Earnings call transcript Q3 2023

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Operator

Welcome and thank you for joining Oaktree Specialty Lending Corporation’s Third Fiscal Quarter 2023 Conference Call. Today’s conference call is being recorded. [Operator Instructions] Now, I would like to introduce Michael Mosticchio, Head of Investor Relations, who will host today’s conference call. Mr. Mosticchio, you may begin.

Michael Mosticchio

welcome call. Specialty and fiscal Corporation’s operator conference quarter you, to Lending Oaktree third Thank

release, we the earnings presentation, our Our which at can accompanying and website be slide the accessed on oaktreespecialtylending.com. Investors of issued section this morning

session Executive Chief us are Matt Investment for on and McKown, the Chief President Operating and Officer question-and-answer and Chief Chief call Our speakers Financial Panossian, is Treasurer. Officer our today Chris Armen Officer. Matt Officer, Stewart, Pendo, Also the joining

that you with remind on to financial our and other benefits want with I begin, Income Inc., reflecting results savings views operating we includes future Oaktree call current things, and II, anticipated statements of merger the respect comments the forward-looking with synergies Before performance. and today’s among the ability merger associated Strategic the the to our expected to, realize

those could undertake revise discussion expressed refer statements. our SEC from Our filings statements. any in actual detail. the materially factors Please a implied update results or forward-looking duty these to further to or for forward-looking differ in no of We

the section and that in Specialty Lending company that review uses Oaktree and would an offer it on its to interest like purchase that website. The Oaktree to remind shares nothing its the of information also should material media website to others others an information. Investors on announce to you of any sell corporate this offer call Investors encourages the or I fund. note solicitation to constitutes investors, any

now Matt. would turn to With call like the to that, over I

Matt Pendo

appreciate we of with cost OSIX, bolstered impact and positive floating fiscal your results closed strong portfolio. of our interest by on arising rate base earnings Combined predominantly shareholders. merger for behalf synergies We in from quarter, origination We attractive our the with welcome recently generated participation on OCSL. higher the activity rates robust the produced our Mike everyone. and yields call. and Thanks, you of strong your Thank on third at this support

share This quarter interest primarily operating Third higher in and investment share quarter. down reflected NAV as modest the for value decline per total expense was investment income the supported $X.XX of increased The reported the prior offset We certain and lower by $X.XX well fees. as was dividend. $XX.XX, NII management by from quarter. higher share by slightly of prior was net and $XX.XX adjusted incentive per expenses, partly a line with of per debt income excess investments in decrease quarterly offset in

our $X.XX Board quarterly per at the strong our maintained overall dividend earnings, share. Given

pre-pandemic this a is of double As nearly our reminder, $X.XXX. quarterly dividend run-rate

and our emphasis were investment lien quarter proceeds. at opportunities the $XXX investment originations loans, XX.X%. top quarter. Of were yield Our of at lending quarter with average strong more XX% million level received reflecting of activity the capital Pay-downs on new million the was exits in the being and we were weighted the of structure. the nearly double private as also in The attractive of $XXX direct of new the commitments, strong, originations, third prior was new first than XX%

investments. interest fewer selling opportunistic While also broader of to and levels given yielding refinancings, market out steady slower lower continued have been pay-downs activity higher public receive has and of been rates credit we

Importantly, the third quarter OSIX. quarter merger marked following our with first realizing synergies full the

basis. of on to pleased operating an synergies be We achieve worth track to annualized are on $X.X expense million

our greater structure, improve We on capital leveraging scale been financial streamlining flexibility. also focused to our have OCSL’s

to from extend facility the of our syndicated we increased and X years billion billion XXXX. $X.X the During $X.X by size quarter, maturity credit to the

our maturity as and banking by with appreciate to up our and Oaktree partners the confidence existing the our facility excellent enhance pushed facility We a manager. returns to their OCSL to new our support XXXX. our These credit in attractive to balance opportunities. also shape improvements OSIX Altogether, consolidated investment in delivering capitalize ability further shareholders. strong puts years acquired continue funding and strengthen X options sheet from Citibank a our We

the selected I behalf first of to along congratulate turn on beginning I call in Bob of to Armen. team, over Co-CEO him on deserved as the XXXX. calendar wanted O’Leary, with Armen, Before of quarter Oaktree the being Well

