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 DecemberMarch 31, 20172020
OR
 
 oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
  OF THE SECURITIES EXCHANGE ACT OF 1934 
COMMISSION FILE NUMBER: 1-35999
Oaktree Strategic Income Corporation
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
DELAWARE
(State or jurisdiction of
incorporation or organization)
 
61-1713295
(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 shareOCSIThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods asperiod that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  þ     NO  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  ¨   NO  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer  o
 
Accelerated filer  þ
 
Non-accelerated filer  o
 
Smaller reporting company  o
    (Do not check if a smaller reporting company)
   
Emerging growth company  þo

 
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 þo

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    YES  ¨     NO  þ
The registrant had 29,466,768 shares of common stock outstanding as of February 8, 2018.




May 5, 2020.





OAKTREE STRATEGIC INCOME CORPORATION
FORM 10-Q FOR THE QUARTER ENDED DECEMBERMARCH 31, 20172020


TABLE OF CONTENTS
 
    
   
    
 
  
  
  
  
  
  
  
   
Item 3.
Item 4.
Item 5.






 

PART I — FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.

Oaktree Strategic Income Corporation
Consolidated Statements of Assets and Liabilities
 December 31, 2017 (unaudited) September 30,
2017
 March 31, 2020 (unaudited) September 30, 2019
ASSETSASSETS  ASSETS  
Investments at fair value:        
Control investments (cost December 31, 2017: $71,635,783; cost September 30, 2017: $71,340,632) $57,180,650
 $57,606,674
Affiliate investments (cost December 31, 2017: $17,477,733; cost September 30, 2017: $17,479,053) 1,010,509
 935,913
Non-control/Non-affiliate investments (cost December 31, 2017: $495,206,582; cost September 30, 2017: $516,270,639) 483,217,174
 501,894,073
Total investments at fair value (cost December 31, 2017: $584,320,098; cost September 30, 2017: $605,090,324) 541,408,333
 560,436,660
Control investments (cost March 31, 2020: $73,157,303; cost September 30, 2019: $73,189,664) $37,833,930
 $54,326,418
Non-control/Non-affiliate investments (cost March 31, 2020: $546,774,334; cost September 30, 2019: $553,679,070) 486,545,381
 542,778,029
Total investments at fair value (cost March 31, 2020: $619,931,637; cost September 30, 2019: $626,868,734) 524,379,311
 597,104,447
Cash and cash equivalents 39,975,500
 35,604,127
 21,931,375
 5,646,899
Restricted cash 6,196,671
 7,408,260
 9,321,466
 8,404,733
Interest, dividends and fees receivable 2,679,014
 3,014,075
 1,489,472
 3,813,730
Due from portfolio companies 59,606
 286,260
 539,587
 350,597
Receivables from unsettled transactions 17,806,666
 505,000
 28,775,575
 5,091,671
Deferred financing costs 1,097,060
 1,222,933
 2,308,557
 2,139,299
Derivative asset at fair value 316,967
 20,876
Other assets 1,036,645
 185,336
 731,202
 761,462
Total assets $610,259,495
 $608,662,651
 $589,793,512
 $623,333,714
LIABILITIES AND NET ASSETSLIABILITIES AND NET ASSETS  LIABILITIES AND NET ASSETS  
Liabilities:        
Accounts payable, accrued expenses and other liabilities $1,000,417
 $482,877
 $1,569,469
 $901,410
Base management fee and incentive fee payable 1,630,588
 2,236,187
 1,442,121
 1,368,431
Due to affiliate 724,894
 450,517
 1,041,237
 1,457,007
Interest payable 2,004,249
 1,996,171
 2,532,742
 2,750,587
Payables from unsettled transactions 62,920,436
 49,029,789
 44,817,245
 37,724,473
Director fees payable 130,000
 98,008
 
 25,000
Credit facilities payable 74,056,800
 82,956,800
 327,156,800
 294,656,800
Notes payable (net of $2,151,605 and $2,224,132 of unamortized financing costs as of December 31, 2017 and September 30, 2017, respectively) 177,848,395
 177,775,868
Total liabilities 320,315,779
 315,026,217
 378,559,614
 338,883,708
Commitments and contingencies (Note 13)    
Commitments and contingencies (Note 14)    
Net assets:        
Common stock, $0.01 par value, 150,000,000 shares authorized; 29,466,768 shares issued and outstanding as of December 31, 2017 and September 30, 2017 294,668
 294,668
Common stock, $0.01 par value per share, 150,000,000 shares authorized; 29,466,768 shares issued and outstanding as of March 31, 2020 and September 30, 2019 294,668
 294,668
Additional paid-in-capital 373,995,934
 373,995,934
 369,199,332
 369,199,332
Net unrealized depreciation on investments and secured borrowings (42,911,765) (44,653,664)
Net realized loss on investments (28,737,328) (24,354,622)
Accumulated overdistributed net investment income (12,697,793) (11,645,882)
Total net assets (equivalent to $9.84 and $9.97 per common share as of December 31, 2017 and September 30, 2017, respectively) (Note 12) 289,943,716
 293,636,434
Accumulated overdistributed earnings (158,260,102) (85,043,994)
Total net assets (equivalent to $7.17 and $9.65 per common share as of March 31, 2020 and September 30, 2019, respectively) (Note 12) 211,233,898
 284,450,006
Total liabilities and net assets $610,259,495
 $608,662,651
 $589,793,512
 $623,333,714
See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation
Consolidated Statements of Operations
(unaudited)
 Three months ended
December 31, 2017
 Three months ended
December 31, 2016
 
Three months ended
March 31, 2020
 Three months ended
March 31, 2019
 
Six months ended
March 31, 2020
 
Six months ended
March 31, 2019
Interest income:            
Control investments $1,198,697
 $1,395,436
 $
 $1,472,785
 $1,436,726
 $2,958,208
Affiliate investments 
 97,936
Non-control/Non-affiliate investments 8,764,475
 9,384,005
 9,638,008
 10,769,097
 19,382,457
 20,420,246
Interest on cash and cash equivalents 71,095
 30,542
 27,597
 52,132
 58,307
 119,127
Total interest income 10,034,267
 10,907,919
 9,665,605
 12,294,014
 20,877,490
 23,497,581
PIK interest income:            
Control investments 295,151
 
Affiliate investments 
 48,972
Non-control/Non-affiliate investments 3,263
 10,432
 296,894
 6,004
 300,457
 13,749
Total PIK interest income 298,414
 59,404
 296,894
 6,004
 300,457
 13,749
Fee income:            
Affiliate investments 
 3,148
Non-control/Non-affiliate investments 398,049
 403,296
 380,114
 181,806
 767,779
 229,441
Total fee income 398,049
 406,444
 380,114
 181,806
 767,779
 229,441
Dividend and other income:    
Control investments 
 187,420
Total dividend and other income 
 187,420
Total investment income 10,730,730
 11,561,187
 10,342,613
 12,481,824
 21,945,726
 23,740,771
Expenses:            
Base management fee 1,412,172
 1,425,216
 1,442,121
 1,451,393
 2,947,647
 2,866,160
Part I incentive fee 259,722
 990,377
 271,520
 1,096,144
 1,263,658
 1,950,522
Professional fees 1,020,183
 258,528
 263,188
 375,601
 636,374
 834,213
Board of Directors fees 130,000
 123,650
Directors fees 105,000
 105,278
 210,000
 210,278
Interest expense 2,764,477
 2,456,128
 3,477,099
 3,771,530
 6,903,990
 6,994,484
Administrator expense 279,684
 146,459
 229,039
 231,033
 478,953
 665,900
General and administrative expenses 435,210
 533,011
 264,391
 283,338
 537,870
 615,564
Total expenses 6,301,448
 5,933,369
 6,052,358
 7,314,317
 12,978,492
 14,137,121
Fees waived (117,493) (6,232) (271,520) (49,253) (322,121) (476,647)
Insurance recoveries 
 (250,000)
Net expenses 6,183,955
 5,677,137
 5,780,838
 7,265,064
 12,656,371
 13,660,474
Net investment income 4,546,775
 5,884,050
 4,561,775
 5,216,760
 9,289,355
 10,080,297
Unrealized appreciation (depreciation) on investments:    
Unrealized appreciation (depreciation):        
Control investments (721,175) (1,571,194) (16,325,059) 1,684,985
 (16,460,127) (2,230,258)
Affiliate investments 75,916
 (1,187,404)
Non-control/Non-affiliate investments 2,387,158
 (2,468,842) (51,578,952) 6,989,963
 (49,327,912) (8,780,850)
Net unrealized appreciation (depreciation) on investments 1,741,899
 (5,227,440)
Net unrealized appreciation on secured borrowings 
 (14,575)
Realized gain (loss) on investments and secured borrowings:    
Affiliate investments 28
 
Foreign currency forward contract 485,679
 122,463
 296,091
 47,895
Net unrealized appreciation (depreciation) (67,418,332) 8,797,411
 (65,491,948) (10,963,213)
Realized gains (losses):        
Non-control/Non-affiliate investments (4,382,734) 82,762
 (7,334,148) (77,774) (7,611,373) 1,369,532
Net realized gain (loss) on investments and secured borrowings (4,382,706) 82,762
Net increase in net assets resulting from operations $1,905,968
 $724,797
Foreign currency forward contract (24,959) (240,970) (267,444) 8,120
Net realized gains (losses) (7,359,107) (318,744) (7,878,817) 1,377,652
Net realized and unrealized gains (losses) (74,777,439) 8,478,667
 (73,370,765) (9,585,561)
Net increase (decrease) in net assets resulting from operations $(70,215,664) $13,695,427
 $(64,081,410) $494,736
Net investment income per common share — basic and diluted $0.15
 $0.20
 $0.15
 $0.18
 $0.32
 $0.34
Earnings per common share — basic and diluted (Note 5) $0.06
 $0.02
Earnings (loss) per common share — basic and diluted (Note 5) $(2.38) $0.46
 $(2.17) $0.02
Weighted average common shares outstanding — basic and diluted 29,466,768
 29,466,768
 29,466,768
 29,466,768
 29,466,768
 29,466,768
Distributions per common share $0.19
 $0.23
See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation
Consolidated Statements of Changes in Net Assets
(unaudited)
  Three months ended
December 31, 2017
 Three months ended
December 31, 2016
Operations:    
Net investment income $4,546,775
 $5,884,050
Net unrealized appreciation (depreciation) on investments 1,741,899
 (5,227,440)
Net unrealized appreciation on secured borrowings 
 (14,575)
Net realized gain (loss) on investments and secured borrowings (4,382,706) 82,762
Net increase in net assets resulting from operations 1,905,968
 724,797
Stockholder transactions:    
Distributions to stockholders (5,598,686) (6,630,023)
Net decrease in net assets from stockholder transactions (5,598,686) (6,630,023)
Capital share transactions:    
Issuance of common stock under dividend reinvestment plan 159,167
 84,479
Repurchases of common stock under dividend reinvestment plan (159,167) (84,479)
Net change in net assets from capital share transactions 


Total decrease in net assets (3,692,718) (5,905,226)
Net assets at beginning of period 293,636,434
 325,829,394
Net assets at end of period $289,943,716
 $319,924,168
Net asset value per common share $9.84
 $10.86
Common shares outstanding at end of period 29,466,768
 29,466,768







  Three months ended
March 31, 2020
 Three months ended
March 31, 2019
 Six months ended
March 31, 2020
 Six months ended
March 31, 2019
Operations:        
Net investment income $4,561,775
 $5,216,760
 $9,289,355
 $10,080,297
Net unrealized appreciation (depreciation) (67,418,332) 8,797,411
 (65,491,948) (10,963,213)
Net realized gains (losses) (7,359,107) (318,744) (7,878,817) 1,377,652
Net increase (decrease) in net assets resulting from operations (70,215,664) 13,695,427
 (64,081,410) 494,736
Stockholder transactions:        
Distributions to stockholders (4,567,348) (4,567,349) (9,134,698) (9,134,698)
Net increase (decrease) in net assets from stockholder transactions (4,567,348) (4,567,349) (9,134,698) (9,134,698)
Capital share transactions:        
Issuance of common stock under dividend reinvestment plan 77,648
 50,543
 141,982
 104,654
Repurchases of common stock under dividend reinvestment plan (77,648) (50,543) (141,982) (104,654)
Net change in net assets from capital share transactions 
 
 
 
Total increase (decrease) in net assets (74,783,012) 9,128,078
 (73,216,108) (8,639,962)
Net assets at beginning of period 286,016,910
 277,977,380
 284,450,006
 295,745,420
Net assets at end of period $211,233,898
 $287,105,458
 $211,233,898
 $287,105,458
Net asset value per common share $7.17
 $9.74
 $7.17
 $9.74
Common shares outstanding at end of period 29,466,768
 29,466,768
 29,466,768
 29,466,768

See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation
Consolidated Statements of Cash Flows
(unaudited)


  Three months ended
December 31, 2017
 Three months ended
December 31, 2016
Operating activities:   
Net increase in net assets resulting from operations $1,905,968
 $724,797
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:    
Net unrealized (appreciation) depreciation on investments (1,741,899) 5,227,440
Net unrealized appreciation on secured borrowings 
 14,575
Net realized (gain) loss on investments and secured borrowings 4,382,706
 (82,762)
PIK interest income (298,414) (59,404)
Recognition of fee income (398,049) (406,444)
Accretion of original issue discount on investments (885,752) (692,196)
Amortization of deferred financing costs 198,400
 224,300
Changes in operating assets and liabilities:    
Fee income received 425,622
 435,251
Decrease in restricted cash 1,211,589
 1,571,349
Decrease in interest, dividends and fees receivable 335,061
 808,211
(Increase) decrease in due from portfolio companies 226,654
 (435,668)
(Increase) decrease in receivables from unsettled transactions (17,301,666) 12,869,092
(Increase) decrease in other assets (851,309) 135,034
Increase (decrease) in accounts payable, accrued expenses and other liabilities 517,540
 (144,199)
Decrease in base management fee and incentive fee payable (605,599) (578,360)
Increase in due to affiliate 274,377
 138,975
Increase in interest payable 8,078
 43,743
Increase in payables from unsettled transactions 13,890,647
 14,490,000
Decrease in amounts payable to syndication partners 
 (18,750)
Increase (decrease) in director fees payable 31,992
 (112,625)
Purchases of investments and net revolver activity (143,897,574) (37,633,299)
Principal payments received on investments (scheduled payments) 1,861,286
 2,828,443
Principal payments received on investments (payoffs) 73,171,499
 58,761,164
Proceeds from the sale of investments 86,408,902
 5,123,460
Net cash provided by operating activities 18,870,059
 63,232,127
Financing activities:    
Distributions paid in cash (5,439,519) (6,545,544)
Borrowings under credit facilities 15,500,000
 4,200,000
Repayments of borrowings under credit facilities (24,400,000) (39,370,000)
Repayments of secured borrowings 
 (5,000,000)
Proceeds from issuance of notes payable 3,000,000
 
Repayments of notes payable (3,000,000) 
Repurchases of common stock under dividend reinvestment plan (159,167) (84,479)
Net cash used by financing activities (14,498,686)
(46,800,023)
Net increase in cash and cash equivalents 4,371,373
 16,432,104
Cash and cash equivalents, beginning of period 35,604,127
 19,778,841
Cash and cash equivalents, end of period $39,975,500
 $36,210,945
Supplemental information:    
Cash paid for interest $2,557,999
 $2,188,085
Non-cash financing activities:    
Issuance of shares of common stock under dividend reinvestment plan $159,167
 $84,479
  Six months ended
March 31, 2020
 Six months ended
March 31, 2019
Operating activities:    
Net increase (decrease) in net assets resulting from operations $(64,081,410) $494,736
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:    
Net unrealized (appreciation) depreciation 65,491,948
 10,963,213
Net realized (gains) losses 7,878,817
 (1,377,652)
PIK interest income (300,457) (13,749)
Accretion of original issue discount on investments (852,940) (1,197,136)
Amortization of deferred financing costs 475,742
 280,010
Purchases of investments (140,312,087) (155,778,510)
Proceeds from the sales and repayments of investments 140,374,935
 112,050,349
Changes in operating assets and liabilities:    
(Increase) decrease in interest, dividends and fees receivable 2,324,258
 203,568
(Increase) decrease in due from portfolio companies (188,990) 115,855
(Increase) decrease in receivables from unsettled transactions (23,683,904) 5,143,533
(Increase) decrease in other assets 30,260
 (38,581)
Increase (decrease) in accounts payable, accrued expenses and other liabilities 23,059
 1,088
Increase (decrease) in base management fee and incentive fee payable 73,690
 (547,236)
Increase (decrease) in due to affiliate (415,770) (653,064)
Increase (decrease) in interest payable (217,845) 1,830,825
Increase (decrease) in payables from unsettled transactions 7,092,772
 462,943
Increase (decrease) in director fees payable (25,000) 
Net cash provided by (used in) operating activities (6,312,922) (28,059,808)
Financing activities:    
Distributions paid in cash (8,992,716) (9,030,044)
Borrowings under credit facilities 63,000,000
 92,000,000
Repayments of borrowings under credit facilities (30,500,000) (59,400,000)
Repurchases of common stock under dividend reinvestment plan (141,982) (104,654)
Deferred financing costs paid 
 (10,000)
Net cash provided by (used in) financing activities 23,365,302
 23,455,302
Effect of exchange rate changes on foreign currency 148,829
 
Net increase (decrease) in cash and cash equivalents and restricted cash 17,201,209
 (4,604,506)
Cash and cash equivalents and restricted cash, beginning of period 14,051,632
 16,431,787
Cash and cash equivalents and restricted cash, end of period $31,252,841
 $11,827,281
Supplemental information:    
Cash paid for interest $6,646,093
 $4,883,649
Non-cash financing activities:    
Issuance of shares of common stock under dividend reinvestment plan $141,982
 $104,654
Deferred financing costs incurred (645,000) 
     
Reconciliation to the Consolidated Statements of Assets and Liabilities  March 31, 2020 September 30, 2019
Cash and cash equivalents $21,931,375
 $5,646,899
Restricted cash 9,321,466
 8,404,733
Total cash and cash equivalents and restricted cash $31,252,841
 $14,051,632
See notes to Consolidated Financial Statements.
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)



Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
Control Investments (3)          
 FSFR Glick JV LLC (7)(12)(15)   Multi-sector holdings      
 Subordinated Note, LIBOR+8% cash due 10/20/2021 (8) 9.23%   $64,524,032
 $64,524,032
 $57,180,650
 87.5% equity interest (18)       7,111,751
 
        71,635,783
 57,180,650
 Total Control Investments (19.7% of net assets)       $71,635,783
 $57,180,650
Affiliate Investments (4)          
 Ameritox Ltd.   Healthcare services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 (8)(13)(17) 6.69%   8,302,941
 $7,904,767
 $1,010,509
 3,309,873.6 Class A Preferred Units in Ameritox Holdings II, LLC       3,309,874
 
 327,393.6 Class B Preferred Units in Ameritox Holdings II, LLC       327,394
 
 1,007.36 Class A Units in Ameritox Holdings II, LLC       5,935,698
 
        17,477,733
 1,010,509
 Total Affiliate Investments (0.3% of net assets)       $17,477,733
 $1,010,509
           
Non-Control/Non-Affiliate Investments (6)          
 Triple Point Group Holdings, Inc.   Application software      
 First Lien Revolver, LIBOR+4.25% (1% floor) cash due 7/10/2018 (8)(11) 4.25%     $
 $(402,966)
        
 (402,966)
 New Trident Holdcorp, Inc.   Healthcare services      
 Second Lien Term Loan, LIBOR+9.5% (1.25% floor) cash due 7/31/2020 (8)(17) 11.19%   1,000,000
 893,824
 50,000
        893,824
 50,000
 NextCare, Inc.   Healthcare services      
 Senior Term Loan, LIBOR+6% (1% floor) cash due 7/31/2018 (8)(13) 7.57%   6,926,108
 6,926,108
 6,749,376
Delayed Draw Term Loan, LIBOR+6% (1% floor) cash due 7/31/2018 (8) 7.57%   1,387,506
 1,387,506
 1,343,082
        8,313,614
 8,092,458
 Aptean, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+4.25% (1% floor) cash due 12/20/2022 (8)(13)(16) 5.95%   8,222,788
 8,172,012
 8,301,603
        8,172,012
 8,301,603
 TravelCLICK, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 11/6/2021 (8)(13)(16) 9.32%   2,048,485
 2,011,896
 2,058,727
        2,011,896
 2,058,727
 TV Borrower US, LLC (7)   Integrated telecommunication services      
 First Lien Dollar Term B-1 Loan, LIBOR+4.75% (1% floor) cash due 2/22/2024 (8)(16) 6.44%   1,921,161
 1,912,724
 1,931,967
        1,912,724
 1,931,967
 BeyondTrust Software, Inc.   Application software      
 500,000 Class A membership interests in BeyondTrust Holdings LLC       500,000
 642,057
        500,000
 642,057
See notes to Consolidated Financial Statements.
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Control Investments        (8)
OCSI Glick JV LLC Multi-Sector Holdings      (10)(11)
Subordinated Note, LIBOR+6.50% cash due 10/20/2028  $66,045,551
 $66,045,552
 $37,833,930
 (6)(9)(14)(15)(16)
87.5% equity interest    7,111,751
 
 (9)(12)(14)
     73,157,303
 37,833,930
  
 Total Control Investments (17.9% of net assets)    $73,157,303
 $37,833,930
  
          
Non-Control/Non-Affiliate Investments        (13)
4 Over International, LLC Commercial Printing       
First Lien Term Loan, LIBOR+6.00% cash due 6/7/20227.45% $5,552,473
 $5,489,734
 $5,349,806
 (6)(15)
First Lien Revolver, PRIME+5.00% cash due 6/7/20218.25% 68,452
 67,950
 65,954
 (6)(15)
     5,557,684
 5,415,760
  
99 Cents Only Stores LLC General Merchandise Stores       
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/20226.95% 1,631,483
 1,571,755
 1,169,227
 (6)
     1,571,755
 1,169,227
  
Access CIG, LLC Diversified Support Services       
First Lien Term Loan, LIBOR+3.75% cash due 2/27/20255.53% 5,434,653
 5,393,775
 4,476,796
 (6)
     5,393,775
 4,476,796
  
Accupac, Inc. Personal Products       
First Lien Term Loan, LIBOR+6.00% cash due 1/17/20267.84% 3,835,865
 3,771,034
 3,768,737
 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026  
 (12,118) (12,547) (6)(14)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/17/20267.05% 477,989
 469,911
 469,625
 (6)(15)
     4,228,827
 4,225,815
  
AI Ladder (Luxembourg) Subco S.a.r.l. Electrical Components & Equipment       
First Lien Term Loan, LIBOR+4.50% cash due 7/9/20255.49% 6,468,852
 6,321,716
 5,455,377
 (6)(9)
     6,321,716
 5,455,377
  
Aldevron, L.L.C. Biotechnology       
First Lien Term Loan, LIBOR+4.25% cash due 10/12/20265.70% 4,000,000
 3,960,000
 3,780,000
 (6)
     3,960,000
 3,780,000
  
All Web Leads, Inc. Advertising       
First Lien Term Loan, LIBOR+7.50% cash due 12/29/20209.11% 23,928,327
 23,928,301
 20,109,342
 (6)(15)
     23,928,301
 20,109,342
  
Altice France S.A. Integrated Telecommunication Services       
First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.70% 7,994,000
 7,560,664
 7,654,254
 (6)(9)
     7,560,664
 7,654,254
  
Ancile Solutions, Inc. Application Software       
First Lien Term Loan, LIBOR+7.00% cash due 6/30/20218.45% 8,062,666
 7,966,649
 7,861,099
 (6)(15)
     7,966,649
 7,861,099
  
Apptio, Inc. Application Software       
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20258.25% 10,693,944
 10,521,069
 10,191,328
 (6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025  
 (11,023) (32,538) (6)(14)(15)
     10,510,046
 10,158,790
  
Asurion, LLC Property & Casualty Insurance       
First Lien Term Loan, LIBOR+3.00% cash due 11/3/20243.99% 1,994,924
 1,790,444
 1,925,102
 (6)
     1,790,444
 1,925,102
  
Avaya, Inc. Communications Equipment       
First Lien Term Loan, LIBOR+4.25% cash due 12/15/20244.95% 8,970,299
 8,900,617
 7,736,883
 (6)
     8,900,617
 7,736,883
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)




Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Dynatect Group Holdings, Inc.   Industrial machinery      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2020 (8) 5.83%   $3,776,203
 $3,776,203
 $3,662,917
        3,776,203
 3,662,917
 Central Security Group, Inc.   Specialized consumer services      
 First Lien Term Loan, LIBOR+5.625% (1% floor) cash due 10/6/2021 (8)(16) 7.19%   1,661,458
 1,657,341
 1,669,765
        1,657,341
 1,669,765
 Kellermeyer Bergensons Services, LLC   Diversified support services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 10/29/2021 (8)(13)(16) 6.48%   5,238,000
 5,196,971
 5,257,642
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 4/29/2022 (8)(13) 9.88%   280,000
 280,000
 271,250
        5,476,971
 5,528,892
 GOBP Holdings Inc.   Food retail      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 10/21/2022 (8)(13)(16) 9.94%   3,685,714
 3,645,523
 3,700,697
        3,645,523
 3,700,697
 Executive Consulting Group, LLC   Healthcare services      
 First Lien Term Loan, LIBOR+4.75% (1% floor) cash due 11/21/2019 (8)(13) 6.44%   7,000,000
 7,000,000
 6,999,693
 Delayed Draw Term Loan, LIBOR+4.75% (1% floor) cash due 11/21/2019 (8) 6.44%   3,749,980
 3,749,980
 3,749,815
        10,749,980
 10,749,508
 Metamorph US 3, LLC   Internet software & services      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash 2% PIK due 12/1/2020 (8)(13)(17) 7.07%   14,031,118
 13,136,533
 5,327,616
 First Lien Revolver, LIBOR+6.5% (1% floor) cash due 12/1/2020 (8)(11)(13)(17) 8.07%   1,080,000
 1,014,310
 (36,540)
        14,150,843
 5,291,076
 Compuware Corporation   Internet software & services      
 First Lien Term Loan B3, LIBOR+4.25% (1% floor) cash due 12/15/2021 (8)(13)(16) 5.63%   8,402,243
 8,328,268
 8,467,906
        8,328,268
 8,467,906
 Motion Recruitment Partners LLC   Human resources & employment services      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 2/13/2020 (8)(13) 7.57%   13,411,554
 13,401,393
 13,424,731
 First Lien Revolver, LIBOR+6% (1% floor) cash due 2/13/2020 (8)(11) 7.57%     (960) 2,849
        13,400,433
 13,427,580
 PowerPlan, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 2/23/2022 (8)(13) 6.82%   17,834,390
 17,796,463
 17,834,415
 First Lien Revolver, LIBOR+5.25% (1% floor) cash due 2/23/2021 (8) 6.82%     
 3
        17,796,463
 17,834,418
 Digital River, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+6.5% (1% floor) cash due 2/12/2021 (8)(13)(16) 8.08%   2,897,412
 2,876,032
 2,904,655
        2,876,032
 2,904,655
See notes to Consolidated Financial Statements.
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Ball Metalpack Finco, LLC Metal & Glass Containers       
First Lien Term Loan, LIBOR+4.50% cash due 7/31/20256.11% $8,842,500
 $8,808,529
 $6,817,568
 (6)(15)
     8,808,529
 6,817,568
  
Blackhawk Network Holdings, Inc. Data Processing & Outsourced Services       
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20267.81% 4,375,000
 4,338,524
 3,602,091
 (6)
     4,338,524
 3,602,091
  
Boxer Parent Company Inc. Systems Software       
First Lien Term Loan, LIBOR+4.25% cash due 10/2/20255.24% 6,087,938
 6,022,006
 5,119,194
 (6)
     6,022,006
 5,119,194
  
Cadence Aerospace, LLC Aerospace & Defense       
First Lien Term Loan, LIBOR+6.50% cash due 11/14/20238.28% 13,445,357
 13,346,089
 12,734,300
 (6)(15)
     13,346,089
 12,734,300
  
Canyon Buyer, Inc. Application Software       
First Lien Term Loan, LIBOR+4.25% cash due 2/15/20255.71% 5,901,878
 5,843,400
 5,311,690
 (6)
     5,843,400
 5,311,690
  
Chief Power Finance II, LLC Independent Power Producers & Energy Traders       
First Lien Term Loan, LIBOR+6.50% cash due 12/31/20227.95% 3,412,500
 3,338,405
 3,218,670
 (6)(15)
     3,338,405
 3,218,670
  
CircusTrix Holdings LLC Leisure Facilities       
First Lien Term Loan, LIBOR+5.50% PIK due 12/16/2021
 8,102,447
 8,066,611
 7,280,859
 (6)(15)(17)
First Lien Delayed Draw Term Loan, LIBOR+5.50% PIK due 12/16/2021
 975,636
 960,193
 795,329
 (6)(14)(15)(17)
     9,026,804
 8,076,188
  
CITGO Petroleum Corp. Oil & Gas Refining & Marketing       
First Lien Term Loan, LIBOR+4.50% cash due 7/29/20215.50% 5,906,250
 5,895,021
 5,551,875
 (6)
First Lien Term Loan, LIBOR+5.00% cash due 3/28/20246.00% 5,940,000
 5,880,600
 5,256,900
 (6)
     11,775,621
 10,808,775
  
Commscope, Inc. Communications Equipment       
First Lien Term Loan, LIBOR+3.25% cash due 4/6/20264.24% 2,941,609
 2,792,194
 2,794,529
 (6)(9)
     2,792,194
 2,794,529
  
Connect U.S. Finco LLC Alternative Carriers       
First Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.49% 10,572,000
 10,299,289
 8,523,675
 (6)(9)
     10,299,289
 8,523,675
  
Continental Intermodal Group LP Oil & Gas Storage & Transportation       
First Lien Term Loan, LIBOR+8.50% PIK due 1/28/2025
 13,059,121
 13,059,121
 12,210,278
 (6)(15)(17)
     13,059,121
 12,210,278
  
Coyote Buyer, LLC Specialty Chemicals       
First Lien Term Loan, LIBOR+6.00% cash due 2/6/20267.74% 5,477,733
 5,422,956
 5,422,956
 (6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/20257.74% 94,207
 84,786
 84,786
 (6)(14)(15)
     5,507,742
 5,507,742
  
CPI Holdco, LLC Health Care Supplies       
First Lien Term Loan, LIBOR+4.25% cash due 11/4/20265.70% 5,924,000
 5,899,000
 5,213,120
 (6)
     5,899,000
 5,213,120
  
CTOS, LLC Trading Companies & Distributors       
First Lien Term Loan, LIBOR+4.25% cash due 4/18/20255.00% 8,775,123
 8,882,968
 7,568,544
 (6)
     8,882,968
 7,568,544
  
Curium Bidco S.à.r.l. Biotechnology       
First Lien Term Loan, LIBOR+4.00% cash due 7/9/20265.07% 3,980,000
 3,950,150
 3,781,000
 (6)(9)
     3,950,150
 3,781,000
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)



Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Staples, Inc.    Distributors      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 9/12/2024 (8)(16) 5.49%   $8,623,000
 $8,602,200
 $8,471,020
        8,602,200
 8,471,020
 Aptos, Inc.   Data processing & outsourced services      
 First Lien Term Loan, LIBOR+6.75% (1% floor) cash due 9/1/2022 (8)(13) 8.44%   5,902,500
 5,807,585
 5,843,475
        5,807,585
 5,843,475
 Zep Inc.    Housewares & specialties      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 8/12/2024 (8)(16) 5.38%   4,738,125
 4,781,391
 4,783,540
        4,781,391
 4,783,540
 All Web Leads, Inc.   Advertising      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash due 12/29/2020 (8)(13) 8.02%   25,662,846
 25,662,845
 23,301,864
        25,662,845
 23,301,864
 Allied Universal Holdco, LLC (f/k/a USAGM Holdco, LLC)    Security & alarm services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 7/28/2022 (8)(16) 5.44%   7,959,494
 7,995,399
 7,908,513
        7,995,399
 7,908,513
 Internet Pipeline, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+7.25% (1% floor) cash due 8/4/2022 (8)(13) 8.82%   13,081,433
 13,068,600
 13,225,798
 First Lien Revolver, LIBOR+7.25% (1% floor) cash due 8/4/2021 (8) 8.82%     
 8,000
        13,068,600
 13,233,798
 Valet Merger Sub, Inc.   Environmental & facilities services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 9/24/2021 (8)(13) 8.57%   5,865,000
 5,838,310
 5,864,905
 First Lien Revolver, LIBOR+7% (1% floor) cash due 9/24/2021 (8)(11) 8.57%   
 (10,697) (13)
 Incremental Term Loan , LIBOR+7% (1% floor) cash due 9/24/2021 (8) 8.57%   8,386,611
 8,312,611
 8,386,476
        14,140,224
 14,251,368
 DigiCert, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+4.75% (1% floor) cash due 10/21/2021 (8)(16) 6.13%   11,000,000
 10,945,000
 11,154,660
        10,945,000
 11,154,660
 Lytx, Inc.   Research & consulting services      
 500 Class B Units in Lytx Holdings, LLC       
 227,980
 500 Class A Units in Lytx Holdings, LLC       292,456
 358,382
        292,456
 586,362
 4 Over International, LLC   Commercial printing      
 First Lien Term Loan, LIBOR+6.0% (1% floor) cash due 6/7/2022 (8)(13) 7.57%   5,850,412
 5,775,859
 5,850,412
 First Lien Revolver, LIBOR+6.0% (1% floor) cash due 6/7/2021 (8)(11) 7.57%     (502) 
        5,775,357
 5,850,412

See notes to Consolidated Financial Statements.
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Cypress Intermediate Holdings III, Inc. Application Software       
First Lien Term Loan, LIBOR+2.75% cash due 4/29/20243.75% $985,467
 $862,283
 $910,497
 (6)
     862,283
 910,497
  
Dcert Buyer, Inc. Internet Services & Infrastructure       
First Lien Term Loan, LIBOR+4.00% cash due 10/16/20264.99% 9,000,000
 8,977,500
 8,092,530
 (6)
     8,977,500
 8,092,530
  
Dealer Tire, LLC Distributors       
First Lien Term Loan, LIBOR+4.25% cash due 12/12/20255.24% 8,779,995
 8,702,030
 7,302,014
 (6)
     8,702,030
 7,302,014
  
The Dun & Bradstreet Corporation Research & Consulting Services       
First Lien Term Loan, LIBOR+4.00% cash due 2/6/20264.96% 5,000,000
 4,915,567
 4,543,750
 (6)
     4,915,567
 4,543,750
  
Ellie Mae, Inc. Application Software       
First Lien Term Loan, LIBOR+3.75% cash due 4/17/20265.20% 7,462,500
 7,422,700
 6,557,672
 (6)
     7,422,700
 6,557,672
  
EnergySolutions LLC Environmental & Facilities Services       
First Lien Term Loan, LIBOR+3.75% cash due 5/9/20255.20% 3,930,000
 3,915,557
 3,458,400
 (6)
     3,915,557
 3,458,400
  
eResearch Technology, Inc. Application Software       
First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.95% 4,000,000
 3,960,000
 3,548,000
 (6)
     3,960,000
 3,548,000
  
Firstlight Holdco, Inc. Alternative Carriers       
First Lien Term Loan, LIBOR+3.50% cash due 7/23/20254.49% 7,120,482
 7,093,077
 5,862,542
 (6)
     7,093,077
 5,862,542
  
GFL Environmental Inc. Environmental & Facilities Services       
First Lien Term Loan, LIBOR+3.00% cash due 5/30/20254.00% 1,118,000
 1,031,676
 1,089,586
 (6)(9)
     1,031,676
 1,089,586
  
GI Chill Acquisition LLC Managed Health Care       
First Lien Term Loan, LIBOR+4.00% cash due 8/6/20255.45% 2,984,848
 2,962,462
 2,581,894
 (6)(15)
     2,962,462
 2,581,894
  
GKD Index Partners, LLC Specialized Finance       
First Lien Term Loan, LIBOR+7.00% cash due 6/29/20238.45% 8,377,426
 8,323,106
 8,226,633
 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 6/29/20238.12% 355,556
 351,432
 347,111
 (6)(14)(15)
     8,674,538
 8,573,744
  
Global Medical Response Health Care Services       
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20255.86% 2,476,005
 2,430,073
 2,234,595
 (6)
     2,430,073
 2,234,595
  
Guidehouse LLP Research & Consulting Services       
First Lien Term Loan, LIBOR+4.50% cash due 5/1/20255.49% 2,487,342
 2,463,570
 2,039,620
 (6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.99% 5,000,000
 4,980,867
 4,325,000
 (6)(15)
     7,444,437
 6,364,620
  
Helios Software Holdings, Inc. Systems Software       
First Lien Term Loan, LIBOR+4.25% cash due 10/24/20255.32% 3,990,000
 3,950,100
 3,438,043
 (6)
     3,950,100
 3,438,043
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)



Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Ancile Solutions, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 6/30/2021 (8)(13) 8.69%   $9,754,628
 $9,551,186
 $9,666,837
        9,551,186
 9,666,837
 Curvature, Inc.    IT consulting & other services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 10/30/2023 (8)(13)(16) 6.57%   9,900,000
 9,848,644
 8,514,000
        9,848,644
 8,514,000
 Ministry Brands, LLC   Internet software & services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (8)(13) 6.38%   9,648,871
 9,569,908
 9,734,153
 First Lien Delayed Draw Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (8)(13) 6.38%   4,185,178
 4,142,520
 4,230,369
 Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (8)(13) 10.63%   1,568,067
 1,548,483
 1,575,472
 Second Lien Delayed Draw Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (8) 10.63%   431,933
 426,538
 433,973
 First Lien Revolver, LIBOR+5% (1% floor) cash due 12/2/2022 (8) 6.57%   100,000
 99,139
 100,884
        15,786,588
 16,074,851
 Impact Sales, LLC   Advertising      
 First Lien Term Loan B, LIBOR+7% (1% floor) cash due 12/30/2021 (8) 8.33%   3,712,500
 3,625,400
 3,701,363
 First Lien Delayed Draw Term Loan, LIBOR+7% (1% floor) cash due 12/30/2021 (8) 8.33%   170,586
 170,586
 166,839
        3,795,986
 3,868,202
 Empower Payments Acquisition, Inc.    Commercial printing      
 First Lien Term Loan B, LIBOR+5.5% (1% floor) cash due 11/30/2023 (8)(13) 7.19%   6,138,000
 6,033,112
 6,138,000
        6,033,112
 6,138,000
 First American Payment Systems, L.P.    Diversified support services      
 First Lien Term Loan B, LIBOR+5.75% (1% floor) cash due 1/8/2024 (8)(13)(16) 7.14%   4,106,250
 4,071,204
 4,131,914
        4,071,204
 4,131,914
 DFT Intermediate LLC    Specialized finance      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash due 3/1/2023 (8)(13) 6.85%   14,887,500
 14,567,332
 14,779,383
 First Lien Revolver, LIBOR+5.5% (1% floor) cash due 3/1/2022 (8) 7.07%   750,000
 733,438
 744,553
        15,300,770
 15,523,936
 Onvoy, LLC    Integrated telecommunication services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 2/10/2024 (8)(13) 6.19%   7,940,000
 7,905,112
 6,828,400
        7,905,112
 6,828,400
 Salient CRGT, Inc.    IT consulting & other services      
 First Lien Term Loan, LIBOR+5.75% (1% floor) cash due 2/28/2022 (8)(13)(16) 7.32%   6,254,315
 6,150,338
 6,309,041
        6,150,338
 6,309,041
 MHE Intermediate Holdings, LLC    Diversified support services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 3/11/2024 (8)(13) 6.69%   11,745,186
 11,535,652
 11,745,187
 First Lien Revolver, LIBOR+5% (1% floor) cash due 3/10/2023 (8) 6.67%   1,353,038
 1,255,454
 1,353,038
 Delayed Draw Term Loan, LIBOR+5% (1% floor) cash due 3/11/2024 (8) 6.69%   1,868,736
 1,792,617
 1,868,736
        14,583,723
 14,966,961

See notes to Consolidated Financial Statements.

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
HNC Holdings, Inc. Building Products       
First Lien Term Loan, LIBOR+4.00% cash due 10/5/20235.00% $445,449
 $424,290
 $403,131
 (6)
     424,290
 403,131
  
iCIMs, Inc. Application Software       
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20247.50% 5,572,549
 5,488,059
 5,341,288
 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024  
 (5,567) (12,206) (6)(14)(15)
     5,482,492
 5,329,082
  
Intelsat Jackson Holdings S.A. Alternative Carriers       
First Lien Term Loan, LIBOR+3.75% cash due 11/27/20235.68% 3,399,747
 3,290,811
 3,151,141
 (6)(9)
First Lien Term Loan, LIBOR+4.50% cash due 1/2/20246.43% 319,000
 288,695
 297,308
 (6)(9)
     3,579,506
 3,448,449
  
Intrawest Resorts Holdings, Inc. Leisure Facilities       
First Lien Term Loan, LIBOR+2.75% cash due 7/31/20243.74% 394,990
 337,716
 361,416
 (6)
     337,716
 361,416
  
KIK Custom Products Inc. Household Products       
First Lien Term Loan, LIBOR+4.00% cash due 5/15/20235.00% 5,000,000
 5,022,188
 4,522,925
 (6)(9)
     5,022,188
 4,522,925
  
Lannett Company, Inc. Pharmaceuticals       
First Lien Term Loan, LIBOR+5.38% cash due 11/25/20226.38% 7,031,897
 7,042,185
 6,258,388
 (6)(9)
     7,042,185
 6,258,388
  
Lightbox Intermediate, L.P. Real Estate Services       
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20265.80% 9,925,000
 9,794,418
 8,684,375
 (6)(15)
     9,794,418
 8,684,375
  
McAfee, LLC Systems Software       
First Lien Term Loan, LIBOR+3.75% cash due 9/30/20244.69% 6,745,069
 6,637,857
 6,374,090
 (6)
     6,637,857
 6,374,090
  
MHE Intermediate Holdings, LLC Diversified Support Services       
First Lien Term Loan, LIBOR+5.00% cash due 3/8/20246.07% 11,478,923
 11,347,798
 11,169,038
 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 3/10/20236.00% 5,123,153
 4,894,206
 4,981,302
 (6)(14)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/20246.45% 2,337,483
 2,364,118
 2,274,381
 (6)(15)
     18,606,122
 18,424,721
  
Mindbody, Inc. Internet Services & Infrastructure       
First Lien Term Loan, LIBOR+7.00% cash due 2/14/20258.00% 9,047,619
 8,900,611
 8,369,048
 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 2/14/20258.07% 952,381
 936,906
 880,952
 (6)(15)
     9,837,517
 9,250,000
  
Ministry Brands, LLC Application Software       
First Lien Revolver, LIBOR+5.00% cash due 12/2/20226.45% 57,500
 56,639
 56,758
 (6)(14)(15)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/202310.51% 1,568,067
 1,556,611
 1,556,438
 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/202310.51% 431,933
 425,935
 428,730
 (6)(15)
     2,039,185
 2,041,926
  
MRI Software LLC Application Software       
First Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.57% 5,316,241
 5,265,427
 4,731,878
 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026  
 (5,835) (111,564) (6)(14)(15)
First Lien Revolver, LIBOR+5.50% cash due 2/10/20266.57% 264,127
 258,844
 203,378
 (6)(14)(15)
     5,518,436
 4,823,692
  
OEConnection LLC Application Software       
First Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.45% 7,725,249
 7,686,623
 6,238,139
 (6)
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026  
 (3,542) (141,667) (6)(14)
     7,683,081
 6,096,472
  
          
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)





Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Paris Presents Incorporated    Personal Products      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 12/31/2020 (8)(13) 6.57%   $3,126,008
 $3,101,186
 $3,126,009
 Second Lien Term Loan, LIBOR+8.75% (1% floor) cash due 12/31/2021 (8)(13) 10.32%   3,500,000
 3,441,311
 3,482,500
        6,542,497
 6,608,509
 PSI Services LLC    Human Resource & Employment Services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 1/20/2023 (8)(13) 6.33%   6,736,979
 6,649,112
 6,676,347
        6,649,112
 6,676,347
 MHVC Acquisition Corp.    Aerospace & Defense      
 First Lien Term Loan B, LIBOR+5.25% (1% floor) cash due 4/25/2024 (8)(13)(16) 6.95%   6,467,500
 6,438,297
 6,548,376
        6,438,297
 6,548,376
 Imagine! Print Solutions, LLC    Advertising      
 First Lien Term Loan B, LIBOR+4.75% (1% floor) cash due 6/21/2022 (8)(16) 6.45%   4,952,525
 4,908,085
 4,853,475
        4,908,085
 4,853,475
 Veritas US Inc.    Internet software & services      
 First Lien Term Loan B, LIBOR+4.5% (1% floor) cash due 1/27/2023 (8)(16) 6.19%   13,041,836
 13,181,069
 13,089,438
        13,181,069
 13,089,438
 UOS, LLC   Trucking      
 First Lien Term Loan B, LIBOR+5.5% (1% floor) cash due 4/18/2023 (8)(16) 7.07%   7,969,975
 8,152,865
 8,159,262
        8,152,865
 8,159,262
 Accudyne Industries, LLC    Oil & gas equipment & services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 8/18/2024 (8)(16) 5.14%   13,965,000
 14,019,903
 14,085,029
        14,019,903
 14,085,029
 Truck Hero, Inc.    Auto parts & equipment      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 4/22/2024 (8)(16) 5.64%   5,842,640
 5,856,506
 5,850,878
        5,856,506
 5,850,878
 Alphabet Holding Company, Inc.    Healthcare distributors      
 First Lien Term Loan, LIBOR+3.5% (1% floor) cash due 9/26/2024 (8)(16) 5.07%   4,987,500
 4,963,329
 4,837,875
        4,963,329
 4,837,875
 McAfee, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2024 (8)(16) 6.07%   6,982,500
 6,914,978
 6,970,036
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 9/29/2025 (8)(16) 10.07%   2,000,000
 2,012,500
 2,010,010
        8,927,478
 8,980,046
 99 Cents Only Stores    General merchandise stores      
 First Lien Term Loan, LIBOR+5.0% (1% floor) cash 1.5% PIK due 01/13/2022 (8)(16) 6.48%   1,998,263
 1,820,550
 1,945,809
        1,820,550
 1,945,809

See notes to Consolidated Financial Statements.


Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Olaplex, Inc. Personal Products       
First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50% $9,000,000
 $8,826,898
 $8,415,000
 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 1/8/20257.50% 972,000
 953,454
 908,820
 (6)(15)
     9,780,352
 9,323,820
  
Onvoy, LLC Integrated Telecommunication Services       
First Lien Term Loan, LIBOR+4.50% cash due 2/10/20245.50% 3,840,808
 3,830,168
 3,043,840
 (6)
     3,830,168
 3,043,840
  
PaySimple, Inc. Data Processing & Outsourced Services       
First Lien Term Loan, LIBOR+5.50% cash due 8/23/20256.46% 7,512,250
 7,376,353
 6,836,148
 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/23/20256.48% 1,651,259
 1,604,479
 1,430,919
 (6)(14)(15)
     8,980,832
 8,267,067
  
Peraton Corp. Aerospace & Defense       
First Lien Term Loan, LIBOR+5.25% cash due 4/29/20246.87% 6,321,250
 6,302,913
 5,910,369
 (6)
     6,302,913
 5,910,369
  
Petsmart, Inc. Specialty Stores       
First Lien Term Loan, LIBOR+4.00% cash due 3/11/20225.00% 677,000
 609,300
 651,024
 (6)
     609,300
 651,024
  
Prairie ECI Acquiror LP Oil & Gas Storage & Transportation       
First Lien Term Loan, LIBOR+4.75% cash due 3/11/20266.49% 7,500,000
 7,425,000
 3,937,500
 (6)(15)
     7,425,000
 3,937,500
  
ProFrac Services, LLC Industrial Machinery       
First Lien Term Loan, LIBOR+6.25% cash due 9/15/20238.14% 8,838,889
 8,777,633
 7,734,028
 (6)(15)
     8,777,633
 7,734,028
  
Project Boost Purchaser, LLC Application Software       
First Lien Term Loan, LIBOR+3.50% cash due 6/1/20264.49% 2,786,000
 2,758,140
 2,349,517
 (6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/20278.99% 1,500,000
 1,500,000
 1,162,500
 (6)(15)
     4,258,140
 3,512,017
  
Quikrete Holdings, Inc. Construction Materials       
First Lien Term Loan, LIBOR+2.50% cash due 2/1/20273.49% 3,555,090
 3,284,014
 3,288,458
 (6)
     3,284,014
 3,288,458
  
Recorded Books Inc. Publishing       
First Lien Term Loan, LIBOR+4.25% cash due 8/29/20254.95% 12,337,437
 12,229,024
 10,918,631
 (6)
     12,229,024
 10,918,631
  
RevSpring, Inc. Commercial Printing       
First Lien Term Loan, LIBOR+4.00% cash due 10/11/20255.45% 9,875,000
 9,855,299
 8,566,563
 (6)(15)
     9,855,299
 8,566,563
  
Sabert Corporation Metal & Glass Containers       
First Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50% 2,900,000
 2,871,000
 2,697,000
 (6)
     2,871,000
 2,697,000
  
Salient CRGT, Inc. Aerospace & Defense       
First Lien Term Loan, LIBOR+6.50% cash due 2/28/20227.57% 5,650,744
 5,607,870
 4,661,863
 (6)(15)
     5,607,870
 4,661,863
  
Signify Health, LLC Health Care Services       
First Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.95% 10,780,000
 10,705,507
 9,055,200
 (6)
     10,705,507
 9,055,200
  
Sirva Worldwide, Inc. Diversified Support Services       
First Lien Term Loan, LIBOR+5.50% cash due 8/4/20256.49% 7,750,000
 7,633,750
 5,812,500
 (6)
     7,633,750
 5,812,500
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)



Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Windstream Services LLC (7)    Integrated telecommunication services      
 First Lien Term Loan B6, LIBOR+4.0% (0.75% floor) cash due 03/29/2021 (8)(13)(16) 5.50%   $7,460,376
 $7,116,628
 $7,029,875
        7,116,628
 7,029,875
 Vine Oil & Gas LP    Oil & gas exploration & production      
 First Lien Term Loan B, LIBOR+6.875% (1% floor) cash due 11/25/2021 (8)(13)(16) 8.44%   10,000,000
 9,913,159
 9,925,000
        9,913,159
 9,925,000
 Uniti Group LP (7)    Specialized REITs      
 First Lien Term Loan B, LIBOR+3.0% (1% floor) cash due 10/24/2022 (8)(13)(16) 4.57%   4,987,406
 4,841,845
 4,830,003
        4,841,845
 4,830,003
 Cadence Aerospace LLC (7)    Aerospace & defense      
 First Lien Term Loan, LIBOR+6.5% cash due 10/27/2023 (8) 7.37%   9,088,235
 8,999,320
 8,997,353
        8,999,320
 8,997,353
 Avantor Inc.    Commodity chemicals      
 First Lien Term Loan, LIBOR+4.0% (1% floor) cash due 11/21/2024 (8)(13)(16) 5.51%   10,000,000
 9,991,297
 10,059,400
        9,991,297
 10,059,400
 CenturyLink, Inc. (7)    Alternative carriers      
 First Lien Term Loan B, LIBOR+2.75% cash due 1/31/2025 (8)(13)(16) 4.32%   5,000,000
 4,806,250
 4,831,250
        4,806,250
 4,831,250
 Intelsat Jackson Holding (7)    Alternative carriers      
 First Lien Term Loan B3, LIBOR+3.75% (1% floor) cash due 11/27/2023 (8)(16) 5.13%   5,000,000
 4,937,500
 4,906,250
        4,937,500
 4,906,250
 Michaels Stores, Inc. (7)    Specialty stores      
 First Lien Term Loan B1, LIBOR+2.75% (1% floor) cash due 1/30/2023 (8)(13)(16) 4.21%   3,000,000
 2,977,500
 3,004,020
        2,977,500
 3,004,020
 Rite Aid Corporation (7)    Drug retail      
 Second Lien Term Loan 1, LIBOR+4.75% (1% floor) cash due 8/21/2020 (8)(13)(16) 6.24%   2,000,000
 2,017,500
 2,010,840
 Second Lien Term Loan 2, LIBOR+3.88% (1% floor) cash due 6/21/2021 (8)(13)(16) 5.37%   2,000,000
 2,012,500
 2,007,500
        4,030,000
 4,018,340
 Avaya Inc. (7)    Communications equipment      
 First Lien Term Loan B, LIBOR+4.75% (1% floor) cash due 11/09/2024 (8)(13)(16) 6.23%   15,000,000
 14,812,970
 14,789,100
        14,812,970
 14,789,100
 Asset International, Inc.    Research & consulting services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 12/29/2024 (8)(13) 6.19%   14,000,000
 13,720,438
 13,720,000
 First Lien Revolver, LIBOR+4.5% (1% floor) cash due 12/29/2022 (8) 6.19%   625,000
 562,637
 562,500
        14,283,075
 14,282,500
 KIK Custom Products Inc. (7)    Household products      
 First Lien Term Loan B, LIBOR+4.5% (1% floor) cash due 8/26/2022 (8)(13)(16) 6.17%   5,000,000
 5,037,500
 5,040,000
        5,037,500
 5,040,000


See notes to Consolidated Financial Statements.
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Sophia, L.P. Systems Software       
First Lien Term Loan, LIBOR+3.25% cash due 9/30/20224.70% $1,333,213
 $1,331,159
 $1,279,885
 (6)
     1,331,159
 1,279,885
  
Star US Bidco LLC Industrial Machinery       
First Lien Term Loan, LIBOR+4.25% cash due 3/17/20275.94% 4,632,000
 4,585,680
 4,029,840
 (6)
     4,585,680
 4,029,840
  
Sunshine Luxembourg VII SARL Personal Products       
First Lien Term Loan, LIBOR+4.25% cash due 10/1/20265.32% 5,052,338
 4,857,139
 4,597,627
 (6)(9)
     4,857,139
 4,597,627
  
Supermoose Borrower, LLC Application Software       
First Lien Term Loan, LIBOR+3.75% cash due 8/29/20255.20% 1,490,634
 1,400,749
 1,201,451
 (6)
     1,400,749
 1,201,451
  
Thunder Finco (US), LLC Movies & Entertainment       
First Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.24% 6,000,000
 5,940,000
 4,695,000
 (6)(9)(15)
     5,940,000
 4,695,000
  
TIBCO Software Inc. Application Software       
First Lien Term Loan, LIBOR+3.75% cash due 6/30/20264.74% 7,949,846
 7,939,036
 7,552,354
 (6)
     7,939,036
 7,552,354
  
Trident Topco LLC Health Care Services       
58.99 Class A Warrants (exercise price $156.164) expiration date 3/20/2021    
 
 (15)
     
 
  
Truck Hero, Inc. Auto Parts & Equipment       
First Lien Term Loan, LIBOR+3.75% cash due 4/22/20244.74% 5,710,520
 5,719,294
 4,402,811
 (6)
     5,719,294
 4,402,811
  
Turbocombustor Technology, Inc. Aerospace & Defense       
First Lien Term Loan, LIBOR+4.50% cash due 12/2/20205.50% 808,380
 738,358
 711,375
 (6)
     738,358
 711,375
  
Uber Technologies, Inc. Application Software       
First Lien Term Loan, LIBOR+4.00% cash due 4/4/20255.00% 3,294,272
 3,227,491
 3,099,349
 (6)(9)
     3,227,491
 3,099,349
  
UFC Holdings, LLC Movies & Entertainment       
First Lien Term Loan, LIBOR+3.25% cash due 4/29/20264.25% 5,489,095
 5,418,314
 4,892,156
 (6)
     5,418,314
 4,892,156
  
Veritas US Inc. Application Software       
First Lien Term Loan, LIBOR+4.50% cash due 1/27/20235.95% 12,002,351
 12,073,989
 10,397,037
 (6)
     12,073,989
 10,397,037
  
Verscend Holding Corp. Health Care Technology       
First Lien Term Loan, LIBOR+4.50% cash due 8/27/20255.49% 11,891,244
 11,790,195
 11,296,682
 (6)
     11,790,195
 11,296,682
  
WeddingWire, Inc. Interactive Media & Services       
First Lien Term Loan, LIBOR+4.50% cash due 12/19/20255.95% 7,900,000
 7,867,414
 6,912,500
 (6)
     7,867,414
 6,912,500
  
Windstream Services, LLC Integrated Telecommunication Services       
First Lien Term Loan, PRIME+4.00% cash due 3/29/20217.25% 2,775,040
 2,730,474
 1,956,403
 (6)(9)(15)
     2,730,474
 1,956,403
  
WP CPP Holdings, LLC Aerospace & Defense       
First Lien Term Loan, LIBOR+3.75% cash due 4/30/20255.53% 4,433,482
 4,425,066
 3,380,530
 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/20269.53% 1,000,000
 992,094
 686,670
 (6)(15)
     5,417,160
 4,067,200
  
          
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
DecemberMarch 31, 20172020
(unaudited)



Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Indivior Finance Sarl (7)    Pharmaceuticals      
 First Lien Term Loan B, LIBOR+4.5% (1% floor) cash due 12/19/2022 (8)(13)(16) 6.11%   $8,500,000
 $8,457,500
 $8,542,500
        8,457,500
 8,542,500
 SUPERVALU Inc. (7)    Food retail      
 First Lien Term Loan B, LIBOR+3.5% (1% floor) cash due 6/08/2024 (8)(16) 5.07%   4,000,000
 3,920,000
 3,920,000
        3,920,000
 3,920,000
 Tribe Buyer LLC    Human resource & employment services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 2/16/2024 (8)(13)(16) 5.68%   3,000,000
 2,992,500
 3,039,375
        2,992,500
 3,039,375
 Chloe Ox Parent LLC    Health care services      
 First Lien Term Loan B, LIBOR+5.0% (1% floor) cash due 12/14/2024 (8)(13)(16) 6.64%   13,000,000
 12,870,000
 13,048,750
        12,870,000
 13,048,750
 Total Non-Control/Non-Affiliate Investments (166.7% of net assets)       495,206,582
 483,217,174
 Total Portfolio Investments (186.7% of net assets)       584,320,098
 541,408,333
Cash and Cash Equivalents          
Wells Fargo Bank Institutional Money Market Fund
       34,173,201
 34,173,201
Other cash accounts       5,802,299
 5,802,299
 Total Cash and Cash Equivalents (13.8% of net assets)       39,975,500
 39,975,500
Total Portfolio Investments, Cash and Cash Equivalents (200.5% of net assets)       $624,295,598
 $581,383,833

See notes to Consolidated Financial Statements.
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Zep Inc. Specialty Chemicals       
First Lien Term Loan, LIBOR+4.00% cash due 8/12/20245.07% $4,631,250
 $4,659,270
 $3,126,094
 (6)
     4,659,270
 3,126,094
  
Zephyr Bidco Limited Specialized Finance       
First Lien Term Loan, UK LIBOR+4.50% cash due 7/23/20254.74% £3,000,000
 4,000,497
 3,115,374
 (6)(9)
     4,000,497
 3,115,374
  
 Total Non-Control/Non-Affiliate Investments (230.3% of net assets)    $546,774,334
 $486,545,381
  
 Total Portfolio Investments (248.2% of net assets)    $619,931,637
 $524,379,311
  
Cash and Cash Equivalents and Restricted Cash         
JP Morgan Prime Money Market Fund, Institutional Shares    $2,122,887
 $2,122,887
  
Other cash accounts    29,129,954
 29,129,954
  
Cash and Cash Equivalents and Restricted Cash (14.8% of net assets)    $31,252,841
 $31,252,841
  
Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (263.0% of net assets)    $651,184,478
 $555,632,152
  

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 2017
(unaudited)




Derivatives Instrument Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Counterparty Cumulative Unrealized Appreciation (Depreciation)
Foreign currency forward contract $3,400,626
 £2,482,500
 8/18/2020 JPMorgan Chase Bank, N.A. $316,967
(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 byInterest 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 Investment Company Act of 1940, as amended ("1940 Act"), as investmentsoriginal credit agreements or permanent in companies in which the Company owns more than 25% of the voting securitiesnature per loan amendment or maintains greater than 50% of the board representation.waiver documents.
(4)Affiliate Investments generally are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25%Each of the voting securities.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)Principal includes accumulated paymentEquity ownership may be held in kind ("PIK") interest and is netshares or units of repayments, if any.companies related to the portfolio companies.
(6)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(7)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 75.6% of the Company's total assets and non-qualifying assets represented 24.4% of the Company's total assets.
(8)The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of March 31, 2020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.99%, the 60-day LIBOR at 1.26%, the 90-day LIBOR at 1.45%, the 180-day LIBOR at 1.07%, the PRIME at 3.25% and the 30-day UK LIBOR at 0.24%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(7)Principal includes accumulated payment in kind ("PIK") interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. 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)Interest ratesInvestment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may be adjusted from period to period on certain term loansnot 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 March 31, 2020, qualifying assets represented 83.2% of the Company's total assets and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations innon-qualifying assets represented 16.8% of the original credit agreements or permanent in nature per loan amendment or waiver documents.Company's total assets.
(10)Each of the Company's investments is pledged as collateral under one or more of its credit facilities or its debt securitization. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(11)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.
(12)As defined in the 1940Investment Company 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 threesix months ended DecemberMarch 31, 20172020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(13)
Investment pledged as collateral under the Company's 2015 Debt Securitization (as defined in Note 6 -Borrowings), in whole or in part.
(14)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(15)(11)See Note 3 to the Consolidated Financial Statements for portfolio composition.
(16)(12)
As of December 31, 2017, these investments are categorized as Level 2 within the fair value hierarchy established by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("ASC 820"). All other investments, with the exception of investments valued using net asset value as a practical expedient, are categorized as Level 3 as of December 31, 2017 and were valued using significant unobservable inputs.
(17)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.
(18)This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASBFinancial Accounting Standards Board ("FASB") guidance under Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosure ("ASC 820,820"), these investments are excluded from the hierarchical levels.
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
March 31, 2020
(unaudited)



(13)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments. 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.
(14)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.
(15)As of March 31, 2020, these investments are categorized as Level 3 within the fair value hierarchy established by ASC 820.
(16)This investment was placed on cash non-accrual status as of March 31, 2020. Cash non-accrual is inclusive of PIK and other non-cash income, where applicable.
(17)During the quarter ended March 31, 2020, this portfolio company modified its scheduled interest payment to PIK.


See notes to Consolidated Financial Statements.
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 20172019

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
Control Investments (3)          
 FSFR Glick JV LLC (7)(12)(15)   Multi-sector holdings      
 Subordinated Note, LIBOR+8% cash due 10/20/2021 (8) 9.23%   $64,228,881
 $64,228,881
 $57,606,674
 87.5% equity interest (17)       7,111,751
 
        71,340,632
 57,606,674
 Total Control Investments (19.6% of net assets)       $71,340,632
 $57,606,674
Affiliate Investments (4)          
 Ameritox Ltd.   Healthcare services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 (8)(13)(18) 6.33%   8,071,313
 $7,906,087
 $935,913
 3,309,873.6 Class A Preferred Units in Ameritox Holdings II, LLC       3,309,874
 
 327,393.6 Class B Preferred Units in Ameritox Holdings II, LLC       327,394
 
 1,007.36 Class A Units in Ameritox Holdings II, LLC       5,935,698
 
        17,479,053
 935,913
 Total Affiliate Investments (0.3% of net assets)       $17,479,053
 $935,913
           
Non-Control/Non-Affiliate Investments (6)          
 Triple Point Group Holdings, Inc.   Application software      
 First Lien Revolver, LIBOR+4.25% (1% floor) cash due 7/10/2018 (8)(11) 5.25%     $
 $(437,932)
        
 (437,932)
 New Trident Holdcorp, Inc.   Healthcare services      
 First Lien Term Loan B, LIBOR+5.75% (1.25% floor) cash due 7/31/2019 (8)(13)(16) 7.08%   13,552,077
 13,285,041
 9,757,495
 Second Lien Term Loan, LIBOR+9.5% (1.25% floor) cash due 7/31/2020 (8)(16)(18) 10.83%   1,000,000
 950,590
 50,000
        14,235,631
 9,807,495
 Survey Sampling International, LLC   Research & consulting services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 12/16/2020 (8)(13) 6.27%   5,668,523
 5,642,223
 5,583,495
 Second Lien Term Loan, LIBOR+9% (1% floor) cash due 12/16/2021 (8) 10.27%   1,000,000
 988,095
 990,000
        6,630,318
 6,573,495
 Maxor National Pharmacy Services, LLC   Pharmaceuticals      
 First Lien Term Loan, LIBOR+4.75% (1.25% floor) cash due 1/31/2020 (8)(13) 6.08%   9,068,650
 9,068,650
 9,038,634
        9,068,650
 9,038,634
 NextCare, Inc.   Healthcare services      
 Senior Term Loan, LIBOR+6% (1% floor) cash due 7/31/2018 (8)(13) 7.24%   6,957,971
 6,957,970
 6,667,987
Delayed Draw Term Loan, LIBOR+6% (1% floor) cash due 7/31/2018 (8) 7.24%   1,393,853
 1,393,853
 1,322,900
        8,351,823
 7,990,887
 Aptean, Inc.   Application software      
 First Lien Term Loan, LIBOR+4.25% (1% floor) cash due 12/20/2022 (8)(13) 5.59%   11,243,500
 11,170,440
 11,323,161
 Second Lien Term Loan, LIBOR+9.5% (1% floor) cash due 12/20/2023 (8) 10.84%   200,000
 197,320
 201,750
        11,367,760
 11,524,911
 Stratus Technologies, Inc.   Computer hardware      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 4/28/2021 (8)(13) 6.24%   1,315,119
 1,279,988
 1,324,983
        1,279,988
 1,324,983
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Control Investments        (8)
OCSI Glick JV LLC Multi-sector holdings      (10)(11)
Subordinated Note, LIBOR+6.50% cash due 10/20/20218.89% $66,077,912
 $66,077,913
 $54,326,418
 (6)(9)(14)(15)
87.5% equity interest    7,111,751
 
 (9)(12)(14)
     73,189,664
 54,326,418
  
 Total Control Investments (19.1% of net assets)    $73,189,664
 $54,326,418
  
          
Non-Control/Non-Affiliate Investments        (13)
4 Over International, LLC Commercial printing       
First Lien Term Loan, LIBOR+6.00% cash due 6/7/20228.04% $5,612,060
 $5,547,000
 $5,504,869
 (6)(15)
First Lien Revolver, PRIME+5.00% cash due 6/7/202110.00% 7,823
 7,321
 6,516
 (6)(14)(15)
     5,554,321
 5,511,385
  
99 Cents Only Stores LLC General merchandise stores       
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/20227.10% 1,626,953
 1,549,641
 1,425,618
 (6)
     1,549,641
 1,425,618
  
Access CIG, LLC Diversified support services       
First Lien Term Loan, LIBOR+3.75% cash due 2/27/20256.07% 5,462,360
 5,417,080
 5,404,350
 (6)
     5,417,080
 5,404,350
  
AI Ladder (Luxembourg) Subco S.a.r.l. Electrical components & equipment       
First Lien Term Loan, LIBOR+4.50% cash due 7/9/20256.60% 6,525,584
 6,363,049
 6,009,639
 (6)(9)
     6,363,049
 6,009,639
  
Air Medical Group Holdings, Inc. Healthcare services       
First Lien Term Loan, LIBOR+4.25% cash due 3/14/20256.29% 2,488,670
 2,437,830
 2,337,272
 (6)
     2,437,830
 2,337,272
  
Airxcel, Inc. Household appliances       
First Lien Term Loan, LIBOR+4.50% cash due 4/28/20256.54% 6,912,500
 6,857,242
 6,661,922
 (6)
     6,857,242
 6,661,922
  
AL Midcoast Holdings LLC Oil & gas storage & transportation       
First Lien Term Loan, LIBOR+5.50% cash due 8/1/20257.60% 564,300
 558,657
 556,541
 (6)
     558,657
 556,541
  
Aldevron, L.L.C. Biotechnology       
First Lien Term Loan, LIBOR+4.25% cash due 9/20/20266.36% 4,000,000
 3,960,000
 4,020,000
 (6)
     3,960,000
 4,020,000
  
All Web Leads, Inc. Advertising       
First Lien Term Loan, LIBOR+7.50% cash due 12/29/20209.62% 24,102,647
 24,102,621
 20,960,795
 (6)(15)
     24,102,621
 20,960,795
  
Allen Media, LLC Movies & entertainment       
First Lien Term Loan, LIBOR+6.50% cash due 8/30/20238.60% 4,809,488
 4,714,403
 4,653,180
 (6)(15)
     4,714,403
 4,653,180
  
Ancile Solutions, Inc. Application software       
First Lien Term Loan, LIBOR+7.00% cash due 6/30/20219.10% 8,299,803
 8,184,777
 8,133,807
 (6)(15)
     8,184,777
 8,133,807
  
Apptio, Inc. Application software       
First Lien Term Loan, LIBOR+7.25% cash due 1/10/20259.56% 10,693,944
 10,502,939
 10,496,106
 (6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025  
 (12,179) (12,808) (6)(14)(15)
     10,490,760
 10,483,298
  
See notes to
Oaktree Strategic Income Corporation
Consolidated Financial Statements.Schedule of Investments
September 30, 2019

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Aptos, Inc. Computer & electronics retail       
First Lien Term Loan, LIBOR+5.50% cash due 7/23/20257.70% $10,917,500
 $10,808,325
 $10,781,031
 (6)(15)
     10,808,325
 10,781,031
  
Avaya, Inc. Communications equipment       
First Lien Term Loan, LIBOR+4.25% cash due 12/15/20246.28% 9,825,000
 9,740,555
 9,361,407
 (6)
     9,740,555
 9,361,407
  
Ball Metalpack Finco, LLC Metal & glass containers       
First Lien Term Loan, LIBOR+4.50% cash due 7/31/20256.62% 8,887,500
 8,850,147
 8,387,578
 (6)(15)
     8,850,147
 8,387,578
  
Blackhawk Network Holdings, Inc. Data processing & outsourced services       
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/20269.06% 4,375,000
 4,335,578
 4,380,491
 (6)
     4,335,578
 4,380,491
  
Boxer Parent Company Inc. Systems software       
First Lien Term Loan, LIBOR+4.25% cash due 10/2/20256.29% 6,118,763
 6,051,218
 5,899,007
 (6)
     6,051,218
 5,899,007
  
Cadence Aerospace LLC Aerospace & defense       
First Lien Term Loan, LIBOR+6.50% cash due 11/14/20238.54% 13,514,012
 13,406,773
 13,277,761
 (6)(15)
     13,406,773
 13,277,761
  
Canyon Buyer, Inc. Application software       
First Lien Term Loan, LIBOR+4.25% cash due 2/15/20256.36% 8,931,990
 8,834,396
 8,887,330
 (6)
     8,834,396
 8,887,330
  
Cast & Crew Payroll, LLC Application software       
First Lien Term Loan, LIBOR+4.00% cash due 2/9/20266.05% 4,975,000
 4,925,250
 5,018,531
 (6)
     4,925,250
 5,018,531
  
Cincinnati Bell Inc. Integrated telecommunication services       
First Lien Term Loan, LIBOR+3.25% cash due 10/2/20245.29% 4,893,420
 4,879,432
 4,888,649
 (6)(9)
     4,879,432
 4,888,649
  
CircusTrix Holdings LLC Leisure facilities       
First Lien Term Loan, LIBOR+5.50% cash due 12/16/20217.54% 8,072,229
 8,025,765
 8,014,503
 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/16/20217.54% 971,967
 966,372
 965,016
 (6)(15)
     8,992,137
 8,979,519
  
CITGO Petroleum Corp. Oil & gas refining & marketing       
First Lien Term Loan, LIBOR+4.50% cash due 7/29/20216.60% 5,937,500
 5,921,943
 5,963,505
 (6)
First Lien Term Loan, LIBOR+5.00% cash due 3/28/20247.10% 5,970,000
 5,910,301
 6,007,313
 (6)
     11,832,244
 11,970,818
  
Connect U.S. Finco LLC Alternative carriers       
First Lien Term Loan, LIBOR+4.50% cash due 9/23/20267.10% 10,000,000
 9,800,000
 9,860,150
 (6)(9)
     9,800,000
 9,860,150
  
Curium Bidco S.à r.l. Biotechnology       
First Lien Term Loan, LIBOR+4.00% cash due 7/9/20266.10% 4,000,000
 3,970,000
 4,020,000
 (6)(9)
     3,970,000
 4,020,000
  
Curvature, Inc. IT consulting & other services       
First Lien Term Loan, LIBOR+5.00% cash due 10/30/20237.04% 9,725,000
 9,683,496
 7,974,500
 (6)
     9,683,496
 7,974,500
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2019

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Dcert Buyer, Inc. Internet services & infrastructure       
First Lien Term Loan, LIBOR+4.00% cash due 8/8/20266.26% $9,000,000
 $8,977,500
 $8,983,125
 (6)
     8,977,500
 8,983,125
  
DigiCert, Inc. Internet services & infrastructure       
First Lien Term Loan, LIBOR+4.00% cash due 10/31/20246.04% 10,631,986
 10,611,348
 10,629,753
 (6)
     10,611,348
 10,629,753
  
Ellie Mae, Inc. Application software       
First Lien Term Loan, LIBOR+4.00% cash due 4/17/20266.04% 6,500,000
 6,467,500
 6,518,980
 (6)
     6,467,500
 6,518,980
  
EnergySolutions LLC Environmental & facilities services       
First Lien Term Loan, LIBOR+3.75% cash due 5/9/20255.85% 3,950,000
 3,934,058
 3,703,125
 (6)
     3,934,058
 3,703,125
  
Femur Buyer, Inc. Healthcare equipment       
First Lien Term Loan, LIBOR+4.25% cash due 3/5/20266.38% 8,977,500
 8,887,725
 8,994,333
 (6)
     8,887,725
 8,994,333
  
Firstlight Holdco, Inc. Alternative carriers       
First Lien Term Loan, LIBOR+3.50% cash due 7/23/20255.54% 7,156,627
 7,126,483
 7,098,479
 (6)
     7,126,483
 7,098,479
  
Frontier Communications Corporation Integrated telecommunication services       
First Lien Term Loan, LIBOR+3.75% cash due 6/15/20245.80% 1,488,579
 1,450,620
 1,488,050
 (6)(9)
     1,450,620
 1,488,050
  
Gentiva Health Services, Inc. Healthcare services       
First Lien Term Loan, LIBOR+3.75% cash due 7/2/20255.81% 3,989,924
 3,985,062
 4,017,355
 (6)
     3,985,062
 4,017,355
  
GKD Index Partners, LLC Specialized finance       
First Lien Term Loan, LIBOR+7.25% cash due 6/29/20239.35% 8,616,315
 8,551,811
 8,503,011
 (6)(15)
First Lien Revolver, LIBOR+7.25% cash due 6/29/2023  
 (3,327) (5,844) (6)(14)(15)
     8,548,484
 8,497,167
  
GoodRx, Inc. Interactive media & services       
First Lien Term Loan, LIBOR+2.75% cash due 10/10/20254.81% 3,925,963
 3,917,442
 3,930,871
 (6)
     3,917,442
 3,930,871
  
Guidehouse LLP Research & consulting services       
Second Lien Term Loan, LIBOR+7.50% cash due 5/1/20269.54% 5,000,000
 4,979,290
 4,937,500
 (6)
     4,979,290
 4,937,500
  
iCIMs, Inc. Application software       
First Lien Term Loan, LIBOR+6.50% cash due 9/12/20248.56% 5,572,549
 5,478,546
 5,479,203
 (6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024  
 (4,852) (4,927) (6)(14)(15)
     5,473,694
 5,474,276
  
Indivior Finance S.a.r.l. Pharmaceuticals       
First Lien Term Loan, LIBOR+4.50% cash due 12/19/20226.76% 5,368,935
 5,344,971
 4,943,903
 (6)(9)
     5,344,971
 4,943,903
  
Kellermeyer Bergensons Services, LLC Environmental & facilities services       
Second Lien Term Loan, LIBOR+8.50% cash due 4/29/202210.77% 280,000
 280,000
 272,300
 (6)(15)
     280,000
 272,300
  
KIK Custom Products Inc. Household products       
First Lien Term Loan, LIBOR+4.00% cash due 5/15/20236.26% 5,000,000
 5,025,753
 4,756,250
 (6)(9)
     5,025,753
 4,756,250
  
Lannett Company, Inc. Pharmaceuticals       
First Lien Term Loan, LIBOR+5.38% cash due 11/25/20227.42% 7,269,303
 7,281,949
 7,138,455
 (6)(9)
     7,281,949
 7,138,455
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2019

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Lightbox Intermediate, L.P. Real estate services       
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20267.05% $9,975,000
 $9,832,986
 $9,875,250
 (6)(15)
     9,832,986
 9,875,250
  
Lytx Holdings, LLC Research & consulting services       
500 Class B Units    
 293,339
 (15)
     
 293,339
  
McAfee, LLC Systems software       
First Lien Term Loan, LIBOR+3.75% cash due 9/30/20245.79% 8,138,690
 8,082,911
 8,166,891
 (6)
     8,082,911
 8,166,891
  
McDermott Technology (Americas), Inc. Oil & gas equipment & services       
First Lien Term Loan, LIBOR+5.00% cash due 5/9/20257.10% 642,238
 631,923
 410,497
 (6)(9)
     631,923
 410,497
  
MHE Intermediate Holdings, LLC Diversified support services       
First Lien Term Loan, LIBOR+5.00% cash due 3/8/20247.10% 11,538,092
 11,389,771
 11,307,331
 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 3/10/20237.09% 788,177
 559,231
 683,087
 (6)(14)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/20247.10% 2,349,480
 2,376,251
 2,302,490
 (6)(15)
     14,325,253
 14,292,908
  
Mindbody, Inc. Internet services & infrastructure       
First Lien Term Loan, LIBOR+7.00% cash due 2/14/20259.06% 9,047,619
 8,885,497
 8,875,714
 (6)(15)
First Lien Revolver, LIBOR+7.00% cash due 2/14/2025  
 (17,065) (18,095) (6)(14)(15)
     8,868,432
 8,857,619
  
Ministry Brands, LLC Application software       
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/202311.34% 1,568,067
 1,554,797
 1,568,067
 (6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/202311.34% 431,933
 428,278
 431,933
 (6)(15)
First Lien Revolver, LIBOR+5.00% cash due 12/2/20227.04% 20,000
 19,139
 20,000
 (6)(14)(15)
     2,002,214
 2,020,000
  
New Trident Holdcorp, Inc. Healthcare services       
58.99 Class A Warrants (exercise price $156.164) expiration date 3/20/2021    
 
 (15)
     
 
  
OCI Beaumont LLC Commodity chemicals       
First Lien Term Loan, LIBOR+4.00% cash due 3/13/20256.10% 4,925,000
 4,920,165
 4,931,156
 (6)(9)
     4,920,165
 4,931,156
  
OEConnection LLC Application software       
First Lien Term Loan, LIBOR+4.00% cash due 9/24/20266.13% 7,768,817
 7,729,973
 7,754,251
 (6)
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/24/2026  
 (3,656) (1,371) (6)(14)
     7,726,317
 7,752,880
  
Onvoy, LLC Integrated telecommunication services       
First Lien Term Loan, LIBOR+4.50% cash due 2/10/20246.54% 3,860,606
 3,848,514
 3,238,083
 (6)
     3,848,514
 3,238,083
  
PaySimple, Inc. Data processing & outsourced services       
First Lien Term Loan, LIBOR+5.50% cash due 8/23/20257.55% 7,550,000
 7,400,733
 7,436,750
 (6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/23/2025  
 (48,438) (36,750) (6)(14)(15)
     7,352,295
 7,400,000
  
Peraton Corp. Aerospace & defense       
First Lien Term Loan, LIBOR+5.25% cash due 4/29/20247.30% 6,353,750
 6,333,030
 6,306,097
 (6)
     6,333,030
 6,306,097
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2019

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
ProFrac Services, LLC Industrial machinery       
First Lien Term Loan, LIBOR+6.25% cash due 9/15/20238.66% $9,394,444
 $9,319,898
 $9,206,556
 (6)(15)
     9,319,898
 9,206,556
  
Project Boost Purchaser, LLC Application software       
First Lien Term Loan, LIBOR+3.50% cash due 6/1/20265.54% 2,800,000
 2,772,000
 2,785,650
 (6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/202710.14% 1,500,000
 1,500,000
 1,500,000
 (6)(15)
     4,272,000
 4,285,650
  
PSI Services LLC Human resource & employment services       
First Lien Term Loan, LIBOR+5.00% cash due 1/20/20237.04% 6,601,580
 6,545,627
 6,555,342
 (6)(15)
     6,545,627
 6,555,342
  
Recorded Books Inc. Publishing       
First Lien Term Loan, LIBOR+4.50% cash due 8/29/20256.54% 10,395,000
 10,291,050
 10,421,039
 (6)
     10,291,050
 10,421,039
  
RevSpring, Inc. Commercial printing       
First Lien Term Loan, LIBOR+4.00% cash due 10/11/20256.04% 9,925,000
 9,903,404
 9,866,095
 (6)(15)
     9,903,404
 9,866,095
  
Salient CRGT, Inc. Aerospace & defense       
First Lien Term Loan, LIBOR+6.00% cash due 2/28/20228.05% 5,731,994
 5,676,942
 5,445,395
 (6)(15)
     5,676,942
 5,445,395
  
Signify Health, LLC Healthcare services       
First Lien Term Loan, LIBOR+4.50% cash due 12/23/20246.60% 10,835,000
 10,752,193
 10,821,456
 (6)
     10,752,193
 10,821,456
  
Sirva Worldwide, Inc. Diversified support services       
First Lien Term Loan, LIBOR+5.50% cash due 8/4/20257.54% 7,850,000
 7,732,250
 7,614,500
 (6)
     7,732,250
 7,614,500
  
Sophia, L.P. Systems software       
First Lien Term Loan, LIBOR+3.25% cash due 9/30/20225.35% 1,398,788
 1,396,201
 1,400,830
 (6)
     1,396,201
 1,400,830
  
StandardAero Aviation Holdings Inc. Aerospace & defense       
First Lien Term Loan, LIBOR+4.00% cash due 4/6/20266.10% 2,000,000
 1,997,545
 2,011,870
 (6)
     1,997,545
 2,011,870
  
Sunshine Luxembourg VII SARL Personal products       
First Lien Term Loan, LIBOR+4.25% cash due 9/25/20266.59% 3,000,000
 2,985,000
 3,017,820
 (6)(9)
     2,985,000
 3,017,820
  
The Dun & Bradstreet Corporation Research & consulting services       
First Lien Term Loan, LIBOR+5.00% cash due 2/6/20267.05% 5,000,000
 4,908,337
 5,037,050
 (6)
     4,908,337
 5,037,050
  
TIBCO Software Inc. Application software       
First Lien Term Loan, LIBOR+4.00% cash due 6/30/20266.07% 7,989,795
 7,979,663
 8,011,448
 (6)
     7,979,663
 8,011,448
  
Tribe Buyer LLC Human resources & employment services       
First Lien Term Loan, LIBOR+4.50% cash due 2/16/20246.54% 1,556,998
 1,554,180
 1,453,201
 (6)(15)
     1,554,180
 1,453,201
  
Truck Hero, Inc. Auto parts & equipment       
First Lien Term Loan, LIBOR+3.75% cash due 4/22/20245.79% 5,739,880
 5,749,771
 5,385,930
 (6)
     5,749,771
 5,385,930
  
Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2019

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6)IndustryPrincipal (7)
 Cost Fair Value Notes
Uber Technologies, Inc. Application software       
First Lien Term Loan, LIBOR+4.00% cash due 4/4/20256.03% $2,239,323
 $2,224,436
 $2,230,467
 (6)
     2,224,436
 2,230,467
  
UFC Holdings, LLC Movies & entertainment       
First Lien Term Loan, LIBOR+3.25% cash due 4/29/20265.30% 4,944,058
 4,941,992
 4,962,945
 (6)
     4,941,992
 4,962,945
  
Uniti Group LP Specialized REITs       
First Lien Term Loan, LIBOR+5.00% cash due 10/24/20227.04% 8,848,483
 8,642,094
 8,648,021
 (6)(9)
     8,642,094
 8,648,021
  
UOS, LLC Trading companies & distributors       
First Lien Term Loan, LIBOR+5.50% cash due 4/18/20237.54% 8,819,673
 8,943,835
 8,929,919
 (6)
     8,943,835
 8,929,919
  
Veritas US Inc. Application software       
First Lien Term Loan, LIBOR+4.50% cash due 1/27/20236.60% 12,811,879
 12,902,946
 12,142,266
 (6)
     12,902,946
 12,142,266
  
Verra Mobility, Corp. Data processing & outsourced services       
First Lien Term Loan, LIBOR+3.75% cash due 2/28/20255.79% 4,949,749
 4,960,502
 4,976,552
 (6)(9)
     4,960,502
 4,976,552
  
Verscend Holding Corp. Healthcare technology       
First Lien Term Loan, LIBOR+4.50% cash due 8/27/20256.54% 10,975,140
 10,897,989
 11,032,320
 (6)
     10,897,989
 11,032,320
  
WeddingWire, Inc. Interactive media & services       
First Lien Term Loan, LIBOR+4.50% cash due 12/19/20256.54% 7,940,000
 7,904,378
 7,949,925
 (6)
     7,904,378
 7,949,925
  
Windstream Services, LLC Integrated telecommunication services       
First Lien Term Loan, PRIME+5.00% cash due 3/29/202110.00% 7,384,828
 7,227,936
 7,524,069
 (6)(9)
     7,227,936
 7,524,069
  
Woodford Express LLC Oil & gas exploration & production       
First Lien Term Loan, LIBOR+5.00% cash due 1/27/20257.04% 14,775,000
 14,662,039
 13,947,600
 (6)
     14,662,039
 13,947,600
  
WP CPP Holdings, LLC Aerospace & defense       
First Lien Term Loan, LIBOR+3.75% cash due 4/30/20256.01% 4,455,000
 4,445,709
 4,467,541
 (6)
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/202610.01% 1,000,000
 991,442
 995,830
 (6)
     5,437,151
 5,463,371
  
Zep Inc. Specialty chemicals       
First Lien Term Loan, LIBOR+4.00% cash due 8/12/20246.04% 4,655,000
 4,686,365
 3,687,132
 (6)
     4,686,365
 3,687,132
  
Zephyr Bidco Limited Specialized finance       
First Lien Term Loan, UK LIBOR+4.50% cash due 7/23/20255.21% £5,000,000
 6,667,495
 5,976,039
 (6)(9)
     6,667,495
 5,976,039
  
 Total Non-Control/Non-Affiliate Investments (190.8% of net assets)    $553,679,070
 $542,778,029
  
 Total Portfolio Investments (209.9% of net assets)    $626,868,734
 $597,104,447
  
Cash and Cash Equivalents and Restricted Cash         
JP Morgan Prime Money Market Fund, Institutional Shares    $228,653
 $228,653
  
Other cash accounts    13,822,979
 13,822,979
  
 Total Cash and Cash Equivalents and Restricted Cash (4.9% of net assets)    $14,051,632
 $14,051,632
  
Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (214.9% of net assets)    $640,920,366
 $611,156,079
  



Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 20172019

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 TravelCLICK, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 11/6/2021 (8)(13) 8.99%   $2,048,485
 $2,010,607
 $2,058,727
        2,010,607
 2,058,727
 Verdesian Life Sciences, LLC   Fertilizers & agricultural chemicals      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 7/1/2020 (8)(13) 6.31%   3,295,860
 3,273,753
 2,801,481
        3,273,753
 2,801,481
 TV Borrower US, LLC (7)   Integrated telecommunication services      
 First Lien Dollar Term B-1 Loan, LIBOR+4.75% (1% floor) cash due 2/22/2024 (8) 6.08%   3,383,000
 3,367,510
 3,406,258
        3,367,510
 3,406,258
 BeyondTrust Software, Inc.   Application software      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 9/25/2019 (8)(13) 8.33%   16,384,644
 16,255,828
 16,384,050
 First Lien Revolver, LIBOR+7% (1% floor) cash due 9/25/2019 (8)(11) 8.33%     (21,305) (130)
 500,000 Class A membership interests in BeyondTrust Holdings LLC       500,000
 628,846
        16,734,523
 17,012,766
 Dynatect Group Holdings, Inc.   Industrial machinery      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2020 (8) 5.83%   3,786,203
 3,786,203
 3,672,617
        3,786,203
 3,672,617
 Idera, Inc.   Internet software & services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 6/27/2024 (8) 6.24%   3,457,698
 3,424,359
 3,483,630
        3,424,359
 3,483,630
 Central Security Group, Inc.   Specialized consumer services      
 First Lien Term Loan, LIBOR+5.625% (1% floor) cash due 10/6/2021 (8) 6.86%   1,665,740
 1,660,679
 1,672,677
        1,660,679
 1,672,677
 Kellermeyer Bergensons Services, LLC   Diversified support services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 10/29/2021 (8)(13) 6.32%   5,251,500
 5,208,454
 5,248,218
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 4/29/2022 (8)(13) 9.81%   280,000
 280,000
 274,400
        5,488,454
 5,522,618
 GOBP Holdings Inc.   Food retail      
 Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 10/21/2022 (8)(13) 9.58%   3,685,714
 3,644,031
 3,717,983
        3,644,031
 3,717,983
 Executive Consulting Group, LLC   Healthcare services      
 First Lien Term Loan, LIBOR+4.75% (1% floor) cash due 11/21/2019 (8)(13) 5.99%   7,000,000
 7,000,000
 6,999,745
 Delayed Draw Term Loan, LIBOR+4.75% (1% floor) cash due 11/21/2019 (8) 5.99%   3,791,650
 3,791,650
 3,791,657
        10,791,650
 10,791,402
 Metamorph US 3, LLC   Internet software & services      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash 2% PIK due 12/1/2020 (8)(13)(18) 6.74%   14,070,138
 13,488,111
 5,343,093
 First Lien Revolver, LIBOR+6.5% (1% floor) cash due 12/1/2020 (8)(11)(13)(18) 7.74%   1,080,000
 1,037,075
 (36,455)
        14,525,186
 5,306,638
See notes to Consolidated Financial Statements.



Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2017

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Compuware Corporation   Internet software & services      
 First Lien Term Loan B3, LIBOR+4.25% (1% floor) cash due 12/15/2021 (8)(13) 5.49%   $8,423,623
 $8,345,374
 $8,528,918
        8,345,374
 8,528,918
 Motion Recruitment Partners LLC   Diversified support services      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 2/13/2020 (8)(13) 7.24%   13,509,054
 13,498,295
 13,508,389
 First Lien Revolver, LIBOR+6% (1% floor) cash due 2/13/2020 (8)(11) 7.24%   
 (960) (143)
        13,497,335
 13,508,246
 PowerPlan, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 2/23/2022 (8)(13) 6.49%   17,839,352
 17,800,018
 17,839,013
 First Lien Revolver, LIBOR+5.25% (1% floor) cash due 2/23/2021 (8)(11) 6.49%     
 (40)
        17,800,018
 17,838,973
 Digital River, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+6.5% (1% floor) cash due 2/12/2021 (8)(13) 7.82%   4,723,868
 4,681,840
 4,747,488
        4,681,840
 4,747,488
 Research Now Group, Inc.   Data processing & outsourced services      
 Second Lien Term Loan, LIBOR+8.75% (1% floor) cash due 3/18/2022 (8) 10.08%   4,000,000
 3,962,143
 3,960,000
        3,962,143
 3,960,000
 Staples, Inc.    Distributors      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 9/12/2024 (8)(16) 5.31%   13,000,000
 12,967,500
 12,957,035
        12,967,500
 12,957,035
 Raley's   Food retail      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 5/18/2022 (8)(13) 6.49%   3,209,821
 3,164,432
 3,209,821
        3,164,432
 3,209,821
 Aptos, Inc.   Data processing & outsourced services      
 First Lien Term Loan, LIBOR+6.75% (1% floor) cash due 9/1/2022 (8)(13) 8.08%   5,940,000
 5,842,031
 5,880,600
        5,842,031
 5,880,600
 Zep Inc.    Housewares & specialties      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 8/12/2024 (8) 5.24%   4,750,000
 4,795,075
 4,771,779
        4,795,075
 4,771,779
 All Web Leads, Inc.   Advertising      
 First Lien Term Loan, LIBOR+7.5% (1% floor) cash due 12/29/2020 (8)(13) 8.77%   25,839,538
 25,839,538
 23,192,266
        25,839,538
 23,192,266
 Allied Universal Holdco, LLC (f/k/a USAGM Holdco, LLC)    Security & alarm services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 7/28/2022 (8)(16) 5.08%   7,979,747
 8,018,318
 7,972,286
        8,018,318
 7,972,286
 Internet Pipeline, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+7.25% (1% floor) cash due 8/4/2022 (8)(13) 8.49%   13,081,433
 13,068,115
 13,212,714
 First Lien Revolver, LIBOR+7.25% (1% floor) cash due 8/4/2021 (8) 8.49%     
 8,029
        13,068,115
 13,220,743
See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2017

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Poseidon Merger Sub, Inc.   Advertising      
 Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 8/15/2023 (8) 9.81%   $7,000,000
 $6,980,121
 $7,070,000
        6,980,121
 7,070,000
 Valet Merger Sub, Inc.   Environmental & facilities services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 9/24/2021 (8)(13) 8.24%   5,880,000
 5,852,065
 5,879,798
 First Lien Revolver, LIBOR+7% (1% floor) cash due 9/24/2021 (8)(11) 8.24%   
 (10,697) (29)
 Incremental Term Loan , LIBOR+7% (1% floor) cash due 9/24/2021 (8) 8.24%   8,407,683
 8,328,663
 8,407,394
        14,170,031
 14,287,163
 DigiCert, Inc.   Internet software & services      
 Second Lien Term Loan, LIBOR+9% (1% floor) cash due 10/21/2022 (8)(13) 10.24%   2,000,000
 1,984,880
 2,000,000
 First Lien Term Loan, LIBOR+4.75% (1% floor) cash due 10/21/2021 (8) 5.99%   11,000,000
 10,945,000
 11,000,000
        12,929,880
 13,000,000
 Lytx, Inc.   Research & consulting services      
 500 Class B Units in Lytx Holdings, LLC       
 79,788
 500 Class A Units in Lytx Holdings, LLC       292,459
 351,355
        292,459
 431,143
 4 Over International, LLC   Commercial printing      
 First Lien Term Loan, LIBOR+6.0% (1% floor) cash due 6/7/2022 (8)(13) 7.24%   5,850,412
 5,804,485
 5,850,463
 First Lien Revolver, LIBOR+6.0% (1% floor) cash due 6/7/2021 (8)(11) 7.24%     (502) 
        5,803,983
 5,850,463
 Ancile Solutions, Inc.   Internet software & services      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 6/30/2021 (8)(13) 8.33%   9,881,312
 9,664,392
 9,802,707
        9,664,392
 9,802,707
 Pomeroy Group Holdings, Inc.    IT consulting & other services      
 First Lien Term Loan, LIBOR+6% (1% floor) cash due 11/30/2021 (8)(13) 7.59%   4,443,467
 4,339,309
 4,443,467
        4,339,309
 4,443,467
 Sailpoint Technologies, Inc.    Application software      
 First Lien Term Loan, LIBOR+7% (1% floor) cash due 8/16/2021 (8) 8.33%   17,391,304
 17,070,160
 17,391,307
 First Lien Revolver, LIBOR+7% (1% floor) cash due 8/16/2021 (8)(11) 8.33%     (3,067) 
        17,067,093
 17,391,307
 Curvature, Inc.    IT consulting & other services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 10/30/2023 (8)(13) 6.24%   9,925,000
 9,871,624
 9,701,688
        9,871,624
 9,701,688
 Cardenas Markets LLC   Food retail      
 First Lien Term Loan, LIBOR+5.75% (1% floor) cash due 11/29/2023 (8)(13) 7.08%   3,275,250
 3,246,405
 3,254,780
        3,246,405
 3,254,780
See notes to Consolidated Financial Statements.





Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2017

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Ministry Brands, LLC   Internet software & services      
 First Lien Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (8)(13) 6.24%   $9,648,871
 $9,565,812
 $9,648,874
 First Lien Delayed Draw Term Loan, LIBOR+5% (1% floor) cash due 12/2/2022 (8)(13) 6.24%   3,354,904
 3,314,185
 3,354,905
 Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (8)(13) 10.49%   1,568,067
 1,547,561
 1,568,067
 Second Lien Delayed Draw Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023 (8) 10.49%   431,933
 426,285
 431,933
 First Lien Revolver, LIBOR+5% (1% floor) cash due 12/2/2022 (8)(11) 6.24%     (861) 
        14,852,982
 15,003,779
 Impact Sales, LLC   Advertising      
 First Lien Term Loan B, LIBOR+7% (1% floor) cash due 12/30/2021 (8) 8.30%   3,721,875
 3,628,868
 3,715,131
 First Lien Delayed Draw Term Loan, LIBOR+7% (1% floor) cash due 12/30/2021 (8) 8.30%   171,016
 171,016
 168,751
        3,799,884
 3,883,882
 Empower Payments Acquisition, Inc.    Commercial printing      
 First Lien Term Loan B, LIBOR+5.5% (1% floor) cash due 11/30/2023 (8)(13) 6.83%   6,153,500
 6,043,807
 6,091,669
        6,043,807
 6,091,669
 First American Payment Systems, L.P.    Diversified support services      
 First Lien Term Loan B, LIBOR+5.75% (1% floor) cash due 1/8/2024 (8)(13) 6.98%   4,143,750
 4,106,872
 4,131,319
        4,106,872
 4,131,319
 DFT Intermediate LLC    Specialized finance      
 First Lien Term Loan, LIBOR+5.5% (1% floor) cash due 3/1/2023 (8)(13) 6.74%   14,962,500
 14,624,842
 14,864,020
 First Lien Revolver, LIBOR+5.5% (1% floor) cash due 3/1/2022 (8) 6.74%   750,000
 733,438
 745,064
        15,358,280
 15,609,084
 Systems, Inc.    Industrial machinery      
 First Lien Term Loan, LIBOR+5.25% (1% floor) cash due 3/3/2022 (8)(13) 6.57%   8,831,921
 8,715,152
 8,787,762
 First Lien Revolver, LIBOR+5.5% (1% floor) cash due 3/3/2022 (8)(11) 6.57%     (7,950) (7,920)
        8,707,202
 8,779,842
 Onvoy, LLC    Integrated telecommunication services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 2/10/2024 (8)(13) 5.83%   7,960,000
 7,923,563
 7,962,507
        7,923,563
 7,962,507
 Salient CRGT, Inc.    IT consulting & other services      
 First Lien Term Loan, LIBOR+5.75% (1% floor) cash due 2/28/2022 (8)(13) 6.99%   6,387,798
 6,275,056
 6,343,083
        6,275,056
 6,343,083
 MHE Intermediate Holdings, LLC    Diversified support services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 3/11/2024 (8)(13) 6.33%   11,774,771
 11,556,138
 11,774,776
 First Lien Revolver, LIBOR+5% (1% floor) cash due 3/10/2023 (8) 6.33%   1,353,038
 1,255,454
 1,353,038
 Delayed Draw Term Loan, LIBOR+5% (1% floor) cash due 3/11/2024 (8) 6.33%   1,873,430
 1,782,689
 1,873,430
        14,594,281
 15,001,244
See notes to Consolidated Financial Statements.


Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2017

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 Paris Presents Incorporated    Personal Products      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 12/31/2020 (8)(13) 6.24%   $3,134,006
 $3,106,950
 $3,134,006
 Second Lien Term Loan, LIBOR+8.75% (1% floor) cash due 12/31/2021 (8)(13) 9.99%   3,500,000
 3,437,500
 3,465,000
        6,544,450
 6,599,006
 PSI Services LLC    Human Resource & Employment Services      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 1/20/2023 (8)(13) 6.24%   6,736,979
 6,644,622
 6,616,844
        6,644,622
 6,616,844
 MHVC Acquisition Corp.    Aerospace & Defense      
 First Lien Term Loan B, LIBOR+5.25% (1% floor) cash due 4/25/2024 (8)(13) 6.49%   6,483,750
 6,453,287
 6,556,692
        6,453,287
 6,556,692
LSF9 Atlantis Holdings, LLC    Computer & Electronics Retail      
 First Lien Term Loan B, LIBOR+6% (1% floor) cash due 5/1/2023 (8)(13) 7.24%   7,453,125
 7,383,862
 7,498,142
        7,383,862
 7,498,142
 Everi Payments Inc.    Casinos & gaming      
 First Lien Term Loan B, LIBOR+4.5% (1% floor) cash due 5/9/2024 (8)(13)(16) 5.74%   4,987,500
 4,963,767
 5,038,622
        4,963,767
 5,038,622
 BJ's Wholesale Club, Inc.    Hypermarkets & super centers      
 First Lien Term Loan B, LIBOR+3.75% (1% floor) cash due 1/26/2024 (8)(16) 4.98%   2,992,500
 2,996,051
 2,876,002
        2,996,051
 2,876,002
 Bass Pro Group, LLC    Specialty Stores      
 First Lien Term Loan B, LIBOR+5% (1% floor) cash due 12/15/2023 (8) 6.24%   6,000,000
 5,877,353
 5,667,480
        5,877,353
 5,667,480
 Imagine! Print Solutions, LLC    Advertising      
 First Lien Term Loan B, LIBOR+4.75% (1% floor) cash due 6/21/2022 (8) 6.09%   6,965,000
 6,898,900
 6,999,825
        6,898,900
 6,999,825
MND Holdings III Corp.    Specialty Stores      
 First Lien Term Loan B, LIBOR+4.5% (1% floor) cash due 6/19/2024 (8)(13) 5.83%   2,493,750
 2,481,733
 2,526,480
        2,481,733
 2,526,480
 Veritas US Inc.    Internet software & services      
 First Lien Term Loan B, LIBOR+4.5% (1% floor) cash due 1/27/2023 (8)(16) 5.83%   10,077,193
 10,215,779
 10,189,503
        10,215,779
 10,189,503
 UOS, LLC   Trucking      
 First Lien Term Loan B, LIBOR+5.5% (1% floor) cash due 4/18/2023 (8) 6.74%   3,990,000
 4,079,548
 4,099,725
        4,079,548
 4,099,725
 Accudyne Industries, LLC    Oil & gas equipment & services      
 First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 8/18/2024 (8)(16) 5.01%   14,000,000
 14,057,018
 14,052,500
        14,057,018
 14,052,500

See notes to Consolidated Financial Statements.


Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2017

Portfolio Company/Type of Investment (1)(2)(9)(10)(14)  Cash Interest Rate (8) Industry Principal (5)
 Cost Fair Value
 DTZ U.S. Borrower, LLC   Real Estate Services      
 First Lien Term Loan, LIBOR+3.25% (1% floor) cash due 11/4/2021 (8)(16) 4.57%   $12,211,343
 $12,247,424
 $12,256,098
        12,247,424
 12,256,098
 Truck Hero, Inc.    Auto parts & equipment      
 First Lien Term Loan, LIBOR+4% (1% floor) cash due 4/22/2024 (8) 5.33%   5,857,320
 5,871,777
 5,798,747
        5,871,777
 5,798,747
 Alphabet Holding Company, Inc.    Healthcare distributors      
 First Lien Term Loan, LIBOR+3.5% (1% floor) cash due 9/26/2024 (8) 4.83%   5,000,000
 4,975,000
 4,948,950
        4,975,000
 4,948,950
 McAfee, LLC    Internet software & services      
 First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2024 (8) 5.83%   7,000,000
 6,930,000
 7,072,905
        6,930,000
 7,072,905
 Total Non-Control/Non-Affiliate Investments (170.9% of net assets)       $516,270,639
 $501,894,073
 Total Portfolio Investments (190.9% of net assets)       $605,090,324
 $560,436,660
Cash and Cash Equivalents          
Wells Fargo Bank Institutional Money Market Fund
       $32,214,184
 $32,214,184
JP Morgan Prime Money Market Fund       3,118,675
 3,118,675
Other cash accounts       271,268
 271,268
 Total Cash and Cash Equivalents (12.1% of net assets)       $35,604,127
 $35,604,127
Total Portfolio Investments, Cash and Cash Equivalents (203.0% of net assets)       $640,694,451
 $596,040,787

See notes to Consolidated Financial Statements.






Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
September 30, 2017
Derivatives Instrument Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Counterparty Cumulative Unrealized Appreciation (Depreciation)
Foreign currency forward contract $6,106,199
 £4,934,900
 10/15/2019 JPMorgan Chase Bank, N.A. $20,876

(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 byInterest 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 1940 Act as investmentsoriginal credit agreements or permanent in companies in which the Company owns more than 25% of the voting securitiesnature per loan amendment or maintains greater than 50% of the board representation.waiver documents.
(4)Affiliate Investments generally are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25%Each of the voting securities.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)Principal includes accumulated PIK interest and is netEquity ownership may be held in shares or units of repayments, if any.companies related to the portfolio companies.
(6)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(7)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 June 30, 2017, qualifying assets represented 89.6% of the Company's total assets and non-qualifying assets represented 10.4% of the Company's total assets.
(8)The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of September 30, 2019, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 2.04%, the 60-day LIBOR at 2.09%, the 90-day LIBOR at 2.10%, the 180-day LIBOR at 2.06%, the PRIME at 5.00% and the 30-day UK LIBOR at 0.71%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(7)Principal includes accumulated PIK interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. All other investments are denominated in U.S. dollars.
(8)Control Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(9)Interest ratesInvestment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may be adjusted from period to period on certain term loansnot 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, 2019, qualifying assets represented 78.6% of the Company's total assets and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations innon-qualifying assets represented 21.4% of the original credit agreements or permanent in nature per loan amendment or waiver documents.Company's total assets.
(10)Each of the Company's investments is pledged as collateral under one or more of its credit facilities or its debt securitization. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(11)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.
(12)As defined in the 1940Investment Company 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 toCompany's annual report on Form 10-K for the Consolidated Financial Statementsyear ended September 30, 2019 for transactions during the three months ended December 31, 2016 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(13)
Investment pledged as collateral under the Company's 2015 Debt Securitization (as defined in Note 6 -Borrowings), in whole or in part.
(14)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(15)(11)See Note 3 to the Consolidated Financial Statements for portfolio composition.
(16)As of September 30, 2017, these investments are categorized as Level 2 within the fair value hierarchy established by ASC 820. All other investments, with the exception of investments valued using net asset value as a practical expedient, are categorized as Level 3 as of September 30, 2017 and were valued using significant unobservable inputs.
(17)(12)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.
(18)(13)This investment was on cash non-accrual statusNon-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments. 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.
(14)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.
(15)As of September 30, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.2019, these investments are categorized as Level 3 within the fair value hierarchy established by ASC 820.


See notes to Consolidated Financial Statements.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1. Organization
Oaktree Strategic Income Corporation (formerly known as Fifth Street Senior Floating Rate Corp. through October 17, 2017) (together with its consolidated subsidiaries, the "Company") is a specialty finance company that islooks to provide customized capital solutions for middle-market companies in both the syndicated and private placement markets. The Company was formed in May 2013 and operates as a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development companyBusiness Development Company under the 1940Investment Company Act. The Company has qualified and elected to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), for tax purposes.
The Company seeks to generate a stable source of current income while minimizing the risk of principal loss and, to a lesser extent, capital appreciation by providing middle-marketinnovative first-lien financing solutions to companies with primarily first lien secured debt financings that pay interest at rates which are determined periodically onacross a wide variety of industries. To a lesser extent, the basis of a floating base lending rate. The Company also has an investment in a joint venture that invests in similar types of loans. The Company may also invest in senior unsecured loans, including subordinated loans and bonds, issued by private middle-market companies, and, to a lesser extent, subordinated loans issued by private middle market companies, senior and subordinated loans and bonds issued by public companies and equity investments.
As of October 17, 2017,March 31, 2020, the Company is externally managed by Oaktree Capital Management, L.P. (“Oaktree” or the “Investment Adviser”), a subsidiary of Oaktree Capital Group, LLC (“OCG”), a global investment manager specializing in alternative investments, pursuant to an investment advisory agreement between the Company and the Investment AdviserOaktree, as amended from time to time (the “New Investment“Investment Advisory Agreement”). Oaktree Fund Administration, LLC (“Oaktree Administrator” or “OFA”), a subsidiary of the Investment Adviser,Oaktree, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and OFAOaktree Administrator, as amended from time to time (the “New Administration“Administration Agreement”). See Note 11.
Prior to October 17, 2017, the Company was externally managed by Fifth Street Management LLC (“FSM”), an indirect, partially-owned subsidiary of Fifth Street In 2019, Brookfield Asset Management Inc. (“FSAM”("Brookfield"), acquired a majority economic interest in OCG. OCG operates as an independent business within Brookfield, with its own product offerings and FSC CT LLC ("FSC CT" or the "Former Administrator"), a subsidiary of FSM, also provided certain administrativeinvestment, marketing and other services necessary 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 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 of Oaktree Specialty Lending Corporation (formerly known as Fifth Street Finance Corp.) (“OCSL”) and the Company. The closing of the Transaction resulted in an assignment for purposes of the 1940 Act of the investment advisory agreement between FSM and the Company and, as a result, its immediate termination.support teams.  
Note 2. Significant Accounting Policies
Basis of Presentation:
The Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("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. Certain prior-period financial information has been reclassified to conform to current period presentation. The Company is an investment company following the accounting and reporting guidance in FASB ASC Topic 946, Financial Services - Investment Companies ("ASC 946").
Use of Estimates:
The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Changes in the economic and political environments, financial markets and any other parameters used in determining these estimates could cause actual results to differ and such differences could be material. Significant estimates include the valuation of investments and revenue recognition.
Consolidation:
The accompanying Consolidated Financial Statements include the accounts of Oaktree Strategic Income Corporation and its consolidated subsidiaries. Each consolidated subsidiary is wholly-owned and, as such, consolidated into the Consolidated Financial Statements. Certain subsidiaries that hold investments are treated as pass through entities for tax purposes. The assets of certain of the consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Strategic Income Corporation or any
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


of its other subsidiaries. As of DecemberMarch 31, 2017,2020, the consolidated subsidiaries were FS Senior Funding CLO LLC, FSOCSI Senior Funding II LLC and FSOCSI Senior Funding Ltd. (“2015 Issuer”).
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.

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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


("EV") of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that the Company is deemed to control under the 1940Investment Company Act. To estimate the EV of a portfolio company, the Investment AdviserOaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company and competitive dynamics in the company’s industry. The Investment AdviserOaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company: (i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase price multiplesprices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company. The Company may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and the Company considers the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, the Company depends on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.
The Company estimates the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.
The Company's Board of Directors undertakes a multi-step valuation process each quarter in connection with determining the fair value of the Company's investments:
The quarterly valuation process begins with each portfolio company or investment being initially valued by the Investment Adviser'sOaktree's valuation team in conjunction with the Investment Adviser'sOaktree's portfolio management team and investment professionals responsible for each portfolio investment;
Preliminary valuations are then reviewed and discussed with management of the Investment Adviser;Oaktree;
Separately, independent valuation firms engaged by the Board of Directors prepare valuations of the Company's investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to the Company and provide such reports to the Investment AdviserOaktree and the Audit Committee of the Board of Directors;
The Investment AdviserOaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;
The Audit Committee reviews the preliminary valuations with the Investment Adviser,Oaktree, and the Investment AdviserOaktree responds and supplements the preliminary valuations to reflect any discussions between the Investment AdviserOaktree and the Audit Committee;
The Audit Committee makes a recommendation to the full Board of Directors regarding the fair value of the investments in the Company's portfolio; and
The Board of Directors discusses valuations and determines the fair value of each investment in the Company's portfolio.
The fair value of the Company's investments as of DecemberMarch 31, 20172020 and September 30, 20172019 was determined in good faith by the Board of Directors. The Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of the Company's portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that assistance. However, the Board of Directors is responsible for the ultimate valuation of the
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


portfolio investments at fair value as determined in good faith pursuant to the Company's valuation policy and a consistently applied valuation process.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.
With the exception of the line items entitled "deferred financing costs," "other assets," and "credit facilities payable" and "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," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable," "director fees payable" and "payables from unsettled transactions" and "director fees payable" approximate fair value due to their short maturities.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Foreign Currency Translation:
The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.
Derivative Instruments:
The Company does not utilize hedge accounting and as such values its derivative instruments at fair value with the unrealized gains or losses recorded in “net unrealized appreciation (depreciation)” in the Company’s Consolidated Statements of Operations.
Investment Income:
Interest Income
Interest income, adjusted for accretion of original issue discount ("OID"), is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash and the portfolio company, in management's judgment, is likely to continue timely payment of its remaining obligations.
In connection with its investment in a portfolio company, the Company sometimes receives nominal cost equity that is valued as part of the negotiation process with the portfolio company. When the Company receives nominal cost equity, the Company allocates its cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.
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 investmentsincluding 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 may provide financial advisory services to portfolio companies, and in return, the Company may receive fees for capital structuring services. These fees are generally nonrecurring and are recognized by the Company upon the investment closing date. The Company receives a variety ofmay also receive additional fees in the ordinary course of business, including servicing, advisory, amendment, structuring and prepayment fees, which are classified as fee income and recognized as they are earned.earned or the services are rendered.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company has also structured exit fees across certain of its portfolio investments to be received upon the future exit of those investments. These fees are typically paid to the Company upon the earliest to occur of (i) a sale of the borrower or substantially all of the assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs. The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments. These fees are included in net investment income over the life of the loan.
Dividend Income
The Company generally recognizes dividend income on the ex-dividendrecord 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, the Company will not
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


record distributions from equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.
Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents and restricted cash consist of demand deposits and highly liquid investments with maturities of three months or less when acquired. The Company places its cash and cash equivalents and restricted cash with financial institutions and, at times, cash held in bank accounts may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit. Cash and cash equivalents are classified as Level 1 assets and restricted cash are included on the Company's Consolidated Schedule of Investments.Investments and cash equivalents are classified as Level 1 assets.
As of DecemberMarch 31, 2017,2020, included in restricted cash was $6.2$8.6 million that was held at Wells Fargo Bank, N.A. in connection with the Company's Citibank facilityFacility and 2015 Debt SecuritizationDeutsche Bank Facility (each as defined in Note 6– Borrowings) and $0.8 million held at East West Bank in connection with the Company's East West Bank Facility (as defined in Note 6 Borrowings). PursuantOf the $8.6 million of restricted cash held at Wells Fargo Bank, N.A., pursuant to the terms of the Citibank facility,Facility, the Company was restricted in terms of access to $1.9$3.5 million of that amount 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. As of DecemberMarch 31, 2017, $4.32020, the remaining $5.1 million of cash held in connection with the 2015 Debt Securitizationat Wells Fargo Bank, N.A. was restricted due to the obligation to pay interest on the notes under the terms of the 2015 Debt Securitization.Deutsche Bank Facility. As of March 31, 2020, $0.8 million held at East West Bank was restricted due to minimum balance requirements under the East West Bank Facility.
As of September 30, 2017,2019, included in restricted cash was $7.4$7.6 million that was held at Wells Fargo Bank, N.A. in connection with the Company's Citibank facilityFacility and 2015 Debt SecuritizationDeutsche Bank Facility (each as defined in Note 6– Borrowings) and $0.8 million held at East West Bank in connection with the Company's East West Bank Facility (as defined in Note 6 Borrowings). PursuantOf the $7.6 million of restricted cash held at Wells Fargo Bank, N.A., pursuant to the terms of the Citibank facility,Facility, the Company was restricted in terms of access to $2.0$3.4 million of that amount 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. As of September 30, 2017, $5.42019, the remaining $4.3 million of cash held in connection with the 2015 Debt Securitizationat Wells Fargo Bank, N.A. was restricted due to the obligation to pay interest on the notes under the terms of the 2015 Debt Securitization.Deutsche Bank Facility. As of September 30, 2019, $0.8 million held at East West Bank was restricted due to minimum balance requirements under the East West Bank Facility.
Due from Portfolio Companies:
Due from portfolio companies consists of amounts payable to the Company from its portfolio companies, including proceeds 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.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Income Taxes:
The Company has elected to be subject to tax as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each taxable year. As a RIC, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed currently to stockholders as a dividend. Depending on the level of taxable income earned during a taxable year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next taxable year. The Company would then incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. The Company anticipates timely distribution of its taxable income within the tax rules under
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Subchapter M of the Code. The Company did not incur a U.S. federal excise tax for calendar years 20152018 and 2016 and does not expect to incur a U.S. federal excise tax for calendar year 2017.2019.
The Company holdsmay hold certain portfolio investments through taxable subsidiaries. The purpose of the Company'sa taxable subsidiariessubsidiary 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, 20152017, 2018 or 2016.2019. 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.
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 on its ongoing financial reporting.

In November 2016,2020, the FASB issued ASU 2016-18,2020-04, StatementReference Rate Reform (Topic 848)Facilitation of Cash Flows (Topic 230),the Effects of Reference Rate Reform on Financial Reporting, which requires that a statement of cash flows explainprovides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions to ease the change duringpotential burden in accounting for (or recognizing 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 showneffects of) reference rate reform on the statement of cash flows.financial reporting if certain criteria are met. 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 endedfrom March 12, 2020 through December 31, 2017. The new2022. As of March 31, 2020, the guidance isdid not expected to have a material effectimpact on the Company's Consolidated Financial Statements.


OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 3. Portfolio Investments
As of DecemberMarch 31, 2017, 186.7%2020, 248.2% of net assets at fair value, or $541.4$524.4 million, was invested in 6688 portfolio companies, including 19.7%17.9% of net assets, or $57.2$37.8 million, in subordinated notes and limited liability company ("LLC") equity interests of FSFROCSI Glick JV LLC (together with its consolidated subsidiaries, the "Glick"OCSI Glick JV") at fair value, and 15.9%14.8% of net assets, or $46.2$31.3 million, was invested in cash and cash equivalents (including $6.2$9.3 million of restricted cash). In comparison, as of September 30, 2017, 190.9%2019, 209.9% of net assets at fair value, or $560.4$597.1 million, was invested in 6784 portfolio companies, including 19.6%19.1% of net assets, or $57.6$54.3 million, in subordinated notes and limited liability company ("LLC")LLC equity interests of the OCSI Glick JV at fair value, and 14.6%4.9% of net assets, or $43.0$14.1 million, was invested in cash and cash equivalents (including $7.4$8.4 million of restricted cash). As of DecemberMarch 31, 2017, 89.2%2020, 92.8% of the Company's portfolio at fair value consisted of senior secured debt investments that bore interest at floating rates and that are secured by first or second priority liens on the assets of the portfolio companies, 10.6%7.2% consisted of investments in the subordinated notes of the OCSI Glick
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JV and 0.2% consisted of equity investments in other portfolio companies.that bore interest at floating rates. As of September 30, 2017, 89.5%2019, 90.9% of the Company's portfolio at fair value consisted of senior secured debt investments that bore interest at floating rates and that are secured by first or second priority liens on the assets of the portfolio companies, 10.3%9.1% consisted of investments in the subordinated notes of the OCSI Glick JV that bore interest at floating rates.
As of March 31, 2020 and 0.2%September 30, 2019, the Company's equity investments consisted of LLC equity investmentsinterests in other portfolio companies.companies and warrants. These instruments generally do not produce a current return but are held for potential investment appreciation and capital gain.
During the three and six months ended DecemberMarch 31, 2017 and December 31, 2016,2020, the Company recorded net realized gain (loss) on investments and secured borrowingslosses of $(4.4)$7.4 million and $0.1$7.9 million, respectively. During the three and six months ended DecemberMarch 31, 20172019, the Company recorded net realized gains (losses) of $(0.3) million and 2016,$1.4 million, respectively. During the three and six months ended March 31, 2020, the Company recorded net unrealized depreciation of $67.4 million and $65.5 million, respectively. During the three and six months ended March 31, 2019, the Company recorded net unrealized appreciation (depreciation) on investments and secured borrowings of $1.7$8.8 million and $(5.2)$(11.0) million, respectively.
The composition of the Company's investments as of DecemberMarch 31, 20172020 and September 30, 20172019 at cost and fair value was as follows:
  December 31, 2017 September 30, 2017
  Cost Fair Value Cost Fair Value
Investments in debt securities (senior secured) $502,318,893
 $482,999,264
 $523,384,267
 $501,769,997
Investments in equity securities (common stock, preferred stock and warrants) 10,365,422
 1,228,419
 10,365,425
 1,059,989
Debt investment in Glick JV 64,524,032
 57,180,650
 64,228,881
 57,606,674
Equity investment in Glick JV 7,111,751
 
 7,111,751
 
Total $584,320,098
 $541,408,333
 $605,090,324
 $560,436,660
  March 31, 2020 September 30, 2019
  Cost Fair Value Cost Fair Value
Senior secured loans $546,774,334
 $486,545,381
 $553,679,070
 $542,484,690
Equity securities, excluding the OCSI Glick JV 
 
 
 293,339
OCSI Glick JV subordinated notes 66,045,552
 37,833,930
 66,077,913
 54,326,418
OCSI Glick JV equity interests 7,111,751
 
 7,111,751
 
Total $619,931,637
 $524,379,311
 $626,868,734
 $597,104,447
The following table presents the financial instruments carried at fair value as of DecemberMarch 31, 20172020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
  Level 1 Level 2 Level 3 Measured at Net Asset Value (a) Total
Investments in debt securities (senior secured) $
 $250,899,703
 $232,099,561
 $
 $482,999,264
Investments in debt securities (subordinated notes of Glick JV) 
 
 57,180,650
 
 57,180,650
Investment in equity securities (common stock, preferred stock and warrants, including LLC equity interests of Glick JV) 
 
 1,228,419
 
 1,228,419
Total investments at fair value 
 250,899,703
 290,508,630
 
 541,408,333
Cash and cash equivalents 39,975,500
 
 
 
 39,975,500
Total assets at fair value $39,975,500
 $250,899,703
 $290,508,630
 $
 $581,383,833
__________ 
(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 STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  Level 1 Level 2 Level 3 Total
Senior secured loans $
 $275,183,981
 $211,361,400
 $486,545,381
OCSI Glick JV subordinated notes 
 
 37,833,930
 37,833,930
Total investments at fair value $
 $275,183,981
 $249,195,330
 $524,379,311
Cash equivalents $2,122,887
 $
 $
 $2,122,887
Derivative asset 
 316,967
 
 316,967
Total assets at fair value $2,122,887
 $275,500,948
 $249,195,330
 $526,819,165
The following table presents the financial instruments carried at fair value as of September 30, 20172019 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
  Level 1 Level 2 Level 3 Measured at Net Asset Value (a) Total
Investments in debt securities (senior secured) $
 $75,149,541
 $426,620,456
 $
 $501,769,997
Investments in debt securities (subordinated notes of Glick JV) 
 
 57,606,674
 
 57,606,674
Investment in equity securities (common stock, preferred stock and warrants, including LLC equity interests of Glick JV) 
 
 1,059,989
 
 1,059,989
Total investments at fair value 
 75,149,541
 485,287,119
 
 560,436,660
Cash and cash equivalents 35,604,127
 
 
 
 35,604,127
Total assets at fair value $35,604,127
 $75,149,541
 $485,287,119
 $
 $596,040,787
  Level 1 Level 2 Level 3 Total
Senior secured loans $
 $360,600,227
 $181,884,463
 $542,484,690
OCSI Glick JV subordinated notes 
 
 54,326,418
 54,326,418
Equity securities 
 
 293,339
 293,339
Total investments at fair value $
 $360,600,227
 $236,504,220
 $597,104,447
Cash equivalents $228,653
 $
 $
 $228,653
Derivative asset 
 20,876
 
 20,876
Total assets at fair value $228,653
 $360,621,103
 $236,504,220
 $597,353,976
__________ 
(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.


OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides a roll-forward in the changes in fair value from September 30, 2017 to December 31, 20172019 to March 31, 2020 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
  Investments
         
  Senior Secured Debt Subordinated notes of Glick JV Common stock, preferred stock and warrants Total
Fair value as of September 30, 2017 $426,620,456
 $57,606,674
 $1,059,989
 $485,287,119
New investments & net revolver activity 24,210,128
 
 
 24,210,128
Redemptions/repayments/sales (106,793,739) 
 
 (106,793,739)
Transfers out (a) (112,078,142) 
 
 (112,078,142)
Net accrual of PIK interest income 
 295,151
 
 295,151
Accretion of original issue discount 747,346
 
 
 747,346
Net unrealized appreciation (depreciation) on investments (416,804) (721,175) 168,430
 (969,549)
Net realized loss on investments (189,684) 
 
 (189,684)
Fair value as of December 31, 2017 $232,099,561
 $57,180,650
 $1,228,419
 $290,508,630
Net unrealized appreciation (depreciation) relating to Level 3 assets and liabilities still held as of December 31, 2017 and reported within net unrealized appreciation (depreciation) on investments and net unrealized appreciation on secured borrowings in the Consolidated Statement of Operations for the three months ended December 31, 2017 $54,086
 $(721,175) $168,430
 $(498,659)
  Investments
         
  Senior Secured Loans OCSI Glick JV Subordinated Notes Equity Securities Total Investments
Fair value as of December 31, 2019 $192,210,754
 $54,169,710
 $293,339
 $246,673,803
Purchases 49,134,545
 
 
 49,134,545
Sales and repayments (20,332,442) (10,721) (736,493) (21,079,656)
Transfers in (a) 8,640,034
 
 
 8,640,034
PIK interest income 288,081
 
 
 288,081
Accretion of OID 298,214
 
 
 298,214
Net unrealized appreciation (depreciation) (18,802,137) (16,325,059) (293,339) (35,420,535)
Net realized gains (losses) (75,649) 
 736,493
 660,844
Fair value as of March 31, 2020 $211,361,400
 $37,833,930
 $
 $249,195,330
Net unrealized appreciation (depreciation) relating to Level 3 assets still held as of March 31, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended March 31, 2020 $(18,892,029) $(16,325,059) $
 $(35,217,088)
__________ 
(a)There were transfers out ofinto Level 3 tofrom Level 2 for certain investments during the quarterthree months ended DecemberMarch 31, 20172020 as a result of an increaseda change in the number of market quotes available and/or increaseda change in market liquidity.


The following table provides a roll-forward in the changes in fair value from December 31, 2018 to March 31, 2019 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
  Investments
         
  Senior Secured Debt OCSI Glick JV Subordinated Notes Equity Securities Total Investments
Fair value as of December 31, 2018 $195,065,601
 $54,535,309
 $209,654
 $249,810,564
Purchases 21,809,889
 
 
 21,809,889
Sales and repayments (15,775,712) (202,891) 
 (15,978,603)
Transfers in (a) 10,931,250
 
 
 10,931,250
Transfers out (a) (10,355,920) 
 
 (10,355,920)
Accretion of OID 474,313
 
 
 474,313
Net unrealized appreciation (depreciation) 110,120
 1,684,985
 43,344
 1,838,449
Fair value as of March 31, 2019 $202,259,541
 $56,017,403
 $252,998
 $258,529,942
Net unrealized appreciation (depreciation) relating to Level 3 assets still held as of March 31, 2019 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended March 31, 2019 $114,250
 $1,684,985
 $43,344
 $1,842,579
__________ 
(a)There were transfers into/out of Level 3 from Level 2 for certain investments during the three months ended March 31, 2019 as a result of a change in the number of market quotes available and/or a change in market liquidity.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


The following table provides a roll-forward in the changes in fair value from September 30, 20162019 to DecemberMarch 31, 20162020 for all investments and secured borrowings for which the Company determined fair value using unobservable (Level 3) factors:
  Investments Liabilities
           
  Senior Secured Debt Subordinated notes of Glick JV Common stock, preferred stock and warrants Total Secured Borrowings
Fair value as of September 30, 2016 $502,385,158
 $56,885,646
 $7,902,556
 $567,173,360
 $4,985,425
New investments & net revolver activity 37,633,299
 
 
 37,633,299
 
Redemptions/repayments (66,713,067) 
 
 (66,713,067) (5,000,000)
Net accrual of PIK interest income 59,404
 
 
 59,404
 
Accretion of original issue discount 692,196
 
 
 692,196
 
Net change in unearned income (28,807) 
 
 (28,807) 
Net unrealized appreciation (depreciation) on investments (2,392,863) 4,859,827
 (1,263,383) 1,203,581
  
Net unrealized appreciation on secured borrowings 
 
 
 
 14,575
Net realized gain on investments 82,762
 
 
 82,762
 
Fair value as of December 31, 2016 $471,718,082
 $61,745,473
 $6,639,173
 $540,102,728
 $
Net unrealized appreciation (depreciation) relating to Level 3 assets and liabilities still held as of December 31, 2016 and reported within net unrealized appreciation (depreciation) on investments and net unrealized appreciation on secured borrowings in the Consolidated Statement of Operations for the three months ended December 31, 2016 $(2,657,419) $4,859,827
 $(1,263,383) $939,025
 $
  Investments
         
  Senior Secured Loans OCSI Glick JV Subordinated Notes Equity Securities Total Investments
Fair value as of September 30, 2019 $181,884,463
 $54,326,418
 $293,339
 $236,504,220
Purchases 64,449,945
 
 
 64,449,945
Sales and repayments (31,911,455) (32,361) (736,493) (32,680,309)
Transfers in (a) 15,322,156
 
 
 15,322,156
PIK interest income 288,081
 
 
 288,081
Accretion of OID 459,843
 
 
 459,843
Net unrealized appreciation (depreciation) (18,766,463) (16,460,127) (293,339) (35,519,929)
Net realized gains (losses) (365,170) 
 736,493
 371,323
Fair value as of March 31, 2020 $211,361,400
 $37,833,930
 $
 $249,195,330
Net unrealized appreciation (depreciation) relating to Level 3 assets still held as of March 31, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the six months ended March 31, 2020 $(19,149,265) $(16,460,127) $
 $(35,609,392)
__________ 
(a)There were transfers into Level 3 from Level 2 for certain investments during the six months ended March 31, 2020 as a result of a change in the number of market quotes available and/or a change in market liquidity.

The following table provides a roll-forward in the changes in fair value from September 30, 2018 to March 31, 2019 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
  Investments
         
  Senior Secured Debt OCSI Glick JV Subordinated Notes Equity Securities Total Investments
Fair value as of September 30, 2018 $182,756,067
 $58,512,170
 $1,962,245
 $243,230,482
Purchases 38,339,708
 
 
 38,339,708
Sales and repayments (32,842,383) (264,510) (1,875,587) (34,982,480)
Transfers in (a) 26,053,270
 
 
 26,053,270
Transfers out (a) (10,618,125) 
 
 (10,618,125)
Accretion of OID 729,711
 
 
 729,711
Net unrealized appreciation (depreciation) (2,158,707) (2,230,257) (1,209,247) (5,598,211)
Net realized gains (losses) 
 
 1,375,587
 1,375,587
Fair value as of March 31, 2019 $202,259,541
 $56,017,403
 $252,998
 $258,529,942
Net unrealized appreciation (depreciation) relating to Level 3 assets still held as of March 31, 2019 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the six months ended March 31, 2019 $(2,376,135) $(3,915,242) $6,359
 $(6,285,018)
__________ 
(a)There were transfers in/out of Level 3 from/to Level 2 for certain investments during the six months ended March 31, 2019 as a result of a change in the number of market quotes available and/or a change in market liquidity.



OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Significant Unobservable Inputs for Level 3 Investments
The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value as of DecemberMarch 31, 2017:2020:
Asset Fair Value Valuation Technique Unobservable Input Range 
Weighted
Average (c)
Senior secured debt $177,181,455
 Market yield technique Market yield (a)6.4%-14.4% 8.9%
  6,301,585
 Enterprise value technique Revenue multiple (b)0.1x-0.6x 0.5x
  50,000
 Enterprise value technique EBITDA multiple (b)6.6x-7.6x 7.1x
  23,279,853
 Transactions precedent technique Transaction price (d)N/A-N/A N/A
  25,286,668
 Market quotations Broker quoted price (e)N/A-N/A N/A
Glick JV subordinated notes 57,180,650
 Enterprise value technique N/A (f)N/A-N/A N/A
Preferred & Common Equity 642,057
 Enterprise value technique Revenue multiple (b)0.1x-3.0x 3.0x
  586,362
 Enterprise value technique EBITDA multiple (b)15.0x-16.0x 15.5x
Total $290,508,630
           
Asset Fair Value Valuation Technique Unobservable Input Range 
Weighted
Average (a)
Senior Secured Loans $116,844,193
 Market Yield Market Yield (b)6.6%-14.6% 10.2%
  66,943,720
 Broker Quotations Broker Quoted Price (c)N/A-N/A N/A
  20,109,342
 Enterprise Value EBITDA Multiple (d)4.4x-6.4x 5.4x
  7,464,145
 Transactions Precedent Transaction Price (e)N/A-N/A N/A
OCSI Glick JV Subordinated Notes 37,833,930
 Enterprise Value N/A (f)N/A-N/A N/A
Total $249,195,330
           
_____________________
(a) Weighted averages are calculated based on fair value of investments.
(b) Used when market participantparticipants would take into account market yield when pricing the investment.
(b) Used when market participant would use such multiples when pricing the investment.
(c) Weighted averages are calculated based on fair value of investments.
(d) Used when there is an observable transaction or pending event for the investment.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(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 suchCompany evaluates the quotations provided by pricing vendors and brokers based on available market information, which may include the market yield technique and a quantitative and qualitative assessmentincluding trading activity of the credit quality and market trends affecting the portfolio company.subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.
(d) Used when market participants would use such multiples when pricing the Investment Adviser.investment.
(e) Used when there is an observable transaction or pending event for the investment.
(f) The Company determined the value of its subordinated notes of the OCSI Glick JV based on the total assets less the total liabilities senior to the subordinated notes held at the OCSI Glick JV in an amount not exceeding par under the enterprise valueEV technique.
Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities 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 value technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities as of December 31, 2017 is the earnings before interest, taxes, depreciation and amortization ("EBITDA")/Revenue multiple. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.

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, 2017:2019:
Asset Fair Value Valuation Technique Unobservable Input Range 
Weighted
Average (c)
Senior secured debt $208,118,444
 Market yield technique Capital structure premium (a)0.0%-2.0% 0.2%
      Tranche specific risk premium / (discount) (a)(3.1)%-8.0% 0.2%
      Size premium (a)0.0%-1.5% 0.7%
      Industry premium / (discount) (a)(1.1)%-2.6% 0.0%
  23,192,266
 Enterprise value technique EBITDA multiple (b)5.9x-6.9x 6.4x
  6,242,550
 Enterprise value technique Revenue multiple (b)0.2x-0.6x 0.5x
  20,070,000
 Transactions precedent technique Transaction price (d)N/A-N/A N/A
  168,997,196
 Market quotations Broker quoted price (e)N/A-N/A N/A
Glick JV subordinated notes 57,606,674
 Enterprise value technique N/A (f)N/A-N/A N/A
Preferred & Common Equity 1,059,989
 Enterprise value technique EBITDA multiple (b)0.2x-15.5x 8.1x
Total $485,287,119
           
Asset Fair Value Valuation Technique Unobservable Input Range 
Weighted
Average (a)
Senior Secured Loans $92,083,082
 Market Yield Market Yield (b)6.7%-13.0% 8.9%
  67,340,586
 Broker Quotations Broker Quoted Price (c)N/A-N/A N/A
  20,960,795
 Enterprise Value EBITDA Multiple (d)4.2x-6.2x 5.2x
  1,500,000
 Transactions Precedent Transaction Price (e)N/A-N/A N/A
OCSI Glick JV Subordinated Notes 54,326,418
 Enterprise Value N/A (f)N/A-N/A N/A
Equity Securities 293,339
 Enterprise Value EBITDA Multiple (d)16.0x-18.0x 17.0x
Total $236,504,220
           
_____________________
(a) Used when market participant would take into account this premium or discount when pricing the investment 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.
(d)(b) Used when there is an observable transaction or pending event formarket participants would take into account market yield when pricing the investment.
(e)(c) 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 suchCompany evaluates the quotations provided by pricing vendors and brokers based on available market information, which may include the market yield technique and a quantitative and qualitative assessmentincluding trading activity of the credit quality and market trends affecting the portfolio company.subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.
(d) Used when market participants would use such multiples when pricing the Investment Adviser.investment.
(e) Used when there is an observable transaction or pending event for the investment.
(f) The Company determined the value of its subordinated notes of the OCSI Glick JV based on the total assets less the total liabilities senior to the subordinated notes held at the OCSI Glick JV in an amount not exceeding par under the enterprise valueEV technique.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under the market yield technique, the significant unobservable inputsinput used in the fair value measurement of the Company's investments in debt securities as of September 30, 2017 are capital structure premium, tranche specific risk premium (discount), size premium and industry premium (discount).is the market yield. Increases or decreases in any of those inputs in isolationthe market yield may result in a lower or higher fair value measurement, respectively.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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.earnings before interest, taxes, depreciation and amortization ("EBITDA"), revenue or asset multiple, as applicable. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.
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 DecemberMarch 31, 20172020 and the level of each financial liability within the fair value hierarchy: 
  
Carrying
 Value
 Fair Value Level 1 Level 2 Level 3
Citibank facility payable $70,056,800
 $70,056,800
 $
 $
 $70,056,800
East West Bank facility payable 4,000,000
 4,000,000
 
 
 4,000,000
Notes payable (net of unamortized financing costs) 177,848,395
 180,000,000
 
 
 180,000,000
Total $251,905,195
 $254,056,800
 $
 $

$254,056,800
  
Carrying
 Value
 Fair Value Level 1 Level 2 Level 3
Citibank Facility payable $129,056,800
 $129,056,800
 $
 $
 $129,056,800
East West Bank Facility payable 22,500,000
 22,500,000
 
 
 22,500,000
Deutsche Bank Facility payable 175,600,000
 175,600,000
 
 
 175,600,000
Total $327,156,800
 $327,156,800
 $
 $

$327,156,800

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, 20172019 and the level of each financial liability within the fair value hierarchy:
  
Carrying
 Value
 Fair Value Level 1 Level 2 Level 3
Citibank facility payable $76,456,800
 $76,456,800
 $
 $
 $76,456,800
East West Bank facility payable 6,500,000
 6,500,000
 
 
 6,500,000
Notes payable (net of unamortized financing costs) 177,775,868
 180,000,000
 
 
 180,000,000
Total $260,732,668
 $262,956,800
 $
 $
 $262,956,800
  
Carrying
 Value
 Fair Value Level 1 Level 2 Level 3
Citibank Facility payable $126,056,800
 $126,056,800
 $
 $
 $126,056,800
East West Bank Facility payable 11,000,000
 11,000,000
 
 
 11,000,000
Deutsche Bank Facility payable 157,600,000
 157,600,000
 
 
 157,600,000
Total $294,656,800
 $294,656,800
 $
 $
 $294,656,800
The principal values of the credit facilities payable and notes payable approximate their fair values due to their variable interest rates and are included in Level 3 of the hierarchy.

