OCSL - Earnings call transcript Q1 2025 | Oaktree Specialty Lending Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

Dane Kleven

thank for and our operator, you, you joining all call. Thank Specialty your support appreciate Lending of We Oaktree Corporation. the our we and which on accompanying morning, slide section This issued presentation, can our be at oaktreespecialtylending.com. website earnings release Investors of accessed to the our posted others the information We encourage and review investors, media on website.

are and the Chris Officer; Executive Matt President; Panossian, and Officer Treasurer. Khanna, and us on Armen Raghav Investment Joining Co-Chief Chief Co-Chief Officer Financial McKown, call today Chief Investment Officer; Pendo,

to remind include want financial that comments our Before views call I we to and you on today's operating forward-looking current begin, performance. results reflecting statements our with respect future

Our any that you Oaktree to an or Please of any these to I'd an further detail. actual or nothing statements. refer implied or to interest to those on statements. We undertake offer our a factors revise in like no for offer differ results call solicitation of of materially constitutes duty purchase SEC from sell discussion forward-looking expressed also remind in update forward-looking the to filings could a fund. this an

interruption, clients. community. serving to Before in and recovery our them tragic impact Despite caused and and Angeles us had we we've of we to and our safety ensure I to results, employees, these events, Oaktree the our In the to on by resources of We're our Los fires deployed founding the the Angeles, community. continue since our heartbroken running Oaktree's our the by to operations circumstances, they've as homes challenging recent broader the as the to for well-being turn long without devastation kept to a XXXX. response address will and our to fires allowing want challenging these road headquarters variety in well Los continue support

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

Mathew Pendo

best to want today. took some position for by you begin everyone, actions OCSL discussing for and to I Dane. joining of thank Welcome, success. the quarter the future Thanks, we us strategic call this

February X, value price premium share, XXXX. of million OCSL, of and $XXX to net a This resulted X% asset newly January a price stock nearly on per First, from represents NAV. which XX, to the issued Oaktree is at OCSL's common as purchased increase to equal a $XX.XX of stock in XX%

of October the over consider look-back by rolling commences incentive this return and XXXX, million build of fee amended structure, incentive cap, fiscal effective a permanently X, return provision also will we time new year-end. XXXX a total back company's incentive are Second, a we and instituting Under calculation waiving known hurdle quarter. $X.X our capital includes structure, our that total a The XX-quarter X to fee hurdle, in losses. as gains Part Part X fee to fees the look the

amended to policy we supplemental include dividend a dividend base a our Third, and dividend.

to $X.XX stockholders distributions both XXXX, base the quarter, that as to NII Board adjusted per Board's share, quarterly XX, per distribution We by are $X.XX cash upcoming $X.XX amount of will the plus a of dividend record share, a subject expect generally the to which supplemental approval. March of XX% exceeds equal XXXX. of approximately be the base the For which March on in supplemental of dividend payable declared our per share, of XX,

Is the within to powder us capitalize shaping pipeline. for we year leverage to OCSL active than for raise more together, a our on up of opportunities actions attractive flow equity and associated success. and give portfolio. base the equity XXXX the deal capital, XXXX impact the plus dry will diversify and benefits The our growing help grow bring position several be further the these future Taken believe will asset

fees X and waived Regarding the the quarters, fee the with is new shareholders amended incentive the market clarity. past over fee structure providing more we voluntarily structure, have permanent, although

dividend a to dividend spreads. the fluctuations policy we that establishes amid the rates stable change through believe base in and Lastly, market is cycles sustainable

addition, the grow help our approach to dividend going forward. supplemental us expect to we In NAV

was now $X.XX Turning financial million share $X.XX down $XX prior quarter, fiscal the in for to the or share slightly results. Adjusted NII first from per per quarter.

value $XX.XX last declined Our to asset $XX.XX net share per from quarter.

call the I'll to Armen market our and now turn on to portfolio over environment. details provide more the

