UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) | ||||||||||
OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2021
OR
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) | ||||||||||
OF THE SECURITIES EXCHANGE ACT OF 1934 |
COMMISSION FILE NUMBER: 1-33901
Oaktree Specialty Lending Corporation
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE (State or jurisdiction of incorporation or organization) | 26-1219283 (I.R.S. Employer Identification No.) | |||||||
333 South Grand Avenue, 28th Floor Los Angeles, CA (Address of principal executive office) | 90071 (Zip Code) |
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(213) 830-6300
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, par value $0.01 per share | OCSL | The 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 period 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 every Interactive Data File required to be submitted 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 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.
Large accelerated filer ¨ | Accelerated filer þ | Non-accelerated filer ¨ | Smaller reporting company ¨ | |||||||||||||||||
Emerging growth company ¨ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES ¨ NO þ
The registrant had 180,360,662 shares of common stock outstanding as of August 3, 2021.
OAKTREE SPECIALTY LENDING CORPORATION
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2021
TABLE OF CONTENTS
PART I — FINANCIAL INFORMATION | |||||||||||
Item 1. | Consolidated Financial Statements: | ||||||||||
PART II — OTHER INFORMATION | |||||||||||
PART I — FINANCIAL INFORMATION
Item 1. | Consolidated Financial Statements. |
Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
June 30, 2021 (unaudited) | September 30, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Investments at fair value: | ||||||||||||||
Control investments (cost June 30, 2021: $283,707; cost September 30, 2020: $245,950) | $ | 269,478 | $ | 201,385 | ||||||||||
Affiliate investments (cost June 30, 2021: $14,788; cost September 30, 2020: $7,551) | 13,959 | 6,509 | ||||||||||||
Non-control/Non-affiliate investments (cost June 30, 2021: $2,021,729; cost September 30, 2020: $1,415,669) | 2,055,864 | 1,365,957 | ||||||||||||
Total investments at fair value (cost June 30, 2021: $2,320,224; cost September 30, 2020: $1,669,170) | 2,339,301 | 1,573,851 | ||||||||||||
Cash and cash equivalents | 84,689 | 39,096 | ||||||||||||
Restricted cash | 2,840 | — | ||||||||||||
Interest, dividends and fees receivable | 15,415 | 6,935 | ||||||||||||
Due from portfolio companies | 1,394 | 2,725 | ||||||||||||
Receivables from unsettled transactions | 2,466 | 9,123 | ||||||||||||
Due from broker | 1,640 | — | ||||||||||||
Deferred financing costs | 9,413 | 5,947 | ||||||||||||
Deferred offering costs | 34 | 67 | ||||||||||||
Deferred tax asset, net | 735 | 847 | ||||||||||||
Derivative assets at fair value | 2,449 | 223 | ||||||||||||
Other assets | 2,332 | 1,898 | ||||||||||||
Total assets | $ | 2,462,708 | $ | 1,640,712 | ||||||||||
LIABILITIES AND NET ASSETS | ||||||||||||||
Liabilities: | ||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 3,925 | $ | 1,072 | ||||||||||
Base management fee and incentive fee payable | 31,127 | 11,212 | ||||||||||||
Due to affiliate | 5,011 | 2,130 | ||||||||||||
Interest payable | 5,277 | 1,626 | ||||||||||||
Payables from unsettled transactions | 10,588 | 478 | ||||||||||||
Derivative liability at fair value | 267 | — | ||||||||||||
Credit facilities payable | 464,057 | 414,825 | ||||||||||||
Unsecured notes payable (net of $6,876 and $3,272 of unamortized financing costs as of June 30, 2021 and September 30, 2020, respectively) | 640,042 | 294,490 | ||||||||||||
Total liabilities | 1,160,294 | 725,833 | ||||||||||||
Commitments and contingencies (Note 14) | ||||||||||||||
Net assets: | ||||||||||||||
Common stock, $0.01 par value per share, 250,000 shares authorized; 180,361 and 140,961 shares issued and outstanding as of June 30, 2021 and September 30, 2020, respectively | 1,804 | 1,409 | ||||||||||||
Additional paid-in-capital | 1,730,083 | 1,487,774 | ||||||||||||
Accumulated overdistributed earnings | (429,473) | (574,304) | ||||||||||||
Total net assets (equivalent to $7.22 and $6.49 per common share as of June 30, 2021 and September 30, 2020, respectively) (Note 12) | 1,302,414 | 914,879 | ||||||||||||
Total liabilities and net assets | $ | 2,462,708 | $ | 1,640,712 |
See notes to Consolidated Financial Statements.
3
Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Nine months ended June 30, 2021 | Nine months ended June 30, 2020 | |||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Control investments | $ | 3,405 | $ | 2,558 | $ | 8,122 | $ | 7,502 | ||||||||||||||||||
Affiliate investments | 189 | 127 | 437 | 379 | ||||||||||||||||||||||
Non-control/Non-affiliate investments | 48,403 | 27,406 | 110,720 | 80,214 | ||||||||||||||||||||||
Interest on cash and cash equivalents | 2 | 21 | 8 | 320 | ||||||||||||||||||||||
Total interest income | 51,999 | 30,112 | 119,287 | 88,415 | ||||||||||||||||||||||
PIK interest income: | ||||||||||||||||||||||||||
Non-control/Non-affiliate investments | 4,597 | 2,183 | 11,487 | 5,290 | ||||||||||||||||||||||
Total PIK interest income | 4,597 | 2,183 | 11,487 | 5,290 | ||||||||||||||||||||||
Fee income: | ||||||||||||||||||||||||||
Control investments | 13 | 13 | 46 | 27 | ||||||||||||||||||||||
Affiliate investments | 5 | 5 | 15 | 15 | ||||||||||||||||||||||
Non-control/Non-affiliate investments | 7,805 | 1,809 | 13,392 | 4,906 | ||||||||||||||||||||||
Total fee income | 7,823 | 1,827 | 13,453 | 4,948 | ||||||||||||||||||||||
Dividend income: | ||||||||||||||||||||||||||
Control investments | 1,019 | 281 | 1,358 | 881 | ||||||||||||||||||||||
Total dividend income | 1,019 | 281 | 1,358 | 881 | ||||||||||||||||||||||
Total investment income | 65,438 | 34,403 | 145,585 | 99,534 | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||
Base management fee | 8,905 | 5,988 | 22,520 | 16,890 | ||||||||||||||||||||||
Part I incentive fee | 6,990 | 3,556 | 15,583 | 9,988 | ||||||||||||||||||||||
Part II incentive fee | 2,837 | — | 15,986 | (5,557) | ||||||||||||||||||||||
Professional fees | 1,059 | 545 | 2,943 | 1,854 | ||||||||||||||||||||||
Directors fees | 147 | 143 | 447 | 428 | ||||||||||||||||||||||
Interest expense | 8,823 | 6,406 | 21,486 | 20,156 | ||||||||||||||||||||||
Administrator expense | 421 | 373 | 1,047 | 1,194 | ||||||||||||||||||||||
General and administrative expenses | 716 | 622 | 2,009 | 1,934 | ||||||||||||||||||||||
Total expenses | 29,898 | 17,633 | 82,021 | 46,887 | ||||||||||||||||||||||
Reversal of fees waived (fees waived) | (750) | — | (858) | 5,200 | ||||||||||||||||||||||
Net expenses | 29,148 | 17,633 | 81,163 | 52,087 | ||||||||||||||||||||||
Net investment income before taxes | 36,290 | 16,770 | 64,422 | 47,447 | ||||||||||||||||||||||
(Provision) benefit for taxes on net investment income | (358) | — | (358) | — | ||||||||||||||||||||||
Net investment income | 35,932 | 16,770 | 64,064 | 47,447 | ||||||||||||||||||||||
Unrealized appreciation (depreciation): | ||||||||||||||||||||||||||
Control investments | 3,590 | 13,790 | 30,336 | (39,605) | ||||||||||||||||||||||
Affiliate investments | 109 | (45) | 213 | (1,839) | ||||||||||||||||||||||
Non-control/Non-affiliate investments | (898) | 87,225 | 83,842 | (19,018) | ||||||||||||||||||||||
Foreign currency forward contracts | 1,116 | (398) | 2,226 | 380 | ||||||||||||||||||||||
Net unrealized appreciation (depreciation) | 3,917 | 100,572 | 116,617 | (60,082) | ||||||||||||||||||||||
Realized gains (losses): | ||||||||||||||||||||||||||
Control investments | — | — | — | 777 | ||||||||||||||||||||||
Non-control/Non-affiliate investments | 9,350 | 2,821 | 26,267 | (18,117) | ||||||||||||||||||||||
Extinguishment of unsecured notes payable | — | — | — | (2,541) | ||||||||||||||||||||||
Foreign currency forward contracts | (740) | — | (3,586) | (490) | ||||||||||||||||||||||
Net realized gains (losses) | 8,610 | 2,821 | 22,681 | (20,371) | ||||||||||||||||||||||
(Provision) benefit for taxes on realized and unrealized gains (losses) | (1,421) | 68 | (2,663) | 1,613 | ||||||||||||||||||||||
Net realized and unrealized gains (losses), net of taxes | 11,106 | 103,461 | 136,635 | (78,840) | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 47,038 | $ | 120,231 | $ | 200,699 | $ | (31,393) | ||||||||||||||||||
Net investment income per common share — basic and diluted | $ | 0.20 | $ | 0.12 | $ | 0.41 | $ | 0.34 | ||||||||||||||||||
Earnings (loss) per common share — basic and diluted (Note 5) | $ | 0.26 | $ | 0.85 | $ | 1.29 | $ | (0.22) | ||||||||||||||||||
Weighted average common shares outstanding — basic and diluted | 180,361 | 140,961 | 155,970 | 140,961 |
See notes to Consolidated Financial Statements.
4
Oaktree Specialty Lending Corporation
Consolidated Statements of Changes in Net Assets
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Nine months ended June 30, 2021 | Nine months ended June 30, 2020 | |||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||
Net investment income | $ | 35,932 | $ | 16,770 | $ | 64,064 | $ | 47,447 | ||||||||||||||||||
Net unrealized appreciation (depreciation) | 3,917 | 100,572 | 116,617 | (60,082) | ||||||||||||||||||||||
Net realized gains (losses) | 8,610 | 2,821 | 22,681 | (20,371) | ||||||||||||||||||||||
(Provision) benefit for taxes on realized and unrealized gains (losses) | (1,421) | 68 | (2,663) | 1,613 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 47,038 | 120,231 | 200,699 | (31,393) | ||||||||||||||||||||||
Stockholder transactions: | ||||||||||||||||||||||||||
Distributions to stockholders | (23,447) | (13,392) | (55,868) | (40,174) | ||||||||||||||||||||||
Net increase (decrease) in net assets from stockholder transactions | (23,447) | (13,392) | (55,868) | (40,174) | ||||||||||||||||||||||
Capital share transactions: | ||||||||||||||||||||||||||
Issuance of common stock in connection with the Mergers | — | — | 242,704 | — | ||||||||||||||||||||||
Issuance of common stock under dividend reinvestment plan | 520 | 390 | 1,559 | 1,377 | ||||||||||||||||||||||
Repurchases of common stock under dividend reinvestment plan | (520) | (390) | (1,559) | (1,377) | ||||||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | — | — | 242,704 | — | ||||||||||||||||||||||
Total increase (decrease) in net assets | 23,591 | 106,839 | 387,535 | (71,567) | ||||||||||||||||||||||
Net assets at beginning of period | 1,278,823 | 752,224 | 914,879 | 930,630 | ||||||||||||||||||||||
Net assets at end of period | $ | 1,302,414 | $ | 859,063 | $ | 1,302,414 | $ | 859,063 | ||||||||||||||||||
Net asset value per common share | $ | 7.22 | $ | 6.09 | $ | 7.22 | $ | 6.09 | ||||||||||||||||||
Common shares outstanding at end of period | 180,361 | 140,961 | 180,361 | 140,961 |
See notes to Consolidated Financial Statements.
5
Oaktree Specialty Lending Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine months ended June 30, 2021 | Nine months ended June 30, 2020 | |||||||||||||
Operating activities: | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 200,699 | $ | (31,393) | ||||||||||
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 | (116,617) | 60,082 | ||||||||||||
Net realized (gains) losses | (22,681) | 20,371 | ||||||||||||
PIK interest income | (11,487) | (5,290) | ||||||||||||
Accretion of original issue discount on investments | (18,032) | (8,378) | ||||||||||||
Accretion of original issue discount on unsecured notes payable | 403 | 175 | ||||||||||||
Amortization of deferred financing costs | 3,030 | 1,565 | ||||||||||||
Deferred taxes | 112 | (1,470) | ||||||||||||
Purchases of investments | (714,791) | (576,866) | ||||||||||||
Proceeds from the sales and repayments of investments | 586,812 | 388,338 | ||||||||||||
Cash acquired in the Mergers | 20,945 | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
(Increase) decrease in interest, dividends and fees receivable | (3,434) | 3,267 | ||||||||||||
(Increase) decrease in due from portfolio companies | 1,956 | (103) | ||||||||||||
(Increase) decrease in receivables from unsettled transactions | 8,199 | (9,520) | ||||||||||||
(Increase) decrease in due from broker | (1,640) | — | ||||||||||||
(Increase) decrease in other assets | (1,444) | 328 | ||||||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 476 | (686) | ||||||||||||
Increase (decrease) in base management fee and incentive fee payable | 17,994 | 2,822 | ||||||||||||
Increase (decrease) in due to affiliate | 1,773 | (476) | ||||||||||||
Increase (decrease) in interest payable | 1,844 | 1,929 | ||||||||||||
Increase (decrease) in payables from unsettled transactions | 10,110 | (52,424) | ||||||||||||
Increase (decrease) in director fees payable | (90) | — | ||||||||||||
Net cash provided by (used in) operating activities | (35,863) | (207,729) | ||||||||||||
Financing activities: | ||||||||||||||
Distributions paid in cash | (54,309) | (38,797) | ||||||||||||
Borrowings under credit facilities | 325,000 | 286,000 | ||||||||||||
Repayments of borrowings under credit facilities | (515,525) | (134,000) | ||||||||||||
Repayments of unsecured notes | — | (161,250) | ||||||||||||
Issuance of unsecured notes | 349,020 | 297,459 | ||||||||||||
Repayments of secured borrowings | (9,341) | — | ||||||||||||
Repurchases of common stock under dividend reinvestment plan | (1,559) | (1,377) | ||||||||||||
Deferred financing costs paid | (7,844) | (4,835) | ||||||||||||
Deferred offering costs paid | — | (67) | ||||||||||||
Net cash provided by (used in) financing activities | 85,442 | 243,133 | ||||||||||||
Effect of exchange rate changes on foreign currency | (1,146) | (82) | ||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 48,433 | 35,322 | ||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | 39,096 | 15,406 | ||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 87,529 | $ | 50,728 | ||||||||||
Supplemental information: | ||||||||||||||
Cash paid for interest | $ | 15,583 | $ | 16,487 | ||||||||||
Non-cash financing activities: | ||||||||||||||
Issuance of shares of common stock under dividend reinvestment plan | $ | 1,560 | $ | 1,377 | ||||||||||
Deferred financing costs | (592) | — | ||||||||||||
Issuance of shares in connection with the Mergers | 242,704 | — | ||||||||||||
Reconciliation to the Consolidated Statements of Assets and Liabilities | June 30, 2021 | September 30, 2020 | ||||||||||||
Cash and cash equivalents | $ | 84,689 | $ | 39,096 | ||||||||||
Restricted cash | 2,840 | — | ||||||||||||
Total cash and cash equivalents and restricted cash | $ | 87,529 | $ | 39,096 |
See notes to Consolidated Financial Statements.
6
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Control Investments | (8)(9) | ||||||||||||||||||||||||||||
C5 Technology Holdings, LLC | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
829 Common Units | $ | — | $ | — | (15) | ||||||||||||||||||||||||
34,984,460.37 Preferred Units | 34,984 | 27,638 | (15) | ||||||||||||||||||||||||||
34,984 | 27,638 | ||||||||||||||||||||||||||||
Dominion Diagnostics, LLC | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 2/28/2024 | 6.00 | % | $ | 27,451 | 27,451 | 27,451 | (6)(15) | ||||||||||||||||||||||
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024 | — | — | — | (6)(15)(19) | |||||||||||||||||||||||||
30,030.8 Common Units in DD Healthcare Services Holdings, LLC | 18,626 | 18,065 | (12)(15) | ||||||||||||||||||||||||||
46,077 | 45,516 | ||||||||||||||||||||||||||||
First Star Speir Aviation Limited | Airlines | (10) | |||||||||||||||||||||||||||
First Lien Term Loan, 9.00% cash due 12/15/2025 | 7,500 | — | 7,500 | (11)(15) | |||||||||||||||||||||||||
100% equity interest | 6,339 | 482 | (11)(12)(15) | ||||||||||||||||||||||||||
6,339 | 7,982 | ||||||||||||||||||||||||||||
OCSI Glick JV LLC | Multi-Sector Holdings | (14) | |||||||||||||||||||||||||||
Subordinated Debt, LIBOR+4.50% cash due 10/20/2028 | 4.70 | % | 62,296 | 50,735 | 55,397 | (6)(11)(15) | |||||||||||||||||||||||
87.5% equity interest | — | — | (11)(16)(19) | ||||||||||||||||||||||||||
50,735 | 55,397 | ||||||||||||||||||||||||||||
Senior Loan Fund JV I, LLC | Multi-Sector Holdings | (14) | |||||||||||||||||||||||||||
Subordinated Debt, LIBOR+7.00% cash due 12/29/2028 | 8.00 | % | 96,250 | 96,250 | 96,250 | (6)(11)(15)(19) | |||||||||||||||||||||||
87.5% LLC equity interest | 49,322 | 36,695 | (11)(12)(16)(19) | ||||||||||||||||||||||||||
145,572 | 132,945 | ||||||||||||||||||||||||||||
Total Control Investments (20.7% of net assets) | $ | 283,707 | $ | 269,478 | |||||||||||||||||||||||||
Affiliate Investments | (17) | ||||||||||||||||||||||||||||
Assembled Brands Capital LLC | Specialized Finance | ||||||||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 10/17/2023 | 7.00 | % | $ | 11,924 | $ | 11,925 | $ | 11,680 | (6)(15)(19) | ||||||||||||||||||||
1,609,201 Class A Units | 764 | 579 | (15) | ||||||||||||||||||||||||||
1,019,168.80 Preferred Units, 6% | 1,019 | 1,131 | (15) | ||||||||||||||||||||||||||
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029 | — | — | (15) | ||||||||||||||||||||||||||
13,708 | 13,390 | ||||||||||||||||||||||||||||
Caregiver Services, Inc. | Health Care Services | ||||||||||||||||||||||||||||
1,080,399 shares of Series A Preferred Stock, 10% | 1,080 | 569 | (15) | ||||||||||||||||||||||||||
1,080 | 569 | ||||||||||||||||||||||||||||
Total Affiliate Investments (1.1% of net assets) | $ | 14,788 | $ | 13,959 | |||||||||||||||||||||||||
Non-Control/Non-Affiliate Investments | (18) | ||||||||||||||||||||||||||||
4 Over International, LLC | Commercial Printing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022 | 7.00 | % | $ | 10,987 | $ | 10,433 | $ | 10,240 | (6)(15) | ||||||||||||||||||||
First Lien Revolver, PRIME+5.00% cash due 6/7/2022 | 8.25 | % | 460 | 441 | 348 | (6)(15)(19) | |||||||||||||||||||||||
10,874 | 10,588 | ||||||||||||||||||||||||||||
109 Montgomery Owner LLC | Real Estate Operating Companies | ||||||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 2/2/2023 | 7.50 | % | 4,746 | 4,550 | 4,766 | (6)(15)(19) | |||||||||||||||||||||||
4,550 | 4,766 | ||||||||||||||||||||||||||||
A.T. Holdings II SÀRL | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, 9.50% cash due 12/22/2022 | 37,158 | 36,884 | 36,972 | (11)(15) | |||||||||||||||||||||||||
36,884 | 36,972 | ||||||||||||||||||||||||||||
Access CIG, LLC | Diversified Support Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025 | 3.84 | % | 5,365 | 5,010 | 5,340 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026 | 7.84 | % | 15,000 | 14,921 | 14,972 | (6) | |||||||||||||||||||||||
19,931 | 20,312 |
7
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Accupac, Inc. | Personal Products | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026 | 7.00 | % | $ | 16,181 | $ | 15,775 | $ | 16,181 | (6)(15) | ||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026 | — | (31) | — | (6)(15)(19) | |||||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 1/17/2026 | 7.00 | % | 2,042 | 1,991 | 2,042 | (6)(15) | |||||||||||||||||||||||
17,735 | 18,223 | ||||||||||||||||||||||||||||
Acquia Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 10/31/2025 | 8.00 | % | 20,950 | 20,646 | 20,929 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+7.00% cash due 10/31/2025 | 8.00 | % | 179 | 146 | 177 | (6)(15)(19) | |||||||||||||||||||||||