Armen Panossian

current in responded Thanks, day, appreciated. Much a to inflation rate hand, has the Good complex cycle landscape. presents most Matt. The headline XX everyone. years. market one On aggressive environment hiking

stable. rapid excludes partially to economic Meanwhile, fiscal of can U.S. attributed energy and prices, which that and policy the the this more are resilience proven has unemployment food control. buoyed be Against relatively has inflation, core to economy. rate government’s challenging backdrop increases, However, the least spending both aggressive numbers consumer at

near-term, begun a real and Such over would borrowers if impact higher recession lenders public become rates in have higher concessions see the flow. cash of does rates. during create in and we the put as elevated zero rate rallied or materialize for easy the If from equities, to and investors near place to have levered to of would such risk, markets default even remain a not structures In from several levered lead rates the And might last weeks. the does be a condition likely inflation exuberant the era additional equity that assets, owners. scenario seek estate longer. base among money free occur, direction recession capital highly the have trend would interest companies right elevated not sensitive have injections continues only This first. of Many recently

OCSL, negotiate history benefiting provided limited returns these well to materializing over helping new and of consider and additional excellent them advance for long-term. and availability leverage At Combined that in are As risks OSIX our noted volatility deals a structure believe with the investing, withstand portfolios our the flexibility. an capitalize who opportunities. become risk deals Oaktree positioned and result, downside times, opportunistic of important and adjusted as well our protection with Oaktree, the we long financial we of generate that may merger provide Matt with team’s scale, managers of like at platform to power risk timely capital us

turning to of fair was underscoring the in at close Now our capital top well invested secured emphasis the across June structure. with billion XX% first our the overall portfolio diversified portfolio. was portfolio loans, XXX quarter, loans of on XX% senior At value with companies. at of the the being $X.X representing lien the

our weather more EBITDA market in We continue portfolio diversified on as on are was trailing positioned The XX downturns coverage and larger, X.Xx. steady To average based XX-month companies portfolio to better that weighted was million interest turbulence. to $XXX overall well end, emphasize at company X.Xx, median that June leverage performance was leverage below levels. in approximately businesses portfolio’s of investing middle-market

our two the activity, new over new of representative were Turning and $XXX from now would million X investment like X existing examples portfolio to to I spread quarter. origination commitments quarter. the highlight companies our in

a planning First, the an Oaktree toys America & screen $XXX and and financing loan total allocated credit resulted several sponsor, expanded play originally the deal known the SOFR Oaktree and first $XX amend led public creativity, solutions. and offered to million This has financing facility. broadly retailers Europe, flexible consisting reduce and children’s Oaktree patterns in approached million encourage classic from to popular direct connection. was for loans market sells an who lien time, it Doug, promote educational and North priced increasingly free mission. Melissa XXX. led which to reimagining imagination was OCSL lending The company’s syndicated term million $XX.X into revolving of in play in social existing toys to transaction at in and plus

steel and commitment aluminum, to larger $XX This refinance oil diversified zinc that company a raise India-based industries. favorably was looking spans and originated and lien first ore million carried rate copper, priced loan Vedanta downside of was capital near-term. to Oaktree million with and mature as a across iron $XXX resources to loan part fixed set in gas, Group, and OCSL protections. The was XX% allocated presence Its Second, debt strong company. the and power, the to an a

a Leads, services, the a position quality, manager later position is this small value $XXX,XXX the provides maturing quarter, year. Turning one All lead we involved we which fair to to investments is prior a non-accrual of moved non-core other that and immaterial from three inherited Web during insurance very credit with

is it was exploring felt the assets, possible to it the prudent options, company including of While sale non-accrual we its of at some on all place or time. this

