agricultural Chemicals64,750 1.96 49,301 1.88 
Internet Services & Infrastructure63,057 1.91 54,095 2.07 
Health Care Distributors62,079 1.88 57,112 2.18 
Diversified Financial Services61,693 1.87 — — 
Auto Parts & Equipment61,091 1.85 12,474 0.48 
Metal, Glass & Plastic Containers57,949 1.76 — — 
Airport Services55,919 1.70 43,322 1.65 
Home Improvement Retail54,939 1.67 45,802 1.75 
Insurance Brokers52,960 1.61 35,628 1.36 
Diversified Metals & Mining49,787 1.51 — — 
Leisure Facilities49,501 1.50 39,768 1.52 
Real Estate Services44,783 1.36 40,243 1.54 
Soft Drinks & Non-alcoholic Beverages43,021 1.31 — — 
Diversified Support Services42,706 1.30 37,992 1.45 
Other Specialty Retail41,790 1.27 — — 
Specialty Chemicals38,248 1.16 37,319 1.43 
Distributors37,668 1.14 25,278 0.97 
Integrated Telecommunication Services33,663 1.02 34,628 1.32 
Electrical Components & Equipment32,380 0.98 33,814 1.29 
Construction & Engineering27,231 0.83 60,996 2.33 
Environmental & Facilities Services25,943 0.79 20,857 0.80 
Advertising25,597 0.78 28,245 1.08 
Passenger Airlines24,888 0.76 — — 
Oil & Gas Storage & Transportation24,231 0.74 22,290 0.85 
Home Furnishings23,832 0.72 19,550 0.75 
Gold23,274 0.71 — — 
Systems Software23,089 0.70 14,890 0.57 
Health Care Equipment22,374 0.68 24,353 0.93 
Real Estate Development19,567 0.59 — — 
Interactive Media & Services18,963 0.58 — — 
Hotels, Resorts & Cruise Lines17,221 0.52 13,960 0.53 
Consumer Finance16,411 0.50 14,492 0.55 
Education Services15,660 0.48 9,080 0.35 
IT Consulting & Other Services15,434 0.47 11,697 0.45 
Restaurants12,589 0.38 9,338 0.36 
Movies & Entertainment12,188 0.37 26,161 1.00 
Health Care Supplies11,675 0.35 36,471 1.39 
Food Distributors5,900 0.18 4,646 0.18 
Apparel Retail5,293 0.16 5,268 0.20 
Air Freight & Logistics4,925 0.15 7,295 0.28 
Integrated Oil & Gas4,887 0.15 4,866 0.19 
Research & Consulting Services4,879 0.15 9,187 0.35 
Cable & Satellite4,687 0.14 20,716 0.79 
Other Specialized REITs4,364 0.13 — — 
Paper & Plastic Packaging Products & Materials3,262 0.10 — — 
Housewares & Specialties2,908 0.09 2,293 0.09 
Electronic Components2,101 0.06 2,092 0.08 
Leisure Products2,039 0.06 — — 
Technology Distributors1,084 0.03 3,163 0.12 
Communications Equipment1,053 0.03 — — 
Industrial Machinery— — 81,787 3.12 
Internet & Direct Marketing Retail— — 67,926 2.59 
Personal Products— — 53,214 2.03 
Metal & Glass Containers— — 47,704 1.82 
Soft Drinks— — 34,272 1.31 
Other Diversified Financial Services— — 29,300 1.12 
Oil & Gas Refining & Marketing— — 8,627 0.33 
Trading Companies & Distributors— — 7,628 0.29 
Apparel, Accessories & Luxury Goods— — 5,165 0.20 
Specialized REITs— — 4,318 0.16 
Diversified Banks— — 3,515 0.13 
Construction Materials— — 2,331 0.09 
Alternative Carriers— — 212 0.01 
$3,296,285 100.00 %$2,617,754 100.00 %
41
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









June 30, 2023September 30, 2022
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Application Software$544,685 17.38 %36.03 %$384,589 15.43 %30.87 %
Multi-Sector Holdings (1)192,160 6.13 12.73 167,248 6.71 13.43 
Biotechnology128,343 4.09 8.50 108,465 4.35 8.71 
Data Processing & Outsourced Services124,548 3.97 8.25 111,335 4.46 8.94 
Pharmaceuticals116,199 3.71 7.70 119,511 4.79 9.59 
Health Care Technology115,659 3.69 7.66 97,315 3.90 7.81 
Aerospace & Defense111,464 3.55 7.38 61,881 2.48 4.97 
Industrial Machinery & Supplies & Components99,021 3.16 6.56 — — — 
Broadline Retail80,882 2.58 5.36 — — — 
Real Estate Operating Companies75,111 2.40 4.98 48,062 1.93 3.86 
Specialized Finance66,333 2.12 4.39 73,087 2.93 5.87 
Fertilizers & Agricultural Chemicals63,185 2.02 4.19 51,972 2.08 4.17 
Internet Services & Infrastructure62,726 2.00 4.16 53,797 2.16 4.32 
Automotive Retail62,356 1.99 4.13 57,629 2.31 4.63 
Health Care Services62,190 1.98 4.12 45,943 1.84 3.69 
Diversified Financial Services61,073 1.95 4.05 — — — 
Personal Care Products60,962 1.94 4.04 — — — 
Auto Parts & Equipment60,809 1.94 4.03 11,469 0.46 0.92 
Health Care Distributors60,340 1.92 4.00 54,662 2.19 4.39 
Airport Services55,221 1.76 3.66 42,883 1.72 3.44 
Insurance Brokers54,680 1.74 3.62 33,081 1.33 2.66 
Home Improvement Retail54,235 1.73 3.59 45,421 1.82 3.65 
Diversified Metals & Mining49,809 1.59 3.30 — — — 
Leisure Facilities46,990 1.50 3.11 39,258 1.57 3.15 
Real Estate Services44,227 1.41 2.93 39,573 1.59 3.18 
Metal, Glass & Plastic Containers43,954 1.40 2.91 — — — 
Soft Drinks & Non-alcoholic Beverages42,798 1.36 2.84 — — — 
Other Specialty Retail41,790 1.33 2.77 — — — 
Diversified Support Services41,302 1.32 2.74 36,712 1.47 2.95 
Distributors36,829 1.17 2.44 24,494 0.98 1.97 
Electrical Components & Equipment32,379 1.03 2.15 32,933 1.32 2.64 
Specialty Chemicals32,231 1.03 2.14 33,969 1.36 2.73 
Integrated Telecommunication Services30,922 0.99 2.05 32,201 1.29 2.59 
Passenger Airlines26,985 0.86 1.79 — — — 
Construction & Engineering26,901 0.86 1.78 61,188 2.45 4.91 
Environmental & Facilities Services25,436 0.81 1.69 20,585 0.83 1.65 
Gold23,292 0.74 1.54 — — — 
Health Care Equipment22,531 0.72 1.49 24,161 0.97 1.94 
Systems Software22,168 0.71 1.47 12,834 0.51 1.03 
Oil & Gas Storage & Transportation21,660 0.69 1.43 20,853 0.84 1.67 
Home Furnishings19,514 0.62 1.29 18,188 0.73 1.46 
Real Estate Development19,246 0.61 1.28 — — — 
Interactive Media & Services19,000 0.61 1.26 — — — 
Advertising18,969 0.60 1.26 26,948 1.08 2.16 
Hotels, Resorts & Cruise Lines17,261 0.55 1.14 13,985 0.56 1.12 
Education Services14,116 0.45 0.94 8,582 0.34 0.69 
Consumer Finance12,616 0.40 0.84 13,284 0.53 1.07 
Restaurants12,168 0.39 0.81 8,692 0.35 0.70 
Movies & Entertainment11,865 0.38 0.79 26,645 1.07 2.14 
Health Care Supplies11,408 0.36 0.76 36,577 1.47 2.94 
IT Consulting & Other Services11,176 0.36 0.74 8,596 0.34 0.69 
Food Distributors5,296 0.17 0.35 3,367 0.13 0.27 
Apparel Retail5,230 0.17 0.35 5,223 0.21 0.42 
Integrated Oil & Gas4,810 0.15 0.32 4,872 0.20 0.39 
Cable & Satellite4,672 0.15 0.31 19,576 0.78 1.57 
Research & Consulting Services4,632 0.15 0.31 8,573 0.34 0.69 
Air Freight & Logistics4,025 0.13 0.27 6,405 0.26 0.51 
Other Specialized REITs3,438 0.11 0.23 — — — 
Paper & Plastic Packaging Products & Materials3,100 0.10 0.21 — — — 
Housewares & Specialties2,858 0.09 0.19 2,456 0.10 0.20 
Leisure Products1,995 0.06 0.13 — — — 
Electronic Components1,834 0.06 0.12 1,890 0.08 0.15 
Technology Distributors1,024 0.03 0.07 2,997 0.12 0.24 
Communications Equipment980 0.03 0.06 — — — 
Industrial Machinery— — — 81,008 3.25 6.50 
Internet & Direct Marketing Retail— — — 70,419 2.82 5.65 
Personal Products— — — 50,150 2.01 4.03 
Metal & Glass Containers— — — 47,599 1.91 3.82 
Soft Drinks— — — 33,670 1.35 2.70 
Other Diversified Financial Services— — — 24,326 0.98 1.95 
42
  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% $1,541,755
 100.00% 177.69%
June 30, 2023September 30, 2022
Fair Value: % of Total Investments% of Net Assets % of Total Investments% of Net Assets
Oil & Gas Refining & Marketing$— — — $8,604 0.34 0.69 
Trading Companies & Distributors— — — 5,567 0.22 0.45 
Diversified Banks— — — 3,402 0.14 0.27 
Specialized REITs— — — 3,264 0.13 0.26 
Construction Materials— — — 1,934 0.08 0.16 
Alternative Carriers— — — 201 0.01 0.02 
Total$3,135,619 100.00 %207.73 %$2,494,111 100.00 %200.24 %
___________________
(1)This industry includes the Company's investment in SLF JV I.
OAKTREE SPECIALTY LENDING CORPORATION(1)This industry includes the Company's investments in the JVs.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





As of December 31, 2017June 30, 2023 and September 30, 2017,2022, 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, 2023 and September 30, 2017,2022, 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, 2023 and September 30, 2017. As of December 31, 2017, the stated maturity date of the Deutsche Bank I facility was July 1, 2023, and borrowings2022. 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, 2023, the reinvestment period of the SLF JV I Deutsche Bank Facility was scheduled to expire May 3, 2024 and the maturity date was May 3, 2028. As of June 30, 2023, borrowings under the SLF JV I Deutsche Bank Facility accrued interest at a rate equal to 3-month SOFR plus 2.50% until November 3, 2023, 3-month SOFR plus 2.75% per annum during the remainder of the reinvestment period, 3-month SOFR plus 3.25% per annum for the first year after the reinvestment period, 3-month SOFR plus 3.35% for the following year and 3-month SOFR plus 3.60% thereafter, in each case with a 0.125% SOFR floor. $200.0 million and $230.0 million of borrowings were outstanding under the SLF JV I Deutsche Bank Facility as of June 30, 2023 and September 30, 2017,2022, respectively.
As of June 30, 2023 and September 30, 2022, SLF JV I had total assets of $284.5$370.2 million and $276.8 million. As of December 31, 2017, the Company's investment in SLF JV I consisted of LLC equity interests of $4.9$385.2 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 52 and other corporate debt securities of 34 and 32 "eligible60 portfolio companies" (as defined in Section 2(a)(46) of the 1940 Act)companies as of December 31, 2017June 30, 2023 and September 30, 2017,2022, 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, 2023, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $140.6 million in aggregate, at fair value. As of September 30, 2022, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $117.0 million in aggregate, at fair value.
As of eachJune 30, 2023, the Company and Kemper had funded approximately $190.5 million to SLF JV I, of December 31, 2017 andwhich $166.7 million was from the Company. As of September 30, 2017,2022, 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,June 30, 2023, the Company and Kemper had the optionaggregate commitments to fund SLF JV I of $13.1 million, of which approximately $9.8 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 $3.3 million was to fund LLC equity interests in SLF JV I. During the nine months ended June 30, 2023, the Company contributed $16.4 million to fund additional SLF JV I Notes and approximately $5.5 million to fund additional LLC equity interests in SLF JV I. As of September 30, 2022, the Company had aggregate commitments to fund SLF JV I of $17.5$35.0 million, of which $1.3approximately $26.2 million was unfunded.to fund additional SLF JV I Notes and approximately $8.8 million was to fund LLC equity interests in SLF JV I.
43
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, 2017June 30, 2023 and September 30, 2017:2022:
June 30, 2023September 30, 2022
Senior secured loans (1)$350,214$383,194
Weighted average interest rate on senior secured loans (2)10.40%8.33%
Number of borrowers in SLF JV I5260
Largest exposure to a single borrower (1)$11,304$10,093
Total of five largest loan exposures to borrowers (1)$54,003$48,139
  December 31, 2017 September 30, 2017
Senior secured loans (1) $249,967 $245,063
Weighted average interest rate on senior secured loans (2) 7.81% 7.70%
Number of borrowers in SLF JV I 34 32
Largest exposure to a single borrower (1) $18,251 $18,374
Total of five largest loan exposures to borrowers (1) $77,991 $82,728
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans.loans at fair value.


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









SLF JV I Portfolio as of June 30, 2023
Portfolio CompanyIndustryType of InvestmentIndexSpreadCash Interest Rate (1)(2)PIKMaturity DateSharesPrincipalCostFair Value (3)Notes
Access CIG, LLCDiversified Support ServicesFirst Lien Term LoanL+3.75%8.94%2/27/2025$5,596 $5,559 $5,545 
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%12.00%12/18/20256,911 6,832 6,784 (4)
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%12.00%12/18/20251,173 1,158 1,152 (4)
Altice France S.A.Integrated Telecommunication ServicesFirst Lien Term LoanL+4.00%9.32%8/14/20262,977 2,850 2,808 
Alvogen Pharma US, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+7.50%12.89%6/30/20258,916 8,845 8,514 (4)
American Rock Salt Company LLCDiversified Metals & MiningFirst Lien Term LoanSOFR+4.00%9.22%6/9/20284,970 4,734 4,692 
American Tire Distributors, Inc.DistributorsFirst Lien Term LoanSOFR+6.25%11.49%10/20/20284,836 4,775 4,219 (4)
Amplify Finco Pty Ltd.Movies & EntertainmentFirst Lien Term LoanSOFR+4.00%9.39%11/26/20267,740 7,663 7,721 
Anastasia Parent, LLCPersonal Care ProductsFirst Lien Term LoanSOFR+3.75%9.25%8/11/20251,527 1,194 1,179 (4)
Apptio, Inc.Application SoftwareFirst Lien Term LoanL+5.00%10.20%1/10/20254,615 4,592 4,615 (4)
Apptio, Inc.Application SoftwareFirst Lien RevolverL+5.00%10.20%1/10/2025115 113 115 (4)(5)
ASP-R-PAC Acquisition Co LLCPaper & Plastic Packaging Products & MaterialsFirst Lien Term LoanSOFR+6.00%11.31%12/29/20274,145 4,083 3,938 (4)
ASP-R-PAC Acquisition Co LLCPaper & Plastic Packaging Products & MaterialsFirst Lien RevolverSOFR+6.00%12/29/2027— (7)(25)(4)(5)
Astra Acquisition Corp.Application SoftwareFirst Lien Term LoanL+5.25%10.44%10/25/20285,052 4,880 3,560 (4)
Asurion, LLCProperty & Casualty InsuranceFirst Lien Term LoanSOFR+4.00%9.20%8/19/20284,963 4,749 4,710 
Asurion, LLCProperty & Casualty InsuranceFirst Lien Term LoanSOFR+4.25%9.47%8/19/20281,995 1,883 1,902 
Asurion, LLCProperty & Casualty InsuranceSecond Lien Term LoanSOFR+5.25%10.47%1/20/20294,346 4,022 3,657 
athenahealth Group Inc.Health Care TechnologyFirst Lien Term LoanSOFR+3.50%8.59%2/15/20294,331 4,079 4,179 
athenahealth Group Inc.Health Care TechnologyFirst Lien Term LoanSOFR+3.50%2/15/2029— (32)(19)(5)
Aurora Lux Finco S.À.R.L.Airport ServicesFirst Lien Term LoanL+6.00%11.27%12/24/20266,289 6,211 6,031 (4)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanSOFR+5.00%10.50%6/11/20276,322 6,263 6,158 (4)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanSOFR+5.00%10.50%6/11/20271,759 1,748 1,713 (4)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesCommon Stock171 — — (4)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesPreferred Equity7,193,540 7,194 5,683 (4)
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien Term LoanSOFR+6.00%11.44%8/10/20271,965 1,938 1,930 
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien Term LoanSOFR+6.00%11.44%8/10/20272,366 2,332 2,324 
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien Term LoanSOFR+6.00%11.44%8/10/20271,988 1,957 1,952 
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien RevolverSOFR+6.00%11.38%8/10/2027200 192 189 (5)
Convergeone Holdings, Inc.IT Consulting & Other ServicesFirst Lien Term LoanL+5.00%10.37%1/4/20267,315 7,188 4,670 (4)
Covetrus, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+5.00%10.24%10/13/20296,359 5,983 5,937 (4)
Curium Bidco S.à.r.l.BiotechnologyFirst Lien Term LoanL+4.00%9.54%7/9/20267,760 7,689 7,730 
Curium Bidco S.à.r.l.BiotechnologyFirst Lien Term LoanL+4.25%9.79%12/2/2027992 974 987 
DirecTV Financing, LLCCable & SatelliteFirst Lien Term LoanSOFR+5.00%10.22%8/2/20275,958 5,869 5,838 (4)
DTI Holdco, Inc.Research & Consulting ServicesFirst Lien Term LoanSOFR+4.75%9.80%4/26/20297,940 7,807 7,411 (4)
Gibson Brands, Inc.Leisure ProductsFirst Lien Term LoanSOFR+5.00%10.25%8/11/20287,388 7,314 5,984 (4)
Harbor Purchaser Inc.Education ServicesFirst Lien Term LoanSOFR+5.25%10.45%4/9/20297,940 7,742 6,818 (4)
45
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Portfolio Company Industry Investment Type Maturity Date Current Interest Rate(1)(4)  Cash Interest Rate Principal Cost Fair Value (2)
Garretson Resolution Group, Inc. Diversified support services First Lien 5/22/2021 LIBOR+6.5% (1% floor) 8.19% $5,797
 $5,780
 $5,432
 Gigamon Inc.  Systems software First Lien 12/18/2024 LIBOR+4.5% (1% floor) 6.03% 8,000
 7,920
 7,960
InMotion Entertainment Group, LLC (3) Consumer electronics First Lien 10/1/2021 LIBOR+7.25% (1.25% floor) 8.95% 8,750
 8,769
 8,750
    First Lien B 10/1/2021 LIBOR+7.25% (1.25% floor) 8.95% 8,750
 8,660
 8,750
Total InMotion Entertainment Group, LLC           17,500
 17,429
 17,500
 Keypath Education, Inc. (3)  Advertising First Lien 4/3/2022 LIBOR+7% (1.00% floor) 8.69% 2,040
 2,039
 2,040
    927 shares Common Stock         1,391
 815
            2,040
 3,430
 2,855
Lift Brands, Inc. (3) Leisure facilities First Lien 12/23/2019 LIBOR+7.5% (1% floor) 9.19% 18,149
 18,132
 18,149
Metamorph US 3, LLC (3)(5) Internet software & services First Lien 12/1/2020 LIBOR+5.5% (1% floor) 2% PIK 7.07% 9,942
 9,232
 3,775
Motion Recruitment Partners LLC Human resources & employment services First Lien 2/13/2020 LIBOR+6% (1% floor) 7.57% 4,298
 4,255
 4,303
NAVEX Global, Inc. Internet software & services First Lien 11/19/2021 LIBOR+4.75% (1% floor) 5.82% 5,944
 5,911
 5,974
New IPT, Inc. (3)  Oil & gas equipment & services First Lien 3/17/2021 LIBOR+5% (1% floor) 6.69% 1,794
 1,794
 1,794
    Second Lien 9/17/2021 LIBOR+5.1% (1% floor) 6.79% 1,094
 1,094
 1,094
    21.876 Class A Common Units       
 —
 420
Total New IPT, Inc.           2,888
 2,888
 3,308
Novetta Solutions, LLC Internet software & services First Lien 9/30/2022 LIBOR+5% (1% floor) 6.70% 6,102
 6,053
 5,937
OmniSYS Acquisition Corporation (3) Diversified support services First Lien 11/21/2018 LIBOR+7.5% (1% floor) 9.19% 10,896
 10,899
 10,873
Refac Optical Group (3) Specialty stores First Lien A 9/30/2018 LIBOR+8% 9.56% 4,111
 4,098
 4,111
Salient CRGT, Inc. (3)  IT consulting & other services First Lien 2/28/2022 LIBOR+5.75% (1% floor) 7.32% 2,405
 2,364
 2,426
Scientific Games International, Inc. (3) Casinos & gaming First Lien 8/14/2024 LIBOR+3.25% 4.67% 6,615
 6,583
 6,677
SHO Holding I Corporation Footwear First Lien 10/27/2022 LIBOR+5% (1% floor) 6.42% 8,573
 8,545
 8,273
TravelClick, Inc. (3) Internet software & services Second Lien 11/6/2021 LIBOR+7.75% (1% floor) 9.32% 5,127
 5,127
 5,153
TV Borrower US, LLC Integrated telecommunications services First Lien 2/22/2024 LIBOR+4.75% (1% floor) 6.44% 2,034
 2,025
 2,045
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien 9/24/2021 LIBOR+7% (1% floor) 8.57% 12,965
 12,838
 12,965
Vubiquity, Inc. Application software First Lien 8/12/2021 LIBOR+5.5% (1% floor) 7.19% 2,646
 2,630
 2,626
            $249,967
 $255,973
 $239,601
Portfolio CompanyIndustryType of InvestmentIndexSpreadCash Interest Rate (1)(2)PIKMaturity DateSharesPrincipalCostFair Value (3)Notes
Indivior Finance S.À.R.L.PharmaceuticalsFirst Lien Term LoanSOFR+5.25%10.75%6/30/2026$7,350 $7,260 $7,359 
INW Manufacturing, LLCPersonal Care ProductsFirst Lien Term LoanL+5.75%11.29%3/25/20279,125 8,950 7,239 (4)
Iris Holding, Inc.Metal, Glass & Plastic ContainersFirst Lien Term LoanSOFR+4.75%9.90%6/28/20284,963 4,638 4,226 
LABL, Inc.Office Services & SuppliesFirst Lien Term LoanSOFR+5.00%10.20%10/29/20283,972 3,817 3,940 
LaserAway Intermediate Holdings II, LLCHealth Care ServicesFirst Lien Term LoanSOFR+5.75%11.08%10/14/20277,388 7,281 7,267 
Lightbox Intermediate, L.P.Real Estate ServicesFirst Lien Term LoanSOFR+5.00%10.50%5/9/202611,279 11,121 10,997 (4)
LogMeIn, Inc.Application SoftwareFirst Lien Term LoanL+4.75%9.94%8/31/20277,800 7,705 4,918 
LTI Holdings, Inc.Electronic ComponentsFirst Lien Term LoanSOFR+3.50%8.72%9/6/20257,308 7,246 7,037 
McAfee Corp.Systems SoftwareFirst Lien Term LoanSOFR+3.75%9.01%3/1/20295,955 5,655 5,713 
Mindbody, Inc.Internet Services & InfrastructureFirst Lien Term LoanL+7.00%12.19%2/14/20254,669 4,644 4,599 (4)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien RevolverL+8.00%2/14/2025— (3)(7)(4)(5)
Mitchell International IncApplication SoftwareFirst Lien Term LoanL+3.75%8.94%10/15/20282,991 2,845 2,931 
MRI Software LLCApplication SoftwareFirst Lien Term LoanSOFR+5.50%10.84%2/10/20268,340 8,172 8,111 (4)
MRI Software LLCApplication SoftwareFirst Lien RevolverSOFR+5.50%2/10/2026— (3)(9)(4)(5)
MRI Software LLCApplication SoftwareFirst Lien Term LoanSOFR+5.50%10.84%2/10/20262,217 2,216 2,156 (4)
Northern Star Industries Inc.Electrical Components & EquipmentFirst Lien Term LoanSOFR+4.50%10.00%3/31/20256,633 6,624 6,583 
OEConnection LLCApplication SoftwareFirst Lien Term LoanL+4.00%9.25%9/25/202611,015 10,845 10,852 
Park Place Technologies, LLCInternet Services & InfrastructureFirst Lien Term LoanSOFR+5.00%10.20%11/10/20279,849 9,495 9,603 (4)
Planview Parent, Inc.Application SoftwareFirst Lien Term LoanSOFR+4.00%9.50%12/17/20272,422 2,297 2,305 
Planview Parent, Inc.Application SoftwareSecond Lien Term LoanSOFR+7.25%12.59%12/18/20284,503 4,435 4,023 (4)
Pluralsight, LLCApplication SoftwareFirst Lien Term LoanSOFR+8.00%13.04%4/6/20278,116 7,831 7,815 (4)
Pluralsight, LLCApplication SoftwareFirst Lien RevolverSOFR+8.00%13.04%4/6/2027254 236 235 (4)(5)
Renaissance Holding Corp.Education ServicesFirst Lien Term LoanSOFR+4.75%9.99%4/5/20305,000 4,855 4,948 
RevSpring, Inc.Commercial PrintingFirst Lien Term LoanL+4.00%9.50%10/11/20259,550 9,536 9,208 
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.25%10.52%4/27/20248,135 8,132 5,749 
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.23%10.50%4/27/2024138 138 100 
SM Wellness Holdings, Inc.Health Care ServicesFirst Lien Term LoanSOFR+4.75%9.97%4/17/20282,985 2,564 2,768 (4)
Sorenson Communications, LLCCommunications EquipmentFirst Lien Term LoanL+5.50%10.69%3/17/20262,328 2,305 2,166 (4)
Spanx, LLCApparel RetailFirst Lien Term LoanSOFR+5.50%10.70%11/20/20288,865 8,729 8,655 (4)
SPX Flow, Inc.Industrial Machinery & Supplies & ComponentsFirst Lien Term LoanSOFR+4.50%9.70%4/5/20298,801 8,426 8,710 
TIBCO Software Inc.Application SoftwareFirst Lien Term LoanSOFR+4.50%9.84%3/30/20298,235 7,548 7,722 (4)
Touchstone Acquisition, Inc.Health Care SuppliesFirst Lien Term LoanSOFR+6.00%11.20%12/29/20287,230 7,116 7,050 (4)
Veritas US Inc.Application SoftwareFirst Lien Term LoanL+5.00%10.22%9/1/20256,322 6,266 5,185 
Windstream Services II, LLCIntegrated Telecommunication ServicesFirst Lien Term LoanSOFR+6.25%11.45%9/21/20277,757 7,570 7,263 (4)
WP CPP Holdings, LLCAerospace & DefenseFirst Lien Term LoanL+3.75%9.03%4/30/20251,970 1,917 1,791 (4)
Total Portfolio Investments$350,214 $348,782 $329,809 
___________________
(1) Represents the interest rate as of December 31, 2017.June 30, 2023. All interest rates are payable in cash, unless otherwise noted.
(2) Represents the current determination of fair value as of December 31, 2017 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(3) This investment is held by both the Company and SLF JV I as of December 31, 2017.
(4) The interest rate on the principal balance outstanding for allmost of the floating rate loans is indexed to SOFR, 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 ratereference rates 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.
46
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