20,792 | 21,106 | ||||||||||||||||||||||||||||
ADB Companies, LLC | Construction & Engineering | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.25% cash due 12/18/2025 | 7.25 | % | 15,663 | 14,969 | 15,422 | (6)(15) | |||||||||||||||||||||||
14,969 | 15,422 | ||||||||||||||||||||||||||||
Aden & Anais Merger Sub, Inc. | Apparel, Accessories & Luxury Goods | ||||||||||||||||||||||||||||
51,645 Common Units in Aden & Anais Holdings, Inc. | 5,165 | — | (15) | ||||||||||||||||||||||||||
5,165 | — | ||||||||||||||||||||||||||||
AI Ladder (Luxembourg) Subco S.a.r.l. | Electrical Components & Equipment | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 | 4.58 | % | 14,555 | 14,122 | 14,568 | (6)(11) | |||||||||||||||||||||||
14,122 | 14,568 | ||||||||||||||||||||||||||||
AI Sirona (Luxembourg) Acquisition S.a.r.l. | Pharmaceuticals | ||||||||||||||||||||||||||||
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/2026 | 7.25 | % | € | 24,838 | 27,708 | 29,382 | (6)(11)(15) | ||||||||||||||||||||||
27,708 | 29,382 | ||||||||||||||||||||||||||||
AirStrip Technologies, Inc. | Application Software | ||||||||||||||||||||||||||||
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/2025 | 90 | — | (15) | ||||||||||||||||||||||||||
90 | — | ||||||||||||||||||||||||||||
All Web Leads, Inc. | Advertising | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 12/29/2023 | 7.50 | % | $ | 24,157 | 21,473 | 22,970 | (6)(15) | ||||||||||||||||||||||
21,473 | 22,970 | ||||||||||||||||||||||||||||
Alvotech Holdings S.A. | Biotechnology | (13) | |||||||||||||||||||||||||||
Fixed Rate Bond 15% PIK Tranche A due 6/24/2025 | 20,967 | 20,556 | 20,967 | (11)(15) | |||||||||||||||||||||||||
Fixed Rate Bond 15% PIK Tranche B due 6/24/2025 | 20,512 | 20,151 | 20,512 | (11)(15) | |||||||||||||||||||||||||
27,308 Common Shares | 6,322 | 6,322 | (15) | ||||||||||||||||||||||||||
47,029 | 47,801 | ||||||||||||||||||||||||||||
Amplify Finco Pty Ltd. | Movies & Entertainment | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 11/26/2026 | 5.00 | % | 15,415 | 13,772 | 15,145 | (6)(11)(15) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/2027 | 8.75 | % | 12,500 | 12,188 | 12,125 | (6)(11)(15) | |||||||||||||||||||||||
25,960 | 27,270 | ||||||||||||||||||||||||||||
Ankura Consulting Group LLC | Research & Consulting Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 3/19/2029 | 8.75 | % | 7,466 | 7,354 | 7,578 | (6)(15) | |||||||||||||||||||||||
7,354 | 7,578 | ||||||||||||||||||||||||||||
Apptio, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 | 8.25 | % | 34,458 | 33,341 | 33,842 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 | 8.25 | % | 892 | 846 | 852 | (6)(15)(19) | |||||||||||||||||||||||
34,187 | 34,694 | ||||||||||||||||||||||||||||
Ardonagh Midco 3 PLC | Insurance Brokers | ||||||||||||||||||||||||||||
First Lien Term Loan, EURIBOR+5.4375% cash 2.26875% PIK due 7/14/2026 | 6.44 | % | € | 1,942 | 2,154 | 2,294 | (6)(11)(15) | ||||||||||||||||||||||
First Lien Term Loan, UK LIBOR+5.4375% cash 2.26875% PIK due 7/14/2026 | 6.19 | % | £ | 18,449 | 23,139 | 25,486 | (6)(11)(15) | ||||||||||||||||||||||
Fixed Rate Bond, 11.50% cash due 1/15/2027 | $ | 1,182 | 1,171 | 1,300 | (11) | ||||||||||||||||||||||||
26,464 | 29,080 |
8
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Associated Asphalt Partners, LLC | Construction Materials | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.25% cash due 4/5/2024 | 6.25 | % | $ | 2,531 | $ | 2,216 | $ | 2,391 | (6) | ||||||||||||||||||||
2,216 | 2,391 | ||||||||||||||||||||||||||||
Athenex, Inc. | Pharmaceuticals | ||||||||||||||||||||||||||||
First Lien Term Loan, 11.00% cash due 6/19/2026 | 42,145 | 40,386 | 41,829 | (11)(15) | |||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026 | — | (274) | (158) | (11)(15)(19) | |||||||||||||||||||||||||
328,149 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027 | 973 | 302 | (11)(15) | ||||||||||||||||||||||||||
41,085 | 41,973 | ||||||||||||||||||||||||||||
Aurora Lux Finco S.À.R.L. | Airport Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026 | 7.00 | % | 22,713 | 22,268 | 21,372 | (6)(11)(15) | |||||||||||||||||||||||
22,268 | 21,372 | ||||||||||||||||||||||||||||
The Avery | Real Estate Operating Companies | ||||||||||||||||||||||||||||
First Lien Delayed Draw Term Loan in T8 Urban Condo Owner, LLC, LIBOR+7.30% cash due 2/17/2023 | 7.55 | % | 21,760 | 21,293 | 21,959 | (6)(15)(19) | |||||||||||||||||||||||
Subordinated Delayed Draw Debt in T8 Senior Mezz LLC, LIBOR+12.50% cash due 2/17/2023 | 12.75 | % | 4,954 | 4,851 | 4,959 | (6)(15)(19) | |||||||||||||||||||||||
26,144 | 26,918 | ||||||||||||||||||||||||||||
BAART Programs, Inc. | Health Care Equipment | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.50% cash due 6/11/2028 | 9.50 | % | 7,166 | 7,059 | 7,130 | (6)(15) | |||||||||||||||||||||||
Second Lien Delayed Draw Term Loan, LIBOR+8.50% cash due 6/11/2028 | 9.50 | % | 3,583 | 3,529 | 3,565 | (6)(15) | |||||||||||||||||||||||
10,588 | 10,695 | ||||||||||||||||||||||||||||
Blackhawk Network Holdings, Inc. | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026 | 7.13 | % | 30,625 | 30,158 | 30,548 | (6) | |||||||||||||||||||||||
30,158 | 30,548 | ||||||||||||||||||||||||||||
Blumenthal Temecula, LLC | Automotive Retail | ||||||||||||||||||||||||||||
First Lien Term Loan, 9.00% cash due 9/24/2023 | 3,979 | 3,980 | 3,979 | (15) | |||||||||||||||||||||||||
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC | 1,293 | 1,293 | (15) | ||||||||||||||||||||||||||
298,460 Preferred Units in Unstoppable Automotive VMV, LLC | 298 | 298 | (15) | ||||||||||||||||||||||||||
298,460 Common Units in Unstoppable Automotive AMV, LLC | 298 | 298 | (15) | ||||||||||||||||||||||||||
99,486 Common Units in Unstoppable Automotive VMV, LLC | 100 | 99 | (15) | ||||||||||||||||||||||||||
5,969 | 5,967 | ||||||||||||||||||||||||||||
Cadence Aerospace, LLC | Aerospace & Defense | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.25% cash 5.25% PIK due 11/14/2023 | 4.25 | % | 14,105 | 12,342 | 12,954 | (6)(15) | |||||||||||||||||||||||
12,342 | 12,954 | ||||||||||||||||||||||||||||
Chief Power Finance II, LLC | Independent Power Producers & Energy Traders | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022 | 7.50 | % | 24,181 | 23,704 | 23,637 | (6)(15) | |||||||||||||||||||||||
23,704 | 23,637 | ||||||||||||||||||||||||||||
CircusTrix Holdings, LLC | Leisure Facilities | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash 2.50% PIK due 7/16/2023 | 6.50 | % | 10,571 | 8,611 | 7,879 | (6)(15) | |||||||||||||||||||||||
8,611 | 7,879 | ||||||||||||||||||||||||||||
CITGO Holding, Inc. | Oil & Gas Refining & Marketing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 8/1/2023 | 8.00 | % | 11,664 | 11,531 | 11,621 | (6) | |||||||||||||||||||||||
Fixed Rate Bond, 9.25% cash due 8/1/2024 | 10,672 | 10,672 | 10,899 | ||||||||||||||||||||||||||
22,203 | 22,520 | ||||||||||||||||||||||||||||
CITGO Petroleum Corp. | Oil & Gas Refining & Marketing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.25% cash due 3/28/2024 | 7.25 | % | 14,258 | 13,862 | 14,374 | (6) | |||||||||||||||||||||||
13,862 | 14,374 | ||||||||||||||||||||||||||||
Clear Channel Outdoor Holdings Inc. | Advertising | ||||||||||||||||||||||||||||
Fixed Rate Bond, 7.50% cash due 6/1/2029 | 7,137 | 7,137 | 7,398 | (11) | |||||||||||||||||||||||||
7,137 | 7,398 |
9
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Continental Intermodal Group LP | Oil & Gas Storage & Transportation | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025 | $ | 37,851 | $ | 35,476 | $ | 31,795 | (6)(15) | ||||||||||||||||||||||
Common Stock Warrants expiration date 7/28/2025 | 648 | 1,917 | (15) | ||||||||||||||||||||||||||
36,124 | 33,712 | ||||||||||||||||||||||||||||
Convergeone Holdings, Inc. | IT Consulting & Other Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026 | 5.10 | % | 9,535 | 9,282 | 9,451 | (6) | |||||||||||||||||||||||
9,282 | 9,451 | ||||||||||||||||||||||||||||
Conviva Inc. | Application Software | ||||||||||||||||||||||||||||
517,851 Shares of Series D Preferred Stock | 605 | 894 | (15) | ||||||||||||||||||||||||||
605 | 894 | ||||||||||||||||||||||||||||
CorEvitas, LLC | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 12/13/2025 | 6.50 | % | 10,222 | 10,089 | 10,130 | (6)(15) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/2025 | 6.50 | % | 1,215 | 1,172 | 1,182 | (6)(15)(19) | |||||||||||||||||||||||
First Lien Revolver, PRIME+4.50% cash due 12/13/2025 | 7.75 | % | 305 | 281 | 289 | (6)(15)(19) | |||||||||||||||||||||||
1,099 Class A2 Common Units in CorEvitas Holdings, L.P. | 1,038 | 1,177 | (15) | ||||||||||||||||||||||||||
12,580 | 12,778 | ||||||||||||||||||||||||||||
Coty Inc. | Personal Products | ||||||||||||||||||||||||||||
First Lien Revolver, LIBOR+1.75% cash due 4/5/2023 | — | (712) | (395) | (6)(11)(15)(19) | |||||||||||||||||||||||||
(712) | (395) | ||||||||||||||||||||||||||||
Coyote Buyer, LLC | Specialty Chemicals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026 | 7.00 | % | 18,433 | 17,911 | 18,249 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025 | — | (13) | (13) | (6)(15)(19) | |||||||||||||||||||||||||
17,898 | 18,236 | ||||||||||||||||||||||||||||
Curium Bidco S.à.r.l. | Biotechnology | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.75% cash due 10/27/2028 | 8.50 | % | 16,787 | 16,535 | 17,123 | (6)(11)(15) | |||||||||||||||||||||||
16,535 | 17,123 | ||||||||||||||||||||||||||||
Delta Topco, Inc. | Systems Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.25% cash due 12/1/2028 | 8.00 | % | 6,680 | 6,647 | 6,789 | (6) | |||||||||||||||||||||||
6,647 | 6,789 | ||||||||||||||||||||||||||||
Digital.AI Software Holdings, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 2/10/2027 | 8.00 | % | 10,028 | 9,633 | 9,857 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+7.00% cash due 2/10/2027 | — | (30) | (18) | (6)(15)(19) | |||||||||||||||||||||||||
9,603 | 9,839 | ||||||||||||||||||||||||||||
Eagleview Technology Corporation | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/2026 | 8.50 | % | 8,974 | 8,884 | 8,869 | (6)(15) | |||||||||||||||||||||||
8,884 | 8,869 | ||||||||||||||||||||||||||||
EHR Canada, LLC | Food Retail | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 12/31/2021 | 9.00 | % | 3,750 | 3,739 | 3,746 | (6)(15) | |||||||||||||||||||||||
3,739 | 3,746 | ||||||||||||||||||||||||||||
EOS Fitness Opco Holdings, LLC | Leisure Facilities | ||||||||||||||||||||||||||||
487.5 Class A Preferred Units, 12% | 488 | 274 | (15) | ||||||||||||||||||||||||||
12,500 Class B Common Units | — | — | (15) | ||||||||||||||||||||||||||
488 | 274 | ||||||||||||||||||||||||||||
Firstlight Holdco, Inc. | Alternative Carriers | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025 | 3.60 | % | 7,030 | 6,566 | 6,984 | (6) | |||||||||||||||||||||||
6,566 | 6,984 | ||||||||||||||||||||||||||||
Fortress Biotech, Inc. | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, 11.00% cash due 8/27/2025 | 11,359 | 10,680 | 11,075 | (11)(15) | |||||||||||||||||||||||||
331,200 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030 | 405 | 434 | (11)(15) | ||||||||||||||||||||||||||
11,085 | 11,509 |
10
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
GI Chill Acquisition LLC | Managed Health Care | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025 | 4.15 | % | $ | 16,721 | $ | 16,479 | $ | 16,716 | (6)(15) | ||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026 | 7.65 | % | 6,250 | 6,210 | 6,219 | (6)(15) | |||||||||||||||||||||||
22,689 | 22,935 | ||||||||||||||||||||||||||||
GKD Index Partners, LLC | Specialized Finance | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+9.00% cash due 6/29/2023 | 10.00 | % | 26,668 | 26,062 | 26,188 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+9.00% cash due 6/29/2023 | 10.00 | % | 1,280 | 1,247 | 1,251 | (6)(15)(19) | |||||||||||||||||||||||
27,309 | 27,439 | ||||||||||||||||||||||||||||
Global Medical Response | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025 | 5.25 | % | 8,652 | 8,404 | 8,686 | (6) | |||||||||||||||||||||||
8,404 | 8,686 | ||||||||||||||||||||||||||||
Gulf Operating, LLC | Oil & Gas Storage & Transportation | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.25% cash due 8/25/2023 | 6.25 | % | 2,839 | 2,016 | 2,418 | (6) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+4.00% cash due 12/27/2021 | — | (704) | (377) | (6)(15)(19) | |||||||||||||||||||||||||
1,312 | 2,041 | ||||||||||||||||||||||||||||
Houghton Mifflin Harcourt Publishers Inc. | Education Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.25% cash due 11/22/2024 | 7.25 | % | 1,007 | 979 | 1,011 | (6)(11) | |||||||||||||||||||||||
979 | 1,011 | ||||||||||||||||||||||||||||
IBG Borrower LLC | Apparel, Accessories & Luxury Goods | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 8/2/2022 | 7.19 | % | 6,096 | 5,902 | 6,096 | (6)(15) | |||||||||||||||||||||||
5,902 | 6,096 | ||||||||||||||||||||||||||||
iCIMs, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024 | 7.50 | % | 25,635 | 24,972 | 25,489 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024 | 7.50 | % | 1,176 | 1,144 | 1,170 | (6)(15) | |||||||||||||||||||||||
26,116 | 26,659 | ||||||||||||||||||||||||||||
Immucor, Inc. | Health Care Supplies | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.75% cash due 7/2/2025 | 6.75 | % | 8,679 | 8,431 | 8,592 | (6)(15) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/2025 | 9.00 | % | 21,640 | 20,993 | 21,424 | (6)(15) | |||||||||||||||||||||||
29,424 | 30,016 | ||||||||||||||||||||||||||||
Integral Development Corporation | Other Diversified Financial Services | ||||||||||||||||||||||||||||
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024 | 113 | — | (15) | ||||||||||||||||||||||||||
113 | — | ||||||||||||||||||||||||||||
Inventus Power, Inc. | Electrical Components & Equipment | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 3/29/2024 | 6.00 | % | 18,897 | 18,724 | 18,708 | (6)(15) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/2024 | 9.50 | % | 11,366 | 11,155 | 11,139 | (6)(15) | |||||||||||||||||||||||
29,879 | 29,847 | ||||||||||||||||||||||||||||
INW Manufacturing, LLC | Personal Products | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.75% cash due 5/7/2027 | 6.50 | % | 37,266 | 36,169 | 36,520 | (6)(15) | |||||||||||||||||||||||
36,169 | 36,520 | ||||||||||||||||||||||||||||
Ivanti Software, Inc. | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.50% cash due 12/1/2028 | 9.50 | % | 17,346 | 16,847 | 17,346 | (6)(15) | |||||||||||||||||||||||
16,847 | 17,346 | ||||||||||||||||||||||||||||
Jazz Acquisition, Inc. | Aerospace & Defense | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.50% cash due 1/29/2027 | 8.50 | % | 22,870 | 21,686 | 22,802 | (6)(15) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+7.50% cash due 1/29/2027 | — | — | — | (6)(15)(19) | |||||||||||||||||||||||||
21,686 | 22,802 |
11
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Lanai Holdings III, Inc. | Health Care Distributors | ||||||||||||||||||||||||||||
First Lien Term Loan, PRIME+3.75% cash due 8/29/2022 | 7.00 | % | $ | 12,846 | $ | 12,763 | $ | 12,823 | (6) | ||||||||||||||||||||
12,763 | 12,823 | ||||||||||||||||||||||||||||
Latam Airlines Group S.A. | Airlines | ||||||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/2022 | 15,739 | 15,506 | 15,786 | (6)(11)(15)(19) | |||||||||||||||||||||||||
15,506 | 15,786 | ||||||||||||||||||||||||||||
Lift Brands Holdings, Inc. | Leisure Facilities | ||||||||||||||||||||||||||||
2,000,000 Class A Common Units in Snap Investments, LLC | 1,399 | — | (15) | ||||||||||||||||||||||||||
1,399 | — | ||||||||||||||||||||||||||||
Lightbox Intermediate, L.P. | Real Estate Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026 | 5.15 | % | 41,538 | 40,494 | 41,330 | (6)(15) | |||||||||||||||||||||||
40,494 | 41,330 | ||||||||||||||||||||||||||||
LogMeIn, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.75% cash due 8/31/2027 | 4.83 | % | 3,980 | 3,719 | 3,978 | (6) | |||||||||||||||||||||||
3,719 | 3,978 | ||||||||||||||||||||||||||||
LTI Holdings, Inc. | Electronic Components | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/2026 | 6.85 | % | 10,140 | 10,077 | 10,140 | (6) | |||||||||||||||||||||||
10,077 | 10,140 | ||||||||||||||||||||||||||||
Maravai Intermediate Holdings, LLC | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.75% cash due 10/19/2027 | 4.75 | % | 2,735 | 2,566 | 2,750 | (6) | |||||||||||||||||||||||
2,566 | 2,750 | ||||||||||||||||||||||||||||
Marinus Pharmaceuticals, Inc. | Pharmaceuticals | ||||||||||||||||||||||||||||
First Lien Term Loan, 11.50% cash due 5/11/2026 | 3,441 | 3,374 | 3,372 | (11)(15) | |||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, 11.50% cash due 5/11/2026 | — | — | — | (11)(15)(19) | |||||||||||||||||||||||||
3,374 | 3,372 | ||||||||||||||||||||||||||||
Mayfield Agency Borrower Inc. | Property & Casualty Insurance | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 2/28/2025 | 4.60 | % | 28,602 | 27,961 | 28,584 | (6) | |||||||||||||||||||||||
27,961 | 28,584 | ||||||||||||||||||||||||||||
MedAssets Software Intermediate Holdings, Inc. | Health Care Technology | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.75% cash due 1/29/2029 | 8.50 | % | 14,137 | 13,868 | 13,960 | (6)(15) | |||||||||||||||||||||||
13,868 | 13,960 | ||||||||||||||||||||||||||||
MHE Intermediate Holdings, LLC | Diversified Support Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024 | 6.00 | % | 16,526 | 15,357 | 16,161 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+5.00% cash due 3/10/2023 | — | (126) | (116) | (6)(15)(19) | |||||||||||||||||||||||||
15,231 | 16,045 | ||||||||||||||||||||||||||||
Mindbody, Inc. | Internet Services & Infrastructure | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/2025 | 8.00 | % | 38,626 | 37,270 | 36,734 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025 | — | (82) | (196) | (6)(15)(19) | |||||||||||||||||||||||||
37,188 | 36,538 | ||||||||||||||||||||||||||||
Ministry Brands, LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022 | — | (9) | (9) | (6)(15)(19) | |||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023 | 10.25 | % | 11,000 | 10,821 | 10,906 | (6)(15) | |||||||||||||||||||||||
10,812 | 10,897 | ||||||||||||||||||||||||||||
MRI Software LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026 | 6.50 | % | 25,398 | 24,835 | 25,429 | (6)(15) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 | — | (42) | 4 | (6)(15)(19) | |||||||||||||||||||||||||
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026 | — | (13) | 2 | (6)(15)(19) | |||||||||||||||||||||||||
24,780 | 25,435 |
12
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Navisite, LLC | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.50% cash due 12/30/2026 | 9.50 | % | $ | 22,560 | $ | 22,146 | $ | 22,334 | (6)(15) | ||||||||||||||||||||
22,146 | 22,334 | ||||||||||||||||||||||||||||
NeuAG, LLC | Fertilizers & Agricultural Chemicals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024 | 7.00 | % | 46,204 | 44,303 | 45,095 | (6)(15) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024 | — | (204) | (131) | (6)(15)(19) | |||||||||||||||||||||||||
