OCSL 10-Q Quarterly Report Dec. 31, 2022

OAKTREE SPECIALTY LENDING CORP

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ocsl-20221231

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 December 31, 2022


			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 þ 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 þ

Accelerated filer ¨

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 77,079,805 shares of common stock outstanding as of February 6, 2023.

OAKTREE SPECIALTY LENDING CORPORATION

FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2022

TABLE OF CONTENTS



		PART I — FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements:
		Consolidated Statements of Assets and Liabilities as of December 31, 2022 (unaudited) and September 30, 2022	2
		Consolidated Statements of Operations (unaudited) for the three months ended December 31, 2022 and 2021	3
		Consolidated Statements of Changes in Net Assets (unaudited) for the three months ended December 31, 2022 and 2021	4
		Consolidated Statements of Cash Flows (unaudited) for the three months ended December 31, 2022 and 2021	5
		Consolidated Schedule of Investments (unaudited) as of December 31, 2022	6
		Consolidated Schedule of Investments as of September 30, 2022	20
		Notes to Consolidated Financial Statements (unaudited)	33
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		85
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		104
Item 4.	Controls and Procedures		106
		PART II — OTHER INFORMATION
Item 1.	Legal Proceedings		106
Item 1A.	Risk Factors		106
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		106
Item 3 .	Defaults Upon Senior Securities		106
Item 4.	Mine Safety Disclosures		106
Item 5.	Other Information		106
Item 6.	Exhibits		107
Signatures			108

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)


	December 31, 2022 (unaudited)		September 30, 2022
ASSETS
Investments at fair value:
Control investments (cost December 31, 2022: $ 281,911 ; cost September 30, 2022: $ 260,305 )	$	232,462	$	214,165
Affiliate investments (cost December 31, 2022: $ 24,327 ; cost September 30, 2022: $ 27,353 )	23,173		26,196
Non-control/Non-affiliate investments (cost December 31, 2022: $ 2,471,776 ; cost September 30, 2022: $ 2,330,096 )	2,387,235		2,253,750
Total investments at fair value (cost December 31, 2022: $ 2,778,014 ; cost September 30, 2022: $ 2,617,754 )	2,642,870		2,494,111
Cash and cash equivalents	17,382		23,528
Restricted cash	1,863		2,836
Interest, dividends and fees receivable	37,802		35,598
Due from portfolio companies	6,181		22,495
Receivables from unsettled transactions	8,657		4,692
Due from broker	39,760		45,530
Deferred financing costs	6,781		7,350
Deferred offering costs	32		32
Deferred tax asset, net	1,722		1,687
Derivative assets at fair value	—		6,789
Other assets	4,210		1,665
Total assets	$	2,767,260	$	2,646,313
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	3,035	$	3,701
Base management fee and incentive fee payable	16,871		15,940
Due to affiliate	3,260		3,180
Interest payable	13,368		7,936
Payables from unsettled transactions	20,974		26,981
Derivative liability at fair value	44,139		41,969
Credit facilities payable	860,000		700,000
Unsecured notes payable (net of $ 4,650 and $ 5,020 of unamortized financing costs as of December 31, 2022 and September 30, 2022, respectively)	603,624		601,043
Total liabilities	1,565,271		1,400,750
Commitments and contingencies (Note 13)
Net assets:
Common stock, $ 0.01 par value per share, 250,000 shares authorized; 61,220 and 61,125 shares issued and outstanding as of December 31, 2022 and September 30, 2022, respectively (1)	612		611
Additional paid-in-capital	1,829,653		1,827,721
Accumulated overdistributed earnings	( 628,276 )		( 582,769 )
Total net assets (equivalent to $ 19.63 and $ 20.38 per common share as of December 31, 2022 and September 30, 2022, respectively) (Note 11) (1)	1,201,989		1,245,563
Total liabilities and net assets	$	2,767,260	$	2,646,313

__________

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

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)