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, 2023, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 5.19%, the 90-day LIBOR at 5.54 %, the 180-day LIBOR at 5.73%, the 30-day SOFR at 5.10%, and the 90-day SOFR at 5.24%. 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, 2023 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the valuation process described elsewhere herein.
(4) This investment was held by both the Company and SLF JV I Portfolio as of SeptemberJune 30, 20172023.
(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.
47
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)









SLF JV I Portfolio as of September 30, 2022

Portfolio CompanyIndustryType of InvestmentIndexSpreadCash Interest Rate (1)(2)PIKMaturity DateSharesPrincipalCostFair Value (3)Notes
Access CIG, LLCDiversified Support ServicesFirst Lien Term LoanL+3.75%6.82%2/27/2025$10,093 $10,028 $9,692 
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.25%9.80%12/18/20258,518 8,389 8,371 (4)
Altice France S.A.Integrated Telecommunication ServicesFirst Lien Term LoanL+4.00%6.91%8/14/20263,000 2,841 2,730 
Alvogen Pharma US, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+7.50%11.20%6/30/20259,267 9,166 9,221 (4)
American Tire Distributors, Inc.DistributorsFirst Lien Term LoanL+6.25%9.03%10/20/20284,873 4,812 4,576 (4)
Amplify Finco Pty Ltd.Movies & EntertainmentFirst Lien Term LoanL+4.25%7.92%11/26/20267,800 7,722 7,527 (4)
Anastasia Parent, LLCPersonal ProductsFirst Lien Term LoanL+3.75%7.42%8/11/20251,539 1,203 1,232 (4)
Apptio, Inc.Application SoftwareFirst Lien Term LoanL+6.00%8.46%1/10/20254,615 4,580 4,519 (4)
Apptio, Inc.Application SoftwareFirst Lien RevolverL+6.00%8.46%1/10/2025154 151 146 (4)(5)
ASP-R-PAC Acquisition Co LLCPaper PackagingFirst Lien Term LoanL+6.00%9.67%12/29/20274,176 4,103 4,080 
ASP-R-PAC Acquisition Co LLCPaper PackagingFirst Lien RevolverL+6.00%12/29/2027(9)(11)(5)
Astra Acquisition Corp.Application SoftwareFirst Lien Term LoanL+5.25%8.37%10/25/20285,052 4,858 4,319 (4)
Asurion, LLCProperty & Casualty InsuranceFirst Lien Term LoanSOFR+4.00%7.70%8/19/20285,000 4,753 4,276 
Asurion, LLCProperty & Casualty InsuranceSecond Lien Term LoanL+5.25%8.37%1/20/20294,346 3,981 3,347 
Aurora Lux Finco S.À.R.L.Airport ServicesFirst Lien Term LoanL+6.00%8.78%12/24/20266,338 6,242 6,027 (4)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanL+5.00%8.12%6/11/20276,371 6,311 6,148 
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanL+5.00%8.12%6/11/20271,771 1,751 1,664 (4)(5)
Blackhawk Network Holdings, Inc.Data Processing & Outsourced ServicesFirst Lien Term LoanL+3.00%6.03%6/15/20259,575 9,566 8,977 
BYJU's Alpha, Inc.Application SoftwareFirst Lien Term LoanL+6.00%8.98%11/24/20267,444 7,347 5,455 
C5 Technology Holdings, LLCData Processing & Outsourced ServicesCommon Stock171 — — (4)
C5 Technology Holdings, LLCData Processing & Outsourced ServicesPreferred Equity7,193,540 7,194 5,683 (4)
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien Term LoanSOFR+5.50%9.12%8/10/20274,358 4,286 4,280 
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien Term LoanSOFR+5.50%9.12%8/10/2027449 432 413 
Centerline Communications, LLCWireless Telecommunication ServicesFirst Lien RevolverSOFR+5.50%8/10/2027— (10)(11)(5)
CITGO Petroleum Corp.Oil & Gas Refining & MarketingFirst Lien Term LoanL+6.25%9.37%3/28/20247,038 6,967 7,057 (4)
City Football Group LimitedMovies & EntertainmentFirst Lien Term LoanL+3.50%6.48%7/21/20286,451 6,419 6,166 
Convergeone Holdings, Inc.IT Consulting & Other ServicesFirst Lien Term LoanL+5.00%8.12%1/4/20267,373 7,206 5,320 (4)
Covetrus, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+5.00%7.65%9/20/20295,375 5,053 5,035 (4)
Curium Bidco S.à.r.l.BiotechnologyFirst Lien Term LoanL+4.00%7.67%7/9/20265,820 5,776 5,587 
Dealer Tire, LLCDistributorsFirst Lien Term LoanL+4.25%7.37%12/12/20252,992 2,935 2,924 
Delivery Hero FinCo LLCInternet & Direct Marketing RetailFirst Lien Term LoanSOFR+5.75%8.49%8/12/20276,035 5,876 5,756 (4)
DirecTV Financing, LLCCable & SatelliteFirst Lien Term LoanL+5.00%8.12%8/2/20276,436 6,332 6,012 (4)
Domtar CorporationPaper ProductsFirst Lien Term LoanL+5.50%8.26%11/30/20284,100 4,065 3,921 
DTI Holdco, Inc.Research & Consulting ServicesFirst Lien Term LoanSOFR+4.75%7.33%4/26/20298,000 7,849 7,616 (4)
Eagle Parent Corp.Industrial MachineryFirst Lien Term LoanSOFR+4.25%7.80%4/2/20294,478 4,373 4,367 
eResearch Technology, Inc.Application SoftwareFirst Lien Term LoanL+4.50%7.62%2/4/20277,331 7,258 6,859 
48
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
Portfolio CompanyIndustryType of InvestmentIndexSpreadCash Interest Rate (1)(2)PIKMaturity DateSharesPrincipalCostFair Value (3)Notes
Gibson Brands, Inc.Leisure ProductsFirst Lien Term LoanL+5.00%7.94%8/11/2028$7,444 $7,369 $6,029 
Global Medical Response, Inc.Health Care ServicesFirst Lien Term LoanL+4.25%7.37%3/14/20251,979 1,979 1,722 (4)
Global Medical Response, Inc.Health Care ServicesFirst Lien Term LoanL+4.25%6.81%10/2/20252,192 2,165 1,912 
Harbor Purchaser Inc.Education ServicesFirst Lien Term LoanSOFR+5.25%8.38%4/9/20298,000 7,774 7,310 (4)
Indivior Finance S.À.R.L.PharmaceuticalsFirst Lien Term LoanL+5.25%8.80%6/30/20267,406 7,293 7,286 
INW Manufacturing, LLCPersonal ProductsFirst Lien Term LoanL+5.75%9.42%3/25/20279,500 9,282 8,408 (4)
Iris Holding, Inc.Metal & Glass ContainersFirst Lien Term LoanSOFR+4.75%7.89%6/28/20285,000 4,624 4,610 
LaserAway Intermediate Holdings II, LLCHealth Care ServicesFirst Lien Term LoanL+5.75%8.23%10/14/20277,444 7,318 7,323 
Lightbox Intermediate, L.P.Real Estate ServicesFirst Lien Term LoanL+5.00%8.67%5/9/20267,367 7,315 7,109 (4)
LogMeIn, Inc.Application SoftwareFirst Lien Term LoanL+4.75%7.80%8/31/20277,860 7,751 5,494 
LTI Holdings, Inc.Electronic ComponentsFirst Lien Term LoanL+3.25%6.37%9/6/20257,366 7,282 6,835 
Mindbody, Inc.Internet Services & InfrastructureFirst Lien Term LoanL+7.00%10.64%2/14/20254,687 4,651 4,570 (4)
Mindbody, Inc.Internet Services & InfrastructureFirst Lien RevolverL+8.00%2/14/2025— (4)(12)(4)(5)
MRI Software LLCApplication SoftwareFirst Lien Term LoanL+5.50%9.17%2/10/20266,139 6,104 5,966 (4)
MRI Software LLCApplication SoftwareFirst Lien RevolverL+5.50%2/10/2026(3)(10)(4)(5)
Northern Star Industries Inc.Electrical Components & EquipmentFirst Lien Term LoanL+4.75%7.87%3/31/20256,685 6,673 6,484 
OEConnection LLCApplication SoftwareFirst Lien Term LoanL+4.00%7.12%9/25/20267,777 7,741 7,505 (4)
Park Place Technologies, LLCInternet Services & InfrastructureFirst Lien Term LoanSOFR+5.00%8.13%11/10/20274,925 4,781 4,687 (4)
Peloton Interactive, Inc.Leisure ProductsFirst Lien Term LoanSOFR+6.50%8.35%5/25/20275,486 5,251 5,371 
Planview Parent, Inc.Application SoftwareSecond Lien Term LoanL+7.25%10.92%12/18/20284,503 4,435 4,323 (4)
Pluralsight, LLCApplication SoftwareFirst Lien Term LoanL+8.00%10.68%4/6/20276,796 6,694 6,582 (4)
Pluralsight, LLCApplication SoftwareFirst Lien RevolverL+8.00%4/6/2027— (6)(13)(4)(5)
RevSpring, Inc.Commercial PrintingFirst Lien Term LoanL+4.00%7.67%10/11/20259,625 9,607 9,304 
Sabert CorporationMetal & Glass ContainersFirst Lien Term LoanL+4.50%7.63%12/10/20262,536 2,511 2,435 (4)
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.25%8.06%4/27/20248,201 8,194 7,176 
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.23%8.04%4/27/2024138 138 121 
Sorenson Communications, LLCCommunications EquipmentFirst Lien Term LoanL+5.50%9.17%3/17/20262,553 2,528 2,454 
Spanx, LLCApparel RetailFirst Lien Term LoanL+5.25%8.30%11/20/20288,933 8,776 8,721 (4)
SPX Flow, Inc.Industrial MachineryFirst Lien Term LoanSOFR+4.50%7.63%4/5/20297,500 7,184 6,966 (4)
Supermoose Borrower, LLCApplication SoftwareFirst Lien Term LoanL+3.75%7.42%8/29/20257,743 7,479 6,827 (4)
Surgery Center Holdings, Inc.Health Care FacilitiesFirst Lien Term LoanL+3.75%6.51%8/31/20263,377 3,365 3,213 
TIBCO Software Inc.Application SoftwareFirst Lien Term LoanSOFR+4.50%8.15%3/30/20296,256 5,693 5,629 (4)
Touchstone Acquisition, Inc.Health Care SuppliesFirst Lien Term LoanL+6.00%9.12%12/29/20287,285 7,155 7,140 (4)
Veritas US Inc.Application SoftwareFirst Lien Term LoanL+5.00%8.67%9/1/20256,365 6,290 5,087 
Windstream Services II, LLCIntegrated Telecommunication ServicesFirst Lien Term LoanL+6.25%9.37%9/21/20277,818 7,596 7,115 (4)
WP CPP Holdings, LLCAerospace & DefenseSecond Lien Term LoanL+7.75%10.56%4/30/20266,000 5,972 5,070 (4)
WP CPP Holdings, LLCAerospace & DefenseFirst Lien Term LoanL+3.75%6.56%4/30/20251,985 1,910 1,783 (4)
Zayo Group Holdings, Inc.Alternative CarriersFirst Lien Term LoanL+3.00%6.12%3/9/20272,155 2,000 1,812 
Total Portfolio Investments$383,194 $382,673 $359,625 
__________
49
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




_________
(1) Represents the interest rate as of September 30, 2017.2022. 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 September 30, 2022, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 3.12%, the 90-day LIBOR at 3.67%, the 30-day SOFR at 3.03%, the 90-day SOFR at 3.55% and the 180-day SOFR at 3.98%. 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 September 30, 20172022 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, 2017.2022.
(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)




Both the cost and fair value of the Company's SLF JV I Notes were $112.7 million as of June 30, 2023. Both the cost and fair value of the Company's SLF JV I Notes were $96.3 million as of September 30, 2022. The Company earned interest income of $3.4 million and $9.2 million on the SLF JV I Notes for the three and nine months ended June 30, 2023, respectively. 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. As of June 30, 2023, 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 $54.8 million and $28.0 million, respectively, as of June 30, 2023, and $49.3 million and $20.7 million, respectively, as of September 30, 2022. The Company earned $1.1 million and $3.2 million in dividend income for the three and nine months ended June 30, 2023, respectively, with respect to its investment in the LLC equity interests of SLF JV I. 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 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, 2023 and September 30, 2022 and for the three and nine months ended June 30, 2023 and 2022:
June 30, 2023September 30, 2022
Selected Balance Sheet Information:
Investments at fair value (cost June 30, 2023:$348,782; cost September 30, 2022: $382,673)$329,809 $359,625 
Cash and cash equivalents21,906 14,274 
Restricted cash8,715 5,642 
Other assets9,798 5,686 
Total assets$370,228 $385,227 
Senior credit facility payable$200,000 $230,000 
SLF JV I Notes payable at fair value (proceeds June 30, 2023: $128,750; proceeds September 30, 2022: $110,000)128,750 110,000 
Other liabilities9,509 21,539 
Total liabilities$338,259 $361,539 
Members' equity31,969 23,688 
Total liabilities and members' equity$370,228 $385,227 
Three months ended June 30, 2023Three months ended June 30, 2022Nine months ended June 30, 2023Nine months ended June 30, 2022
Selected Statements of Operations Information:
Interest income$10,312 $5,796 $29,106 $16,664 
Other income— 32 62 105 
Total investment income10,312 5,828 29,168 16,769 
Senior credit facility interest expense4,190 1,929 12,004 4,995 
SLF JV I Notes interest expense3,859 2,224 10,511 6,673 
Other expenses73 77 249 198 
Total expenses (1)8,122 4,230 22,764 11,866 
Net investment income2,190 1,598 6,404 4,903 
Net unrealized appreciation (depreciation)2,652 (16,411)4,075 (19,856)
Net realized gains (losses)(2,137)165 (4,850)568 
Net income (loss)$2,705 $(14,648)$5,629 $(14,385)
 __________
(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 ("ASC 825"). 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, 2023, the Company sold $18.8 million of senior secured debt investments to SLF JV I for $18.0 million cash consideration, which represented the fair value at the time of sale. A loss of $0.2 million was recognized by the Company on these transactions. 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.
51
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, 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, 2023 and September 30, 2022, 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, 2023, had a reinvestment period end date and maturity date of May 3, 2024 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, 2023, bore interest at a rate equal to 3-month SOFR plus 2.50% per annum until November 3, 2023, 3-month SOFR plus 2.75% during the remainder of the reinvestment period, 3-month SOFR plus 3.25% for the first year after the end of the reinvestment period, 3-month SOFR plus 3.35% for the following year and 3-month SOFR plus 3.60% thereafter, in each case with a 0.125% SOFR floor. $66.1 million and $82.1 million of borrowings were outstanding under the Glick JV Deutsche Bank Facility as of June 30, 2023 and September 30, 2022, respectively.
As of June 30, 2023 and September 30, 2022, the Glick JV had total assets of $126.8 million and $146.8 million, respectively. The Glick JV's portfolio consisted of middle-market and other corporate debt securities of 37 and 43 portfolio companies as of June 30, 2023 and September 30, 2022, 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 $49.6 million and $50.3 million in the aggregate at fair value as of June 30, 2023 and September 30, 2022, 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, 2023 and September 30, 2022, 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, 2023 and September 30, 2022, of which $73.5 million was from the Company. As of each of June 30, 2023 and September 30, 2022, 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, 2023 and September 30, 2022, the Company had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million were unfunded.