44,099 | 44,964 | ||||||||||||||||||||||||||||
NN, Inc. | Industrial Machinery | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.88% cash due 9/19/2026 | 7.88 | % | 59,458 | 58,048 | 57,972 | (6)(11)(15) | |||||||||||||||||||||||
58,048 | 57,972 | ||||||||||||||||||||||||||||
OEConnection LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026 | 4.10 | % | 8,364 | 7,830 | 8,364 | (6) | |||||||||||||||||||||||
7,830 | 8,364 | ||||||||||||||||||||||||||||
Olaplex, Inc. | Personal Products | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026 | 7.50 | % | 52,460 | 51,169 | 52,460 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025 | — | (61) | (39) | (6)(15)(19) | |||||||||||||||||||||||||
51,108 | 52,421 | ||||||||||||||||||||||||||||
OmniSYS Acquisition Corporation | Diversified Support Services | ||||||||||||||||||||||||||||
100,000 Common Units in OSYS Holdings, LLC | 1,000 | 617 | (15) | ||||||||||||||||||||||||||
1,000 | 617 | ||||||||||||||||||||||||||||
Onvoy, LLC | Integrated Telecommunication Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024 | 5.50 | % | 3,611 | 3,398 | 3,613 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+10.50% cash due 2/10/2025 | 11.50 | % | 12,498 | 12,498 | 12,477 | (6)(15) | |||||||||||||||||||||||
19,666.67 Class A Units in GTCR Onvoy Holdings, LLC | 1,967 | 2,060 | (15) | ||||||||||||||||||||||||||
13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC | — | — | (15) | ||||||||||||||||||||||||||
17,863 | 18,150 | ||||||||||||||||||||||||||||
P & L Development, LLC | Pharmaceuticals | ||||||||||||||||||||||||||||
Fixed Rate Bond, 7.75% cash due 11/15/2025 | 9,123 | 9,123 | 9,613 | ||||||||||||||||||||||||||
9,123 | 9,613 | ||||||||||||||||||||||||||||
Park Place Technologies, LLC | Internet Services & Infrastructure | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 11/10/2027 | 6.00 | % | 9,975 | 9,484 | 10,022 | (6) | |||||||||||||||||||||||
9,484 | 10,022 | ||||||||||||||||||||||||||||
PaySimple, Inc. | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025 | 5.61 | % | 51,530 | 50,297 | 51,272 | (6)(15) | |||||||||||||||||||||||
50,297 | 51,272 | ||||||||||||||||||||||||||||
Pingora MSR Opportunity Fund I-A, LP | Thrifts & Mortgage Finance | ||||||||||||||||||||||||||||
1.86% limited partnership interest | 752 | 114 | (11)(16)(19) | ||||||||||||||||||||||||||
752 | 114 | ||||||||||||||||||||||||||||
Planview Parent, Inc. | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.25% cash due 12/18/2028 | 8.00 | % | 28,627 | 28,198 | 28,699 | (6)(15) | |||||||||||||||||||||||
28,198 | 28,699 | ||||||||||||||||||||||||||||
PLNTF Holdings, LLC | Leisure Facilities | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 3/12/2026 | 9.00 | % | 13,764 | 13,502 | 13,901 | (6)(15) | |||||||||||||||||||||||
13,502 | 13,901 | ||||||||||||||||||||||||||||
Pluralsight, LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 4/6/2027 | 9.00 | % | 41,502 | 40,705 | 40,672 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+8.00% cash due 4/6/2027 | — | (68) | (71) | (6)(15)(19) | |||||||||||||||||||||||||
40,637 | 40,601 |
13
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
PRGX Global, Inc. | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.75% cash due 3/3/2026 | 7.75 | % | $ | 34,204 | $ | 33,036 | $ | 33,520 | (6)(15) | ||||||||||||||||||||
First Lien Revolver, LIBOR+6.75% cash due 3/3/2026 | — | (46) | (50) | (6)(15)(19) | |||||||||||||||||||||||||
80,515 Class B Common Units | 79 | 81 | (15) | ||||||||||||||||||||||||||
33,069 | 33,551 | ||||||||||||||||||||||||||||
ProFrac Services, LLC | Industrial Machinery | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.50% cash due 9/15/2023 | 9.75 | % | 22,193 | 20,295 | 21,749 | (6)(15) | |||||||||||||||||||||||
20,295 | 21,749 | ||||||||||||||||||||||||||||
Project Boost Purchaser, LLC | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 5/31/2027 | 8.10 | % | 5,250 | 5,147 | 5,250 | (6)(15) | |||||||||||||||||||||||
5,147 | 5,250 | ||||||||||||||||||||||||||||
Pug LLC | Internet & Direct Marketing Retail | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 2/12/2027 | 8.75 | % | 21,283 | 20,223 | 21,629 | (6) | |||||||||||||||||||||||
20,223 | 21,629 | ||||||||||||||||||||||||||||
Quantum Bidco Limited | Food Distributors | ||||||||||||||||||||||||||||
First Lien Term Loan, UK LIBOR+6.00% cash due 1/29/2028 | 6.11 | % | £ | 3,501 | 4,618 | 4,734 | (6)(11) | ||||||||||||||||||||||
4,618 | 4,734 | ||||||||||||||||||||||||||||
QuorumLabs, Inc. | Application Software | ||||||||||||||||||||||||||||
64,887,669 Junior-2 Preferred Stock | 375 | — | (15) | ||||||||||||||||||||||||||
375 | — | ||||||||||||||||||||||||||||
Refac Optical Group | Specialty Stores | ||||||||||||||||||||||||||||
1,550.9435 Shares of Common Stock in Refac Holdings, Inc. | 1 | — | (15) | ||||||||||||||||||||||||||
550.9435 Series A-2 Preferred Stock in Refac Holdings, Inc., 10% | 305 | — | (15) | ||||||||||||||||||||||||||
1,000 Series A-1 Preferred Stock in Refac Holdings, Inc., 10% | 999 | — | (15) | ||||||||||||||||||||||||||
1,305 | — | ||||||||||||||||||||||||||||
Relativity ODA LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.50% PIK due 5/12/2027 | $ | 22,356 | 21,814 | 21,842 | (6)(15) | ||||||||||||||||||||||||
First Lien Revolver, LIBOR+6.50% cash due 5/12/2027 | — | (54) | (51) | (6)(15)(19) | |||||||||||||||||||||||||
21,760 | 21,791 | ||||||||||||||||||||||||||||
Renaissance Holding Corp. | Diversified Banks | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.00% cash due 5/29/2026 | 7.10 | % | 3,542 | 3,515 | 3,554 | (6) | |||||||||||||||||||||||
3,515 | 3,554 | ||||||||||||||||||||||||||||
RevSpring, Inc. | Commercial Printing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 10/11/2025 | 4.15 | % | 9,750 | 9,175 | 9,735 | (6)(15) | |||||||||||||||||||||||
9,175 | 9,735 | ||||||||||||||||||||||||||||
RS Ivy Holdco, Inc. | Oil & Gas Exploration & Production | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 12/23/2027 | 6.50 | % | 2,488 | 2,335 | 2,489 | (6)(15) | |||||||||||||||||||||||
2,335 | 2,489 | ||||||||||||||||||||||||||||
Sabert Corporation | Metal & Glass Containers | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026 | 5.50 | % | 1,823 | 1,710 | 1,825 | (6) | |||||||||||||||||||||||
1,710 | 1,825 | ||||||||||||||||||||||||||||
Salient CRGT, Inc. | Aerospace & Defense | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022 | 7.50 | % | 5,326 | 5,028 | 5,292 | (6)(15) | |||||||||||||||||||||||
5,028 | 5,292 | ||||||||||||||||||||||||||||
Scilex Pharmaceuticals Inc. | Pharmaceuticals | ||||||||||||||||||||||||||||
Fixed Rate Zero Coupon Bond due 8/15/2026 | 7,817 | 6,475 | 6,988 | (15) | |||||||||||||||||||||||||
6,475 | 6,988 | ||||||||||||||||||||||||||||
ShareThis, Inc. | Application Software | ||||||||||||||||||||||||||||
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024 | 367 | — | (15) | ||||||||||||||||||||||||||
367 | — |
14
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Sirva Worldwide, Inc. | Diversified Support Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025 | 5.60 | % | $ | 5,911 | $ | 5,241 | $ | 5,584 | (6) | ||||||||||||||||||||
5,241 | 5,584 | ||||||||||||||||||||||||||||
SM Wellness Holdings, Inc. | Health Care Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 4/15/2029 | 8.75 | % | 9,109 | 8,972 | 9,200 | (6)(15) | |||||||||||||||||||||||
8,972 | 9,200 | ||||||||||||||||||||||||||||
Sorrento Therapeutics, Inc. | Biotechnology | ||||||||||||||||||||||||||||
50,000 Common Stock Units | 197 | 485 | (11) | ||||||||||||||||||||||||||
197 | 485 | ||||||||||||||||||||||||||||
Star US Bidco LLC | Industrial Machinery | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 3/17/2027 | 5.25 | % | 1,197 | 1,113 | 1,198 | (6) | |||||||||||||||||||||||
1,113 | 1,198 | ||||||||||||||||||||||||||||
SumUp Holdings Luxembourg S.À.R.L. | Other Diversified Financial Services | ||||||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, EURIBOR+8.50% cash due 3/10/2026 | 10.00 | % | € | 12,401 | 14,121 | 14,406 | (6)(11)(15)(19) | ||||||||||||||||||||||
14,121 | 14,406 | ||||||||||||||||||||||||||||
Sunland Asphalt & Construction, LLC | Construction & Engineering | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 1/13/2026 | 7.00 | % | $ | 43,160 | 41,813 | 42,427 | (6)(15) | ||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 1/13/2022 | 7.00 | % | 5,437 | 5,337 | 5,330 | (6)(15)(19) | |||||||||||||||||||||||
47,150 | 47,757 | ||||||||||||||||||||||||||||
Supermoose Borrower, LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025 | 3.90 | % | 8,598 | 7,536 | 8,060 | (6) | |||||||||||||||||||||||
7,536 | 8,060 | ||||||||||||||||||||||||||||
Swordfish Merger Sub LLC | Auto Parts & Equipment | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+6.75% cash due 2/2/2026 | 7.75 | % | 12,500 | 12,464 | 12,256 | (6)(15) | |||||||||||||||||||||||
12,464 | 12,256 | ||||||||||||||||||||||||||||
Tacala, LLC | Restaurants | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/2028 | 8.25 | % | 9,448 | 9,312 | 9,489 | (6) | |||||||||||||||||||||||
9,312 | 9,489 | ||||||||||||||||||||||||||||
Tecta America Corp. | Construction & Engineering | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.50% cash due 4/9/2029 | 9.25 | % | 5,203 | 5,125 | 5,203 | (6)(15) | |||||||||||||||||||||||
5,125 | 5,203 | ||||||||||||||||||||||||||||
Telestream Holdings Corporation | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.75% cash due 10/15/2025 | 9.75 | % | 18,556 | 18,031 | 18,278 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+8.75% cash due 10/15/2025 | — | (30) | (26) | (6)(15)(19) | |||||||||||||||||||||||||
18,001 | 18,252 | ||||||||||||||||||||||||||||
TerSera Therapeutics LLC | Pharmaceuticals | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+9.50% cash due 3/30/2024 | 10.50 | % | 29,663 | 29,328 | 29,371 | (6)(15) | |||||||||||||||||||||||
668,879 Common Units of TerSera Holdings LLC | 2,192 | 3,487 | (15) | ||||||||||||||||||||||||||
31,520 | 32,858 | ||||||||||||||||||||||||||||
TGNR HoldCo LLC | Integrated Oil & Gas | ||||||||||||||||||||||||||||
Subordinated Debt, 11.50% cash due 5/14/2026 | 4,984 | 4,836 | 4,834 | (11)(15)(20) | |||||||||||||||||||||||||
4,836 | 4,834 | ||||||||||||||||||||||||||||
Thermacell Repellents, Inc. | Leisure Products | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 12/4/2026 | 7.00 | % | 6,651 | 6,618 | 6,618 | (6)(15) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 12/4/2026 | 7.00 | % | 396 | 392 | 392 | (6)(15)(19) | |||||||||||||||||||||||
7,010 | 7,010 |
15
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Thrasio, LLC | Internet & Direct Marketing Retail | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 12/18/2026 | 8.00 | % | $ | 22,831 | $ | 22,018 | $ | 22,603 | (6)(15) | ||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/18/2026 | 8.00 | % | 4,588 | 4,354 | 4,436 | (6)(15)(19) | |||||||||||||||||||||||
8,434 Shares of Series C-3 Preferred Stock in Thrasio Holdings, Inc. | 101 | 103 | (15) | ||||||||||||||||||||||||||
284,650.32 Shares of Series C-2 Preferred Stock in Thrasio Holdings, Inc. | 2,409 | 3,478 | (15) | ||||||||||||||||||||||||||
15,468 Shares of Series X Preferred Stock in Thrasio Holdings, Inc. | 15,252 | 16,342 | (15)(19) | ||||||||||||||||||||||||||
44,134 | 46,962 | ||||||||||||||||||||||||||||
TIBCO Software Inc. | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/2028 | 7.36 | % | 16,788 | 16,680 | 17,079 | (6) | |||||||||||||||||||||||
16,680 | 17,079 | ||||||||||||||||||||||||||||
TigerConnect, Inc. | Application Software | ||||||||||||||||||||||||||||
299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024 | 60 | 525 | (15) | ||||||||||||||||||||||||||
60 | 525 | ||||||||||||||||||||||||||||
Transact Holdings Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.75% cash due 4/30/2026 | 4.85 | % | 6,878 | 6,774 | 6,843 | (6)(15) | |||||||||||||||||||||||
6,774 | 6,843 | ||||||||||||||||||||||||||||
Velocity Commercial Capital, LLC | Thrifts & Mortgage Finance | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 2/5/2026 | 9.00 | % | 16,010 | 15,391 | 15,930 | (6)(15) | |||||||||||||||||||||||
15,391 | 15,930 | ||||||||||||||||||||||||||||
Veritas US Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 9/1/2025 | 6.00 | % | 5,955 | 5,591 | 6,001 | (6) | |||||||||||||||||||||||
5,591 | 6,001 | ||||||||||||||||||||||||||||
Verscend Holding Corp. | Health Care Technology | ||||||||||||||||||||||||||||
Fixed Rate Bond, 9.75% cash due 8/15/2026 | 2,756 | 2,774 | 2,908 | ||||||||||||||||||||||||||
2,774 | 2,908 | ||||||||||||||||||||||||||||
Vitalyst Holdings, Inc. | IT Consulting & Other Services | ||||||||||||||||||||||||||||
675 Series A Preferred Stock Units | 675 | 440 | (15) | ||||||||||||||||||||||||||
7,500 Class A Common Stock Units | 75 | — | (15) | ||||||||||||||||||||||||||
750 | 440 | ||||||||||||||||||||||||||||
Win Brands Group LLC | Housewares & Specialties | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+9.00% cash 5.00% PIK due 1/22/2026 | 10.00 | % | 1,881 | 1,863 | 1,872 | (6)(15) | |||||||||||||||||||||||
139 Class F Warrants in Brand Value Growth LLC (exercise price $0.01) expiration date 1/25/2027 | — | — | (15) | ||||||||||||||||||||||||||
1,863 | 1,872 | ||||||||||||||||||||||||||||
Windstream Services II, LLC | Integrated Telecommunication Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027 | 7.25 | % | 31,679 | 30,372 | 31,826 | (6) | |||||||||||||||||||||||
18,032 Shares of Common Stock in Windstream Holdings II, LLC | 216 | 298 | (15) | ||||||||||||||||||||||||||
109,420 Warrants in Windstream Holdings II, LLC | 1,842 | 1,805 | (15) | ||||||||||||||||||||||||||
32,430 | 33,929 | ||||||||||||||||||||||||||||
WP CPP Holdings, LLC | Aerospace & Defense | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.75% cash due 4/30/2025 | 4.75 | % | 4,380 | 3,990 | 4,299 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 | 8.75 | % | 16,000 | 15,744 | 15,653 | (6)(15) | |||||||||||||||||||||||
19,734 | 19,952 |
16
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
WPEngine, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 3/27/2026 | 7.50 | % | $ | 14,188 | $ | 13,908 | $ | 13,982 | (6)(15) | ||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+6.50% cash due 3/27/2026 | — | (519) | (382) | (6)(15)(19) | |||||||||||||||||||||||||
13,389 | 13,600 | ||||||||||||||||||||||||||||
Zep Inc. | Specialty Chemicals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 8/12/2024 | 5.00 | % | 6,511 | 6,152 | 6,438 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.25% cash due 8/11/2025 | 9.25 | % | 22,748 | 22,690 | 22,248 | (6)(15) | |||||||||||||||||||||||
28,842 | 28,686 | ||||||||||||||||||||||||||||
Zephyr Bidco Limited | Specialized Finance | ||||||||||||||||||||||||||||
Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/2026 | 7.55 | % | £ | 18,000 | 23,770 | 24,711 | (6)(11) | ||||||||||||||||||||||
23,770 | 24,711 | ||||||||||||||||||||||||||||
Total Non-Control/Non-Affiliate Investments (157.9% of net assets) | $ | 2,021,729 | $ | 2,055,864 | |||||||||||||||||||||||||
Total Portfolio Investments (179.6% of net assets) | $ | 2,320,224 | $ | 2,339,301 | |||||||||||||||||||||||||
Cash and Cash Equivalents and Restricted Cash | |||||||||||||||||||||||||||||
JP Morgan Prime Money Market Fund, Institutional Shares | $ | 72,407 | $ | 72,407 | |||||||||||||||||||||||||
Other cash accounts | 15,122 | 15,122 | |||||||||||||||||||||||||||
Total Cash and Cash Equivalents and Restricted Cash (6.7% of net assets) | $ | 87,529 | $ | 87,529 | |||||||||||||||||||||||||
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash (186.3% of net assets) | $ | 2,407,753 | $ | 2,426,830 |
Derivative Instrument | Notional Amount to be Purchased | Notional Amount to be Sold | Maturity Date | Counterparty | Cumulative Unrealized Appreciation /(Depreciation) | |||||||||||||||||||||||||||
Foreign currency forward contract | $ | 53,390 | £ | 37,709 | 8/12/2021 | JPMorgan Chase Bank, N.A. | $ | 1,292 | ||||||||||||||||||||||||
Foreign currency forward contract | $ | 46,457 | € | 38,165 | 8/12/2021 | JPMorgan Chase Bank, N.A. | 1,157 | |||||||||||||||||||||||||
$ | 2,449 |
Derivative Instrument | Company Receives | Company Pays | Counterparty | Maturity Date | Notional Amount | Fair Value | ||||||||||||||||||||||||||||||||
Interest rate swap | Fixed 2.7% | Floating 3-month LIBOR +1.658% | Royal Bank of Canada | 1/15/2027 | $350,000 | $(267) |
17
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
June 30, 2021
(dollar amounts in thousands)
(unaudited)
(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(4)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(5)Each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.
(6)The interest rate on the principal balance outstanding for 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 June 30, 2021, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.10%, the 60-day LIBOR at 0.13%, the 90-day LIBOR at 0.15%, the 180-day LIBOR at 0.17%, the 360-day LIBOR at 0.25%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.05%, the 180-day UK LIBOR at 0.04%, the 30-day EURIBOR at (0.58)%, the 90-day EURIBOR at (0.55)% and the 180-day EURIBOR at (0.54)%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(7)Principal includes accumulated payment in kind ("PIK") interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.
(8)Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(9)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the nine months ended June 30, 2021 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(10)First Star Speir Aviation 1 Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with Accounting Standards Update ("ASU") 2013-08, the Company has deemed the holding company to be an investment company under accounting principles generally accepted in the United States ("GAAP") and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of June 30, 2021, qualifying assets represented 75.2% of the Company's total assets and non-qualifying assets represented 24.8% of the Company's total assets.
(12)Income producing through payment of dividends or distributions.
(13)PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment subsequent to a restructure that occurred during the three months ended June 30, 2021. As a result, the principal amount of the investment does not increase over time for accumulated PIK interest. As of June 30, 2021, the accumulated PIK interest balance for each of the A notes and the B notes was $0.1 million.
(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(15)As of June 30, 2021, these investments were categorized as Level 3 within the fair value hierarchy established by Financial Accounting Standards Board ("FASB") guidance under Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("ASC 820").
(16)This investment was valued using net asset value as a practical expedient for fair value. Consistent with ASC 820, these investments are excluded from the hierarchical levels.
(17)Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(18)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(19)Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(20)This investment represents a participation interest in the underlying securities shown.
See notes to Consolidated Financial Statements.