to it of and as its that over assets been company loan. orderly an value expect the of and repaid therapies that to commercialization The original XX, million May, uncorrelated the It company other To and In remaining of the on investment our filed non-accrual Chapter just treatment has that related OCSL June of amount development X% of value, an the been biopharmaceutical at and fair totaled an non-accruals Today, near-term. in of pay-down and XX portfolio the end, in position fair Altogether, debt since $X.X a we new end, to time to $XX new million facilitate the received selling roughly XXXX. cancer million. made X.X% is many novel we of XX% the has quarter funded respectively. assets, sub-divisions additional $X.X has in the which represented we and conditions. pay-down Athenex, of discovery, conclude for wind sale dedicated down and cost

to expect solid at each paired and fiscal of in outcomes across arrive into the of XXXX Importantly, shareholders. cycles, various on our next shape. the great in overall close OCSL experience our successful our is platform, shape power of In Oaktree and out non-accruals, the we move places year. to portfolio behalf these increased scale summary, With with

our I turn Chris will discuss more call to over results financial detail. the in Now, to

Chris McKown

we consistently again Armen. that performance, strong to have financial continues you, OCSL and Thank demonstrated this quarter. deliver

by merger, million the quarter acquired rates third company’s floating the expenses, fees incentive per basis on debt with dollar $XX.X on from the consistent were and adjusted a investment due income which base net the as The fees. count share and assets the $XX.X a the per the OSIX. with of impact higher portfolio partially of of in lower quarter, expense, second quarter and the share, of full offset interest $X.XX increase first higher rate management higher income earned operating interest was driven by primarily in million the $X.XX or result reported on merger to we up For share

$X.X quarter the incentive X quarter. expenses $XX.X merger. up the lower of company’s increasing Part third the expense rates fees $X.X acquired higher partially floating increase resulting Further including in for was on average million, from increase benefit from primarily to merger rate million OSIX income the interest a higher fees remains as and $X.X the OSIX general million the the higher OCSL increase increase assets professional first offset $X.X by full the liabilities base mainly quarter from was contributing synergies sensitivity, during expenses, in and With rate resulting in to respect well to interest of of realized sequentially. The impact well driven These an investment million the rising situated due of administrative borrowings Net fees, to million interest $X.X the management outstanding. million net from as were further environment. the rate of adjusted the by totaled

quarter our floating end, at in rate fair value XX% of As was portfolio debt of investments.

earnings strong Matt the by noted. the again higher were driven as in rates quarter base Our third

it our net continues to our within end to at X.XXx moving Now the sheet. consistent quarter of and with ratio of end OCSL’s X.Xx X.XXx. was range March the to targeted be leverage quarter balance

be rates. including prior ample impact capacity XX dry funding were $X.X June commitments, and $XXX of from remaining on interest met million end, debt that of our of interest portfolio meet due to of million $XX amount our undrawn needs, eligible of from our to swap must Unsecured total quarter. Unfunded interest X.X%, with represented be million, total whereas had is credit to At unfunded X.X% total facilities. $XXX end ventures the at was commitments modestly immediately, of approximately agreement, liquidity we a to weighted approximately of rate powder debt the the rate subject million be with $XXX up debt average quarter drawn. higher milestones on million quarter March million, before XX% funds to certain effect As joint the outstanding at drawn excluding and $XXX down XX, had can companies cash including by

quarter, are its size and the syndicated extended $X.X and With to There years matures respect Citibank, margin. the an X $XXX to million that SPV the quarter, facilities into in credit our during billion change new OCSL entering in into syndicate. facility facilities amendment facility Also, credit among XX no by maturity now we OSIX with of facility things other billion lenders from XXXX June increased to a with consolidated entered the the during we in $X.X our to XXXX. the the that

the joint $X.X up for the exceeding from in companies million interest continued second our a income to down of Kemper rates quarter, rising of rate exit new last a assets of cash generated quarter quarter, at ventures. secured in JV result quarter in senior interest floating Shifting $XXX invested impact strong JV $X.X OCSL million the of as to the performance in The the two result on portfolio’s primarily million investments. At XX as from originations. end of $XXX million loans

end, senior dividend. the quarter. X.Xx quarter down leverage XX, of Leverage Glick note We Glick in XX XX. The March down also the end, OCSL principal a we the loans during These had was assets prior $XXX the at million $X.X at received million the JV subordinated as million consisted was consistent JV of times of at and June interest received secured from at quarter quarter. dividend and the in from on $XXX second X.Xx JV JV at payments X.Xx million with of $X.X to companies, quarter

that our to positions In as fiscal balance our of summary, results. the we sheet believe well with financial continue pleased remainder year. we’re very And the for strong