Armen Panossian

Thanks, Matt, everyone. hello, and

to on the Before my I Matt the portfolio the and cover wanted on thoughts add market, outlook outlined. our I changes

part is credit critical focus platform private our OCSL franchise. a is of Our a core and for Oaktree,

recent Oaktree growth at over believe price and performance OCSL. today laid firmly to commitment for equity of challenged significant the premium to success. We committed the position signal OCSL is believe that acknowledge clear the we I a we a out actions further quarters, we the our remain our to by demonstrate While support. purchase market

our With that the our said, market I'll current before overview quarter addressing view in on with begin an portfolio of conditions. activity

debt with $X.X of value across XXXX, XXX December at as average our well weighted diversified remains billion healthy remains yield portfolio XX.X%. Our fair investments the on companies XX, of invested and

million XX% of We During new companies the now in and first focused in line ago. of structure. capital a invest portfolio portfolio. in our further up portfolio investing in to the remain year the lien larger our with quarter, X our top strong existing sectors diversify companies, from at first on XX% position, we that X and strategy invested $XXX is

remain companies. leverage quarter, quarter, of was leverage for median The $XXX the increased the our with coverage million, base portfolio environment the slightly X.Xx, of ratio companies first median the ratios companies our the portfolio companies and the EBITDA for in performing weighted a of well was previous X.Xx. but portfolio In rates. assuming from below majority market current middle current are The our average interest average vast

quarter, quality the nonaccrual first and was of investment credit the address from In portfolio. now restructured removed I'll the status. X

nonaccrual investment on However, we classified X as new write-downs took further investments. and other

at status from toxicology which unchanged quarter. end testing first company list nonaccrual the Dominion is at the a quarter term value at nonaccrual hold were investments cost, X.X% and relatively portfolio on prior addition the loan the to in The Diagnostics, lien revolver. result, clinical a a quarter a and of As X.X% we this new fair

Although interest cash place to liquidity EBITDA and quarter looking so on pay nonaccrual. has grow in it was company to faces December we the challenges continued to ahead, and struggled the it prudent felt

We are management these address matters. working closely with to

loan Dialyze not lien Although placed new for we first our to nonaccrual. the nonaccrual list, on term

to As a skilled directly patients facilities. nursing hemodialysis provide reminder, in Dialyze services

first warrants. investment and Our included Dialyze original term in lien a loan

received ongoing company's needs originally term the cost. mezzanine was improved. of placed the as situation nonaccrual lien company, we In connection with this amendment forecasted. mezzanine to we activity loans a loan, has loan the taking loan put profitability on summer, small incremental plans achieve amounts materially given smaller on term X on the cash the last longer relatively and the not We funding at And first than nonaccrual. cash Unfortunately,

discussions We are the in and company are ongoing with evaluating options. all

nonaccrual, Along down with are struggling the write-downs handful we on These underperforming concentrated of a further assets. wrote investments. in several investments

We continue a to taking valuation. monitor these their names closely to conservative while approach

list. some restructured revenue care November in with I which I removed in of the FinThrive, software cash FinThrive their year. health positive nonaccrual of is discussion clients begin last helps was the to developments the that Next, was a company on manage the and successfully will from portfolio. flow, want highlight and

its credit raised new and balance its company the capital, revolving extended transaction, maturity the the of facility part delevered As of sheet.

addition, with names nonaccrual. other make on continue to In we progress several

unit. remained For example, XXXX, sales condo trends Leads, a Web penthouse successfully have EBITDA including All Avery and positive in for additional closed

positive trends these optimistic companies continue in year. are We new into will these the portfolio

environment. market Turning of to our the view

back Fed rates those by elevated with borrowers, in beginning the inflation rates remain and subside, with levered last of ultra-low to are levels. rates may quarter challenge rates for a do the in balance XXXX, sheets. especially reduce interest we believe to basis lowered Although not XXXX points XX many further Even interest going

and the spreads or believe to Competition to stabilizing seem be have drove expected private lower, continued which increase repriced the credit syndicated private as between the compression fix the broadly equity many seen more During contributed in should a now imbalance to have already environment first spreads borrowers we M&A flow to years. refinanced regulatory This opportunities and deal that quarter, the competitive for spread increased and an in space, demand their increase We fourth debt. credit IPOs quarter. tighten favorable easing private companies the loans and help activity in lenders over ahead. has supply between recent will and fiscal years pressure compared

also to on Conditions in is outlook positive of improving. pipeline We the recovering with a same likely for between declining XXXX. buyers create $X in are uptick gaps in sitting combined rates, are sector of along equity suggest private volume for with strong these powder. dry firms all trillion a factors dealmaking believe time, XXXX. over sellers deal the The valuation and At

details to now I'll for turn share the quarter. on Raghav call our the over to originations