18
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Control Investments | (8)(9) | ||||||||||||||||||||||||||||
C5 Technology Holdings, LLC | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
829 Common Units | $ | — | $ | — | (20) | ||||||||||||||||||||||||
34,984,460.37 Preferred Units | 34,984 | 27,638 | (20) | ||||||||||||||||||||||||||
34,984 | 27,638 | ||||||||||||||||||||||||||||
Dominion Diagnostics, LLC | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 2/28/2024 | 6.00 | % | $ | 27,660 | 27,660 | 27,660 | (6)(20) | ||||||||||||||||||||||
First Lien Revolver, LIBOR+5.00% cash due 2/28/2024 | 6.00 | % | 5,260 | 5,260 | 5,260 | (6)(19)(20) | |||||||||||||||||||||||
30,030.8 Common Units in DD Healthcare Services Holdings, LLC | 18,626 | 7,667 | (20) | ||||||||||||||||||||||||||
51,546 | 40,587 | ||||||||||||||||||||||||||||
First Star Speir Aviation Limited | Airlines | (10) | |||||||||||||||||||||||||||
First Lien Term Loan, 9.00% cash due 12/15/2020 | 11,510 | 2,035 | 11,510 | (11)(20) | |||||||||||||||||||||||||
100% equity interest | 8,500 | 1,622 | (11)(12)(20) | ||||||||||||||||||||||||||
10,535 | 13,132 | ||||||||||||||||||||||||||||
New IPT, Inc. | Oil & Gas Equipment & Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021 | 6.00 | % | 2,304 | 2,304 | 1,800 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+5.00% cash due 3/17/2021 | 6.00 | % | 1,009 | 1,009 | 788 | (6)(19)(20) | |||||||||||||||||||||||
50.087 Class A Common Units in New IPT Holdings, LLC | — | — | (20) | ||||||||||||||||||||||||||
3,313 | 2,588 | ||||||||||||||||||||||||||||
Senior Loan Fund JV I, LLC | Multi-Sector Holdings | (14) | |||||||||||||||||||||||||||
Subordinated Debt, LIBOR+7.00% cash due 12/29/2028 | 7.17 | % | 96,250 | 96,250 | 96,250 | (6)(11)(20) | |||||||||||||||||||||||
87.5% LLC equity interest | 49,322 | 21,190 | (11)(16)(19) | ||||||||||||||||||||||||||
145,572 | 117,440 | ||||||||||||||||||||||||||||
Total Control Investments (22.0% of net assets) | $ | 245,950 | $ | 201,385 | |||||||||||||||||||||||||
Affiliate Investments | (17) | ||||||||||||||||||||||||||||
Assembled Brands Capital LLC | Specialized Finance | ||||||||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 10/17/2023 | 7.00 | % | $ | 4,688 | $ | 4,688 | $ | 4,194 | (6)(19)(20) | ||||||||||||||||||||
1,609,201 Class A Units | 764 | 483 | (20) | ||||||||||||||||||||||||||
1,019,168.80 Preferred Units, 6% | 1,019 | 1,091 | (20) | ||||||||||||||||||||||||||
70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029 | — | — | (20) | ||||||||||||||||||||||||||
6,471 | 5,768 | ||||||||||||||||||||||||||||
Caregiver Services, Inc. | Health Care Services | ||||||||||||||||||||||||||||
1,080,399 shares of Series A Preferred Stock, 10% | 1,080 | 741 | (20) | ||||||||||||||||||||||||||
1,080 | 741 | ||||||||||||||||||||||||||||
Total Affiliate Investments (0.7% of net assets) | $ | 7,551 | $ | 6,509 | |||||||||||||||||||||||||
Non-Control/Non-Affiliate Investments | (18) | ||||||||||||||||||||||||||||
4 Over International, LLC | Commercial Printing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022 | 7.00 | % | $ | 5,676 | $ | 5,654 | $ | 5,264 | (6)(20) | ||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 6/7/2021 | 7.00 | % | 2,232 | 2,214 | 2,070 | (6)(20) | |||||||||||||||||||||||
7,868 | 7,334 | ||||||||||||||||||||||||||||
99 Cents Only Stores LLC | General Merchandise Stores | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022 | 6.00 | % | 19,431 | 19,220 | 17,877 | (6) | |||||||||||||||||||||||
19,220 | 17,877 | ||||||||||||||||||||||||||||
A.T. Holdings II SÀRL | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, 12.00% cash due 4/27/2023 | 22,619 | 22,619 | 26,464 | (11)(20) | |||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, 12.00% cash due 4/27/2023 | 1,508 | 1,508 | 1,780 | (11)(19)(20) | |||||||||||||||||||||||||
24,127 | 28,244 |
19
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Access CIG, LLC | Diversified Support Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026 | 7.91 | % | $ | 15,000 | $ | 14,909 | $ | 14,250 | (6) | ||||||||||||||||||||
14,909 | 14,250 | ||||||||||||||||||||||||||||
Accupac, Inc. | Personal Products | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026 | 7.00 | % | 12,487 | 12,294 | 12,487 | (6)(20) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026 | — | (36) | — | (6)(19)(20) | |||||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 1/17/2026 | 7.00 | % | 1,564 | 1,540 | 1,564 | (6)(20) | |||||||||||||||||||||||
13,798 | 14,051 | ||||||||||||||||||||||||||||
Acquia Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 10/31/2025 | 8.00 | % | 20,950 | 20,594 | 20,499 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+7.00% cash due 10/31/2025 | — | (39) | (48) | (6)(19)(20) | |||||||||||||||||||||||||
20,555 | 20,451 | ||||||||||||||||||||||||||||
Aden & Anais Merger Sub, Inc. | Apparel, Accessories & Luxury Goods | ||||||||||||||||||||||||||||
51,645 Common Units in Aden & Anais Holdings, Inc. | 5,165 | — | (20) | ||||||||||||||||||||||||||
5,165 | — | ||||||||||||||||||||||||||||
AdVenture Interactive, Corp. | Advertising | ||||||||||||||||||||||||||||
9,073 shares of common stock | 13,611 | 13,440 | (20) | ||||||||||||||||||||||||||
13,611 | 13,440 | ||||||||||||||||||||||||||||
AI Ladder (Luxembourg) Subco S.a.r.l. | Electrical Components & Equipment | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 | 4.65 | % | 21,374 | 20,934 | 20,465 | (6)(11) | |||||||||||||||||||||||
20,934 | 20,465 | ||||||||||||||||||||||||||||
AI Sirona (Luxembourg) Acquisition S.a.r.l. | Pharmaceuticals | ||||||||||||||||||||||||||||
Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/2026 | 7.25 | % | € | 24,838 | 27,668 | 28,435 | (6)(11)(20) | ||||||||||||||||||||||
27,668 | 28,435 | ||||||||||||||||||||||||||||
Airbnb, Inc. | Hotels, Resorts & Cruise Lines | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.50% cash due 4/17/2025 | 8.50 | % | $ | 15,743 | 15,378 | 17,081 | (6) | ||||||||||||||||||||||
15,378 | 17,081 | ||||||||||||||||||||||||||||
AirStrip Technologies, Inc. | Application Software | ||||||||||||||||||||||||||||
5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/2025 | 90 | — | (20) | ||||||||||||||||||||||||||
90 | — | ||||||||||||||||||||||||||||
Aldevron, L.L.C. | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026 | 5.25 | % | 7,960 | 7,880 | 7,977 | (6) | |||||||||||||||||||||||
7,880 | 7,977 | ||||||||||||||||||||||||||||
Algeco Scotsman Global Finance Plc | Construction & Engineering | ||||||||||||||||||||||||||||
Fixed Rate Bond, 8.00% cash due 2/15/2023 | 13,524 | 13,277 | 13,465 | (11) | |||||||||||||||||||||||||
13,277 | 13,465 | ||||||||||||||||||||||||||||
Alvotech Holdings S.A. | Biotechnology | (13) | |||||||||||||||||||||||||||
Fixed Rate Bond 15% PIK Note A due 12/13/2023 | 14,800 | 18,849 | 19,968 | (11)(20) | |||||||||||||||||||||||||
Fixed Rate Bond 15% PIK Note B due 12/13/2023 | 14,800 | 18,849 | 19,196 | (11)(20) | |||||||||||||||||||||||||
37,698 | 39,164 | ||||||||||||||||||||||||||||
Amplify Finco Pty Ltd. | Movies & Entertainment | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 11/26/2026 | 4.75 | % | 995 | 909 | 856 | (6)(11)(20) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 11/26/2027 | 8.75 | % | 12,500 | 12,188 | 9,438 | (6)(11)(20) | |||||||||||||||||||||||
13,097 | 10,294 |
20
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Ancile Solutions, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021 | 8.00 | % | $ | 8,181 | $ | 8,150 | $ | 8,124 | (6)(20) | ||||||||||||||||||||
8,150 | 8,124 | ||||||||||||||||||||||||||||
Apptio, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 | 8.25 | % | 23,764 | 23,420 | 23,297 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 | — | (22) | (30) | (6)(19)(20) | |||||||||||||||||||||||||
23,398 | 23,267 | ||||||||||||||||||||||||||||
Ardonagh Midco 3 PLC | Insurance Brokers | ||||||||||||||||||||||||||||
First Lien Term Loan, EURIBOR+7.50% cash due 7/14/2026 | 8.50 | % | € | 1,440 | 1,594 | 1,640 | (6)(11)(20) | ||||||||||||||||||||||
First Lien Term Loan, UK LIBOR+7.50% cash due 7/14/2026 | 8.25 | % | £ | 11,303 | 13,752 | 14,188 | (6)(11)(20) | ||||||||||||||||||||||
First Lien Delayed Draw Term Loan, UK LIBOR+7.50% cash due 7/14/2026 | £ | — | — | — | (6)(11)(19)(20) | ||||||||||||||||||||||||
Fixed Rate Bond, 11.50% cash due 1/15/2027 | $ | 2,222 | 2,200 | 2,255 | (11) | ||||||||||||||||||||||||
17,546 | 18,083 | ||||||||||||||||||||||||||||
Associated Asphalt Partners, LLC | Construction Materials | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.25% cash due 4/5/2024 | 6.25 | % | 2,554 | 2,150 | 2,073 | (6) | |||||||||||||||||||||||
2,150 | 2,073 | ||||||||||||||||||||||||||||
Asurion, LLC | Property & Casualty Insurance | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+6.50% cash due 8/4/2025 | 6.65 | % | 19,985 | 19,950 | 20,058 | (6) | |||||||||||||||||||||||
19,950 | 20,058 | ||||||||||||||||||||||||||||
Athenex, Inc. | Pharmaceuticals | ||||||||||||||||||||||||||||
First Lien Term Loan, 11.00% cash due 6/19/2026 | 28,475 | 27,252 | 28,261 | (11)(20) | |||||||||||||||||||||||||
First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026 | — | (321) | (171) | (11)(19)(20) | |||||||||||||||||||||||||
266,052 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027 | 915 | 785 | (11)(20) | ||||||||||||||||||||||||||
27,846 | 28,875 | ||||||||||||||||||||||||||||
Aurora Lux Finco S.À.R.L. | Airport Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026 | 7.00 | % | 22,885 | 22,376 | 21,283 | (6)(11)(20) | |||||||||||||||||||||||
22,376 | 21,283 | ||||||||||||||||||||||||||||
Blackhawk Network Holdings, Inc. | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026 | 7.19 | % | 26,250 | 26,049 | 24,150 | (6) | |||||||||||||||||||||||
26,049 | 24,150 | ||||||||||||||||||||||||||||
Boxer Parent Company Inc. | Systems Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 | 4.40 | % | 13,775 | 13,666 | 13,407 | (6) | |||||||||||||||||||||||
13,666 | 13,407 | ||||||||||||||||||||||||||||
BX Commercial Mortgage Trust 2020-VIVA | Diversified Real Estate Activities | ||||||||||||||||||||||||||||
Class D Variable Notes due 3/9/2044 | 3.67 | % | 12,556 | 10,482 | 11,451 | (6)(11)(20) | |||||||||||||||||||||||
Class E Variable Notes due 3/9/2044 | 3.67 | % | 6,221 | 4,806 | 5,395 | (6)(11)(20) | |||||||||||||||||||||||
15,288 | 16,846 | ||||||||||||||||||||||||||||
California Pizza Kitchen, Inc. | Restaurants | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 8/23/2022 | 3,222 | 3,081 | 983 | (6)(21) | |||||||||||||||||||||||||
3,081 | 983 | ||||||||||||||||||||||||||||
Chief Power Finance II, LLC | Independent Power Producers & Energy Traders | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022 | 7.50 | % | 21,850 | 21,462 | 20,812 | (6)(20) | |||||||||||||||||||||||
21,462 | 20,812 | ||||||||||||||||||||||||||||
CITGO Holding, Inc. | Oil & Gas Refining & Marketing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 8/1/2023 | 8.00 | % | 11,753 | 11,570 | 11,081 | (6) | |||||||||||||||||||||||
Fixed Rate Bond, 9.25% cash due 8/1/2024 | 10,672 | 10,672 | 10,192 | ||||||||||||||||||||||||||
22,242 | 21,273 |
21
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
CITGO Petroleum Corp. | Oil & Gas Refining & Marketing | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024 | 6.00 | % | $ | 8,979 | $ | 8,890 | $ | 8,553 | (6) | ||||||||||||||||||||
8,890 | 8,553 | ||||||||||||||||||||||||||||
Continental Intermodal Group LP | Oil & Gas Storage & Transportation | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025 | 24,741 | 24,741 | 21,753 | (6)(20) | |||||||||||||||||||||||||
Common Stock Warrants expiration date 7/28/2025 | — | 1,672 | (20) | ||||||||||||||||||||||||||
24,741 | 23,425 | ||||||||||||||||||||||||||||
Convergeone Holdings, Inc. | IT Consulting & Other Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026 | 5.15 | % | 14,621 | 14,169 | 13,465 | (6) | |||||||||||||||||||||||
14,169 | 13,465 | ||||||||||||||||||||||||||||
Conviva Inc. | Application Software | ||||||||||||||||||||||||||||
417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021 | 105 | 395 | (20) | ||||||||||||||||||||||||||
105 | 395 | ||||||||||||||||||||||||||||
Corrona, LLC | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 12/13/2025 | 6.50 | % | 10,300 | 10,144 | 10,152 | (6)(20) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/2025 | — | (32) | (52) | (6)(19)(20) | |||||||||||||||||||||||||
First Lien Revolver, PRIME+4.50% cash due 12/13/2025 | 7.75 | % | 305 | 277 | 279 | (6)(19)(20) | |||||||||||||||||||||||
1,099 Class A2 Common Units in Corrona Group Holdings, L.P. | 1,038 | 1,038 | (20) | ||||||||||||||||||||||||||
11,427 | 11,417 | ||||||||||||||||||||||||||||
Coyote Buyer, LLC | Specialty Chemicals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026 | 7.00 | % | 13,123 | 12,992 | 12,992 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025 | — | (9) | (9) | (6)(19)(20) | |||||||||||||||||||||||||
12,983 | 12,983 | ||||||||||||||||||||||||||||
CTOS, LLC | Trading Companies & Distributors | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 4/18/2025 | 4.40 | % | 10,139 | 10,228 | 10,069 | (6) | |||||||||||||||||||||||
10,228 | 10,069 | ||||||||||||||||||||||||||||
Eagleview Technology Corporation | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.50% cash due 8/14/2026 | 8.50 | % | 12,000 | 11,880 | 10,440 | (6)(20) | |||||||||||||||||||||||
11,880 | 10,440 | ||||||||||||||||||||||||||||
EHR Canada, LLC | Food Retail | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 12/4/2020 | 9.00 | % | 6,861 | 6,851 | 6,998 | (6)(20) | |||||||||||||||||||||||
6,851 | 6,998 | ||||||||||||||||||||||||||||
EOS Fitness Opco Holdings, LLC | Leisure Facilities | ||||||||||||||||||||||||||||
487.5 Class A Preferred Units, 12% | 488 | 49 | (20) | ||||||||||||||||||||||||||
12,500 Class B Common Units | — | — | (20) | ||||||||||||||||||||||||||
488 | 49 | ||||||||||||||||||||||||||||
ExamSoft Worldwide, Inc. | Application Software | ||||||||||||||||||||||||||||
180,707 Class C Units in ExamSoft Investor LLC | 181 | 500 | (20) | ||||||||||||||||||||||||||
181 | 500 | ||||||||||||||||||||||||||||
Fortress Biotech, Inc. | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, 11.00% cash due 8/27/2025 | 8,346 | 7,842 | 7,908 | (11)(20) | |||||||||||||||||||||||||
243,348 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030 | 258 | 419 | (11)(20) | ||||||||||||||||||||||||||
8,100 | 8,327 | ||||||||||||||||||||||||||||
GI Chill Acquisition LLC | Managed Health Care | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025 | 4.22 | % | 17,640 | 17,552 | 17,331 | (6)(20) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026 | 7.72 | % | 10,000 | 9,927 | 9,350 | (6)(20) | |||||||||||||||||||||||
27,479 | 26,681 |
22
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
GKD Index Partners, LLC | Specialized Finance | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023 | 8.00 | % | $ | 20,933 | $ | 20,818 | $ | 20,577 | (6)(20) | ||||||||||||||||||||
First Lien Revolver, LIBOR+7.00% cash due 6/29/2023 | 8.00 | % | 924 | 915 | 904 | (6)(19)(20) | |||||||||||||||||||||||
21,733 | 21,481 | ||||||||||||||||||||||||||||
Global Medical Response | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025 | 5.25 | % | 6,256 | 6,152 | 6,084 | (6) | |||||||||||||||||||||||
6,152 | 6,084 | ||||||||||||||||||||||||||||
Guidehouse LLP | Research & Consulting Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025 | 4.65 | % | 4,949 | 4,907 | 4,912 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026 | 8.15 | % | 20,000 | 19,930 | 19,300 | (6)(20) | |||||||||||||||||||||||
24,837 | 24,212 | ||||||||||||||||||||||||||||
Gulf Operating, LLC | Oil & Gas Storage & Transportation | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.25% cash due 8/25/2023 | 6.25 | % | 3,275 | 1,874 | 2,324 | (6) | |||||||||||||||||||||||
1,874 | 2,324 | ||||||||||||||||||||||||||||
Houghton Mifflin Harcourt Publishers Inc. | Education Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.25% cash due 11/22/2024 | 7.25 | % | 6,738 | 6,508 | 6,300 | (6)(11) | |||||||||||||||||||||||
6,508 | 6,300 | ||||||||||||||||||||||||||||
I Drive Safely, LLC | Education Services | ||||||||||||||||||||||||||||
125,079 Class A Common Units of IDS Investments, LLC | 1,000 | 200 | (20) | ||||||||||||||||||||||||||
1,000 | 200 | ||||||||||||||||||||||||||||
IBG Borrower LLC | Apparel, Accessories & Luxury Goods | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash due 8/2/2022 | 7.25 | % | 9,056 | 8,569 | 7,856 | (6)(20) | |||||||||||||||||||||||
8,569 | 7,856 | ||||||||||||||||||||||||||||
iCIMs, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024 | 7.50 | % | 16,718 | 16,493 | 16,584 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024 | — | (15) | (7) | (6)(19)(20) | |||||||||||||||||||||||||
16,478 | 16,577 | ||||||||||||||||||||||||||||
Immucor, Inc. | Health Care Supplies | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.75% cash due 7/2/2025 | 6.75 | % | 6,477 | 6,354 | 6,347 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+5.75% cash due 7/2/2025 | — | (10) | (11) | (6)(19)(20) | |||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/2025 | 9.00 | % | 15,611 | 15,316 | 15,298 | (6)(20) | |||||||||||||||||||||||
21,660 | 21,634 | ||||||||||||||||||||||||||||
Integral Development Corporation | Other Diversified Financial Services | ||||||||||||||||||||||||||||
1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024 | 113 | — | (20) | ||||||||||||||||||||||||||
113 | — | ||||||||||||||||||||||||||||
L Squared Capital Partners LLC | Multi-Sector Holdings | ||||||||||||||||||||||||||||
2.00% limited partnership interest | 887 | 2,192 | (11)(16) | ||||||||||||||||||||||||||
887 | 2,192 | ||||||||||||||||||||||||||||
Lanai Holdings III, Inc. | Health Care Distributors | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.75% cash due 8/29/2022 | 5.75 | % | 12,948 | 12,810 | 12,260 | (6) | |||||||||||||||||||||||
12,810 | 12,260 | ||||||||||||||||||||||||||||
Lannett Company, Inc. | Pharmaceuticals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 11/25/2020 | 6.00 | % | 460 | 460 | 456 | (6)(11) | |||||||||||||||||||||||
460 | 456 |
23
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Lift Brands Holdings, Inc. | Leisure Facilities | ||||||||||||||||||||||||||||
2,000,000 Class A Common Units in Snap Investments, LLC | $ | 1,399 | $ | — | (20) | ||||||||||||||||||||||||
1,399 | — | ||||||||||||||||||||||||||||
Lightbox Intermediate, L.P. | Real Estate Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026 | 5.15 | % | $ | 39,500 | 39,023 | 37,723 | (6)(20) | ||||||||||||||||||||||
39,023 | 37,723 | ||||||||||||||||||||||||||||
LogMeIn, Inc. | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+9.00% cash due 8/31/2028 | 9.16 | % | 9,293 | 8,831 | 9,247 | (6) | |||||||||||||||||||||||
8,831 | 9,247 | ||||||||||||||||||||||||||||
LTI Holdings, Inc. | Electronic Components | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.75% cash due 7/24/2026 | 4.90 | % | 1,794 | 1,513 | 1,685 | (6) | |||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.50% cash due 9/6/2025 | 3.65 | % | 18,082 | 15,087 | 16,884 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+6.75% cash due 9/6/2026 | 6.90 | % | 9,000 | 9,000 | 7,983 | (6) | |||||||||||||||||||||||
25,600 | 26,552 | ||||||||||||||||||||||||||||
Maravai Intermediate Holdings, LLC | Biotechnology | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.25% cash due 8/1/2025 | 5.25 | % | 11,760 | 11,642 | 11,789 | (6)(20) | |||||||||||||||||||||||
11,642 | 11,789 | ||||||||||||||||||||||||||||
Mauser Packaging Solutions Holding Company | Metal & Glass Containers | ||||||||||||||||||||||||||||
Fixed Rate Bond, 8.50% cash due 4/15/2024 | 11,378 | 11,273 | 11,833 | ||||||||||||||||||||||||||
11,273 | 11,833 | ||||||||||||||||||||||||||||
Mayfield Agency Borrower Inc. | Property & Casualty Insurance | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 2/28/2025 | 4.65 | % | 28,823 | 28,045 | 26,679 | (6) | |||||||||||||||||||||||
28,045 | 26,679 | ||||||||||||||||||||||||||||
McAfee, LLC | Systems Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.50% cash due 9/29/2025 | 9.50 | % | 7,000 | 7,028 | 7,074 | (6) | |||||||||||||||||||||||
7,028 | 7,074 | ||||||||||||||||||||||||||||
MHE Intermediate Holdings, LLC | Diversified Support Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024 | 6.00 | % | 2,910 | 2,888 | 2,832 | (6)(20) | |||||||||||||||||||||||
2,888 | 2,832 | ||||||||||||||||||||||||||||
Mindbody, Inc. | Internet Services & Infrastructure | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/2025 | 8.00 | % | 29,097 | 28,675 | 26,828 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025 | — | (44) | (241) | (6)(19)(20) | |||||||||||||||||||||||||
28,631 | 26,587 | ||||||||||||||||||||||||||||
Ministry Brands, LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022 | 6.00 | % | 575 | 566 | 566 | (6)(19)(20) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023 | 10.25 | % | 9,000 | 8,934 | 8,923 | (6)(20) | |||||||||||||||||||||||
9,500 | 9,489 | ||||||||||||||||||||||||||||
MRI Software LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026 | 6.50 | % | 14,369 | 14,242 | 14,022 | (6)(20) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 | — | (59) | (144) | (6)(19)(20) | |||||||||||||||||||||||||
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026 | — | (13) | (31) | (6)(19)(20) | |||||||||||||||||||||||||
14,170 | 13,847 |
24
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
NeuAG, LLC | Fertilizers & Agricultural Chemicals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024 | 7.00 | % | $ | 35,306 | $ | 33,918 | $ | 33,894 | (6)(20) | ||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024 | — | (175) | (175) | (6)(19)(20) | |||||||||||||||||||||||||
33,743 | 33,719 | ||||||||||||||||||||||||||||
NuStar Logistics, L.P. | Oil & Gas Refining & Marketing | ||||||||||||||||||||||||||||
Unsecured Delayed Draw Term Loan, 12.00% cash due 4/19/2023 | — | — | — | (19)(20) | |||||||||||||||||||||||||
— | — | ||||||||||||||||||||||||||||
Olaplex, Inc. | Personal Products | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026 | 7.50 | % | 35,056 | 34,441 | 35,056 | (6)(20) | |||||||||||||||||||||||
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025 | 7.50 | % | 1,917 | 1,852 | 1,917 | (6)(19)(20) | |||||||||||||||||||||||
36,293 | 36,973 | ||||||||||||||||||||||||||||
OmniSYS Acquisition Corporation | Diversified Support Services | ||||||||||||||||||||||||||||
100,000 Common Units in OSYS Holdings, LLC | 1,000 | 607 | (20) | ||||||||||||||||||||||||||
1,000 | 607 | ||||||||||||||||||||||||||||
Onvoy, LLC | Integrated Telecommunication Services | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+10.50% cash due 2/10/2025 | 11.50 | % | 16,750 | 16,750 | 15,142 | (6)(20) | |||||||||||||||||||||||
19,666.67 Class A Units in GTCR Onvoy Holdings, LLC | 1,967 | 268 | (20) | ||||||||||||||||||||||||||
13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC | — | — | (20) | ||||||||||||||||||||||||||
18,717 | 15,410 | ||||||||||||||||||||||||||||
OZLM Funding III, Ltd. | Multi-Sector Holdings | ||||||||||||||||||||||||||||
Class DR Notes, LIBOR+7.77% cash due 1/22/2029 | 8.03 | % | 2,312 | 1,657 | 2,119 | (6)(11) | |||||||||||||||||||||||
1,657 | 2,119 | ||||||||||||||||||||||||||||
PaySimple, Inc. | Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025 | 5.65 | % | 49,535 | 48,711 | 47,801 | (6)(20) | |||||||||||||||||||||||
48,711 | 47,801 | ||||||||||||||||||||||||||||
Pingora MSR Opportunity Fund I-A, LP | Thrifts & Mortgage Finance | ||||||||||||||||||||||||||||
1.86% limited partnership interest | 938 | 353 | (11)(16)(19) | ||||||||||||||||||||||||||
938 | 353 | ||||||||||||||||||||||||||||
PLATO Learning Inc. | Education Services | ||||||||||||||||||||||||||||
Unsecured Senior PIK Note, 8.50% PIK due 12/9/2021 | 3,099 | 2,434 | — | (15)(20) | |||||||||||||||||||||||||
Unsecured Junior PIK Note, 10.00% PIK due 12/9/2021 | 15,010 | 10,227 | — | (15)(20) | |||||||||||||||||||||||||
Unsecured Revolver, 5.00% cash due 12/9/2021 | 2,938 | 2,631 | 588 | (20)(21) | |||||||||||||||||||||||||
126,127.80 Class A Common Units of Edmentum | 126 | — | (20) | ||||||||||||||||||||||||||
15,418 | 588 | ||||||||||||||||||||||||||||
ProFrac Services, LLC | Industrial Machinery | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+7.50% cash due 9/15/2023 | 8.75 | % | 15,170 | 15,081 | 11,643 | (6)(20) | |||||||||||||||||||||||
15,081 | 11,643 | ||||||||||||||||||||||||||||
Project Boost Purchaser, LLC | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027 | 8.15 | % | 3,750 | 3,750 | 3,375 | (6)(20) | |||||||||||||||||||||||
3,750 | 3,375 |
25
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Pug LLC | Internet & Direct Marketing Retail | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.00% cash due 2/12/2027 | 8.75 | % | $ | 15,740 | $ | 14,802 | $ | 15,307 | (6) | ||||||||||||||||||||
14,802 | 15,307 | ||||||||||||||||||||||||||||
QuorumLabs, Inc. | Application Software | ||||||||||||||||||||||||||||
64,887,669 Junior-2 Preferred Stock | 375 | — | (20) | ||||||||||||||||||||||||||
375 | — | ||||||||||||||||||||||||||||
Refac Optical Group | Specialty Stores | ||||||||||||||||||||||||||||
1,550.9435 Shares of Common Stock in Refac Holdings, Inc. | 1 | — | (20) | ||||||||||||||||||||||||||
550.9435 Series A-2 Preferred Stock in Refac Holdings, Inc., 10% | 305 | — | (20) | ||||||||||||||||||||||||||
1,000 Series A-1 Preferred Stock in Refac Holdings, Inc., 10% | 999 | — | (20) | ||||||||||||||||||||||||||
1,305 | — | ||||||||||||||||||||||||||||
Salient CRGT, Inc. | Aerospace & Defense | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022 | 7.50 | % | 2,955 | 2,938 | 2,748 | (6)(20) | |||||||||||||||||||||||
2,938 | 2,748 | ||||||||||||||||||||||||||||
Scilex Pharmaceuticals Inc. | Pharmaceuticals | ||||||||||||||||||||||||||||
Fixed Rate Zero Coupon Bond due 8/15/2026 | 15,585 | 12,069 | 12,468 | (20) | |||||||||||||||||||||||||
12,069 | 12,468 | ||||||||||||||||||||||||||||
ShareThis, Inc. | Application Software | ||||||||||||||||||||||||||||
345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024 | 367 | — | (20) | ||||||||||||||||||||||||||
367 | — | ||||||||||||||||||||||||||||
Sorrento Therapeutics, Inc. | Biotechnology | ||||||||||||||||||||||||||||
125,000 Common Stock Warrants (exercise price $3.94) expiration date 11/3/2029 | — | 1,123 | (11)(20) | ||||||||||||||||||||||||||
— | 1,123 | ||||||||||||||||||||||||||||
Supermoose Borrower, LLC | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025 | 3.90 | % | 10,196 | 8,925 | 9,193 | (6) | |||||||||||||||||||||||
8,925 | 9,193 | ||||||||||||||||||||||||||||
Surgery Center Holdings, Inc. | Health Care Facilities | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+3.25% cash due 9/3/2024 | 4.25 | % | 3,850 | 3,133 | 3,640 | (6)(11) | |||||||||||||||||||||||
3,133 | 3,640 | ||||||||||||||||||||||||||||
Swordfish Merger Sub LLC | Auto Parts & Equipment | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+6.75% cash due 2/2/2026 | 7.75 | % | 12,500 | 12,458 | 10,563 | (6)(20) | |||||||||||||||||||||||