52
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, 2023 and September 30, 2022:
June 30, 2023September 30, 2022
Senior secured loans (1)$123,126$143,225
Weighted average current interest rate on senior secured loans (2)10.66%8.52%
Number of borrowers in the Glick JV3743
Largest loan exposure to a single borrower (1)$6,313$6,562
Total of five largest loan exposures to borrowers (1)$28,457$28,973
__________
(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, 2023

Portfolio CompanyIndustryInvestment TypeIndexSpread Cash Interest Rate (1)(2)PIKMaturity DatePrincipalCostFair Value (3)Notes
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%12.00%12/18/2025$587 $579 $576 (4)
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanSOFR+6.50%12.00%12/18/20253,824 3,782 3,753 (4)
Alvogen Pharma US, Inc.PharmaceuticalsFirst Lien Term LoanSOFR+7.50%12.89%6/30/20256,313 6,261 6,029 (4)
American Rock Salt Company LLCDiversified Metals & MiningFirst Lien Term LoanSOFR+4.00%9.22%6/9/20282,485 2,367 2,346 
American Tire Distributors, Inc.DistributorsFirst Lien Term LoanSOFR+6.25%11.49%10/20/20282,868 2,832 2,502 (4)
Amplify Finco Pty Ltd.Movies & EntertainmentFirst Lien Term LoanSOFR+4.00%9.39%11/26/20262,903 2,873 2,895 
Amynta Agency Borrower Inc.Property & Casualty InsuranceFirst Lien Term LoanSOFR+5.00%10.20%2/28/20283,000 2,915 2,925 
Anastasia Parent, LLCPersonal Care ProductsFirst Lien Term LoanSOFR+3.75%9.25%8/11/2025910 707 702 (4)
ASP-R-PAC Acquisition Co LLCPaper & Plastic Packaging Products & MaterialsFirst Lien Term LoanSOFR+6.00%11.31%12/29/20271,721 1,695 1,635 (4)
ASP-R-PAC Acquisition Co LLCPaper & Plastic Packaging Products & MaterialsFirst Lien RevolverSOFR+6.00%12/29/2027— (3)(10)(4)(5)
Astra Acquisition Corp.Application SoftwareFirst Lien Term LoanL+5.25%10.44%10/25/20282,078 2,037 1,464 (4)
Asurion, LLCProperty & Casualty InsuranceFirst Lien Term LoanSOFR+4.00%9.20%8/19/20281,985 1,900 1,884 
Asurion, LLCProperty & Casualty InsuranceFirst Lien Term LoanSOFR+4.25%9.47%8/19/2028998 941 951 
Asurion, LLCProperty & Casualty InsuranceSecond Lien Term LoanSOFR+5.25%10.47%1/20/20292,423 2,236 2,039 
athenahealth Group Inc.Health Care TechnologyFirst Lien Term LoanSOFR+3.50%8.59%2/15/20291,777 1,674 1,715 
athenahealth Group Inc.Health Care TechnologyFirst Lien Term LoanSOFR+3.50%2/15/2029— (13)(8)(5)
Aurora Lux Finco S.À.R.L.Airport ServicesFirst Lien Term LoanL+6.00%11.27%12/24/20263,628 3,583 3,479 (4)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanSOFR+5.00%10.50%6/11/20273,372 3,340 3,284 (4)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanSOFR+5.00%10.50%6/11/2027802 798 782 (4)
Covetrus, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+5.00%10.24%10/13/20292,773 2,607 2,589 (4)
Curium Bidco S.à.r.l.BiotechnologyFirst Lien Term LoanL+4.00%9.54%7/9/20262,848 2,827 2,838 
DirecTV Financing, LLCCable & SatelliteFirst Lien Term LoanSOFR+5.00%10.22%8/2/20272,528 2,502 2,477 (4)
53
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Portfolio CompanyIndustryInvestment TypeIndexSpread Cash Interest Rate (1)(2)PIKMaturity DatePrincipalCostFair Value (3)Notes
DTI Holdco, Inc.Research & Consulting ServicesFirst Lien Term LoanSOFR+4.75%9.80%4/26/2029$2,978 $2,928 $2,779 (4)
Gibson Brands, Inc.Leisure ProductsFirst Lien Term LoanSOFR+5.00%10.25%8/11/20283,940 3,901 3,191 (4)
Harbor Purchaser Inc.Education ServicesFirst Lien Term LoanSOFR+5.25%10.45%4/9/20293,970 3,871 3,409 (4)
Indivior Finance S.À.R.L.PharmaceuticalsFirst Lien Term LoanSOFR+5.25%10.75%6/30/20263,920 3,872 3,925 
INW Manufacturing, LLCPersonal Care ProductsFirst Lien Term LoanL+5.75%11.29%3/25/20272,281 2,238 1,810 (4)
Iris Holding, Inc.Metal, Glass & Plastic ContainersFirst Lien Term LoanSOFR+4.75%9.90%6/28/20281,985 1,852 1,690 
LaserAway Intermediate Holdings II, LLCHealth Care ServicesFirst Lien Term LoanSOFR+5.75%11.08%10/14/20273,940 3,883 3,876 
LTI Holdings, Inc.Electronic ComponentsFirst Lien Term LoanSOFR+3.50%8.72%9/6/20251,347 1,224 1,297 
MRI Software LLCApplication SoftwareFirst Lien Term LoanSOFR+5.50%10.84%2/10/20261,634 1,621 1,589 (4)
MRI Software LLCApplication SoftwareFirst Lien RevolverSOFR+5.50%2/10/2026— (1)(4)(4)(5)
Northern Star Industries Inc.Electrical Components & EquipmentFirst Lien Term LoanSOFR+4.50%10.00%3/31/20255,211 5,205 5,172 
OEConnection LLCApplication SoftwareFirst Lien Term LoanL+4.00%9.25%9/25/20263,858 3,841 3,802 
Planview Parent, Inc.Application SoftwareFirst Lien Term LoanSOFR+4.00%9.50%12/17/2027685 649 652 
Planview Parent, Inc.Application SoftwareSecond Lien Term LoanSOFR+7.25%12.59%12/18/20282,842 2,799 2,539 (4)
Pluralsight, LLCApplication SoftwareFirst Lien Term LoanSOFR+8.00%13.04%4/6/20275,182 5,018 4,990 (4)
Pluralsight, LLCApplication SoftwareFirst Lien RevolverSOFR+8.00%13.04%4/6/2027180 169 167 (4)(5)
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.25%10.52%4/27/20246,045 6,039 4,272 
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.23%10.50%4/27/2024102 102 74 
Spanx, LLCApparel RetailFirst Lien Term LoanSOFR+5.50%10.70%11/20/20284,925 4,849 4,808 (4)
SPX Flow, Inc.Industrial Machinery & Supplies & ComponentsFirst Lien Term LoanSOFR+4.50%9.70%4/5/20295,227 5,023 5,174 
TIBCO Software Inc.Application SoftwareFirst Lien Term LoanSOFR+4.50%9.84%3/30/20292,647 2,435 2,483 (4)
Touchstone Acquisition, Inc.Health Care SuppliesFirst Lien Term LoanSOFR+6.00%11.20%12/29/20283,001 2,954 2,926 (4)
Tribe Buyer LLCHuman Resource & Employment ServicesFirst Lien Term LoanL+4.50%9.69%2/16/20241,570 1,570 931 
Windstream Services II, LLCIntegrated Telecommunication ServicesFirst Lien Term LoanSOFR+6.25%11.45%9/21/20274,848 4,731 4,539 (4)
WP CPP Holdings, LLCAerospace & DefenseFirst Lien Term LoanL+3.75%9.03%4/30/2025985 959 895 (4)
Total Portfolio Investments$123,126 $120,172 $113,833 
__________
(1) Represents the interest rate as of June 30, 2023. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for allmost of the floating rate loans is indexed to SOFR, 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 ratereference rates 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 June 30, 2023, the reference rates for the Glick JV's variable rate loans were the 30-day LIBOR at 5.19%, the 90-day LIBOR at 5.54%, the 30-day SOFR at 5.10% and the 90-day SOFR at 5.24%. 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.
(5)(3) Represents the current determination of fair value as of June 30, 2023 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the valuation process described elsewhere herein.
(4) This investment was on cash non-accrual statusheld by both the Company and the Glick JV as of SeptemberJune 30, 2017. Cash non-accrual status is inclusive of PIK and other non-cash2023.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income where applicable.
Both thewhich reduces cost andbasis, which may result in a negative cost basis. A negative fair value ofmay result from the Class A mezzanine secured deferrable floating rate notes of SLF JV I held by the Company were $100.8 million and $101.0 million as of December 31, 2017 and September 30, 2017, respectively. The Company earned interest of $1.8 million and $0.2 million on its investments in these notes for the three months ended December 31, 2017 and December 31, 2016, respectively. Both the cost and fair value of 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. The cost and fair value of the LLC equity interests in SLF JV I held by the Company was $16.2 million and $4.9 million, respectively, as of December 31, 2017, and $16.2 million and $5.5 million, respectively, as 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 for the three months ended December 31, 2016 with respect to the LLC equity interests of SLF 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.unfunded commitment being valued below par.
54
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)










Below is certain summarized financial information for SLF
Glick JV IPortfolio as of December 31, 2017 and September 30, 2017 and for the three months ended December 31, 2017 and December 31, 2016:2022

Portfolio CompanyIndustryInvestment TypeIndexSpread Cash Interest Rate (1)(2)PIKMaturity DatePrincipalCostFair Value (3)Notes
ADB Companies, LLCConstruction & EngineeringFirst Lien Term LoanL+6.25%9.80%12/18/2025$4,647 $4,579 $4,567 (4)
Alvogen Pharma IncPharmaceuticalsFirst Lien Term LoanSOFR+7.50%11.20%6/30/20256,562 6,489 6,529 (4)
American Tire Distributors, Inc.DistributorsFirst Lien Term LoanL+6.25%9.03%10/20/20282,889 2,853 2,714 (4)
Amplify Finco Pty Ltd.Movies & EntertainmentFirst Lien Term LoanL+4.25%7.92%11/26/20262,925 2,896 2,823 (4)
Anastasia Parent, LLCPersonal ProductsFirst Lien Term LoanL+3.75%7.42%8/11/2025917 712 734 (4)
ASP-R-PAC Acquisition Co LLCPaper PackagingFirst Lien Term LoanL+6.00%9.67%12/29/20271,734 1,704 1,694 
ASP-R-PAC Acquisition Co LLCPaper PackagingFirst Lien RevolverL+6.00%12/29/2027— (4)(5)(5)
Astra Acquisition Corp.Application SoftwareFirst Lien Term LoanL+5.25%8.37%10/25/20282,078 2,033 1,777 (4)
Asurion, LLCProperty & Casualty InsuranceFirst Lien Term LoanSOFR+4.00%7.70%8/19/20282,000 1,901 1,711 
Asurion, LLCProperty & Casualty InsuranceSecond Lien Term LoanL+5.25%8.37%1/20/20292,423 2,212 1,866 
Aurora Lux Finco S.À.R.L.Airport ServicesFirst Lien Term LoanL+6.00%8.78%12/24/20263,656 3,601 3,476 (4)
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanL+5.00%8.12%6/11/20273,398 3,366 3,279 
BAART Programs, Inc.Health Care ServicesFirst Lien Term LoanL+5.00%8.12%6/11/2027808 800 760 (4)(5)
BYJU's Alpha, Inc.Application SoftwareFirst Lien Term LoanL+6.00%8.98%11/24/20263,970 3,919 2,909 
CITGO Petroleum Corp.Oil & Gas Refining & MarketingFirst Lien Term LoanL+6.25%9.37%3/28/20243,519 3,484 3,529 (4)
City Football Group LimitedMovies & EntertainmentFirst Lien Term LoanL+3.50%6.48%7/21/20282,481 2,469 2,372 
Covetrus, Inc.Health Care DistributorsFirst Lien Term LoanSOFR+5.00%7.65%9/20/20292,280 2,143 2,136 (4)
Curium Bidco S.à.r.l.BiotechnologyFirst Lien Term LoanL+4.00%7.67%7/9/20262,870 2,849 2,756 
DirecTV Financing, LLCCable & SatelliteFirst Lien Term LoanL+5.00%8.12%8/2/20272,730 2,703 2,549 (4)
Domtar CorporationPaper ProductsFirst Lien Term LoanL+5.50%8.26%11/30/20282,503 2,478 2,394 
DTI Holdco, Inc.Research & Consulting ServicesFirst Lien Term LoanSOFR+4.75%7.33%4/26/20293,000 2,943 2,856 (4)
Eagle Parent Corp.Industrial MachineryFirst Lien Term LoanSOFR+4.25%7.80%4/2/20292,488 2,429 2,426 
eResearch Technology, Inc.Application SoftwareFirst Lien Term LoanL+4.50%7.62%2/4/20272,444 2,419 2,286 
Gibson Brands, Inc.Leisure ProductsFirst Lien Term LoanL+5.00%7.94%8/11/20283,970 3,930 3,216 
Harbor Purchaser Inc.Education ServicesFirst Lien Term LoanSOFR+5.25%8.38%4/9/20294,000 3,887 3,655 (4)
Indivior Finance S.À.R.L.PharmaceuticalsFirst Lien Term LoanL+5.25%8.80%6/30/20263,950 3,890 3,886 
INW Manufacturing, LLCPersonal ProductsFirst Lien Term LoanL+5.75%9.42%3/25/20272,375 2,320 2,102 (4)
Iris Holding, Inc.Metal & Glass ContainersFirst Lien Term LoanSOFR+4.75%7.89%6/28/20282,000 1,846 1,844 
LaserAway Intermediate Holdings II, LLCHealth Care ServicesFirst Lien Term LoanL+5.75%8.23%10/14/20273,970 3,903 3,905 
LTI Holdings, Inc.Electronic ComponentsFirst Lien Term LoanL+3.25%6.37%9/6/20251,358 1,192 1,260 
55
  December 31, 2017 September 30, 2017
Selected Balance Sheet Information:    
Investments in loans at fair value (cost December 31, 2017: $255,973; cost September 30, 2017: $251,648) $239,601
 $235,526
Receivables from secured financing arrangements at fair value (cost December 31, 2017: $9,787; cost September 30, 2017: $9,783) 8,334
 8,305
Cash and cash equivalents 28,386
 24,389
Restricted cash 4,100
 5,097
Other assets 4,117
 3,485
Total assets $284,538
 $276,802
     
Senior credit facilities payable $105,053
 $113,053
Debt securities payable at fair value (proceeds December 31, 2017: $146,572; proceeds September 30, 2017: $147,052) 146,572
 147,052
Other liabilities 27,407
 10,383
Total liabilities $279,032
 $270,488
Members' equity 5,506
 6,314
Total liabilities and members' equity $284,538
 $276,802

  Three months ended December 31, 2017 Three months ended December 31, 2016
Selected Statements of Operations Information:    
Interest income $4,728
 $6,759
Other income —
 308
Total investment income 4,728
 7,067
Interest expense 5,145
 6,014
Other expenses 161
 408
Total expenses (1) 5,306
 6,422
Net unrealized depreciation (226) (22,473)
Net realized gain (loss) (4) 22,708
Net income (loss) $(808) $880
 __________
(1) There are no management fees or incentive fees charged at SLF JV I.
SLF JV I has elected to fair value the debt securities issued to the Company and Kemper under ASC 825. The debt securities are valued based on the total assets less the total liabilities senior to the mezzanine notes of SLF JV I in an amount not exceeding par under the enterprise value technique.
During the three months ended December 31, 2017 and December 31, 2016, the Company did not sell any senior secured debt investments to SLF JV I.
Note 4. Fee Income
The Company receives a variety of fees in the ordinary course of business, including servicing, advisory, amendment, structuring and prepayment fees, which are classified as fee income and recognized as they are earned. The unearned fee income balance as of December 31, 2017 and September 30, 2017 was $1.1 million and $1.1 million, respectively.
As of December 31, 2017, the Company had a receivable for $1.5 million in aggregate exit fees of one portfolio investment, which are paid contingent upon the future occurrence of certain events in connection with the exit of this investment. A percentage of these fees are included in net investment income over the life of the loan.
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









Portfolio CompanyIndustryInvestment TypeIndexSpread Cash Interest Rate (1)(2)PIKMaturity DatePrincipalCostFair Value (3)Notes
MRI Software LLCApplication SoftwareFirst Lien Term LoanL+5.50%9.17%2/10/2026$1,647 $1,632 $1,600 (4)
MRI Software LLCApplication SoftwareFirst Lien RevolverL+5.50%2/10/2026— (1)(4)(4)(5)
Northern Star Industries Inc.Electrical Components & EquipmentFirst Lien Term LoanL+4.75%7.87%3/31/20255,252 5,243 5,095 
OEConnection LLCApplication SoftwareFirst Lien Term LoanL+4.00%7.12%9/25/20263,888 3,871 3,752 (4)
Planview Parent, Inc.Application SoftwareSecond Lien Term LoanL+7.25%10.92%12/18/20282,842 2,799 2,728 (4)
Pluralsight, LLCApplication SoftwareFirst Lien Term LoanL+8.00%10.68%4/6/20274,465 4,398 4,325 (4)
Pluralsight, LLCApplication SoftwareFirst Lien RevolverL+8.00%4/6/2027— (5)(10)(4)(5)
Sabert CorporationMetal & Glass ContainersFirst Lien Term LoanL+4.50%7.63%12/10/20261,691 1,674 1,623 (4)
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.25%8.06%4/27/20246,094 6,082 5,332 
SHO Holding I CorporationFootwearFirst Lien Term LoanL+5.23%8.04%4/27/2024102 102 90 
Spanx, LLCApparel RetailFirst Lien Term LoanL+5.25%8.30%11/20/20284,962 4,876 4,845 (4)
SPX Flow, Inc.Industrial MachineryFirst Lien Term LoanSOFR+4.50%7.63%4/5/20296,000 5,734 5,572 (4)
Supermoose Borrower, LLCApplication SoftwareFirst Lien Term LoanL+3.75%7.42%8/29/20252,820 2,712 2,487 (4)
Surgery Center Holdings, Inc.Health Care FacilitiesFirst Lien Term LoanL+3.75%6.51%8/31/20263,377 3,365 3,213 
TIBCO Software Inc.Application SoftwareFirst Lien Term LoanSOFR+4.50%8.15%3/30/20292,654 2,415 2,388 (4)
Touchstone Acquisition, Inc.Health Care SuppliesFirst Lien Term LoanL+6.00%9.12%12/29/20283,024 2,970 2,963 (4)
Tribe Buyer LLCHuman Resource & Employment ServicesFirst Lien Term LoanL+4.50%7.62%2/16/20241,583 1,582 1,266 
Windstream Services II, LLCIntegrated Telecommunication ServicesFirst Lien Term LoanL+6.25%9.37%9/21/20274,886 4,747 4,447 (4)
WP CPP Holdings, LLCAerospace & DefenseFirst Lien Term LoanL+3.75%6.56%4/30/2025993 955 892 (4)
WP CPP Holdings, LLCAerospace & DefenseSecond Lien Term LoanL+7.75%10.56%4/30/20263,000 2,986 2,534 (4)
Total Portfolio Investments$143,225 $140,083 $133,144 
__________
(1) Represents the interest rate as of September 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 LIBOR shown above is in U.S. dollars. As of September 30, 2022, the reference rates for the Glick JV's variable rate loans were the 30-day LIBOR at 3.12%, the 90-day LIBOR at 3.67%, the 30-day SOFR at 3.03% and the 90-day SOFR at 3.55%. 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 September 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 valuation process described elsewhere herein.
(4) This investment was held by both the Company and the Glick JV as of September 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.