Portfolio Composition
 Summaries of the composition of the Company's investment portfolio at cost as a percentage of total investments and at fair value as a percentage of total investments and total net assets are shown in the following tables:
 
  December 31, 2017 September 30, 2017
Cost:    % of Total Investments    % of Total Investments
Senior secured debt $502,318,893
 85.97% $523,384,267
 86.50%
Subordinated notes of Glick JV 64,524,032
 11.04% 64,228,881
 10.61%
LLC equity interests of Glick JV 7,111,751
 1.22% 7,111,751
 1.18%
Purchased equity 10,365,422
 1.77% 10,365,425
 1.71%
Total $584,320,098
 100.00% $605,090,324
 100.00%
  March 31, 2020 September 30, 2019
Cost:    % of Total Investments    % of Total Investments
Senior secured loans $546,774,334
 88.20% $553,679,070
 88.33%
OCSI Glick JV subordinated notes 66,045,552
 10.65% 66,077,913
 10.54%
OCSI Glick JV equity interests 7,111,751
 1.15% 7,111,751
 1.13%
Equity securities, excluding the OCSI Glick JV 
 
 
 
Total $619,931,637
 100.00% $626,868,734
 100.00%
  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 $482,999,264
 89.21% 166.58% $501,769,997
 89.53% 170.87%
Subordinated notes of Glick JV 57,180,650
 10.56% 19.72% 57,606,674
 10.28% 19.62%
LLC equity interests of Glick JV 
 
 
 
 
 
Purchased equity 1,228,419
 0.23% 0.42% 1,059,989
 0.19% 0.36%
Total $541,408,333
 100.00% 186.72% $560,436,660
 100.00% 190.85%

  March 31, 2020 September 30, 2019
Fair Value:    % of Total Investments % of Net Assets    % of Total Investments % of Net Assets
Senior secured loans $486,545,381
 92.79% 230.33% $542,484,690
 90.85% 190.70%
OCSI Glick JV subordinated notes 37,833,930
 7.21% 17.91% 54,326,418
 9.10% 19.10%
Equity securities, excluding the OCSI Glick JV 
 
 
 293,339
 0.05% 0.10%
OCSI Glick JV equity interests 
 
 
 
 
 
Total $524,379,311
 100.00% 248.24% $597,104,447
 100.00% 209.90%
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


The Company primarily invests in portfolio companies located in North America. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's business. The following tables show the composition of the Company's portfolio composition by geographic region at cost as a percentage of total investments and at fair value as a percentage of total investments and total net assets:
  December 31, 2017 September 30, 2017
Cost:    % of Total Investments    % of Total Investments
 Northeast U.S. $207,356,367
 35.49% $217,508,260
 35.94%
 Midwest U.S. 97,192,327
 16.63% 115,147,194
 19.03%
 Southeast U.S. 91,706,668
 15.69% 89,214,997
 14.74%
 West U.S. 80,786,530
 13.83% 74,469,039
 12.31%
 Southwest U.S. 74,137,676
 12.69% 101,583,440
 16.79%
 International 29,344,544
 5.02% 3,367,510
 0.56%
 Northwest U.S. 3,795,986
 0.65% 3,799,884
 0.63%
Total $584,320,098
 100.00% $605,090,324
 100.00%
  March 31, 2020 September 30, 2019
Cost:    % of Total Investments    % of Total Investments
Northeast $192,233,585
 31.00% $163,840,735
 26.13%
West 137,853,962
 22.24% 156,427,384
 24.95%
Midwest 101,026,267
 16.30% 90,085,074
 14.37%
Southwest 67,150,144
 10.83% 94,396,340
 15.06%
International 51,531,149
 8.31% 40,156,268
 6.41%
Southeast 40,545,357
 6.54% 65,420,955
 10.44%
South 19,081,127
 3.08% 6,051,218
 0.97%
Northwest 10,510,046
 1.70% 10,490,760
 1.67%
Total $619,931,637
 100.00% $626,868,734
 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. $166,617,795
 30.78% 57.46% $173,667,526
 30.99% 59.14%
 Midwest U.S. 96,960,068
 17.91% 33.44% 115,780,284
 20.66% 39.43%
 Southeast U.S. 91,006,722
 16.81% 31.39% 89,246,247
 15.92% 30.39%
 West U.S. 81,420,045
 15.04% 28.08% 75,054,066
 13.39% 25.56%
 Southwest U.S. 72,117,431
 13.32% 24.87% 99,398,397
 17.74% 33.85%
 International 29,418,070
 5.43% 10.15% 3,406,258
 0.61% 1.16%
 Northwest U.S. 3,868,202
 0.71% 1.33% 3,883,882
 0.69% 1.32%
Total $541,408,333
 100.00% 186.72% $560,436,660
 100.00% 190.85%
  March 31, 2020 September 30, 2019
Fair Value:    % of Total Investments % of Net Assets    % of Total Investments % of Net Assets
Northeast $146,988,094
 28.03% 69.53% $145,176,830
 24.31% 51.04%
West 123,896,140
 23.63% 58.67% 154,984,247
 25.95% 54.46%
Midwest 85,039,060
 16.22% 40.27% 88,834,091
 14.88% 31.24%
Southwest 59,508,868
 11.35% 28.18% 90,401,243
 15.14% 31.78%
International 45,793,681
 8.73% 21.67% 38,583,801
 6.46% 13.56%
Southeast 35,665,206
 6.80% 16.91% 62,741,930
 10.51% 22.06%
South 17,329,472
 3.30% 8.20% 5,899,007
 0.99% 2.07%
Northwest 10,158,790
 1.94% 4.81% 10,483,298
 1.76% 3.69%
Total $524,379,311
 100.00% 248.24% $597,104,447
 100.00% 209.90%

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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 DecemberMarch 31, 20172020 and September 30, 2017 was as follows:2019:
 December 31, 2017 September 30, 2017
Cost:   % of Total Investments    % of Total Investments
 Internet software & services$124,795,435
 21.35% $129,816,292
 21.46%
 Multi-sector holdings (1)71,635,783
 12.26
 71,340,632
 11.79
 Healthcare services50,305,151
 8.61
 50,858,157
 8.41
 Advertising34,366,916
 5.88
 43,518,443
 7.19
 Diversified support services24,131,898
 4.13
 24,189,607
 4.00
 Human resources & employment services23,042,044
 3.94
 20,141,957
 3.33
 Integrated telecommunication services16,934,464
 2.90
 11,291,073
 1.87
 IT consulting & other services15,998,982
 2.74
 20,485,989
 3.39
 Aerospace & defense15,437,617
 2.64
 6,453,287
 1.07
 Specialized finance15,300,770
 2.62
 15,358,280
 2.54
 Communications equipment14,812,970
 2.54
 
 
 Research & consulting services14,575,531
 2.49
 6,922,777
 1.14
 Environmental & facilities services14,140,224
 2.42
 14,170,031
 2.34
 Oil & gas equipment & services14,019,903
 2.40
 14,057,018
 2.32
 Commercial printing11,808,469
 2.02
 11,847,790
 1.96
 Commodity chemicals9,991,297
 1.71
 
 
 Oil & gas exploration & production9,913,159
 1.70
 
 
 Alternative carriers9,743,750
 1.67
 
 
 Distributors8,602,200
 1.47
 12,967,500
 2.14
 Pharmaceuticals8,457,500
 1.45
 9,068,650
 1.50
 Trucking8,152,865
 1.40
 4,079,548
 0.67
 Security & alarm services7,995,399
 1.37
 8,018,318
 1.33
 Food retail7,565,523
 1.29
 10,054,868
 1.66
 Personal products6,542,497
 1.12
 6,544,450
 1.08
 Auto parts & equipment5,856,507
 1.00
 5,871,777
 0.97
 Data processing & outsourced services5,807,585
 0.99
 9,804,174
 1.62
 Household Products5,037,500
 0.86
 
 
 Healthcare distributors4,963,329
 0.85
 4,975,000
 0.82
 Specialized REITs4,841,845
 0.83
 
 
 Housewares & specialties4,781,391
 0.82
 4,795,075
 0.79
 Drug retail4,030,000
 0.69
 
 
 Industrial machinery3,776,203
 0.65
 12,493,405
 2.06
 Specialty stores2,977,500
 0.51
 8,359,086
 1.38
 General merchandise stores1,820,550
 0.31
 
 
 Specialized consumer services1,657,341
 0.28
 1,660,679
 0.27
 Application software500,000
 0.09
 33,801,616
 5.59
 Real estate services
 
 12,247,424
 2.02
 Computer & electronics retail
 
 7,383,862
 1.22
 Casinos & gaming
 
 4,963,767
 0.82
 Fertilizers & agricultural chemicals
 
 3,273,753
 0.54
 Hypermarkets & super centers
 
 2,996,051
 0.50
 Computer hardware
 
 1,279,988
 0.21
Total$584,320,098
 100.00%
$605,090,324
 100.00%
 March 31, 2020 September 30, 2019
Cost:   % of Total Investments    % of Total Investments
Application Software$86,187,677
 13.91% $81,483,953
 12.98%
Multi-Sector Holdings (1)73,157,303
 11.80
 73,189,664
 11.68
Diversified Support Services31,633,647
 5.10
 27,474,583
 4.38
Aerospace & Defense31,412,390
 5.07
 32,851,441
 5.24
Advertising23,928,301
 3.86
 24,102,621
 3.84
Alternative Carriers20,971,872
 3.38
 16,926,483
 2.70
Oil & Gas Storage & Transportation20,484,121
 3.30
 558,657
 0.09
Personal Products18,866,318
 3.04
 2,985,000
 0.48
Internet Services & Infrastructure18,815,017
 3.04
 28,457,280
 4.54
Systems Software17,941,122
 2.89
 15,530,330
 2.48
Commercial Printing15,412,983
 2.49
 15,457,725
 2.47
Integrated Telecommunication Services14,121,306
 2.28
 17,406,502
 2.78
Industrial Machinery13,363,313
 2.16
 9,319,898
 1.49
Data Processing & Outsourced Services13,319,356
 2.15
 16,648,375
 2.66
Health Care Services13,135,580
 2.12
 17,175,085
 2.74
Specialized Finance12,675,035
 2.04
 15,215,979
 2.43
Research & Consulting Services12,360,004
 1.99
 9,887,627
 1.58
Publishing12,229,024
 1.97
 10,291,050
 1.64
Health Care Technology11,790,195
 1.90
 10,897,989
 1.74
Oil & Gas Refining & Marketing11,775,621
 1.90
 11,832,244
 1.89
Communications Equipment11,692,811
 1.89
 9,740,555
 1.55
Metal & Glass Containers11,679,529
 1.88
 8,850,147
 1.41
Movies & Entertainment11,358,314
 1.83
 9,656,395
 1.54
Specialty Chemicals10,167,012
 1.64
 4,686,365
 0.75
Real Estate Services9,794,418
 1.58
 9,832,986
 1.57
Leisure Facilities9,364,520
 1.51
 8,992,137
 1.43
Trading Companies & Distributors8,882,968
 1.43
 8,943,835
 1.43
Distributors8,702,030
 1.40
 
 
Biotechnology7,910,150
 1.28
 7,930,000
 1.27
Interactive Media & Services7,867,414
 1.27
 11,821,820
 1.89
Pharmaceuticals7,042,185
 1.14
 12,626,920
 2.01
Electrical Components & Equipment6,321,716
 1.02
 6,363,049
 1.02
Health Care Supplies5,899,000
 0.95
 
 
Auto Parts & Equipment5,719,294
 0.92
 5,749,771
 0.92
Household Products5,022,188
 0.81
 5,025,753
 0.80
Environmental & Facilities Services4,947,233
 0.80
 4,214,058
 0.67
Independent Power Producers & Energy Traders3,338,405
 0.54
 
 
Construction Materials3,284,014
 0.53
 
 
Managed Health Care2,962,462
 0.48
 
 
Property & Casualty Insurance1,790,444
 0.29
 
 
General Merchandise Stores1,571,755
 0.25
 1,549,641
 0.25
Specialty Stores609,300
 0.10
 
 
Building Products424,290
 0.07
 
 
Oil & Gas Exploration & Production
 
 14,662,039
 2.34
Computer & Electronics Retail
 
 10,808,325
 1.72
IT Consulting & Other Services
 
 9,683,496
 1.54
Health Care Equipment
 
 8,887,725
 1.42
Specialized REITs
 
 8,642,094
 1.38
Human Resource & Employment Services
 
 8,099,807
 1.29
Household Appliances
 
 6,857,242
 1.09
Commodity Chemicals
 
 4,920,165
 0.78
Oil & Gas Equipment & Services
 
 631,923
 0.10
Total$619,931,637
 100.00%
$626,868,734
 100.00%
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


 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$117,058,015
 21.64% 40.36% $121,778,922
 21.72% 41.43%
 Multi-sector holdings (1)57,180,650
 10.56
 19.72
 57,606,674
 10.28
 19.62
 Healthcare services32,951,225
 6.09
 11.36
 29,525,697
 5.27
 10.06
 Advertising32,023,541
 5.91
 11.04
 41,145,973
 7.34
 14.01
 Diversified support services24,627,767
 4.55
 8.49
 24,655,181
 4.40
 8.40
 Human resources & employment services23,143,302
 4.27
 7.98
 20,125,090
 3.59
 6.85
 Integrated telecommunication services15,790,242
 2.92
 5.45
 11,368,765
 2.03
 3.87
 Aerospace & defense15,545,729
 2.87
 5.36
 6,556,692
 1.17
 2.23
 Specialized finance15,523,936
 2.87
 5.35
 15,609,084
 2.79
 5.32
 Research & consulting services14,868,862
 2.75
 5.13
 7,004,638
 1.25
 2.39
 IT consulting & other services14,823,041
 2.74
 5.11
 20,488,238
 3.66
 6.98
 Communications equipment14,789,100
 2.73
 5.10
 
 
 
 Environmental & facilities services14,251,368
 2.63
 4.92
 14,287,163
 2.55
 4.87
 Oil & gas equipment & services14,085,029
 2.60
 4.86
 14,052,500
 2.51
 4.79
 Commercial printing11,988,412
 2.21
 4.13
 11,942,132
 2.13
 4.07
 Commodity chemicals10,059,400
 1.86
 3.47
 
 
 
 Oil & gas exploration & production9,925,000
 1.83
 3.42
 
 
 
 Alternative carriers9,737,500
 1.80
 3.36
 
 
 
 Pharmaceuticals8,542,500
 1.58
 2.95
 9,038,634
 1.61
 3.08
 Distributors8,471,020
 1.56
 2.92
 12,957,035
 2.31
 4.41
 Trucking8,159,262
 1.51
 2.81
 4,099,725
 0.73
 1.40
 Security & alarm services7,908,513
 1.46
 2.73
 7,972,286
 1.42
 2.72
 Food retail7,620,697
 1.41
 2.63
 10,182,584
 1.82
 3.47
 Personal products6,608,509
 1.22
 2.28
 6,599,006
 1.18
 2.25
 Auto parts & equipment5,850,878
 1.08
 2.02
 5,798,747
 1.03
 1.97
 Data processing & outsourced services5,843,475
 1.08
 2.02
 9,840,600
 1.76
 3.35
 Household products5,040,000
 0.93
 1.74
 
 
 
 Healthcare distributors4,837,875
 0.89
 1.67
 4,948,950
 0.88
 1.69
 Specialized REITs4,830,003
 0.89
 1.67
 
 
 
 Housewares & specialties4,783,540
 0.88
 1.65
 4,771,779
 0.85
 1.63
 Drug retail4,018,340
 0.74
 1.39
 
 
 
 Industrial machinery3,662,917
 0.68
 1.26
 12,452,459
 2.22
 4.24
 Specialty stores3,004,020
 0.55
 1.04
 8,193,960
 1.46
 2.79
 General merchandise stores1,945,809
 0.36
 0.67
 
 
 
 Specialized consumer services1,669,765
 0.31
 0.58
 1,672,677
 0.30
 0.57
 Application software239,091
 0.04
 0.08
 33,966,141
 6.06
 11.57
 Real estate services
 
 
 12,256,098
 2.19
 4.17
 Computer & electronics retail
 
 
 7,498,142
 1.34
 2.55
 Casinos & gaming
 
 
 5,038,622
 0.90
 1.72
 Hypermarkets & super centers
 
 
 2,876,002
 0.51
 0.98
 Fertilizers & agricultural chemicals
 
 
 2,801,481
 0.50
 0.95
 Computer hardware
 
 
 1,324,983
 0.24
 0.45
Total$541,408,333
 100.00% 186.72% $560,436,660
 100.00% 190.85%
 March 31, 2020 September 30, 2019
Fair Value:   % of Total Investments % of Net Assets    % of Total Investments % of Net Assets
Application Software$78,401,128
 14.98% 37.08% $80,958,933
 13.52% 28.46%
Multi-Sector Holdings (1)37,833,930
 7.21
 17.91
 54,326,418
 9.10
 19.10
Diversified Support Services28,714,017
 5.48
 13.60
 27,311,758
 4.57
 9.62
Aerospace & Defense28,085,107
 5.36
 13.31
 32,504,494
 5.44
 11.42
Advertising20,109,342
 3.83
 9.52
 20,960,795
 3.51
 7.37
Personal Products18,147,262
 3.46
 8.58
 3,017,820
 0.51
 1.06
Alternative Carriers17,834,666
 3.40
 8.45
 16,958,629
 2.84
 5.97
Internet Services & Infrastructure17,342,530
 3.31
 8.21
 28,470,497
 4.77
 10.01
Systems Software16,211,212
 3.09
 7.68
 15,466,728
 2.59
 5.43
Oil & Gas Storage & Transportation16,147,778
 3.08
 7.64
 556,541
 0.09
 0.20
Commercial Printing13,982,323
 2.67
 6.62
 15,377,480
 2.58
 5.41
Integrated Telecommunication Services12,654,497
 2.41
 5.99
 17,138,851
 2.87
 6.03
Data Processing & Outsourced Services11,869,158
 2.26
 5.63
 16,757,043
 2.81
 5.89
Industrial Machinery11,763,868
 2.24
 5.57
 9,206,556
 1.54
 3.24
Specialized Finance11,689,118
 2.23
 5.52
 14,473,206
 2.42
 5.09
Health Care Technology11,296,682
 2.15
 5.35
 11,032,320
 1.85
 3.88
Health Care Services11,289,795
 2.15
 5.35
 17,176,083
 2.88
 6.03
Publishing10,918,631
 2.08
 5.17
 10,421,039
 1.75
 3.66
Research & Consulting Services10,908,370
 2.08
 5.17
 10,267,889
 1.72
 3.61
Oil & Gas Refining & Marketing10,808,775
 2.06
 5.12
 11,970,818
 2.00
 4.21
Communications Equipment10,531,412
 2.01
 4.98
 9,361,407
 1.57
 3.29
Movies & Entertainment9,587,156
 1.83
 4.54
 9,616,125
 1.61
 3.38
Metal & Glass Containers9,514,568
 1.81
 4.51
 8,387,578
 1.40
 2.95
Real Estate Services8,684,375
 1.66
 4.11
 9,875,250
 1.65
 3.47
Specialty Chemicals8,633,836
 1.65
 4.09
 3,687,132
 0.62
 1.30
Leisure Facilities8,437,604
 1.61
 4.00
 8,979,519
 1.50
 3.16
Trading Companies & Distributors7,568,544
 1.44
 3.58
 8,929,919
 1.50
 3.14
Biotechnology7,561,000
 1.44
 3.58
 8,040,000
 1.35
 2.82
Distributors7,302,014
 1.39
 3.46
 
 
 
Interactive Media & Services6,912,500
 1.32
 3.27
 11,880,796
 1.99
 4.17
Pharmaceuticals6,258,388
 1.19
 2.96
 12,082,358
 2.02
 4.25
Electrical Components & Equipment5,455,377
 1.04
 2.58
 6,009,639
 1.01
 2.11
Health Care Supplies5,213,120
 0.99
 2.47
 
 
 
Environmental & Facilities Services4,547,986
 0.87
 2.16
 3,975,425
 0.67
 1.40
Household Products4,522,925
 0.86
 2.14
 4,756,250
 0.80
 1.67
Auto Parts & Equipment4,402,811
 0.84
 2.08
 5,385,930
 0.90
 1.89
Construction Materials3,288,458
 0.63
 1.56
 
 
 
Independent Power Producers & Energy Traders3,218,670
 0.61
 1.52
 
 
 
Managed Health Care2,581,894
 0.49
 1.22
 
 
 
Property & Casualty Insurance1,925,102
 0.37
 0.91
 
 
 
General Merchandise Stores1,169,227
 0.22
 0.55
 1,425,618
 0.24
 0.50
Specialty Stores651,024
 0.12
 0.31
 
 
 
Building Products403,131
 0.08
 0.19
 
 
 
Oil & Gas Exploration & Production
 
 
 13,947,600
 2.34
 4.90
Computer & Electronics Retail
 
 
 10,781,031
 1.81
 3.79
Health Care Equipment
 
 
 8,994,333
 1.51
 3.16
Specialized REITs
 
 
 8,648,021
 1.45
 3.04
Human Resource & Employment Services
 
 
 8,008,543
 1.34
 2.81
IT Consulting & Other Services
 
 
 7,974,500
 1.34
 2.80
Household Appliances
 
 
 6,661,922
 1.12
 2.34
Commodity Chemicals
 
 
 4,931,156
 0.83
 1.73
Oil & Gas Equipment & Services
 
 
 410,497
 0.07
 0.14
Total$524,379,311
 100.00% 248.24% $597,104,447
 100.00% 209.90%
___________________
(1)This industry includes the Company's investment in the OCSI Glick JV.


OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




The Company's investments are generally in middle-market companies in a variety of industries. The Company has oneNo investment that represented greater than 10% of the total investment portfolio at fair value as of Decembereach of March 31, 20172020 and September 30, 2017, which is as follows:
  December 31, 2017 September 30, 2017
Glick JV LLC 10.6% 10.3%

2019. Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses, can fluctuate upon repayment or sale of an investment and in any given period can be highly concentrated among several investments. Details of investment income of the Glick JV for the three months ended December 31, 2017 and December 31, 2016 are as follows:
  Three months ended December 31, 2017 Three months ended December 31, 2016
  Investment Income Percent of Total Investment Income Investment Income Percent of Total Investment Income
Glick JV LLC $1,493,848
 13.9% $1,582,856
 13.7%

OCSI Glick JV
In October 2014, the Company entered into an LLC agreement with GF Equity Funding 2014 LLC ("GF Equity Funding") to form the OCSI Glick JV. On April 21, 2015, the OCSI Glick JV began investing primarily in senior secured loans of middle-market companies. The Company co-invests in these securities with GF Equity Funding through the OCSI Glick JV. The OCSI Glick JV is managed by a four person boardBoard of directors,Directors, two of whom are selected by the Company and two of whom are selected by GF Equity Funding. The OCSI Glick JV is capitalized as transactions are completed, and portfolio decisions and investment decisions in respect of the OCSI Glick JV must be approved by the OCSI 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 OCSI Glick JV, the Company does not consolidate the OCSI Glick JV. The members provide capital to the OCSI 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 OCSI Glick JV in exchange for subordinated notes (the "Subordinated Notes"). As of DecemberMarch 31, 20172020 and September 30, 2017,2019, 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 Subordinated Notes. The OCSI Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the 1940Investment Company Act.
The OCSI Glick JV's portfolio consisted of middle-market and other corporate debt securities of 2544 and 23 "eligible39 portfolio companies" (as defined in Section 2(a)(46) of the 1940 Act)companies as of DecemberMarch 31, 20172020 and September 30, 2017,2019, respectively. The portfolio companies in the OCSI Glick JV are in industries similar to those in which the Company may invest directly.
The OCSI Glick JV hasentered into a senior revolving credit facility with Deutsche Bank AG, New York Branch ("(the "JV Deutsche Bank facility"Facility") with, which, as of March 31, 2020, had a statedreinvestment period end date and maturity date of April 17, 2023, whichSeptember 29, 2020 and March 29, 2024, respectively, and permitted borrowings of up to $200.0$125.0 million of borrowings as of both December 31, 2017(subject to borrowing base and September 30, 2017.other limitations). Borrowings under the JV Deutsche Bank facilityFacility are secured by all of the assets of the OCSI Glick JV and all of the equity interests in the OCSI Glick JV and, as of March 31, 2020, bore interest at a rate equal to the 3-month LIBOR plus 2.5%1.95% per annum with no LIBOR floor as of December 31, 2017 and September 30, 2017.floor. Under the JV Deutsche Bank facility, $56.9Facility, $98.2 million and $91.9 million of borrowings were outstanding as of each of DecemberMarch 31, 20172020 and September 30, 2017,2019, respectively.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the OCSI Glick JV had total assets of $151.5$153.2 million and $126.7$179.7 million, respectively. As of DecemberMarch 31, 2017,2020, the Company's investment in the OCSI Glick JV consisted of LLC equity interests and Subordinated Notes of $57.2$37.8 million in the aggregate at fair value. As of September 30, 2017,2019, the Company's investment in the OCSI Glick JV consisted of LLC equity interests and Subordinated Notes of $57.6$54.3 million in the aggregate at fair value. The Subordinated Notes are junior in right of payment to the repayment of temporary contributions made by the Company to fund investments of the OCSI Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Subordinated Notes, respectively.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the OCSI 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 $81.9 million and $81.6$84.0 million in aggregate commitments were funded as of Decembereach of March 31, 20172020 and September 30, 2017, respectively,2019, of which $71.7$73.5 million and $71.4 million, respectively, was from the Company. As of each of DecemberMarch 31, 20172020 and September 30, 2017,2019, the Company had commitments to fund Subordinated Notes to the OCSI Glick JV of $78.8 million, of which $14.2$12.4 million were unfunded as of each such date. As of each of March 31, 2020 and September 30, 2019, the Company had commitments to fund LLC equity interests in the OCSI Glick JV of $8.7 million, of which $1.6 million were unfunded.

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


and $14.5 million, respectively, was unfunded. As of each of December 31, 2017 and September 30, 2017, the Company had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million was unfunded.
Below is a summary of the OCSI Glick JV's portfolio, followed by a listing of the individual loans in the OCSI Glick JV's portfolio as of DecemberMarch 31, 20172020 and September 30, 2017:2019:
 December 31, 2017 September 30, 2017 March 31, 2020 September 30, 2019
Senior secured loans (1) $128,805,001 $115,964,537 $164,687,221 $177,911,560
Weighted average current interest rate on senior secured loans (2) 7.02% 6.92% 5.63% 6.92%
Number of borrowers in Glick JV 25 23
Number of borrowers in the OCSI Glick JV 44 39
Largest loan exposure to a single borrower (1) $8,597,150 $11,267,524 $6,994,829 $7,425,000
Total of five largest loan exposures to borrowers (1) $38,912,938 $42,833,696 $32,459,829 $34,662,500
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans.loans at fair value.


OCSI Glick JV Portfolio as of March 31, 2020
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
AI Convoy (Luxembourg) S.À.R.L.First Lien Term Loan, LIBOR+3.50% cash due 1/18/20275.34%Aerospace & Defense$3,800,000
 $3,781,000
 $3,410,500
 
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20255.49%Electrical Components & Equipment2,695,355
 2,634,049
 2,273,074
(4)
AI Plex US Acquico LLCFirst Lien Term Loan, LIBOR+5.00% cash due 7/31/20265.99%Commodity Chemicals1,994,987
 1,728,773
 1,416,441
 
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.70%Integrated Telecommunication Services3,117,500
 3,038,067
 2,985,006
(4)
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.32%Pharmaceuticals6,994,829
 6,782,076
 6,085,500
 
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/20255.20%Personal Products1,693,108
 1,399,248
 987,827
 
Ancile Solutions, Inc.First Lien Term Loan, LIBOR+7.00% cash due 6/30/20218.45%Application Software3,298,363
 3,286,170
 3,215,904
(4)
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00%Airport Services3,750,000
 3,659,880
 3,525,563
 
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.92%Oil & Gas Equipment & Services4,912,500
 4,894,451
 2,591,344
 
California Pizza Kitchen, Inc.First Lien Term Loan, LIBOR+6.00% cash due 8/23/2022 Restaurants4,825,000
 4,813,378
 2,439,641
(6)
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+5.00% cash due 3/28/20246.00%Oil & Gas Refining & Marketing3,960,000
 3,920,400
 3,504,600
(4)
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.49%Alternative Carriers5,155,000
 5,037,149
 4,156,219
(4)
Covia Holdings CorporationFirst Lien Term Loan, LIBOR+4.00% cash due 6/1/2025 Oil & Gas Equipment & Services6,877,500
 6,877,500
 3,255,224
(6)
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+4.00% cash due 7/9/20265.07%Biotechnology4,975,000
 4,937,688
 4,726,250
(4)
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.95%Application Software2,500,000
 2,475,000
 2,217,500
(4)
Frontier Communications CorporationFirst Lien Term Loan, LIBOR+3.75% cash due 6/15/20245.21%Integrated Telecommunication Services3,947,925
 3,883,828
 3,773,347
 
GFL Environmental Inc.First Lien Term Loan, LIBOR+3.00% cash due 5/30/20254.00%Environmental & Facilities Services303,000
 279,604
 295,299
(4)
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20245.25%Systems Software5,865,300
 5,825,375
 5,044,158
 
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Glick JV Portfolio as of December 31, 2017
Portfolio Company Industry Investment Type Maturity Date Current Interest Rate (1)(4)  Cash Interest Rate (1) Principal Cost Fair Value (2)
 Ameritox Ltd. (3)(5)  Healthcare services First Lien Term Loan 4/11/2021 LIBOR+5% (1% floor) cash 3% PIK 6.69% $2,353,200
 $2,243,202
 $286,374
   Healthcare services 119,910.76 Class B Preferred Units       

 119,911
 
   Healthcare services 368.96 Class A Common Units       

 2,174,034
 
 Total Ameritox Ltd.           2,353,200
 4,537,147
 286,374
 Compuware Corporation (3)  Internet software & services First Lien Term Loan B3 12/15/2021 LIBOR+4.25% (1% floor) cash 5.63% 6,263,981
 6,212,998
 6,312,934
 Metamorph US 3, LLC (3)(5)  Internet software & services First Lien Term Loan 12/1/2020 LIBOR+5.5% (1% floor) cash 2% PIK 7.07% 6,806,211
 6,306,815
 2,584,318
 Motion Recruitment Partners LLC (3)  Human resources & employment services First Lien Term Loan 2/13/2020 LIBOR+6% (1% floor) cash 7.57% 8,597,150
 8,597,146
 8,605,596
 NAVEX Global, Inc.  Internet software & services First Lien Term Loan 11/19/2021 LIBOR+4.25% (1% floor) cash 5.82% 2,969,388
 2,960,727
 2,984,250
 Air Newco LLC  IT consulting & other services First Lien Term Loan B 3/20/2022 LIBOR+5.5% (1% floor) cash 6.94% 8,139,577
 8,121,549
 8,088,704
 CM Delaware LLC  Advertising First Lien Term Loan 3/18/2021 LIBOR+5.25% (1% floor) cash 6.94% 2,069,786
 2,068,356
 2,018,041
 Central Security Group, Inc. (3)  Specialized consumer services First Lien Term Loan 10/6/2021 LIBOR+5.625% (1% floor) cash 7.19% 3,866,103
 3,870,229
 3,885,433
Aptos, Inc. (3) Data processing & outsourced services First Lien Term Loan B 9/1/2022 LIBOR+6.75% (1% floor) cash 8.44% 7,870,000
 7,747,832
 7,791,300
Vubiquity, Inc. Application software First Lien Term Loan 8/12/2021 LIBOR+5.5% (1% floor) cash 7.19% 4,116,000
 4,089,928
 4,085,130
Novetta Solutions, LLC Diversified support services First Lien Term Loan 10/16/2022 LIBOR+5% (1% floor) cash 6.70% 5,975,734
 5,918,766
 5,813,911
SHO Holding I Corporation Footwear First Lien Term Loan 10/27/2022 LIBOR+5% (1% floor) cash 6.42% 6,370,000
 6,324,741
 6,147,050
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.57% 3,910,000
 3,870,466
 3,909,937
  Environmental & facilities services Incremental Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.57% 1,024,850
 1,004,945
 1,024,833
Total Valet Merger Sub, Inc.           4,934,850
 4,875,411
 4,934,770
RSC Acquisition, Inc. Insurance brokers First Lien Term Loan 11/30/2022 LIBOR+5.25% (1% floor) cash 6.94% 3,920,064
 3,897,948
 3,880,863
Integro Parent Inc. Insurance brokers First Lien Term Loan 10/31/2022 LIBOR+5.75% (1% floor) cash 7.13% 4,901,424
 4,784,962
 4,889,170
TruckPro, LLC Auto parts & equipment First Lien Term Loan 8/6/2018 LIBOR+5% (1% floor) cash 6.69% 1,811,634
 1,810,641
 1,813,409
Falmouth Group Holdings Corp. Specialty chemicals First Lien Term Loan 12/13/2021 LIBOR+6.75% (1% floor) cash 8.44% 4,527,907
 4,491,387
 4,528,532
 Ancile Solutions, Inc. (3)  Internet software & services First Lien Term Loan 6/30/2021 LIBOR+7% (1% floor) cash 8.69% 3,990,530
 3,947,582
 3,954,615
 California Pizza Kitchen, Inc.  Restaurants First Lien Term Loan 8/23/2022 LIBOR+6% (1% floor) cash 7.57% 4,937,500
 4,925,607
 4,851,094
 MHE Intermediate Holdings, LLC (3)  Diversified support services First Lien Term Loan B 3/11/2024 LIBOR+5% (1% floor) cash 6.69% 4,218,125
 4,142,752
 4,218,125
   Diversified support services Delayed Draw Term Loan 3/11/2024 LIBOR+5% (1% floor) cash 6.69% 665,837
 633,517
 665,837
 Total MHE Intermediate Holdings, LLC           4,883,962
 4,776,269
 4,883,962
 Chloe Ox Parent LLC (3)  Healthcare services First Lien Term Loan 12/14/2024 LIBOR+5% (1% floor) cash 6.64% 6,000,000
 5,940,000
 6,022,500
 Gigamon Inc.  Systems software First Lien Term Loan 12/18/2024 LIBOR+4.5% (1% floor) cash 6.03% 6,000,000
 5,940,000
 5,970,000
 Indivior Finance Sarl (3)  Pharmaceuticals First Lien Term Loan 12/19/2022 LIBOR+4.5% (1% floor) cash 6.11% 7,500,000
 7,462,500
 7,537,500
 Tribe Buyer LLC (3)  Human resources & employment services First Lien Term Loan 2/16/2024 LIBOR+4.5% (1% floor) cash 5.68% 6,000,000
 5,985,000
 6,078,750
 Asset International, Inc. (3)  Research & Consulting Services First Lien Term Loan 12/29/2024 LIBOR+4.5% (1% floor) cash 6.19% 4,000,000
 3,920,125
 3,920,000
 Total Portfolio Investments           $128,805,001
 $129,513,666
 $121,868,206
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
Guidehouse LLPSecond Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.99%Research & Consulting Services$5,000,000
 $4,980,867
 $4,325,000
(4)
Helios Software Holdings, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/24/20255.32%Systems Software997,500
 987,525
 859,511
(4)
Houghton Mifflin Harcourt Publishers Inc.First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.24%Education Services2,962,500
 2,850,847
 2,651,438
 
Integro Parent, Inc.First Lien Term Loan, LIBOR+5.75% cash due 10/31/20226.75%Insurance Brokers3,301,120
 3,263,904
 3,027,127
 
Intelsat Jackson Holdings S.A.First Lien Term Loan, LIBOR+3.75% cash due 11/27/20235.68%Alternative Carriers4,380,943
 4,328,294
 4,060,587
(4)
LTI Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 9/6/20254.49%Auto Parts & Equipment2,353,073
 1,896,658
 1,769,711
 
MHE Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 3/8/20246.07%Diversified Support Services4,122,500
 4,073,573
 4,011,209
(4)
MHE Intermediate Holdings, LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/20246.45%Diversified Support Services832,853
 822,601
 810,370
(4)
 Total MHE Intermediate Holdings, LLC   4,955,353
 4,896,174
 4,821,579
 
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.57%Application Software1,438,449
 1,424,700
 1,273,028
(4)
MRI Software LLCFirst Lien Revolver, LIBOR+5.50% cash due 2/10/20266.57%Application Software71,458
 70,029
 55,023
(4)(5)
MRI Software LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 Application Software
 (1,501) (28,701)(4)(5)
Total MRI Software LLC   1,509,907
 1,493,228
 1,299,350
 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.99%Health Care Technology4,000,000
 3,980,000
 3,710,000
 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20255.57%Electrical Components & Equipment5,390,000
 5,370,720
 4,581,500
 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20226.00%Application Software5,838,140
 5,797,677
 5,205,052
 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.45%Application Software3,635,411
 3,617,234
 2,935,595
(4)
OEConnection LLCFirst Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026 Application Software
 (1,667) (66,667)(4)(5)
 Total OEConnection LLC   3,635,411
 3,615,567
 2,868,928
 
Olaplex, Inc.First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50%Personal Products3,000,000
 2,942,299
 2,805,000
(4)
Olaplex, Inc.First Lien Revolver, LIBOR+6.50% cash due 1/8/20257.50%Personal Products324,000
 317,818
 302,940
(4)
Total Olaplex, Inc.   3,324,000
 3,260,117
 3,107,940
 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50%Metal & Glass Containers2,900,000
 2,871,000
 2,697,000
(4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.00% cash due 10/27/20226.78%Footwear6,223,750
 6,200,125
 4,885,644
 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.95%Health Care Services5,880,000
 5,839,430
 4,939,200
(4)
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.25% cash due 10/1/20265.32%Personal Products6,483,750
 6,451,331
 5,900,212
(4)
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20255.20%Application Software2,893,514
 2,686,957
 2,332,172
(4)
Surgery Center Holdings Inc.First Lien Term Loan, LIBOR+3.25% cash due 9/2/20244.25%Health Care Facilities4,987,212
 4,965,611
 3,867,583
 
Thunder Finco (US), LLCFirst Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.24%Movies & Entertainment3,000,000
 2,970,000
 2,347,500
(4)
Tribe Buyer LLCFirst Lien Term Loan, LIBOR+4.50% cash due 2/16/20245.50%Human Resource & Employment Services1,617,579
 1,614,977
 1,217,228
 
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
UFC Holdings, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 4/29/20264.25%Movies & Entertainment$2,635,319
 $2,616,767
 $2,348,728
(4)
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.50% cash due 8/27/20255.49%Health Care Technology1,742,577
 1,728,598
 1,655,448
(4)
VM Consolidated, Inc.First Lien Term Loan, LIBOR+3.25% cash due 2/28/20254.24%Data Processing & Outsourced Services4,796,753
 4,781,839
 4,365,045

WideOpenWest Finance, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 8/18/20234.25%Cable & Satellite213,453
 187,838
 199,045
 
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20269.53%Aerospace & Defense3,000,000
 2,976,288
 2,060,010
(4)
Total Portfolio Investments   $164,687,221
 $161,865,975
 $137,005,935
 
__________
(1) Represents the current interest rate as of DecemberMarch 31, 2017.2020. All interest rates are payable in cash, unless otherwise noted.
(2) Represents the current determination of fair value as of December 31, 2017 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(3) This investment is held by both the Company and the Glick JV as of December 31, 2017.
(4) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.
(5) This investment was onagreement and the cash non-accrual status as of December 31, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.


OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Glick JV Portfolio as of September 30, 2017
Portfolio Company Industry Investment Type Maturity Date Current Interest Rate (1)(4)  Cash Interest Rate (1) Principal Cost Fair Value (2)
 Ameritox Ltd. (3)(5)  Healthcare services First Lien Term Loan 4/11/2021 LIBOR+5% (1% floor) cash 3% PIK 6.33% $2,287,177
 $2,243,202
 $265,211
   Healthcare services 119,910.76 Class B Preferred Units         119,911
 
   Healthcare services 368.96 Class A Common Units         2,174,034
 
 Total Ameritox Ltd.           2,287,177
 4,537,147
 265,211
 Beyond Trust Software, Inc. (3)  Application software First Lien Term Loan 9/25/2019 LIBOR+7% (1% floor) cash 8.33% 11,267,524
 11,220,478
 11,267,116
 Compuware Corporation (3)  Internet software & services First Lien Term Loan B3 12/15/2021 LIBOR+4.25% (1% floor) cash 5.49% 6,279,920
 6,225,992
 6,358,419
 Metamorph US 3, LLC (3)(5)  Internet software & services First Lien Term Loan 12/1/2020 LIBOR+5.5% (1% floor) cash 2% PIK 6.74% 6,825,900
 6,477,372
 2,592,115
 Motion Recruitment Partners LLC (3)  Human resources & employment services First Lien Term Loan 2/13/2020 LIBOR+6% (1% floor) cash 7.24% 8,659,650
 8,659,650
 8,659,223
 NAVEX Global, Inc.  Internet software & services First Lien Term Loan 11/19/2021 LIBOR+4.25% (1% floor) cash 5.49% 2,977,041
 2,967,620
 2,988,205
 Air Newco LLC  IT consulting & other services First Lien Term Loan B 3/20/2022 LIBOR+5.5% (1% floor) cash 6.82% 8,160,622
 8,141,224
 8,099,417
 CM Delaware LLC  Advertising First Lien Term Loan 3/18/2021 LIBOR+5.25% (1% floor) cash 6.58% 2,075,162
 2,073,617
 2,064,786
 New Trident Holdcorp, Inc. (3)  Healthcare services First Lien Term Loan B 7/31/2019 LIBOR+5.75% (1.25% floor) cash 7.08% 2,018,206
 2,000,877
 1,453,109
 Central Security Group, Inc. (3)  Specialized consumer services First Lien Term Loan 10/6/2021 LIBOR+5.625% (1% floor) cash 6.86% 3,876,067
 3,880,408
 3,892,211
Aptos, Inc. (3) Data processing & outsourced services First Lien Term Loan B 9/1/2022 LIBOR+6.75% (1% floor) cash 8.08% 7,920,000
 7,790,262
 7,840,800
Vubiquity, Inc. Application software First Lien Term Loan 8/12/2021 LIBOR+5.5% (1% floor) cash 6.83% 4,126,500
 4,099,195
 4,095,551
Poseidon Merger Sub, Inc. (3) Advertising Second Lien Term Loan 8/15/2023 LIBOR+8.5% (1% floor) cash 9.81% 3,000,000
 2,933,633
 3,030,000
Novetta Solutions, LLC Diversified support services First Lien Term Loan 10/16/2022 LIBOR+5% (1% floor) cash 6.34% 5,990,978
 5,932,073
 5,826,226
SHO Holding I Corporation Footwear First Lien Term Loan 10/27/2022 LIBOR+5% (1% floor) cash 6.24% 6,386,250
 6,338,479
 6,306,422
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.24% 3,920,000
 3,877,655
 3,919,865
  Environmental & facilities services Incremental Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.24% 1,027,425
 1,006,080
 1,027,390
Total Valet Merger Sub, Inc.           4,947,425
 4,883,735
 4,947,255
RSC Acquisition, Inc. Insurance brokers First Lien Term Loan 11/30/2022 LIBOR+5.25% (1% floor) cash 6.58% 3,930,134
 3,912,198
 3,890,832
Integro Parent Inc. Insurance brokers First Lien Term Loan 10/31/2022 LIBOR+5.75% (1% floor) cash 7.06% 4,913,924
 4,790,511
 4,901,639
TruckPro, LLC Auto parts & equipment First Lien Term Loan 8/6/2018 LIBOR+5% (1% floor) cash 6.24% 1,823,268
 1,821,822
 1,825,054
Falmouth Group Holdings Corp. Specialty chemicals First Lien Term Loan 12/13/2021 LIBOR+6.75% (1% floor) cash 8.08% 4,610,174
 4,572,990
 4,610,400
 Ancile Solutions, Inc. (3)  Internet software & services First Lien Term Loan 6/30/2021 LIBOR+7% (1% floor) cash 8.33% 4,042,355
 3,995,621
 4,010,198
 California Pizza Kitchen, Inc.  Restaurants First Lien Term Loan 8/23/2022 LIBOR+6% (1% floor) cash 7.24% 4,950,000
 4,938,077
 4,917,008
 MHE Intermediate Holdings, LLC (3)  Diversified support services First Lien Term Loan B 3/11/2024 LIBOR+5% (1% floor) cash 6.33% 4,228,750
 4,150,304
 4,228,752
   Diversified support services Delayed Draw Term Loan 3/11/2024 LIBOR+5% (1% floor) cash 6.33% 667,510
 635,208
 667,510
 Total MHE Intermediate Holdings, LLC           4,896,260
 4,785,512
 4,896,262
 Total Portfolio Investments           $115,964,537
 $116,978,493
 $108,737,459
_________
(1) Represents the current interest rate as of September 30, 2017.period end. All LIBOR shown above is in U.S. dollars. As of March 31, 2020, the reference rates for the OCSI Glick JV's variable rate loans were the 30-day LIBOR at 0.99%, the 60-day LIBOR at 1.26%, the 90-day LIBOR at 1.45% and the 180-day LIBOR at 1.07%. Most loans include an interest rates are payable in cash, unless otherwise noted.floor, which generally ranges from 0% to 1%.
(2)(3) Represents the current determination of fair value as of September 30, 2017March 31, 2020 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(4) This investment is held by both the Company and the OCSI Glick JV as of March 31, 2020.
(5) Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(6) This investment was on cash non-accrual status as of March 31, 2020. Cash non-accrual is inclusive of PIK and other non-cash income where applicable.