12,458 | 10,563 | ||||||||||||||||||||||||||||
Tacala, LLC | Restaurants | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.50% cash due 2/4/2028 | 7.65 | % | 7,276 | 7,167 | 6,903 | (6) | |||||||||||||||||||||||
7,167 | 6,903 | ||||||||||||||||||||||||||||
TerSera Therapeutics LLC | Pharmaceuticals | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+9.50% cash due 3/30/2024 | 10.50 | % | 29,663 | 29,236 | 29,371 | (6)(20) | |||||||||||||||||||||||
668,879 Common Units of TerSera Holdings LLC | 2,192 | 3,487 | (20) | ||||||||||||||||||||||||||
31,428 | 32,858 | ||||||||||||||||||||||||||||
TIBCO Software Inc. | Application Software | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.25% cash due 3/3/2028 | 7.40 | % | 15,000 | 14,925 | 14,766 | (6) | |||||||||||||||||||||||
14,925 | 14,766 | ||||||||||||||||||||||||||||
TigerConnect, Inc. | Application Software | ||||||||||||||||||||||||||||
299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024 | 60 | 525 | (20) | ||||||||||||||||||||||||||
60 | 525 | ||||||||||||||||||||||||||||
Transact Holdings Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.75% cash due 4/30/2026 | 4.90 | % | 6,930 | 6,826 | 6,553 | (6)(20) | |||||||||||||||||||||||
6,826 | 6,553 |
26
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Truck Hero, Inc. | Auto Parts & Equipment | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.25% cash due 4/21/2025 | 9.25 | % | $ | 21,500 | $ | 21,191 | $ | 20,819 | (6)(20) | ||||||||||||||||||||
21,191 | 20,819 | ||||||||||||||||||||||||||||
U.S. Renal Care, Inc. | Health Care Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+5.00% cash due 6/26/2026 | 5.15 | % | 1,122 | 934 | 1,096 | (6) | |||||||||||||||||||||||
934 | 1,096 | ||||||||||||||||||||||||||||
Uniti Group Inc. | Specialized REITs | ||||||||||||||||||||||||||||
21,072 Common Units | — | 133 | 222 | (11)(12) | |||||||||||||||||||||||||
133 | 222 | ||||||||||||||||||||||||||||
Verscend Holding Corp. | Health Care Technology | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 8/27/2025 | 4.65 | % | 14,525 | 14,479 | 14,429 | (6) | |||||||||||||||||||||||
Fixed Rate Bond, 9.75% cash due 8/15/2026 | 7,000 | 7,020 | 7,629 | ||||||||||||||||||||||||||
21,499 | 22,058 | ||||||||||||||||||||||||||||
Vertex Aerospace Services Corp. | Aerospace & Defense | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.50% cash due 6/29/2025 | 4.65 | % | 10,168 | 10,133 | 10,073 | (6) | |||||||||||||||||||||||
10,133 | 10,073 | ||||||||||||||||||||||||||||
Vitalyst Holdings, Inc. | IT Consulting & Other Services | ||||||||||||||||||||||||||||
675 Series A Preferred Stock Units | 675 | 440 | (20) | ||||||||||||||||||||||||||
7,500 Class A Common Stock Units | 75 | — | (20) | ||||||||||||||||||||||||||
750 | 440 | ||||||||||||||||||||||||||||
William Morris Endeavor Entertainment, LLC | Movies & Entertainment | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+8.50% cash due 5/18/2025 | 9.50 | % | 33,298 | 31,594 | 33,298 | (6)(20) | |||||||||||||||||||||||
31,594 | 33,298 | ||||||||||||||||||||||||||||
Windstream Services II, LLC | Integrated Telecommunication Services | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027 | 7.25 | % | 25,935 | 24,900 | 25,168 | (6) | |||||||||||||||||||||||
6,129 Shares of Common Stock in Windstream Holdings II, LLC | 53 | 69 | (20) | ||||||||||||||||||||||||||
37,215 Warrants in Windstream Holdings II, LLC | 913 | 444 | (20) | ||||||||||||||||||||||||||
25,866 | 25,681 | ||||||||||||||||||||||||||||
WP CPP Holdings, LLC | Aerospace & Defense | ||||||||||||||||||||||||||||
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 | 8.75 | % | 15,000 | 14,893 | 11,700 | (6)(20) | |||||||||||||||||||||||
14,893 | 11,700 | ||||||||||||||||||||||||||||
WPEngine, Inc. | Application Software | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+6.50% cash due 3/27/2026 | 7.50 | % | 14,188 | 13,863 | 13,949 | (6)(20) | |||||||||||||||||||||||
First Lien Delayed Draw Term Loan, LIBOR+6.50% cash due 3/27/2026 | — | (602) | (443) | (6)(19)(20) | |||||||||||||||||||||||||
13,261 | 13,506 | ||||||||||||||||||||||||||||
xMatters, Inc. | Application Software | ||||||||||||||||||||||||||||
600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025 | 709 | 336 | (20) | ||||||||||||||||||||||||||
709 | 336 | ||||||||||||||||||||||||||||
Zep Inc. | Specialty Chemicals | ||||||||||||||||||||||||||||
First Lien Term Loan, LIBOR+4.00% cash due 8/12/2024 | 5.00 | % | 1,955 | 1,895 | 1,845 | (6) | |||||||||||||||||||||||
Second Lien Term Loan, LIBOR+8.25% cash due 8/11/2025 | 9.25 | % | 30,000 | 29,908 | 24,180 | (6)(20) | |||||||||||||||||||||||
31,803 | 26,025 | ||||||||||||||||||||||||||||
Zephyr Bidco Limited | Specialized Finance | ||||||||||||||||||||||||||||
Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/2026 | 7.55 | % | £ | 18,000 | 23,705 | 21,176 | (6)(11) | ||||||||||||||||||||||
23,705 | 21,176 | ||||||||||||||||||||||||||||
Total Non-Control/Non-Affiliate Investments (149.3% of net assets) | $ | 1,415,669 | $ | 1,365,957 |
27
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
Portfolio Company/Type of Investment (1)(2)(3)(4)(5) | Cash Interest Rate (6) | Industry | Principal (7) | Cost | Fair Value | Notes | |||||||||||||||||||||||
Total Portfolio Investments (172.0% of net assets) | $ | 1,669,170 | $ | 1,573,851 | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||
JP Morgan Prime Money Market Fund, Institutional Shares | $ | 35,248 | $ | 35,248 | |||||||||||||||||||||||||
Other cash accounts | 3,848 | 3,848 | |||||||||||||||||||||||||||
Total Cash and Cash Equivalents (4.3% of net assets) | $ | 39,096 | $ | 39,096 | |||||||||||||||||||||||||
Total Portfolio Investments and Cash and Cash Equivalents (176.3% of net assets) | $ | 1,708,266 | $ | 1,612,947 |
Derivative Instrument | Notional Amount to be Purchased | Notional Amount to be Sold | Maturity Date | Counterparty | Cumulative Unrealized Appreciation /(Depreciation) | |||||||||||||||||||||||||||
Foreign currency forward contract | $ | 35,577 | £ | 27,494 | 11/12/2020 | JPMorgan Chase Bank, N.A. | $ | 25 | ||||||||||||||||||||||||
Foreign currency forward contract | $ | 30,260 | € | 25,614 | 11/12/2020 | JPMorgan Chase Bank, N.A. | 198 | |||||||||||||||||||||||||
$ | 223 |
28
Oaktree Specialty Lending Corporation
Consolidated Schedule of Investments
September 30, 2020
(dollar amounts in thousands)
(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.
(2)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.
(3)Equity ownership may be held in shares or units of companies related to the portfolio companies.
(4)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.
(5)Each of the Company's investments is pledged as collateral under the Syndicated Facility (as defined in Note 6 to the accompanying notes to the Consolidated Financial Statements).
(6)The interest rate on the principal balance outstanding for all floating rate loans is indexed to 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, 2020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.22%, the 180-day LIBOR at 0.27%, the 360-day LIBOR at 0.37%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.05%, the 180-day UK LIBOR at 0.22%, the 30-day EURIBOR at (0.57)% and the 180-day EURIBOR at (0.36)%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(7)Principal includes accumulated PIK interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.
(8)Control Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(9)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the Company's annual report on Form 10-K for the year ended September 30, 2020 for transactions during the year ended September 30, 2020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.
(10)First Star Speir Aviation 1 Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding company to be an investment company under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.
(11)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2020, qualifying assets represented 75.4% of the Company's total assets and non-qualifying assets represented 24.6% of the Company's total assets.
(12)Income producing through payment of dividends or distributions.
(13)PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment. As a result, the principal amount of the investment does not increase over time for accumulated PIK interest. As of September 30, 2020, the accumulated PIK interest balance for each of the A notes and the B notes was $4.3 million. The fair value of this investment is inclusive of PIK.
(14)See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.
(15)This investment was on PIK non-accrual status as of September 30, 2020. PIK non-accrual status is inclusive of other non-cash income, where applicable.
(16)This investment was valued using net asset value as a practical expedient for fair value. Consistent with ASC 820, these investments are excluded from the hierarchical levels.
(17)Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.
(18)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(19)Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
(20)As of September 30, 2020, these investments were categorized as Level 3 within the fair value hierarchy established by ASC 820.
(21)This investment was on cash non-accrual status as of September 30, 2020. Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.
See notes to Consolidated Financial Statements.
29
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
Note 1. Organization
Oaktree Specialty Lending Corporation (together with its consolidated subsidiaries, the "Company") is a specialty finance company that looks to provide customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company was formed in late 2007 and operates as a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment 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's investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity and certain equity co-investments. The Company may also seek to generate capital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions.
The Company is externally managed by Oaktree Fund Advisors, LLC ("Oaktree"), a subsidiary of Oaktree Capital Group, LLC (“OCG”), pursuant to an investment advisory agreement between the Company and Oaktree (as amended and restated, the "Investment Advisory Agreement"). Oaktree is an affiliate of Oaktree Capital Management, L.P. ("OCM"), the Company's external investment adviser from October 17, 2017 through May 3, 2020 and also a subsidiary of OCG. Oaktree Fund Administration, LLC ("Oaktree Administrator"), a subsidiary of OCM, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and Oaktree Administrator (the "Administration Agreement"). See Note 11. In 2019, Brookfield Asset Management Inc. ("Brookfield") acquired a majority economic interest in OCG. OCG operates as an independent business within Brookfield, with its own product offerings and investment, marketing and support teams.
On March 19, 2021, the Company acquired Oaktree Strategic Income Corporation (“OCSI”), pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of October 28, 2020, by and among OCSI, the Company, Lion Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”), and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the Merger Agreement, Merger Sub was first merged with and into OCSI, with OCSI as the surviving corporation (the “Merger”), and, immediately following the Merger, OCSI was then merged with and into the Company, with the Company as the surviving company (together with the Merger, the “Mergers”). In accordance with the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of OCSI’s common stock was converted into the right to receive 1.3371 shares of the Company’s common stock (with OCSI’s stockholders receiving cash in lieu of fractional shares of the Company’s common stock). As a result of the Mergers, the Company issued an aggregate of 39,400,011 shares of its common stock to former OCSI stockholders. See Note 15. "Merger with OCSI".
Note 2. Significant Accounting Policies
Basis of Presentation:
The Consolidated Financial Statements of the Company have been prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the Consolidated Financial Statements have been made. All intercompany balances and transactions have been eliminated. The Company is an investment company following the accounting and reporting guidance in ASC Topic 946, Financial Services - Investment Companies ("ASC 946").
Use of Estimates:
The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Changes in the economic and political environments, financial markets and any other parameters used in determining these estimates could cause actual results to differ and such differences could be material. Significant estimates include the valuation of investments and revenue recognition.
Consolidation:
The accompanying Consolidated Financial Statements include the accounts of Oaktree Specialty Lending Corporation and its consolidated subsidiaries. Each consolidated subsidiary is wholly-owned and, as such, consolidated into the Consolidated Financial Statements. Certain subsidiaries that hold investments are treated as pass through entities for tax purposes. The assets of certain of the consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Specialty Lending Corporation or any of its other subsidiaries.
30
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
As an investment company, portfolio investments held by the Company are not consolidated into the Consolidated Financial Statements but rather are included on the Statements of Assets and Liabilities as investments at fair value.
Fair Value Measurements:
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 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, Oaktree obtains and analyzes readily available market quotations provided by pricing vendors and brokers for all of the Company's investments for which quotations are available. In determining the fair value of a particular investment, pricing vendors and brokers use observable market information, including both binding and non-binding indicative quotations.
The Company 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 pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In addition to 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 valuation process. Generally, the Company does not adjust any of the prices received from these sources.
If the quotations obtained from pricing vendors or brokers are determined to not be reliable or are not readily available, the Company values such investments using any of 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 ("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 Investment Company Act. To estimate the EV of a portfolio company, Oaktree 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. Oaktree 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 prices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its
31
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company. The Company may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and the Company considers the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, the Company depends on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.
The Company estimates the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.
The Company's Board of Directors undertakes a multi-step valuation process each quarter in connection with determining the fair value of the Company's investments:
•The quarterly valuation process begins with each portfolio company or investment being initially valued by Oaktree's valuation team in conjunction with Oaktree's portfolio management team and investment professionals responsible for each portfolio investment;
•Preliminary valuations are then reviewed and discussed with management of 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 Oaktree and the Audit Committee of the Board of Directors;
•Oaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;
•The Audit Committee reviews the preliminary valuations with Oaktree, and Oaktree responds and supplements the preliminary valuations to reflect any discussions between Oaktree 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 June 30, 2021 and September 30, 2020 was determined in good faith by the Board of Directors. The Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of the Company's portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that assistance. However, the Board of Directors is responsible for the ultimate valuation of the portfolio investments at fair value as determined in good faith pursuant to the Company's valuation policy and a consistently applied valuation process.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.
With the exception of the line items entitled "deferred financing costs," "deferred offering costs," "other assets," "deferred tax asset, net," "credit facilities payable" and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities. The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "due
32
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
from broker," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.
Foreign Currency Translation:
The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.
Derivative Instruments:
Foreign Currency Forward Contracts
The Company uses foreign currency forward contracts to reduce the Company's exposure to fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market at the applicable forward rate. Unrealized appreciation (depreciation) on foreign currency forward contracts are recorded within derivative assets or derivative liabilities on the Consolidated Statements of Assets and Liabilities by counterparty on a net basis, not taking into account collateral posted which is recorded separately, if applicable. Purchases and settlements of foreign currency forward contracts having the same settlement date and counterparty are generally settled net and any realized gains or losses are recognized on the settlement date. The Company does not utilize hedge accounting with respect to foreign currency forward contracts and as such, the Company recognizes its foreign currency forward contracts at fair value with changes included in the net unrealized appreciation (depreciation) on the Consolidated Statements of Operations.
Interest Rate Swaps
The Company uses an interest rate swap to hedge some of the Company's fixed rate debt. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship, and therefore the periodic payments are recognized as components of interest expense in the Consolidated Statements of Operations. Depending on the nature of the balance at period end, the fair value of the interest rate swap is either included as a derivative asset or derivative liability on the Company's Consolidated Statements of Assets and Liabilities. The change in fair value of the interest rate swap is offset by the change in fair value of the fixed rate debt. Any amounts paid to the counterparty to cover collateral obligations under the terms of the interest rate swap agreement are included in due from broker on the Company's Consolidated Statements of Assets and Liabilities.
Secured Borrowings:
Securities sold and simultaneously repurchased at a premium are reported as financing transactions in accordance with FASB ASC Topic 860, Transfers and Servicing ("ASC 860"). Amounts payable to the counterparty are due on the repurchase settlement date and, excluding accrued interest, such amounts are presented in the accompanying Statements of Assets and Liabilities as secured borrowings. Premiums payable are separately reported as accrued interest.
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.
33
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash and the portfolio company, in management’s judgment, is likely to continue timely payment of its remaining obligations.
In connection with its investment in a portfolio company, the Company sometimes receives nominal cost equity that is valued as part of the negotiation process with the portfolio company. When the Company receives nominal cost equity, the Company allocates its cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.
For the Company's secured borrowings, the interest earned on the entire loan balance is recorded within interest income and the interest earned by the counterparty is recorded within interest expense in the Consolidated Statements of Operations.
PIK Interest Income
The Company's investments in debt securities may contain PIK interest provisions. PIK interest, which generally represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company generally ceases accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect the portfolio company to be able to pay all principal and interest due. The Company's decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; the Company's assessment of the portfolio company's business development success; information obtained by the Company in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. 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 including for purposes of computing the capital gains incentive fee payable by the Company to Oaktree. To maintain its status as a RIC, certain income from PIK interest may be required to be distributed to the Company’s stockholders, even though the Company has not yet collected the cash and may never do so.
Fee Income
Oaktree or its affiliates may provide financial advisory services to portfolio companies and, in return, the Company may receive fees for capital structuring services. These fees are generally nonrecurring and are recognized by the Company upon the investment closing date. The Company 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.
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-dividend date for public securities and the record date for private equity investments. Distributions received from private equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from private equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a 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 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
34
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
cash equivalents are included on the Company's Consolidated Schedule of Investments and cash equivalents are classified as Level 1 assets.
As of June 30, 2021, included in restricted cash was $2.8 million that was held at Wells Fargo Bank, N.A. in connection with the Company's Citibank Facility (as defined in Note 6. Borrowings). Pursuant to the terms of the Citibank Facility, the Company was restricted in terms of access to $2.8 million until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the credit agreement.
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 from Unsettled Transactions:
Receivables/payables from unsettled transactions consist 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 when incurred. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability when incurred. Deferred financing costs are amortized using the effective interest method over the term of the respective debt arrangement. This amortization expense is included in interest expense in the Company's Consolidated Statements of Operations. Upon early termination or modification of a credit facility, all or a portion of unamortized fees related to such facility may be accelerated into interest expense. For extinguishments of the Company’s unsecured notes payable, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.
Deferred Offering Costs:
Legal fees and other costs incurred in connection with the Company’s shelf registration statement are capitalized as deferred offering costs in the Consolidated Statements of Assets and Liabilities. To the extent any such costs relate to equity offerings, these costs are charged as a reduction of capital upon utilization. To the extent any such costs relate to debt offerings, these costs are treated as deferred financing costs and are amortized over the term of the respective debt arrangement. Any deferred offering costs that remain at the expiration of the shelf registration statement or when it becomes probable that an offering will not be completed are expensed.
Income Taxes:
The Company has elected to be subject to tax as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each taxable year. As a RIC, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed currently to stockholders as a dividend. Depending on the level of taxable income earned during a taxable year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next taxable year. The Company would then incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. The Company anticipates timely distribution of its taxable income within the tax rules under Subchapter M of the Code. The Company did not incur a U.S. federal excise tax for calendar years 2019 and 2020 and does not expect to incur a U.S. federal excise tax for calendar year 2021.
The Company holds certain portfolio investments through taxable subsidiaries. The purpose of the Company's taxable subsidiaries is to permit the Company to hold equity investments in portfolio companies which are "pass through" entities for U.S. federal income tax purposes in order to comply with the RIC tax requirements. The taxable subsidiaries are consolidated
35
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
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 2018, 2019 and 2020. The Company identifies its major tax jurisdictions as U.S. Federal and California, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Note 3. Portfolio Investments
As of June 30, 2021, 179.6% of net assets at fair value, or $2.3 billion, was invested in 135 portfolio companies, including (i) $132.9 million in subordinated notes and limited liability company ("LLC") equity interests of Senior Loan Fund JV I, LLC ("SLF JV I"), a joint venture through which the Company and Trinity Universal Insurance Company, a subsidiary of Kemper Corporation ("Kemper"), co-invest in senior secured loans of middle-market companies and other corporate debt securities and (ii) $55.4 million in subordinated notes and LLC equity interests of OCSI Glick JV LLC ("Glick JV" and, together with SLF JV I, the "JVs"), a joint venture through which the Company and GF Equity Funding 2014 LLC ("GF Equity Funding") co-invest primarily in senior secured loans of middle-market companies. As of June 30, 2021, 6.7% of net assets at fair value, or $87.5 million, was invested in cash and cash equivalents (including $2.8 million of restricted cash). In comparison, as of September 30, 2020, 172.0% of net assets at fair value, or $1.6 billion, was invested in 113 portfolio investments, including $117.4 million in subordinated notes and LLC equity interests of SLF JV I, and 4.3% of net assets at fair value, or $39.1 million, was invested in cash and cash equivalents. As of June 30, 2021, 86.7% of the Company's portfolio at fair value consisted of senior secured debt investments and 7.9% consisted of subordinated debt investments, including the debt investments in the JVs. As of September 30, 2020, 84.1% of the Company's portfolio at fair value consisted of senior secured debt investments and 10.3% consisted of subordinated debt investments, including the debt investment in SLF JV I.