Raghav Khanna

Thanks, and everyone. hello, call you to It's a join on pleasure the today. Armen,

first investment the Turning to activity our quarter. for

average As in commitments a slight of rates. move Armen of the originated reference weighted given mentioned, yield quarter, we million from a new with X.X%, $XXX decline investment last lower

competitive yields We at reflect more are these environment. today's of level healthy even lower encouraged by that origination the activity still

in portfolio the fiscal the of favorable underwriting which of quality relative our activity reducing to This selective We quarter first across the paydowns take also and companies platform level high exits up Oaktree opportunities These nonsponsored see in generated or investments. more leverage, across This fourth million, allows management primarily the companies undervalued credits. and many to of of continue of portfolio the market. underwriting business to us broader publicly and success a the quarter, that the selling reflect million the paydowns standards meet from portfolio, plans, underscores refinancing our sales traded reflecting compelling at and Paydowns, include in their executing approach terms, investment alongside higher sponsor $XXX our new a and businesses. $XXX value their level debt process. refinancing strength

and In addition reflect also positions credit the that prices strength to certain believe recent paydowns, liquid the we advantage markets sold value. at we of in significant took

in discuss hotel countries. with audiovisual some world Starting quarter. leader corporate Encore around by and the chains Next, a I more XX is provider Blackstone. and venues the production many contracts the Encore, global X,XXX event will in of with owned a has largest than for noteworthy across services preferred investments

credit term SOFR facility. this And loan, the deal. the revolving $XXX loan capital co-lead $XX the credit improve to a revolving refinancing and billion of and deal, this Oaktree existing of $X.X coupon $X.X a billion structure. provided and the $XXX $XX of facility. OCSL which million in for X% million included arranger a of was Oaktree book which participated million has allocated runner was plus million Oaktree term

revolving large credit of and medical an an plus credit Next, dental financing revolving outsourced a $XX $XX term facility. is a $XXX facility Oaktree delayed The of X.XX%, of investment facility. million acquisition Technologies. consumable $XX the million allocated OEMs. was also term for loan SOFR This company and term Partners' has Technologies. million term provided million Capital the loan, million we TEAM loan $XX a term made delayed coupon draw The in OCSL $XX products Arlington loan draw a manufacturer of million nondiscretionary of of supported of $XX This million consists deal. of and loan, and the this TEAM

term plus top manage enterprise was was marketing software and credit term X%, revolving loan and a space large million a financing credit market facility. origination $XXX SOFR as to includes a this which well Optimizely, provided as $XXX in of to coupon websites, experience This $XX OCSL deal. revolving refinancing is allocated Another of million the quarter and $XXX a customers cloud-based million the of campaigns. digital a Oaktree $XX.X of million middle million the provides notable content the And for with loan that facility. for player

a transactions the participate and sourcing Oaktree's our deal power ability advantage of which in we platform reflect believe larger deals, competitive to These is today.

attractive XXXX. flow equity to As opportunities. Oaktree, provided with these the participate Armen we optimistic are just are additional by we positioned about into And continued well deal mentioned, in

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

Christopher McKown

nonaccrual X down our quarter. income, decrease Raghav. partially In $XX.X and you, share, quarter status. quarter. the primarily management Adjusted in fees a driven in by the investment fee per reduced in investment due per of quarter, on impact Part and XXXX, XX, total expense, declined the quarter income. resulted million million interest from the ending rates by $XX.X total $X.X $X.XX adjusted decrease slightly to decrease or net investment share Thank in prior a revenue, income a decline All investments or income fees compared $X in offset lower we million was first during the fiscal income primarily December reference a factors to interest nonrecurring in The million told, of reported million in prior these decrease $X.X and $X.XX incentive

was there in a Additionally, JV. largely reduction income, driven dividend Kemper $X.X million the by

$X.XX in a mentioned larger additional some in remarks nonrecurring quarterly income of provide see generally To more XX results my OID of prepayment investment I reflect per last our As our acceleration income. quarter, $X.XX the nonrecurring income, than nonrecurring benefited September composed on quarter. to generally exits, results context, we usual quarter neighborhood level December fees whereas successful is of and typical it from and

quarters and Our nonrecurring was respectively. the September about December $X.XX $X.XX, income for and

as X quarter, net waived that result of incentive a incentive Part prior driven to the million expenses in newly fee Net structure the from described. declined Matt decrease fees by fees, $X.X a of $X.X implemented million

saw on lower expense liabilities. floating $X.X decline rate a driven rates also reference We interest in million our by

to sheet. million, balance moving our outpaced funded ratio Now $XXX in our of slight OCSL's resulted quarter of the Prepayments $XXX which our from a end X.XXx quarter. of decline X.XXx, in newly last was sales million at and down leverage investments portfolio. size net

the rate represented As our including weighted last interest lower debt at of a the debt was of interest from of debt X.X%, had XX% Unsecured average billion from This on our rate is primarily up rate rates total quarter $X.XX quarter. total end, last agreements. of down December quarter, swap effect XX, reflecting interest floating and liabilities. outstanding