OCSI Glick JV Portfolio as of September 30, 2019
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20256.60%Electrical components & equipment$2,718,993
 $2,651,270
 $2,504,016
(4)
Air Newco LPFirst Lien Term Loan, LIBOR+4.75% cash due 5/31/20246.79%IT consulting & other services7,425,000
 7,406,438
 7,437,400
 
AL Midcoast Holdings LLCFirst Lien Term Loan, LIBOR+5.50% cash due 8/1/20257.60%Oil & gas storage & transportation6,930,000
 6,860,699
 6,834,712
(4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20266.03%Integrated telecommunication services2,977,500
 2,912,809
 2,975,639
 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+4.75% cash due 4/1/20226.79%Pharmaceuticals5,359,286
 5,359,286
 4,874,270
 
Ancile Solutions, Inc.First Lien Term Loan, LIBOR+7.00% cash due 6/30/20219.10%Application software3,395,374
 3,377,463
 3,327,467
(4)
Aptos, Inc.First Lien Term Loan, LIBOR+5.50% cash due 7/23/20257.70%Computer & electronics retail2,977,500
 2,947,725
 2,940,281
(4)
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20256.05%Oil & gas equipment & services4,937,500
 4,917,589
 4,570,273
 
California Pizza Kitchen, Inc.First Lien Term Loan, LIBOR+6.00% cash due 8/23/20228.53%Restaurants4,850,000
 4,838,318
 4,349,868
 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+5.00% cash due 3/28/20247.10%Oil & gas refining & marketing3,980,000
 3,940,200
 4,004,875
(4)
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 9/23/20267.10%Alternative Carriers5,000,000
 4,900,000
 4,930,075
(4)
Covia Holdings CorporationFirst Lien Term Loan, LIBOR+4.00% cash due 6/1/20256.31%Oil & gas equipment & services6,912,500
 6,912,500
 5,673,745
 
Curium Bidco S.à r.l.First Lien Term Loan, LIBOR+4.00% cash due 7/9/20266.10%Biotechnology5,000,000
 4,962,500
 5,025,000
(4)
Ellie Mae, Inc.First Lien Term Loan, LIBOR+4.00% cash due 4/17/20266.04%Application software1,000,000
 995,000
 1,002,920
(4)
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
Falmouth Group Holdings Corp.First Lien Term Loan, LIBOR+6.75% cash due 12/14/20218.95%Specialty chemicals$4,658,544
 $4,626,032
 $4,632,004
 
Frontier Communications CorporationFirst Lien Term Loan, LIBOR+3.75% cash due 6/15/20245.80%Integrated telecommunications services5,468,222
 5,365,594
 5,466,281
(4)
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20246.29%Systems software5,895,000
 5,850,631
 5,732,888
 
Guidehouse LLPSecond Lien Term Loan, LIBOR+7.50% cash due 5/1/20269.54%Research & consulting services5,000,000
 4,979,290
 4,937,500
(4)
Indivior Finance S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 12/19/20226.76%Pharmaceuticals4,340,941
 4,326,851
 3,997,290
(4)
Integro Parent, Inc.First Lien Term Loan, LIBOR+5.75% cash due 10/31/20227.80%Insurance brokers4,813,924
 4,744,243
 4,681,541
 
Intelsat Jackson Holdings S.A.First Lien Term Loan, LIBOR+3.75% cash due 11/27/20235.80%Alternative Carriers5,000,000
 4,939,169
 5,021,100
 
McDermott Technology (Americas), Inc.First Lien Term Loan, LIBOR+5.00% cash due 5/9/20257.10%Oil & gas equipment & services1,429,306
 1,406,187
 913,565
(4)
MHE Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 3/8/20247.10%Diversified support services4,143,750
 4,089,029
 4,060,875
(4)
 First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/20247.10%Diversified support services837,128
 826,823
 820,385
(4)
 Total MHE Intermediate Holdings, LLC   4,980,878
 4,915,852
 4,881,260
 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 9/18/20266.13%Healthcare technology4,000,000
 3,980,000
 4,005,000
 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20256.56%Electrical components & equipment5,417,500
 5,396,178
 5,336,238
 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20227.05%Application software5,868,628
 5,824,577
 5,760,440
 
OCI Beaumont LLCFirst Lien Term Loan, LIBOR+4.00% cash due 3/13/20256.10%Commodity chemicals6,895,000
 6,888,231
 6,903,619
(4)
OEConnection LLCFirst Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/24/2026 Application software
 (1,720) (645)(4)(5)
 First Lien Term Loan, LIBOR+4.00% cash due 9/24/20266.13%Application software3,655,914
 3,637,634
 3,649,059
(4)
 Total OEConnection LLC   3,655,914
 3,635,914
 3,648,414
 
Red Ventures, LLCFirst Lien Term Loan, LIBOR+3.00% cash due 11/8/20245.04%Interactive media & services3,989,924
 3,970,677
 4,010,712
 
RSC Acquisition, Inc.First Lien Term Loan, LIBOR+4.25% cash due 11/30/20226.29%Trading companies & distributors3,849,574
 3,835,594
 3,820,702
 
Servpro Borrower, LLCFirst Lien Term Loan, PRIME+2.50% cash due 3/26/20267.50%Specialized consumer services3,980,000
 3,970,050
 3,984,975
 
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.00% cash due 10/27/20227.26%Footwear6,256,250
 6,227,881
 5,943,438
 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20246.60%Healthcare services5,910,000
 5,864,902
 5,902,613
(4)
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.25% cash due 9/25/20266.59%Personal products6,500,000
 6,467,500
 6,538,610
(4)
Tribe Buyer LLCFirst Lien Term Loan, LIBOR+4.50% cash due 2/16/20246.54%Human resources & employment services3,114,779
 3,109,120
 2,907,133
(4)
Triple Royalty Sub LLCFixed Rate Bond 144A 9.0% Toggle PIK cash due 4/15/2033 Pharmaceuticals3,000,000
 3,000,000
 3,105,000
 
UFC Holdings, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 4/29/20265.30%Movies & entertainment2,493,573
 2,493,573
 2,503,099
(4)
Verra Mobility, Corp.First Lien Term Loan, LIBOR+3.75% cash due 2/28/20255.79%Data processing & outsourced services4,929,950
 4,913,436
 4,956,645
(4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/202610.01%Aerospace & defense3,000,000
 2,974,333
 2,987,490
(4)
 Total Portfolio Investments   $177,911,560
 $176,687,612
 $173,028,098
 
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(3) This investment is held by both________
(1) Represents the Company and the Glick JVcurrent interest rate as of September 30, 2017.2019. All interest rates are payable in cash, unless otherwise noted.
(4)(2) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars. As of September 30, 2019, the reference rates for the OCSI Glick JV's variable rate loans were the 30-day LIBOR at 2.04%, the 60-day LIBOR at 2.09%, the 90-day LIBOR at 2.10%, the 180-day LIBOR at 2.06% and the PRIME at 5.00%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(5) This investment was on cash non-accrual status(3) Represents the current determination of fair value as of September 30, 2017. Cash non-accrual status2019 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is inclusivenot included in the Company's Board of PIKDirectors' valuation process described elsewhere herein.
(4) This investment is held by both the Company and other non-cashthe OCSI Glick JV as of September 30, 2019.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income where applicable.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 OCSI Glick JV was $71.6$73.2 million and $57.2$37.8 million, respectively, as of DecemberMarch 31, 20172020 and $71.3$73.2 million and $57.6$54.3 million, respectively, as of September 30, 2017. The2019. As of March 31, 2020, the Company placed its investment in the Subordinated Notes pay a weighted averageon cash non-accrual status and did not earn any interest rate of LIBOR plus 8.0% per annum. Foron the investment for the three months ended DecemberMarch 31, 20172020. For the six months ended March 31, 2020, the Company earned interest income of $1.4 million on its investment in the Subordinated Notes. For the three and Decembersix months ended March 31, 2016,2019, the Company earned interest income of $1.5 million and $1.4$3.0 million, respectively, on its investment in the Subordinated Notes. The Company did not earn any dividend income for the three and six months ended DecemberMarch 31, 20172020 and earned dividend income of $0.2 million for the three months ended December 31, 20162019 with respect to its investment in the LLC equity interests.interests of the OCSI Glick JV. The LLC equity interests of the OCSI Glick JV are income producing to the extent there is residual cash to be distributed on a quarterly basis.
As of March 31, 2020 and September 30, 2019, the Subordinated Notes bore an interest rate of 1-month LIBOR plus 6.5% per annum. On March 31, 2020, the Company and GF Debt Funding amended the Subordinated Notes to (1) decrease the interest rate to 1-month LIBOR plus 4.5% per annum effective beginning on April 1, 2020, (2) extend the maturity date from October 20, 2021 to October 20, 2028 and (3) provide that the Subordinated Notes will not pay interest on its previously scheduled April 15, 2020 and July 15, 2020 coupon dates.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Below is certain summarized financial information for the OCSI Glick JV as of DecemberMarch 31, 20172020 and September 30, 20172019 and for the three and six months ended DecemberMarch 31, 20172020 and December 31, 2016:2019:
 December 31, 2017 September 30, 2017 March 31, 2020 September 30, 2019
Selected Balance Sheet Information:        
Investments in loans at fair value (cost December 31, 2017: $129,513,666; cost September 30, 2017: $116,978,493) $121,868,206
 $108,737,459
Investments at fair value (cost March 31, 2020: $161,865,975; cost September 30, 2019: $176,687,612) $137,005,935
 $173,028,098
Cash and cash equivalents 26,080,455
 13,891,899
 9,722,126
 1,096,498
Restricted cash 1,683,753
 2,249,575
 2,793,202
 2,616,125
Due from portfolio companies 
 7,653
Other assets 1,859,067
 1,791,077
 3,671,348
 2,937,681
Total assets $151,491,481
 $126,677,663
 $153,192,611
 $179,678,402
        
Senior credit facility payable $56,881,939
 $56,881,939
 $98,181,939
 $91,881,939
Subordinated notes payable at fair value (proceeds December 31, 2017: $73,741,750; proceeds September 30, 2017: $73,404,435) 65,319,540
 65,836,199
Subordinated notes payable at fair value (proceeds March 31, 2020: $75,480,629; proceeds September 30, 2019: $75,517,614) 43,238,789
 62,087,348
Other liabilities 29,290,002
 3,959,525
 11,771,883
 25,709,115
Total liabilities $151,491,481
 $126,677,663
 $153,192,611
 $179,678,402
Members' equity 
 
 
 
Total liabilities and members' equity $151,491,481
 $126,677,663
 $153,192,611
 $179,678,402
  Three months ended
December 31, 2017
 Three months ended
December 31, 2016
Selected Statements of Operations Information:    
Interest income $1,939,602
 $3,486,810
PIK interest income 
 17,933
Fee income 32,802
 99,653
Total investment income 1,972,404
 3,604,396
Interest expense 2,736,122
 2,795,065
Other expenses 38,146
 75,836
Total expenses (1) 2,774,268
 2,870,901
Net unrealized appreciation (depreciation) 1,444,107
 (7,384,097)
Realized loss on investments (642,243) (32,601)
Net income (loss) $
 $(6,683,203)
  Three months ended
March 31, 2020
 Three months ended
March 31, 2019
 Six months ended
March 31, 2020
 Six months ended
March 31, 2019
Selected Statements of Operations Information:        
Interest income $2,841,257
 $3,129,608
 $5,698,510
 $6,209,464
Fee income 200,987
 
 228,697
 
Total investment income 3,042,244
 3,129,608
 5,927,207
 6,209,464
Interest expense 1,043,827
 2,968,983
 3,746,784
 5,881,728
Other expenses 31,197
 70,245
 98,464
 113,357
Total expenses (1) 1,075,024
 3,039,228
 3,845,248
 5,995,085
Net unrealized appreciation (depreciation) (1,560,073) (20,404) (1,030,615) (149,106)
Realized gain (loss) (407,147) (69,976) (1,051,344) (65,273)
Net income (loss) $
 $
 $
 $
__________
(1) There are no management fees or incentive fees charged at the OCSI Glick JV.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


The OCSI Glick JV has elected to fair value the Subordinated Notes issued to the Company and GF Debt Funding under FASB ASC Topic 825, Financial Instruments - Fair Value OptionsOption. The Subordinated Notes are valued based on the total assets less the liabilities senior to the Subordinated Notes in an amount not exceeding par under the enterprise valueEV technique.
During the three and six months ended DecemberMarch 31, 20172020 and December 31, 2016,2019, the Company did not sell any senior secured debt investments to the OCSI Glick JV.
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.
For the three and six months ended DecemberMarch 31, 2017,2020, the Company recorded total fee income of $0.4 million and $0.8 million, respectively, of which $0.1 million of whichand $0.1 million, respectively, was recurring in nature. For the three and six months ended DecemberMarch 31, 2016,2019, the Company recorded total fee income of $0.4$0.2 million and $0.2 million, respectively, all of which was recurringnonrecurring in nature. Recurring fee income primarily consists of servicing fees and exit fees.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 5. Share Data and DistributionsNet Assets
Earnings per Share
The following table sets forth the computation of basic and diluted earnings per share, pursuant to FASB ASC Topic 260-10, Earnings per Share, for the three and six months ended DecemberMarch 31, 20172020 and December 31, 2016:2019:
  Three months ended
December 31, 2017
 Three months ended
December 31, 2016
Earnings per common share — basic and diluted:    
Net increase in net assets resulting from operations $1,905,968
 $724,797
Weighted average common shares outstanding 29,466,768
 29,466,768
Earnings per common share — basic and diluted $0.06
 $0.02
  Three months ended
March 31, 2020
 Three months ended
March 31, 2019
 Six months ended
March 31, 2020
 Six months ended
March 31, 2019
Earnings (loss) per common share — basic and diluted:        
Net increase (decrease) in net assets resulting from operations $(70,215,664) $13,695,427
 $(64,081,410) $494,736
Weighted average common shares outstanding 29,466,768
 29,466,768
 29,466,768
 29,466,768
Earnings (loss) per common share — basic and diluted $(2.38) $0.46
 $(2.17) $0.02
Changes in Net Assets
The following table presents the changes in net assets for the three and six months ended March 31, 2020:
  Common Stock      
  Shares Par Value Additional Paid-in-Capital Accumulated Overdistributed Earnings Total Net Assets
Balance at September 30, 2019 29,466,768
 $294,668
 $369,199,332
 $(85,043,994) $284,450,006
Net investment income 
 
 
 4,727,580
 4,727,580
Net unrealized appreciation (depreciation) 
 
 
 1,926,384
 1,926,384
Net realized gains (losses) 
 
 
 (519,710) (519,710)
Distributions to stockholders 
 
 
 (4,567,350) (4,567,350)
Issuance of common stock under dividend reinvestment plan 7,793
 78
 64,256
 
 64,334
Repurchases of common stock under dividend reinvestment plan (7,793) (78) (64,256) 
 (64,334)
Balance at December 31, 2019 29,466,768
 $294,668
 $369,199,332
 $(83,477,090) $286,016,910
Net investment income 
 $
 $
 $4,561,775
 $4,561,775
Net unrealized appreciation (depreciation) 
 
 
 (67,418,332) (67,418,332)
Net realized gains (losses) 
 
 
 (7,359,107) (7,359,107)
Distributions to stockholders 
 
 
 (4,567,348) (4,567,348)
Issuance of common stock under dividend reinvestment plan 14,852
 149
 77,499
 
 77,648
Repurchases of common stock under dividend reinvestment plan (14,852) (149) (77,499) 
 (77,648)
Balance at March 31, 2020 29,466,768
 $294,668
 $369,199,332
 $(158,260,102) $211,233,898

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the changes in net assets for the three and six months ended March 31, 2019:
  Common Stock      
  Shares Par Value Additional Paid-in-Capital Accumulated Overdistributed Earnings Total Net Assets
Balance at September 30, 2018 29,466,768
 $294,668
 $370,751,389
 $(75,300,637) $295,745,420
Net investment income 
 
 
 4,863,537
 4,863,537
Net unrealized appreciation (depreciation) 
 
 
 (19,760,624) (19,760,624)
Net realized gains (losses) 
 
 
 1,696,396
 1,696,396
Distributions to stockholders 
 
 
 (4,567,349) (4,567,349)
Issuance of common stock under dividend reinvestment plan 6,888
 69
 54,042
 
 54,111
Repurchases of common stock under dividend reinvestment plan (6,888) (69) (54,042) 
 (54,111)
Balance at December 31, 2018 29,466,768
 $294,668
 $370,751,389
 $(93,068,677) $277,977,380
Net investment income 
 $
 $
 $5,216,760
 $5,216,760
Net unrealized appreciation (depreciation) 
 
 
 8,797,411
 8,797,411
Net realized gains (losses) 
 
 
 (318,744) (318,744)
Distributions to stockholders 
 
 
 (4,567,349) (4,567,349)
Issuance of common stock under dividend reinvestment plan 6,187
 62
 50,481
 
 50,543
Repurchases of common stock under dividend reinvestment plan (6,187) (62) (50,481) 
 (50,543)
Balance at March 31, 2019 29,466,768
 $294,668
 $370,751,389
 $(83,940,599) $287,105,458

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 20172019 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 20172019 calendar year. To the extent that the Company’s taxable earnings for a fiscal and taxable year fall below the amount of distributions paid for the fiscal and taxable year, a portion of the total amount of the Company’s distributions for the fiscal and taxable year may beis deemed a return of capital for tax purposes to the Company’s stockholders.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


The following table reflects the quarterly distributions per share that the Company has paid, including shares issued under the DRIP, on its common stock during the threesix months ended DecemberMarch 31, 20172020 and December 31, 2016:2019:
Frequency Date Declared Record Date Payment Date Amount
per Share
 Cash Distribution DRIP Shares Issued (1) DRIP Shares Value
Quarterly August 7, 2017 December 15, 2017 December 29, 2017 $0.19
 $5,439,519
 18,809 $159,167
Total for the three months ended December 31, 2017   $0.19
 $5,439,519
 18,809 $159,167
Date Declared Record Date Payment Date Amount
per Share
 Cash Distribution DRIP Shares Issued (1) DRIP Shares Value
November 12, 2019 December 13, 2019 December 31, 2019 $0.155
 $4,503,016
 7,793 $64,334
January 31, 2020 March 13, 2020 March 31, 2020 0.155
 4,489,700
 14,852 77,648
Total for the six months ended March 31, 2020 $0.310
 $8,992,716
 22,645 $141,982
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Frequency Date Declared Record Date Payment Date Amount
per Share
 Cash Distribution DRIP Shares Issued (1) DRIP Shares Value
Monthly August 4, 2016 October 14, 2016 October 31, 2016 $0.075
 $2,183,023
 3,146 $26,985
Monthly August 4, 2016 November 15, 2016 November 30, 2016 0.075
 2,183,100
 2,986 26,908
Monthly October 19, 2016 December 15, 2016 December 30, 2016 0.075
 2,179,421
 3,438 30,586
Total for the three months ended December 31, 2016   $0.23
 $6,545,544
 9,570 $84,479
Date Declared Record Date Payment Date Amount
per Share
 Cash Distribution DRIP Shares Issued (1) DRIP Shares Value
November 19, 2018 December 17, 2018 December 28, 2018 $0.155
 $4,513,238
 6,888 $54,111
February 1, 2019 March 15, 2019 March 29, 2019 0.155
 4,516,806
 6,187 50,543
Total for the six months ended March 31, 2019 $0.310
 $9,030,044
 13,075 $104,654
 __________
(1) Shares were purchased on the open market and distributed.
Common Stock Offering
There were no common stock offerings during the threesix months ended DecemberMarch 31, 20172020 and December 31, 2016.2019.
Note 6. Borrowings
Citibank Facility
On January 15, 2015, OCSI Senior Funding II LLC (formerly FS Senior Funding II LLC,LLC), the Company's wholly-owned, special purpose financing subsidiary, entered into a revolving credit facility (as amended, the "Citibank facility"Facility") with the lenders referred to therein, Citibank, N.A., as administrative agent, and Wells Fargo Bank, N.A., as collateral agent and custodian, which permitted up to $125 millioncustodian.
As of borrowings as of both DecemberMarch 31, 20172020 and September 30, 2017.
Borrowings2019, the Company was able to borrow up to $180 million under the Citibank facilityFacility (subject to borrowing base and other limitations).  As of March 31, 2020, the reinvestment period under the Citibank Facility is scheduled to expire on July 19, 2021 and the maturity date for the Citibank Facility is July 18, 2023. 
As of March 31, 2020, borrowings under the Citibank Facility are subject to certain customary advance rates and accruedaccrue interest at a rate equal to LIBOR plus 2.25%1.70% per annum on broadly syndicated loans and LIBOR plus 2.50%2.25% per annum on all other eligible loans during the reinvestment period. Following termination of the reinvestment period, andborrowings under the Citibank Facility will accrue interest at rates equal to LIBOR plus 3.50% per annum during the first year after the reinvestment period and LIBOR plus 4.00% per annum during the subsequent two years, respectively. In addition, as of March 31, 2020, for the duration of the reinvestment period there is a commitmentnon-usage fee payable of 0.50% per annum on the undrawn amount under the Citibank facilityFacility. As of either 0.50% per annum onMarch 31, 2020, the unused amountminimum asset coverage ratio applicable to the Company under the Citibank Facility is 150% as determined in accordance with the requirements of the Citibank facility (if the advances outstanding on the Citibank facility exceed 50% of the aggregate commitments by lenders to make advances on such day) or 0.75% per annum on the unused amount of the credit facility (if the advances outstanding on the Citibank facility do not exceed 50% of the aggregate commitments by lenders to make advances on such day) for the duration of the reinvestment period. Interest and commitment fees are payable quarterly in arrears. The Citibank facility will mature on January 15, 2020. The Citibank facility requires theInvestment Company to comply with certain affirmative and negative covenants and other customary requirements for similar credit facilities.Act.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the Company had $70.1$129.1 million and $76.5$126.1 million outstanding under the Citibank facility,Facility, respectively. Borrowings under the Citibank facilityFacility are secured by all of the assets of FSOCSI Senior Funding II LLC and all of the Company's equity interests in FSOCSI Senior Funding II LLC.II. The Company may use the Citibank facilityFacility to fund a portion of its loan origination activities and for general corporate purposes. Each loan origination under the Citibank facilityFacility is subject to the satisfaction of certain conditions. The Company's borrowings under the Citibank facilityFacility bore interest at a weighted average interest rate of 3.919%3.666% and 3.213%4.618% for the threesix months ended DecemberMarch 31, 20172020 and December 31, 2016,2019, respectively. For the three and six months ended DecemberMarch 31, 2017 and December 31, 2016,2020, the Company recorded interest expense (inclusive of $0.9fees) of $1.3 million and $1.0$2.7 million, respectively, related to the Citibank facility.Facility. For the three and six months ended March 31, 2019, the Company recorded interest expense (inclusive of fees) of $1.7 million and $3.2 million, respectively, related to the Citibank Facility.
East West Bank Facility
On January 6, 2016, the Company entered into a five-year $25 million senior secured revolving credit facility (subject to borrowing base and other limitations) with the lenders referenced therein, U.S. Bank National Association, as Custodian, and East West Bank as Secured Lender (the(as amended, the "East West Bank facility"Facility"). TheAs of March 31, 2020, the East West Bank facilityFacility bears an interest rate of either (i) LIBOR plus 3.75%2.85% per annum for borrowings in year one, 3.50% per annum for borrowings in year two, 3.25% per annum for borrowings in years three and four and 3.00% per annum for borrowings in year five, or (ii) East West Bank’s prime rate, plus 0.75% per annum for borrowings in year one, 0.50% per annum for borrowingseach case with a 3.5% floor. As of March 31, 2020, the minimum asset coverage ratio applicable to the Company under the East West Bank Facility was 150% as determined in year two, 0.25% per annum for borrowings in years three and four, and 0.00% per annum for borrowings in year five.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


accordance with the requirements of the Investment Company Act. The East West Bank facilityFacility matures on January 6, 2021. The East West Bank facilityFacility requires the Company to comply with certain affirmative and negative covenants and other customary requirements for similar credit facilities.
On April 7, 2020, the Company amended the East West Bank Facility to, among other things, reduce the required minimum net assets from $225 million to $185 million commencing with the quarter ended March 31, 2020. For the March 31, 2020 testing period, the Company was in compliance with all financial covenants under the East West Bank Facility.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the Company had $4.0$22.5 million and $6.5$11.0 million outstanding under the East West Bank facility,Facility, respectively. Borrowings under the East West Bank facilityFacility are secured by the loans pledged as collateral thereunder from time to time as well as certain other assets of the Company. The Company may use the East West Bank facilityFacility to fund a portion of its loan origination activities and for general corporate purposes. The Company’s borrowings under the East West Bank facility bore interest at a weighted average interest rate of 5.088% and 3.498% for the three months ended December 31, 2017 and December 31, 2016, respectively. For the three months ended December 31, 2017 and December 31, 2016, the Company recorded interest expense of $0.2 million and $0.1 million, respectively, related to the East West Bank facility.
2015 Debt Securitization
On May 28, 2015, the Company completed its $309.0 million debt securitization ("2015 Debt Securitization") consisting of $222.6 million in senior secured notes ("2015 Notes") and $86.4 million of unsecured subordinated notes ("Subordinated 2015 Notes"). The notes offered in the 2015 Debt Securitization were issued by the 2015 Issuer, a wholly-owned subsidiary of the Company, through a private placement. The 2015 Notes are secured by the assets held by the 2015 Issuer. The 2015 Debt Securitization consists of $126.0 million Class A-T Senior Secured 2015 Notes, which bear interest at three-month LIBOR plus 1.80% per annum; $29.0 million Class A-S Senior Secured 2015 Notes, which bore interest at a rate of three-month LIBOR plus 1.55% per annum, until a step-up in spread to 2.10% occurred in October 2016; $20.0 million Class A-R Senior Secured Revolving 2015 Notes, which bear interest at a rate of Commercial Paper ("CP") plus 1.80% per annum (collectively, the "Class A Notes") and $25.0 million Class B Senior Secured 2015 Notes, which bear interest at a rate of three-month LIBOR plus 2.65% per annum (the "Class B Notes"). In partial consideration for the loans transferred to the 2015 Issuer as part of the 2015 Debt Securitization, the Company currently retains the entire $22.6 million of the Class C Senior Secured 2015 Notes (which the Company purchased at 98.0% of par value) (the "Class C Notes") and the entire $86.4 million of the Subordinated 2015 Notes. The Class A Notes and Class B Notes are included in the Company's December 31, 2017 Consolidated Statements of Assets and Liabilities as notes payable. As of December 31, 2017, the Class C Notes and the Subordinated 2015 Notes were eliminated in consolidation.
The Company serves as collateral manager to the 2015 Issuer under a collateral management agreement. The Company is entitled
to a fee for its services as collateral manager. The Company has retained a sub-collateral manager, which, as of October 17, 2017, was the Investment Adviser and, prior to October 17, 2017, was FSM, to provide collateral management sub-advisory services to the Company pursuant to a sub-collateral management agreement. The sub-collateral manager is entitled to receive 100% of the collateral management fees paid to the Company under the collateral management agreement, but each of the Investment Adviser and FSM irrevocably waived and, in the case of the Investment Adviser, intends to continue to irrevocably waive its right to such sub-collateral management fees in respect of the 2015 Debt Securitization.

The collateral management agreement does not include any incentive fee payable to the Company as collateral manager or payable to the sub-collateral manager as sub-advisor under the sub-collateral management agreement.

Through May 28, 2019, all principal collections received on the underlying collateral may be used by the 2015 Issuer to purchase new collateral under the direction of the Investment Adviser in its capacity as sub-collateral manager of the 2015 Issuer and in accordance with the Company's investment strategy. All 2015 Notes are scheduled to mature on May 28, 2025.
As of December 31, 2017, there were 52 investments in portfolio companies with a total fair value of $263.6 million, securing the 2015 Notes. The pool of loans in the 2015 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

For the three months ended December 31, 2017 and December 31, 2016, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the 2015 Debt Securitization were as follows:
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  Three months ended December 31, 2017 Three months ended December 31, 2016
Interest expense $1,567,772
 $1,306,035
Loan administration fees 18,241
 18,330
Amortization of debt issuance costs 72,526
 72,526
Total interest and other debt financing expenses $1,658,539
 $1,396,891
Cash paid for interest expense $1,566,749
 $1,222,675
Annualized average interest rate 3.446% 2.902%
Average outstanding balance $181,467,391
 $180,000,000
The classes,Facility bore interest rates, spread over LIBOR, cash paidat a weighted average interest rate of 4.637% and 5.484% for interestthe six months ended March 31, 2020 and 2019, respectively. For the three and six months ended March 31, 2020, the Company recorded interest expense (inclusive of eachfees) of $0.2 million and $0.4 million, respectively, related to the Class A-T, A-S, A-R, B and C 2015 Notes forEast West Bank Facility. For the three and six months ended DecemberMarch 31, 2017 is as follows:

 Stated Interest Rate LIBOR Spread (basis points) Cash Paid for Interest Interest Expense
Class A-T Notes 3.1035% 180 $999,327
 $999,327
Class A-S Notes 3.4035% 210(1)252,237
 252,237
Class A-R Notes 3.1838% 180(2)62,600
 63,623
Class B Notes 3.9535% 265 252,585
 252,585
Class C Notes 4.5535% 325(3)
 
Total     $1,566,749
 $1,567,772
_______________________
(1) Spread increased to 2.10% in October 2016 from 1.55%.
(2) Interest expense includes 1.0% undrawn fee.
(3) The2019, the Company holds all Class C Notes outstanding and thus has not recorded any related interest expense as they are eliminated in consolidation.

The classes, amounts, ratings(inclusive of fees) of $0.2 million and interest rates (expressed as a spread to three-month LIBOR) of the Class A, B, C and Subordinated 2015 Notes as of December 31, 2017 are as follows:
Description Class A-T Notes Class A-S Notes Class A-R
Notes
 Class B Notes Class C Notes Subordinated Notes
Type Senior Secured Floating Rate Term Debt Senior Secured Floating Rate Term Debt Senior Secured Floating Rate Revolver Senior Secured Floating Rate Term Debt Senior Secured Floating Rate Term Debt Subordinated Term Notes
Amount Outstanding $126,000,000 $29,000,000 $— $25,000,000 $22,575,680 $86,400,000
Moody's Rating "Aaa" "Aaa" "Aaa" "Aa2" "Aa2" NR
S&P Rating "AAA" "AAA" "AAA" NR NR NR
Interest Rate LIBOR + 1.80% LIBOR + 2.10%* CP + 1.80% ** LIBOR + 2.65% LIBOR + 3.25% NA
Stated Maturity May 28, 2025 May 28, 2025 May 28, 2025 May 28, 2025 May 28, 2025 May 28, 2025
_______________________
* Spread increased to 2.10% in October 2016 from 1.55%.
** Carries a 1.0% undrawn fee.

     The proceeds of the private placement of the Class A Notes and the Class B Notes of the 2015 Issuer, net of debt issuance costs, were used to fund a portion of the 2015 Issuer's loan origination activities and for general corporate purposes. The creditors of the 2015 Issuer have received security interests in the assets owned by the 2015 Issuer and such assets are not intended to be available$0.3 million, respectively, related to the creditorsEast West Bank Facility.
Deutsche Bank Facility
On September 24, 2018, OCSI Senior Funding Ltd., a wholly-owned subsidiary of the Company (or any other affiliate of the Company). As part of the 2015 Debt Securitization, the Company, entered into mastera loan sale agreementsfinancing and servicing agreement (as amended, the “Deutsche Bank Facility”) with the Company as equityholder and as servicer, the lenders from time to time parties thereto, Deutsche Bank AG, New York Branch, as facility agent, the other agents parties thereto and Wells Fargo Bank, National Association, as collateral agent and as collateral custodian.
Effective March 22, 2020, an amendment to the Deutsche Bank Facility (the "DB Credit Facility Amendment") (a) extended the period during which OCSI Senior Funding Ltd. may request drawdowns under the under the Deutsche Bank Facility (the "revolving period") to September 30, 2020 unless there is an earlier termination or event of default, (b) extended the maturity date from June 30, 2020 until the earliest of March 30, 2021, the occurrence of an event of default or completion of a securitization transaction, (c) decreased the size of the Deutsche Bank Facility from $250 million to $200 million (subject to borrowing base and other limitations) and (d) modified the interest rate to three-month LIBOR plus 2.25% through September 30, 2020, following which the Company agreedinterest rate will reset to directly or indirectly sell or contribute certain senior secured debt investments (or participation interests therein) tothree-month LIBOR plus 2.40% for the 2015 Issuer, and to purchase or otherwise acquire the Subordinated 2015 Notes, as applicable. The 2015 Notes are the secured obligationsremaining term of the 2015 IssuerDeutsche Bank Facility. There is a non-usage fee of 0.50% per annum payable on the undrawn amount under the Deutsche Bank Facility, and the indenture governingDB Credit Facility Amendment added a minimum utilization fee should the 2015 Notes includesdrawn amount under the Deutsche Bank Facility fall below 80%.
The Deutsche Bank Facility is secured by all of the assets held by OCSI Senior Funding Ltd. OCSI Senior Funding Ltd. has made customary covenantsrepresentations and events of default. The 2015 Debt Securitization requires the Companywarranties and is required to comply with certain monthly financialvarious affirmative and negative covenants, reporting requirements and other customary requirements for similar credit facilities. The borrowings of the Company, including overcollateralizationindirectly under the Deutsche Bank Facility, are subject to the leverage restrictions contained in the Investment Company Act.
As of March 31, 2020 and September 30, 2019, the Company had $175.6 million and $157.6 million outstanding under the Deutsche Bank Facility, respectively. For the six months ended March 31, 2020 and 2019, the Company’s borrowings under the Deutsche Bank Facility bore interest coverage tests.at a weighted average interest rate of 4.062% and 4.538%, respectively. For the three and six months ended March 31, 2020, the Company recorded interest expense (inclusive of fees) of $2.0 million and $3.8 million, respectively. For the three and six months ended March 31, 2019, the Company recorded interest expense (inclusive of fees) of $1.9 million and $3.5 million, respectively.

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 7. Interest and Dividend Income
See Note 2 "Investment Income"
As of March 31, 2020, there was one investment on which the Company had stopped accruing cash and/or PIK interest or OID income. As of March 31, 2020, the Company restructured its investment in the Subordinated Notes of the OCSI Glick JV to realign the vehicle for a descriptioncurrent market conditions. The Company and GF Debt Funding amended the Subordinated Notes to (1) decrease the interest rate to 1-month LIBOR plus 4.5% per annum effective beginning on April 1, 2020, (2) extend the maturity date from October 20, 2021 to October 20, 2028 and (3) provide that the Subordinated Notes will not pay interest on its previously scheduled April 15, 2020 and July 15, 2020 coupon dates. Given that the notes will not pay interest for two quarters, the Company placed its investment in the Subordinated Notes of the OCSI Glick JV on cash non-accrual status and did not recognize any interest income from the OCSI Glick JV during the quarter ended March 31, 2020. The percentages of the Company's accounting treatmentdebt investments at cost and fair value by accrual status as of investment income.

    Accumulated PIK interest activity for the three months ended DecemberMarch 31, 2017 and December 31, 2016 was2020 were as follows:
  Three months ended
December 31, 2017
 Three months ended
December 31, 2016
PIK balance at beginning of period $497,260
 $88,839
Gross PIK interest accrued 601,294
 132,216
PIK income reserves (1) (302,880) (72,812)
PIK interest received in cash 
 
PIK balance at end of period $795,674
 $148,243
  March 31, 2020
  Cost % of Debt
Portfolio
 Fair
Value
 % of Debt
Portfolio
Accrual $546,774,334
 89.22% $486,545,381
 92.79%
Cash non-accrual (1) 66,045,552
 10.78
 37,833,930
 7.21
Total $612,819,886
 100.00% $524,379,311
 100.00%
 ___________________
(1)Cash non-accrual status is inclusive of PIK and other non-cash income, is generally reserved for when a loan is placed on PIK non-accrual status.where applicable.

As of each of December 31, 2017 and September 30, 2017,2019, there were threeno investments on which the Company had stopped accruing cash and/or PIK interest or OID income.

The percentages of the Company's debt investments at cost and fair value by accrual status as of December 31, 2017 and September 30, 2017 were as follows:
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  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 $543,893,491
 95.95% $533,828,329
 98.82% $564,231,285
 96.02% $553,084,120
 98.88%
PIK non-accrual (1) 
 
 
 
 
 
 
 
Cash non-accrual (2) 22,949,434
 4.05
 6,351,585
 1.18
 23,381,863
 3.98
 6,292,551
 1.12
Total $566,842,925
 100.00% $540,179,914
 100.00% $587,613,148
 100.00% $559,376,671
 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.

Note 8. Taxable/Distributable Income and Dividend Distributions
Taxable income differs from net increase (decrease) in net assets resulting from operations primarily due to: (1) unrealized appreciation (depreciation) on investments and secured borrowings,foreign currency, as gains and losses are not included in taxable income until they are realized; (2) exit fees received in connection with investments in portfolio companies; (3) origination fees received in connection with investments in portfolio companies; (3)(4) recognition of interest income on certain loans; and (4)(5) income or loss recognition on exited investments.
Listed below is a reconciliation of net decreaseincrease (decrease) in net assets resulting from operations to taxable income for the three and six months ended DecemberMarch 31, 2017:2020 and 2019:
Net increase in net assets resulting from operations $1,905,968
Net unrealized appreciation on investments and secured borrowings (1,741,899)
Book/tax difference due to deferred loan fees (245,015)
Book/tax difference due to interest income on certain loans 594,334
Book/tax difference due to capital losses not recognized 4,382,706
Other book/tax differences (356,968)
Taxable/Distributable Income (1) $4,539,126
  
Three months
ended
March 31,
2020
 
Three months
ended
March 31,
2019
 
Six months
ended
March 31,
2020
 
Six months
ended
March 31,
2019
Net increase (decrease) in net assets resulting from operations $(70,215,664) $13,695,427
 $(64,081,410) $494,736
Net unrealized (appreciation) depreciation 67,418,332
 (8,797,411) 65,491,948
 10,963,213
Book/tax difference due to capital losses not recognized (recognized) 7,025,587
 (269,552) 7,761,092
 (2,122,252)
Other book/tax differences 1,661,154
 187,583
 1,197,879
 187,583
Taxable/Distributable Income (1) $5,889,409
 $4,816,047
 $10,369,509
 $9,523,280
 
__________________
(1)The Company's taxable income for the three and six months ended DecemberMarch 31, 20172020 is an estimate and will not be finally determined until the Company files its tax return.return for the fiscal year ending September 30, 2020. Therefore, the final taxable income may be different than the estimate.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


As of September 30, 2019, the Company had a net capital loss carryforward of $60,782,648, which can be used to offset future capital gains and is not subject to expiration. Of the net capital loss carryforward, $7,293,950 is available to offset future short-term capital gains and $53,488,698 is available to offset future long-term capital gains.
As of September 30, 2017,2019, the most recentCompany's last tax year end, the components of accumulated undistributed incomeoverdistributed earnings on a tax basis were as follows:
Undistributed ordinary income, net$2,808,747
Net realized capital losses28,564,899
Unrealized losses, net(46,826,393)
As of September 30, 2017, the Company had net capital loss carryforwards of $28,564,899 to offset net capital gains, to the extent available and permitted by U.S. federal income tax law. Of the capital loss carryforwards, $2,699,949 are available to offset future short-term capital gains and $25,864,950 are available to offset future long-term capital gains. The Company is permitted to carry forward net capital losses, if any, incurred in taxable years beginning after December 22, 2010 for an unlimited period.
As a RIC, the Company is also subject to a U.S. federal excise tax based on distribution requirements of its taxable income on a calendar year basis. The Company anticipates timely distribution of its taxable income in accordance with tax rules. 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.
Undistributed ordinary income, net$1,512,863
Net realized capital losses(60,782,648)
Unrealized losses, net(25,774,209)
The aggregate cost of investments for income tax purposes was $607.3$622.9 million as of September 30, 2017.2019. As of September 30, 2017,2019, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over cost for income tax purposes was $4.6$24.6 million. As of September 30, 2017,2019, the aggregate gross unrealized depreciation for all investments in which there was an excess of cost for income tax purposes over value was $51.4$50.4 million. Net unrealized depreciation based on the aggregate cost of investments for income tax purposes was $46.8$25.8 million.

Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation on Investments
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, the Company recorded an aggregate net realized loss of $4.4 million in connection with the sale of various debt investments in the open market, including a $4.2 million realized loss in connection with the sale of the Company's first lien term loan investment in New Trident Holdcorp.




OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the three months ended DecemberMarch 31, 2016,2020, the Company recorded an aggregate net realized gainlosses of $0.1$7.4 million, which consisted of the following:
($ in millions) 
Portfolio CompanyNet Realized Gain (Loss)
Woodford Express LLC$(5.1)
Curvature, Inc.(1.9)
 Other, net(0.4)
Total, net$(7.4)

During the three months ended March 31, 2019, the Company recorded net realized losses of $0.3 in connection with the exit of various investments.
During the six months ended March 31, 2020, the Company recorded net realized losses of $7.9 million, which consisted of the following:
($ in millions) 
Portfolio CompanyNet Realized Gain (Loss)
Woodford Express LLC$(5.1)
Curvature, Inc.(1.9)
 Other, net(0.9)
Total, net$(7.9)
During the six months ended March 31, 2019, the Company recorded net realized gains of $1.4 million in connection with the saleexit of various debt investments in the open market.investments.
Net Unrealized Appreciation or Depreciation on Investments
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.
ForDuring the three months ended DecemberMarch 31, 2017,2020 and 2019, the Company recorded net unrealized appreciation (depreciation) of $1.7 million. This$(67.4) million and $8.8 million, respectively. For the three months ended March 31, 2020, this consisted of $3.2$71.6 million of net reclassifications to realized loss (resulting in unrealized appreciation) and $0.2depreciation of debt investments, offset by $3.7 million of net unrealized appreciation from exited investments (a portion of which resulted in a reclassification to realized losses) and $0.5 million of unrealized appreciation on equity investment, offset by $1.7 millionof net unrealized depreciation on debt investments.
foreign currency forward contracts. For the three months ended DecemberMarch 31, 2016,2019, this consisted of $7.9 million of unrealized appreciation of debt investments, $0.8 million of net unrealized appreciation from exited investments (a portion of which resulted in a reclassification to realized losses) and $0.1 million of unrealized appreciation of foreign currency forward contracts.
During the six months ended March 31, 2020 and 2019, the Company recorded net unrealized appreciation (depreciation) of $(65.5) million and $(11.0) million, respectively. For the six months ended March 31, 2020, this consisted of $68.3 million of unrealized depreciation of $5.2 million. This consisted of $7.7 millionof net unrealized depreciation on equitydebt investments, offset by $2.2$2.5 million of net unrealized appreciation from exited investments (a portion of which resulted in a reclassification to realized losses), and $0.3 million of unrealized appreciation on foreign currency forward contracts. For the six months ended March 31, 2019, this consisted of $9.4 million of unrealized depreciation of debt investments and $0.3$1.6 millionof net reclassificationsunrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized loss (resulting in unrealized appreciation)gains).

Note 10. Concentration of Credit Risks
The Company deposits its cash with financial institutions and at times such balances may be in excess of the FDIC insurance limit. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring their financial stability.

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Note 11. Related Party Transactions

As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $1.6$1.4 million and $2.2$1.4 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree. Oaktree permanently waived all Part I incentive fees incurred during the three months ended March 31, 2020 and FSM.as of March 31, 2020, this liability only included unpaid base management fees.
New
Investment Advisory Agreement
Effective October 17, 2017 and as of December 31, 2017, theThe Company is party to the New Investment Advisory Agreement with Oaktree.Agreement. Under the New Investment Advisory Agreement, the Company pays Oaktree a fee for its services under the New Investment Advisory Agreement consisting of two components: a base management fee and an incentive fee. The cost of both the base management fee payable to Oaktree and any incentive fees earned by Oaktree is ultimately borne by common stockholders of the Company.
Prior to October 17, 2017, the Company was externally managed by Fifth Street Management LLC (the "Former Adviser”), an indirect, partially-owned subsidiary of Fifth Street Asset Management Inc., pursuant to an investment advisory agreement between the Company and the Former Adviser (the "Former Investment Advisory Agreement"), which was terminated on October 17, 2017.
Unless earlier terminated as described below, the New Investment Advisory Agreement will remain in effect until October 17, 2019September 30, 2021 and thereafter from year-to-year if approved annually by the Company's Board of Directors or by the affirmative vote of the holders of a majority of the outstanding voting securities of the Company, 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 1.00% of total gross assets, including any investment made with borrowings, but excluding cash and cash equivalents, is 1.00%.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 Decemberthree and six months ended March 31, 2017,2020, the base management fee incurred under the New Investment Advisory Agreement was $1.2$1.4 million whichand $2.9 million, respectively. For the three and six months ended March 31, 2019, the base management fee incurred under the Investment Advisory Agreement was payable to Oaktree.$1.5 million and $2.9 million, respectively.
Incentive Fee
The incentive fee consists of two parts. Under the New Investment Advisory Agreement, the first part of the incentive fee (the “incentive fee on income)income" or "Part I incentive fee") is calculated and payable quarterly in arrears based upon the “pre-incentive fee net investment income” of the Company for the immediately preceding quarter. The payment of the incentive fee on income is subject to payment of a preferred return to investors each quarter (i.e., a “hurdle rate”), expressed as a rate of return on the value of the Company’s net assets at the end of the most recently completed quarter, of 1.50%, subject to a “catch up” feature.
For this purpose, “pre-incentive fee net investment income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies, other than fees for providing managerial assistance) accrued during the fiscal quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the New Administration Agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.
Under the New Investment Advisory Agreement, the calculation of the incentive fee on income for each quarter is as follows:
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”
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

“catch-up” provision, and it is intended to provide Oaktree with an incentive fee of 17.5% on all of the Company’s pre-
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


incentivepre-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.
Oaktree permanently waived all Part I incentive fees incurred during the three months ended March 31, 2020. For the period from October 17, 2017 to Decembersix months ended March 31, 2017,2020, the first part of thePart I incentive fee (net of waivers) incurred under the New Investment Advisory Agreement was $0.1$0.9 million. To ensure complianceFor the three and six months ended March 31, 2019, the Part I incentive fee (net of the transactions contemplated by that certain asset purchase agreement, dated as of July 13, 2017 by and among Oaktree, FSM, and, for certain limited purposes, FSAM and Fifth Street Holdings L.P., Oaktree entered into a two-year contractual fee waiver with the Company that will waive, to the extent necessary, any management or incentive fees payablewaivers) 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 described below. Amounts potentially subject to waiver are accrued quarterly on a cumulative basiswas $1.0 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$1.5 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 gaingains incentive fees under the New Investment Advisory Agreement. Any realized capital gains, realized capital losses, unrealized capital appreciation and unrealized capital depreciation with respect to the Company’s portfolio as of the end of the fiscal year endingended September 30, 2018 will beare excluded from the calculations of the second part of the incentive fee. As of March 31, 2020, the Company has not paid any capital gains incentive fees, and no amount is currently payable under the terms of the Investment Advisory Agreement.

GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a theoretical "liquidation basis." A fee so calculated and accrued would not be payable under applicable law and may never be paid based upon the computation of capital gains incentive fees in subsequent periods. Amounts ultimately paid under the Investment Advisory Agreement will be consistent with the formula reflected in the Investment Advisory Agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation. Any realized capital gains and losses and cumulative unrealized capital appreciation and depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the GAAP accrual. If such amount is positive at the end of a period, then GAAP requires the Company to record a capital gains incentive fee equal to 17.5% of such cumulative amount, less the aggregate amount of actual capital gains incentive fees paid 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 six months ended March 31, 2020 and 2019, the Company did not accrue, and cumulatively has not accrued, any capital gains incentive fees.

To ensure compliance with Section 15(f) of the Investment Company Act, Oaktree entered into a two-year contractual fee waiver with the Company, which ended on October 17, 2019, pursuant to which Oaktree waived any management or incentive fees payable under the Investment Advisory Agreement that exceeded what would have been paid to the Former Adviser in the aggregate under the Former Investment Advisory Agreement. At the end of the two-year period, Oaktree permanently waived $1.2 million, of which $0.1 million was recorded for the six months ended March 31, 2020.
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 agreementInvestment 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.
Prior Investment Advisory Agreement
The following is a description of the 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 June 27, 2013 was most recently approved by the Company’s Board of Directors on August 7, 2017, and was effective June 27, 2013 through its termination on October 17, 2017.
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.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Base Management Fee
The base management fee was calculated at an annual rate of 1.0% 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 Former Investment Advisory Agreement with FSM was $0.2 million and $1.4 million (net of waivers), respectively, all of which were payable to FSM. For 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.
Incentive Fee
The incentive fee paid to the Former Adviser 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 1.5% per quarter, 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 1.0% 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 the Former Adviser in any fiscal quarter in which the Company’s pre-incentive fee net investment income did not exceed the preferred return rate of 1.5% (the “preferred return”);
50% 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 2.5% in any fiscal quarter was payable to the Former Adviser. The Company’s refers to this portion of its pre-incentive fee net investment income (which exceeds the preferred return rate but is less than or equal to 2.5%) as the “catch-up.” The “catch-up” provision was intended to provide the Former Adviser 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 2.5% in any quarter; and
20% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeded 2.5% in any quarter was payable to the Former Adviser once the preferred return was reached and the catch-up was achieved (20% of all pre-incentive fee net investment income thereafter was allocated to FSM).

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.
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) commencing on September 30, 2013 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.
For the period from October 1, 2017 to October 17, 2017 and for the three months ended December 31, 2016, incentive fees incurred under the Former Investment Advisory Agreement with FSM were less than $0.1 million and $1.0 million, respectively.
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 the Former Investment Advisory Agreement 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.

OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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 U.S. Securities and Exchange Commission, or 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, 2017 and throughout the Company’s 2017 fiscal year, the Company was party to 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, facilities and personnel, the Company reimbursed 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 and six months ended DecemberMarch 31, 2017,2020, the Company accrued administrative expenses of $0.4$0.3 million and $0.6 million, respectively, including $0.1 million and $0.1 million, respectively, of general and administrative expenses. Of these amounts, $0.1 million was due to the Former Administrator for administrative expenses incurred prior to October 17, 2017 and $0.3 million was due to Oaktree Administrator. For the three and six months ended DecemberMarch 31, 2016,2019, the Company accrued administrative expenses of $0.5$0.3 million and $0.8 million, respectively, including $0.4$0.1 million and $0.1 million, respectively, of general and administrative expenses, which were due to the Former Administrator.expenses.
As of DecemberMarch 31, 20172020 and September 30, 2017, $0.72019, $1.0 million and $0.5$1.5 million 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.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 12. Financial Highlights
 Three months ended
December 31, 2017
 Three months ended
December 31, 2016
 Three months ended
March 31, 2020
 Three months ended
March 31, 2019
 Six months ended
March 31, 2020
 Six months ended
March 31, 2019
Net asset value at beginning of period $9.97
 $11.06
 $9.71
 $9.43
 $9.65
 $10.04
Net investment income (5)(1) 0.15
 0.20
 0.15
 0.18
 0.32
 0.34
Net unrealized appreciation (depreciation) on investments and secured borrowings (5) 0.06
 (0.18)
Net realized gain (loss) on investments (5) (0.15) 0.01
Net unrealized appreciation (depreciation) (1) (2.28) 0.30
 (2.22) (0.38)
Net realized gains (losses) (1) (0.25) (0.01) (0.27) 0.05
Distributions to stockholders (5) (0.19) (0.23) (0.16) (0.16) (0.31) (0.31)
Net asset value at end of period $9.84
 $10.86
 $7.17
 $9.74
 $7.17
 $9.74
Per share market value at beginning of period $8.80
 $8.56
 $8.19
 $7.75
 $8.25
 $8.65
Per share market value at end of period $8.40
 $8.71
 $5.54
 $8.10
 $5.54
 $8.10
Total return (1)(2) (2.40)% 4.37% (30.35)% 6.50% (29.56)% (2.70)%
Common shares outstanding at beginning of period 29,466,768
 29,466,768
 29,466,768
 29,466,768
 29,466,768
 29,466,768
Common shares outstanding at end of period 29,466,768
 29,466,768
 29,466,768
 29,466,768
 29,466,768
 29,466,768
Net assets at beginning of period $293,636,434
 $325,829,394
 $286,016,910
 $277,977,380
 $284,450,006
 $295,745,420
Net assets at end of period $289,943,716
 $319,924,168
 $211,233,898
 $287,105,458
 $211,233,898
 $287,105,458
Average net assets (2)(3) $293,615,733
 $322,852,759
 $250,391,447
 $283,810,200
 $268,606,479
 $286,080,329
Ratio of net investment income to average net assets (3)(4) 6.14 % 7.23% 7.31% 7.45% 6.90% 7.07%
Ratio of total expenses to average net assets (3)(4) 8.51 % 7.29% 9.70% 10.45% 9.64% 9.91%
Ratio of net expenses to average net assets (3)(4) 8.36 % 6.98% 9.26% 10.38% 9.40% 9.58%
Ratio of portfolio turnover to average investments at fair value 22.79 % 10.51% 16.56% 6.33% 24.67% 18.71%
Weighted average outstanding debt (4)(5) $269,289,409
 $271,725,061
 $318,431,525
 $295,806,800
 $307,222,374
 $275,199,108
Average debt per share (5)(1) $9.14
 $9.22
 $10.81
 $10.04
 $10.43
 $9.34
Asset coverage ratio 214.13 % 224.65%
Asset coverage ratio at end of period (6) 164.57% 193.32% 164.57% 193.32%
        
(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 is not annualized during interim periods.
(2)(3)Calculated based upon the weighted average net assets for the period.
(3)(4)Interim periods are annualized.
(4)(5)Calculated based upon the weighted average of loans payableoutstanding debt for the period.
(5)(6)Calculated based upon weighted average sharesBased on outstanding for the period.senior securities of $327.2 million and $307.7 million as of March 31, 2020 and 2019, respectively.

Note 13. Derivative Instruments
The Company enters into forward currency contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the 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 ("ISDA Master Agreement") with its derivative counterparty, JPMorgan Chase Bank, N.A. The ISDA Master Agreement permits a single net payment in the event of a default or similar event. No cash collateral has been pledged to cover obligations and no cash collateral has been received from the counterparty with respect to the Company's forward currency contracts.
Net unrealized gains or losses on foreign currency contracts are included in “net unrealized appreciation (depreciation)” and net realized gains or losses on forward currency contracts are included in “net realized gains (losses)” in the accompanying Consolidated Statements of Operations. Forward currency contracts are considered undesignated derivative instruments.


OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Certain information related to the Company’s foreign currency forward contracts is presented below as of March 31, 2020.
Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets Gross Amount of Recognized Liabilities Balance Sheet Location of Net Amounts
Foreign currency forward contract $3,400,626
 £2,482,500
 8/18/2020 $316,967
 $
 Derivative asset
Certain information related to the Company’s foreign currency forward contracts is presented below as of September 30, 2019.
Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets Gross Amount of Recognized Liabilities Balance Sheet Location of Net Amounts
Foreign currency forward contract $6,106,199
 £4,934,900
 10/15/2019 $20,876
 $
 Derivative asset

Note 13.14. Commitments and Contingencies

SEC Examination and Investigation
On March 23, 2016, the Division of Enforcement of the Securities and Exchange Commission (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 OCSL. 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 certain previously disclosed OCSL and FSAM securities class actions and OCSL derivative actions. 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 OCSL, (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 OCSL, (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
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


and records. The formal order cites various provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, 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 DecemberMarch 31, 20172020 and September 30, 2017,2019, off-balance sheet arrangements consisted of $39.5$19.6 million and $43.5$24.2 million, respectively, of unfunded commitments to provide debt and equity financing to certain of the Company's portfolio companies. Such commitments are subject to the 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 Consolidated Statements of Assets and Liabilities.
A list of unfunded commitments by investment (consisting of revolvers, term loans and the OCSI Glick JV Subordinated Notes and LLC equity interests) as of DecemberMarch 31, 20172020 and September 30, 20172019 is shown in the table below:
  December 31, 2017 September 30, 2017
 FSFR Glick JV LLC $15,864,217
 $16,159,368
 MHE Intermediate Holdings 6,749,698
 6,749,698
 Triple Point Group Holdings, Inc. 4,968,590
 4,968,590
 Motion Recruitment Partners LLC 2,900,000
 2,900,000
 Asset International 2,500,000
 
 PowerPlan, Inc. 2,100,000
 2,100,000
 Impact Sales, LLC 1,078,555
 1,078,125
 Ministry Brands, LLC 927,693
 1,857,967
 Valet Merger Sub, Inc. 833,333
 833,333
 Internet Pipeline, Inc. 800,000
 800,000
 Metamorph US 3, LLC (1) 720,000
 720,000
 4 Over International, LLC 68,452
 68,452
 BeyondTrust Software, Inc. 
 3,605,000
 Executive Consulting Group, Inc. 
 800,000
 Sailpoint Technologies, Inc. 
 300,000
 Systems Inc. 
 600,000
Total $39,510,538
 $43,540,533
  March 31, 2020 September 30, 2019
OCSI Glick JV LLC (1) $13,998,029
 $13,998,029
MRI Software LLC 1,234,253
 
Coyote Buyer, LLC 847,860
 
PaySimple, Inc. 796,962
 2,450,000
OEConnection LLC 735,931
 731,183
Accupac, Inc. 716,984
 
Apptio, Inc. 692,308
 692,308
iCIMs, Inc. 294,118
 294,118
MHE Intermediate Holdings, LLC 131,363
 4,466,338
GKD Index Partners, LLC 88,889
 444,444
Ministry Brands, LLC 42,500
 80,000
4 Over International, LLC 
 60,629
Mindbody, Inc. 
 952,381
Total $19,579,197
 $24,169,430
_______ ___________ 
(1) This investment was on cash non-accrual status as of DecemberMarch 31, 2017 and September 30, 2017.

2020.
Note 14.15. 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 and six months ended DecemberMarch 31, 2017,2020, except as discussed below.
DividendDistribution Declaration
On February 5, 2018,April 30, 2020, the Company’s Board of Directors declared a quarterly dividenddistribution of $0.14$0.125 per share, payable on MarchJune 30, 20182020 to stockholders of record on MarchJune 15, 2018.
Change in Investment Policy
Effective January 19, 2018, the Company was no longer subject to a policy to invest, under normal market conditions, at least 80% of the value of its net assets (plus borrowings for investment purposes) in floating rate senior loans.
Citibank Facility Amendment2020.
OAKTREE STRATEGIC INCOME CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Investment Advisory Agreement
On January 31, 2018,May 4, 2020, Oaktree effected the novation of the Investment Advisory Agreement to Oaktree Fund Advisors, LLC, a registered investment adviser under common control with Oaktree.  Immediately following such novation, the Company and Oaktree Fund Advisors, LLC entered into an Amended and Restated Loan and Security Agreementa new investment advisory agreement with OCSI Senior Funding II LLC (formerly FS Senior Funding II LLC), the Company’s wholly-owned, special purpose financing subsidiary,same terms, including fee structure, as the borrower, the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent (the “Restated Citibank Facility”).
The Restated Citibank Facility permits up to $100 million of borrowings. Borrowings under the Restated Citibank Facility are subject to certain customary advance rates and accrue interest at a rate equal to LIBOR plus 1.70% per annum on broadly syndicated loans and LIBOR plus 2.25% per annum on all other eligible loans during the reinvestment period. Following termination of the reinvestment period, borrowings under the Restated Citibank Facility accrue interest at rates equal to LIBOR plus 3.50% per annum and LIBOR plus 4.00% per annum during the subsequent two years, respectively. In addition, for the duration of the reinvestment period there is a non-usage fee payable of 0.50% per annum on the undrawn amount under the Restated Citibank Facility. The non-usage fee is increased pursuant to a formula if, after the ramp up period, the advances outstanding on the Restated Citibank Facility do not exceed 70% of the aggregate commitments by lenders.
The reinvestment period under the Restated Citibank Facility ends January 30, 2021 and the final maturity date is January 31, 2023. The Restated Citibank Facility requires the Company to comply with certain affirmative and negative covenants and other customary requirements for similar credit facilities.





Investment Advisory Agreement.



Schedule 12-14
Oaktree Strategic Income Corporation
Schedule of Investments in and Advances to Affiliates
ThreeSix months ended DecemberMarch 31, 20172020
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                    
FSFR Glick JV LLC    Multi-sector holdings                
 Subordinated Note, LIBOR+8% cash due 10/20/2021 9.23%   $64,524,032
 $
 $1,493,848
 $57,606,674
 $295,151
 $(721,175) $57,180,650
 19.7%
 87.5% LLC equity interest (5)       
 
 
 
 
 
 —%
Total Control Investments     $64,524,032
 $
 $1,493,848
 $57,606,674
 $295,151
 $(721,175) $57,180,650
 19.7%
                     
Affiliate Investments                    
Ameritox Ltd. (6)   Healthcare services                
First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 6.69%   $8,302,941
 $28
 $
 $935,913
 $75,916
 $(1,320) $1,010,509
 0.3%
3,309,873.6 Class A Preferred Units       
 
 
 
 
 
 —%
327,393.6 Class B Preferred Units       
 
 
 
 
 
 —%
1,007.36 Class A Units       
 
 
 
 
 
 —%
Total Affiliate Investments     $8,302,941
 $28
 $
 $935,913
 $75,916
 $(1,320) $1,010,509
 0.3%
Total Control & Affiliate Investments     $72,826,973
 $28
 $1,493,848
 $58,542,587
 $371,067
 $(722,495) $58,191,159
 20.1%
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, 2019
 Gross
Additions (3)
 Gross
Reductions (4)
 
Fair Value at 
March 31, 2020
 % of Total Net Assets
Control Investments                    
OCSI Glick JV LLC    Multi-sector holdings                
 Subordinated Note, LIBOR+6.50% cash due 10/20/2028     $66,045,551
 $
 $1,436,726
 $54,326,418
 $
 $(16,492,488) $37,833,930
 17.9%
 87.5% LLC equity interest (5)       
 
 
 
 
 
 —%
Total Control Investments     $66,045,551
 $
 $1,436,726
 $54,326,418
 $
 $(16,492,488) $37,833,930
 17.9%

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 (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. As of March 31, 2020, the OCSI Glick JV is on cash non-accrual status.
(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 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 the OCSI Glick JV. The OCSI Glick JV is capitalized as transactions are completed and all portfolio and investment decisions in respect to the OCSI Glick JV must be approved by the OCSI Glick JV investment committee consisting of representatives of the Company and GF Equity Funding (with approval from a representative of each required).




Schedule 12-14
Oaktree Strategic Income Corporation
Schedule of Investments in and Advances to Affiliates
Six months ended March 31, 2019
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, 2018
 Gross
Additions (3)
 Gross
Reductions (4)
 
Fair Value at 
March 31, 2019
 % of Total Net Assets
Control Investments                    
OCSI Glick JV LLC    Multi-sector holdings                
 Subordinated Note, LIBOR+6.50% cash due 10/20/2021 9.01%   $66,125,709
 $
 $2,958,208
 $58,512,170
 $
 $(2,494,767) $56,017,403
 19.5%
 87.5% LLC equity interest (5)       
 
 
 
 
 
 —%
Total Control Investments     $66,125,709
 $
 $2,958,208
 $58,512,170
 $
 $(2,494,767) $56,017,403
 19.5%


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 Consolidated Schedules of Investments as of March 31, 2019 included in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2019.
(2)Represents the total amount of interest (net of non-accrual amounts), fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments 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 GF Equity Funding, the Company co-invests through the OCSI Glick JV. The OCSI Glick JV is capitalized as transactions are completed and all portfolio and investment decisions in respect to the OCSI 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)This investment was on cash non-accrual status as of December 31, 2017.



Schedule 12-14
Oaktree Strategic Income Corporation
Schedule of Investments in and Advances to Affiliates
Three months ended December 31, 2016


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, 2016
 Gross
Additions (3)
 Gross
Reductions (4)
 
Fair Value at 
December 31, 2016
 % of Total Net Assets
Control Investments                    
FSFR Glick JV LLC    Multi-sector holdings                
 Subordinated Note, LIBOR+8% cash due 10/20/2021 8.50%   $64,005,755
 $
 $1,395,436
 $56,885,646
 $4,859,827
 $
 $61,745,473
 19.3%
 87.5% LLC equity interest (5)     
 
 187,420
 6,431,021
 
 (6,431,021) 
 —%
Total Control Investments     $64,005,755
 $
 $1,582,856
 $63,316,667
 $4,859,827
 $(6,431,021) $61,745,473
 19.3%
                     
Affiliate Investments                    
Ameritox Ltd.   Healthcare services                
First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021 6.00%   $6,436,100
 $
 $150,056
 $6,342,286
 $93,814
 $
 $6,436,100
 2.0%
3,309,873.6 Class A Preferred Units     
 
 
 3,626,150
 169,172
 
 3,795,322
 1.2%
327,393.6 Class B Preferred Units     
 
 
 358,679
 16,733
 
 375,412
 0.1%
1,007.36 Class A Units     
 
 
 2,679,343
 
 (1,415,004) 1,264,339
 0.4%
Total Affiliate Investments     $6,436,100
 $
 $150,056
 $13,006,458
 $279,719
 $(1,415,004) $11,871,173
 3.7%
Total Control & Affiliate Investments     $70,441,855
 $
 $1,732,912
 $76,323,125
 $5,139,546
 $(7,846,025) $73,616,646
 23.0%

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






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., or Oaktree, or our Investment Adviser, to reposition our portfolio and to implement our Investment Adviser’sOaktree’s future plans with respect to our business;
the ability of Oaktree to attract and retain highly talented professionals;
our business prospects and the prospects of our portfolio companies;
the impact of the investments that we expect to make;
the ability of our portfolio companies to achieve their objectives;
our expected financings and investments;investments and additional leverage we may seek to incur in the future;
the adequacy of our cash resources and working capital;
the timing of cash flows, if any, from the operations of our portfolio companies; and
the cost or potential outcome of any litigation to which we may be a party.
In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “ItemItem 1A. Risk Factors”Factors in our annual report on Form 10-K for the year ended September 30, 20172019 and elsewhere in this quarterly report on Form 10-Q.
Other factors that could cause actual results to differ materially include:
 
changes or potential disruptions in our operations, the economy, financial markets andor political environment;
risks associated with possible disruptiondisruptions in our operations or the economy generally due to terrorism, natural disasters or natural disasters;the COVID-19 pandemic;
future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companiesBusiness Development Companies or regulated investment companies, or RICs;
general consideration associated with the COVID-19 pandemic; 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 Strategic Income Corporation and its consolidated subsidiaries.
Business Overview
We are a specialty finance company dedicatedthat looks to providingprovide customized capital solutions for middle-market companies in both the syndicated and private placement 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 1940the Investment Company Act. In addition, we have qualified and elected to be treated as a RIC under the Internal Revenue Code of 1986, as amended, or the Code, for tax purposes.
As of October 17, 2017,March 31, 2020, we 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 andas amended from time to time, or the Investment Adviser, orAdvisory Agreement, between the New Investment Advisory Agreement.Company and Oaktree. Oaktree Fund Administration, LLC, or the Oaktree Administrator, or OFA, alsoa subsidiary of Oaktree, provides certain administrative and other services necessary for us to operate pursuant to an administration agreement, as amended from time to time, or the New Administration Agreement. Prior to October 17, 2017, we were externally managed and advised by Fifth Street Management LLC, or FSM or the Former Adviser, and we were named Fifth Street Senior Floating Rate Corp.
We seek to generate a stable source of current income while minimizing the risk of principal loss and, to a lesser extent, capital appreciation by providing innovative first-lien financing solutions to companies across a wide variety of industries. We invest in

companies across a variety of industries that typically possess business models we expect to be resilient in the future with underlying

fundamentals that will provide strength in futureeconomic downturns. We intend to deploy capital across credit 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. Under normal market conditions, through January 18, 2018, at least 80% of the value of our net assets plus borrowings for investment purposes will be invested in floating rate senior loans, which include both first and second lien secured debt financings. Effective January 19, 2018, the Company is no longer subject to this policy. We invest in unsecured loans, including subordinated loans and bonds, issued by private middle-market companies and, to a lesser extent, senior and subordinated loans and bonds issued by public companies and equity investments.
Our Investment AdviserOaktree intends to repositioncomplete repositioning of our portfolio in the near-term in order to (1) rotate out of a small number of investments that it views as challenged, (2) focus on increasing the size of our core private investments and (3) supplement the portfolio with broadly syndicated and select privately placed loans. We expect that our Investment Adviser will focusOaktree 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 primarily first lien floating rate senior secured financings. We expect to target investments of $10 million to $20 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 becoming our investment adviser, Oaktree has performed a comprehensive review of our portfolio and categorized our portfolio into core investments, non-core performing investments and non-accrual 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.
Since becoming our investment adviser, Oaktree alsohas reduced the investments it has identified as non-core by over $250 million, at fair value. Over time, Oaktree intends to rotate us out of approximately $84 million of investments it has identified asthe remaining non-core investments, and investments with spreads over LIBOR of less than 4.0%. Over time, Oaktree intends to modestly increase our investments in second lien secured financings towhich were approximately 10%,$34 million at fair value as of March 31, 2020. In addition, over time and under current market conditions, we generally expect to maintain a debt to equity ratio of 1.20x to 1.60x. As of March 31, 2020, our portfolio. Oaktree will seekdebt to redeploy capital from realization of existing investments into Oaktree-originated investments with higher yields.
During the three months ended December 31, 2017, the integration of our operational infrastructure, including accounting, valuation, compliance and information technology processes and systems, into the Oaktree platformequity ratio 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.1.55x.
Business Environment and Developments
The opportunity set in credit is still dominated by the search for yield as central banks in Japan and Europe continue their accommodative monetary policies. This glut of capital is resulting in significant inflows into sub-investment grade credit from investors, including private equity sponsors, seeking higher spreads as investment grade and highly rated sub-investment grade credit trade at close-to-historically tight levels.
During the quarter ended December 31, 2017, the spread on the BAML High Yield Single B Index ranged between 3.34% and 3.99% and was 3.69% as of December 31, 2017. In addition, 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 yield on our portfolio of 7.2% as of December 31, 2017 compares favorably in the current environment.
We believe that the fundamentalseconomic impact of middle-market companies remain strong,the COVID-19 pandemic has contributed to significant market volatility and disruption, which drovemay have lasting effects on the highest lending levelU.S. and global financial markets and have caused (and may cause further) economic uncertainties or deterioration in three years. the performance of the middle market in the United States and worldwide.
In particular, the disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of credit risk in the broadly syndicated market. This widening of spreads makes it more difficult for middle market businesses to access capital as lenders could become more selective in evaluating investment opportunities, equity sponsors delay transactions given earnings uncertainty and sellers are hesitant to accept lower purchase price multiples.
In this type of environment, we believe attractive risk-adjusted returns can be achieved by investingmaking loans to companies in companies that cannot efficiently access traditional debt capital markets. Wethe middle market. Given the breadth of Oaktree’s investment platform, we believe that the Company haswe have the resources and experience to source, diligence and structure investments in these companies and isare well placed to generate attractive returns for investors.

New Investment Advisory Agreement with Oaktree
Upon the closingWe have proactively taken a number of actions to evaluate and support our portfolio companies in light of the transactions, or the Transaction, contemplated by the Asset Purchase Agreement, or the Purchase Agreement, byCOVID-19 pandemic, including outreach to a variety of management teams and among Oaktree, our Former Adviser and, for certain limited purposes, Fifth Street Asset Management Inc., or FSAM, the indirect, partial ownersponsors.  We have established a dialogue with many of our Former Adviser,portfolio companies and Fifth Street Holdings L.P., the direct, partial ownerare especially focused on those that might have moderate to higher risk of material impacts from COVID-19. We believe that these efforts to identify vulnerable credits will allow us to address potential problems early and provide constructive solutions to our portfolio companies.
As of March 31, 2020, 100% of our Former Adviser, on October 17, 2017, Oaktree becamedebt investment portfolio (at cost and fair value) bore interest at floating rates indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly or monthly at the investment adviser to each of Oaktree Specialty Lending Corporation, or OCSL, 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, as a result, its immediate termination. The material terms of the services to be provided under the New Investment Advisory Agreement, other than the fee structure, are substantially the same as the Former Investment Advisory Agreement, except that services are provided by Oaktree. See “Note 11. Related Party Transactions-New Investment Advisory Agreement” and “-Administrative Services” in the notes to the accompanying Consolidated Financial Statements.
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 asborrower’s option.  As a result of the closingCOVID-19 pandemic and the related decision of the TransactionU.S. Federal Reserve to reduce certain interest rates, LIBOR decreased in March 2020. A prolonged reduction in interest rates will result in a decreases in our total investment income and could result in a decrease in our net investment income to the extent the decreases are not offset by an increase in the spread on our floating rate investments, a decrease in our interest expense or any expressa reduction or implied terms, conditions or understandings applicable thereto duringwaiver of our incentive fee on income. In July 2017, the two-year period after the closinghead of the Transaction.United Kingdom Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S.-dollar LIBOR with the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements, backed by Treasury securities. Although there have been a few issuances utilizing SOFR or the Sterling Over Night Index Average, an alternative reference rate that is based on transactions, it remains unknown whether these alternative reference rates will attain market acceptance as replacements for LIBOR.  If LIBOR ceases to exist, we may need to renegotiate any credit agreements extending beyond 2021 with our prospective portfolio companies that utilize LIBOR as a factor in determining the interest rate.  The reinvestment period of each of our borrowing facilities in place as of March 31, 2020 ends prior to the end of 2021 (and therefore prior to any phase out of LIBOR); however, we expect that any refinancings or future borrowing facilities that bear interest at floating rates indexed to LIBOR (or certain amendments to current borrowing facilities) would include procedures for the selection of a replacement reference rate following any phase out of LIBOR.  Certain of the loan agreements with our portfolio companies have included fallback language in the event that LIBOR becomes unavailable.  This language generally provides that the administrative agent may identify a replacement reference rate, typically with the consent of (or prior consultation with) the borrower.  In certain cases, the administrative

agent will be required to obtain the consent of either a majority of the lenders under the facility, or the consent of each lender, prior to identifying a replacement reference rate.  Alternatively, certain of the loan agreements with our portfolio companies do not include any fallback language providing a mechanism for the parties to negotiate a new reference interest rate and will instead revert to the base rate in the event LIBOR ceases to exist. It remains unclear whether the cessation of LIBOR will be delayed due to COVID-19 or what form any delay may take, and there are no assurances that there will be a delay. It is also unclear what the duration and severity of COVID-19 will be, and whether this will impact LIBOR transition planning. COVID-19 may also slow regulators’ and others’ efforts to develop and implement alternative reference rates, which could make LIBOR transition planning more difficult, particularly if the cessation of LIBOR is not delayed but alternatives do not develop.
Critical Accounting Policies
Basis of Presentation
Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the Consolidated Financial Statementsconsolidated financial statements have been made. All intercompany balances and transactions have been eliminated. We are an investment company following the accounting and reporting guidance in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 946, Financial Services-Investment Companies, or ASC 946.
Investment Valuation
We report our investments for which current market values are not readily available at fair value. We value our investments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820, which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices derived from such prices over entity-specific inputs. Where observable prices or inputs are not available or reliable, valuation techniques are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments' complexity.

Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follow:follows:

Level 1 - Unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data at the measurement date for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
If inputs used to measure fair value fall into different levels of the fair value hierarchy, an investment's level is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. This includes investment securities that are valued using "bid" 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, our Investment AdviserOaktree obtains and analyzes readily available market quotations provided by independent pricing servicesvendors and brokers for all of our senior secured debt investments for which quotations are available. In determining the fair value of a particular investment, pricing servicesvendors and brokers use observable market information, including both binding and non-binding indicative quotations.
Our Investment AdviserWe seek to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If we are unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within our set threshold, we seek to obtain a quote directly from a broker making a market for the asset. Oaktree evaluates the quotations provided by independent pricing servicesvendors and company specific data that could affect the credit quality and/or fair valuebrokers based on available market information, including trading activity of the investment. Investments for which market quotationssubject or similar securities, or by performing a comparable security analysis to ensure that fair values are readily available may be valued at such market quotations.reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In orderaddition to validate market quotations, our Investment Adviser looks at a numberongoing monitoring and back-testing,

Oaktree performs due diligence procedures over pricing vendors to understand their methodology and controls to support their use in the valuation process. Generally, we do not adjust any of factors to determine ifthe prices received from these sources.
If the quotations obtained from pricing vendors or brokers are representative of fair value, including the source and nature of the quotations. Our Investment Adviser doesdetermined to not adjust the prices unless it has a reason to believe market quotationsbe reliable or are not reflective of the fair value of an investment. Examples of events that would cause market quotations to not reflect fair value could include cases when a security trades infrequently causing a quoted purchase or sale price to become stale or in the event of a "fire sale" by a distressed seller. In these instances,readily available, we value such investments by using the valuation procedure that we use with respect to assets for which market quotations are not readily available (as discussed below).

If the quotation provided by the pricing service is based on only one or two market sources, we perform additional procedures to corroborate such information, which may include the market yield technique discussed below and a quantitative and qualitative assessmentany of the credit quality and market trends affecting the portfolio company.
We perform detailed valuations of our debt and equity investments for which market quotations are not readily available or are deemed not to represent fair value of the investments. We typically use three different valuation techniques. The first valuation technique is the transaction precedent technique, which utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable. The second valuation technique is an analysis of the enterprise value, or EV, of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that we are deemed to control under the 1940Investment Company Act. To estimate the EV of a portfolio company, the Investment AdviserOaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company, and competitive dynamics in the company’s industry. The Investment AdviserOaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company: (i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase price multiplesprices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company. We may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and we consider the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, we depend on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.
We estimate the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk-free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.
Our Board of Directors undertakes a multi-step valuation process each quarter in connection with determining the fair value of our investments:
The quarterly valuation process begins with each portfolio company or investment being initially valued by our Investment Adviser’sOaktree’s valuation team in conjunction with the Investment Adviser’sOaktree’s portfolio management team and investment professionals responsible for each portfolio investment;
Preliminary valuations are then reviewed and discussed with management of our Investment Adviser;Oaktree;
Separately, independent valuation firms engaged by our Board of Directors prepare valuations of our investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to us and provide such reports to our Investment AdviserOaktree and the Audit Committee of our Board of Directors;
The Investment AdviserOaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;
The Audit Committee reviews the preliminary valuations with our Investment Adviser,Oaktree, and our Investment AdviserOaktree responds and supplements the preliminary valuations to reflect any discussions between our Investment AdviserOaktree and the Audit Committee;
The Audit Committee makes a recommendation to our full Board of Directors regarding the fair value of the investments in our portfolio; and
Our Board of Directors discusses valuations and determines the fair value of each investment in our portfolio.
The fair value of our investments as of DecemberMarch 31, 20172020 and September 30, 20172019 was determined in good faith by our Board of Directors. Our Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of our portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that

assistance. As of DecemberMarch 31, 2017, 77.7%2020, 88.3% of our portfolio at fair value was valued either based on market quotations, the transactions precedent approach or corroborated by independent valuation firms. The percentage of our portfolio valued by independent valuation firms may vary from period to period based on the availability of market quotations for our portfolio investments during the respective periods. However, our Board of Directors is responsible for the ultimate

valuation of the portfolio investments at fair value as determined in good faith pursuant to our valuation policy and a consistently applied valuation process.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, approximately 88.7%88.9% and 92.1%95.8%, 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 DecemberMarch 31, 2017,2020, there were three investmentswas one investment on which we had stopped accruing cash and/or payment in kind, or PIK interest or OID income. As of March 31, 2020, we restructured our investment in the subordinated notes in OCSI Glick JV LLC, or the OCSI Glick JV, to realign the vehicle for current market conditions. We and GF Debt Funding amended the subordinated notes to (1) decrease the interest rate to 1-month LIBOR plus 4.5% per annum effective beginning on April 1, 2020, (2) extend the maturity date from October 20, 2021 to October 20, 2028 and (3) provide that the subordinated notes will not pay interest on its previously scheduled April 15, 2020 and July 15, 2020 coupon dates. Given that the notes will not pay interest for two quarters, we placed our investment in the subordinated notes of the OCSI Glick JV on cash non-accrual status and did not recognize any interest income from the OCSI Glick JV during the quarter ended March 31, 2020.
During the three months ended March 31, 2020, with the exception of two portfolio companies that modified their scheduled interest payment to PIK in order to preserve liquidity and the OCSI Glick JV, all of our portfolio companies made their scheduled interest payments.
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.
PIK Interest Income
Our investments in debt securities may contain PIK interest provisions. PIK interest, which typically represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We generally cease accruing PIK interest if there is insufficient value to support the accrual or if we do not expect the portfolio company to be able to pay all principal and interest due. Our decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; our assessment of the portfolio company's business development success; information obtained by us in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. Based on this and other information, we determine whether to cease accruing PIK interest on a loan or debt security when it is determined that PIK interest is no longer collectible. Our determination to cease accruing PIK interest on a loan or debt security is generally made well before our full write-down of sucha loan or debt security. In 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, even though we have not yet collected the cash and may never do so. Accumulated PIK interest was $0.8 million
Fee Income
Oaktree may provide financial advisory services to portfolio companies and, $0.5 millionin return, we may receive fees for capital structuring services. These fees are generally nonrecurring and are recognized by us upon the investment closing date. We may also receive additional

fees in the ordinary course of business, including servicing, amendment and prepayment fees, which are classified as fee income and recognized as they are earned or the services are rendered.
We have also structured exit fees across certain of December 31, 2017 and September 30, 2017, respectively.our portfolio investments to be received upon the future exit of those investments. These fees are typically paid to us upon the earliest to occur of (i) a sale of the borrower or substantially all of the assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs. The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments. These fees are included in net increases in loan balancesinvestment income over the life of the loan.
Dividend Income
We generally recognize dividend income on the record 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 resultreturn of contractual PIK arrangementscapital are separately identifiedrecorded as a reduction in our Consolidated Statementsthe cost basis of Cash Flows.

the investment.
Portfolio Composition
Our investments principally consist of senior loans in private middle-market companies and investments in FSFROCSI Glick JV LLC, or the OCSI Glick JV. As of DecemberMarch 31, 2017,2020, our senior loans were typically secured by a first or second lien on the assets of the portfolio company and generally havehad terms of up to ten years (but an expected average life of between three and four years). We believe the environment for direct lending remains active, and, as a result, a number of our portfolio companies were able to refinance and repay their loans during the three months ended December 31, 2017.
During the threesix months ended DecemberMarch 31, 2017,2020, we originated $136.2$128.8 million of investment commitments in 1727 new and three11 existing portfolio companies and funded $143.9$139.2 million of investments.
During the threesix months ended DecemberMarch 31, 2017,2020, we received $71.3$129.8 million in connection with the full repayments andof proceeds from prepayments, exits, of eight of our investments and an additional $90.1 million in connection with other paydowns and sales of investments.and exited 23 portfolio companies.
A summary of the composition of our investment portfolio at cost and fair value as a percentage of total investments is shown in the following tables:
  December 31, 2017 September 30, 2017
Cost:    
Senior secured debt 85.97% 86.50%
Subordinated notes of Glick JV 11.04
 10.61
LLC equity interests of Glick JV 1.22
 1.18
Purchased equity 1.77
 1.71
Total 100.00% 100.00%
  March 31, 2020 September 30, 2019
Cost:    
Senior secured loans 88.20% 88.33%
OCSI Glick JV subordinated notes 10.65
 10.54
OCSI Glick JV equity interests 1.15
 1.13
Equity securities, excluding the OCSI Glick JV 
 
Total 100.00% 100.00%

  December 31, 2017 September 30, 2017
Fair value:    
Senior secured debt 89.21% 89.53%
Subordinated notes of Glick JV 10.56
 10.28
LLC equity interests of Glick JV 
 
Purchased equity 0.23
 0.19
Total 100.00% 100.00%
  March 31, 2020 September 30, 2019
Fair value:    
Senior secured loans 92.79% 90.85%
OCSI Glick JV subordinated notes 7.21
 9.10
Equity securities, excluding the OCSI Glick JV 
 0.05
OCSI Glick JV equity interests 
 
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:
  March 31, 2020 September 30, 2019
Cost:    
Application Software 13.91% 12.98%
Multi-Sector Holdings (1) 11.80
 11.68
Diversified Support Services 5.10
 4.38
Aerospace & Defense 5.07
 5.24
Advertising 3.86
 3.84
Alternative Carriers 3.38
 2.70
Oil & Gas Storage & Transportation 3.30
 0.09
Personal Products 3.04
 0.48
Internet Services & Infrastructure 3.04
 4.54
Systems Software 2.89
 2.48
Commercial Printing 2.49
 2.47
Integrated Telecommunication Services 2.28
 2.78
Industrial Machinery 2.16
 1.49
Data Processing & Outsourced Services 2.15
 2.66
Health Care Services 2.12
 2.74
Specialized Finance 2.04
 2.43
Research & Consulting Services 1.99
 1.58
Publishing 1.97
 1.64
Health Care Technology 1.90
 1.74
Oil & Gas Refining & Marketing 1.90
 1.89
Communications Equipment 1.89
 1.55
Metal & Glass Containers 1.88
 1.41
Movies & Entertainment 1.83
 1.54
Specialty Chemicals 1.64
 0.75
Real Estate Services 1.58
 1.57
Leisure Facilities 1.51
 1.43
Trading Companies & Distributors 1.43
 1.43
Distributors 1.40
 
Biotechnology 1.28
 1.27
Interactive Media & Services 1.27
 1.89
Pharmaceuticals 1.14
 2.01
Electrical Components & Equipment 1.02
 1.02
Health Care Supplies 0.95
 
Auto Parts & Equipment 0.92
 0.92
Household Products 0.81
 0.80
Environmental & Facilities Services 0.80
 0.67
Independent Power Producers & Energy Traders 0.54
 
Construction Materials 0.53
 
Managed Health Care 0.48
 
Property & Casualty Insurance 0.29
 
General Merchandise Stores 0.25
 0.25
Specialty Stores 0.10
 
Building Products 0.07
 
Oil & Gas Exploration & Production 
 2.34
Computer & Electronics Retail 
 1.72
IT Consulting & Other Services 
 1.54
Health Care Equipment 
 1.42
Specialized REITs 
 1.38
Human Resource & Employment Services 
 1.29
Household Appliances 
 1.09
Commodity Chemicals 
 0.78
Oil & Gas Equipment & Services 
 0.10
  100.00% 100.00%

  December 31, 2017 September 30, 2017
Cost:    
 Internet software & services 21.35% 21.46%
 Multi-sector holdings (1) 12.26
 11.79
 Healthcare services 8.61
 8.41
 Advertising 5.88
 7.19
 Diversified support services 4.13
 4.00
 Human resources & employment services 3.94
 3.33
 Integrated telecommunication services 2.90
 1.87
 IT consulting & other services 2.74
 3.39
 Aerospace & defense 2.64
 1.07
 Specialized finance 2.62
 2.54
 Communications equipment 2.54
 
 Research & consulting services 2.49
 1.14
 Environmental & facilities services 2.42
 2.34
 Oil & gas equipment & services 2.40
 2.32
 Commercial printing 2.02
 1.96
 Commodity chemicals 1.71
 
 Oil & gas exploration & production 1.70
 
 Alternative carriers 1.67
 
 Distributors 1.47
 2.14
 Pharmaceuticals 1.45
 1.50
 Trucking 1.40
 0.67
 Security & alarm services 1.37
 1.33
 Food retail 1.29
 1.66
 Personal products 1.12
 1.08
 Auto parts & equipment 1.00
 0.97
 Data processing & outsourced services 0.99
 1.62
 Household Products 0.86
 
 Healthcare distributors 0.85
 0.82
 Specialized REITs 0.83
 
 Housewares & specialties 0.82
 0.79
 Drug retail 0.69
 
 Industrial machinery 0.65
 2.06
 Specialty stores 0.51
 1.38
 General merchandise stores 0.31
 
 Specialized consumer services 0.28
 0.27
 Application software 0.09
 5.59
 Real estate services 
 2.02
 Computer & electronics retail 
 1.22
 Casinos & gaming 
 0.82
 Fertilizers & agricultural chemicals 
 0.54
 Hypermarkets & super centers 
 0.50
 Computer hardware 
 0.21
  100.00% 100.00%
  March 31, 2020 September 30, 2019
Fair value:    
Application Software 14.98% 13.52%
Multi-Sector Holdings (1) 7.21
 9.10
Diversified Support Services 5.48
 4.57
Aerospace & Defense 5.36
 5.44
Advertising 3.83
 3.51
Personal Products 3.46
 0.51
Alternative Carriers 3.40
 2.84
Internet Services & Infrastructure 3.31
 4.77
Systems Software 3.09
 2.59
Oil & Gas Storage & Transportation 3.08
 0.09
Commercial Printing 2.67
 2.58
Integrated Telecommunication Services 2.41
 2.87
Data Processing & Outsourced Services 2.26
 2.81
Industrial Machinery 2.24
 1.54
Specialized Finance 2.23
 2.42
Health Care Technology 2.15
 1.85
Health Care Services 2.15
 2.88
Publishing 2.08
 1.75
Research & Consulting Services 2.08
 1.72
Oil & Gas Refining & Marketing 2.06
 2.00
Communications Equipment 2.01
 1.57
Movies & Entertainment 1.83
 1.61
Metal & Glass Containers 1.81
 1.40
Real Estate Services 1.66
 1.65
Specialty Chemicals 1.65
 0.62
Leisure Facilities 1.61
 1.50
Trading Companies & Distributors 1.44
 1.50
Biotechnology 1.44
 1.35
Distributors 1.39
 
Interactive Media & Services 1.32
 1.99
Pharmaceuticals 1.19
 2.02
Electrical Components & Equipment 1.04
 1.01
Health Care Supplies 0.99
 
Environmental & Facilities Services 0.87
 0.67
Household Products 0.86
 0.80
Auto Parts & Equipment 0.84
 0.90
Construction Materials 0.63
 
Independent Power Producers & Energy Traders 0.61
 
Managed Health Care 0.49
 
Property & Casualty Insurance 0.37
 
General Merchandise Stores 0.22
 0.24
Specialty Stores 0.12
 
Building Products 0.08
 
Oil & Gas Exploration & Production 
 2.34
Computer & Electronics Retail 
 1.81
Health Care Equipment 
 1.51
Specialized REITs 
 1.45
Human Resource & Employment Services 
 1.34
IT Consulting & Other Services 
 1.34
Household Appliances 
 1.12
Commodity Chemicals 
 0.83
Oil & Gas Equipment & Services 
 0.07
  100.00% 100.00%
___________________
(1)This industry includes our investment in the OCSI Glick JV.


  December 31, 2017 September 30, 2017
Fair value:

    
 Internet software & services 21.64% 21.72%
 Multi-sector holdings (1) 10.56
 10.28
 Healthcare services 6.09
 5.27
 Advertising 5.91
 7.34
 Diversified support services 4.55
 4.40
 Human resources & employment services 4.27
 3.59
 Integrated telecommunication services 2.92
 2.03
 Aerospace & defense 2.87
 1.17
 Specialized finance 2.87
 2.79
 Research & consulting services 2.75
 1.25
 IT consulting & other services 2.74
 3.66
 Communications equipment 2.73
 
 Environmental & facilities services 2.63
 2.55
 Oil & gas equipment & services 2.60
 2.51
 Commercial printing 2.21
 2.13
 Commodity chemicals 1.86
 
 Oil & gas exploration & production 1.83
 
 Alternative carriers 1.80
 
 Pharmaceuticals 1.58
 1.61
 Distributors 1.56
 2.31
 Trucking 1.51
 0.73
 Security & alarm services 1.46
 1.42
 Food retail 1.41
 1.82
 Personal products 1.22
 1.18
 Auto parts & equipment 1.08
 1.03
 Data processing & outsourced services 1.08
 1.76
 Household products 0.93
 
 Healthcare distributors 0.89
 0.88
 Specialized REITs 0.89
 
 Housewares & specialties 0.88
 0.85
 Drug retail 0.74
 
 Industrial machinery 0.68
 2.22
 Specialty stores 0.55
 1.46
 General merchandise stores 0.36
 
 Specialized consumer services 0.31
 0.30
 Application software 0.04
 6.06
 Real estate services 
 2.19
 Computer & electronics retail 
 1.34
 Casinos & gaming 
 0.90
 Hypermarkets & super centers 
 0.51
 Fertilizers & agricultural chemicals 
 0.50
 Computer hardware 
 0.24
  100.00% 100.00%
___________________
(1)This industry includes our investment in the Glick JV.