	Three months ended December 31, 2022		Three months ended December 31, 2021
Interest income:
Control investments	$	4,567	$	3,480
Affiliate investments	641		334
Non-control/Non-affiliate investments	64,298		51,635
Interest on cash and cash equivalents	472		1
Total interest income	69,978		55,450
PIK interest income:
Non-control/Non-affiliate investments	6,130		4,663
Total PIK interest income	6,130		4,663
Fee income:
Control investments	13		13
Affiliate investments	5		5
Non-control/Non-affiliate investments	2,003		894
Total fee income	2,021		912
Dividend income:
Control investments	1,050		3,916
Total dividend income	1,050		3,916
Total investment income	79,179		64,941
Expenses:
Base management fee	9,917		9,952
Part I incentive fee	7,703		6,457
Part II incentive fee	—		1,751
Professional fees	1,500		1,322
Directors fees	160		123
Interest expense	20,719		9,400
Administrator expense	298		390
General and administrative expenses	746		693
Total expenses	41,043		30,088
Fees waived	( 750 )		( 750 )
Net expenses	40,293		29,338
Net investment income before taxes	38,886		35,603
(Provision) benefit for taxes on net investment income	—		( 3,308 )
Excise tax	( 78 )		—
Net investment income	38,808		32,295
Unrealized appreciation (depreciation):
Control investments	( 3,309 )		( 667 )
Affiliate investments	3		( 251 )
Non-control/Non-affiliate investments	( 8,675 )		( 2,831 )
Foreign currency forward contracts	( 11,001 )		( 837 )
Net unrealized appreciation (depreciation)	( 22,982 )		( 4,586 )
Realized gains (losses):
Control investments	—		1,868
Non-control/Non-affiliate investments	( 7,651 )		4,481
Foreign currency forward contracts	4,448		2,972
Net realized gains (losses)	( 3,203 )		9,321
(Provision) benefit for taxes on realized and unrealized gains (losses)	549		2,378
Net realized and unrealized gains (losses), net of taxes	( 25,636 )		7,113
Net increase (decrease) in net assets resulting from operations	$	13,172	$	39,408
Net investment income per common share — basic and diluted (1)	$	0.63	$	0.54
Earnings (loss) per common share — basic and diluted (Note 5) (1)	$	0.22	$	0.66
Weighted average common shares outstanding — basic and diluted (1)	61,142		60,127

__________

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

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Changes in Net Assets

(in thousands, except per share amounts)

(unaudited)


	Three months ended December 31, 2022		Three months ended December 31, 2021
Operations:
Net investment income	$	38,808	$	32,295
Net unrealized appreciation (depreciation)	( 22,982 )		( 4,586 )
Net realized gains (losses)	( 3,203 )		9,321
(Provision) benefit for taxes on realized and unrealized gains (losses)	549		2,378
Net increase (decrease) in net assets resulting from operations	13,172		39,408
Stockholder transactions:
Distributions to stockholders	( 58,679 )		( 27,956 )
Net increase (decrease) in net assets from stockholder transactions	( 58,679 )		( 27,956 )
Capital share transactions:
Issuance of common stock under dividend reinvestment plan	1,933		786
Net increase (decrease) in net assets from capital share transactions	1,933		786
Total increase (decrease) in net assets	( 43,574 )		12,238
Net assets at beginning of period	1,245,563		1,312,823
Net assets at end of period	$	1,201,989	$	1,325,061
Net asset value per common share	$	19.63	$	22.03
Common shares outstanding at end of period	61,220		60,156

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three months ended December 31, 2022		Three months ended December 31, 2021
Operating activities:
Net increase (decrease) in net assets resulting from operations	$	13,172	$	39,408
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	22,982		4,586
Net realized (gains) losses	3,203		( 9,321 )
PIK interest income	( 6,130 )		( 4,663 )
Accretion of original issue discount on investments	( 5,127 )		( 7,076 )
Accretion of original issue discount on unsecured notes payable	170		170
Amortization of deferred financing costs	828		924
Deferred taxes	( 35 )		( 959 )
Purchases of investments	( 261,404 )		( 246,623 )
Proceeds from the sales and repayments of investments	108,831		235,020
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable	( 1,842 )		1,796
(Increase) decrease in due from portfolio companies	16,314		( 803 )
(Increase) decrease in receivables from unsettled transactions	( 3,966 )		( 17,673 )
(Increase) decrease in due from broker	5,770		( 1,810 )
(Increase) decrease in other assets	( 2,546 )		( 564 )
Increase (decrease) in accounts payable, accrued expenses and other liabilities	( 554 )		3,145
Increase (decrease) in base management fee and incentive fee payable	931		( 6,459 )
Increase (decrease) in due to affiliate	80		( 854 )
Increase (decrease) in interest payable	5,432		2,101
Increase (decrease) in payables from unsettled transactions	( 6,007 )		32,717
Increase (decrease) in director fees payable	—		123
Net cash provided by (used in) operating activities	( 109,898 )		23,185
Financing activities:
Distributions paid in cash	( 56,746 )		( 27,170 )
Borrowings under credit facilities	202,000		70,000
Repayments of borrowings under credit facilities	( 42,000 )		( 50,000 )
Deferred financing costs paid	—		( 334 )
Net cash provided by (used in) financing activities	103,254		( 7,504 )
Effect of exchange rate changes on foreign currency	( 475 )		( 1,259 )
Net increase (decrease) in cash and cash equivalents and restricted cash	( 7,119 )		14,422
Cash and cash equivalents and restricted cash, beginning of period	26,364		31,635
Cash and cash equivalents and restricted cash, end of period	$	19,245	$	46,057
Supplemental information:
Cash paid for interest	$	14,289	$	6,205
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan	$	1,933	$	786
Reconciliation to the Consolidated Statements of Assets and Liabilities	December 31, 2022		September 30, 2022
Cash and cash equivalents	$	17,382	$	23,528
Restricted cash	1,863		2,836
Total cash and cash equivalents and restricted cash	$	19,245	$	26,364