Now I turn remarks. call the closing for Matt back to will some

Matt Pendo

you, Thank Chris.

positioned enabled delivering income us XX.X%. on that ORE believe annualized over we strong growth generate the the well Consistent are the forward. very results for of going an return investment with Our years, strong in net quarter, financial adjusted pleased with to several prior our quarter the earnings to past continue OCSL and remains

First, environment. prevailing for situated we believe rate higher we interest are the well

our July margin. potential rate investment with of the impact we in expect net interest in rate floating assets, positively in our Chris hike As noted base will XX% earlier, that future increases portfolio rates

We also ROE ventures. continue at generated joint to is our benefit from higher

credit quarter, third impacts the over rate quality and During XX.X% both ventures of strong to ROEs delivered joint positive the rising due environment. from

our our earlier, noted resulting synergies value the merger from we will As expect for shareholders. substantial and long-term OSIX returns generate the that support

strength In conclusion, we in continued in very are ongoing our results pleased with the momentum. our

Our excellent our but underwriting we diverse solid our expertise, strong remainder extensive on balance attractive and portfolio liquidity, sheet investment position portfolio environment. relationships that believe of shape With this volatile healthy, is favorably in for are disciplined year. us financial and robust and to capitalize and the we the fiscal

always, and interest for the today thank joining you OCSL. As on we continued your in call for us

take that, happy line. please With the we’re to your Operator, open questions.

Operator

[Operator Erik, comes question from go you. first Group. Hovde from Instructions] Erik ahead. Our please Thank Zwick

Erik Zwick

this next pipeline opportunities curious at new to you. might had are am Thank similar you strong – strong a point. the very for commitments, I I morning. in wanted Good just seeing then first terms of quarter you forward. what And so start that if quarter the mean or going

Armen Panossian

has Hi, in quarter you the for quarter not originations a terms in that the three. in what been quarter do now Eric, two have least a if it’s strong been see Armen. of Yes, originations, or at represents pipeline it

a probably quarter, be non-sponsored has considering hit rates well so of of the a investment of non-sponsored fact that ended say transactions little much elevated actual pause that bit And opportunities we’re next a a as so quarter, in is speaking, cost have given button of M&A a lag of have being borrowing, there volume, will September that, decline as a terms lighter, by that or you well. quarter originations XX, spreads a any in little would bit and just the base risen in caused bit the September particular the the widened, I bit as generally little see

or So little to bit quarter be over am expected a lighter I next the so.

Erik Zwick

you a focus number you And more That’s of kind typically defensive conservative in but Armen, I look kind and comments, the helpful. then higher to risk. have longer portfolio, elevated broad on the know can your just mentioned and across for sectors. of environment opportunity default Thanks. create of that rate try And you prepared

So of I’m at play concern is too to point that out? this any point, curious, signs it seeing at Or weakness how you early see of any in kind might particular sectors? are this or still

Armen Panossian

It’s a good question.

the wouldn’t experienced alarm we’re are, COVID say But benefit their impact early I in some have at certainly, the would So that we inflationary companies I bells that moment. didn’t huge in say, most from the costs. seeing are stresses, of stress, signs acute and

their So healthcare bit use companies seeing showing are in are, the are borrower technology stress than and becoming think, cashflow working stress gone cash some capital I they say neutral, an lot services, little a flow some on services, transactions companies flow the that assumption older generation think I access cash average away because are a on the would of of are actually more potential, I healthcare technology having has vintage generating bit. or a of focusing to markets

likely companies And I are versus in really sector specific is so well. stress the or bit see it to more to probably trend. think as a technology early net-net tease But an industry out borrower you average some oriented

Erik Zwick

my color. for questions great That’s today. taking Thanks

Operator

question Melissa Melissa, ahead. a we from go now And Wedel please JPMorgan. have from

Melissa Wedel

Thanks taking today. my for questions Good morning.

of later? on just portfolio, new the in did more see specifically, activity guess was capital I the work to anything curious, the new timing the put quarter? repayments I during up you and idiosyncratic of quarter in earlier kind deployments Following was repayments around there versus

Armen Panossian

way there any discernible think trend Melissa, terms timing. Hi, don’t it’s Armen, that of I again. was in that

opportunistic were that if done they hard a we a a were take group month, specialty in originating they just in quarter, partnership throughout in longer or active week fairly closed to the certain think predict document. it’s our certain loans that with I credit couple had to we

I was And that so trend of any that say in wouldn’t sort there regard.