Loans and Debt Securities on Non-Accrual Status
As of each of December 31, 2017 and September 30, 2017, there were three investments on which we 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:
  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 $543,893,491
 95.95% $533,828,329
 98.82% $564,231,285
 96.02% $553,084,120
 98.88%
PIK non-accrual (1) 
 
 
 
 
 
 
 
Cash non-accrual (2) 22,949,434
 4.05
 6,351,585
 1.18
 23,381,863
 3.98
 6,292,551
 1.12
Total $566,842,925
 100.00% $540,179,914
 100.00% $587,613,148
 100.00% $559,376,671
 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.
OCSI Glick JV
In October 2014, we entered into a limited liability company, or LLC, agreement with GF Equity Funding 2014 LLC, or GF Equity Funding, to form the OCSI Glick JV. On April 21, 2015, the OCSI Glick JV began investing in senior secured loans of middle-market companies. We co-invest in these securities with GF Equity Funding through the OCSI Glick JV. The OCSI Glick JV is managed by a four person boardBoard of directors,Directors, two of whom are selected by us and two of whom are selected by GF Equity Funding. The OCSI Glick JV is capitalized as transactions are completed, and portfolio decisions and investment decisions in respect of the OCSI Glick JV must be approved by the OCSI 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). The members provide capital to the OCSI Glick JV in exchange for LLC equity interests, and we and GF Debt Funding 2014 LLC, or GF Debt Funding, an entity advised by affiliates of GF Equity Funding, provide capital to the OCSI Glick JV in exchange for subordinated notes, or the Subordinated Notes. As of DecemberMarch 31, 20172020 and September 30, 2017,2019, 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 Subordinated Notes. The OCSI Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the 1940Investment Company Act.
The OCSI Glick JV's portfolio consisted of middle-market and other corporate debt securities of 2544 and 23 "eligible39 portfolio companies" (as defined in Section 2(a)(46) of the 1940 Act)companies as of DecemberMarch 31, 20172020 and September 30, 2017,2019, respectively. The portfolio companies in the OCSI Glick JV are in industries similar to those in which we may invest directly.
The OCSI Glick JV has a senior revolving credit facility with Deutsche Bank AG, New York Branch, or the JV Deutsche Bank facility, withFacility, which, as of March 31, 2020, had a statedreinvestment period end date and maturity date of April 17, 2023, whichSeptember 29, 2020 and March 29, 2024, respectively, and permitted borrowings of up to $200.0$125.0 million of borrowings as of both December 31, 2017(subject to borrowing base and September 30, 2017.other limitations). Borrowings under the JV Deutsche Bank facilityFacility are secured by all of the assets of the OCSI Glick JV and all of the equity interests in the OCSI Glick JV and bore interest at a rate equal to the 3-month London Interbank Offered Rate, or LIBOR plus 2.5%1.95% per annum with no LIBOR floor as of December 31, 2017 and September 30, 2017.floor. Under the JV Deutsche Bank facility, $56.9Facility, $98.2 million inand $91.9 million of borrowings were outstanding as of each of DecemberMarch 31, 20172020 and September 30, 2017.2019, respectively.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the OCSI Glick JV had total assets of $151.5$153.2 million and $126.7$179.7 million, respectively. Our investment in the OCSI Glick JV consisted of LLC equity interests and Subordinated Notes of $57.2$37.8 million and $54.3 million in the aggregate at fair value as of DecemberMarch 31, 2017. As of2020 and September 30, 2017, our investment consisted of LLC equity interests and Subordinated Notes of $57.6 million in the aggregate at fair value.2019, respectively. The Subordinated Notes are junior in right of payment to the repayment of temporary contributions made by us to fund investments of the OCSI Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Subordinated Notes, respectively.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, the OCSI Glick JV had total capital commitments of $100.0 million.million, $87.5 million of which was from us and the remaining $12.5 million from GF Equity Funding and GF Debt Funding. Approximately $81.9 million and $81.6$84.0 million in aggregate commitments was funded as of Decembereach of March 31, 20172020 and September 30, 2017, respectively,2019, of which $71.7$73.5 million and $71.4 million, respectively, was from us. As of each of DecemberMarch 31, 20172020 and September 30, 2017,2019, we had commitments to fund Subordinated Notes to the OCSI Glick JV of $78.8 million, of which $14.2$12.4 million and $14.5 million, respectively, was unfunded. As of each of DecemberMarch 31, 20172020 and September 30, 2017,2019, we had commitments to fund LLC equity interests in the OCSI Glick JV of $8.7 million, of which $1.6 million was unfunded.

unfunded as of each such date.
Below is a summary of the OCSI Glick JV's portfolio, followed by a listing of the individual loans in the OCSI Glick JV's portfolio as of DecemberMarch 31, 20172020 and September 30, 2017:2019:
 December 31, 2017 September 30, 2017 March 31, 2020 September 30, 2019
Senior secured loans (1) $128,805,001 $115,964,537 $164,687,221 $177,911,560
Weighted average current interest rate on senior secured loans (2) 7.02% 6.92% 5.63% 6.92%
Number of borrowers in Glick JV 25 23
Number of borrowers in the OCSI Glick JV 44 39
Largest loan exposure to a single borrower (1) $8,597,150 $11,267,524 $6,994,829 $7,425,000
Total of five largest loan exposures to borrowers (1) $38,912,938 $42,833,696 $32,459,829 $34,662,500
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans.loans at fair value.


OCSI Glick JV Portfolio as of DecemberMarch 31, 20172020
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
AI Convoy (Luxembourg) S.À.R.L.First Lien Term Loan, LIBOR+3.50% cash due 1/18/20275.34%Aerospace & Defense$3,800,000
 $3,781,000
 $3,410,500
 
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20255.49%Electrical Components & Equipment2,695,355
 2,634,049
 2,273,074
(4)
AI Plex US Acquico LLCFirst Lien Term Loan, LIBOR+5.00% cash due 7/31/20265.99%Commodity Chemicals1,994,987
 1,728,773
 1,416,441
 
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20264.70%Integrated Telecommunication Services3,117,500
 3,038,067
 2,985,006
(4)
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+5.25% cash due 12/31/20236.32%Pharmaceuticals6,994,829
 6,782,076
 6,085,500
 
Anastasia Parent, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/11/20255.20%Personal Products1,693,108
 1,399,248
 987,827
 
Ancile Solutions, Inc.First Lien Term Loan, LIBOR+7.00% cash due 6/30/20218.45%Application Software3,298,363
 3,286,170
 3,215,904
(4)
Aurora Lux Finco S.À.R.L.First Lien Term Loan, LIBOR+6.00% cash due 12/24/20267.00%Airport Services3,750,000
 3,659,880
 3,525,563
 
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20254.92%Oil & Gas Equipment & Services4,912,500
 4,894,451
 2,591,344
 
California Pizza Kitchen, Inc.First Lien Term Loan, LIBOR+6.00% cash due 8/23/2022 Oil & Gas Equipment & Services4,825,000
 4,813,378
 2,439,641
(6)
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+5.00% cash due 3/28/20246.00%Oil & Gas Refining & Marketing3,960,000
 3,920,400
 3,504,600
(4)
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/11/20265.49%Alternative Carriers5,155,000
 5,037,149
 4,156,219
(4)
Covia Holdings CorporationFirst Lien Term Loan, LIBOR+4.00% cash due 6/1/2025 Oil & Gas Equipment & Services6,877,500
 6,877,500
 3,255,224
(6)
Curium Bidco S.à.r.l.First Lien Term Loan, LIBOR+4.00% cash due 7/9/20265.07%Biotechnology4,975,000
 4,937,688
 4,726,250
(4)
eResearch Technology, Inc.First Lien Term Loan, LIBOR+4.50% cash due 2/4/20275.95%Application Software2,500,000
 2,475,000
 2,217,500
(4)
Frontier Communications CorporationFirst Lien Term Loan, LIBOR+3.75% cash due 6/15/20245.21%Integrated Telecommunication Services3,947,925
 3,883,828
 3,773,347
 
GFL Environmental Inc.First Lien Term Loan, LIBOR+3.00% cash due 5/30/20254.00%Environmental & Facilities Services303,000
 279,604
 295,299
(4)
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20245.25%Systems Software5,865,300
 5,825,375
 5,044,158
 
Guidehouse LLPSecond Lien Term Loan, LIBOR+8.00% cash due 5/1/20268.99%Research & Consulting Services5,000,000
 4,980,867
 4,325,000
(4)
Helios Software Holdings, Inc.First Lien Term Loan, LIBOR+4.25% cash due 10/24/20255.32%Oil & Gas Equipment & Services997,500
 987,525
 859,511
(4)
Houghton Mifflin Harcourt Publishers Inc.First Lien Term Loan, LIBOR+6.25% cash due 11/22/20247.24%Education Services2,962,500
 2,850,847
 2,651,438
 
Integro Parent, Inc.First Lien Term Loan, LIBOR+5.75% cash due 10/31/20226.75%Insurance Brokers3,301,120
 3,263,904
 3,027,127
 
Intelsat Jackson Holdings S.A.First Lien Term Loan, LIBOR+3.75% cash due 11/27/20235.68%Alternative Carriers4,380,943
 4,328,294
 4,060,587
(4)
LTI Holdings, Inc.First Lien Term Loan, LIBOR+3.50% cash due 9/6/20254.49%Auto Parts & Equipment2,353,073
 1,896,658
 1,769,711
 
MHE Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 3/8/20246.07%Diversified Support Services4,122,500
 4,073,573
 4,011,209
(4)
MHE Intermediate Holdings, LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/20246.45%Diversified Support Services832,853
 822,601
 810,370
(4)
 Total MHE Intermediate Holdings, LLC   4,955,353
 4,896,174
 4,821,579
 
          

Portfolio Company Industry Investment Type Maturity Date Current Interest Rate (1)(4)  Cash Interest Rate (1) Principal Cost Fair Value (2)
 Ameritox Ltd. (3)(5)  Healthcare services First Lien Term Loan 4/11/2021 LIBOR+5% (1% floor) cash 3% PIK 6.69% $2,353,200
 $2,243,202
 $286,374
   Healthcare services 119,910.76 Class B Preferred Units       
 119,911
 
   Healthcare services 368.96 Class A Common Units       
 2,174,034
 
Total Ameritox Ltd.           2,353,200
 4,537,147
 286,374
 Compuware Corporation (3)  Internet software & services First Lien Term Loan B3 12/15/2021 LIBOR+4.25% (1% floor) cash 5.63% 6,263,981
 6,212,998
 6,312,934
 Metamorph US 3, LLC (3)(5)  Internet software & services First Lien Term Loan 12/1/2020 LIBOR+5.5% (1% floor) cash 2% PIK 7.07% 6,806,211
 6,306,815
 2,584,318
 Motion Recruitment Partners LLC (3)  Human resources & employment services First Lien Term Loan 2/13/2020 LIBOR+6% (1% floor) cash 7.57% 8,597,150
 8,597,146
 8,605,596
 NAVEX Global, Inc.  Internet software & services First Lien Term Loan 11/19/2021 LIBOR+4.25% (1% floor) cash 5.82% 2,969,388
 2,960,727
 2,984,250
 Air Newco LLC  IT consulting & other services First Lien Term Loan B 3/20/2022 LIBOR+5.5% (1% floor) cash 6.94% 8,139,577
 8,121,549
 8,088,704
 CM Delaware LLC  Advertising First Lien Term Loan 3/18/2021 LIBOR+5.25% (1% floor) cash 6.94% 2,069,786
 2,068,356
 2,018,041
 Central Security Group, Inc. (3)  Specialized consumer services First Lien Term Loan 10/6/2021 LIBOR+5.625% (1% floor) cash 7.19% 3,866,103
 3,870,229
 3,885,433
Aptos, Inc. (3) Data processing & outsourced services First Lien Term Loan B 9/1/2022 LIBOR+6.75% (1% floor) cash 8.44% 7,870,000
 7,747,832
 7,791,300
Vubiquity, Inc. Application software First Lien Term Loan 8/12/2021 LIBOR+5.5% (1% floor) cash 7.19% 4,116,000
 4,089,928
 4,085,130
Novetta Solutions, LLC Diversified support services First Lien Term Loan 10/16/2022 LIBOR+5% (1% floor) cash 6.70% 5,975,734
 5,918,766
 5,813,911
SHO Holding I Corporation Footwear First Lien Term Loan 10/27/2022 LIBOR+5% (1% floor) cash 6.42% 6,370,000
 6,324,741
 6,147,050
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.57% 3,910,000
 3,870,466
 3,909,937
  Environmental & facilities services Incremental Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.57% 1,024,850
 1,004,945
 1,024,833
Total Valet Merger Sub, Inc. (3)           4,934,850
 4,875,411
 4,934,770
RSC Acquisition, Inc. Insurance brokers First Lien Term Loan 11/30/2022 LIBOR+5.25% (1% floor) cash 6.94% 3,920,064
 3,897,948
 3,880,863
Integro Parent Inc. Insurance brokers First Lien Term Loan 10/31/2022 LIBOR+5.75% (1% floor) cash 7.13% 4,901,424
 4,784,962
 4,889,170
TruckPro, LLC Auto parts & equipment First Lien Term Loan 8/6/2018 LIBOR+5% (1% floor) cash 6.69% 1,811,634
 1,810,641
 1,813,409
Falmouth Group Holdings Corp. Specialty chemicals First Lien Term Loan 12/13/2021 LIBOR+6.75% (1% floor) cash 8.44% 4,527,907
 4,491,387
 4,528,532
 Ancile Solutions, Inc. (3)  Internet software & services First Lien Term Loan 6/30/2021 LIBOR+7% (1% floor) cash 8.69% 3,990,530
 3,947,582
 3,954,615
 California Pizza Kitchen, Inc.  Restaurants First Lien Term Loan 8/23/2022 LIBOR+6% (1% floor) cash 7.57% 4,937,500
 4,925,607
 4,851,094
 MHE Intermediate Holdings, LLC (3)  Diversified support services First Lien Term Loan B 3/11/2024 LIBOR+5% (1% floor) cash 6.69% 4,218,125
 4,142,752
 4,218,125
   Diversified support services Delayed Draw Term Loan 3/11/2024 LIBOR+5% (1% floor) cash 6.69% 665,837
 633,517
 665,837
 Total MHE Intermediate Holdings, LLC           4,883,962
 4,776,269
 4,883,962
 Chloe Ox Parent LLC (3)  Healthcare services First Lien Term Loan 12/14/2024 LIBOR+5% (1% floor) cash 6.64% 6,000,000
 5,940,000
 6,022,500
 Gigamon Inc.  Systems software First Lien Term Loan 12/18/2024 LIBOR+4.5% (1% floor) cash 6.03% 6,000,000
 5,940,000
 5,970,000
 Indivior Finance Sarl (3)  Pharmaceuticals First Lien Term Loan 12/19/2022 LIBOR+4.5% (1% floor) cash 6.11% 7,500,000
 7,462,500
 7,537,500
 Tribe Buyer LLC (3)  Human resources & employment services First Lien Term Loan 2/16/2024 LIBOR+4.5% (1% floor) cash 5.68% 6,000,000
 5,985,000
 6,078,750
 Asset International, Inc. (3)  Research & Consulting Services First Lien Term Loan 12/29/2024 LIBOR+4.5% (1% floor) cash 6.19% 4,000,000
 3,920,125
 3,920,000
 Total Portfolio Investments           $128,805,001
 $129,513,666
 $121,868,206

Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
MRI Software LLCFirst Lien Term Loan, LIBOR+5.50% cash due 2/10/20266.57%Application Software$1,438,449
 $1,424,700
 $1,273,028
(4)
MRI Software LLCFirst Lien Revolver, LIBOR+5.50% cash due 2/10/20266.57%Application Software71,458
 70,029
 55,023
(4)(5)
MRI Software LLCFirst Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 Application Software
 (1,501) (28,701)(4)(5)
Total MRI Software LLC   1,509,907
 1,493,228
 1,299,350
 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 10/22/20264.99%Health Care Technology4,000,000
 3,980,000
 3,710,000
 
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20255.57%Electrical Components & Equipment5,390,000
 5,370,720
 4,581,500
 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20226.00%Application Software5,838,140
 5,797,677
 5,205,052
 
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/25/20265.45%Application Software3,635,411
 3,617,234
 2,935,595
(4)
OEConnection LLCFirst Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026 Application Software
 (1,667) (66,667)(4)(5)
Total OEConnection LLC   3,635,411
 3,615,567
 2,868,928
 
Olaplex, Inc.First Lien Term Loan, LIBOR+6.50% cash due 1/8/20267.50%Personal Products3,000,000
 2,942,299
 2,805,000
(4)
Olaplex, Inc.First Lien Revolver, LIBOR+6.50% cash due 1/8/20257.50%Personal Products324,000
 317,818
 302,940
(4)
Total Olaplex, Inc.   3,324,000
 3,260,117
 3,107,940
 
Sabert CorporationFirst Lien Term Loan, LIBOR+4.50% cash due 12/10/20265.50%Metal & Glass Containers2,900,000
 2,871,000
 2,697,000
(4)
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.00% cash due 10/27/20226.78%Footwear6,223,750
 6,200,125
 4,885,644
 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20245.95%Health Care Services5,880,000
 5,839,430
 4,939,200
(4)
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.25% cash due 10/1/20265.32%Personal Products6,483,750
 6,451,331
 5,900,212
(4)
Supermoose Borrower, LLCFirst Lien Term Loan, LIBOR+3.75% cash due 8/29/20255.20%Application Software2,893,514
 2,686,957
 2,332,172
(4)
Surgery Center Holdings Inc.First Lien Term Loan, LIBOR+3.25% cash due 9/2/20244.25%Health Care Facilities4,987,212
 4,965,611
 3,867,583
 
Thunder Finco (US), LLCFirst Lien Term Loan, LIBOR+4.25% cash due 11/26/20265.24%Movies & Entertainment3,000,000
 2,970,000
 2,347,500
(4)
Tribe Buyer LLCFirst Lien Term Loan, LIBOR+4.50% cash due 2/16/20245.50%Human Resource & Employment Services1,617,579
 1,614,977
 1,217,228
 
UFC Holdings, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 4/29/20264.25%Movies & Entertainment2,635,319
 2,616,767
 2,348,728
(4)
Verscend Holding Corp.First Lien Term Loan, LIBOR+4.50% cash due 8/27/20255.49%Health Care Technology1,742,577
 1,728,598
 1,655,448
(4)
VM Consolidated, Inc.First Lien Term Loan, LIBOR+3.25% cash due 2/28/20254.24%Data Processing & Outsourced Services4,796,753
 4,781,839
 4,365,045

WideOpenWest Finance, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 8/18/20234.25%Cable & Satellite213,453
 187,838
 199,045
 
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/20269.53%Aerospace & Defense3,000,000
 2,976,288
 2,060,010
(4)
 Total Portfolio Investments   $164,687,221
 $161,865,975
 $137,005,935
 
__________
(1) Represents the current interest rate as of DecemberMarch 31, 2017.2020. All interest rates are payable in cash, unless otherwise noted.
(2) Represents the current determination of fair value as of December 31, 2017 utilizing a similar technique as us in accordance with ASC 820. However, the determination of such fair value is not included in our Board of Directors' valuation process described elsewhere herein.
(3) This investment is held by both us and the Glick JV as of December 31, 2017.
(4) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, we have provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.
(5) This investment was onagreement and the cash non-accrual status as of December 31, 2017. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.



Glick JV Portfolio as of September 30, 2017
Portfolio Company Industry Investment Type Maturity Date Current Interest Rate (1)(4)  Cash Interest Rate (1) Principal Cost Fair Value (2)
 Ameritox Ltd. (3)(5)  Healthcare services First Lien Term Loan 4/11/2021 LIBOR+5% (1% floor) cash 3% PIK 6.33% $2,287,177
 $2,243,202
 $265,211
   Healthcare services 119,910.76 Class B Preferred Units         119,911
 
   Healthcare services 368.96 Class A Common Units         2,174,034
 
Total Ameritox Ltd.           2,287,177
 4,537,147
 265,211
 Beyond Trust Software, Inc. (3)  Application software First Lien Term Loan 9/25/2019 LIBOR+7% (1% floor) cash 8.33% 11,267,524
 11,220,478
 11,267,116
 Compuware Corporation (3)  Internet software & services First Lien Term Loan B3 12/15/2021 LIBOR+4.25% (1% floor) cash 5.49% 6,279,920
 6,225,992
 6,358,419
 Metamorph US 3, LLC (3)(5)  Internet software & services First Lien Term Loan 12/1/2020 LIBOR+5.5% (1% floor) cash 2% PIK 6.74% 6,825,900
 6,477,372
 2,592,115
 Motion Recruitment Partners LLC (3)  Human resources & employment services First Lien Term Loan 2/13/2020 LIBOR+6% (1% floor) cash 7.24% 8,659,650
 8,659,650
 8,659,223
 NAVEX Global, Inc.  Internet software & services First Lien Term Loan 11/19/2021 LIBOR+4.25% (1% floor) cash 5.49% 2,977,041
 2,967,620
 2,988,205
 Air Newco LLC  IT consulting & other services First Lien Term Loan B 3/20/2022 LIBOR+5.5% (1% floor) cash 6.82% 8,160,622
 8,141,224
 8,099,417
 CM Delaware LLC  Advertising First Lien Term Loan 3/18/2021 LIBOR+5.25% (1% floor) cash 6.58% 2,075,162
 2,073,617
 2,064,786
 New Trident Holdcorp, Inc. (3)  Healthcare services First Lien Term Loan B 7/31/2019 LIBOR+5.75% (1.25% floor) cash 7.08% 2,018,206
 2,000,877
 1,453,109
 Central Security Group, Inc. (3)  Specialized consumer services First Lien Term Loan 10/6/2021 LIBOR+5.625% (1% floor) cash 6.86% 3,876,067
 3,880,408
 3,892,211
Aptos, Inc. (3) Data processing & outsourced services First Lien Term Loan B 9/1/2022 LIBOR+6.75% (1% floor) cash 8.08% 7,920,000
 7,790,262
 7,840,800
Vubiquity, Inc. Application software First Lien Term Loan 8/12/2021 LIBOR+5.5% (1% floor) cash 6.83% 4,126,500
 4,099,195
 4,095,551
Poseidon Merger Sub, Inc. (3) Advertising Second Lien Term Loan 8/15/2023 LIBOR+8.5% (1% floor) cash 9.81% 3,000,000
 2,933,633
 3,030,000
Novetta Solutions, LLC Diversified support services First Lien Term Loan 10/16/2022 LIBOR+5% (1% floor) cash 6.34% 5,990,978
 5,932,073
 5,826,226
SHO Holding I Corporation Footwear First Lien Term Loan 10/27/2022 LIBOR+5% (1% floor) cash 6.24% 6,386,250
 6,338,479
 6,306,422
Valet Merger Sub, Inc. (3) Environmental & facilities services First Lien Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.24% 3,920,000
 3,877,655
 3,919,865
  Environmental & facilities services Incremental Term Loan 9/24/2021 LIBOR+7% (1% floor) cash 8.24% 1,027,425
 1,006,080
 1,027,390
Total Valet Merger Sub, Inc. (3)           4,947,425
 4,883,735
 4,947,255
RSC Acquisition, Inc. Insurance brokers First Lien Term Loan 11/30/2022 LIBOR+5.25% (1% floor) cash 6.58% 3,930,134
 3,912,198
 3,890,832
Integro Parent Inc. Insurance brokers First Lien Term Loan 10/31/2022 LIBOR+5.75% (1% floor) cash 7.06% 4,913,924
 4,790,511
 4,901,639
TruckPro, LLC Auto parts & equipment First Lien Term Loan 8/6/2018 LIBOR+5% (1% floor) cash 6.24% 1,823,268
 1,821,822
 1,825,054
Falmouth Group Holdings Corp. Specialty chemicals First Lien Term Loan 12/13/2021 LIBOR+6.75% (1% floor) cash 8.08% 4,610,174
 4,572,990
 4,610,400
 Ancile Solutions, Inc. (3)  Internet software & services First Lien Term Loan 6/30/2021 LIBOR+7% (1% floor) cash 8.33% 4,042,355
 3,995,621
 4,010,198
 California Pizza Kitchen, Inc.  Restaurants First Lien Term Loan 8/23/2022 LIBOR+6% (1% floor) cash 7.24% 4,950,000
 4,938,077
 4,917,008
 MHE Intermediate Holdings, LLC (3)  Diversified support services First Lien Term Loan B 3/11/2024 LIBOR+5% (1% floor) cash 6.33% 4,228,750
 4,150,304
 4,228,752
   Diversified support services Delayed Draw Term Loan 3/11/2024 LIBOR+5% (1% floor) cash 6.33% 667,510
 635,208
 667,510
 Total MHE Intermediate Holdings, LLC           4,896,260
 4,785,512
 4,896,262
 Total Portfolio Investments           $115,964,537
 $116,978,493
 $108,737,459
__________
(1) Represents the current interest rate as of September 30, 2017.period end. All LIBOR shown above is in U.S. dollars. As of March 31, 2020, the reference rates for the OCSI Glick JV's variable rate loans were the 30-day LIBOR at 0.99%, the 60-day LIBOR at 1.26%, the 90-day LIBOR at 1.45% and the 180-day LIBOR at 1.07%. Most loans include an interest rates are payable in cash, unless otherwise noted.floor, which generally ranges from 0% to 1%.
(2)
(3) Represents the current determination of fair value as of September 30, 2017March 31, 2020 utilizing a similar technique as us in accordance with ASC 820. However, the determination of such fair value is not included in our Board of Directors' valuation process described elsewhere herein.

(3)(4) This investment is held by both us and the OCSI Glick JV as of March 31, 2020.
(5) Investment has undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(6) This investment was on cash non-accrual status as of March 31, 2020. Cash non-accrual is inclusive of PIK and other non-cash income where applicable.

OCSI Glick JV Portfolio as of September 30, 2017.2019
(4)
Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
AI Ladder (Luxembourg) Subco S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 7/9/20256.60%Electrical components & equipment$2,718,993
 $2,651,270
 $2,504,016
(4)
Air Newco LPFirst Lien Term Loan, LIBOR+4.75% cash due 5/31/20246.79%IT consulting & other services7,425,000
 7,406,438
 7,437,400
 
AL Midcoast Holdings LLCFirst Lien Term Loan, LIBOR+5.50% cash due 8/1/20257.60%Oil & gas storage & transportation6,930,000
 6,860,699
 6,834,712
(4)
Altice France S.A.First Lien Term Loan, LIBOR+4.00% cash due 8/14/20266.03%Integrated telecommunication services2,977,500
 2,912,809
 2,975,639
 
Alvogen Pharma US, Inc.First Lien Term Loan, LIBOR+4.75% cash due 4/1/20226.79%Pharmaceuticals5,359,286
 5,359,286
 4,874,270
 
Ancile Solutions, Inc.First Lien Term Loan, LIBOR+7.00% cash due 6/30/20219.10%Application software3,395,374
 3,377,463
 3,327,467
(4)
Aptos, Inc.First Lien Term Loan, LIBOR+5.50% cash due 7/23/20257.70%Computer & electronics retail2,977,500
 2,947,725
 2,940,281
(4)
Brazos Delaware II, LLCFirst Lien Term Loan, LIBOR+4.00% cash due 5/21/20256.05%Oil & gas equipment & services4,937,500
 4,917,589
 4,570,273
 
California Pizza Kitchen, Inc.First Lien Term Loan, LIBOR+6.00% cash due 8/23/20228.53%Restaurants4,850,000
 4,838,318
 4,349,868
 
CITGO Petroleum Corp.First Lien Term Loan, LIBOR+5.00% cash due 3/28/20247.10%Oil & gas refining & marketing3,980,000
 3,940,200
 4,004,875
(4)
Connect U.S. Finco LLCFirst Lien Term Loan, LIBOR+4.50% cash due 9/23/20267.10%Alternative Carriers5,000,000
 4,900,000
 4,930,075
(4)
Covia Holdings CorporationFirst Lien Term Loan, LIBOR+4.00% cash due 6/1/20256.31%Oil & gas equipment & services6,912,500
 6,912,500
 5,673,745
 
Curium Bidco S.à r.l.First Lien Term Loan, LIBOR+4.00% cash due 7/9/20266.10%Biotechnology5,000,000
 4,962,500
 5,025,000
(4)
Ellie Mae, Inc.First Lien Term Loan, LIBOR+4.00% cash due 4/17/20266.04%Application software1,000,000
 995,000
 1,002,920
(4)
Falmouth Group Holdings Corp.First Lien Term Loan, LIBOR+6.75% cash due 12/14/20218.95%Specialty chemicals4,658,544
 4,626,032
 4,632,004
 
Frontier Communications CorporationFirst Lien Term Loan, LIBOR+3.75% cash due 6/15/20245.80%Integrated telecommunications services5,468,222
 5,365,594
 5,466,281
(4)
Gigamon, Inc.First Lien Term Loan, LIBOR+4.25% cash due 12/27/20246.29%Systems software5,895,000
 5,850,631
 5,732,888
 
Guidehouse LLPSecond Lien Term Loan, LIBOR+7.50% cash due 5/1/20269.54%Research & consulting services5,000,000
 4,979,290
 4,937,500
(4)
Indivior Finance S.a.r.l.First Lien Term Loan, LIBOR+4.50% cash due 12/19/20226.76%Pharmaceuticals4,340,941
 4,326,851
 3,997,290
(4)
Integro Parent, Inc.First Lien Term Loan, LIBOR+5.75% cash due 10/31/20227.80%Insurance brokers4,813,924
 4,744,243
 4,681,541
 
Intelsat Jackson Holdings S.A.First Lien Term Loan, LIBOR+3.75% cash due 11/27/20235.80%Alternative Carriers5,000,000
 4,939,169
 5,021,100
 
McDermott Technology (Americas), Inc.First Lien Term Loan, LIBOR+5.00% cash due 5/9/20257.10%Oil & gas equipment & services1,429,306
 1,406,187
 913,565
(4)
MHE Intermediate Holdings, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 3/8/20247.10%Diversified support services4,143,750
 4,089,029
 4,060,875
(4)
 First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/20247.10%Diversified support services837,128
 826,823
 820,385
(4)
 Total MHE Intermediate Holdings, LLC   4,980,878
 4,915,852
 4,881,260
 
Navicure, Inc.First Lien Term Loan, LIBOR+4.00% cash due 9/18/20266.13%Healthcare technology4,000,000
 3,980,000
 4,005,000
 

Portfolio CompanyInvestment Type Cash Interest Rate (1)(2)IndustryPrincipal Cost Fair Value (3)Notes
Northern Star Industries Inc.First Lien Term Loan, LIBOR+4.50% cash due 3/31/20256.56%Electrical components & equipment$5,417,500
 $5,396,178
 $5,336,238
 
Novetta Solutions, LLCFirst Lien Term Loan, LIBOR+5.00% cash due 10/17/20227.05%Application software5,868,628
 5,824,577
 5,760,440
 
OCI Beaumont LLCFirst Lien Term Loan, LIBOR+4.00% cash due 3/13/20256.10%Commodity chemicals6,895,000
 6,888,231
 6,903,619
(4)
OEConnection LLCFirst Lien Term Loan, LIBOR+4.00% cash due 9/24/20266.13%Application software3,655,914
 3,637,634
 3,649,059
(4)
 First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/24/2026 Application software
 (1,720) (645)(4)(5)
 Total OEConnection LLC   3,655,914
 3,635,914
 3,648,414
 
Red Ventures, LLCFirst Lien Term Loan, LIBOR+3.00% cash due 11/8/20245.04%Interactive media & services3,989,924
 3,970,677
 4,010,712
 
RSC Acquisition, Inc.First Lien Term Loan, LIBOR+4.25% cash due 11/30/20226.29%Trading companies & distributors3,849,574
 3,835,594
 3,820,702
 
Servpro Borrower, LLCFirst Lien Term Loan, PRIME+2.50% cash due 3/26/20267.50%Specialized consumer services3,980,000
 3,970,050
 3,984,975
 
SHO Holding I CorporationFirst Lien Term Loan, LIBOR+5.00% cash due 10/27/20227.26%Footwear6,256,250
 6,227,881
 5,943,438
 
Signify Health, LLCFirst Lien Term Loan, LIBOR+4.50% cash due 12/23/20246.60%Healthcare services5,910,000
 5,864,902
 5,902,613
(4)
Sunshine Luxembourg VII SARLFirst Lien Term Loan, LIBOR+4.25% cash due 9/25/20266.59%Personal products6,500,000
 6,467,500
 6,538,610
(4)
Tribe Buyer LLCFirst Lien Term Loan, LIBOR+4.50% cash due 2/16/20246.54%Human resources & employment services3,114,779
 3,109,120
 2,907,133
(4)
Triple Royalty Sub LLCFixed Rate Bond 144A 9.0% Toggle PIK cash due 4/15/2033 Pharmaceuticals3,000,000
 3,000,000
 3,105,000
 
UFC Holdings, LLCFirst Lien Term Loan, LIBOR+3.25% cash due 4/29/20265.30%Movies & entertainment2,493,573
 2,493,573
 2,503,099
(4)
Verra Mobility, Corp.First Lien Term Loan, LIBOR+3.75% cash due 2/28/20255.79%Data processing & outsourced services4,929,950
 4,913,436
 4,956,645
(4)
WP CPP Holdings, LLCSecond Lien Term Loan, LIBOR+7.75% cash due 4/30/202610.01%Aerospace & defense3,000,000
 2,974,333
 2,987,490
(4)
 Total Portfolio Investments   $177,911,560
 $176,687,612
 $173,028,098
 
__________
(1) Represents the current interest rate as of September 30, 2019. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, we have provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement.agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars. As of September 30, 2019, the reference rates for the OCSI Glick JV's variable rate loans were the 30-day LIBOR at 2.04%, the 60-day LIBOR at 2.09%, the 90-day LIBOR at 2.10%, the 180-day LIBOR at 2.06% and the PRIME at 5.00%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(5) This investment was on cash non-accrual status(3) Represents the current determination of fair value as of September 30, 2017. Cash non-accrual status2019 utilizing a similar technique as us in accordance with ASC 820. However, the determination of such fair value is inclusivenot included in our Board of PIKDirectors' valuation process described elsewhere herein.
(4) This investment is held by both us and other non-cash income, where applicable.the OCSI Glick JV as of September 30, 2019.

The cost and fair value of our aggregate investment in the OCSI Glick JV held by us was $71.6$73.2 million and $57.2$37.8 million, respectively, as of DecemberMarch 31, 20172020 and $71.3$73.2 million and $57.6$54.3 million, respectively, as of September 30, 2017. The2019. As of March 31, 2020, we placed our investment in the Subordinated Notes pay a weighted averageon cash non-accrual status and did not earn any interest rate of LIBOR plus 8.0% per annum. Foron the investment for the three months ended DecemberMarch 31, 20172020. For the six months ended March 31, 2020, we earned interest income of $1.4 million on our investment in the Subordinated Notes. For the three and Decembersix months ended March 31, 2016, the Company2019, we earned interest income of $1.5 million and $1.4$3.0 million respectively, on itsour investment in the Subordinated Notes. The LLC equity interests are dividend producing to the extent there is residual cash to be distributed on a quarterly basis.Notes, respectively. We did not earn any dividend income for the three and six months ended DecemberMarch 31, 20172020 and earned dividend income2019 with respect to our investment in the LLC equity interests of $0.2 millionthe OCSI Glick JV.
As of March 31, 2020 and September 30, 2019, the Subordinated Notes bore an interest rate of 1-month LIBOR plus 6.5% per annum. On March 31, 2020, we and GF Debt Funding amended the Subordinated Notes to (1) decrease the interest rate to 1-month LIBOR plus 4.5% per annum effective beginning on April 1, 2020, (2) extend the maturity date from October 20, 2021 to October 20, 2028 and (3) provide that the Subordinated Notes will not pay interest for the three months ended December 31, 2016 with respect to the Glick JV LLC equity interests.June 30, 2020 or September 30, 2020.

Below is certain summarized financial information for the OCSI Glick JV as of DecemberMarch 31, 20172020 and September 30, 20172019 and for the three and six months ended DecemberMarch 31, 20172020 and December 31, 2016:2019:
 December 31, 2017 September 30, 2017 March 31, 2020 September 30, 2019
Selected Balance Sheet Information:        
Investments in loans at fair value (cost December 31, 2017: $129,513,666; cost September 30, 2017: $116,978,493) $121,868,206
 $108,737,459
Investments at fair value (cost March 31, 2020: $161,865,975; cost September 30, 2019: $176,687,612) $137,005,935
 $173,028,098
Cash and cash equivalents 26,080,455
 13,891,899
 9,722,126
 1,096,498
Restricted cash 1,683,753
 2,249,575
 2,793,202
 2,616,125
Due from portfolio companies 
 7,653
Other assets 1,859,067
 1,791,077
 3,671,348
 2,937,681
Total assets $151,491,481
 $126,677,663
 $153,192,611
 $179,678,402
        
Senior credit facility payable $56,881,939
 $56,881,939
 $98,181,939
 $91,881,939
Subordinated notes payable at fair value (proceeds December 31, 2017: $73,741,750; proceeds September 30, 2017: $73,404,435) 65,319,540
 65,836,199
Subordinated notes payable at fair value (proceeds March 31, 2020: $75,480,629; proceeds September 30, 2019: $75,517,614) 43,238,789
 62,087,348
Other liabilities 29,290,002
 3,959,525
 11,771,883
 25,709,115
Total liabilities $151,491,481
 $126,677,663
 $153,192,611
 $179,678,402
Members' equity 
 
 
 
Total liabilities and members' equity $151,491,481
 $126,677,663
 $153,192,611
 $179,678,402
 Three months ended
December 31, 2017
 Three months ended
December 31, 2016
 Three months ended
March 31, 2020
 Three months ended
March 31, 2019
 Six months ended
March 31, 2020
 Six months ended
March 31, 2019
Selected Statements of Operations Information:            
Interest income $1,939,602
 $3,486,810
 $2,841,257
 $3,129,608
 $5,698,510
 $6,209,464
PIK interest income 
 17,933
Fee income 32,802
 99,653
 200,987
 
 228,697
 
Total investment income 1,972,404
 3,604,396
 3,042,244
 3,129,608
 5,927,207
 6,209,464
Interest expense 2,736,122
 2,795,065
 1,043,827
 2,968,983
 3,746,784
 5,881,728
Other expenses 38,146
 75,836
 31,197
 70,245
 98,464
 113,357
Total expenses (1) 2,774,268
 2,870,901
 1,075,024
 3,039,228
 3,845,248
 5,995,085
Net unrealized appreciation (depreciation) 1,444,107
 (7,384,097) (1,560,073) (20,404) (1,030,615) (149,106)
Realized loss on investments (642,243) (32,601)
Realized gain (loss) (407,147) (69,976) (1,051,344) (65,273)
Net income (loss) $
 $(6,683,203) $
 $
 $
 $
 __________
(1) There are no management fees or incentive fees charged at the OCSI Glick JV.

The OCSI Glick JV has elected to fair value the Subordinated Notes issued to the Companyus and GF Debt Funding under FASB ASC Topic 825, Financial Instruments - Fair Value OptionsOption. The subordinated notesSubordinated Notes are valued based on the total assets less the liabilities senior to the subordinated notesSubordinated Notes of the OCSI Glick JV in an amount not exceeding par under the enterprise value technique.
During the three and six months ended DecemberMarch 31, 20172020 and December 31, 2016,2019, we did not sell any senior secured debt investments to the OCSI Glick JV.
 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 fees, and other investment incomefees and total expenses. Net realized gain (loss) on investments and secured borrowingsgains (losses) is the difference between the proceeds received from dispositions of portfolio investmentsinvestment related assets and secured borrowingsliabilities and their stated costs. Net unrealized appreciation (depreciation) is the net change in the fair value of our investment portfoliorelated assets and secured borrowingsliabilities carried at fair value during the reporting period, including the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

Comparison of three months ended DecemberThree and Six Months Ended March 31, 20172020 and DecemberMarch 31, 20162019
Total Investment Income
Total investment income includes interest on our investments fee income and other investmentfee income.
Total investment income for the three months ended DecemberMarch 31, 20172020 and December 31, 20162019 was $10.7$10.3 million and $11.6$12.5 million, respectively. For the three months ended DecemberMarch 31, 2017,2020, this amount primarily consisted of $10.3$10.0 million of interest income from portfolio investments (which included $0.3 million of PIK interest) and $0.4 million of fee income. For the three months ended DecemberMarch 31, 2016,2019, this amount primarily consisted of $11.0$12.3 million of interest income from portfolio investments (which included $0.1 million of PIK interest), $0.4 million of fee income and $0.2 million of dividend and otherfee income. The decrease of $0.8$2.1 million in our total investment income for the three months ended DecemberMarch 31, 2017,2020, as compared to the three months ended DecemberMarch 31 2016,2019, was primarily attributabledue to a $2.3 million decrease in interest income, which mainly was the result of our investment in the OCSI Glick JV being placed on cash non-accrual status as well as a lower weighted average annual yield on our debt investments, partially offset by a $0.2 million increase in fee income, which was attributable to higher structuring fees earned.
Total investment income for the six months ended March 31, 2020 and lower dividend2019 was $21.9 million and $23.7 million, respectively. For the six months ended March 31, 2020, this amount consisted of $21.2 million of interest income earned onfrom portfolio investments (which included $0.3 million of PIK interest) and $0.8 million of fee income. For the six months ended March 31, 2019, this amount consisted of $23.5 million of interest income from portfolio investments and $0.2 million of fee income. The decrease of $1.8 million in our total investment income for the six months ended March 31, 2020, as compared to the six months ended March 31, 2019, was primarily due to a $2.3 million decrease in interest income, which was the result of our investment in the OCSI Glick JV. The weightedJV being placed on cash non-accrual status as well as a lower average annual yield on our debt investments, as of December 31, 2017, including the return on our subordinated note investmentpartially offset by a $0.5 million increase in the Glick JV,fee income, which was approximately 7.06%, as comparedattributable to 8.49% as of December 31, 2016.higher amendment fees and structuring fees earned.
Expenses
Net expenses (expenses net of fee waivers and insurance recoveries)waivers) for the three months ended DecemberMarch 31, 20172020 and December 31, 20162019 were $6.2$5.8 million and $5.7$7.3 million, respectively. The increasedecrease of $0.5$1.5 million in our net expenses for the three months ended DecemberMarch 31, 2017,2020, as compared to the three months ended DecemberMarch 31, 2016,2019, was primarily due to a $1.0 million increase in professional fees (net of insurance recoveries), $0.3 million increase in interest expense attributable to higher interest rates in the current quarter, partially offset by a $0.8 million decrease in Part I incentive fees payableas a result of Oaktree's permanent waiver of all Part I incentive fees incurred during the three months ended March 31, 2020, and a $0.3 million decrease in interest expense resulting from decreases in LIBOR.
Net expenses (expenses net of fee waivers) for the six months ended March 31, 2020 and 2019 were $12.7 million and $13.7 million, respectively. The decrease of $1.0 million in our net expenses for the six months ended March 31, 2020, as compared to our Investment Adviser,the six months ended March 31, 2019, was primarily due to a $0.5 million decrease in Part I incentives fees, which was primarily attributable to lower pre-incentive fee net investment income forOaktree's permanent waiver of all Part I incentive fees incurred during the year-over-year period.three months ended March 31, 2020, and a $0.4 million decrease in professional fees and administrator expenses.
Net Investment Income
As a result of the $0.8$2.1 million decrease in total investment income offset byand the $0.5$1.5 million increasedecrease in net expenses, net investment income for the three months ended DecemberMarch 31, 2017 reflected an approximate $1.32020 decreased by approximately $0.7 million, decrease, as compared to the three months ended DecemberMarch 31, 2016.2019.
As a result of the $1.8 million decrease in total investment income and the $1.0 million decrease in net expenses, net investment income for the six months ended March 31, 2020 decreased by approximately $0.8 million, as compared to the six months ended March 31, 2019.
Realized Gain (Loss) on Investments
Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of portfolio investments and foreign currency and the cost basis of the investments 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.
ForDuring the three months ended DecemberMarch 31, 2017,2020 and 2019, we recorded net realized loss on investmentsgains (losses) of $(7.4) million and secured borrowings was $4.4$(0.3) million, which was primarily attributablerespectively, in connection with the exit of various investments. During the six months ended March 31, 2020 and 2019, we recorded net realized gains (losses) of $(7.9) million and $1.4 million in connection with the exit of various investments. See “Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation” in the notes to the sale of our first lien term loanaccompanying Consolidated Financial Statements for more details regarding investment in New Trident Holdcorp, Inc. Forrealization events for the three and six months ended DecemberMarch 31, 2016, realized gain on investments2020 and secured borrowings was $0.1 million.2019.