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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	9.73	%		$	14,297	14,297		14,297		(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						15,222		4,227		(15)
						29,519		18,524
OCSI Glick JV LLC			Multi-Sector Holdings							(14)
Subordinated Debt, LIBOR+ 4.50 % cash due 10/20/2028	7.67	%		59,049		49,961		49,536		(6)(11)(15)(19)
87.5 % equity interest						—		—		(11)(16)(19)
						49,961		49,536
Senior Loan Fund JV I, LLC			Multi-Sector Holdings							(14)
Subordinated Debt, LIBOR+ 7.00 % cash due 12/29/2028	10.17	%		112,656		112,656		112,656		(6)(11)(15)(19)
87.5 % LLC equity interest						54,791		24,108		(11)(12)(16)(19)
						167,447		136,764
Total Control Investments ( 19.3 % of net assets)						$	281,911	$	232,462

Affiliate Investments										(17)
Assembled Brands Capital LLC			Specialized Finance
First Lien Revolver, LIBOR+ 6.75 % cash due 10/17/2023	11.48	%		$	21,464	$	21,464	$	21,252	(6)(15)(19)
1,609,201 Class A Units						764		354		(15)
1,019,168.80 Preferred Units, 6 %						1,019		1,243		(15)
70,424.5641 Class A Warrants (exercise price $ 3.3778 ) expiration date 9/9/2029						—		—		(15)
						23,247		22,849
Caregiver Services, Inc.			Health Care Services
1,080,399 shares of Series A Preferred Stock, 10 %						1,080		324		(15)
						1,080		324
Total Affiliate Investments ( 1.9 % of net assets)						$	24,327	$	23,173

Non-Control/Non-Affiliate Investments										(18)
107 Fair Street LLC			Real Estate Development
First Lien Delayed Draw Term Loan, 12.50 % cash due 5/17/2024				$	1,174	$	1,111	$	1,108	(10)(15)(19)
						1,111		1,108
112-126 Van Houten Real22 LLC			Real Estate Development
First Lien Delayed Draw Term Loan, 12.00 % cash due 5/4/2024				3,239		3,167		3,159		(10)(15)(19)
						3,167		3,159
A.T. Holdings II Ltd.			Biotechnology
First Lien Revenue Interest Financing Term Loan 14.25 % cash due 9/13/2029				15,939		15,939		15,939		(11)(15)
						15,939		15,939
A.T. Holdings II SÀRL			Biotechnology
First Lien Term Loan, 12.50 % PIK due 1/20/2023				15,643		15,640		15,722		(11)(15)
						15,640		15,722
Access CIG, LLC			Diversified Support Services
Second Lien Term Loan, LIBOR+ 7.75 % cash due 2/27/2026	11.82	%		20,000		19,932		17,800		(6)(15)
						19,932		17,800