The Company also held equity investments in certain of its portfolio companies consisting of common stock, preferred stock, warrants, limited partnership interests or LLC equity interests. These instruments generally do not produce a current return but are held for potential investment appreciation and capital gain.
During the three and nine months ended June 30, 2021, the Company recorded net realized gains of $8.6 million and $22.7 million, respectively. During the three and nine months ended June 30, 2020, the Company recorded net realized gains (losses) of $2.8 million and $(20.4) million, respectively. During the three and nine months ended June 30, 2021, the Company recorded net unrealized appreciation of $3.9 million and $116.6 million, respectively. During the three and nine months ended June 30, 2020, the Company recorded net unrealized appreciation (depreciation) of $100.6 million and $(60.1) million, respectively.
36
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The composition of the Company's investments as of June 30, 2021 and September 30, 2020 at cost and fair value was as follows:
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||
Investments in debt securities | $ | 2,013,006 | $ | 2,059,352 | $ | 1,422,487 | $ | 1,388,605 | ||||||||||||||||||
Investments in equity securities | 110,911 | 91,607 | 101,111 | 67,806 | ||||||||||||||||||||||
Debt investments in the JVs | 146,985 | 151,647 | 96,250 | 96,250 | ||||||||||||||||||||||
Equity investments in the JVs | 49,322 | 36,695 | 49,322 | 21,190 | ||||||||||||||||||||||
Total | $ | 2,320,224 | $ | 2,339,301 | $ | 1,669,170 | $ | 1,573,851 |
The following table presents the composition of the Company's debt investments as of June 30, 2021 and September 30, 2020 at fixed rates and floating rates:
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||
Fair Value | % of Debt Portfolio | Fair Value | % of Debt Portfolio | |||||||||||||||||||||||
Floating rate debt securities, including the debt investments in the JVs | $ | 2,021,011 | 91.41 | % | $ | 1,311,509 | 88.33 | % | ||||||||||||||||||
Fixed rate debt securities | 189,988 | 8.59 | 173,346 | 11.67 | ||||||||||||||||||||||
Total | $ | 2,210,999 | 100.00 | % | $ | 1,484,855 | 100.00 | % |
The following table presents the financial instruments carried at fair value as of June 30, 2021 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
Level 1 | Level 2 | Level 3 | Measured at Net Asset Value (a) | Total | ||||||||||||||||||||||||||||
Investments in debt securities (senior secured) | $ | — | $ | 365,467 | $ | 1,661,587 | $ | — | $ | 2,027,054 | ||||||||||||||||||||||
Investments in debt securities (subordinated, including the debt investments in the JVs) | — | 22,505 | 161,440 | — | 183,945 | |||||||||||||||||||||||||||
Investments in equity securities (preferred) | — | — | 52,460 | — | 52,460 | |||||||||||||||||||||||||||
Investments in equity securities (common and warrants, including LLC equity interests of the JVs) | 485 | — | 38,548 | 36,809 | 75,842 | |||||||||||||||||||||||||||
Total investments at fair value | 485 | 387,972 | 1,914,035 | 36,809 | 2,339,301 | |||||||||||||||||||||||||||
Cash equivalents | 72,407 | — | — | — | 72,407 | |||||||||||||||||||||||||||
Derivative assets | — | 2,449 | — | — | 2,449 | |||||||||||||||||||||||||||
Total assets at fair value | $ | 72,892 | $ | 390,421 | $ | 1,914,035 | $ | 36,809 | $ | 2,414,157 | ||||||||||||||||||||||
Derivative liability | $ | — | $ | 267 | $ | — | $ | — | $ | 267 | ||||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 267 | $ | — | $ | — | $ | 267 |
__________
(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.
37
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The following table presents the financial instruments carried at fair value as of September 30, 2020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:
Level 1 | Level 2 | Level 3 | Measured at Net Asset Value (a) | Total | ||||||||||||||||||||||||||||
Investments in debt securities (senior secured) | $ | — | $ | 418,806 | $ | 904,237 | $ | — | $ | 1,323,043 | ||||||||||||||||||||||
Investments in debt securities (subordinated, including the debt investment in SLF JV I) | — | 35,660 | 126,152 | — | 161,812 | |||||||||||||||||||||||||||
Investments in equity securities (preferred) | — | — | 29,959 | — | 29,959 | |||||||||||||||||||||||||||
Investments in equity securities (common and warrants, including LLC equity interests of SLF JV I) | 222 | — | 35,080 | 23,735 | 59,037 | |||||||||||||||||||||||||||
Total investments at fair value | 222 | 454,466 | 1,095,428 | 23,735 | 1,573,851 | |||||||||||||||||||||||||||
Cash equivalents | 35,248 | — | — | — | 35,248 | |||||||||||||||||||||||||||
Derivative assets | — | 223 | — | — | 223 | |||||||||||||||||||||||||||
Total assets at fair value | $ | 35,470 | $ | 454,689 | $ | 1,095,428 | $ | 23,735 | $ | 1,609,322 |
__________
(a)In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.
When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the fact that the unobservable factors are significant to the overall fair value measurement. However, Level 3 financial instruments typically have both unobservable or Level 3 components and observable components (i.e. components that are actively quoted and can be validated by external sources). Accordingly, the appreciation (depreciation) in the tables below includes changes in fair value due in part to observable factors that are part of the valuation methodology. Transfers between levels are recognized at the beginning of the reporting period.
The following table provides a roll-forward in the changes in fair value from March 31, 2021 to June 30, 2021 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments | ||||||||||||||||||||||||||||||||
Senior Secured Debt | Subordinated Debt (including debt investments in the JVs) | Preferred Equity | Common Equity and Warrants | Total | ||||||||||||||||||||||||||||
Fair value as of March 31, 2021 | $ | 1,590,290 | $ | 157,954 | $ | 51,796 | $ | 50,339 | $ | 1,850,379 | ||||||||||||||||||||||
Purchases | 153,259 | 5,041 | — | — | 158,300 | |||||||||||||||||||||||||||
Sales and repayments | (91,799) | (2,977) | — | (22,422) | (117,198) | |||||||||||||||||||||||||||
Transfers in (a) | — | — | — | 6,322 | 6,322 | |||||||||||||||||||||||||||
Transfers out (a) | (6,322) | — | — | — | (6,322) | |||||||||||||||||||||||||||
Capitalized PIK interest income | 4,243 | — | — | — | 4,243 | |||||||||||||||||||||||||||
Accretion of OID | 7,383 | 297 | — | — | 7,680 | |||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) | 4,585 | 781 | 664 | (2,784) | 3,246 | |||||||||||||||||||||||||||
Net realized gains (losses) | (52) | 344 | — | 7,093 | 7,385 | |||||||||||||||||||||||||||
Fair value as of June 30, 2021 | $ | 1,661,587 | $ | 161,440 | $ | 52,460 | $ | 38,548 | $ | 1,914,035 | ||||||||||||||||||||||
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2021 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2021 | $ | 11,295 | $ | 1,085 | $ | 664 | $ | 656 | $ | 13,700 |
(a) There was one transfer from senior secured debt to common equity and warrants during the three months ended June 30, 2021 as a result of an investment restructuring, in which $6.3 million of senior secured debt was exchanged for $6.3 million of common equity.
38
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The following table provides a roll-forward in the changes in fair value from March 31, 2020 to June 30, 2020 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments | ||||||||||||||||||||||||||||||||
Senior Secured Debt | Subordinated Debt (including debt investment in SLF JV I) | Preferred Equity | Common Equity and Warrants | Total | ||||||||||||||||||||||||||||
Fair value as of March 31, 2020 | $ | 720,110 | $ | 105,167 | $ | 31,367 | $ | 45,150 | $ | 901,794 | ||||||||||||||||||||||
Purchases | 95,154 | 48,663 | — | 80 | 143,897 | |||||||||||||||||||||||||||
Sales and repayments | (23,010) | (93) | — | (2,889) | (25,992) | |||||||||||||||||||||||||||
Capitalized PIK interest income | 1,316 | — | — | — | 1,316 | |||||||||||||||||||||||||||
Accretion of OID | 1,524 | 473 | — | — | 1,997 | |||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) | 24,035 | 12,820 | (1,429) | (1,805) | 33,621 | |||||||||||||||||||||||||||
Net realized gains (losses) | — | — | — | 2,475 | 2,475 | |||||||||||||||||||||||||||
Fair value as of June 30, 2020 | $ | 819,129 | $ | 167,030 | $ | 29,938 | $ | 43,011 | $ | 1,059,108 | ||||||||||||||||||||||
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended June 30, 2020 | $ | 24,794 | $ | 12,820 | $ | (1,429) | $ | (127) | $ | 36,058 |
The following table provides a roll-forward in the changes in fair value from September 30, 2020 to June 30, 2021 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments | ||||||||||||||||||||||||||||||||
Senior Secured Debt | Subordinated Debt (including debt investment in the JVs) | Preferred Equity | Common Equity and Warrants | Total | ||||||||||||||||||||||||||||
Fair value as of September 30, 2020 | $ | 904,237 | $ | 126,152 | $ | 29,959 | $ | 35,080 | $ | 1,095,428 | ||||||||||||||||||||||
Purchases (a) | 923,185 | 51,327 | 19,958 | 2,377 | 996,847 | |||||||||||||||||||||||||||
Sales and repayments | (246,671) | (44,191) | (31) | (28,622) | (319,515) | |||||||||||||||||||||||||||
Transfers in (b)(c)(d) | 18,458 | — | — | 6,759 | 25,217 | |||||||||||||||||||||||||||
Transfers out (d) | (6,322) | — | — | — | (6,322) | |||||||||||||||||||||||||||
Capitalized PIK interest income | 10,991 | — | — | — | 10,991 | |||||||||||||||||||||||||||
Accretion of OID | 11,806 | 1,328 | — | — | 13,134 | |||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) | 47,469 | 18,089 | 2,543 | 12,618 | 80,719 | |||||||||||||||||||||||||||
Net realized gains (losses) | (1,566) | 8,735 | 31 | 10,336 | 17,536 | |||||||||||||||||||||||||||
Fair value as of June 30, 2021 | $ | 1,661,587 | $ | 161,440 | $ | 52,460 | $ | 38,548 | $ | 1,914,035 | ||||||||||||||||||||||
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2021 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2021 | $ | 51,977 | $ | 4,770 | $ | 2,543 | $ | 12,429 | $ | 71,719 |
__________
(a) Includes the Level 3 investments acquired in connection with the Mergers during the nine months ended June 30, 2021.
(b) There were transfers into Level 3 from Level 2 for certain investments during the nine months ended June 30, 2021 as a result of a change in the number of market quotes available and/or a change in market liquidity.
(c) There was a transfer into Level 3 from Level 2 as a result of an investment restructuring in which Level 2 senior secured debt was exchanged for Level 3 senior secured debt and common equity.
(d) There was one transfer from senior secured debt to common equity and warrants during the nine months ended June 30, 2021 as a result of an investment restructuring, in which $6.3 million of senior secured debt was exchanged for $6.3 million of common equity.
39
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The following table provides a roll-forward in the changes in fair value from September 30, 2019 to June 30, 2020 for all investments for which the Company determined fair value using unobservable (Level 3) factors:
Investments | ||||||||||||||||||||||||||||||||
Senior Secured Debt | Subordinated Debt (including debt investment in SLF JV I) | Preferred Equity | Common Equity and Warrants | Total | ||||||||||||||||||||||||||||
Fair value as of September 30, 2019 | $ | 653,334 | $ | 110,309 | $ | 40,578 | $ | 41,006 | $ | 845,227 | ||||||||||||||||||||||
Purchases | 334,339 | 49,728 | — | 1,408 | 385,475 | |||||||||||||||||||||||||||
Sales and repayments | (177,958) | (3,956) | (1,388) | (9,463) | (192,765) | |||||||||||||||||||||||||||
Transfers in (a)(b) | 67,939 | 5,113 | — | 18,625 | 91,677 | |||||||||||||||||||||||||||
Transfers out (a)(b) | (33,625) | — | — | — | (33,625) | |||||||||||||||||||||||||||
Capitalized PIK interest income | 4,276 | — | — | — | 4,276 | |||||||||||||||||||||||||||
Accretion of OID | 5,089 | 1,090 | — | — | 6,179 | |||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) | (5,362) | 19,088 | (9,747) | (15,655) | (11,676) | |||||||||||||||||||||||||||
Net realized gains (losses) | (28,903) | (14,342) | 495 | 7,090 | (35,660) | |||||||||||||||||||||||||||
Fair value as of June 30, 2020 | $ | 819,129 | $ | 167,030 | $ | 29,938 | $ | 43,011 | $ | 1,059,108 | ||||||||||||||||||||||
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of June 30, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the nine months ended June 30, 2020 | $ | (33,050) | $ | 7,698 | $ | (9,145) | $ | (13,658) | $ | (48,155) |
(a) There were transfers into/out of Level 3 from/to Level 2 for certain investments during the nine months ended June 30, 2020 as a result of a change in the number of market quotes available and/or a change in market liquidity.
(b) There was one transfer from senior secured debt to common equity and warrants during the nine months ended June 30, 2020 as a result of an investment restructuring, in which $46.5 million of senior secured debt was exchanged for new senior secured debt of $27.9 million and common equity of $18.6 million.
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 June 30, 2021:
Asset | Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average (a) | ||||||||||||||||||||||||||||||||||||
Senior Secured Debt | $ | 1,134,429 | Market Yield | Market Yield | (b) | 6.9% | - | 30.0% | 10.5% | ||||||||||||||||||||||||||||||||
35,330 | Enterprise Value | EBITDA Multiple | (c) | 3.0x | - | 8.0x | 4.1x | ||||||||||||||||||||||||||||||||||
7,500 | Enterprise Value | Asset Multiple | (c) | 0.9x | - | 1.1x | 1.0x | ||||||||||||||||||||||||||||||||||
6,096 | Transactions Precedent | Transaction Price | (d) | N/A | - | N/A | N/A | ||||||||||||||||||||||||||||||||||
478,232 | Broker Quotations | Broker Quoted Price | (e) | N/A | - | N/A | N/A | ||||||||||||||||||||||||||||||||||
Subordinated Debt | 9,793 | Market Yield | Market Yield | (b) | 13.0% | - | 14.0% | 13.5% | |||||||||||||||||||||||||||||||||
Debt Investments in the JVs | 151,647 | Enterprise Value | N/A | (f) | N/A | - | N/A | N/A | |||||||||||||||||||||||||||||||||
Preferred & Common Equity | 5,782 | Enterprise Value | Revenue Multiple | (c) | 0.9x | - | 13.8x | 3.0x | |||||||||||||||||||||||||||||||||
78,422 | Enterprise Value | EBITDA Multiple | (c) | 3.0x | - | 18.0x | 8.7x | ||||||||||||||||||||||||||||||||||
482 | Enterprise Value | Asset Multiple | (c) | 0.9x | - | 1.1x | 1.0x | ||||||||||||||||||||||||||||||||||
6,322 | Transactions Precedent | Transaction Price | (d) | N/A | - | N/A | N/A | ||||||||||||||||||||||||||||||||||
Total | $ | 1,914,035 |
__________
(a)Weighted averages are calculated based on fair value of investments.
(b)Used when market participants would take into account market yield when pricing the investment.
(c)Used when market participants would use such multiples when pricing the investment.
(d)Used when there is an observable transaction or pending event for the investment.
(e)The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The Company evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.
(f)The Company determined the value of its subordinated notes of the JVs based on the total assets less the total liabilities senior to the subordinated notes held at the JVs in an amount not exceeding par under the EV technique.
40
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2020:
Asset | Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average (a) | ||||||||||||||||||||||||||||||||||||
Senior Secured Debt | $ | 542,354 | Market Yield | Market Yield | (b) | 6.6% | - | 30.0% | 12.5% | ||||||||||||||||||||||||||||||||
35,508 | Enterprise Value | EBITDA Multiple | (c) | 0.6x | - | 6.3x | 5.9x | ||||||||||||||||||||||||||||||||||
11,510 | Enterprise Value | Asset Multiple | (c) | 0.9x | - | 1.1x | 1.0x | ||||||||||||||||||||||||||||||||||
314,865 | Broker Quotations | Broker Quoted Price | (e) | N/A | - | N/A | N/A | ||||||||||||||||||||||||||||||||||
Subordinated Debt | 29,314 | Market Yield | Market Yield | (b) | 4.8% | - | 15.0% | 9.3% | |||||||||||||||||||||||||||||||||
588 | Enterprise Value | EBITDA Multiple | (c) | 7.6x | - | 8.6x | 8.1x | ||||||||||||||||||||||||||||||||||
SLF JV I Debt Investment | 96,250 | Enterprise Value | N/A | (f) | N/A | - | N/A | N/A | |||||||||||||||||||||||||||||||||
Preferred & Common Equity | 16,470 | Enterprise Value | Revenue Multiple | (c) | 0.9x | - | 7.0x | 3.1x | |||||||||||||||||||||||||||||||||
45,934 | Enterprise Value | EBITDA Multiple | (c) | 0.6x | - | 15.0x | 7.6x | ||||||||||||||||||||||||||||||||||
1,622 | Enterprise Value | Asset Multiple | (c) | 0.9x | - | 1.1x | 1.0x | ||||||||||||||||||||||||||||||||||
1,013 | Transactions Precedent | Transaction Price | (d) | N/A | - | N/A | N/A | ||||||||||||||||||||||||||||||||||
Total | $ | 1,095,428 |
__________
(a)Weighted averages are calculated based on fair value of investments.
(b)Used when market participants would take into account market yield when pricing the investment.
(c)Used when market participants would use such multiples when pricing the investment.
(d)Used when there is an observable transaction or pending event for the investment.
(e)The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The Company evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.
(f)The Company determined the value of its subordinated notes of SLF JV I based on the total assets less the total liabilities senior to the subordinated notes held at SLF JV I in an amount not exceeding par under the EV technique.
Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities is the market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.
Under the EV technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities is the 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 June 30, 2021 and the level of each financial liability within the fair value hierarchy:
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Syndicated Facility payable | $ | 350,000 | $ | 350,000 | $ | — | $ | — | $ | 350,000 | ||||||||||||||||||||||
Citibank Facility payable | 114,057 | 114,057 | — | — | 114,057 | |||||||||||||||||||||||||||
2025 Notes payable (net of unamortized financing costs and unaccreted discount) | 295,427 | 315,159 | — | 315,159 | — | |||||||||||||||||||||||||||
2027 Notes payable (net of unamortized financing costs and unaccreted discount) | 344,615 | 356,587 | — | 356,587 | — | |||||||||||||||||||||||||||
Total | $ | 1,104,099 | $ | 1,135,803 | $ | — | $ | 671,746 | $ | 464,057 |
41
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The following 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, 2020 and the level of each financial liability within the fair value hierarchy:
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Syndicated Facility payable | $ | 414,825 | $ | 414,825 | $ | — | $ | — | $ | 414,825 | ||||||||||||||||||||||
2025 Notes payable (net of unamortized financing costs and unaccreted discount) | 294,490 | 301,431 | — | 301,431 | — | |||||||||||||||||||||||||||
Total | $ | 709,315 | $ | 716,256 | $ | — | $ | 301,431 | $ | 414,825 |
The principal values of the credit facilities payable approximate fair value due to their variable interest rates and are included in Level 3 of the hierarchy. The Company used market quotes as of the valuation date to estimate the fair value of its 3.500% notes due 2025 ("2025 Notes") and 2.700% notes due 2027 ("2027 Notes"), which are included in Level 2 of the hierarchy.