The cost and fair value of the Company's aggregate investment in the Glick JV was $50.0 million and $49.6 million, respectively, as of June 30, 2023. The cost and fair value of the Company's aggregate investment in the Glick JV was $50.2 million and $50.3 million, respectively, as of September 30, 2022. For the three and nine months ended June 30, 2023, the Company's investment in the Glick JV Notes earned interest income of $1.8 million and $5.0 million, respectively. 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. The Company did not earn dividend income for the three and nine months ended June 30, 2023 and June 30, 2022 with respect to its investment in the LLC equity interest of the Glick JV. As of June 30, 2023, 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.
56
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




Below is certain summarized financial information for the Glick JV as of June 30, 2023 and September 30, 2022 and for the three and nine months ended June 30, 2023 and June 30, 2022:
June 30, 2023September 30, 2022
Selected Balance Sheet Information:
Investments at fair value (cost June 30, 2023: $120,172; September 30, 2022: $140,083)$113,833 $133,144 
Cash and cash equivalents8,895 7,021 
Restricted cash1,812 1,788 
Other assets2,284 4,855 
Total assets$126,824 $146,808 
Senior credit facility payable$66,082 $82,082 
Glick JV Notes payable at fair value (proceeds June 30, 2023: $66,684; September 30, 2022: $68,185)56,723 57,463 
Other liabilities4,019 7,263 
Total liabilities$126,824 $146,808 
Members' equity— — 
Total liabilities and members' equity$126,824 $146,808 
For the three months ended June 30, 2023For the three months ended June 30, 2022For the nine months ended June 30, 2023For the nine months ended June 30, 2022
Selected Statements of Operations Information:
Interest income$3,576 $2,416 $10,488 $6,796 
Fee income— 47 35 82 
Total investment income3,576 2,463 10,523 6,878 
Senior credit facility interest expense1,400 694 4,002 1,742 
Glick JV Notes interest expense1,577 860 4,394 2,479 
Other expenses70 59 148 127 
Total expenses (1)3,047 1,613 8,544 4,348 
Net investment income529 850 1,979 2,530 
Net unrealized appreciation (depreciation)431 (753)(159)(2,549)
Realized gain (loss)(960)(97)(1,820)19 
Net income (loss)$— $— $— $— 
__________
(1) There are no management fees or incentive fees charged at the Glick JV.
The Glick JV has elected to fair value the Glick JV Notes issued to the Company and GF Debt Funding under ASC 825. The Glick JV Notes are valued based on the total assets less the liabilities senior to the Glick JV Notes in an amount not exceeding par under the EV technique.

During the three and nine months ended June 30, 2023 and 2022, the Company did not sell any debt investments to the Glick JV.
57
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Note 4. Fee Income
For the three and nine months ended December 31, 2017,June 30, 2023, the Company recorded total fee income of $1.0$1.6 million $0.1and $6.0 million, respectively, of which $0.2 million and $0.8 million, respectively, was recurring in nature. For the three and nine months ended December 31, 2016,June 30, 2022, the Company recorded total fee income of $3.6$2.3 million $0.8and $5.1 million, respectively, of which $0.2 million and $0.7 million, respectively, was recurring in nature. Recurring fee income primarily consistsconsisted of servicing fees and certain exit fees.


Note 5. Share Data and DistributionsNet Assets
The share and per share information for periods prior to March 31, 2023 disclosed in Note 5 have been retroactively adjusted to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.
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, 2023 and 2016:2022:
(Share amounts in thousands)Three months ended
June 30, 2023		Three months ended
June 30, 2022		Nine months ended
June 30, 2023		Nine months ended
June 30, 2022
Earnings (loss) per common share — basic and diluted:
Net increase (decrease) in net assets resulting from operations$36,685 $(37,834)$71,379 $16,015 
Weighted average common shares outstanding — basic and diluted77,080 61,123 70,431 60,593 
Earnings (loss) per common share — basic and diluted$0.48 $(0.62)$1.01 $0.26 

58
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)
Changes in Net Assets


The following table presents the changes in net assets for the three and nine months ended June 30, 2023:
Common Stock
(Share amounts in thousands)SharesPar ValueAdditional paid-in-capitalAccumulated Overdistributed EarningsTotal Net Assets
Balance as of September 30, 202261,125 $611 $1,827,721 $(582,769)$1,245,563 
Net investment income— ——38,80838,808
Net unrealized appreciation (depreciation)———(22,982)(22,982)
Net realized gains (losses)———(3,203)(3,203)
(Provision) benefit for taxes on realized and unrealized gains (losses)———549549
Distributions to stockholders———(58,679)(58,679)
Issuance of common stock under dividend reinvestment plan9511,932—1,933
Balance as of December 31, 202261,220 $612 $1,829,653 $(628,276)$1,201,989 
Net investment income— ——45,97845,978
Net unrealized appreciation (depreciation)———(18,279)(18,279)
Net realized gains (losses)———(6,111)(6,111)
(Provision) benefit for taxes on realized and unrealized gains (losses)———(66)(66)
Distributions to stockholders———(42,395)(42,395)
Issuance of common stock in connection with the OSI2 Merger15,860159333,875—334,034
Issuance of common stock under dividend reinvestment plan6811,294—1,295
Repurchase of common stock under dividend reinvestment plan(68)(1)(1,294)—(1,295)
Balance as of March 31, 202377,080 $771 $2,163,528 $(649,149)$1,515,150 
Net investment income— ——48,41348,413
Net unrealized appreciation (depreciation)———(1,039)(1,039)
Net realized gains (losses)———(10,603)(10,603)
(Provision) benefit for taxes on realized and unrealized gains (losses)———(86)(86)
Distributions to stockholders———(42,394)(42,394)
Issuance of common stock under dividend reinvestment plan5711,122—1,123
Repurchase of common stock under dividend reinvestment plan(57)(1)(1,122)—(1,123)
Balance as of June 30, 202377,080 $771 $2,163,528 $(654,858)$1,509,441 
59
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 changes in net assets for the three and nine months ended June 30, 2022:
Common Stock
SharesPar ValueAdditional paid-in-capitalAccumulated Overdistributed EarningsTotal Net Assets
Balance as of September 30, 202160,120 $601 $1,805,557 $(493,335)$1,312,823 
Net investment income———32,29532,295
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 plan361785—786
Balance as of December 31, 202160,156 $602 $1,806,342 $(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" offering877919,370—19,379
Issuance of common stock under dividend reinvestment plan35—766—766
Balance as of March 31, 202261,068 $611 $1,826,478 $(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" offering57—1,243—1,243
Issuance of common stock under dividend reinvestment plan441873—874
Repurchases of common stock under dividend reinvestment plan(44)(1)(873)—(874)
Balance as of June 30, 202261,125 $611 $1,827,721 $(564,803)$1,263,529 


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 20172022 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 20172022 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.
60
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









The following table 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, 2023 and 2016:2022:
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
DistributionDate DeclaredRecord DatePayment DateAmount
per Share		Cash
Distribution (3)		DRIP Shares
Issued		DRIP Shares
Value (3)
QuarterlyNovember 10, 2022December 15, 2022December 30, 2022$0.54 $32.0 million53,369 (1)$1.1 million
SpecialNovember 10, 2022December 15, 2022December 30, 20220.42 24.8 million41,510 (1)0.8 million
QuarterlyJanuary 27, 2023March 15, 2023March 31, 20230.55 41.1 million68,412 (2)1.3 million
QuarterlyApril 28, 2023June 15, 2023June 30, 20230.55 41.3 million57,279 (2)1.1 million
Total for the nine months ended June 30, 2023$2.06 $139.1 million220,570 $4.4 million
DistributionDate DeclaredRecord DatePayment DateAmount
per Share		Cash
Distribution		DRIP Shares
Issued		DRIP Shares
Value (3)
QuarterlyOctober 13, 2021December 15, 2021December 31, 2021$0.465 $27.2 million35,990 (1)$0.8 million
QuarterlyJanuary 28, 2022March 15, 2022March 31, 20220.48 28.5 million34,804 (1)0.8 million
QuarterlyApril 29, 2022June 15, 2022June 30, 20220.495 29.4 million43,676 (2)0.9 million
Total for the nine months ended June 30, 2022$1.44 $85.1 million114,470 $2.4 million
 __________
(1) New shares were issued and distributed.
(2) Shares were purchased on the open market and distributed.
(2)(3) Totals domay not sum due to rounding.


Common Stock OfferingIssuances
There were noOn January 23, 2023, in connection with the OSI2 Merger, the Company issued an aggregate of 15,860,200 shares of common stock offerings during the three months ended December 31, 2017 and December 31, 2016.
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.former OSI2 stockholders. During the three and nine months ended December 31, 2016,June 30, 2023, the Company repurchased 2,298,247issued zero and 94,879 shares of its common stock, respectively, as part of the DRIP. During the three and nine months ended June 30, 2022, the Company issued an aggregate of zero and 70,794 shares of common stock, respectively, 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. The equity distribution agreement was amended on February 8, 2023 to allow for $12.5the sale of shares of the Company’s common stock having an aggregate offering price of up to $125 million including commissions, under the Company’s current registration statement. Sales of the common stock repurchase plan. This authorization has been fully utilized.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 did not issue or sell any shares of common stock during the nine months ended June 30, 2023. In connection with the "at the market" offering, the Company issued and sold 2,801,206 shares of common stock during the nine months ended June 30, 2022 for net proceeds of $20.6 million (net of offering costs).
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.
61
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.

As of June 30, 2023, the size of the Syndicated Facility was $1.218 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, 2023, (i) the period during which the Company may make drawings with respect to $1.035 billion of commitments will expire on June 23, 2027 and the maturity date is June 23, 2028, (ii) the period during which the Company may make drawings with respect to the remaining commitments will expire on May 4, 2025 and the maturity date is May 4, 2026 and (iii) the interest rate margin for (a) SOFR loans (which may be 1- or 3-month, at the Company’s option) was 2.00% plus a SOFR adjustment which ranges between 0.11448% and 0.26161% 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 OSI 2 Senior Lending SPV, LLC) or investments in certain portfolio companies of the Company) and guaranteed by certain subsidiaries of the Company. As of June 30, 2023, except for assets that were held by OSI 2 Senior Lending SPV, 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, 2023, 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, 2023 and September 30, 2022, the Company had $205.0$800.0 million and $540.0 million of borrowings outstanding under the ING facility,Syndicated Facility, respectively, which had a fair value of $205.0 million.$800.0 million and $540.0 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%6.584% and 2.945%2.406% for the period from October 1, 2017 to November 30, 2017 and the threenine months ended December 31, 2016,June 30, 2023 and 2022, respectively. For the three and nine months ended December 31, 2017,June 30, 2023, the Company recorded interest expense (inclusive of $2.7fees) of $14.3 million in the aggregate,and $37.4 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, 2022, the Company recorded interest expense (inclusive of $4.2fees) of $4.8 million and $12.6 million, respectively, related to the Prior INGSyndicated Facility.
SumitomoCitibank Facility
On September 16, 2011, Funding II, a consolidated wholly-owned bankruptcy remote, special purpose subsidiary ofMarch 19, 2021, 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.
Priorthereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian. On May 25, 2023, in connection with an amendment to itsthe OSI2 Citibank Facility, the Citibank Facility was terminated. In connection with the termination on November 24, 2017,of the Sumitomo facility permitted up to $125Citibank Facility, the Company accelerated $0.6 million of borrowings (subject to collateral requirements). Borrowings under the Sumitomo facility boredeferred financing costs into 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 periodexpense during which the Company could have made and reinvested borrowings under the facility expired on September 16, 2017. On November 24, 2017, Funding II, as the borrower under the Sumitomo facility, repaid all outstanding borrowings thereunder, following which the Sumitomo facility was terminated. Obligations under the Sumitomo facility would have otherwise matured on the earlier of August 6, 2018 or the date on which the Prior ING Facility was repaid, refinanced or terminated. As of December 31, 2017, the Company had no borrowings outstanding under the Sumitomo facility. During the three months ended December 31, 2017,June 30, 2023.
As of September 30, 2022, the Company expensed $0.5had $160.0 million outstanding under the Citibank Facility, which had a fair value of unamortized deferred financing costs related to the Sumitomo Facility.
$160.0 million. The Company's borrowings under the Sumitomo facilityCitibank Facility bore interest at a weighted average interest rate of 3.501%6.762% and 2.784%2.563% for the period from October 1, 2017 through termination on November 24, 2017 and the threenine months ended December 31, 2016,June 30, 2023 and 2022, respectively. For the three and nine months ended December 31, 2017 and 2016,June 30, 2023, the Company recorded interest expense (inclusive of $0.7fees) of $2.4 million including $0.6 million of debt issuance costs that were expensed, and $0.6$8.0 million, respectively, related to the Sumitomo facility.
62
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









to the Citibank Facility. For the three and nine months ended June 30, 2022, the Company recorded interest expense (inclusive of fees) of $1.6 million and $3.5 million, respectively, related to the Citibank Facility.
SBIC SubsidiariesOSI2 Citibank Facility
On February 3, 2010, the Company's consolidated, wholly-owned subsidiary, FSMP IV, receivedJanuary 23, 2023, as a license, effective February 1, 2010, from the SBA to operate as an SBIC under Section 301(c)result of the Small Business Investment Actconsummation of 1958,the OSI2 Merger, the Company became party to a revolving credit facility (as amended and/or restated from time to time, the “OSI2 Citibank Facility”) with OSI 2 Senior Lending SPV, LLC (“OSI 2 SPV”), the Company’s wholly-owned and consolidated subsidiary, as amended. On May 15, 2012, the Company's consolidated, wholly-owned subsidiary, FSMP V, received a license, effective May 10, 2012,borrower, the Company, as collateral manager, each of the lenders from the SBAtime to operatetime party thereto, Citibank, N.A., as an SBIC.administrative agent, and Deutsche Bank Trust Company Americas, as collateral agent.
As of December 31, 2017June 30, 2023, the Company was able to borrow up to $400 million under the OSI2 Citibank Facility (subject to borrowing base and Septemberother limitations). As of June 30, 2017, FSMP IV2023, the OSI2 Citibank Facility has a reinvestment period through May 25, 2025, during which advances may be made, and FSMP V had no SBA-guaranteed debentures outstanding,matures on January 26, 2027. Following the reinvestment period, OSI 2 SPV will be required to make certain mandatory amortization payments. Borrowings under the OSI2 Citibank Facility bear interest payable quarterly at a rate per year equal to (a) in the case of a lender that is identified as a conduit lender, the lesser of (i) the applicable commercial paper rate for such conduit lender and (ii) SOFR plus 2.00% per annum on broadly syndicated loans and 2.75% on all other eligible loans and (b) for all other lenders, SOFR plus 2.00% per annum on broadly syndicated loans and 2.75% per annum on all other eligible loans, in all cases subject to a minimum overall rate of SOFR plus 2.50% per annum. After the reinvestment period, the applicable spread is 4.00% per year. There is also a non-usage fee of 0.50% per year on the unused portion of the OSI2 Citibank Facility, payable quarterly; provided that if the unused portion of the OSI2 Citibank Facility is greater than 30% of the commitments under the OSI2 Citibank Facility, the non-usage fee will be based on an unused portion of 30% of the commitments under the OSI2 Citibank Facility. The OSI2 Citibank Facility is secured by a first priority security interest in substantially all of OSI 2 SPV’s assets. As part of the OSI2 Citibank Facility, OSI 2 SPV is subject to certain limitations as to how borrowed funds may be used and the types of loans that are eligible to be acquired by OSI 2 SPV including restrictions on sector concentrations, loan size, tenor and minimum investment ratings (or estimated ratings). The OSI2 Citibank Facility also contains certain requirements relating to interest coverage, collateral quality and portfolio performance, certain violations of which could result in the acceleration of the amounts due under the OSI2 Citibank Facility.
As of June 30, 2023, the Company had commenced actions to surrender$335.0 million outstanding under the license for FSMP IV and FSMP V toOSI2 Citibank Facility, which had a fair value of $335.0 million. 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 carriedOSI2 Citibank Facility bore interest at a weighted average interest rate of 3.348% (excluding7.275% for the SBA annual charge).period from January 23, 2023 to June 30, 2023. For the three months ended December 31, 2016,June 30, 2023 and the period from January 23, 2023 to June 30, 2023, the Company recorded aggregate interest expense (inclusive of $2.2fees) of $4.9 million and $8.0 million, respectively, related to the SBA-guaranteed debenturesOSI2 Citibank Facility.
2025 Notes
On February 25, 2020, the Company issued $300.0 million in aggregate principal amount of both SBIC subsidiaries.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 value by accrual statusmay 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 December 31, 2017$2,000 and Septemberintegral multiples of $1,000 in excess thereof. During the nine months ended June 30, 2017 were as follows:2023, the Company did not repurchase any of the 2025 Notes in the open market.
63
  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)









The 2025 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the U.S. Securities and Exchange Commission ("SEC")), as well as covenants requiring the Company to provide financial information to the holders of the 2025 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants are subject to limitations and exceptions that are described in the 2025 Notes Indenture.
 ___________________
(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.

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, 2012, as supplemented by the sixth supplemental indenture, dated May 18, 2021 (collectively, the "2027 Notes Indenture"), between the Company and the Trustee. The 2027 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.
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, 2023, 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 8.12 for more information regarding the interest rate swap.
64
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 the carrying value of the 2025 Notes and the 2027 Notes as of June 30, 2023 and September 30, 2022:
 As of June 30, 2023As of September 30, 2022
($ in millions)2025 Notes2027 Notes2025 Notes2027 Notes
Principal$300.0 $350.0 $300.0 $350.0 
  Unamortized financing costs(1.2)(2.7)(1.8)(3.2)
  Unaccreted discount(0.8)(0.6)(1.2)(0.7)
  Interest rate swap fair value adjustment— (39.6)— (42.0)
Net carrying value$298.0 $307.1 $297.0 $304.1 
Fair Value$285.7 $302.3 $283.1 $294.0 
The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2023:
($ in millions)2025 Notes2027 Notes
Three months ended June 30, 2023Nine months ended June 30, 2023Three months ended June 30, 2023Nine months ended June 30, 2023
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— — 3.7 9.4 
 Total interest expense$2.9 $8.8 $6.3 $17.2 
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)3.500 %3.500 %6.912 %6.274 %
The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2022:
($ in millions)2025 Notes2027 Notes
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 %

Note 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, 2022, the Company had net capital loss carryforwards of $523.7 million to investments offset net capital gains that will not expire, to the extent available and permitted by U.S. federal income tax law, of which $64.5 million are available to offset future short-term capital gains and $459.2 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.
65
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in controlled foreign corporations.thousands, except share and per share amounts, percentages and as otherwise indicated)




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, 2023 and December 31, 2016.2022.
Three months ended
June 30, 2023		Three months ended
June 30, 2022		Nine months ended
June 30, 2023		Nine months ended
June 30, 2022
Net increase (decrease) in net assets resulting from operations$36,685 $(37,834)$71,379 $16,015 
Net unrealized (appreciation) depreciation1,039 86,755 42,300 118,379 
Book/tax difference due to organizational costs— (21)— (65)
Book/tax difference due to capital losses utilized12,118 (3,736)20,380 (19,183)
Other book/tax differences(3,825)(8,819)(14,912)(18,597)
Taxable/Distributable Income (1)$46,017 $36,345 $119,147 $96,549 
  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, 2023 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, 2018.2023. 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 requiredrecognized in future years by these taxable entities. Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be utilized priorrealized 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 losses incurredhistorical and expected future book and tax basis pre-tax income of the Company and unrealized gains in taxable years ended prior to the Company’s taxable year ended Septemberassets at the determination date. Based on these and other factors, the Company determined that, as of June 30, 2012, which are subject to an expiration date. As a result2023, $6.1 million of the ordering rule, capital loss carryforwards$8.8 million deferred tax assets would not more likely than not be realized in future periods. As of June 30, 2023, the Company recorded a net deferred tax asset of $2.7 million on the Consolidated Statements of Assets and Liabilities.
For the three months ended June 30, 2023, the Company recognized a total expense for income tax related to realized and unrealized gains (losses) of $0.1 million, which was composed of (i) a current income tax expense of approximately $1.0 million and (ii) a deferred income tax benefit of approximately $0.9 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable yearsubsidiaries.
For the nine months ended priorJune 30, 2023, the Company recognized a total benefit for income tax related to itsrealized and unrealized gains (losses) of $0.4 million, which was composed of (i) a current income tax expense of approximately $0.6 million and (ii) a deferred income tax benefit of approximately $1.0 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable year ended September 30, 2012 may be more likely to expire unused than under previous tax law.subsidiaries.
As of September 30, 2017,2022, the Company had net capital loss carryforwardsCompany's last tax year end, the components of $466.6 million to offset net capital gains, to the extent available and permitted byaccumulated overdistributed earnings on a tax basis were as follows:
Undistributed ordinary income, net$(43,624)
Net realized capital losses473,274 
Unrealized losses, net153,119 
Accumulated overdistributed earnings$582,769
The aggregate cost of investments for U.S. federal income tax law. Of the capital loss carryforwards, $1.5purposes was $2,654.3 million expired onas of September 30, 2017, $10.3 million will expire on2022. As of September 30, 2019 and $454.8 million will not expire,2022, 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 $466.9 million. As of September 30, 2022, the aggregate gross unrealized depreciation for all investments in 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.there was an excess of cost for U.S. federal income tax purposes over value was
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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)









As a RIC, the Company is also subject to a U.S. federal excise tax based on distributive requirements of its taxable income 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.
The aggregate cost of investments for income tax purposes was $1.8 billion as of September 30, 2017. As of September 30, 2017, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over cost for income tax purposes was $51.7 million. As of September 30, 2017, the aggregate gross unrealized depreciation for all investments in which there was an excess of cost for income tax purposes over value was $277.8$620.0 million. Net unrealized depreciation based on the aggregate cost of investments for U.S. federal income tax purposes was $226.1$153.1 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.
During the three months ended December 31, 2017,June 30, 2023, the Company recorded an aggregate net realized loss of $0.3$10.6 million, in connection withwhich consisted of the sale of various debt investments in the open market.following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
Foreign currency forward contracts$(6.3)
Aden & Anais Merger Sub Inc.(5.2)
Radiology Partners Inc.(3.8)
WP CPP Holdings LLC(1.3)
Tersera Therapeutics LLC5.2 
Other, net0.8 
Total, net$(10.6)
During the three months ended December 31, 2016,June 30, 2022, the Company recorded an aggregate net realized gain of $9.2 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
Foreign currency forward contracts$8.8 
Other, net0.4 
Total, net$9.2
During the nine months ended June 30, 2023, the Company recorded an aggregate net realized loss of $23.1$19.9 million, which consisted of the following:
($ in millions)
Portfolio CompanyNet Realized Gain (Loss)
Foreign currency forward contracts$(5.5)
Aden & Anais Merger Sub Inc.(5.2)
Radiology Partners Inc.(4.2)
Carvana Co.(2.8)
ASP Unifrax Holdings Inc.(2.1)
WP CPP Holdings LLC(1.3)
Global Medical Response Inc.(1.0)
Tersera Therapeutics LLC5.2 
Other, net(3.0)
Total, net$(19.9)
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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)