$XX dry our excluding undrawn credit of cash to of December commitments, approximately of plenty as of have investment with XX. liquidity capacity powder facilities We billion, $XXX including $XXX fund commitments, Unfunded million of $X.X million were on and the funds immediately, of is approximately portfolio to drawn can subject $XXX as be million can before drawn. certain be those the million remaining joint $XXX related ventures, companies million, meeting to which the milestones

which and purchasing shares of advantage $XXX by liquidity believe position common take active well we bolstered what issued power help will environment the to be the diversify in deal XXXX. will was an X, of February further Our newly calendar and flow million portfolio us on year

note also -- X.Xx our our leverage unchanged at would X.XXx. I to remains leverage target ratio that

we little power. And $XXX expect so we to as generate issued additional a add million it newly leverage of the equity, purchasing over to

JVs million broadly syndicated Turning now to in of across XX currently spread investments, $XXX our portfolio joint primarily ventures. Together, loans hold the companies.

at JVs fiscal approximately During aggregate. which the were first quarter, ROE, the X.Xx, Leverage the again generated attractive in down from annualized JVs quarter. was the modestly XX% last

received from $XXX,XXX JV. Kemper the addition, In we dividend a

In new also first our originations. a closing, while we the portfolio in of generating progress solid strengthening quarter, healthy level made

deliver and OCSL we risk-adjusted our situations attractive shareholders to the market shareholder-friendly recovery. However, the our the over we portfolio current committed In with acknowledge and these the to we to believe current challenges implemented, remain environment navigate combination through and positioned working long-term. is to within maximizing well measures returns

today, our take now your line. Operator, the and participation questions. please We we'll on your open call appreciate

Operator

will [Operator with O'Shea Instructions] And come first the from Wells question Fargo Finian Securities.

Finian O'Shea

-- the equity the not $XXX First Any you that the until filing And investment. I the question to XX. future on quarter color plans from? million could agreed that for February says give where think sell that? on entity then came this

forward? the on the other in might more hand, that's continue plan or if you to add So going if

Mathew Pendo

Matt. Thanks, Fin, it's

a on just So sales standard regarding plan, the the lockup, that's standard a last point X-year lockup. just

have there's wouldn't purchases that provision. read than into anything this, when other a you I So normally, lockup like

a time that, for then it any or year. stock shareholder prevents beyond selling hasn't a OCSL OCSL has basically long in obviously, Oaktree sold and date. So to been for And next from the Oaktree

just read that it, provision. wouldn't much of I standard into other So part too than of kind lockup

some that color the the the And But attractive. was be the environment to environment. Raghav $XXX just Armen leverage with we're the of about little more investing and equity market combine just and powder kind that have environment dry significant more can market market kind really bit terms buying helpful of power terms that. deploy of talk could deployment felt in into of would million, pipeline. is In little a the we where given seeing We a on and opportunities

of And sense, GP that purchase it having I all equity additional for to power we us assets. lot XX% the Oaktree or clear a make at ton So we just buying to the XX looked purchase a just at kind gives it. the of X% way to the and around by at as NAV, liquidity thought sense made seem be January the of it want was NAV

Finian O'Shea

one maybe about heard talk larger language more your plain market change strategic think of that And on of it market participations? senior. better a extension with behind an We toward that why of Armen how more risk-adjusted groups' If helpful. push or direct sort more That's this credit ongoing the for as some you quarter should Okay. opportunity? senior as company, the that. the lending, and platform the that's of we in driving Can the

Armen Panossian

Thanks, Yes. Fin.

So or the kind change at a what we're in doing in writ strategic group. it's think the philosophy I firm or don't credit of large