Portfolio Composition
Summaries of the composition of the Company's portfolio at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets are shown in the following tables:
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||
Cost: | % of Total Investments | % of Total Investments | ||||||||||||||||||||||||
Senior secured debt | $ | 1,981,565 | 85.40 | % | $ | 1,345,012 | 80.58 | % | ||||||||||||||||||
Debt investments in the JVs | 146,985 | 6.33 | % | 96,250 | 5.77 | % | ||||||||||||||||||||
Preferred equity | 59,508 | 2.56 | % | 39,550 | 2.37 | % | ||||||||||||||||||||
Common equity and warrants | 51,403 | 2.22 | % | 61,561 | 3.69 | % | ||||||||||||||||||||
LLC equity interests of the JVs | 49,322 | 2.13 | % | 49,322 | 2.95 | % | ||||||||||||||||||||
Subordinated debt | 31,441 | 1.36 | % | 77,475 | 4.64 | % | ||||||||||||||||||||
Total | $ | 2,320,224 | 100.00 | % | $ | 1,669,170 | 100.00 | % |
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Fair Value: | % of Total Investments | % of Net Assets | % of Total Investments | % of Net Assets | ||||||||||||||||||||||||||||||||||
Senior secured debt | $ | 2,027,054 | 86.66 | % | 155.63 | % | $ | 1,323,043 | 84.06 | % | 144.61 | % | ||||||||||||||||||||||||||
Debt investments in the JVs | 151,647 | 6.48 | % | 11.64 | % | 96,250 | 6.12 | % | 10.52 | % | ||||||||||||||||||||||||||||
Preferred equity | 52,460 | 2.24 | % | 4.03 | % | 29,959 | 1.90 | % | 3.27 | % | ||||||||||||||||||||||||||||
Common equity and warrants | 39,147 | 1.67 | % | 3.01 | % | 37,847 | 2.40 | % | 4.14 | % | ||||||||||||||||||||||||||||
LLC equity interests of the JVs | 36,695 | 1.57 | % | 2.82 | % | 21,190 | 1.35 | % | 2.32 | % | ||||||||||||||||||||||||||||
Subordinated debt | 32,298 | 1.38 | % | 2.48 | % | 65,562 | 4.17 | % | 7.17 | % | ||||||||||||||||||||||||||||
Total | $ | 2,339,301 | 100.00 | % | 179.61 | % | $ | 1,573,851 | 100.00 | % | 172.03 | % |
42
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
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 by geographic region at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets:
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||
Cost: | % of Total Investments | % of Total Investments | ||||||||||||||||||||||||
Northeast | $ | 637,468 | 27.48 | % | $ | 495,440 | 29.69 | % | ||||||||||||||||||
West | 411,321 | 17.73 | % | 330,468 | 19.80 | % | ||||||||||||||||||||
Midwest | 345,589 | 14.89 | % | 285,674 | 17.11 | % | ||||||||||||||||||||
International | 281,324 | 12.12 | % | 210,963 | 12.64 | % | ||||||||||||||||||||
Southwest | 260,065 | 11.21 | % | 67,867 | 4.07 | % | ||||||||||||||||||||
Southeast | 208,553 | 8.99 | % | 171,330 | 10.26 | % | ||||||||||||||||||||
South | 92,196 | 3.97 | % | 72,150 | 4.32 | % | ||||||||||||||||||||
Northwest | 83,708 | 3.61 | % | 35,278 | 2.11 | % | ||||||||||||||||||||
Total | $ | 2,320,224 | 100.00 | % | $ | 1,669,170 | 100.00 | % |
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Fair Value: | % of Total Investments | % of Net Assets | % of Total Investments | % of Net Assets | ||||||||||||||||||||||||||||||||||
Northeast | $ | 633,580 | 27.08 | % | 48.64 | % | $ | 446,499 | 28.38 | % | 48.81 | % | ||||||||||||||||||||||||||
West | 418,713 | 17.90 | % | 32.15 | % | 325,708 | 20.69 | % | 35.60 | % | ||||||||||||||||||||||||||||
Midwest | 343,961 | 14.70 | % | 26.41 | % | 252,482 | 16.04 | % | 27.60 | % | ||||||||||||||||||||||||||||
International | 291,187 | 12.45 | % | 22.36 | % | 213,741 | 13.58 | % | 23.36 | % | ||||||||||||||||||||||||||||
Southwest | 262,777 | 11.23 | % | 20.18 | % | 65,647 | 4.17 | % | 7.18 | % | ||||||||||||||||||||||||||||
Southeast | 214,011 | 9.15 | % | 16.43 | % | 165,516 | 10.52 | % | 18.09 | % | ||||||||||||||||||||||||||||
South | 90,908 | 3.89 | % | 6.98 | % | 70,551 | 4.48 | % | 7.71 | % | ||||||||||||||||||||||||||||
Northwest | 84,164 | 3.60 | % | 6.46 | % | 33,707 | 2.14 | % | 3.68 | % | ||||||||||||||||||||||||||||
Total | $ | 2,339,301 | 100.00 | % | 179.61 | % | $ | 1,573,851 | 100.00 | % | 172.03 | % |
43
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
The following tables show the composition of the Company's portfolio by industry at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets as of June 30, 2021 and September 30, 2020:
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||
Cost: | % of Total Investments | % of Total Investments | ||||||||||||||||||||||||
Application Software | $ | 328,780 | 14.18 | % | $ | 162,536 | 9.71 | % | ||||||||||||||||||
Multi-Sector Holdings (1) | 196,307 | 8.46 | 148,116 | 8.87 | ||||||||||||||||||||||
Data Processing & Outsourced Services | 170,654 | 7.36 | 109,744 | 6.57 | ||||||||||||||||||||||
Pharmaceuticals | 119,285 | 5.14 | 99,471 | 5.96 | ||||||||||||||||||||||
Biotechnology | 114,296 | 4.93 | 89,447 | 5.36 | ||||||||||||||||||||||
Personal Products | 104,300 | 4.50 | 50,091 | 3.00 | ||||||||||||||||||||||
Industrial Machinery | 79,456 | 3.42 | 15,081 | 0.90 | ||||||||||||||||||||||
Health Care Services | 77,113 | 3.32 | 71,139 | 4.26 | ||||||||||||||||||||||
Construction & Engineering | 67,244 | 2.90 | 13,277 | 0.80 | ||||||||||||||||||||||
Specialized Finance | 64,787 | 2.79 | 51,909 | 3.11 | ||||||||||||||||||||||
Internet & Direct Marketing Retail | 64,357 | 2.77 | 14,802 | 0.89 | ||||||||||||||||||||||
Aerospace & Defense | 58,790 | 2.53 | 27,964 | 1.68 | ||||||||||||||||||||||
Integrated Telecommunication Services | 50,293 | 2.17 | 44,583 | 2.67 | ||||||||||||||||||||||
Specialty Chemicals | 46,740 | 2.01 | 44,786 | 2.68 | ||||||||||||||||||||||
Internet Services & Infrastructure | 46,672 | 2.01 | 28,631 | 1.72 | ||||||||||||||||||||||
Fertilizers & Agricultural Chemicals | 44,099 | 1.90 | 33,743 | 2.02 | ||||||||||||||||||||||
Electrical Components & Equipment | 44,001 | 1.90 | 20,934 | 1.25 | ||||||||||||||||||||||
Diversified Support Services | 41,403 | 1.78 | 18,797 | 1.13 | ||||||||||||||||||||||
Real Estate Services | 40,494 | 1.75 | 39,023 | 2.34 | ||||||||||||||||||||||
Oil & Gas Storage & Transportation | 37,436 | 1.61 | 26,615 | 1.59 | ||||||||||||||||||||||
Oil & Gas Refining & Marketing | 36,065 | 1.55 | 31,132 | 1.87 | ||||||||||||||||||||||
Real Estate Operating Companies | 30,694 | 1.32 | — | — | ||||||||||||||||||||||
Health Care Supplies | 29,424 | 1.27 | 21,660 | 1.30 | ||||||||||||||||||||||
Advertising | 28,610 | 1.23 | 13,611 | 0.82 | ||||||||||||||||||||||
Property & Casualty Insurance | 27,961 | 1.21 | 47,995 | 2.88 | ||||||||||||||||||||||
Insurance Brokers | 26,464 | 1.14 | 17,546 | 1.05 | ||||||||||||||||||||||
Movies & Entertainment | 25,960 | 1.12 | 44,691 | 2.68 | ||||||||||||||||||||||
Leisure Facilities | 24,000 | 1.03 | 1,887 | 0.11 | ||||||||||||||||||||||
Independent Power Producers & Energy Traders | 23,704 | 1.02 | 21,462 | 1.29 | ||||||||||||||||||||||
Managed Health Care | 22,689 | 0.98 | 27,479 | 1.65 | ||||||||||||||||||||||
Airport Services | 22,268 | 0.96 | 22,376 | 1.34 | ||||||||||||||||||||||
Airlines | 21,845 | 0.94 | 10,535 | 0.63 | ||||||||||||||||||||||
Commercial Printing | 20,049 | 0.86 | 7,868 | 0.47 | ||||||||||||||||||||||
Health Care Technology | 16,642 | 0.72 | 21,499 | 1.29 | ||||||||||||||||||||||
Thrifts & Mortgage Finance | 16,143 | 0.70 | 938 | 0.06 | ||||||||||||||||||||||
Other Diversified Financial Services | 14,234 | 0.61 | 113 | 0.01 | ||||||||||||||||||||||
Health Care Distributors | 12,763 | 0.55 | 12,810 | 0.77 | ||||||||||||||||||||||
Auto Parts & Equipment | 12,464 | 0.54 | 33,649 | 2.02 | ||||||||||||||||||||||
Apparel, Accessories & Luxury Goods | 11,067 | 0.48 | 13,734 | 0.82 | ||||||||||||||||||||||
Health Care Equipment | 10,588 | 0.46 | — | — | ||||||||||||||||||||||
Electronic Components | 10,077 | 0.43 | 25,600 | 1.53 | ||||||||||||||||||||||
IT Consulting & Other Services | 10,032 | 0.43 | 14,919 | 0.89 | ||||||||||||||||||||||
Restaurants | 9,312 | 0.40 | 10,248 | 0.61 | ||||||||||||||||||||||
Research & Consulting Services | 7,354 | 0.32 | 24,837 | 1.49 | ||||||||||||||||||||||
Leisure Products | 7,010 | 0.30 | — | — | ||||||||||||||||||||||
Systems Software | 6,647 | 0.29 | 20,694 | 1.24 | ||||||||||||||||||||||
Alternative Carriers | 6,566 | 0.28 | — | — | ||||||||||||||||||||||
Automotive Retail | 5,969 | 0.26 | — | — | ||||||||||||||||||||||
Integrated Oil & Gas | 4,836 | 0.21 | — | — | ||||||||||||||||||||||
Food Distributors | 4,618 | 0.20 | — | — | ||||||||||||||||||||||
Food Retail | 3,739 | 0.16 | 6,851 | 0.41 | ||||||||||||||||||||||
Diversified Banks | 3,515 | 0.15 | — | — | ||||||||||||||||||||||
Oil & Gas Exploration & Production | 2,335 | 0.10 | — | — | ||||||||||||||||||||||
Construction Materials | 2,216 | 0.10 | 2,150 | 0.13 | ||||||||||||||||||||||
Housewares & Specialties | 1,863 | 0.08 | — | — | ||||||||||||||||||||||
Metal & Glass Containers | 1,710 | 0.07 | 11,273 | 0.68 | ||||||||||||||||||||||
Specialty Stores | 1,305 | 0.06 | 1,305 | 0.08 | ||||||||||||||||||||||
Education Services | 979 | 0.04 | 22,926 | 1.37 | ||||||||||||||||||||||
General Merchandise Stores | — | — | 19,220 | 1.15 | ||||||||||||||||||||||
Hotels, Resorts & Cruise Lines | — | — | 15,378 | 0.92 | ||||||||||||||||||||||
Diversified Real Estate Activities | — | — | 15,288 | 0.92 | ||||||||||||||||||||||
Trading Companies & Distributors | — | — | 10,228 | 0.61 | ||||||||||||||||||||||
Oil & Gas Equipment & Services | — | — | 3,313 | 0.20 | ||||||||||||||||||||||
Health Care Facilities | — | — | 3,133 | 0.19 | ||||||||||||||||||||||
Specialized REITs | — | — | 133 | 0.01 | ||||||||||||||||||||||
Total | $ | 2,320,224 | 100.00 | % | $ | 1,669,170 | 100.00 | % |
44
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Fair Value: | % of Total Investments | % of Net Assets | % of Total Investments | % of Net Assets | ||||||||||||||||||||||||||||||||||
Application Software | $ | 334,782 | 14.30 | % | 25.74 | % | $ | 160,591 | 10.21 | % | 17.57 | % | ||||||||||||||||||||||||||
Multi-Sector Holdings (1) | 188,342 | 8.05 | 14.46 | 121,751 | 7.74 | 13.31 | ||||||||||||||||||||||||||||||||
Data Processing & Outsourced Services | 165,343 | 7.07 | 12.70 | 99,589 | 6.33 | 10.89 | ||||||||||||||||||||||||||||||||
Pharmaceuticals | 124,186 | 5.31 | 9.54 | 103,092 | 6.55 | 11.27 | ||||||||||||||||||||||||||||||||
Biotechnology | 116,640 | 4.99 | 8.96 | 96,624 | 6.14 | 10.56 | ||||||||||||||||||||||||||||||||
Personal Products | 106,769 | 4.56 | 8.20 | 51,024 | 3.24 | 5.58 | ||||||||||||||||||||||||||||||||
Industrial Machinery | 80,919 | 3.46 | 6.21 | 11,643 | 0.74 | 1.27 | ||||||||||||||||||||||||||||||||
Health Care Services | 76,749 | 3.28 | 5.89 | 59,925 | 3.81 | 6.55 | ||||||||||||||||||||||||||||||||
Internet & Direct Marketing Retail | 68,591 | 2.93 | 5.27 | 15,307 | 0.97 | 1.67 | ||||||||||||||||||||||||||||||||
Construction & Engineering | 68,382 | 2.92 | 5.25 | 13,465 | 0.86 | 1.47 | ||||||||||||||||||||||||||||||||
Specialized Finance | 65,540 | 2.80 | 5.03 | 48,425 | 3.08 | 5.29 | ||||||||||||||||||||||||||||||||
Aerospace & Defense | 61,000 | 2.61 | 4.68 | 24,521 | 1.56 | 2.68 | ||||||||||||||||||||||||||||||||
Integrated Telecommunication Services | 52,079 | 2.23 | 4.00 | 41,091 | 2.61 | 4.49 | ||||||||||||||||||||||||||||||||
Specialty Chemicals | 46,922 | 2.01 | 3.60 | 39,008 | 2.48 | 4.26 | ||||||||||||||||||||||||||||||||
Internet Services & Infrastructure | 46,560 | 1.99 | 3.57 | 26,587 | 1.69 | 2.91 | ||||||||||||||||||||||||||||||||
Fertilizers & Agricultural Chemicals | 44,964 | 1.92 | 3.45 | 33,719 | 2.14 | 3.69 | ||||||||||||||||||||||||||||||||
Electrical Components & Equipment | 44,415 | 1.90 | 3.41 | 20,465 | 1.30 | 2.24 | ||||||||||||||||||||||||||||||||
Diversified Support Services | 42,558 | 1.82 | 3.27 | 17,689 | 1.12 | 1.93 | ||||||||||||||||||||||||||||||||
Real Estate Services | 41,330 | 1.77 | 3.17 | 37,723 | 2.40 | 4.12 | ||||||||||||||||||||||||||||||||
Oil & Gas Refining & Marketing | 36,894 | 1.58 | 2.83 | 29,826 | 1.90 | 3.26 | ||||||||||||||||||||||||||||||||
Oil & Gas Storage & Transportation | 35,753 | 1.53 | 2.75 | 25,749 | 1.64 | 2.81 | ||||||||||||||||||||||||||||||||
Real Estate Operating Companies | 31,684 | 1.35 | 2.43 | — | — | — | ||||||||||||||||||||||||||||||||
Advertising | 30,368 | 1.30 | 2.33 | 13,440 | 0.85 | 1.47 | ||||||||||||||||||||||||||||||||
Health Care Supplies | 30,016 | 1.28 | 2.30 | 21,634 | 1.37 | 2.36 | ||||||||||||||||||||||||||||||||
Insurance Brokers | 29,080 | 1.24 | 2.23 | 18,083 | 1.15 | 1.98 | ||||||||||||||||||||||||||||||||
Property & Casualty Insurance | 28,584 | 1.22 | 2.19 | 46,737 | 2.97 | 5.11 | ||||||||||||||||||||||||||||||||
Movies & Entertainment | 27,270 | 1.17 | 2.09 | 43,592 | 2.77 | 4.76 | ||||||||||||||||||||||||||||||||
Airlines | 23,768 | 1.02 | 1.82 | 13,132 | 0.83 | 1.44 | ||||||||||||||||||||||||||||||||
Independent Power Producers & Energy Traders | 23,637 | 1.01 | 1.81 | 20,812 | 1.32 | 2.27 | ||||||||||||||||||||||||||||||||
Managed Health Care | 22,935 | 0.98 | 1.76 | 26,681 | 1.70 | 2.92 | ||||||||||||||||||||||||||||||||
Leisure Facilities | 22,054 | 0.94 | 1.69 | — | — | — | ||||||||||||||||||||||||||||||||
Airport Services | 21,372 | 0.91 | 1.64 | 21,283 | 1.35 | 2.33 | ||||||||||||||||||||||||||||||||
Commercial Printing | 20,323 | 0.87 | 1.56 | 7,334 | 0.47 | 0.80 | ||||||||||||||||||||||||||||||||
Health Care Technology | 16,868 | 0.72 | 1.30 | 22,058 | 1.40 | 2.41 | ||||||||||||||||||||||||||||||||
Thrifts & Mortgage Finance | 16,044 | 0.69 | 1.23 | 353 | 0.02 | 0.04 | ||||||||||||||||||||||||||||||||
Other Diversified Financial Services | 14,406 | 0.62 | 1.11 | — | — | — | ||||||||||||||||||||||||||||||||
Health Care Distributors | 12,823 | 0.55 | 0.98 | 12,260 | 0.78 | 1.34 | ||||||||||||||||||||||||||||||||
Auto Parts & Equipment | 12,256 | 0.52 | 0.94 | 31,382 | 1.99 | 3.43 | ||||||||||||||||||||||||||||||||
Health Care Equipment | 10,695 | 0.46 | 0.82 | — | — | — | ||||||||||||||||||||||||||||||||
Electronic Components | 10,140 | 0.43 | 0.78 | 26,552 | 1.69 | 2.90 | ||||||||||||||||||||||||||||||||
IT Consulting & Other Services | 9,891 | 0.42 | 0.76 | 13,905 | 0.88 | 1.52 | ||||||||||||||||||||||||||||||||
Restaurants | 9,489 | 0.41 | 0.73 | 7,886 | 0.50 | 0.86 | ||||||||||||||||||||||||||||||||
Research & Consulting Services | 7,578 | 0.32 | 0.58 | 24,212 | 1.54 | 2.65 | ||||||||||||||||||||||||||||||||
Leisure Products | 7,010 | 0.30 | 0.54 | 49 | — | 0.01 | ||||||||||||||||||||||||||||||||
Alternative Carriers | 6,984 | 0.30 | 0.54 | — | — | — | ||||||||||||||||||||||||||||||||
Systems Software | 6,789 | 0.29 | 0.52 | 20,481 | 1.30 | 2.24 | ||||||||||||||||||||||||||||||||
Apparel, Accessories & Luxury Goods | 6,096 | 0.26 | 0.47 | 7,856 | 0.50 | 0.86 | ||||||||||||||||||||||||||||||||
Automotive Retail | 5,967 | 0.26 | 0.46 | — | — | — | ||||||||||||||||||||||||||||||||
Integrated Oil & Gas | 4,834 | 0.21 | 0.37 | — | — | — | ||||||||||||||||||||||||||||||||
Food Distributors | 4,734 | 0.20 | 0.36 | — | — | — | ||||||||||||||||||||||||||||||||
Food Retail | 3,746 | 0.16 | 0.29 | 6,998 | 0.44 | 0.76 | ||||||||||||||||||||||||||||||||
Diversified Banks | 3,554 | 0.15 | 0.27 | — | — | — | ||||||||||||||||||||||||||||||||
Oil & Gas Exploration & Production | 2,489 | 0.11 | 0.19 | — | — | — | ||||||||||||||||||||||||||||||||
Construction Materials | 2,391 | 0.10 | 0.18 | 2,073 | 0.13 | 0.23 | ||||||||||||||||||||||||||||||||
Housewares & Specialties | 1,872 | 0.08 | 0.14 | — | — | — | ||||||||||||||||||||||||||||||||
Metal & Glass Containers | 1,825 | 0.08 | 0.14 | 11,833 | 0.75 | 1.29 | ||||||||||||||||||||||||||||||||
Education Services | 1,011 | 0.04 | 0.08 | 7,088 | 0.45 | 0.77 | ||||||||||||||||||||||||||||||||
General Merchandise Stores | — | — | — | 17,877 | 1.14 | 1.95 | ||||||||||||||||||||||||||||||||
Hotels, Resorts & Cruise Lines | — | — | — | 17,081 | 1.09 | 1.87 | ||||||||||||||||||||||||||||||||
Diversified Real Estate Activities | — | — | — | 16,846 | 1.07 | 1.84 | ||||||||||||||||||||||||||||||||
Trading Companies & Distributors | — | — | — | 10,069 | 0.64 | 1.10 | ||||||||||||||||||||||||||||||||
Health Care Facilities | — | — | — | 3,640 | 0.23 | 0.40 | ||||||||||||||||||||||||||||||||
Oil & Gas Equipment & Services | — | — | — | 2,588 | 0.16 | 0.28 | ||||||||||||||||||||||||||||||||
Specialized REITs | — | — | — | 222 | 0.01 | 0.02 | ||||||||||||||||||||||||||||||||
Total | $ | 2,339,301 | 100.00 | % | 179.61 | % | $ | 1,573,851 | 100.00 | % | 172.03 | % |
___________________
(1)This industry includes the Company's investments in the JVs and certain limited partnership interests.
45
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
As of June 30, 2021 and September 30, 2020, the Company had no single investment that represented greater than 10% of the total investment portfolio at fair value. Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses, may fluctuate and in any given period can be highly concentrated among several investments.
Senior Loan Fund JV I, LLC
In May 2014, the Company entered into an LLC agreement with Kemper to form SLF JV I. The Company co-invests in senior secured loans of middle-market companies and other corporate debt securities with Kemper through its investment in SLF JV I. SLF JV I is managed by a four person Board of Directors, two of whom are selected by the Company and two of whom are selected by Kemper. All portfolio decisions and investment decisions in respect of SLF JV I must be approved by the SLF JV I investment committee, which consists of one representative selected by the Company and one representative selected by Kemper (with approval from a representative of each required). Since the Company does not have a controlling financial interest in SLF JV I, the Company does not consolidate SLF JV I.
SLF JV I is capitalized pro rata with LLC equity interests as transactions are completed and may be capitalized with additional subordinated notes issued to the Company and Kemper by SLF JV I. The subordinated notes issued by SLF JV I are referred to as the SLF JV I Notes. The SLF JV I Notes are senior in right of payment to SLF JV I LLC equity interests and subordinated in right of payment to SLF JV I’s secured debt. As of June 30, 2021 and September 30, 2020, the Company and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I and the outstanding SLF JV I Notes.
SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch (as amended, the "SLF JV I Deutsche Bank Facility"), which permitted up to $260.0 million and $250.0 million of borrowings (subject to borrowing base and other limitations) as of June 30, 2021 and September 30, 2020, respectively. Borrowings under the SLF JV I Deutsche Bank Facility are secured by all of the assets of SLF JV I Funding LLC, a special purpose financing subsidiary of SLF JV I. As of June 30, 2021, the reinvestment period of the SLF JV I Deutsche Bank Facility was scheduled to expire May 3, 2023 and the maturity date for the SLF JV I Deutsche Bank Facility was May 3, 2028. As of June 30, 2021, borrowings under the SLF JV I Deutsche Bank Facility accrued interest at a rate equal to 3-month LIBOR plus 2.00% per annum during the reinvestment period, 3-month LIBOR plus 2.15% per annum for the first year after the reinvestment period, plus 2.25% for the following year and plus 2.50% thereafter, in each case with a 0.125% LIBOR floor. Under the SLF JV I Deutsche Bank Facility, $209.6 million and $167.9 million of borrowings were outstanding as of June 30, 2021 and September 30, 2020, respectively.
As of June 30, 2021 and September 30, 2020, SLF JV I had total assets of $386.5 million and $313.5 million, respectively. SLF JV I's portfolio primarily consisted of senior secured loans to 57 and 56 portfolio companies as of June 30, 2021 and September 30, 2020, respectively. The portfolio companies in SLF JV I are in industries similar to those in which the Company may invest directly. As of June 30, 2021, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $132.9 million in aggregate, at fair value. As of September 30, 2020, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $117.4 million in aggregate, at fair value.