Melissa Wedel

were three the Okay, portfolio. on do the indicated the about resolutions as both I well. I with previous non-accrual June I that hoping to And those detail near-term new that I non-accruals regard already appreciate recall, was you two you those on on as into the that somewhat quarter, talked companies in that. you’d you appreciate to last to believe, expected that of headed companies provided back circle the quarter,

your if curious have that’s you. still Just or evolved. outlook, things Thank

Armen Panossian

Thanks.

real is a SiOX. the two, other one Francisco estate one Avery, the So market. is San the was asset Avery in called

– the marketer the work types developer they developer, all skilled are with sponsor estate are we real to We very of there continue and of assets.

And best so highest good we developer to our our on units on prices that at attachment to an news are use load. creative think is and point The have the to is their sell that sell the attachment continuing to point continue – relative a units.

to wouldn’t not we’re certainly going the it But do get of But as steady a to a capital I to just the not back. don’t surprised of the we’re it’s do units little bit – think they all of a anytime that’s bit putting liquidation. be remaining an goes. kind bulk it will capital get rather So little back the it’s a if of take I take quickly did sale. longer, bulk sale going think soon. on orderly time I to And pressure

probably bankruptcy the situation to In case And its we the the quarter from exit at end the to as fiscal of it for update. year, going is have report of company bankruptcy more an very soon. of to confirmation ongoing an the that the will hearing next SiOX, end at had is emergence

changes the pendency operational the heavily of We have with very business been the case. during for involved

– business. join and our company, and we strategic a grow. of also the help as happy are the help are the to to in terms with strategic on at the in like that really business. grow not of infusions property in And We to to capabilities that would exposure as mindset well especially is of investors to but engage grow financial Oaktree have this company There interest investors we’re lot equity engaging and the investors the intellectual equity partners in

would well in take least path few thick say the bankruptcy resolution think complete cautiously over to many it help of few to we the to a the about the situation. resolution are are – take at the their on business have the equity with we operational course a it side weeks, the will engaging a as is I of optimistic a But coming it as the kind next here. quarters investors of to bankruptcy clear weeks. and that the next level – the But not, So business of I I position as to in emerges changes think

only bankruptcy, for the the really the think going is success it quickly, control there of we moment I setting bankruptcy near-term. success the And is from hand So it update quick we or not in very that is that emerge at at are up but in to business. are

Melissa Wedel

Got it. Thank you, Armen.

Operator

a coming from have Bryce Rowe [Operator from Instructions] go ahead. We question B. please Bryce, Riley.

Bryce Rowe

JVs, Thank maybe you the the activity somewhat portfolios some start on of here on in morning. sell repayment of their and Wanted and so terms then the quarter of also to elevated repayment of then portfolios JVs outstanding. the this Good activity the much.

trying market more both that active sheet than if if kind of a in with So might it’s terms balance of intentional with JV be exit not? and the the to own that’s curious portfolios more,

Matt Stewart

Yes, the were during JVs, quarter. better sellers market and hi, balance the as both loan across on rally say I it’s Matt syndicated the sheet Stewart. we the would

was If you us that selling. actively a look at third our about sheet, on of repayment balance activity

sellers Some came we year of were better secondary market the last along end in the the with the merger, of. that OSIX positions that of purchased at or we

strength the out the monitor of But were the positions. JV to we broadly the have So, the our we the sheet, again, in liquid of anticipation been well, of And And in themes some rotating of continue just those as primary we balance JVs. we market. market in loan loans pipeline. did then syndicated selling given for positions on private out for similar then

Bryce Rowe

pretty well exhausted. that, continued be may there are Matt, opportunities or to And do Okay.