Net Unrealized Appreciation (Depreciation) on Investments and Secured Borrowings
Net unrealized appreciation or depreciation is the net change in the fair value of our investments and secured borrowingsforeign currency during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Net unrealized appreciation on investments and secured borrowings was $1.7 million forFor the three months ended DecemberMarch 31, 2017, which was primarily driven by a $3.5 million reversal of previously2020 and 2019, we recorded unrealized depreciation as a result of the sale of our first lien term loan investment in New Trident Holdcorp, Inc., partially offset by other write-downs across our investment portfolio.
See “Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation on Investments” in the Consolidated Financial Statements for more details regardingnet unrealized appreciation (depreciation) on investments forof $(67.4) million and $8.8 million, respectively. For the three months ended DecemberMarch 31, 20172020, this consisted of this consisted of $71.6 million of unrealized depreciation of debt investments, offset by $3.7 million of net unrealized appreciation from exited investments (a portion of which resulted in a reclassification to realized losses), and December$0.5 million of unrealized appreciation on foreign currency forward contracts. The unrealized depreciation on debt and equity investments during the quarter was largely due to increased market volatility and wider credit spreads resulting from the onset of the COVID-19 pandemic in March 2020 and the direct impact of the COVID-19 pandemic on certain of our portfolio companies, including the impact of leverage at the OCSI Glick JV.
For the three months ended March 31, 2016.2019, this consisted of $7.9 million of unrealized appreciation of debt investments, $0.8 million of net unrealized appreciation from exited investments (a portion of which resulted in a reclassification to realized losses) and $0.1 million of unrealized appreciation of foreign currency forward contracts.
For the six months ended March 31, 2020 and 2019, we recorded net unrealized appreciation (depreciation) of $(65.5) million and $(11.0) million, respectively. For the six months ended March 31, 2020, this consisted of $68.3 million of unrealized depreciation of debt investments, offset by $2.5 million of net unrealized appreciation from exited investments (a portion of which resulted in a reclassification to realized losses), and $0.3 million of unrealized appreciation on foreign currency forward contracts.
For the six months ended March 31, 2019, this consisted of $9.4 million of unrealized depreciation of debt investments and $1.6 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains).
Financial Condition, Liquidity and Capital Resources
We have a number of alternatives available to fund our investment portfolio and our operations, including raising equity, increasing or refinancing debt and funding from operational cash flow. Additionally,We generally expect to generate liquidity wefund the growth of our investment portfolio through additional debt and equity capital, which may reduce investment size by syndicatinginclude securitizing a portion of any given transaction.our investments. We cannot assure you, however, that our efforts to grow our portfolio will be successful.  For example, our common stock has generally traded at prices below net asset value for the past several years, and we are currently limited in our ability to raise additional equity at prices below the then-current net asset value per share. We intend to continue to generate cash primarily from cash flows from operations, including interest earned and future borrowings. We may also from time to time issue securities in public or private offerings, which offerings will depend on future market conditions, funding needs and other factors. We intend to fund our future distribution 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. WeAt a special meeting of our stockholders held on July 10, 2018, our stockholders approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the Investment Company Act to us effective as of July 11, 2018.  As a result of the effectiveness of the 150% reduced asset coverage requirements, we can incur $2 of debt for each $1 of equity as compared to $1 of debt for each $1 of equity. Over time and under current market conditions, we generally expect to targetmaintain a debt to equity ratio of 0.80x1.20x to 0.90x1.60x (i.e., one dollar of equity for each $0.80$1.20 to $0.90$1.60 of debt outstanding).
Although As of March 31, 2020, we may fund the growth ofhad $327.2 million in senior securities outstanding and our investment portfolio through equity offerings, our plans to do so may not be successful. In this regard, because our common stock has at times traded at a price below our then-current net asset value per share (which has primarily been the case for several years) and we are limited in our ability to sell our common stock at a price below net asset value per share, we are currently limited in our ability to raise equity capital absent stockholder approval to issue shares of our common stock at prices below the then-current net asset value per share.coverage ratio was 164.6%.
For the threesix months ended DecemberMarch 31, 2017,2020, we experienced a net increase in cash and cash equivalents and restricted cash of $4.4$17.2 million. During that period, $18.9$6.3 million of cash was provided byused in operating activities, primarily consisting of $161.4cash used to fund $140.3 million of investments and a decrease in net payables from unsettled transactions of $16.6 million, partially offset by $140.4 million of principal payments and proceeds from the sale of investments and the cash activities related to $4.5$9.3 million of net investment income, partially offset by cash used to fund $143.9 million of investments and net revolvers.income. During the same period, cash usedprovided by financing activities was $14.5$23.4 million, primarily consisting of $8.9$32.5 million of net repaymentsborrowings under our credit facilities, and $5.4partially offset by $9.0 million of cash distributions paid to our stockholders.
For the threesix months ended DecemberMarch 31, 2016,2019, we experienced a net increasedecrease in cash and cash equivalents and restricted cash of $16.4$4.6 million. During that period, $63.2$28.1 million of cash was providedused by operating activities, primarily consisting of $66.7cash used to fund $155.8 million of investment purchases, partially offset by $112.1 million of principal payments and proceeds from the sale of investments, a decrease in net receivables from unsettled transactions of $5.6 million and the cash activities related to $5.9$10.1 million of net investment income, partially offset by cash used to fund $37.6 million of investments and net revolvers.income. During the same period, cash usedprovided by financing activities was $46.8$23.5 million, primarily consisting of $35.2$32.6 million of net repaymentsborrowings under our credit facilities $6.5and partially offset by $9.0 million of cash distributions paid to our shareholders and $5.0 million of repayments of secured borrowings.stockholders.

As of DecemberMarch 31, 2017,2020, we had $46.2$31.3 million of cash and cash equivalents (including $6.2$9.3 million of restricted cash), portfolio investments (at fair value) of $541.4$524.4 million, $2.7$1.5 million of interest, dividends and fees receivable, $45.1$77.8 million of undrawn capacity under our credit facilities (subject to borrowing base and other limitations), $16.0 million of net payables from unsettled transactions, $74.1$327.2 million of borrowings outstanding under our revolving credit facilities $177.8 million of borrowings outstanding (net of unamortized financing costs) under our $309.0 million debt securitization, or the 2015 Debt Securitization, and unfunded commitments of $39.5$19.6 million. Pursuant to the terms of the revolving credit facility with the lenders referred to therein, Citibank N.A.Facility (as defined below), as administrative agent, and Wells Fargo Bank, N.A., as collateral agent and custodian, or the Citibank facility, we arewere restricted in terms of access to $1.9$3.5 million of cash until the occurrence of the periodic distribution dates and, in connection therewith, our submission of our required periodic reporting schedules and verifications of our compliance with the terms of the credit agreement. As of DecemberMarch 31, 2017, $4.32020, $5.1 million of cash heldwas restricted due to the obligation to pay interest under the terms of the Deutsche Bank Facility (as defined below). As of March 31, 2020, $0.8 million was restricted due to minimum balance requirements under the East West Bank Facility (as defined below). As of March 31, 2020, we have analyzed cash and cash equivalents, availability under our credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believe our liquidity and capital resources are sufficient to take advantage of market opportunities in connection with the 2015 Debt Securitization was restricted.current economic climate.


As of September 30, 2017,2019, we had $43.0$14.1 million of cash and cash equivalents (including $7.4$8.4 million of restricted cash), portfolio investments (at fair value) of $560.4$597.1 million, $3.0$3.8 million of interest, dividends and fees receivable, $48.5$160.3 million of undrawn capacity under our credit facilities (subject to borrowing base and other limitations), $32.6 million of net payables from unsettled transactions, $83.0$294.7 million of borrowings outstanding under our revolving credit facilities $177.8 million of borrowings outstanding under our 2015 Debt Securitization (net of unamortized financing costs) and unfunded commitments of $43.5$24.2 million. Pursuant to the terms of the Citibank facility,Facility, we arewere restricted in terms of access to $2.0$3.4 million of cash until thethe occurrence of the periodic distribution dates and, in connection therewith, our submission of our required periodic reporting schedules and verifications of our compliance with the terms of the credit agreement. As of September 30, 2017, $5.42019, $4.3 million of cash held in connection withwas restricted due to the 2015 Debt Securitizationobligation to pay interest under the terms of the Deutsche Bank Facility. As of September 30, 2019, $0.8 million was restricted.restricted due to minimum balance requirements under the East West Bank Facility.
Significant Capital Transactions
The following table reflects the quarterly distributions per share that our Board of Directors has declared,we have paid, including shares issued under our dividend reinvestment plan, or DRIP, on our common stock since October 1, 2016:2017:
Frequency Date Declared Record Date Payment Date Amount
per Share
 Cash Distribution DRIP Shares Issued (1) DRIP Shares Value
Monthly August 4, 2016 October 14, 2016 October 31, 2016 $0.075
 $2,183,023
 3,146 $26,985
Monthly August 4, 2016 November 15, 2016 November 30, 2016 0.075
 2,183,100
 2,986 26,908
Monthly October 19, 2016 December 15, 2016 December 30, 2016 0.075
 2,179,421
 3,438 30,586
Monthly October 19, 2016 January 31, 2017 January 31, 2017 0.075
 2,180,645
 2,905 29,363
Monthly October 19, 2016 February 15, 2017 February 28, 2017 0.075
 2,183,581
 2,969 26,427
Monthly February 6, 2017 March 15, 2017 March 31, 2017 0.04
 1,165,417
 1,508 13,253
Quarterly February 6, 2017 June 15, 2017 June 30, 2017 0.19
 5,543,465
 6,840 55,221
Quarterly August 7, 2017 September 15, 2017 September 29, 2017 0.19
 5,536,798
 6,991 61,888
Quarterly August 7, 2017 December 15, 2017 December 29, 2017 0.19
 5,439,519
 18,809 159,167
Date Declared Record Date Payment Date Amount
per Share
 Cash Distribution DRIP Shares Issued (1) DRIP Shares Value
August 7, 2017 December 15, 2017 December 29, 2017 $0.19
 $5,439,519
 18,809 $159,167
February 5, 2018 March 15, 2018 March 30, 2018 0.14
 4,091,583
 4,204 33,764
May 3, 2018 June 15, 2018 June 29, 2018 0.145
 4,232,547
 4,829 40,134
August 1, 2018 September 15, 2018 September 28, 2018 0.155
 4,518,677
 5,620 48,672
November 19, 2018 December 17, 2018 December 28, 2018 0.155
 4,513,238
 6,888 54,111
February 1, 2019 March 15, 2019 March 29, 2019 0.155
 4,516,806
 6,187 50,543
May 3, 2019 June 14, 2019 June 28, 2019 0.155
 4,514,262
 6,314 53,088
August 2, 2019 September 13, 2019 September 30, 2019 0.155
 4,510,023
 6,961 57,325
November 12, 2019 December 13, 2019 December 31, 2019 0.155
 4,503,016
 7,793 64,334
January 31, 2020 March 13, 2020 March 31, 2020 0.155
 4,489,700
 14,852 77,648
______________
(1) Shares were purchased on the open market and distributed.
Indebtedness
See “NoteNote 6. Borrowings”Borrowings in the Consolidated Financial Statements for more details regarding our indebtedness and secured borrowings.indebtedness.
Citibank Facility
As of DecemberMarch 31, 2017,2020 and September 30, 2019, we were able to borrow $180 million (subject to borrowing base and other limitations) under a revolving credit facility with us, as collateral manager, OCSI Senior Funding II LLC, our wholly-owned, special purpose financing subsidiary, as borrower, the lenders from time to time party thereto, Citibank, N.A., as administrative agent and Wells Fargo Bank, N.A., as collateral agent, or the Citibank facility permitted up to $125.0 million of borrowings.Facility. As of DecemberMarch 31, 2017,2020, the reinvestment period under the Citibank Facility is scheduled to expire on July 19, 2021 and the maturity date for the Citibank Facility is July 18, 2023.

As of March 31, 2020, borrowings under the Citibank facilityFacility are subject to certain customary advance rates and accrue interest at a rate equal to LIBOR plus 2.25%1.70% per annum on broadly syndicated loans and LIBOR plus 2.50%2.25% per annum on all other eligible loans during the reinvestment period. Following termination of the reinvestment period, andborrowings under the Citibank Facility will accrue interest at rates equal to LIBOR plus 3.50% per annum during the first year after the reinvestment period and LIBOR plus 4.00% per annum during the subsequent two years, respectively. In addition, as of DecemberMarch 31, 2017,2020, for the duration of the reinvestment period there is a commitmentnon-usage fee payable of 0.50% per annum on the undrawn amount under the Citibank facility of either 0.50% per annum on the unused amount of the Citibank facility (if the advances outstanding on the Citibank facility exceed 50% of the aggregate commitments by lenders to make advances on such day) or 0.75% per annum on the unused amount of the Citibank facility (if the advances outstanding on the Citibank facility do not exceed 50% of the aggregate commitments by lenders to make advances on such day) for the duration of the reinvestment period. Interest and commitment fees are payable quarterly in arrears.Facility. As of DecemberMarch 31, 2017,2020, the reinvestment periodminimum asset coverage ratio applicable to us under the Citibank facility would have ended on January 31, 2018 andFacility is 150% as determined in accordance with the final maturity date was January 15, 2020. The Citibank facility requires us to comply with certain affirmative and negative covenants and other customary requirements for similar credit facilities.of the Investment Company Act.
As of Decembereach of March 31, 20172020 and September 30, 2017,2019, we had $70.1$129.1 million and $76.5$126.1 million outstanding under the Citibank facility,Facility, respectively. Our borrowings under the Citibank facilityFacility bore interest at a weighted average interest rate of 3.919%3.666% and 3.213%4.618% for the threesix months ended DecemberMarch 31, 20172020, and December 31, 2016,2019, respectively. For the three and six months ended DecemberMarch 31, 2017 and December 31, 2016,2020, we recorded interest expense (inclusive of $0.9fees) of $1.3 million and $1.0$2.7 million, respectively, related to the Citibank facility.Facility.   For the three and six months ended March 31, 2019, we recorded interest expense (inclusive of fees) of $1.7 million and $3.2 million, respectively, related to the Citibank Facility.
East West Bank Facility
On January 6, 2016, we entered into a five-year, $25 million senior secured revolving credit facility (subject to borrowing base and other limitations) with the lenders referenced therein, U.S. Bank National Association, as custodian, and East West Bank as secured lender, or, as amended, the East West Bank Facility. BorrowingsAs of March 31, 2020, borrowings under the East West Bank Facility bear an interest rate of either (i) LIBOR plus 3.75%2.85% per annum for borrowings in year one, 3.50% per annum for borrowings in year two, 3.25% per annum for borrowings in years three and four and 3.00% per annum for borrowings in year five, or (ii) East West Bank’s prime rate, plus 0.75% per annum for borrowings in year one, 0.50% per annum for borrowings in year two, 0.25% per annum for borrowings in years three and four, and 0.00% per annum for borrowings in year five.each case with a 3.5% floor. The East West Bank Facility

matures on January 6, 2021. As of March 31, 2020, the minimum asset coverage ratio applicable to us under the East West Bank Facility is 150% as determined in accordance with the requirements of the Investment Company Act. The East West Bank Facility requires us to comply with certain affirmative and negative covenants and other customary requirements for similar credit facilities.
On April 7, 2020, we amended the East West Bank Facility to, among other things, reduce the required minimum net assets from $225 million to $185 million commencing with the quarter ended March 31, 2020. For the March 31, 2020 testing period, we were in compliance with all financial covenants under the East West Bank Facility.
As of DecemberMarch 31, 20172020 and September 30, 2017,2019, we had $4.0$22.5 million and $6.5$11.0 million of borrowings outstanding under the East West Bank facility,Facility, respectively. Our borrowings under the East West Bank facilityFacility bore interest at a weighted average interest rate of 5.088%4.637% and 3.498%5.484% for the threesix months ended DecemberMarch 31, 20172020 and December 31, 2016,2019, respectively. For the three and six months ended DecemberMarch 31, 2017 and December 31, 2016,2020, we recorded interest expense of $0.2 million and $0.1$0.4 million, respectively, related to the East West Bank facility.Facility. For the three and six months ended March 31, 2019, we recorded interest expense of $0.2 million and $0.3 million, respectively, related to the East West Bank Facility.
Debt SecuritizationDeutsche Bank Facility
As of December 31, 2017, the 2015 Debt Securitization consists of $222.6 million in senior secured notes, or 2015 Notes, and $86.4 million of unsecured subordinated notes, or the Subordinated 2015 Notes. The notes offered in the 2015 Debt Securitization were issued by FSOn September 24, 2018, OCSI Senior Funding Ltd., or the 2015 Issuer, aour wholly-owned subsidiary, entered into a loan financing and servicing agreement, or, as amended, the Deutsche Bank Facility, with us as equityholder and as servicer, the lenders from time to time parties thereto, Deutsche Bank AG, New York Branch, as facility agent, the other agents parties thereto and Wells Fargo Bank, National Association, as collateral agent and as collateral custodian.
Effective March 22, 2020, an amendment to the Deutsche Bank Facility (the "DB Credit Facility Amendment") (a) extended the period during which OCSI Senior Funding Ltd. may request drawdowns under the under the Deutsche Bank Facility (the "revolving period") to September 30, 2020 unless there is an earlier termination or event of us,default, (b) extended the maturity date from June 30, 2020 until the earliest of March 30, 2021, the occurrence of an event of default or completion of a securitization transaction, (c) decreased the size of the Deutsche Bank Facility from $250 million to $200 million (subject to borrowing base and other limitations) and (d) modified the interest rate to three-month LIBOR plus 2.25% through September 30, 2020, following which the interest rate will reset to three-month LIBOR plus 2.40% for the remaining term of the Deutsche Bank Facility. There is a private placement.non-usage fee of 0.50% per annum payable on the undrawn amount under the Deutsche Bank Facility, and the DB Credit Facility Amendment added a minimum utilization fee should the drawn amount under the Deutsche Bank Facility fall below 80%.
The Deutsche Bank Facility is secured by all of the assets held by OCSI Senior Funding Ltd. OCSI Senior Funding Ltd. has made customary representations and warranties and is required to comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar credit facilities. Our borrowings, including indirectly under the Deutsche Bank Facility, are subject to the leverage restrictions contained in the Investment Company Act.
As of DecemberMarch 31, 2017,2020 and September 30, 2019, we had $175.6 million and $157.6 million outstanding under the 2015 Debt Securitization consists of $126.0 million Class A-T Senior Secured 2015 Notes which bear interest at three-month LIBOR plus 1.80%; $29.0 million Class A-S Senior Secured 2015 Notes whichDeutsche Bank Facility, respectively. For the six months ended March 31, 2020 and 2019, our borrowings under the Deutsche Bank Facility bore interest at a weighted average interest rate of three-month LIBOR plus 1.55%4.062% and 4.538%, until a step-up in spread to 2.10% occurred in October 2016; $20.0 million Class A-R Senior Secured Revolving 2015 Notes which bear interest at a rate of commercial paper, or CP, plus 1.80%, or, collectively, the Class A 2015 Notes; and $25.0 million Class B Senior Secured 2015 Notes which bear interest at a rate of three-month LIBOR plus 2.65% per annum, which were issued in a private placement. We currently retain the entire $22.6 million of Class C Senior Secured 2015 Notes (which we purchased at 98.0% of par value) and the entire $86.4 million of the Subordinated 2015 Notes. The 2015 Debt Securitization requires us to comply with certain monthly financial covenants, including overcollateralization and interest coverage tests.
respectively. For the three and six months ended DecemberMarch 31, 2017 and December 31, 2016, the components of2020, we recorded interest expense cash paid for interest, average interest rates(inclusive of fees) of $2.0 million and average outstanding balances for$3.8 million, respectively. For the 2015 Debt Securitization were as follows: 
  Three months ended December 31, 2017 Three months ended December 31, 2016
Interest expense $1,567,772
 $1,306,035
Loan administration fees 18,241
 18,330
Amortization of debt issuance costs 72,526
 72,526
Total interest and other debt financing expenses $1,658,539
 $1,396,891
Cash paid for interest expense $1,566,749
 $1,222,675
Annualized average interest rate 3.446% 2.902%
Average outstanding balance $181,467,391
 $180,000,000
The classes, interest rates, spread over LIBOR, cash paid for interest, statedthree and six months ended March 31, 2019, we recorded interest expense (inclusive of fees) of $1.9 million and note discount expense of each of the Class A-T, A-S, A-R, B and C 2015 Notes for the three months ended December 31, 2017 is as follows:

 Stated Interest Rate LIBOR Spread (basis points) Cash Paid for Interest Interest Expense
Class A-T Notes 3.1035% 180 $999,327
 $999,327
Class A-S Notes 3.4035% 210(1)252,237
 252,237
Class A-R Notes 3.1838% 180(2)62,600
 63,623
Class B Notes 3.9535% 265 252,585
 252,585
Class C Notes 4.5535% 325(3)
 
Total     $1,566,749
 $1,567,772
_______________________
(1) Spread increased to 2.10% in October 2016 from 1.55%.
(2) Interest expense includes 1.0% undrawn fee. Class A-R 2015 Notes were not drawn during the three months ended December 31, 2017.
(3) We hold all Class C 2015 Notes outstanding and thus have not recorded any related interest expense as it is eliminated in consolidation.$3.5 million, respectively.


The classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR) of the Class A, B, C and Subordinated 2015 Notes as of December 31, 2017 are as follows:
Description Class A-T Notes Class A-S Notes Class A-R
Notes
 Class B Notes Class C Notes Subordinated Notes
Type Senior Secured Floating Rate Term Debt Senior Secured Floating Rate Term Debt Senior Secured Floating Rate Revolver Senior Secured Floating Rate Term Debt Senior Secured Floating Rate Term Debt Subordinated Term Notes
Amount Outstanding $126,000,000 $29,000,000 $— $25,000,000 $22,575,680 $86,400,000
Moody's Rating "Aaa" "Aaa" "Aaa" "Aa2" "Aa2" NR
S&P Rating "AAA" "AAA" "AAA" NR NR NR
Interest Rate LIBOR + 1.80% LIBOR + 2.10%* CP + 1.80% ** LIBOR + 2.65% LIBOR + 3.25% NA
Stated Maturity May 28, 2025 May 28, 2025 May 28, 2025 May 28, 2025 May 28, 2025 May 28, 2025
_______________________
* Spread increased to 2.10% in October 2016 from 1.55%.
** Carries a 1.0% undrawn fee.
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 DecemberMarch 31, 20172020 and September 30, 2017,2019, our only off-balance sheet arrangements consisted of $39.5$19.6 million and $43.5$24.2 million, respectively, of unfunded commitments to provide debt and equity financing to certain of our portfolio companies. Such commitments are subject to our portfolio companies' satisfaction of certain financial and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in excess of the amount recognized in our Consolidated Statements of Assets and Liabilities.
A list of unfunded commitments by investment (consisting of revolvers, term loans with delayed draw components and Glick JV Subordinated Notes and LLC equity interests)interests of the OCSI Glick JV) as of DecemberMarch 31, 20172020 and September 30, 20172019 is shown in the table below:
  December 31, 2017 September 30, 2017
 FSFR Glick JV LLC $15,864,217
 $16,159,368
 MHE Intermediate Holdings 6,749,698
 6,749,698
 Triple Point Group Holdings, Inc. 4,968,590
 4,968,590
 Motion Recruitment Partners LLC 2,900,000
 2,900,000
 Asset International 2,500,000
 
 PowerPlan, Inc. 2,100,000
 2,100,000
 Impact Sales, LLC 1,078,555
 1,078,125
 Ministry Brands, LLC 927,693
 1,857,967
 Valet Merger Sub, Inc. 833,333
 833,333
 Internet Pipeline, Inc. 800,000
 800,000
 Metamorph US 3, LLC (1) 720,000
 720,000
 4 Over International, LLC 68,452
 68,452
 BeyondTrust Software, Inc. 
 3,605,000
 Executive Consulting Group, Inc. 
 800,000
 Sailpoint Technologies, Inc. 
 300,000
 Systems Inc. 
 600,000
Total $39,510,538
 $43,540,533
  March 31, 2020 September 30, 2019
OCSI Glick JV LLC (1) $13,998,029
 $13,998,029
MRI Software LLC 1,234,253
 
Coyote Buyer, LLC 847,860
 
PaySimple, Inc. 796,962
 2,450,000
OEConnection LLC 735,931
 731,183
Accupac, Inc. 716,984
 
Apptio, Inc. 692,308
 692,308
iCIMs, Inc. 294,118
 294,118
MHE Intermediate Holdings, LLC 131,363
 4,466,338
GKD Index Partners, LLC 88,889
 444,444
Ministry Brands, LLC 42,500
 80,000
4 Over International, LLC 
 60,629
Mindbody, Inc. 
 952,381
Total $19,579,197
 $24,169,430
_______  ___________ 
(1) This investment was on cash non-accrual status as of DecemberMarch 31, 2017 and September 30, 2017.

2020.
Contractual Obligations
The following table reflects information pertaining to our debt outstanding under the Citibank facility,Facility, the East West Bank Facility and the 2015 Debt Securitization:Deutsche Bank Facility:
 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
 Debt Outstanding
as of September 30, 2019
 Debt Outstanding
as of March 31, 2020
 Weighted average  debt
outstanding for the
six months ended
March 31, 2020
 Maximum debt
outstanding
for the six months ended
March 31, 2020
Citibank facility $76,456,800
 $70,056,800
 $75,343,757
 $76,456,800
2015 Debt Securitization 180,000,000
 180,000,000
 181,467,391
 183,000,000
Citibank Facility $126,056,800
 $129,056,800
 $126,723,467
 $129,056,800
Deutsche Bank Facility 157,600,000
 175,600,000
 167,769,399
 181,600,000
East West Bank Facility 6,500,000
 4,000,000
 12,478,261
 22,000,000
 11,000,000
 22,500,000
 12,729,508
 22,500,000
Total debt $262,956,800
 $254,056,800
 $269,289,409
   $294,656,800
 $327,156,800
 $307,222,374
  

The following table reflects our contractual obligations arising from the Citibank facility, 2015 Debt SecuritizationFacility, Deutsche Bank Facility and East West Bank Facility:
  Payments due by period as of December 31, 2017
  Total < 1 year 1-3 years 3-5 years > 5 years
Citibank facility $70,056,800
 $
 $70,056,800
 $
 $
Interest due on Citibank facility 5,481,423
 2,685,529
 2,795,894
 
 
2015 Debt Securitization 180,000,000
 
 
 
 180,000,000
Interest due on 2015 Debt Securitization 43,619,422
 5,885,800
 11,771,600
 11,771,600
 14,190,422
East West Bank Facility 4,000,000
 
 
 4,000,000
 
Interest due on East West Bank Facility 603,836
 200,000
 400,000
 3,836
 
Total $303,761,481
 $8,771,329
 $85,024,294
 $15,775,436
 $194,190,422
  Payments due by period as of March 31, 2020
  Total < 1 year 1-3 years 3-5 years
Citibank Facility $129,056,800
 $
 $
 $129,056,800
Interest due on Citibank Facility 14,313,223
 4,339,142
 8,678,284
 1,295,797
Deutsche Bank Facility 175,600,000
 175,600,000
 
 
Interest due on Deutsche Bank Facility 7,166,675
 7,166,675
 
 
East West Bank Facility 22,500,000
 22,500,000
 
 
Interest due on East West Bank Facility 676,265
 676,265
 
 
Total $349,312,963
 $210,282,082
 $8,678,284
 $130,352,597


Regulated Investment Company Status and Distributions
We have qualified and elected to be treated as a RIC under Subchapter M of the Code.Code for tax purposes. As long as we continue to qualify as a RIC, we will not be subject to tax on our investment company taxable income (determined without regard to any deduction for dividends paid) or realized net capital gains, to the extent that such taxable income or gains is distributed, or deemed to be distributed as dividends, to stockholders on a timely basis.
Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation. Distributions declared and paid by us in a taxable year may differ from taxable income for that taxable year as such distributions may include the distribution of taxable income derived from the current taxable year or the distribution of taxable income derived from the prior taxable year carried forward into and distributed in the current taxable year. Distributions also may include returns of capital.
To maintain RIC tax treatment, we must, among other things, distribute dividends, with respect to each taxable year, of an amount at least equal to 90% of our investment company taxable income (i.e., our net ordinary income and our realized net short-term capital gains in excess of realized net long-term capital losses, if any) determined without regard to any deduction for dividends paid. As a RIC, we are also subject to a federal excise tax, based on distribution requirements of our taxable income on a calendar year basis. We anticipate timely distribution of our taxable income in accordance with tax rules. We did not incur a U.S. federal excise tax for calendar years 20152018 and 2016 and do not expect to incur a U.S. federal excise tax for the calendar year 2017.2019. We may incur a federal excise tax in future years.
We intend to distribute at least 90% of our annual taxable income (which includes our taxable interest and fee income) to our stockholders. The covenants under the respective documents governing the Citibank facility,Facility, the East West Bank facilityFacility and the 2015 Debt SecuritizationDeutsche Bank Facility could, under certain circumstances, hinder our ability to satisfy the distribution requirement associated with our ability to be subject to tax as a RIC. In addition, we may retain for investment some or all of our net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) and treat such amounts as deemed distributions to our stockholders. If we do this, our stockholders will be treated as if they received actual distributions of the capital gains we retained and then reinvested the net after-tax proceeds in our common stock. Our stockholders also may be eligible to claim tax credits (or, in certain circumstances, tax refunds) equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. To the extent our taxable earnings for a fiscal and taxable year fall below the total amount of our dividend distributions for that fiscal and taxable year, a portion of those distributions may be deemed a return of capital to our stockholders.
We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a business development companyBusiness Development Company under the 1940Investment Company Act and due to provisions in our credit facilities and

debt instruments. If we do not distribute a certain percentage of our taxable income annually, we will suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.
A RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder elects to receive his or her entire distribution in either cash or stock of the RIC, subject to certain limitations regarding the aggregate amount of cash to be distributed to all stockholders. If these and certain other requirements are met, for U.S federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. We have no current intention of paying dividends in shares of our stock in accordance with these guidelines.
We may generate qualified net interest income or qualified net short-term capital gains that may be exempt from U.S. withholding tax when distributed to foreign stockholders. A RIC is permitted to designate distributions of qualified net interest income and qualified short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation. The following table, which may be subject to change as we finalize our annual tax filings, lists the percentage of qualified net interest income and qualified short-term capital gains as offor the year ended September 30, 2017,2019, our last tax year end.
Year Ended Qualified Net Interest IncomeQualified Short-Term Capital Gains
September 30, 20172019 86.789.1%
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 subsidiary of the Investment Adviser.Oaktree. Mr. John B. Frank, an interested member of our Board of Directors, has an indirect pecuniary interest in our Investment Adviser. The Investment AdviserOaktree. Oaktree is a registered investment adviser under the Investment Advisers Act of 1940, as amended, or the Advisers Act, that is partially and indirectly owned by OCG. See “NoteNote 11. Related Party Transactions-NewTransactions - Investment Advisory Agreement”Agreement and “-Administrative Services”– Administrative Services in the notes to the accompanying Consolidated Financial Statements.
Prior to October 17, 2017, we were externally managed and advised by our Former Adviser, and our administrator was FSC CT LLC, a wholly-owned subsidiary of our Former Adviser. Messrs. Bernard D. Berman, Patrick J. Dalton, Ivelin M. Dimitrov, Alexander C. Frank and Todd G. Owens, 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.
We serve as collateral manager to the 2015 Issuer under a collateral management agreement in connection with the 2015 Debt Securitization and are entitled to receive a fee for providing these services. We have retained a sub-collateral manager, which, as of October 17, 2017, was the Investment Adviser and, prior to October 17, 2017, was the Former Adviser, to provide collateral management sub-advisory services to us pursuant to a sub-collateral management agreement. The sub-collateral manager is entitled to receive 100% of the collateral management fees paid to us under the collateral management agreement, but each of our Investment Adviser and the Former Adviser irrevocably waived and, in the case of the Investment Adviser, intends to continue to irrevocably waive its right to such sub-collateral management fees in respect of the 2015 Debt Securitization.
Recent Developments
DividendDistribution Declaration
On February 5, 2018,April 30, 2020, our Board of Directors declared a quarterly dividenddistribution of $0.14$0.125 per share, payable in cash on MarchJune 30, 20182020 to stockholders of record on MarchJune 15, 2018.2020.
Change in Investment PolicyAdvisory Agreement
Effective January 19, 2018, we were no longer subject to a policy to invest, under normal market conditions, at least 80%On May 4, 2020, Oaktree effected the novation of the value of our net assets (plus borrowings forInvestment Advisory Agreement to Oaktree Fund Advisors, LLC, a registered investment purposes) in floating rate senior loans.
Citibank Facility Amendment
On January 31, 2018,adviser under common control with Oaktree.  Immediately following such novation, we and Oaktree Fund Advisors, LLC entered into an Amended and Restated Loan and Security Agreement, ora new investment advisory agreement with the Loan Agreement, with OCSI Senior Funding II LLC (formerly FS Senior Funding II LLC), our wholly-owned, special purpose financing subsidiary,same terms, including fee structure, as the borrower,Investment Advisory Agreement.
Liquidity
As of April 30, 2020, we had $28 million of unrestricted cash and cash equivalents and $81 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations). Unfunded investment commitments were $18 million, or $4 million when excluding unfunded commitments to the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent, or the Restated Citibank Facility.OCSI Glick JV.

The Restated Citibank Facility permits up to $100 million of borrowings. Borrowings under the Restated Citibank Facility are subject to certain customary advance rates and accrue interest at a rate equal to LIBOR plus 1.70% per annum on broadly syndicated loans and LIBOR plus 2.25% per annum on all other eligible loans during the reinvestment period. Following termination of the reinvestment period, borrowings under the Restated Citibank Facility accrue interest at rates equal to LIBOR plus 3.50% per annum and LIBOR plus 4.00% per annum during the subsequent two years, respectively. In addition, for the duration of the reinvestment period there is a non-usage fee payable of 0.50% per annum on the undrawn amount under the Restated Citibank Facility. The non-usage fee is increased pursuant to a formula if, after the ramp up period, the advances outstanding on the Restated Citibank Facility do not exceed 70% of the aggregate commitments by lenders.
The reinvestment period under the Restated Citibank Facility ends January 30, 2021, and the final maturity date is January 31, 2023. The Restated Citibank Facility requires us to comply with certain affirmative and negative covenants and other customary requirements for similar credit facilities.
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.


Item 3. Quantitative and Qualitative Disclosures about Market Risk
We are subject to financial market risks, including changes in the valuations of our investment portfolio and interest rates.
Valuation Risk
Our investments may not have a readily available market price, and we value these investments at fair value as determined in good faith by our Board of Directors, with the assistance of the Audit Committee and Oaktree. There is no single standard for determining fair value in good faith and valuation methodologies involve a significant degree of management judgment. In addition, our valuation methodology utilizes discount rates in part in valuing our investments, and changes in those discount rates may have an impact on the valuation of our investments. Accordingly, valuations by us do not necessarily represent the amounts which may eventually be realized from sales or other dispositions of investments. Estimated fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the financial statements.
Interest Rate Risk
We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding and our interest income from portfolio investments, cash and cash equivalents and idle fundsfund investments. Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs. Our investment income will be affected by changes in various interest rates, including LIBOR and prime rates, to the extent our debt investments include floating interest rates. In addition, our investments are carried at fair value as determined in good faith by our Board of Directors in accordance with the 1940 Act. Our valuation methodology utilizes discount rates in part in valuing our investments, and changes in those discount rates may have an impact on the valuation of our investments.
As of DecemberMarch 31, 2017,2020 and September 30, 2019, 100% of our debt investment portfolio (at cost and fair value) bore interest at floating rates and hadrates. The composition of our floating rate debt investments by interest rate floors between 0%floor as of March 31, 2020 and 2%.September 30, 2019 was as follows: 
  March 31, 2020 September 30, 2019
  Fair Value 
% of Floating
Rate Portfolio
 Fair Value 
% of Floating
Rate Portfolio
0% $212,687,868
 40.56% $178,473,379
 29.90%
>0% and <1% 1,956,403
 0.37
 9,012,119
 1.51
1% 309,735,040
 59.07
 409,325,610
 68.59
Total Floating Rate Investments $524,379,311
 100.00% $596,811,108
 100.00%
Based on our Consolidated Statement of Assets and Liabilities as of DecemberMarch 31, 2017,2020, the following table shows the approximate annualized net increase (decrease) in components of net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in our investment and capital structure. However, there can be no assurances our portfolio companies will be able to meet their contractual obligations at any or all levels ofon increases in interest rates.
Basis point increase Increase in Interest Income (Increase) in Interest Expense Net increase (decrease) in net assets resulting from operations
250 $13,817,312
 $(8,178,920) $5,638,392
200 11,053,849
 (6,543,136) 4,510,713
150 8,290,387
 (4,907,352) 3,383,035
100 5,526,925
 (3,271,568) 2,255,357
50 2,763,462
 (1,635,784) 1,127,678
Basis point increase Interest Income Interest Expense Net increase (decrease)
300 16,473,739
 (7,621,704) 8,852,035
200 10,982,493
 (5,081,136) 5,901,357
100 5,491,246
 (2,540,568) 2,950,678
Basis point decrease (Decrease) in Interest Income Decrease in Interest Expense Net increase (decrease) in net assets resulting from operations
50 $(1,677,934) $1,614,206
 $(63,728)
100 (2,686,038) 3,137,490
 451,452
150 (2,947,562) 4,482,927
 1,535,365
200 (1) (2,961,779) 5,064,602
 2,102,823
 __________
(1) The effect of a greater than 200 basis point decrease is limited by interest rate floors on certain investments.

Basis point decrease (1) Interest Income Interest Expense Net increase (decrease)
100 $(3,647,143) $2,540,568
 $(1,106,575)
 __________________
(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 DecemberMarch 31, 20172020 and September 30, 2017:2019:

 December 31, 2017 September 30, 2017 March 31, 2020 September 30, 2019
 Interest Bearing Cash and Investments Borrowings Interest Bearing Cash and Investments Borrowings Interest Bearing Cash and Investments Borrowings Interest Bearing Cash and Investments Borrowings
Money market rate $46,172,171
 $
 $43,012,387
 $
 $30,369,011
 $
 $13,063,815
 $
Prime rate 26,231
 
 490,693
 
 2,843,492
 
 7,392,651
 
LIBOR:                
30 day 313,478,828
 4,000,000
 218,782,104
 6,500,000
 359,817,271
 22,500,000
 408,142,675
 11,000,000
60 day 25,662,846
   32,508,060
   8,321,250
 
 2,000,000
 
90 day 233,029,140
 250,056,800
 340,420,366
 256,456,800
 184,156,642
 304,656,800
 179,653,417
 283,656,800
180 day 
 
 
 
 59,879,512
 
 20,311,944
 
360 day 
 
 
 
UK LIBOR:        
30 day 3,719,850
 
 6,161,500
 
Fixed rate 
 
 
 
 
 
 
 
Total $618,369,216
 $254,056,800
 $635,213,610
 $262,956,800
 $649,107,028
 $327,156,800
 $636,726,002
 $294,656,800


Item 4. 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 DecemberMarch 31, 2017.2020. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”),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 DecemberMarch 31, 2017, our2020, the 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 2018six months ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.     Legal Proceedings
Although we may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise, we 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 OCSL. 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 OCSL and FSAM 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 OCSL, (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 OCSL, (v) various issues relating to adoption and implementation of policies and procedures under the Advisers Act, (vi) statements and/or potential omissions in the entities’ SEC filings, (vii) the entities’ books, records, and accounts and whether they fairly and accurately reflected the entities’ transactions and dispositions of assets, and (viii) several other issues relating to corporate books and records. The formal order cites various provisions of the Securities Act of 1933, as amended, the Exchange Act, and the Advisers Act, as well as rules promulgated under those Acts, as the bases of the investigation. We are cooperating with the Division of Enforcement investigation, have produced requested documents, and have been communicating with Division of Enforcement personnel. Our Investment Adviser is not subject to these subpoenas.
Item 1A. Risk Factors
ThereExcept as set forth below, there have been no material changes during the three and six months ended DecemberMarch 31, 20172020 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2017.2019.

Global economic, political and market conditions caused by the current public health crisis have (and in the future, could further) adversely affect our business, results of operations and financial condition and those of our portfolio companies.

A novel strain of coronavirus initially appeared in China in late 2019 and has rapidly spread to other countries, including the United States.  In an attempt to slow the spread of the coronavirus, governments in major jurisdictions, including the United States, the United Kingdom, France, Italy, South Korea and China, have placed restrictions on travel, issued “stay at home” orders and ordered the temporary closure of certain businesses, such as factories and retail stores.  As such restrictions and closures have impacted supply chains, consumer demand and/or the operations of many business, uncertainty surrounding the full economic impact of the coronavirus pandemic has contributed to significant market volatility and disruption, which may have long-term effects on the U.S. and global financial markets and have caused (and may cause further) economic uncertainties or deterioration in the United States and worldwide.

Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of credit risk in the broadly syndicated market.  These and any other unfavorable economic conditions created by the coronavirus and related restrictions and closures could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events have negatively impacted the fair value of the investments that we hold and could limit our investment originations (including as a result of the investment professionals of our investment adviser diverting their time to the restructuring of certain investments), negatively impact our operating results and limit our ability to grow.  In addition, our success depends in substantial part on the management, skill and acumen of our investment adviser, whose operations may be adversely impacted, including through quarantine measures and travel restrictions imposed on its investment professionals or service providers, or any related health issues of such investment professionals or service providers.

In addition, the restrictions and closures and related market conditions have resulted in certain of our portfolio companies halting or significantly curtailing operations and have negatively affected the supply chains of certain of our portfolio companies.  The financial results of middle-market companies, like those in which we invest, have experienced deterioration, which could ultimately lead to difficulty in meeting debt service requirements and an increase in defaults, and further deterioration will further depress the outlook for those companies. Further, adverse economic conditions have decreased and may in the future decrease the value of collateral securing some of our loans and the value of our equity investments. Such conditions have required and may in the future require us to modify the payment terms of our investments, including changes in PIK interest provisions and/or cash interest rates. The performance of certain of our portfolio companies has been, and in the future may be, negatively impacted by these economic or other conditions, which can result in our receipt of reduced interest income from our portfolio companies and/or realized and unrealized losses related to our investments, and, in turn, may adversely affect distributable income and have a material adverse effect on our results of operations.

As the potential impact of the coronavirus remains difficult to predict, the extent to which the coronavirus could negatively affect our and our portfolio companies’ operating results or the duration of any potential business or supply-chain disruption is uncertain. Any potential impact to our results of operations will depend to a large extent on future developments regarding the duration and severity of the coronavirus and the actions taken by governments and their citizens to contain the coronavirus or treat its impact, all of which are beyond our control.

As a result of the COVID-19 pandemic and related government actions, certain of our portfolio companies are distressed, and we have opportunistically acquired the securities and obligations of distressed companies.  These and future investments in distressed companies are subject to significant risks, including lack of income, extraordinary expenses, uncertainty with respect to satisfaction of debt, lower-than-expected investment values or income potentials and resale restrictions.

We have acquired, and may in the future acquire, the securities and other obligations of distressed or bankrupt companies, including opportunistic acquisitions during the COVID-19 pandemic. At times, distressed debt obligations may not produce income and may require us to bear certain extraordinary expenses (including legal, accounting, valuation and transaction expenses) in order to protect and recover our investment. Therefore, when we invest in distressed debt, our ability to achieve current income for our stockholders may be diminished, particularly where the portfolio company has negative EBITDA.

We also are subject to significant uncertainty as to when and in what manner and for what value the distressed debt we acquire will eventually be satisfied whether through a refinancing, restructuring, liquidation, an exchange offer or plan of reorganization involving the distressed debt securities or a payment of some amount in satisfaction of the obligation. In addition, even if an exchange offer is made or plan of reorganization is adopted with respect to distressed debt held by us, there

can be no assurance that the securities or other assets received by us in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made.

Moreover, any securities received by us upon completion of an exchange offer or plan of reorganization may be restricted as to resale. As a result of our participation in negotiations with respect to any exchange offer or plan of reorganization with respect to an issuer of distressed debt, we may be restricted from disposing of such securities.

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.

Item 6. Exhibits
 AmendedAmendment No. 4 to Loan Financing and Restated CertificateServicing Agreement, dated as of Incorporation ofMarch 22, 2020, among OCSI Senior Funding Ltd., as borrower, the RegistrantCompany, as servicer, and Deutsche Bank AG, New York Branch as facility agent and as committed lender (Incorporated by reference to Exhibit a filed10.1 fled with the Registrant’s Registration Statement on Form N-2 (File No. 333-188904) filed on July 8, 2013).
Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated as of October 17, 2017 (Incorporated by reference to Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on October 17, 2017)March 25, 2020).
 Bylaws of the Registrant (Incorporated by reference to Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on September 9, 2016).
Amended and Restated Bylaws of the Registrant (Incorporated by reference to Exhibit 3.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on January 29, 2018)

Investment Advisory Agreement, dated as of October 17, 2017, between the Registrant and Oaktree Capital Management, L.P. (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on October 17, 2017).
Administration Agreement, dated as of October 17, 2017, between the Registrant and Oaktree Fund Administration, LLC (Incorporated by reference to Exhibit 10.2 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on October 17, 2017).
Pledge Agreement, dated as of October 17, 2017, between the Company and Fifth Street Holdings L.P. (Incorporated by reference to Exhibit 10.3 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on October 17, 2017).
SixthFourth Amendment to Loan and Security Agreement, dated as of October 25, 2017,April 7, 2020, by and among Registrant, FS Senior Funding II LLCbetween East West Bank and Citibank, N.A. (Incorporated by reference to Exhibit 10.22 filed with Registrant’s Annual Report on Form 10-K (File No. 814-01013) filed on December 11, 2017).the Company.
 Seventh Amendment to Loan and Security
Investment Advisory Agreement, dated as of December 6, 2017,May 4, 2020, by and among Registrant, FS Senior Funding II LLCbetween the Company and Citibank, N.A. (Incorporated by reference to Exhibit 10.23 filed with Registrant’s Annual Report on Form 10-K (File No. 814-01013) filed on December 11, 2017).
Eighth Amendment to Loan and Security Agreement, dated as of December 21, 2017, by and among Registrant, FS Senior Funding II LLC and Citibank, N.A.Oaktree Fund Advisors, LLC.

Amended and Restated Loan and Security Agreement by and among the Registrant, OCSI Senior Funding II LLC, the lenders referred to therein, Citibank, N.A., and Wells Fargo Bank, National Association, dated as of January 31, 2018. (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Current Report on Form 8-K (File No. 814-01013) filed on February 1, 2018).
Computation of Per Share Earnings (included in the notes to the financial statements contained in this report).
 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
 Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
 Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

*Filed herewith.




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


Armen Panossian

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

  Chief Financial Officer and Treasurer
Date: February 8, 2018May 6, 2020



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