We are have continue sector that focused. capabilities of sort to

invest to other a basis. life and on dedicated continue in in sectors sciences We

really and rapid of high in that However, sustained and high the first to continued things rates seeing. we're the think I SOFR with is relative other lending fairly single good that represents digits, increase double lien the low value rates, think sponsored into we digit sort it

picking think going the lien extra by first it. into there leaning really return worth usually So is don't we junior up because that

borrowers. X.X%, spreads are rather they something were like anyway. charge and XX% -- equity lending owned, you of other that? SOFR to that to we XX% why looked when implied than for XX% pay those X% above XX%. know borrowers the and equity was have or at did -- cost to XX% non-sponsor I'd when because or cost go my they is private pricing, the of XX%, XX% or rates XX%. frankly, And mean borrowing It's said, when returning same you than To borrowers lien or what, sponsors, junior overequitize would that's to that to XX%, X% first would X% that was Now was go

in in to borrowing. inadequacy of cost so them kind of hold some firm sort And that sponsor borrow the you or if want to it either usually company positioning, did at meant that to junior of caused the

really into we risk, lien So lower heavily it pushed because we that attractive first return. thought was

relative a in interesting basis, have on now an that more market. the So lending declined, X% we're down, will increase going lien XX%. risk-adjusted junior the volume, the sort we first we to saw seeing best goes in deal M&A return some opportunities of become spreads think to rates And are as

that And so XX% always or But junior there be XX% could the could be at to maybe interesting. quality XX% XX% of those situations some lien. to we're evaluating the versus opportunities first

as -- be meaningful now, a or very lien significant way lending percent lending teams the could the flow in on attractive in of potential relative other still pretty without additional flow And X-ish things we getting deal we in really increase first direct debt doing. nonsponsored junior terms flow, a for a to of potential returning of deal deal of is sort in

Operator

next will question with from Hurwit Jefferies. Our come Matthew

Matthew Hurwit

maturity the can about there? you're it, one. you month, but a missed I this That talk options upcoming debt Just maybe quick considering

Mathew Pendo

Sure. Sure.

February. end at at the maturity So looking And a really we options. we're of have our all of bond

between liquidity, on have have of billion liquidity $X we We plenty almost capacity our existing revolver. of --

market. the We unsecured OCSL equity frequent a facilities. been ABL and just issuer have have obviously raised. has We successful the in And

the to our take post So the through sense And markets liquidity of really of all to most But we'll and action, the course good at plenty look have in just facilities. -- and a various of opportunities earnings, a think, us kind of all sense. of we of I continue news, that. then take makes kind

the So a market make look environment and we'll at decision. just

Matthew Hurwit

management this level, Okay. the Great. you medium-term are could reset fee of company your point at dividend and with high and short-term then structure? just talk for what the Makes sense. sort And goals about

Armen Panossian

grow goal them Can of be credit to I to and cover It performing specific to It portfolio. about the general our feel base up. question, aren't goal you more -- diversify interest a think a But those bit the dividends convert terms specific a be nonaccrual mean, earning little into please have further dividend the in you in income comfortable -- is free I'll and assets of way. the take asset coupons and if our to general our and paying assets. I is BDC then equities is that follow and

the where So the that's in working as and base kind dividend comfortably the of help could would through summary mean, it's any troubled can. That And the think we kind as be will it. add I really as improve we've we -- and assets where dividend quickly cover both excess changed of reset it. of a dividend the efficiently why manner is we to lower NAV.

really into improve the troubled So to of decided once that, all out assets -- of tackle we and to some separate to assets. NAV, we from OCSL those at good these all of the stability dividend apart and and to but of the the block roll ability turn both continue changes improve to

questions that, them. specific take beyond you have we're happy to if So

Matthew Hurwit

-- that's of what looking No, Okay. sort for. was I

Operator

from question comes next Wedel JPMorgan. our Melissa And with

Melissa Wedel

the you're versus we and half of forward, going how a retain? is supplemental think the we better level pay earnings -- think can out Is than much of something you aiming the help more that? there about half to When excess little understand base should it us dividend bit or above

Mathew Pendo

Thanks for it's question. Melissa, Yes. half. I and half the kind of would Matt. assume

be dividend. paid a would XX% the income roughly in the So above of base supplemental

use I would XX%. So

Melissa Wedel

helpful. That's

quarter would just existing on of timing multiple Oaktree. we expecting from should there on of sort some And the cash sort at Okay. think interesting that. balances injection looking be -- then I period deployment equity for

couple being potentially of of there drag over quarters? a we So the of next should bit think cash

Raghav Khanna

can that. Melissa, take it's Raghav. I

both pipeline in strong into equity that side. we've well side private as raise, pretty public been anticipation a the on of have building as the do we So

it right, plus take think have, you're So I given the equity we associated quickly. we a deploy leverage pipeline the quarters. us couple will the new of But fairly can

Melissa Wedel

Okay.

so And just on the to you that's think that, but also pipeline, just a gross of on basis, when clarify? not

Raghav Khanna

Correct.