Matt Pendo

liquid previously. the back. merger, of balance from as years We a obviously, few the still was some the our rotation as positions through merger not it just our of But is in portfolio, OSI and opportunities worked OSIX there plentiful most

Bryce Rowe

shifting obviously maybe Alright. curious, layer thinking more facilities, some Okay. unsecured And at how active notes. the to this with kind is stock amendments that, any ATM, some opportunity the to of just use unsecured in Maybe then a with you capital the to follow-up the are now over that structure, credit of NAV? appetite point to your prices about

Matt Pendo

unsecured where So, market. we watching capital are still our We feel the comfortable structure is today.

As by you ‘XX ‘XX. both secured or mentioned, over out ‘XX of X are we pushed ‘XX, our maturities facilities near-term years, a and little and now

XX% We point. are about unsecured at this

some So, the ago. we points, a quarters about do were continue market, about are in to few going versus the XXX tightened you at But watch comfortable we that where market prints basis if we feel are today. look where recent to it’s of we

so if we is Our will side, for and market runway. we then next the continue maturity is had But years ATM see opportunities. evaluate on February of there to ATM X.X now. about we have any But XXXX, place that have the in significant

year. We little have it last accessed very

trades see We is watch our will ROE what future that. looks And we opportunities will for like. in there. there any the And pipeline continue to how if stock the and

Bryce Rowe

Got it.

taking questions. Thanks the Okay. Thanks. for

Operator

Ryan, have Ryan We Lynch a proceed. from KBW. please from question

Ryan Lynch

morning. Good Hey.

expecting. to know expect lower I forward, we or or to had operating kind some is good you were is anything that had a that should expected a expected question in going that bit higher? rate about there that anything is kind was we of were that of that non-interest of little there other quarters run make pretty million quarter. expenses That a was this little that synergies, just bit lower $X.X First be than I

Chris McKown

for here. realize Chris Thanks from of we the to some OSIX the the happy very Hey question. merger. Yes, Ryan, McKown were synergies

quarter-out We to takes. is the puts we and landed puts on where are decent operating have But I this counts quarter do quarter-in to going and takes a some expenses. rate, that think again run with respect and always

some nature were that we contributed items that quarter synergies, the also the have kind to addition non-recurring In to of did decline. last

Ryan Lynch

non-accruals your outside guys had a this have requests in have to year portfolio then amendment relative you received you many quarter. it, like on on basis, borrowers a requests activity maybe the guys And ago? of you receiving that been Have from would normal put call

Matt Pendo

Yes.

not think it’s that It’s been, been of I so or now, really an some some happen it’s in would those it’s quiet say, really I light I at been pretty would wasn’t consistent far. been so conversations expect it front. on what the But broadly. uptick. XXXX XXXX, point to for with markets pretty

Ryan Lynch

Okay. final really have question, but kind question level I a of had, higher one insights And then guys just that had you the good on credit markets.

financials? higher default. higher the in some we business, rates mentioned not a weakness their am going feel have starting lot that base kind just put I probably take rates sort It’s that of in to borrowers probably now with higher combination are base just loan of in into to going that borrowers on are You the effect base curious, of have heard rates base to higher rates. of the past

increase defaults? going base forward? to high? uneven your pretty enough the sort economy expect this resilient? I and expecting kind resilient. has has specifically, but of so the because am So, curious, of you maybe the defaults certain stay base been meaningful just then a been does effective it’s there and think been broadly stay strong Now, in Do are with rates sort meaningfully of portfolio do Are rates alone you you in increase areas, If economy if

Matt Pendo

to in you public And averages. over that XXXX. wall, an start rate maturities until you defaults wave in from of period are it’s the in loan It predict. in by hard, base the to default mean the heavy of rates the result points I get will more a the of think see you to basis increase maturity closer defaults. big in should of that XXX XXXX it’s of time, a hard spike result are But I Yes. or to you in very going historical right, a probably period a time, an couple not which extended over markets, seeing

perspective. The You maturity a you don’t time, very issue. problematic companies, number cycle, a being big see and And elevated bubble, about are base if level is will distress are XXXX. these extended into if for rates will maybe equity growing. asset what see capital really invest that, going a find of are will deflation, then rates in heavy decide being is of from businesses, period companies will this see you some you find you this maturity base need owners structure comment they to albeit asset underwater they a an but as not additional to Potentially, defaults