($ 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

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, 2023 and December 31, 2016,2022, the Company recorded net unrealized depreciation on investments and secured borrowings of $43.5$1.0 million and $74.4$86.8 million, respectively. For the three months ended December 31, 2017,June 30, 2023, this consisted of $39.0$9.8 million of net unrealized depreciation on debt investments $3.8and $0.8 million of net unrealized depreciation on equity investments, and $2.3 million of net reclassifications to realized gains (resulting in unrealized depreciation),partially offset by $1.6$5.0 million of net unrealized depreciationappreciation related to exited investments (a portion of secured borrowings.which resulted in a reclassification to realized losses) and $4.6 million of net unrealized appreciation of foreign currency forward contracts. For the three months ended December 31, 2016, the Company's net unrealized depreciationJune 30, 2022, this consisted of $81.2$66.8 million of net unrealized depreciation on debt investments, $9.6$17.9 million of net unrealized depreciation on equity investments, $1.6 million of net unrealized depreciation of foreign currency forward contracts and $0.1$0.4 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, 2023 and 2022, the Company recorded net unrealized depreciation of $42.3 million and $118.4 million, respectively. For the nine months ended June 30, 2023, this consisted of $54.3 million of net unrealized depreciation on debt investments and $4.8 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $11.8 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $5.1 million of net unrealized appreciation on secured borrowings, offset by $16.5equity investments. For the nine months ended June 30, 2022, this consisted of $84.6 million of net reclassificationsunrealized 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 losses (resulting ingains) and $0.8 million of net unrealized appreciation).depreciation of foreign currency forward contracts.
During the nine months ended June 30, 2023, unrealized depreciation included a one-time unrealized loss of $20.7 million that resulted solely from accounting adjustments related to the OSI2 Merger.
Note 10.9. Concentration of Credit Risks
The Company deposits its cash with financial institutions and at times such balances may beare 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.
Note 10. Related Party Transactions

As of June 30, 2023 and September 30, 2022, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $20.1 million and $15.9 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree.
Investment Advisory Agreement
The Company is party to the Investment Advisory Agreement. Under the Investment Advisory Agreement, the Company pays Oaktree a fee for its services under the Investment Advisory Agreement consisting of two components: a
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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)











Note 11. Related Party Transactions

As of December 31, 2017 and September 30, 2017, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $6.3 million and $6.8 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree and FSM.
New Investment Advisory Agreement
Effective October 17, 2017 and as of December 31, 2017, the Company is party to the New Investment Advisory Agreement with Oaktree. 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 OCSI Merger and on January 23, 2023 in connection with the closing of OSI2 Merger. 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.
For the period from October 17, 2017 to December 31, 2017, Effective May 3, 2019, the base management fee (neton the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of waivers)(A) 200% and (B) the Company’s net asset value will be 1.00%. For the avoidance of doubt, the 200% will be calculated in accordance with the Investment Company Act and will give effect to exemptive relief the Company received from the SEC with respect to debentures issued by a small business investment company subsidiary. In connection with the OCSI Merger, Oaktree waived an aggregate of $6 million of base management fees otherwise payable to Oaktree in the two years following the closing of the OCSI Merger on March 19, 2021 at a rate of $750,000 per quarter (with such amount appropriately prorated for any partial quarter). In connection with the OSI2 Merger, Oaktree waived an aggregate of $9.0 million of base management fees payable to Oaktree as follows: $6.0 million at a rate of $1.5 million per quarter (with such amount appropriately prorated for any partial quarter) in the first year following closing of the OSI2 Merger on January 23, 2023 and $3.0 million at a rate of $750,000 per quarter (with such amount appropriately prorated for any partial quarter) in the second year following closing of the OSI2 Merger.
For the three and nine months ended June 30, 2023, the base management fee incurred under the New Investment Advisory Agreement was $4.4$10.5 million which was payable to Oaktree.(net of waiver) and $29.4 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, 2022, the base management fee which resulted in waiversincurred under the Investment Advisory Agreement was $9.1 million (net of less than $0.1 million.waiver) and $27.6 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

69
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)









merger-related accounting adjustments in connection with the assets acquired in the OCSI Merger or in the OSI2 Merger, in each case, 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 Investment Advisory Agreement, the calculation of the incentive fee on income for each quarter is as follows:

•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, 2023, 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$9.6 million and $26.3 million, respectively. For the three and nine months ended June 30, 2022, 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 in the aggregate under the Former Investment Advisory Agreement. Amounts potentially subject to waiver are accrued quarterly on a cumulative basiswas $6.5 million and to the extent required, any fees will be waived or reimbursed as soon as practicable after the end of the two-year period. As of December 31, 2017, Oaktree had accrued an aggregate amount of $0.1$19.7 million, of incentive fees potentially subject to waiver.respectively.

Under the New Investment Advisory Agreement, the second part of the incentive fee will be(the "capital gains incentive fee") is determined and payable in arrears as of the end of each fiscal year (or upon termination of the investment advisory agreement,Investment Advisory Agreement, 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 OCSI Merger or in the OSI2 Merger, in each case, 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, (2) include any such amounts associated with the investments acquired in the OCSI Merger for the period from October 1, 2018 to the date of closing of the OCSI Merger, solely to the extent that the exclusion of such amounts, in the aggregate, would result in an increase in the capital gains incentive fee and (3) include any such amounts associated with the investments acquired in the OSI2 Merger for the period from August 6, 2018 to the date of closing of the OSI2 Merger, 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, 2023, the Company paid $9.6 million of capital gains incentive fees cumulatively under the Investment Advisory Agreement (net of waivers). 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, 2023 under the Investment Advisory Agreement, no Part II incentive fees would be payable.

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
70
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




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, 2023, there were no accrued capital gains incentive fees. 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. As of June 30, 2023, the total accrued capital gains incentive fee liability was zero.
Indemnification


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

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

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





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

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

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

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

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

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





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

GAAP requires the Company to accrue for the theoretical capital gain incentive fee that would be payable after giving effect to the net unrealized capital appreciation. A fee so calculated and accrued would not be payable under either the New Investment Advisory Agreement or theotherwise as investment advisory agreements with FSM, and may never be paid based upon the computation of capital gain incentive fees in subsequent periods. Amounts ultimately paid under the New Investment Advisory Agreement will be consistent with the formula reflected in the New Investment Advisory Agreement. The Company did not accrue for capital gain incentive fees as of December 31, 2017 because the capital gain incentive fee under the New Investment Advisory Agreement will not be charged until the fiscal year ending September 30, 2019.adviser.
Administrative Services
The Company entered intois party to the New Administration Agreement with Oaktree Administrator on October 17, 2017.Administrator. Pursuant to the New Administration Agreement, Oaktree Administrator provides administrative services to the Company necessary for the operations of the Company, which include providing office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services as Oaktree Administrator, subject to review by the Company’s Board of Directors, shall from time to time deem to be necessary or useful to perform its obligations under the New Administration Agreement. Oaktree Administrator may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. Oaktree Administrator makes reports to the Company’s Board of Directors of its performance of obligations under the New Administration Agreement and furnishes advice and recommendations with respect to such other aspects of the Company’s business and affairs, in each case, as it shall determine to be desirable or as reasonably required by the Company’s Board of Directors; provided that Oaktree Administrator shall not provide any investment advice or recommendation.
Oaktree Administrator also provides portfolio collection functions for interest income, fees and warrants and is responsible for the financial and other records that the Company is required to maintain and prepares, prints and disseminates reports to the Company’s stockholders and all other materials filed with the SEC. In addition, Oaktree Administrator assists the Company in determining and publishing the Company’s net asset value, overseeing the preparation and filing of the Company’s tax returns, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Oaktree Administrator may also offer to provide, on the Company’s behalf, managerial assistance to the Company’s portfolio companies.
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, 2023 and throughout the Company’s 2017 fiscal year,2022, the Company was party toaccrued administrative expenses of $0.4 million and $0.3 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, 2023 and personnel,2022, the Company reimbursedaccrued administrative expenses of $1.2 million and $1.2 million, respectively, including $0.2 million and $0.2 million of general and administrative expenses, respectively.
71
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, 2017June 30, 2023 and September 30, 2017, $1.52022, $7.7 million and $1.8$3.2 million, respectively, was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, respectively, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to the Former Administrator and Oaktree Administrator.

72
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




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, 2023		Three months ended
June 30, 2022 (7)		Nine months ended
June 30, 2023		Nine months ended
June 30, 2022 (7)
Net asset value per share at beginning of period$19.66$21.79$20.38$21.84
Net investment income (1)0.630.661.891.86
Net unrealized appreciation (depreciation) (1)(8)(0.02)(1.42)(0.36)(1.95)
Net realized gains (losses) (1)(0.14)0.15(0.28)0.33
(Provision) benefit for taxes on realized and unrealized gains (losses) (1)—(0.01)0.010.03
Distributions of net investment income to stockholders(0.55)(0.50)(2.06)(1.44)
Net asset value per share at end of period$19.58$20.67$19.58$20.67
Per share market value at beginning of period$18.77$22.11$18.00$21.18
Per share market value at end of period$19.43$19.65$19.4319.65
Total return (2)6.42%(8.93)%19.58%(0.79)%
Common shares outstanding at beginning of period77,08061,06861,12560,120
Common shares outstanding at end of period77,08061,12577,08061,125
Net assets at beginning of period$1,515,150$1,330,376$1,245,563$1,312,823
Net assets at end of period$1,509,441$1,263,529$1,509,441$1,263,529
Average net assets (3)$1,526,644$1,306,727$1,407,814$1,323,232
Ratio of net investment income to average net assets (4)12.72%12.39%12.65%11.39%
Ratio of total expenses to average net assets (4)14.45%7.22%14.07%7.94%
Ratio of net expenses to average net assets (4)14.05%6.99%13.69%7.71%
Ratio of portfolio turnover to average investments at fair value7.48%4.73%18.43%21.44%
Weighted average outstanding debt (5)$1,756,758$1,369,615$1,640,062$1,358,150
Average debt per share (1)$22.79$22.41$23.29$22.41
Asset coverage ratio at end of period (6)182.05%187.82%182.05%187.82%
 __________
(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 $1,785.0 million and $1,395.0 million as of June 30, 2023 and 2022, respectively.
(7)The share and per share information disclosed in this table has been retrospectively adjusted to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.
(8)For the nine months ended June 30, 2023, the amount shown for net unrealized appreciation (depreciation) includes the effect of the timing of common stock issuances in connection with the OSI2 Merger.

73
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, 2023, 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, 2023, the Company paid $40.0 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, 2023.
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$78,866 €71,658 8/10/2023$531 $— Derivative asset
Foreign currency forward contract$71,438 £56,556 8/10/2023$— $482 Derivative asset
$531 $482 
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, 2022.
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$43,179 €41,444 11/10/2022$2,466 $— Derivative asset
Foreign currency forward contract$45,692 £37,033 11/10/2022$4,323 $— Derivative asset
$6,789 $— 
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, 2023.
DescriptionNotional AmountMaturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet Location of Net Amounts
Interest rate swap$350,000 1/15/2027$— $39,567 Derivative liability
$— $39,567 
Certain information related to the secured borrowings.Company’s interest rate swap is presented below as of September 30, 2022.

DescriptionNotional AmountMaturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet Location of Net Amounts
Interest rate swap$350,000 1/15/2027$— $41,969 Derivative liability
$— $41,969 




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, 2023, the Company's only off-balance sheet arrangements consisted of $98.7$274.4 million of unfunded commitments, which was comprised of $88.0$247.3 million to provide debt and equity
74
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)




financing to certain of its portfolio companies $1.3and $27.1 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, 2017,2022, the Company's only off-balance sheet arrangements consisted of $118.1$224.2 million of unfunded commitments, which was comprised of $107.3$175.2 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 $9.5 million related to unfunded limited partnership interests.the JVs. 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 Isubordinated notes and LLC equity interests in the JVs, preferred stock and limited partnership interests) as of December 31, 2017June 30, 2023 and September 30, 20172022 is shown in the table below:
75
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)









June 30, 2023September 30, 2022
107-109 Beech OAK22 LLC$30,922 $— 
Fairbridge Strategic Capital Funding LLC20,382 22,150 
Delta Leasing SPV II LLC18,822 27,187 
BioXcel Therapeutics, Inc.14,543 11,785 
OCSI Glick JV LLC13,998 13,998 
Senior Loan Fund JV I, LLC13,125 35,000 
SiO2 Medical Products, Inc.10,765 — 
MND Holdings III Corp8,470 — 
Seres Therapeutics, Inc.8,090 — 
iCIMs, Inc.7,704 6,930 
Dominion Diagnostics, LLC7,664 11,148 
Marinus Pharmaceuticals, Inc.7,139 5,734 
Assembled Brands Capital LLC7,062 2,008 
Grove Hotel Parcel Owner, LLC5,286 4,293 
scPharmaceuticals Inc.5,212 — 
Innocoll Pharmaceuticals Limited5,200 4,195 
Avalara, Inc.5,047 — 
Mindbody, Inc.4,762 4,000 
Accupac, Inc.4,500 4,605 
Mesoblast, Inc.4,405 3,553 
107 Fair Street LLC4,322 — 
Harrow Health, Inc.4,011 — 
Inventus Power, Inc.3,792 — 
Establishment Labs Holdings Inc.3,384 5,075 
MRI Software LLC3,302 5,196 
OTG Management, LLC3,190 3,789 
PRGX Global, Inc.3,127 2,518 
Salus Workers' Compensation, LLC3,102 — 
ADC Therapeutics SA3,020 3,020 
Relativity ODA LLC2,762 2,218 
112-126 Van Houten Real22 LLC2,703 — 
LSL Holdco, LLC2,650 427 
Supreme Fitness Group NY Holdings, LLC2,540 1,527 
Pluralsight, LLC2,395 3,532 
SCP Eye Care Services, LLC2,356 — 
Spanx, LLC2,185 2,226 
Tahoe Bidco B.V.2,162 1,741 
Coupa Holdings, LLC2,075 — 
Galileo Parent, Inc.2,061 — 
Oranje Holdco, Inc.1,904 — 
Apptio, Inc.1,885 1,338 
Kings Buyer, LLC1,771 1,537 
MHE Intermediate Holdings, LLC1,536 1,429 
PPW Aero Buyer, Inc.1,466 — 
Liquid Environmental Solutions Corporation1,383 1,115 
Berner Food & Beverage, LLC1,314 1,392 
CorEvitas, LLC1,251 915 
Digital.AI Software Holdings, Inc.1,156 826 
Coyote Buyer, LLC800 1,333 
Telestream Holdings Corporation678 528 
Acquia Inc.596 1,326 
ASP-R-PAC Acquisition Co LLC396 — 
BAART Programs, Inc.— 8,645 
RumbleOn, Inc.— 4,822 
Ardonagh Midco 3 PLC— 4,372 
Dialyze Holdings, LLC— 3,431 
Thrasio, LLC— 2,578 
109 Montgomery Owner LLC— 477 
GKD Index Partners, LLC— 320 
Total$274,373 $224,239 

76
  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, 2017 and September 30, 2017.
(2) This portfolio company does not have the ability to draw on this unfunded commitment as of December 31, 2017.
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. Merger with OSI2
On January 23, 2023, the Company completed its previously announced acquisition of OSI2. The Company was the accounting survivor of the OSI2 Merger. In accordance with the terms of the OSI2 Merger Agreement, at the effective time of the OSI2 Merger, each outstanding share of OSI2 common stock was converted into the right to receive 0.9115 shares of the Company’s common stock (with OSI2’s stockholders receiving cash in lieu of fractional shares of the Company’s common stock). As a result of the Merger, the Company issued an aggregate of 15,860,200 shares of its common stock to former OSI2 stockholders.
The OSI2 Merger was accounted for as an asset acquisition in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues (“ASC 805”). The Company determined the fair value of the shares of the Company’s common stock that were issued to former OSI2 stockholders pursuant to the OSI2 Merger Agreement plus transaction costs to be the consideration paid in connection with the OSI2 Merger under ASC 805. The consideration paid to OSI2 stockholders, as determined in accordance with ASC 805, was more than the aggregate fair values of the assets acquired and liabilities assumed, which resulted in a purchase premium (the “purchase premium”). The consideration paid was allocated to the individual assets acquired and liabilities assumed based on the relative fair values of net identifiable assets acquired other than “non-qualifying” assets (for example, cash). As a result, the purchase premium was allocated to the cost basis of the OSI2 investments acquired by the Company on a pro-rata basis based on their relative fair values as of the effective time of the OSI2 Merger. Immediately following the OSI2 Merger, the investments were marked to their respective fair values in accordance with ASC 820 which resulted in $20.7 million of unrealized depreciation in the Consolidated Statement of Operations as a result of the OSI2 Merger. The purchase premium allocated to the debt investments acquired will amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized depreciation on such investment acquired through its ultimate disposition. The purchase premium allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized loss with a corresponding reversal of the unrealized depreciation on disposition of such equity investments acquired. The OSI2 Merger was considered a tax-free reorganization, and the Company has elected to carry forward the historical cost basis of the acquired OSI2 investments for tax purposes.
The following table summarizes the allocation of the consideration paid to the assets acquired and liabilities assumed as a result of the OSI2 Merger:

Common stock issued by the Company (1)
$334,034 
Transaction costs1,932 
   Consideration paid$335,966
Investments$592,809 
Cash and cash equivalents22,317 
Other assets6,679 
   Total assets acquired621,805
Debt225,000 
Other liabilities60,839 
   Total liabilities acquired285,839
       Total net assets acquired$335,966
__________
(1) Common stock issued by the Company includes $19 of cash paid in lieu of issuing fractional shares.


77
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)





Note 15. Subsequent Events
The Company’s management evaluated subsequent events through the date of issuance of the Consolidated Financial Statements. There have been no subsequent events that occurred during such period that would require disclosure in, or would be required to be recognized in the Consolidated Financial Statements as of and for the three months ended December 31, 2017,June 30, 2023, except as discussed below:below.
Distribution Declaration
On February 5, 2018,July 28, 2023, the Company’s Board of Directors declared a quarterly dividenddistribution of $0.085$0.55 per share, payable in cash on March 30, 2018September 29, 2023 to stockholders of record on MarchSeptember 15, 2018.2023.