anticipated existing repayments of net on So portfolio. the

Operator

[Operator Instructions] investor. private Whitaker, Our next Mike from comes question

Mike Whitaker

I of your marketplace I'm announcement in in kind that And you was net I XX% back sure what available kind noticed that bought point, to reason as while reason obviously give for of asset a at, was there's at curious. that is? just or the value, a shares about discount. it's take that, but I curious

Mathew Pendo

Mike. Sure. market you roughly we into the time, great the at It's at XX the of January to that. and which question, at shares manager -- did purchased little a in as And And kind premium for rationale the a digging reiterating buying a was NAV, mentioned, versus and discount. the market Oaktree, just it XX% the the deeper the

continue invest great a is interesting to -- the opportunity, the the value the to to seeing. is best way to what super add and we're pipeline think in we -- OCSL way So environment current

investing doesn't And just the BDC, NAV, haven't our buy equity target. the so of just any -- to kind equity manager at we the in whereas in the asset we any if to market putting growth were or create leverage changed by

market, in We in the a OCSL. better that deploy diversification buying just and that against growth was asset, think create -- balance that So the sheet into manager in even more the if grow asset and and we buying -- on discount. assets equity it at was borrow than the can

action. was that behind So rationale the that

Armen Panossian

Matt in OCSL, BDC. we that's in felt behalf as in us is press support a for very Yes. it as OCSL made a of and our for thing Oaktree the And this scale sign that NAV of said, deploy environment. market at doing for sense And that's forward very comfortable of a on a versus to a -- We trading great discount attractive recognize to that at And us buying a for capital Armen. into support sign shareholders. that is as stock NAV NAV something to price really,

a shareholders, doing. and we So very comfortable felt something we it's for know thing positive very that's

Mike Whitaker

to positive And being discount? it buy a able wasn't as at as nearly it

Armen Panossian

doing dry positive it is And of sheet it than discount. than Well, OCSL shareholders, on a shares at Matt powder buy existing way for it's to said, from the rather this more other did puts as we buying the balance shareholders. it,

to the thing additional size grow -- for really shareholders. we good of also the deployment I a OCSL, deployment, the that's think want the So

So I it. think we did doubly it's good, the way

Mike Whitaker

Okay. I'll I shares I apologize, price it full understood and I didn't so, what bit -- understanding that on call bit, me area. you if have to the issued? I and shares there could the have smarter just to in call, just I would if accept But better me Is And you that in substantial in X investor talk announcement. pretty placements, drill I like I somebody have a on that make a at little And then OCSL to down a do I that sounded OCSL. earlier that. after that? get read more just so X the the of other those private on to and is, a question issued correctly, were

Mathew Pendo

Sure.

$XXX $XX.XX issued per premium at the Oaktree, which of of price. share, we net XX, XXXX shares the at million to manager, So asset a was to and OCSL January market value the at

Armen Panossian

about we're the a talking one part where of all is those Everything So Oaktree of same. bought... transaction are and single

Mike Whitaker

further. would just answer And of drill my time bit stupidity, became unusual and I I just to call don't down the up take doing think transaction, -- like but little to to kind on why I But on to the are a want here an That that? agree. it's that you -- you have

Dane Kleven

a can walk is this through Mike, Dane. this, after happily I'll we you call and it. give

Mike Whitaker

That super, you would Thank so much. be Dane.

Dane Kleven

a problem. Not

Operator

question And comes from Melissa with Wedel our next again, JPMorgan.

Melissa Wedel

there, back wanted of on including the the I unrealized. losses Should gains be realized the impact incentive I realized indicated to just the the any ] on foreign and I incorporating -- When of too? that's you're currency feature both any losses, look we new clarify, with fee. think [ queue and

Christopher McKown

it's Melissa, question. foreign you the we it broken include yes, board hedging purposes. have losses, foreign using capital that currency And it movements. I touched those all for gains including movements contracts think -- that and Chris. currency you before, see but we're our Thanks may for currency for foreign the And will on out

kind kind foreign of currency de results. that minimis net-net, So on impact, of our

Operator

to further no for our this I concludes back question-and-answer session. closing questions, like remarks. conference would Kleven over to the With Dane any turn

Dane Kleven

day, for don't thank you you our all for you to your out have continued Please if hesitate OCSL. participating Thank reach of on additional and support a today. Have great call questions.

Operator

conference for now today's has The Thank you concluded. presentation. attending

disconnect. may You now

Oaktree Specialty Lending (OCSL) 4 Feb 252025 Q1 Earnings call transcript