highly are is then over is capital XX to to the off medium for survive they when next will X you So, crunch to well, in that in for assets, months structures really occur hard waivers. of have over a of requests pandemic. the It’s profit for I for the guess the place case a the of very to interest, probably of long-term, in say to as outlook, the would or don’t nominal in combination going the and put a the positive able impact for grow nominal the some maybe to markets levered able picking scenario. would some profitability, requests the factors to bode access this of capital better those investment level some defaults, I under that that that longer amendments see And higher see the rates before base medium-term, have capital dollars if businesses to are months

see X some year decisions years this to owners those be I key we that about businesses. going pretty asset support is think next or when

Ryan Lynch

Thanks. Understood. all Okay. That’s me. for

Operator

Jefferies. a have Joseph question we from please And from ahead. Kyle, go Kyle

Kyle Joseph

been to income was missed, lighter nuance? nature just there then any Thanks I like anything, deployments earnings it of But there anything just has kind me a fee or little guys. active my the was some looks was would than there? and many repayments. an Was questions. morning you quarter it highlight too repayments this both the of if I morning. of Good Apologies taking other Hey. expecting, for it of And

Matt Stewart

have too significant run for much call mean there, loans report vintage protection Stewart. got Matt protection had our the didn’t repayments or Not it’s call some to older we of out. that Hi, I

the Armen’s much is either, point not item. amendment much to report there around to that So, to on not during line so weren’t report quarter the there really and fees amendment activity, significant

Kyle Joseph

Got to it. or back Matt And Armen then turning Pendo.

potential headlines in kind what’s sector an of thoughts in on is and that particular? requirements your regional OCSL and fallout you big going of terms get banks to rumors opportunity and capital the and for of how banks want with the from think at increasing Just about

Armen Panossian

I going to the a I do Matt very Yes. attractive In will mean gives feel opportunity it that It free to with partner not. I generally other an there equity in to opportunity Armen, that the is us whether those ways, portfolios. in present it’s situations I speaking, banks in required finally, and And capital jump or us some opportunity. add. think then buy to think gives increase is and

possible the I with deals think seeing the the scrutiny with we already through of an we partnership or of that from aperture the level are do, higher expansion of regulators, with bank. in without kind may play the it

we or of to to increase of I there their terms just But deal it’s as to early an I in going that as at with origination. a partner price flow, in think is opportunities a work an out. also see So, figuring assets forward think offtaker of with them, the I but are beginning think some banks days

Matt Pendo

Kyle. Matt. Matt Yes. It’s It’s Pendo,

well, we is that echo the lot lot There and offer are in. I to have no do partner And are think products capital But question and increase. think thoughtfully. the not will and only be I do just we interested with a very Armen’s said, can you offer from we continue being they increasing we days. going think to execute don’t is regulatory it’s early charges bank’s that a opportunity. I and and a transactions, oversight, to perspective, of comments, there can it That of banks, quickly, we services really capital, structure big

I – together only kind going think and and and capital increase kind So, been going to combining I think it’s while. of the doing and And their banks trend it’s a with footprint. things our on sales partnering discussions of around has been force for

it’s it to will a take while play think well, I – out.

to going a positive. be it’s think I

Kyle Joseph

for Thanks answering very question. my Got much it.

Operator

this questions no further time. we And have at

turn will So, back word to Mr. Mosticchio. the I

Michael Mosticchio

earnings for dialing website X-XXX-XXX-XXXX you. on on access Thank of Thanks replay joining approximately by code or today’s Lisa beginning OCSL’s XXXXXXX of We rest or this for section, replay after non-U.S. U.S. the the callers will and the broadcast. XXX-XXX-XXXX Investors you with enjoy for available callers one hour us hope all summer. XX conference you the for in be days thank A call. call this

Operator

you Thank conference. this today’s presentation. concludes attending for this And

disconnect. now may You

Oaktree Specialty Lending (OCSL) 3 Aug 232023 Q3 Earnings call transcript