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, 2023
(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,
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     —
 —
 —
 —
 —
 —
 —
 —%
Portfolio CompanyIndustryInvestment TypeIndexSpreadCashPIK RateMaturity DateSharesPrincipalNet Realized Gain (Loss)Amount of Interest, Fees or Dividends Credited in Income (2)Fair Value at October 1, 2022Gross Additions (3)Gross Reductions (4)Fair Value at June 30, 2023% of Total Net Assets
Control Investments
C5 Technology Holdings, LLCData Processing & Outsourced ServicesCommon Stock829 $— $— $— $— $— $— $— — %
C5 Technology Holdings, LLCData Processing & Outsourced ServicesPreferred Equity34,984,460 — — — 27,638 — — 27,638 1.8 %
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien Term LoanSOFR+5.00 %10.39 %8/28/202514,102 — 1,070 14,333 — (231)14,102 0.9 %
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien Term LoanSOFR+5.00 %8/28/2025— — — — — — — — %
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien RevolverSOFR+5.00 %10.24 %8/28/20253,484 — 136 — 3,484 — 3,484 0.2 %
Dominion Diagnostics, LLCHealth Care ServicesCommon Stock30,031 — — — 4,946 — (2,235)2,711 0.2 %
OCSI Glick JV LLC (5)Multi-Sector HoldingsSubordinated DebtL+4.50 %9.36 %10/20/202858,349 — 4,961 50,283 1,116 (1,767)49,632 3.3 %
OCSI Glick JV LLC (5)Multi-Sector HoldingsMembership Interest87.50 %— — — — — — — — %
Senior Loan Fund JV I, LLC (6)Multi-Sector HoldingsSubordinated DebtL+7.00 %11.86 %12/29/2028112,656 — 9,197 96,250 16,406 — 112,656 7.5 %
Senior Loan Fund JV I, LLC (6)Multi-Sector HoldingsMembership Interest87.50 %— — 3,150 20,715 7,258 — 27,973 1.9 %
Total Control Investments$188,591 $— $18,514 $214,165 $28,264 $(4,233)$238,196 15.8 %
Affiliate Investments
Assembled Brands Capital LLCSpecialized FinanceFirst Lien RevolverL+6.75 %12.29 %10/17/202322,304 — 1,985 24,225 2,378 (4,417)22,186 1.5 %
Assembled Brands Capital LLCSpecialized FinanceCommon Stock1,783,332 — — — 370 40 (410)— — %
Assembled Brands Capital LLCSpecialized FinancePreferred Equity1,129,453 — — — 1,223 189 — 1,412 0.1 %
Assembled Brands Capital LLCSpecialized FinanceWarrants78,045 — — — — — — — — %
Caregiver Services, Inc.Health Care ServicesPreferred Equity1,080,399 — — — 378 — (65)313 — %
Total Affiliate Investments$22,304 $— $1,985 $26,196 $2,607 $(4,892)$23,911 1.6 %
Total Control & Affiliate Investments$210,895 $— $20,499 $240,361 $30,871 $(9,125)$262,107 17.4 %

 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.
(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)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).
(6)Together with Kemper, the Company co-invests through SLF JV I. SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).
79

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, 2022
(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 CompanyIndustryInvestment TypeIndexSpreadCashPIK RateMaturity DateSharesPrincipalNet Realized Gain (Loss)Amount of Interest, Fees or Dividends Credited in Income (2)Fair Value at October 1, 2021Gross Additions (3)Gross Reductions (4)Fair Value at June 30, 2022% of Total Net Assets
Control Investments
C5 Technology Holdings, LLCData Processing & Outsourced ServicesCommon Stock829 $— $— $— $— $— $— $— — %
C5 Technology Holdings, LLCData Processing & Outsourced ServicesPreferred Equity34,984,460 — — — 27,638 — — 27,638 2.2 %
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien Term LoanL+5.00 %7.26 %2/28/202416,074 — 1,078 27,381 — (11,307)16,074 1.3 %
Dominion Diagnostics, LLCHealth Care ServicesFirst Lien RevolverL+5.00 %2/28/2024— — 42 — — — — — %
Dominion Diagnostics, LLCHealth Care ServicesCommon Stock30,031 — — 3,308 18,065 — (8,798)9,267 0.7 %
First Star Speir Aviation Limited (5)AirlinesFirst Lien Term Loan9.00 %12/15/2025— 7,500 — 7,500 — (7,500)— — %
First Star Speir Aviation Limited (5)AirlinesMembership Interest100.00 %— (5,632)158 698 — (698)— — %
OCSI Glick JV LLC (6)Multi-Sector HoldingsSubordinated DebtL+4.50 %4.94 %10/20/202860,274 — 3,292 55,582 1,123 (6,099)50,606 4.0 %
OCSI Glick JV LLC (6)Multi-Sector HoldingsMembership Interest87.50 %— — — — — — — — %
Senior Loan Fund JV I, LLC (7)Multi-Sector HoldingsSubordinated DebtL+7.00 %8.00 %12/29/202896,250 — 5,839 96,250 — — 96,250 7.6 %
Senior Loan Fund JV I, LLC (7)Multi-Sector HoldingsMembership Interest87.50 %— — 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 FinanceFirst Lien RevolverL+6.75 %9.00 %10/17/202321,754 — 1,185 15,712 11,585 (6,037)21,260 1.7 %
Assembled Brands Capital LLCSpecialized FinanceCommon Stock1,609,201 — — — 587 — (24)563 — %
Assembled Brands Capital LLCSpecialized FinancePreferred Equity1,019,169 — — — 1,152 51 — 1,203 0.1 %
Assembled Brands Capital LLCSpecialized FinanceWarrants70,425 — — — — — — — — %
Caregiver Services, Inc.Health Care ServicesPreferred Equity1,080,399 — — — 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 %

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, 2022.

(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
80

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 “Item“Item 1A. Risk Factors”Factors” in our annual report on Form 10-K for the year ended September 30, 20172022 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 pandemics;
•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;
•the ability to realize the benefits of the OSI2 Merger (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, or Oaktree Administrator, or OFA, a subsidiaryan affiliate of our Investment Adviser, also Oaktree,
82

provides certain administrative and other services necessary for us to operate. Prioroperate pursuant to October 17, 2017,


we were externally managed and advised by Fifth Street Management LLC, or FSMan administration agreement, as amended from time to time, or the Former Adviser, and we were named Fifth Street Finance Corp.Administration Agreement.
We generally lend to and invest in small and mid-sized companies, primarily in connection with investments by private equity sponsors. Our investment objective is to maximize our portfolio’s total return by generatinggenerate current income from our debt investments, and to a lesser extent, capital appreciation from ourby providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity investments.
Our Investment Adviser intends to reposition our portfolio into investments that are better aligned with our Investment Adviser's overall approach to credit investing and that it believes have the potentialcertain equity co-investments. We may also seek to generate attractive returnscapital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions. Our portfolio may also include certain structured finance and other non-traditional structures. We invest in companies that typically possess resilient business models with strong underlying fundamentals. We intend to deploy capital across market cycles. We expectcredit and economic cycles with a focus on long-term results, which we believe will enable us to build lasting partnerships with financial sponsors and management teams, and we may seek to opportunistically take advantage of dislocations in the financial markets and other situations that our Investment Adviser will focusmay benefit from Oaktree’s credit and structuring expertise. 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 area, 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$67 million at fair value as of June 30, 2023. 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 an agreement and plan or merger, or the OCSI Merger Agreement, dated as of October 28, 2020, by and among OCSI, us, Lion Merger Sub, Inc., our wholly-owned subsidiary, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OCSI Merger Agreement, OCSI was merged with spreads over LIBORand into us in a two-step transaction with us as the surviving company, or the OCSI Merger.

On January 23, 2023, we acquired Oaktree Strategic Income II, Inc., or OSI2, pursuant to that certain Agreement and Plan of less than 4.0%Merger, or the OSI2 Merger Agreement, dated as of September 14, 2022, by and over time,among OSI2, us, Project Superior Merger Sub, Inc., a wholly-owned subsidiary of us, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to reduce our exposure to smaller investments of less than $10 million. Oaktree will seek to redeploy capital from realization of existing investmentsthe OSI2 Merger Agreement, OSI2 was merged with and into Oaktree-originated investmentsus in a two-step transaction with higher yields.us as the surviving company, or the OSI2 Merger.
During the three months ended December 31, 2017, the integration of our operational infrastructure, including accounting, valuation, compliance and information technology processes and systems, into the Oaktree platform was completed, and we believe that we will realize synergies and cost savings, including from trade settlement and internal audit functions, as a result of this integration.
83

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 and the current conflict in JapanUkraine have weighed on market participants. These factors have created disruptions in supply chains and Europeeconomic 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 haswe have the resources and experience to source, diligence and structure investments in these companies and isare well placed to generate attractive returns for investors.

New Investment Advisory AgreementAs of June 30, 2023, 86.0% of our debt investment portfolio (at fair value) and 85.8% of our debt investment portfolio (at cost) bore interest at floating rates. Most of our floating rate loans are indexed to the Secured Overnight Financing Rate, or SOFR, or the London Interbank Offered Rate, or LIBOR, which typically resets semi-annually, quarterly or monthly at the borrower’s option. Certain loans are also indexed to an alternate base rate (e.g., prime rate) or the Sterling Overnight Index Average, or SONIA. Most U.S. dollar LIBOR rates are no longer published after June 30, 2023 although certain synthetic rates will be published through September 30, 2024. The U.S. Federal Reserve, in conjunction with Oaktree
Upon the closingAlternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, supports replacing U.S.-dollar LIBOR with SOFR. In connection with 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 transactions,loan agreements with our portfolio companies have included fallback language to address when 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 Transaction, contemplated by the Asset Purchase Agreement, 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 closing of the Transaction resulted in an assignment for purposes of the 1940 Act of our investment advisory agreement with FSM, or the Former Investment Advisory Agreement, and, asidentifying a result, its immediate termination. The material terms of the services to be provided under the New Investment Advisory Agreement, other than the fee structure, are substantially the same as the Former Investment Advisory Agreement, except that services are provided by Oaktree. See “Note 11. Related Party Transactions-New Investment Advisory Agreement” and “-Administrative Services” in the notes to the accompanying Consolidated Financial Statements.replacement reference rate. 


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’sOaktree’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. OurOaktree'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.
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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 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 AdviserOaktree seeks to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If Oaktree is unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within our set threshold, Oaktree 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, our Investment Adviser looks at a number of factorsongoing monitoring and back-testing, Oaktree performs due diligence procedures over pricing vendors to determine ifunderstand their methodology and controls to support their use in the quotations are representative of fair value, including the source and nature of the quotations. Our Investment Adviservaluation process. Generally, Oaktree does not adjust any of the prices unless it has a reason to believe marketreceived from these sources.
If the quotations obtained from pricing vendors or brokers are not reflective of the fair value of an investment. Examples of events that would cause market quotationsdetermined to not reflect fair value could include cases when a security trades infrequently causing a quoted purchasebe reliable or sale price to become stale or in the event of a “fire sale” by a distressed seller. In these instances, 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 corroborateOaktree values such information, which may include the market yield technique discussed below and a quantitative and qualitative assessmentinvestments using any 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. WeOaktree 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 dependOaktree 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. Under the market yield technique, the significant unobservable input used in the fair value measurement of our 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 estimateOaktree 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.
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, 2023 and September 30, 20172022 was determined in good faith by Oaktree, as our Board of Directors. Our Board of Directors hasvaluation designee. We 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
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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.quarter. As of December 31, 2017, 69.2%June 30, 2023, 90.3% of our portfolio at fair value was valued either based on market quotations, the transactions precedent approach or corroborated by independent valuation firms. However,
Certain factors that may be considered in determining the fair value of our Boardinvestments include the nature and realizable value of Directors is responsibleany 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, Oaktree's fair value determinations may cause our net asset value on a given date to materially understate or overstate the ultimate valuationvalue that we may ultimately realize upon the sale of the portfolioone or more of our investments.
As of June 30, 2023, we held $3,135.6 million of investments at fair value, as determinedup from $2,494.1 million held at September 30, 2022, primarily driven by the growth in good faith pursuant to our valuation policy and a consistently applied valuation process.
assets that resulted from the completion of the OSI2 Merger during the quarter ended March 31, 2023. As of December 31, 2017June 30, 2023 and September 30, 2017,2022, approximately 94.7%94.0% and 95.4%94.2%, 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,June 30, 2023, there were eightfive investments on which we had stopped accruing cash and/or PIK interest or OID income.non-accrual status that in the aggregate represented 3.6% and 3.1% of total debt investments at cost and fair value, respectively. As of September 30, 2022, there were no investments on 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.
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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
Excluding the environment for direct lending remains active, and, as a result, a number of our portfolio companies were able to refinance and repay their loansinvestments acquired in connection with the OSI2 Merger, during the threenine months ended December 31, 2017.
During the three months ended December 31, 2017,June 30, 2023, we originated $183.0$625.1 million of investment commitments in 1330 new and one14 existing portfolio companies and funded $200.2$621.3 million of investments.
During the threenine months ended December 31, 2017,June 30, 2023, we received $196.4$527.5 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 32 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, 2023September 30, 2022
Cost:
Senior secured debt87.59 %85.08 %
Debt investments in the JVs4.93 5.59 
Preferred equity3.02 3.26 
Subordinated debt1.68 2.57 
LLC equity interests of the JVs1.66 1.88 
Common equity and warrants1.12 1.62 
Total100.00 %100.00 %
 
June 30, 2023September 30, 2022
Fair value:
Senior secured debt88.48 %86.86 %
Debt investments in the JVs5.18 5.88 
Preferred equity2.94 3.19 
Subordinated debt1.66 2.28 
LLC equity interests of the JVs0.89 0.83 
Common equity and warrants0.85 0.96 
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%



87
  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, 2023September 30, 2022
Cost:
Application Software16.98 %14.98 %
Multi-Sector Holdings (1)6.65 7.48 
Data Processing & Outsourced Services4.05 4.60 
Health Care Technology3.92 3.82 
Biotechnology3.86 4.20 
Pharmaceuticals3.69 4.83 
Aerospace & Defense3.36 2.37 
Industrial Machinery & Supplies & Components3.01 — 
Broadline Retail2.52 — 
Health Care Services2.35 2.24 
Real Estate Operating Companies2.32 1.82 
Specialized Finance2.10 3.09 
Personal Care Products2.08 — 
Automotive Retail1.97 2.26 
Fertilizers & Agricultural Chemicals1.96 1.88 
Internet Services & Infrastructure1.91 2.07 
Health Care Distributors1.88 2.18 
Diversified Financial Services1.87 — 
Auto Parts & Equipment1.85 0.48 
Metal, Glass & Plastic Containers1.76 — 
Airport Services1.70 1.65 
Home Improvement Retail1.67 1.75 
Insurance Brokers1.61 1.36 
Diversified Metals & Mining1.51 — 
Leisure Facilities1.50 1.52 
Real Estate Services1.36 1.54 
Soft Drinks & Non-alcoholic Beverages1.31 — 
Diversified Support Services1.30 1.45 
Other Specialty Retail1.27 — 
Specialty Chemicals1.16 1.43 
Distributors1.14 0.97 
Integrated Telecommunication Services1.02 1.32 
Electrical Components & Equipment0.98 1.29 
Construction & Engineering0.83 2.33 
Environmental & Facilities Services0.79 0.80 
Advertising0.78 1.08 
Passenger Airlines0.76 — 
Oil & Gas Storage & Transportation0.74 0.85 
Home Furnishings0.72 0.75 
Gold0.71 — 
Systems Software0.70 0.57 
Health Care Equipment0.68 0.93 
Real Estate Development0.59 — 
Interactive Media & Services0.58 — 
Hotels, Resorts & Cruise Lines0.52 0.53 
Consumer Finance0.50 0.55 
Education Services0.48 0.35 
IT Consulting & Other Services0.47 0.45 
Restaurants0.38 0.36 
Movies & Entertainment0.37 1.00 
Health Care Supplies0.35 1.39 
Food Distributors0.18 0.18 
Apparel Retail0.16 0.20 
Air Freight & Logistics0.15 0.28 
Integrated Oil & Gas0.15 0.19 
Research & Consulting Services0.15 0.35 
Cable & Satellite0.14 0.79 
Other Specialized REITs0.13 — 
Paper & Plastic Packaging Products & Materials0.10 — 
Housewares & Specialties0.09 0.09 
Electronic Components0.06 0.08 
Leisure Products0.06 — 
Technology Distributors0.03 0.12 
Communications Equipment0.03 — 
Industrial Machinery— 3.12 
Internet & Direct Marketing Retail— 2.59 
Personal Products— 2.03 
Metal & Glass Containers— 1.82 
Soft Drinks— 1.31 
Other Diversified Financial Services— 1.12 
Oil & Gas Refining & Marketing— 0.33 
Trading Companies & Distributors— 0.29 
Apparel, Accessories & Luxury Goods— 0.20 
Specialized REITs— 0.16 
Diversified Banks— 0.13 
Construction Materials— 0.09 
Alternative Carriers— 0.01 
Total100.00 %100.00 %
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  December 31, 2017 September 30, 2017
Cost:    
 Healthcare services 12.48% 11.98%
 Internet software & services 11.95
 15.37
 Multi-sector holdings (1) 10.32
 9.87
 Healthcare equipment 5.94
 5.67
 Data processing & outsourced services 4.81
 4.42
 Environmental & facilities services 4.15
 2.84
 Construction & engineering 4.10
 3.86
 Pharmaceuticals 3.63
 3.46
 Advertising 3.32
 4.82
 Education services 3.09
 2.85
 Airlines 3.03
 3.28
 Specialty stores 2.77
 3.33
 Integrated telecommunication services 2.45
 1.75
 Technology distributors 2.04
 —
 Leisure facilities 1.96
 1.76
 Oil & gas refining & marketing 1.95
 —
 Air freight and logistics 1.94
 1.85
 Housewares & specialties 1.78
 1.70
 Oil & gas equipment services 1.64
 1.57
 Consumer electronics 1.48
 1.32
 Home improvement retail 1.35
 1.31
 Auto parts & equipment 1.26
 1.21
 Oil & gas exploration & production 1.07
 —
 Research & consulting services 1.02
 2.16
 Diversified support services 0.99
 1.29
 Healthcare technology 0.86
 —
 Security & alarm services 0.79
 0.75
 Real estate services 0.77
 0.74
 Other diversified financial services 0.68
 0.69
 Casinos & gaming 0.67
 1.33
 Commodity chemicals 0.65
 —
 Healthcare distributors 0.53
 —
 Precious metals & minerals 0.44
 0.42
 Trucking 0.42
 0.40
 Thrift & mortgage finance 0.41
 0.41
 Distributors 0.39
 0.85
 Industrial machinery 0.39
 0.86
 Commercial printing 0.36
 0.34
 Apparel, accessories & luxury goods 0.31
 0.29
 Wireless telecommunication services 0.30
 —
 Restaurants 0.29
 0.28
 Application software 0.29
 2.93
 General merchandise stores 0.25
 —
 Food retail 0.25
 0.24
 IT consulting & other services 0.24
 0.23
 Specialized finance 0.19
 0.18
 Human resources & employment services —
 —
 Hypermarkets & super centers —
 0.68
 Computer & electronics retail —
 0.36
 Multi-utilities —
 0.35
Total 100.00% 100.00%


  December 31, 2017 September 30, 2017
Fair value:    
 Internet software & services 13.71% 17.20%
 Multi-sector holdings (1) 11.58
 10.67
 Healthcare services 5.41
 6.09
 Data processing & outsourced services 5.04
 4.43
 Environmental & facilities services 4.94
 3.29
 Pharmaceuticals 4.45
 4.07
 Airlines 4.14
 3.86
 Healthcare equipment 4.00
 4.73
 Construction & engineering 3.61
 3.26
 Advertising 3.25
 5.43
 Specialty stores 3.22
 3.69
 Education services 2.52
 2.48
 Integrated telecommunication services 2.51
 2.03
 Leisure facilities 2.45
 2.11
 Technology distributors 2.42
 —
 Oil & gas refining & marketing 2.33
 —
 Housewares & specialties 2.11
 1.93
 Oil & gas equipment services 2.02
 1.84
 Consumer electronics 1.83
 1.56
 Home improvement retail 1.74
 1.61
 Auto parts & equipment 1.53
 1.41
 Research & consulting services 1.33
 2.50
 Oil & gas exploration & production 1.26
 —
 Diversified support services 1.14
 1.46
 Healthcare technology 1.03
 —
 Security & alarm services 0.92
 0.85
 Real estate services 0.90
 0.84
 Casinos & gaming 0.81
 1.52
 Commodity chemicals 0.77
 —
 Other diversified financial services 0.77
 0.76
 Healthcare distributors 0.64
 —
 Precious metals & minerals 0.53
 0.48
 Trucking 0.50
 0.46
 Application software 0.46
 3.50
 Distributors 0.46
 0.96
 Industrial machinery 0.46
 0.97
 Commercial printing 0.43
 0.39
 Leisure products 0.42
 0.38
 Thrift & mortgage finance 0.40
 0.40
 Wireless telecommunication services 0.36
 —
 Restaurants 0.34
 0.32
 General Merchandise Stores 0.32
 —
 Food retail 0.30
 0.28
 IT consulting & other services 0.28
 0.25
 Specialized finance 0.23
 0.21
 Air freight and logistics 0.13
 0.12
 Human resources & employment services —
 —
 Hypermarkets & super centers —
 0.75
 Computer & electronics retail —
 0.42
 Multi-utilities —
 0.41
 Apparel, accessories & luxury goods —
 0.08
Total 100.00% 100.00%
June 30, 2023September 30, 2022
Fair value:
Application Software17.38 %15.43 %
Multi-Sector Holdings (1)6.13 6.71 
Biotechnology4.09 4.35 
Data Processing & Outsourced Services3.97 4.46 
Pharmaceuticals3.71 4.79 
Health Care Technology3.69 3.90 
Aerospace & Defense3.55 2.48 
Industrial Machinery & Supplies & Components3.16 — 
Broadline Retail2.58 — 
Real Estate Operating Companies2.40 1.93 
Specialized Finance2.12 2.93 
Fertilizers & Agricultural Chemicals2.02 2.08 
Internet Services & Infrastructure2.00 2.16 
Automotive Retail1.99 2.31 
Health Care Services1.98 1.84 
Diversified Financial Services1.95 — 
Personal Care Products1.94 — 
Auto Parts & Equipment1.94 0.46 
Health Care Distributors1.92 2.19 
Airport Services1.76 1.72 
Insurance Brokers1.74 1.33 
Home Improvement Retail1.73 1.82 
Diversified Metals & Mining1.59 — 
Leisure Facilities1.50 1.57 
Real Estate Services1.41 1.59 
Metal, Glass & Plastic Containers1.40 — 
Soft Drinks & Non-alcoholic Beverages1.36 — 
Other Specialty Retail1.33 — 
Diversified Support Services1.32 1.47 
Distributors1.17 0.98 
Electrical Components & Equipment1.03 1.32 
Specialty Chemicals1.03 1.36 
Integrated Telecommunication Services0.99 1.29 
Passenger Airlines0.86 — 
Construction & Engineering0.86 2.45 
Environmental & Facilities Services0.81 0.83 
Gold0.74 — 
Health Care Equipment0.72 0.97 
Systems Software0.71 0.51 
Oil & Gas Storage & Transportation0.69 0.84 
Home Furnishings0.62 0.73 
Real Estate Development0.61 — 
Interactive Media & Services0.61 — 
Advertising0.60 1.08 
Hotels, Resorts & Cruise Lines0.55 0.56 
Education Services0.45 0.34 
Consumer Finance0.40 0.53 
Restaurants0.39 0.35 
Movies & Entertainment0.38 1.07 
Health Care Supplies0.36 1.47 
IT Consulting & Other Services0.36 0.34 
Food Distributors0.17 0.13 
Apparel Retail0.17 0.21 
Integrated Oil & Gas0.15 0.20 
Cable & Satellite0.15 0.78 
Research & Consulting Services0.15 0.34 
Air Freight & Logistics0.13 0.26 
Other Specialized REITs0.11 — 
Paper & Plastic Packaging Products & Materials0.10 — 
Housewares & Specialties0.09 0.10 
Leisure Products0.06 — 
Electronic Components0.06 0.08 
Technology Distributors0.03 0.12 
Communications Equipment0.03 — 
Industrial Machinery— 3.25 
Internet & Direct Marketing Retail— 2.82 
Personal Products— 2.01 
Metal & Glass Containers— 1.91 
Soft Drinks— 1.35 
Other Diversified Financial Services— 0.98 
Oil & Gas Refining & Marketing— 0.34 
Trading Companies & Distributors— 0.22 
Diversified Banks— 0.14 
Specialized REITs— 0.13 
Construction Materials— 0.08 
Alternative Carriers— 0.01 
Total100.00 %100.00 %
___________________
(1)This industry includes our investment in SLF JV I.