As of June 30, 2021 and September 30, 2020, the Company and Kemper had funded approximately $165.5 million to SLF JV I, of which $144.8 million was from the Company. As of June 30, 2021, the Company had aggregate commitments to fund SLF JV I of $35.0 million, of which approximately $26.2 million was to fund additional SLF JV I Notes and approximately $8.8 million was to fund LLC equity interests in SLF JV I. As of September 30, 2020, the Company had commitments to fund LLC equity interests in SLF JV I of $17.5 million, of which $1.3 million was unfunded.
46
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
Below is a summary of SLF JV I's portfolio, followed by a listing of the individual loans in SLF JV I's portfolio as of June 30, 2021 and September 30, 2020:
June 30, 2021 | September 30, 2020 | |||||||||||||
Senior secured loans (1) | $359,079 | $307,579 | ||||||||||||
Weighted average interest rate on senior secured loans (2) | 5.61% | 5.44% | ||||||||||||
Number of borrowers in SLF JV I | 57 | 56 | ||||||||||||
Largest exposure to a single borrower (1) | $9,938 | $10,487 | ||||||||||||
Total of five largest loan exposures to borrowers (1) | $47,100 | $49,097 |
__________
(1) At principal amount.
(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.
47
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
SLF JV I Portfolio as of June 30, 2021
Portfolio Company | Investment Type | Cash Interest Rate (1)(2) | Industry | Principal | Cost | Fair Value (3) | Notes | ||||||||||||||||||||||
Access CIG, LLC | First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025 | 3.84 | % | Diversified Support Services | $ | 9,135 | $ | 9,106 | $ | 9,092 | (4) | ||||||||||||||||||
ADB Companies, LLC | First Lien Term Loan, LIBOR+6.25% cash due 12/18/2025 | 7.25 | % | Construction & Engineering | 7,832 | 7,654 | 7,711 | (4) | |||||||||||||||||||||
AI Ladder (Luxembourg) Subco S.a.r.l. | First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 | 4.58 | % | Electrical Components & Equipment | 5,957 | 5,855 | 5,963 | (4) | |||||||||||||||||||||
Altice France S.A. | First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026 | 4.15 | % | Integrated Telecommunication Services | 4,607 | 4,440 | 4,606 | ||||||||||||||||||||||
Alvogen Pharma US, Inc. | First Lien Term Loan, LIBOR+5.25% cash due 12/31/2023 | 6.25 | % | Pharmaceuticals | 9,879 | 9,682 | 9,749 | ||||||||||||||||||||||
Amplify Finco Pty Ltd. | First Lien Term Loan, LIBOR+4.25% cash due 11/26/2026 | 5.00 | % | Movies & Entertainment | 7,900 | 7,821 | 7,762 | (4) | |||||||||||||||||||||
Anastasia Parent, LLC | First Lien Term Loan, LIBOR+3.75% cash due 8/11/2025 | 3.90 | % | Personal Products | 2,806 | 2,216 | 2,257 | ||||||||||||||||||||||
Apptio, Inc. | First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 | 8.25 | % | Application Software | 4,615 | 4,561 | 4,533 | (4) | |||||||||||||||||||||
Apptio, Inc. | First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 | 8.25 | % | Application Software | 154 | 149 | 147 | (4)(5) | |||||||||||||||||||||
Total Apptio, Inc. | 4,769 | 4,710 | 4,680 | ||||||||||||||||||||||||||
Aurora Lux Finco S.À.R.L. | First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026 | 7.00 | % | Airport Services | 6,419 | 6,293 | 6,040 | (4) | |||||||||||||||||||||
BAART Programs, Inc. | First Lien Term Loan, LIBOR+5.00% cash due 6/11/2027 | 6.00 | % | Health Care Equipment | 6,750 | 6,683 | 6,716 | ||||||||||||||||||||||
BAART Programs, Inc. | First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 6/11/2027 | Health Care Equipment | — | (8) | (4) | (5) | |||||||||||||||||||||||
Total BAART Programs, Inc. | 6,750 | 6,675 | 6,712 | ||||||||||||||||||||||||||
Blackhawk Network Holdings, Inc. | First Lien Term Loan, LIBOR+3.00% cash due 6/15/2025 | 3.10 | % | Data Processing & Outsourced Services | 9,700 | 9,686 | 9,604 | ||||||||||||||||||||||
Boxer Parent Company Inc. | First Lien Term Loan, LIBOR+3.75% cash due 10/2/2025 | 3.85 | % | Systems Software | 6,662 | 6,589 | 6,632 | ||||||||||||||||||||||
Brazos Delaware II, LLC | First Lien Term Loan, LIBOR+4.00% cash due 5/21/2025 | 4.09 | % | Oil & Gas Equipment & Services | 7,272 | 7,252 | 7,112 | ||||||||||||||||||||||
C5 Technology Holdings, LLC | 171 Common Units | Data Processing & Outsourced Services | — | — | (4) | ||||||||||||||||||||||||
C5 Technology Holdings, LLC | 7,193,539.63 Preferred Units | Data Processing & Outsourced Services | 7,194 | 5,683 | (4) | ||||||||||||||||||||||||
Total C5 Technology Holdings, LLC | 7,194 | 5,683 | |||||||||||||||||||||||||||
CITGO Petroleum Corp. | First Lien Term Loan, LIBOR+6.25% cash due 3/28/2024 | 7.25 | % | Oil & Gas Refining & Marketing | 7,129 | 7,058 | 7,187 | (4) | |||||||||||||||||||||
Connect U.S. Finco LLC | First Lien Term Loan, LIBOR+3.50% cash due 12/11/2026 | 4.50 | % | Alternative Carriers | 7,381 | 7,220 | 7,400 | ||||||||||||||||||||||
Convergeone Holdings, Inc. | First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026 | 5.10 | % | IT Consulting & Other Services | 4,975 | 4,810 | 4,930 | (4) | |||||||||||||||||||||
Curium Bidco S.à.r.l. | First Lien Term Loan, LIBOR+4.00% cash due 7/9/2026 | 4.15 | % | Biotechnology | 5,895 | 5,851 | 5,888 | ||||||||||||||||||||||
Dcert Buyer, Inc. | First Lien Term Loan, LIBOR+4.00% cash due 10/16/2026 | 4.10 | % | Internet Services & Infrastructure | 7,900 | 7,880 | 7,920 | ||||||||||||||||||||||
Enviva Holdings, LP | First Lien Term Loan, LIBOR+5.50% cash due 2/17/2026 | 6.50 | % | Forest Products | 5,893 | 5,834 | 5,959 | ||||||||||||||||||||||
eResearch Technology, Inc. | First Lien Term Loan, LIBOR+4.50% cash due 2/4/2027 | 5.50 | % | Application Software | 7,425 | 7,351 | 7,468 | ||||||||||||||||||||||
Gibson Brands, Inc. | First Lien Term Loan, LIBOR+5.00% cash due 6/25/2028 | 5.75 | % | Leisure Products | 7,500 | 7,425 | 7,500 | ||||||||||||||||||||||
GI Chill Acquisition LLC | First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025 | 4.15 | % | Managed Health Care | 3,731 | 3,748 | 3,730 | (4) | |||||||||||||||||||||
GI Chill Acquisition LLC | Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026 | 7.65 | % | Managed Health Care | 3,750 | 3,670 | 3,731 | (4) | |||||||||||||||||||||
Total GI Chill Acquisition LLC | 7,481 | 7,418 | 7,461 | ||||||||||||||||||||||||||
Gigamon, Inc. | First Lien Term Loan, LIBOR+3.75% cash due 12/27/2024 | 4.50 | % | Systems Software | 7,619 | 7,581 | 7,648 |
48
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
Portfolio Company | Investment Type | Cash Interest Rate (1)(2) | Industry | Principal | Cost | Fair Value (3) | Notes | ||||||||||||||||||||||
Global Medical Response, Inc. | First Lien Term Loan, LIBOR+4.75% cash due 10/2/2025 | 5.75 | % | Health Care Services | $ | 2,220 | $ | 2,181 | $ | 2,233 | |||||||||||||||||||
Grab Holdings Inc. | First Lien Term Loan, LIBOR+4.50% cash due 1/29/2026 | 5.50 | % | Interactive Media & Services | 2,993 | 2,910 | 3,045 | ||||||||||||||||||||||
Indivior Finance S.À.R.L. | First Lien Term Loan, LIBOR+5.25% cash due 6/28/2026 | 6.00 | % | Pharmaceuticals | 7,500 | 7,350 | 7,350 | ||||||||||||||||||||||
Intelsat Jackson Holdings S.A. | First Lien Term Loan, PRIME+4.75% cash due 11/27/2023 | 8.00 | % | Alternative Carriers | 3,568 | 3,547 | 3,633 | ||||||||||||||||||||||
Intelsat Jackson Holdings S.A. | First Lien Term Loan, LIBOR+5.50% cash due 7/13/2022 | 6.50 | % | Alternative Carriers | 1,943 | 1,769 | 1,960 | ||||||||||||||||||||||
Total Intelsat Jackson Holdings S.A. | 5,511 | 5,316 | 5,593 | ||||||||||||||||||||||||||
INW Manufacturing, LLC | First Lien Term Loan, LIBOR+5.75% cash due 5/7/2027 | 6.50 | % | Personal Products | 9,938 | 9,645 | 9,739 | (4) | |||||||||||||||||||||
Lightbox Intermediate, L.P. | First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026 | 5.15 | % | Real Estate Services | 7,462 | 7,392 | 7,425 | (4) | |||||||||||||||||||||
LogMeIn, Inc. | First Lien Term Loan, LIBOR+4.75% cash due 8/31/2027 | 4.83 | % | Application Software | 7,960 | 7,827 | 7,957 | (4) | |||||||||||||||||||||
LTI Holdings, Inc. | First Lien Term Loan, LIBOR+3.50% cash due 9/6/2025 | 3.60 | % | Electronic Components | 7,462 | 7,341 | 7,373 | ||||||||||||||||||||||
Maravai Intermediate Holdings, LLC | First Lien Term Loan, LIBOR+3.75% cash due 10/19/2027 | 4.75 | % | Biotechnology | 6,838 | 6,769 | 6,874 | (4) | |||||||||||||||||||||
Mindbody, Inc. | First Lien Term Loan, LIBOR+7.00% cash 1.50% PIK due 2/14/2025 | 8.00 | % | Internet Services & Infrastructure | 4,598 | 4,544 | 4,373 | (4) | |||||||||||||||||||||
Mindbody, Inc. | First Lien Revolver, LIBOR+8.00% cash due 2/14/2025 | Internet Services & Infrastructure | — | (6) | (23) | (4)(5) | |||||||||||||||||||||||
Total Mindbody, Inc. | 4,598 | 4,538 | 4,350 | ||||||||||||||||||||||||||
MRI Software LLC | First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026 | 6.50 | % | Application Software | 3,844 | 3,809 | 3,849 | (4) | |||||||||||||||||||||
MRI Software LLC | First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 | Application Software | — | (6) | 3 | (4)(5) | |||||||||||||||||||||||
MRI Software LLC | First Lien Revolver, LIBOR+5.50% cash due 2/10/2026 | Application Software | — | (3) | — | (4)(5) | |||||||||||||||||||||||
Total MRI Software LLC | 3,844 | 3,800 | 3,852 | ||||||||||||||||||||||||||
Navicure, Inc. | First Lien Term Loan, LIBOR+4.00% cash due 10/22/2026 | 4.10 | % | Health Care Technology | 5,925 | 5,894 | 5,944 | ||||||||||||||||||||||
Northern Star Industries Inc. | First Lien Term Loan, LIBOR+4.50% cash due 3/31/2025 | 5.50 | % | Electrical Components & Equipment | 6,773 | 6,754 | 6,756 | ||||||||||||||||||||||
Novetta Solutions, LLC | First Lien Term Loan, LIBOR+5.00% cash due 10/17/2022 | 6.00 | % | Application Software | 5,884 | 5,871 | 5,891 | ||||||||||||||||||||||
OEConnection LLC | First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026 | 4.10 | % | Application Software | 7,871 | 7,836 | 7,872 | (4) | |||||||||||||||||||||
Olaplex, Inc. | First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026 | 7.50 | % | Personal Products | 6,313 | 6,226 | 6,313 | (4) | |||||||||||||||||||||
Olaplex, Inc. | First Lien Revolver, LIBOR+6.50% cash due 1/8/2025 | Personal Products | — | (8) | (4) | (4)(5) | |||||||||||||||||||||||
Total Olaplex, Inc. | 6,313 | 6,218 | 6,309 | ||||||||||||||||||||||||||
Park Place Technologies, LLC | First Lien Term Loan, LIBOR+5.00% cash due 11/10/2027 | 6.00 | % | Internet Services & Infrastructure | 4,988 | 4,806 | 5,011 | (4) | |||||||||||||||||||||
PaySimple, Inc. | First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025 | 5.61 | % | Data Processing & Outsourced Services | 7,462 | 7,427 | 7,425 | (4) | |||||||||||||||||||||
Planview Parent, Inc. | Second Lien Term Loan, LIBOR+7.25% cash due 12/18/2028 | 8.00 | % | Application Software | 4,503 | 4,435 | 4,514 | (4) | |||||||||||||||||||||
Pluralsight, LLC | First Lien Term Loan, LIBOR+8.00% cash due 4/6/2027 | 9.00 | % | Application Software | 4,983 | 4,887 | 4,883 | (4) | |||||||||||||||||||||
Pluralsight, LLC | First Lien Revolver, LIBOR+8.00% cash due 4/6/2027 | Application Software | — | (8) | (8) | (4)(5) | |||||||||||||||||||||||
Total Pluralsight, LLC | 4,983 | 4,879 | 4,875 | ||||||||||||||||||||||||||
RS Ivy Holdco, Inc. | First Lien Term Loan, LIBOR+5.50% cash due 12/23/2027 | 6.50 | % | Oil & Gas Exploration & Production | 6,965 | 6,861 | 6,969 | (4) | |||||||||||||||||||||
Sabert Corporation | First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026 | 5.50 | % | Metal & Glass Containers | 2,735 | 2,707 | 2,738 | (4) | |||||||||||||||||||||
Salient CRGT, Inc. | First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022 | 7.50 | % | Aerospace & Defense | 4,916 | 4,881 | 4,885 | (4) |
49
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
Portfolio Company | Investment Type | Cash Interest Rate (1)(2) | Industry | Principal | Cost | Fair Value (3) | Notes | ||||||||||||||||||||||
SHO Holding I Corporation | First Lien Term Loan, LIBOR+5.25% cash due 4/27/2024 | 6.25 | % | Footwear | $ | 8,310 | $ | 8,297 | $ | 7,812 | |||||||||||||||||||
SHO Holding I Corporation | First Lien Term Loan, LIBOR+5.23% cash due 4/27/2024 | 6.23 | % | Footwear | 138 | 138 | 129 | ||||||||||||||||||||||
Total SHO Holding I Corporation | 8,448 | 8,435 | 7,941 | ||||||||||||||||||||||||||
Sirva Worldwide, Inc. | First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025 | 5.60 | % | Diversified Support Services | 3,694 | 3,639 | 3,490 | (4) | |||||||||||||||||||||
Sorenson Communications, LLC | First Lien Term Loan, LIBOR+5.50% cash due 3/17/2026 | 6.25 | % | Communications Equipment | 2,929 | 2,900 | 2,958 | ||||||||||||||||||||||
Star US Bidco LLC | First Lien Term Loan, LIBOR+4.25% cash due 3/17/2027 | 5.25 | % | Industrial Machinery | 8,276 | 8,088 | 8,281 | (4) | |||||||||||||||||||||
Supermoose Borrower, LLC | First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025 | 3.90 | % | Application Software | 7,843 | 7,461 | 7,353 | (4) | |||||||||||||||||||||
Surgery Center Holdings, Inc. | First Lien Term Loan, LIBOR+3.75% cash due 8/31/2026 | 4.50 | % | Health Care Facilities | 4,924 | 4,908 | 4,950 | ||||||||||||||||||||||
Trench Plate Rental, Co. | First Lien Term Loan, LIBOR+4.75% cash due 12/3/2026 | 5.75 | % | Construction Materials | 3,951 | 3,892 | 3,891 | ||||||||||||||||||||||
Trench Plate Rental, Co. | First Lien Delayed Draw Term Loan, LIBOR+4.75% cash due 12/3/2026 | Construction Materials | — | (11) | (11) | (5) | |||||||||||||||||||||||
Trench Plate Rental, Co. | First Lien Revolver, LIBOR+4.75% cash due 12/3/2026 | 5.75 | % | Construction Materials | 24 | 15 | 15 | (5) | |||||||||||||||||||||
Total Trench Plate Rental, Co. | 3,975 | 3,896 | 3,895 | ||||||||||||||||||||||||||
Veritas US Inc. | First Lien Term Loan, LIBOR+5.00% cash due 9/1/2025 | 6.00 | % | Application Software | 6,450 | 6,343 | 6,501 | (4) | |||||||||||||||||||||
Verscend Holding Corp. | First Lien Term Loan, LIBOR+4.00% cash due 8/27/2025 | 4.10 | % | Health Care Technology | 4,090 | 4,061 | 4,107 | ||||||||||||||||||||||
Windstream Services II, LLC | First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027 | 7.25 | % | Integrated Telecommunication Services | 7,920 | 7,638 | 7,956 | (4) | |||||||||||||||||||||
WP CPP Holdings, LLC | Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 | 8.75 | % | Aerospace & Defense | 6,000 | 5,962 | 5,870 | (4) | |||||||||||||||||||||
Total Portfolio Investments | $ | 359,079 | $ | 360,570 | $ | 361,246 |
__________
(1) Represents the interest rate as of June 30, 2021. All interest rates are payable in cash, unless otherwise noted.
(2) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All the LIBOR shown above is in U.S. dollars. As of June 30, 2021, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 0.10%, the 60-day LIBOR at 0.13%, the 90-day LIBOR at 0.15%, the 180-day LIBOR at 0.17%, the 360-day LIBOR at 0.25% and the PRIME at 3.25%. Most loans include an interest floor, which generally ranges from 0% to 1%.
(3) Represents the current determination of fair value as of June 30, 2021 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.
(4) This investment was held by both the Company and SLF JV I as of June 30, 2021.
(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.
50
OAKTREE SPECIALTY LENDING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts, percentages and as otherwise indicated)
SLF JV I Portfolio as of September 30, 2020
Portfolio Company | Investment Type | Cash Interest Rate (1)(2) | Industry | Principal | Cost | Fair Value (3) | Notes | ||||||||||||||||||||||
Access CIG, LLC | First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025 | 3.91 | % | Diversified Support Services | $ | 9,206 | $ | 9,170 | $ | 9,029 | |||||||||||||||||||
AdVenture Interactive, Corp. | 927 shares of common stock | Advertising | 1,390 | 1,373 | (4) | ||||||||||||||||||||||||
AI Ladder (Luxembourg) Subco S.a.r.l. | First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 | 4.65 | % | Electrical Components & Equipment | 6,038 | 5,914 | 5,781 | (4) | |||||||||||||||||||||
Airbnb, Inc. | First Lien Term Loan, LIBOR+7.50% cash due 4/17/2025 | 8.50 | % | Hotels, Resorts & Cruise Lines | 3,051 | 2,981 | 3,311 | (4) | |||||||||||||||||||||
Altice France S.A. | First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026 | 4.15 | % | Integrated Telecommunication Services | 4,643 | 4,450 | 4,527 | ||||||||||||||||||||||
Alvogen Pharma US, Inc. | First Lien Term Loan, LIBOR+5.25% cash due 12/31/2023 | 6.25 | % | Pharmaceuticals | 9,879 | 9,623 | 9,566 | ||||||||||||||||||||||
Amplify Finco Pty Ltd. | First Lien Term Loan, LIBOR+4.00% cash due 11/26/2026 | 4.75 | % | Movies & Entertainment | 7,960 | 7,880 | 6,846 | (4) | |||||||||||||||||||||
Anastasia Parent, LLC | First Lien Term Loan, LIBOR+3.75% cash due 8/11/2025 | Personal Products | 2,828 | 2,282 | 1,248 | (6) | |||||||||||||||||||||||
Apptio, Inc. | First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 | 8.25 | % | Application Software | 4,615 | 4,550 | 4,526 | (4) | |||||||||||||||||||||
Apptio, Inc. | First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 | Application Software | — | (5) | (8) | (4)(5) | |||||||||||||||||||||||
Total Apptio, Inc. | 4,615 | 4,545 | 4,518 | ||||||||||||||||||||||||||
Aurora Lux Finco S.À.R.L. | First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026 | 7.00 | % | Airport Services | 6,468 | 6,324 | 6,015 | (4) | |||||||||||||||||||||
Blackhawk Network Holdings, Inc. | First Lien Term Loan, LIBOR+3.00% cash due 6/15/2025 | 3.15 | % | Data Processing & Outsourced Services | 9,775 | 9,758 | 9,251 | ||||||||||||||||||||||
Boxer Parent Company Inc. | First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 | 4.40 | % | Systems Software | 7,532 | 7,448 | 7,331 | (4) | |||||||||||||||||||||
Brazos Delaware II, LLC | First Lien Term Loan, LIBOR+4.00% cash due 5/21/2025 | 4.16 | % | Oil & Gas Equipment & Services | 7,331 | 7,306 | 5,600 | ||||||||||||||||||||||
C5 Technology Holdings, LLC | 171 Common Units | Data Processing & Outsourced Services | — | — | (4) | ||||||||||||||||||||||||
C5 Technology Holdings, LLC | 7,193,539.63 Preferred Units | Data Processing & Outsourced Services | 7,194 | 5,683 | (4) | ||||||||||||||||||||||||
Total C5 Technology Holdings, LLC | 7,194 | 5,683 | |||||||||||||||||||||||||||
Carrols Restaurant Group, Inc. | First Lien Term Loan, LIBOR+6.25% cash due 4/30/2026 | 7.25 | % | Restaurants | 3,990 | 3,792 | 3,960 | ||||||||||||||||||||||
CITGO Petroleum Corp. | First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024 | 6.00 | % | Oil & Gas Refining & Marketing | 7,184 | 7,112 | 6,842 | (4) | |||||||||||||||||||||
Clear Channel Outdoor Holdings, Inc. | First Lien Term Loan, LIBOR+3.50% cash due 8/21/2026 | 3.76 | % | Advertising | 331 | 290 | 302 | ||||||||||||||||||||||
Connect U.S. Finco LLC | First Lien Term Loan, LIBOR+4.50% cash due 12/11/2026 | 5.50 | % | Alternative Carriers | 7,437 | 7,262 | 7,228 | ||||||||||||||||||||||
Curium Bidco S.à.r.l. | First Lien Term Loan, LIBOR+3.75% cash due 7/9/2026 | 3.97 | % | Biotechnology | 5,940 | 5,895 |