(1)This industry includes our investments in the JVs.



89
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, 2023 and September 30, 2017,2022, we and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I.I and the outstanding SLF JV I Notes. As of December 31, 2017 and SeptemberJune 30, 2017,2023, 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 inhad funded approximately $190.5 million to SLF JV I, are in industries similar to those inof 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$166.7 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.from us. 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.
As of each of December 31, 2017 and September 30, 2017,2022, 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, 2017 and SeptemberJune 30, 2017,2023, we and Kemper had the optionaggregate commitments to fund SLF JV I of $13.1 million, of which approximately $9.8 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 $3.3 million was to fund LLC equity interests in SLF JV I. During the nine months ended June 30, 2023, we contributed $16.4 million to fund additional SLF JV I Notes and approximately $5.5 million to fund additional LLC equity interests in SLF JV I. As of September 30, 2022, we had aggregate commitments to fund SLF JV I of $17.5$35.0 million, of which $1.3approximately $26.2 million was unfunded.
Below is a summary ofto fund additional SLF JV I's portfolio, followed by a listing of the individual loansI Notes and approximately $8.8 million was to fund LLC equity interests 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$112.7 million as of December 31, 2017 and SeptemberJune 30, 2017, respectively. We earned cash interest of $1.8 million and $0.2 million on our investments in these notes for the three months ended December 31, 2017 and December 31, 2016, respectively.2023. Both the cost and fair value of the Class B mezzanine secured deferrable fixed rate notes ofour SLF JV I held by usNotes were $27.5 million and $27.6$96.3 million as of December 31, 2017 and September 30, 2017,2022. We earned interest income of $3.4 million and $9.2 million on the SLF JV I Notes for the three and nine months ended June 30, 2023, respectively. We earned PIK interest income of $1.0$1.9 million and $5.8 million on our investments in these notesthe SLF JV I Notes for the three and nine months ended December 31, 2017. Prior to their repayment,June 30, 2022, respectively. As of June 30, 2023, the subordinated notes of SLF JV I Notes 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$54.8 million and $4.9$28.0 million, respectively, as of December 31, 2017,June 30, 2023, and $16.2$49.3 million and $5.5$20.7 million, respectively, as of September 30, 2017.2022. We earned $1.1 million and $3.2 million in dividend income for the three and nine months ended June 30, 2023, respectively, with respect to our investment in the LLC equity interests of SLF JV I. We 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 our investment in the LLC equity interests of SLF JV I.
Below is a summary of SLF JV I's portfolio as of June 30, 2023 and September 30, 2022:
June 30, 2023September 30, 2022
Senior secured loans (1)$350$383,194
Weighted average interest rate on senior secured loans (2)10.40%8.33%
Number of borrowers in SLF JV I5260
Largest exposure to a single borrower (1)$11,304$10,093
Total of five largest loan exposures to borrowers (1)$54,003$48,139
__________________
(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 on SLF JV I and its portfolio.
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OCSI Glick JV LLC
On March 19, 2021, 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, 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, 2023 and September 30, 2022, we and GF 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, 2023 and September 30, 2022, of which $73.5 million was from us. As of June 30, 2023 and September 30, 2022, 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, 2023 and September 30, 2022, 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 $50.0 million and $49.6 million, respectively, as of June 30, 2023. The cost and fair value of our aggregate investment in the Glick JV was $50.2 million and $50.3 million, respectively, as of September 30, 2022. For the three and nine months ended June 30, 2023, our investment in the Glick JV Notes earned interest income of $1.8 million and $5.0 million, respectively. 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. We did not earn any dividend income for the three and nine months ended December 31, 2017June 30, 2023 and earned dividend income of $0.7 million for the three months ended December 31, 2016,June 30, 2022 with respect to our investment in LLC equity interests. Thethe LLC equity interests are dividend producing toof the extent SLF JV I has residual cash to be distributed on a quarterly basis.


Glick JV.
Below is certain summarized financial information for SLF JV Ia summary of the Glick JV's portfolio as of December 31, 2017June 30, 2023 and September 30, 2017 and for the three months ended December 31, 2017 and December 31, 2016:2022:
June 30, 2023September 30, 2022
Senior secured loans (1)$123,126$143,225
Weighted average current interest rate on senior secured loans (2)10.66%8.52%
Number of borrowers in the Glick JV3743
Largest loan exposure to a single borrower (1)$6,313$6,562
Total of five largest loan exposures to borrowers (1)$28,457$28,973
  December 31, 2017 September 30, 2017
Selected Balance Sheet Information:    
Investments in loans at fair value (cost December 31, 2017: $255,973; cost September 30, 2017: $251,648) $239,601
 $235,526
Receivables from secured financing arrangements at fair value (cost December 31, 2017: $9,787; cost September 30, 2017: $9,783) 8,334
 8,305
Cash and cash equivalents 28,386
 24,389
Restricted cash 4,100
 5,097
Other assets 4,117
 3,485
Total assets $284,538
 $276,802
     
Senior credit facilities payable $105,053
 $113,053
Debt securities payable at fair value (proceeds December 31, 2017: $146,572; proceeds September 30, 2017: $147,052) 146,572
 147,052
Other liabilities 27,407
 10,383
Total liabilities 279,032
 270,488
Members' equity 5,506
 6,314
Total liabilities and members' equity $284,538
 $276,802

  Three months ended December 31, 2017 Three months ended December 31, 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.
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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, 2023 and December 31, 2016June 30, 2022
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, 2023 and December 31, 20162022 was $33.9$101.9 million and $51.8$63.1 million, respectively. For the three months ended December 31, 2017,June 30, 2023, this amount primarily consisted of $31.8$99.3 million of interest income from portfolio investments (which included $1.9$4.0 million of PIK interest), $1.0$1.6 million of fee income and $1.1 million of dividend income. For the three months ended June 30, 2022, this amount consisted of $59.9 million of interest income from portfolio investments (which included $5.2 million of PIK interest), $2.3 million of fee income and $1.0 million of dividend income. For the three months ended December 31, 2016, this amount primarily consistedThe increase of $46.7$38.8 million, of interest income from portfolio investments (which included $2.8 million of PIK interest)or 61.4%, $3.6 million of fee income and $1.5 million of dividend income.
The decrease of $17.9 million in our total investment income for the three months ended December 31, 2017,June 30, 2023, as compared to the three months ended December 31, 2016,June 30, 2022, was due primarily to a $14.9$39.4 million decreaseincrease in interest income, which was attributable toprimarily driven by the growth in assets that resulted from the completion of the OSI2 Merger during the prior quarter, new originations and the impact of higher reference rates on our floating rate investments. That was partially offset by a decrease in the size of our investment portfolio, a $2.5$0.7 million decrease in fee income primarily due to lower prepayment fees.
Total investment income for the nine months ended June 30, 2023 and 2022 was $277.4 million and $192.4 million, respectively. For the nine months ended June 30, 2023, this amount consisted of $268.3 million of interest income from portfolio investments (which included $14.2 million of PIK interest), $6.0 million of fee income and $3.2 million of dividend income. 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. The increase of $85.0 million, or 44.2%, in our total investment income for the nine months ended June 30, 2023, as compared to the nine months ended June 30, 2022, was due primarily to (1) a $86.5 million increase in interest income, which was attributable to a higher numberprimarily driven by the growth in assets that resulted from the completion of advisory and structuring fees earnedthe OSI2 Merger during the three monthsquarter ended DecemberMarch 31, 2016,2023, new originations and the impact of higher reference rates on our floating rate investments and (2) a $0.4$0.9 million increase in fee income primarily due to higher commitment fees and amendment fees. This was partially offset by a $2.4 million decrease in dividend income, which was attributable to lower dividend income earned on our investments in SLF JV I in the current quarter.income.
Expenses
Net expenses (expenses net of fee waivers and insurance recoveries)waivers) for the three months ended December 31, 2017June 30, 2023 and December 31, 20162022 were $20.6$53.5 million and $28.5$22.8 million, respectively. Net expenses decreasedincreased for the three months ended December 31, 2017,June 30, 2023, as compared to the three months ended December 31, 2016,June 30, 2022, by $7.9$30.7 million, or 27.8%134.9%, primarily due primarily to (1) a $3.0$18.9 million decreaseincrease in base managementinterest expense due to higher borrowings outstanding and the impact of rising reference rates, (2) a $6.8 million of reversal of accrued Part II incentive fees which was attributable to a reduction in the size of our portfolio andprior period, (3) a reduction in the base management fee rate under the New Investment Advisory Agreement, a $3.3$3.1 million decreaseincrease in Part I incentive fees which was attributablemainly due to lower pre-incentive fee nethigher total investment income, (4) a $1.4 million increase in the current quarterbase management fees as a result of a larger investment portfolio and (5) a $3.6 million decrease in interest expense attributable to lower levels of outstanding debt in the current quarter, partially offset by a $1.8$0.5 million increase in professional fees.
Net expenses (expenses net of fee waivers) for the nine months ended June 30, 2023 and 2022 were $144.1 million and $76.3 million, respectively. Net expenses increased for the nine months ended June 30, 2023, as compared to the nine months ended June 30, 2022, by $67.8 million, or 88.9%, primarily due to (1) a $48.1 million increase in interest expense due to higher borrowings outstanding and the impact of rising reference rates, (2) a $6.6 million increase in Part I incentive fees mainly due to higher total investment income, (3) a $8.8 million of reversal of accrued Part II incentive fees in the prior period, (4) a $1.9 million increase in professional fees and (5) a $1.8 million increase in base management fees as a result of a larger investment portfolio.
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Net Investment Income
AsPrimarily as a result of the $17.9$38.8 milliondecrease increase in total investment income and the $7.9$30.7 million decreaseincrease in net expenses, net investment income for the three months ended December 31, 2017 decreasedJune 30, 2023 increased by $10.0$8.0 million or 42.8%, compared to the three months ended December 31, 2016.June 30, 2022.
Primarily as a result of the $85.0 million increase in total investment income, the $67.8 million increase in net expenses and a $3.3 million decrease in the provision for taxes on net investment income, net investment income for the nine months ended June 30, 2023 increased by $20.4 million compared to the nine months ended June 30, 2022.
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, 2023 and 2022, we recorded aggregate net realized gains (losses) of $(10.6) million forand $9.2 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, 2023 and 2022, we recorded aggregate net realized gains (losses) of $(19.9) million and $19.9 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, 2023 and December 31, 2016.2022.
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, 2023 and 2022, we recorded net unrealized depreciation of $1.0 million forand $86.8 million, respectively. For the three months ended December 31, 2017. NetJune 30, 2023, this consisted of $9.8 million of net unrealized depreciation foron debt investments and $0.8 million of net unrealized depreciation on equity investments, partially offset by $5.0 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $4.6 million of net unrealized appreciation of foreign currency forward contracts. For the three months ended December 31, 2017 was primarily the resultJune 30, 2022, this consisted of significant write-downs on our investment portfolio, including $39.9$66.8 million of aggregate write-downs on three investments. Netnet 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).
During the threenine months ended December 31, 2016 was primarilyJune 30, 2023 and 2022, we recorded net unrealized depreciation of $42.3 million and $118.4 million, respectively. For the resultnine months ended June 30, 2023, this consisted of significant write-downs on our investment portfolio, including $82.9$54.3 million of aggregate write-downsnet unrealized depreciation on fourdebt investments and $4.8 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $11.8 million of net reclassificationsunrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses (resulting in unrealized appreciation).


See “Note 9. Realized Gains or Losseslosses) and Net Unrealized Appreciation or Depreciation on Investments and Secured Borrowings” in the Consolidated Financial Statements for more details regarding$5.1 million of net unrealized appreciation (depreciation) on investments and secured borrowings forequity investments. 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.

During the nine months ended June 30, 2023, unrealized depreciation included a one-time unrealized loss of $20.7 million that resulted solely from accounting adjustments related to the OSI2 Merger.
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, 2023, we had $1,785.0 million in senior securities and our asset coverage ratio was 182.0%. During the year ended September 30, 2022, we increased our 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 us with increased capacity to opportunistically deploy capital into the growthmarkets. As of June 30, 2023, our investment portfolio throughnet debt 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 1.14x.
For the threenine months ended December 31, 2017,June 30, 2023, we experienced a net decreaseincrease in cash and cash equivalents (including restricted cash) of $7.6$46.3 million. During that period, net cash used in operating activities was $15.0 million, primarily from funding $597.7 million of investments and $58.8 million of net increase in net receivables from unsettled transactions, partially offset by $521.2 million of principal payments and sale proceeds received, the cash activities related to $133.2 million of net investment income, $22.3 million of cash received in connection with the OSI2 merger and a $20.5 million decrease in due from portfolio companies. During the same period, net cash provided by financing activities was $61.0 million, primarily consisting of $210.0 million of net borrowings under the credit facilities, partially offset by $139.1 million of cash distributions paid to our stockholders.
For the nine months ended June 30, 2022, we experienced a net increase in cash and cash equivalents (including restricted cash) of $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.
For the three months ended December 31, 2016, we experienced a net increase in cashDRIP, and cash equivalents of $61.9 million. During that period, we received $179.1$0.3 million of net cash from operating activities, primarily from $225.5 million of principal payments, PIK payments and sale proceeds received and the cash activities related to $23.3 million of net investment income, partially offset by funding $104.2 million of investments and net revolvers. During the same period, net cash used bydeferred financing activities was $117.2 million, primarily consisting of $74.9 million of net repayments under our credit facilities, $24.0 million of cash distributions paid to our stockholders, $12.5 million of repurchases of common stock under stock repurchase program, $4.5 million of repayments of secured borrowings and $1.3 million of repurchases of common stock under our DRIP.costs paid.
As of December 31, 2017,June 30, 2023, we had $45.8$72.7 million in cash and cash equivalents (including $0.3$13.0 million of restricted cash), portfolio investments (at fair value) of $1.4$3.1 billion, $9.1$29.5 million of interest, dividends and fees receivable, $24.6$2.1 million of due from portfolio companies, $482.5 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $36.5 million of net payablesreceivables from unsettled transactions, $205.0$1,135.0 million of borrowings outstanding under our credit facilities $406.5and $605.1 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, 2017,2022, we had $59.9$26.4 million in cash and cash equivalents (including $6.9$2.8 million of restricted cash), portfolio investments (at fair value) of $1.5$2.5 billion, $6.9$35.6 million of interest, dividends and fees receivable, $58.7$22.5 million of due from portfolio companies, $500.0 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $22.3 million of net payables from unsettled transactions, $256.0$700.0 million of borrowings outstanding under our credit facilities $406.1and $601.0 million of unsecured notes payable (net of unamortized financing costs), $13.3 million of secured borrowings (at fair value)costs, unaccreted discount and unfunded commitments of $118.1 million. As of September 30, 2017, included in restricted cash was $6.8 million that was held at U.S. Bank, National Association in connection with our credit facility with Sumitomo Mitsui Banking Corporation, or SMBC.


Significant Capital Transactions
The following table reflects the distributions per share that our Board of Directors has declared, including shares issued under our DRIP, on our common stock since October 1, 2016:
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
 ______________
(1)Shares were purchased on the open market and distributed.
On November 28, 2016, our Board of Directors approved a common stock repurchase program authorizing us to repurchase up to $12.5 million in the aggregate of our outstanding common stock through November 28, 2017. Common stock repurchases under the program were made in the open market. During the three months ended December 31, 2016, we repurchased 2,298,247 shares of
our common stock for $12.5 million, including commissions, under the common stock repurchase program. This authorization has been fully utilized.
Indebtedness
See “Note 6. Borrowings” in the Consolidated Financial Statements for more details regarding our indebtedness and secured borrowings.
SBIC Subsidiaries
As of December 31, 2017 and September 30, 2017, Fifth Street Mezzanine Partners IV, L.P., or FSMP IV, and Fifth Street Mezzanine Partners V, L.P., or FSMP V, had no U.S. Small Business Administration, or SBA, -guaranteed debentures outstanding, and we had commenced actions to surrender 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 surrender 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 a senior secured revolving credit facility, or the ING facility, pursuant to a Senior Secured Revolving Credit Agreement, or the ING Credit Agreement, with the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents. As of December 31, 2017, the ING facility permits up to $600 million of borrowings and includes an “accordion” feature that permits us, 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 our election, either (a) LIBOR (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 or (b) an alternate base rate plus a margin of 1.25%, 1.50% or 1.75% per annum depending on the Company’s senior debt coverage ratio as calculated under the ING Credit Agreement. The period during which we may make drawings under the ING facility expires on November 29, 2020, or the Revolving Termination Date, and the final maturity date of the facility will be one year following the Revolving Termination Date.
Each loan or letter of credit originated under the ING facility is subject to the satisfaction of certain conditions. We cannot be assured that we will be able to borrow funds under the ING facility at any particular time or at all.


The following table describes significant financial covenants, as of December 31, 2017, with which we must comply under the ING facility on a quarterly basis:
Financial CovenantDescription (1)
Minimum shareholders' equityNet assets shall not be less than the greater of (a) 40% of total assets and (b) $700 million plus 50% of the aggregate net proceeds of all sales of equity interests after November 30, 2017
Asset coverage ratioAsset coverage ratio shall not be less than 2.00:1
Interest coverage ratioInterest coverage ratio shall not be less than 2.00:1
Minimum net worthNet worth shall not be less than $650 million
 ___________ 
(1) We were in compliance with all financial covenants under the ING facility based on the financial information contained in this Quarterly Report Form 10-Q for the three months ended December 31, 2017.
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, we had $205.0 million of borrowings outstanding under the ING facility, which had aswap fair value of $205.0 million. 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 ING Facility bore interest at a weighted average interest rate of 3.705% and 2.945% for the period from October 1, 2017 to November 30, 2017 and the three months ended December 31, 2016, respectively.
For the three months ended December 31, 2017, we recorded interest expense of $2.7 million, in the aggregate, related to the Prior ING Facility and the ING facility. For the three months ended December 31, 2016, we recorded interest expense of $4.2 million related to the Prior ING Facility.
Sumitomo Facility
On September 16, 2011, our consolidated wholly-owned bankruptcy remote, special purpose subsidiary, or Funding II, entered into a credit facility, or the Sumitomo facility, with SMBC, an affiliate of Sumitomo Mitsui Financial Group, Inc., as administrative agent, and each of the lenders from time to time party thereto. Prior to November 24, 2017, the Sumitomo facility permitted up to $125 million of borrowings (subject to collateral requirements)adjustment). Borrowings under the Sumitomo facility bore interest at a rate of either (i) LIBOR (1-month) plus 2.00% per annum, with no LIBOR floor, if the borrowings under the Sumitomo facility were greater than 35% of the aggregate available borrowings under the Sumitomo facility or (ii) LIBOR (1-month) plus 2.25% per annum, if the borrowings under the Sumitomo facility were less than or equal to 35% of the aggregate available borrowings under the Sumitomo facility. On November 24, 2017, Funding II, as the borrower under the Sumitomo facility, repaid all outstanding borrowings thereunder, following which the Sumitomo facility was terminated. Obligations under the Sumitomo facility would have otherwise matured on the earlier of August 6, 2018 or the date on which the Prior ING Facility was repaid, refinanced or terminated. As of December 31, 2017, the Company had no borrowings outstanding under the Sumitomo facility.
Our borrowings under the Sumitomo facility bore interest at a weighted average interest rate of 3.501% and 2.784% for the period from October 1, 2017 through termination on November 24, 2017 and the three months ended December 31, 2016, respectively. For the three months ended December 31, 2017 and December 31, 2016, we recorded interest expense of $0.7 million and $0.6 million, respectively, related to the Sumitomo facility.

2019 Notes
For each of the three months ended December 31, 2017 and December 31, 2016, we recorded interest expense of $3.3 million related to our 4.875% unsecured notes due 2019, or the 2019 Notes. During the three months ended December 31, 2017 and December 31, 2016, we did not repurchase any of the 2019 Notes in the open market.
As of December 31, 2017, there were $250.0 million of 2019 Notes outstanding, which had a carrying value and fair value of $248.6 million and $250.7 million, respectively.
2024 Notes
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 million, respectively, related to the secured borrowings.
Off-Balance Sheet Arrangements
We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of December 31, 2017,June 30, 2023, our only off-balance sheet arrangements consisted of $98.7$274.4 million of unfunded commitments, which was comprised of $88.0$247.3 million to provide debt and equity financing to certain of our portfolio companies $1.3and $27.1 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, 2017,2022, our only off-balance
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sheet arrangements consisted of $118.1$224.2 million of unfunded commitments, which was comprised of $107.3$175.2 million to provide debt and equity financing to certain of our portfolio companies $1.3and $49.0 million to provide equity financing to SLF JV Ithe JVs.
As of June 30, 2023, we have analyzed cash and $9.5 million relatedcash equivalents, availability under our credit facilities, the ability to unfunded limited partnership interests. Such commitments are subject to our portfolio companies' satisfactionrotate out of certain financialassets and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in excess of the amount recognized in our Consolidated Statements of Assets and Liabilities.
A listamounts of unfunded commitments by investment (consistingthat could be drawn and believe our liquidity and capital resources are sufficient to take advantage of revolvers, term loans with delayed draw components, SLF JV I subordinated notes and LLC equity interests, and limited partnership interests) as of December 31, 2017 and September 30, 2017 is shownmarket opportunities 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, 2017 and September 30, 2017.
(2) This portfolio company does not have the ability to draw on this unfunded commitment as of December 31, 2017.



current economic climate.
Contractual Obligations
The following table reflects information pertaining to our principal debt outstanding under the ING facility,Syndicated Facility (as defined below), Citibank Facility (as defined below), OSI2 Citibank Facility (as defined below), our 3.500% notes due 2025, or the Sumitomo facility, the 2019 Notes, the 2024 Notes, the 20282025 Notes, and our secured borrowings:2.700% notes due 2027, or the 2027 Notes:
  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
 
Debt Outstanding
as of September 30, 2022		Debt Outstanding
as of June 30, 2023		Weighted average debt
outstanding for the
nine months ended
June 30, 2023		Maximum debt
outstanding for the nine months ended
June 30, 2023
Syndicated Facility$540,000 $800,000 $710,018 $840,000 
Citibank Facility160,000 — 138,689 175,000 
OSI2 Citibank Facility— 335,000 141,355 355,000 
2025 Notes300,000 300,000 300,000 300,000 
2027 Notes350,000 350,000 350,000 350,000 
Total debt$1,350,000 $1,785,000 $1,640,062 
 ___________ 
(1) Includes the Prior ING facility for periods prior to November 30, 2017.

The following table reflects our contractual obligations arising from the ING facility, our secured borrowings, our 2019 Notes, our 2024Syndicated Facility, OSI2 Citibank Facility, 2025 Notes and our 20282027 Notes:
 
 Payments due by period as of June 30, 2023
Contractual ObligationsTotalLess than 1 year1-3 years3-5 years
Syndicated Facility$800,000 $— $— $800,000 
Interest due on Syndicated Facility287,144 57,587 115,174 114,383 
OSI2 Citibank Facility335,000 — — 335,000 
Interest due on OSI2 Citibank Facility88,801 24,818 49,636 14,347 
2025 Notes300,000 — 300,000 — 
Interest due on 2025 Notes17,433 10,500 6,933 — 
2027 Notes350,000 — — 350,000 
Interest due on 2027 Notes (a)85,910 24,214 48,428 13,268 
Total$2,264,288 $117,119 $520,171 $1,626,998 
__________ 
(a) The interest due on the 2027 Notes was calculated net of the interest rate swap.
Equity Issuances
On January 23, 2023, in connection with the OSI2 Merger, we issued an aggregate of 15,860,200 shares of common stock to former OSI2 stockholders.
During the three and nine months ended June 30, 2023, we issued an aggregate of zero and 94,879 shares of common stock, respectively, 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 the issuance and sale by us of shares of common stock, having an aggregate offering price of up to $125.0 million. The equity distribution agreement was amended on February 8, 2023 to allow for the sale of shares of our common stock having an aggregate offering price of up to $125 million under our current registration statement. 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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  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
In connection with the "at the market" offering, we did not issue or sell any shares of common stock during the three and nine months ended June 30, 2023.

Distributions
The following table reflects the distributions per share that we have paid, including shares issued under our DRIP, on our common stock since October 1, 2020. The distributions per share and shares issued under our DRIP information disclosed in this table for dates prior to January 23, 2023 have been retrospectively adjusted to reflect our 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.
DistributionDate DeclaredRecord DatePayment DateAmount
per Share		Cash
Distribution		DRIP Shares
Issued (1)		DRIP Shares
Value
QuarterlyNovember 13, 2020December 15, 2020December 31, 2020$0.33 $ 15.0 million31,321 $ 0.5 million
QuarterlyJanuary 29, 2021March 15, 2021March 31, 20210.36 16.4 million27,234 0.5 million
QuarterlyApril 30, 2021June 15, 2021June 30, 20210.39 22.9 million25,660 0.5 million
QuarterlyJuly 30, 2021September 15, 2021September 30, 20210.435 25.5 million28,358 0.6 million
QuarterlyOctober 13, 2021December 15, 2021December 31, 20210.465 27.2 million35,990 0.8 million
QuarterlyJanuary 28, 2022March 15, 2022March 31, 20220.48 28.5 million34,804 0.8 million
QuarterlyApril 29, 2022June 15, 2022June 30, 20220.495 29.4 million43,676 0.9 million
QuarterlyJuly 29, 2022September 15, 2022September 30, 20220.51 30.2 million51,181 1.0 million
QuarterlyNovember 10, 2022December 15, 2022December 30, 20220.54 32.0 million53,369 1.1 million
SpecialNovember 10, 2022December 15, 2022December 30, 20220.42 24.8 million41,510 0.8 million
QuarterlyJanuary 27, 2023March 15, 2023March 31, 20230.55 41.1 million68,412 1.3 million
QuarterlyApril 28, 2023June 15, 2023June 30, 20230.55 41.3 million57,279 1.1 million
 ______________
(1)Shares were purchased on the open market and distributed other than with respect to the distributions paid on December 31, 2021, March 31, 2022 and December 30, 2022. New shares were issued with respect to distributions paid on December 31, 2021, March 31, 2022 and December 30, 2022.

Indebtedness
See “Note 6. Borrowings” in the Consolidated Financial Statements for more details regarding our indebtedness.
Syndicated Facility

As of June 30, 2023, (i) the size of our senior secured revolving credit facility, or, as amended and/or restated from time to time, the Syndicated Facility, pursuant to a senior secured revolving credit agreement, with the lenders, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc. and MUFG 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, was $1.218 billion (with an “accordion” feature that permits us, under certain circumstances, to increase the size of the facility to up to the greater 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 on $1.035 billion of commitments will expire on June 23, 2027 and the maturity date was June 23, 2028, (iii) the period during which we may make drawings with respect to the remaining commitments will expire on May 4, 2025 and the maturity date is May 4, 2026 and (iv) the interest rate margin for (a) SOFR loans (which may be 1- or 3-month, at our option) was 2.00% plus a SOFR adjustment which ranges between 0.11448% and 0.26161% and (b) alternate base rate loans was 1.00%.

Each loan or letter of credit originated or assumed under the Syndicated 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 assure you that we will be able to borrow funds under the Syndicated Facility at any particular time or at all.
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The following table describes significant financial covenants, as of June 30, 2023, with which we must comply under the Syndicated Facility on a quarterly basis:
Financial CovenantDescriptionTarget ValueMarch 31, 2023 Reported Value (1)
Minimum shareholders' equityNet assets shall not be less than the sum of (x) $600 million, plus (y) 50% of the aggregate net proceeds of all sales of equity interests after May 6, 2020
$768 million$1,515 million
Asset coverage ratioAsset coverage ratio shall not be less than the greater of 1.50:1 and the statutory test applicable to us1.50:11.83:1
Interest coverage ratioInterest coverage ratio shall not be less than 2.25:12.25:12.95:1
Minimum net worthNet worth shall not be less than $550 million$550 million$1,130 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, 2023. We were in compliance with all financial covenants under the Syndicated Facility based on the financial information contained in this Quarterly Report on Form 10-Q.
As of June 30, 2023 and September 30, 2022, we had $800.0 million and $540.0 million of borrowings outstanding under the Syndicated Facility, respectively, which had a fair value of $800.0 million and $540.0 million, respectively. Our borrowings under the Syndicated Facility bore interest at a weighted average interest rate of 6.584% and 2.406% for the nine months ended June 30, 2023 and 2022, respectively. For the three and nine months ended June 30, 2023, we recorded interest expense (inclusive of fees) of $14.3 million and $37.4 million, respectively, related to the Syndicated Facility. For the three and nine months ended June 30, 2022, we recorded interest expense (inclusive of fees) of $4.8 million and $12.6 million, respectively, related to the Syndicated Facility.
Citibank Facility
On March 19, 2021, we became party to a revolving credit facility, or, as amended and/or restated from time to time, the Citibank Facility, with OCSL Senior Funding II LLC, our wholly-owned, special purpose financing subsidiary, as the borrower, us, as collateral manager and seller, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian. On May 25, 2023, in connection with an amendment to the OSI2 Citibank Facility, the Citibank Facility was terminated. In connection with the termination of the Citibank Facility, we accelerated $0.6 million of deferred financing costs into interest expense during the three months ended June 30, 2023.
As of September 30, 2022, we had $160.0 million outstanding under the Citibank Facility, which had a fair value of $160.0 million. Our borrowings under the Citibank Facility bore interest at a weighted average interest rate of 6.762% and 2.563% for the nine months ended June 30, 2023 and June 30, 2022, respectively. For the three and nine months ended June 30, 2023, we recorded interest expense (inclusive of fees) of $2.4 million and $8.0 million, respectively, related to the Citibank Facility. For the three and nine months ended June 30, 2022, we recorded interest expense (inclusive of fees) of $1.6 million and $3.5 million related to the Citibank Facility.

OSI2 Citibank Facility
On January 23, 2023, as a result of the consummation of the OSI2 Merger, we became party to a revolving credit facility, or, as amended and/or restated from time to time, the OSI2 Citibank Facility, with OSI 2 Senior Lending SPV, LLC, or OSI 2 SPV, our wholly-owned and consolidated subsidiary, as the borrower, us, as collateral manager, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Deutsche Bank Trust Company Americas, as collateral agent.
As of June 30, 2023, we were able to borrow up to $400 million under the OSI2 Citibank Facility (subject to borrowing base and other limitations). As of June 30, 2023, the OSI2 Citibank Facility has a reinvestment period through May 25, 2025, during which advances may be made, and matures on January 26, 2027. Following the reinvestment period, OSI 2 SPV will be required to make certain mandatory amortization payments. Borrowings under the OSI2 Citibank Facility bear interest payable quarterly at a rate per year equal to (a) in the case of a lender that is identified as a conduit lender, the lesser of (i) the applicable commercial paper rate for such conduit lender and (ii) SOFR plus 2.00% per annum on broadly syndicated loans and 2.75% per annum on all other eligible loans and (b) for all other lenders under the OSI2 Citibank Facility, SOFR plus 2.00% per annum on broadly syndicated loans and 2.75% per annum on all other eligible loans, subject in all cases to a minimum overall rate of SOFR plus 2.50% per annum. After the reinvestment period, the applicable spread is 4.00% per year. There is also a non-usage fee of 0.50% per year on the unused portion of the OSI2 Citibank Facility, payable quarterly; provided that if the unused portion of the OSI2 Citibank Facility is greater than 30% of the commitments under the OSI2 Citibank Facility, the non-usage fee will be based on an unused portion of 30% of the commitments under the OSI2 Citibank Facility. The OSI2 Citibank Facility is secured by a first priority security interest in substantially all of OSI 2 SPV’s assets. As part of the OSI2 Citibank Facility, OSI 2 SPV is subject to certain limitations as to how borrowed funds may be used and the types of loans that are eligible to be acquired by OSI 2 SPV including restrictions on sector concentrations, loan size, tenor and minimum investment
97

ratings (or estimated ratings). The OSI2 Citibank Facility also contains certain requirements relating to interest coverage, collateral quality and portfolio performance, certain violations of which could result in the acceleration of the amounts due under the OSI2 Citibank Facility.
As of June 30, 2023, we had $335.0 million outstanding under the OSI2 Citibank Facility, which had a fair value of $335.0 million. Our borrowings under the OSI2 Citibank Facility bore interest at a weighted average interest rate of 7.275% for the period from January 23, 2023 to June 30, 2023. For three months ended June 30, 2023 and the period from January 23, 2023 to June 30, 2023, we recorded interest expense (inclusive of fees) of $4.9 million and $8.0 million, respectively, related to the OSI2 Citibank Facility.
2025 Notes
On 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.
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 more closely align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, we receive a fixed interest rate of 2.700% and pay a floating interest rate of the three-month LIBOR plus 1.658% on a notional amount of $350 million. We designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship.
The below table presents the components of the carrying value of the 2025 Notes and the 2027 Notes as of June 30, 2023 and September 30, 2022:
 As of June 30, 2023As of September 30, 2022
($ in millions)2025 Notes2027 Notes2025 Notes2027 Notes
Principal$300.0 $350.0 $300.0 $350.0 
  Unamortized financing costs(1.2)(2.7)(1.8)(3.2)
  Unaccreted discount(0.8)(0.6)(1.2)(0.7)
  Interest rate swap fair value adjustment— (39.6)— (42.0)
Net carrying value$298.0 $307.1 $297.0 $304.1 
Fair Value$285.7 $302.3 $283.1 $294.0 
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The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2023:
($ in millions)2025 Notes2027 Notes
Three months ended June 30, 2023Nine months ended June 30, 2023Three months ended June 30, 2023Nine months ended June 30, 2023
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— — 3.7 9.4 
 Total interest expense$2.9 $8.8 $6.3 $17.2 
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)3.500 %3.500 %6.912 %6.274 %
The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three and nine months ended June 30, 2022:
($ in millions)2025 Notes2027 Notes
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 %

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 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 2015 and 2016 andyear 2021. For the calendar year 2022, we incurred $0.1 million of excise tax. We do not expect to incur a U.S. federal excise tax for the calendar year 2017. We may incur a federal excise tax in future years.2023.
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.
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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.
2022.
Year EndedQualified Net Interest IncomeQualified Short-Term Capital Gains
September 30, 2017202285.880.8 %—
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.
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 28, 2023, our Board of Directors declared a quarterly dividenddistribution of $0.085$0.55 per share, payable in cash on March 30, 2018September 29, 2023 to stockholders of record on MarchSeptember 15, 2018.2023.




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


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Item 3. Quantitative and Qualitative Disclosures about Market Risk


We are subject to financial market risks, including changes in the valuations of our investment portfolio and interest rates.
Valuation Risk
Our investments may not have a readily available market price, and we value these investments at fair value as determined by Oaktree, as our valuation designee. 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 Oaktree 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 SOFR, LIBOR, 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, 2023, 86.0% of our debt investment portfolio (at fair value) and 80.5%85.8% of our debt investment portfolio (at cost) bore interest at floating rates. As of September 30, 2022, 86.5% of our debt investment portfolio (at fair value) and 86.3% 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, 2023 and September 30, 20172022, was as follows:
 June 30, 2023September 30, 2022
($ in thousands)Fair Value% of Floating Rate PortfolioFair Value% of Floating Rate Portfolio
0%$230,265 9.0 %$228,186 11.1 %
>0% and <1%341,280 13.3 %388,458 19.0 %
1%1,525,626 59.3 %1,364,668 66.6 %
>1%474,287 18.4 %68,332 3.3 %
Total Floating Rate Investments$2,571,458 100.0 %$2,049,644 100.0 %
  December 31, 2017 September 30, 2017
($ 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, 2023, the following table shows the approximate annualized net increase (decrease) in components of net assets resulting from operations (excluding the impact of any potential incentive fees) 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$66,346 $(37,125)$29,221 
20053,072 (29,700)23,372 
15039,798 (22,275)17,523 
10026,523 (14,850)11,673 
5013,262 (7,425)5,837 


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($ 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
($ in thousands) Basis point decrease(Decrease) in Interest IncomeDecrease in Interest ExpenseNet (decrease) in net assets resulting from operations
50$(13,262)$7,425 $(5,837)
100(26,523)14,850 (11,673)
150(39,785)22,275 (17,510)
200(53,033)29,700 (23,333)
250(66,142)37,125 (29,017)
Basis point decrease (1) Interest Income Interest Expense Net increase (decrease)
100 (7,800) 2,200
 (5,600)

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


We regularly measure exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on this review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. The following table shows a comparison of the interest rate base for our interest-bearing cash and outstanding investments, at principal, and our outstanding borrowings as of December 31, 2017June 30, 2023 and September 30, 2017:2022:
 June 30, 2023September 30, 2022
($ in thousands)Interest Bearing
Cash and
Investments		BorrowingsInterest Bearing
Cash and
Investments		Borrowings
Money market rate$5,193 $— $5,262 $— 
Prime rate3,778 — 2,618 — 
LIBOR
30 day431,019 — 669,273 540,000 
90 day (a)535,860 350,000 928,978 510,000 
180 day18,060 — 199,301 — 
EURIBOR
30 day€29,985 — €24,838 — 
90 day25,731 — 16,911 — 
180 day6,666 — 1,964 — 
SOFR
30 day$479,666 800,000 $50,099 — 
90 day1,108,422 335,000 190,799 — 
180 day10,519 — 18,390 — 
SONIA£53,250 — £40,137 — 
Fixed rate$466,429 300,000 $341,749 300,000 
__________ 
(a)Borrowings include the 2027 Notes, which pay interest at a floating rate under the terms of the interest rate swap.
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  December 31, 2017 September 30, 2017
($ in thousands) 
Interest Bearing
Cash and
Investments
 Borrowings Interest Bearing
Cash and
Investments		 Borrowings
Money market rate $45,754
 $—
 $59,913
 $—
Prime rate 2,756
 —
 1,061
 —
LIBOR        
30 day 41,802
 205,000
 42,165
 255,993
90 day 1,168,248
 13,489
 1,254,246
 13,491
Fixed rate 298,287
 411,250
 290,427
 411,250
Total $1,556,847
 $629,739
 $1,647,812
 $680,734




Item 4. Controls and Procedures


(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, 2023. 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, 2023, 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, 2023 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
There have been no material changes during the three months ended December 31, 2017June 30, 2023 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2017.2022.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
None.


Item 3. Defaults Upon Senior Securities
None.

Item 4.     Mine Safety Disclosures
Not applicable.


Item 5. Other Information
None.

During the three months ended June 30, 2023, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement”.

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Item 6. Exhibits

3.110.1
Restated CertificateSixth Amendment to Loan and Security Agreement, dated as of Incorporation ofMay 25, 2023, by and among the Registrant, (IncorporatedOSI 2 Senior Lending SPV, LLC, and Citibank, N.A. (incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-A (File No. 001-33901) filed on January 2, 2008).


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


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


3.4
Certificate of Amendment to Registrant’s Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Quarterly Report on Form 10-Q (File No. 001-33901) filed on May 5, 2010).
3.5
Certificate of Amendment to Registrant’s Certificate of Incorporation (Incorporated by reference to Exhibit (a)(5) filed with the Registrant’s Registration Statement on Form N-2 (File No. 333-180267) filed on April 2, 2013).
3.6
Certificate of Amendment to the Restated Certificate of Incorporation of the Company, dated as of October 17, 2017 (Incorporated by reference to Exhibit 3.11.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017)May 30, 2023).


3.710.2
ThirdAmendment No. 6 to Amended and Restated Bylaws of the Registrant (Incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-K (File No. 001-33901) filed on September 2, 2016).
3.8
Fourth Amended and Restated Bylaws of Oaktree Specialty Lending Corporation, effective as of January 29, 2018 (Incorporated by reference to Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-00755) filed on January 29, 2018)
4.1
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).
4.2
Form of Note relating to the 4.875% Notes due 2019, between Registrant and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.2 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
4.3
Form of Note relating to the 5.875% Notes due 2024, between Registrant and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.3 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
4.4
Form of Note relating to the 6.125% Notes due 2028, between Registrant and Deutsche Bank Trust Company Americas, as trustee (Incorporated by reference to Exhibit 4.4 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.1
Investment AdvisorySenior Secured Revolving Credit Agreement, dated as of October 17, 2017, betweenJune 23, 2023, by and among the Registrant, as borrower, the lenders party thereto and OaktreeING Capital Management, L.P. (IncorporatedLLC, as administrative agent (incorporated by reference to Exhibit 10.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017)June 26, 2023).
10.2
Administration Agreement, dated as of October 17, 2017, between the Registrant and Oaktree Fund Administration, LLC (Incorporated by reference to Exhibit 10.2 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.3
Pledge Agreement, dated as of October 17, 2017, between the Registrant and Fifth Street Holdings L.P. (Incorporated by reference to Exhibit 10.3 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).
10.4
Amendment No. 9 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of November 17, 2017, 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).
10.5
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).



31.1*
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2*
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1*
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.2*
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
*101.INS*Filed herewith.Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*Inline XBRL Taxonomy Extension Schema Document.
101.DEF*Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

*Filed herewith.






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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 2, 2023









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