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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, SOFR+ 5.50 % cash due 1/16/2026	10.16	%		$	15,935	$	15,668	$	15,903	(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 5.50 % cash due 1/16/2026				—		—		( 6 )		(6)(15)(19)
First Lien Revolver, SOFR+ 5.50 % cash due 1/16/2026	10.17	%		908		874		904		(6)(15)(19)
						16,542		16,801
Acquia Inc.			Application Software
First Lien Term Loan, LIBOR+ 7.00 % cash due 10/31/2025	10.74	%		27,349		27,064		27,240		(6)(15)
First Lien Revolver, LIBOR+ 7.00 % cash due 10/31/2025	12.18	%		1,317		1,296		1,308		(6)(15)(19)
						28,360		28,548
ADB Companies, LLC			Construction & Engineering
First Lien Term Loan, SOFR+ 6.25 % cash due 12/18/2025	11.34	%		14,505		14,079		14,254		(6)(15)
						14,079		14,254
ADC Therapeutics SA			Biotechnology
First Lien Term Loan, SOFR+ 7.50 % cash due 8/15/2029	12.23	%		6,589		6,269		6,274		(6)(11)(15)
First Lien Delayed Draw Term Loan, SOFR+ 7.50 % cash due 8/15/2029				—		( 38 )		( 35 )		(6)(11)(15)(19)
28,948 Common Stock Warrants (exercise price $ 8.297 ) expiration 8/15/2032						174		50		(11)(15)
						6,405		6,289
Aden & Anais Merger Sub, Inc.			Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.						5,165		—		(15)
						5,165		—
AI Sirona (Luxembourg) Acquisition S.a.r.l.			Pharmaceuticals
Second Lien Term Loan, EURIBOR+ 7.25 % cash due 9/28/2026	9.15	%		€	24,838	27,775		24,255		(6)(11)(15)
						27,775		24,255
AIP RD Buyer Corp.			Distributors
Second Lien Term Loan, SOFR+ 7.75 % cash due 12/23/2029	12.17	%		$	14,414	14,163		13,960		(6)(15)
14,410 Common Units in RD Holding LP						1,352		1,528		(15)
						15,515		15,488
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+ 1.00 % cash 7.50 % PIK due 12/29/2023	5.73	%		23,562		22,547		22,354		(6)(15)
						22,547		22,354
Altice France S.A.			Integrated Telecommunication Services
Fixed Rate Bond, 5.50 % cash due 10/15/2029				4,050		3,533		3,095		(11)
						3,533		3,095
Alto Pharmacy Holdings, Inc.			Health Care Technology
First Lien Term Loan, SOFR+ 8.00 % cash 3.50 % PIK due 10/14/2027	12.68	%		8,640		7,904		7,930		(6)(15)
166,414 Common Stock Warrants (exercise price $ 15.46 ) expiration date 10/14/2032						642		629		(15)
						8,546		8,559
Alvogen Pharma US, Inc.			Pharmaceuticals
First Lien Term Loan, SOFR+ 7.50 % cash due 6/30/2025	12.23	%		12,968		12,711		12,903		(6)(15)
						12,711		12,903

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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

Alvotech Holdings S.A.			Biotechnology							(13)
Tranche A Fixed Rate Bond 8.50 % cash 3.50 % PIK due 11/16/2026				$	26,179	$	25,798	$	25,684	(11)(15)
Tranche B Fixed Rate Bond 8.50 % cash 3.50 % PIK due 11/16/2026				25,612		25,264		25,128		(11)(15)
587,930 Common Shares in Alvotech SA						5,308		5,879		(11)
124,780 Seller Earn Out Shares in Alvotech SA						485		418		(11)(15)
293,082 $ 10.00 Put Options on Common Shares in Alvotech SA						—		580		(11)(15)
408,508 Common Stock Warrants (exercise price $ 0.01 ) expiration 12/31/2027						—		4,081		(11)(15)
						56,855		61,770
American Auto Auction Group, LLC			Consumer Finance
Second Lien Term Loan, SOFR+ 8.75 % cash due 1/2/2029	13.33	%		14,760		14,503		11,439		(6)(15)
						14,503		11,439
American Tire Distributors, Inc.			Distributors
First Lien Term Loan, LIBOR+ 6.25 % cash due 10/20/2028	10.61	%		9,870		9,747		9,081		(6)
						9,747		9,081
AMMC CLO 27			Multi-Sector Holdings
Class E Notes, SOFR+ 8.89 % cash due 1/20/2036	13.49	%		2,275		2,037		2,087		(6)(11)
						2,037		2,087
Amplify Finco Pty Ltd.			Movies & Entertainment
First Lien Term Loan, LIBOR+ 4.25 % cash due 11/26/2026	8.98	%		15,181		14,014		14,637		(6)(11)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash due 11/26/2027	12.73	%		12,500		12,188		11,833		(6)(11)(15)
						26,202		26,470
Anastasia Parent, LLC			Personal Products
First Lien Term Loan, LIBOR+ 3.75 % cash due 8/11/2025	8.48	%		2,729		2,254		2,043		(6)
						2,254		2,043
Ankura Consulting Group LLC			Research & Consulting Services
Second Lien Term Loan, LIBOR+ 8.00 % cash due 3/19/2029	12.36	%		2,996		2,951		2,558		(6)(15)
						2,951		2,558
Apptio, Inc.			Application Software
First Lien Term Loan, LIBOR+ 6.00 % cash due 1/10/2025	9.94	%		34,458		33,818		33,769		(6)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 1/10/2025	9.94	%		1,338		1,312		1,294		(6)(15)(19)
						35,130		35,063
APX Group Inc.			Electrical Components & Equipment
Fixed Rate Bond, 5.75 % cash due 7/15/2029				2,075		1,742		1,721		(11)
						1,742		1,721
Ardonagh Midco 3 PLC			Insurance Brokers
First Lien Term Loan, EURIBOR+ 7.00 % cash due 7/14/2026	8.00	%		€	1,964	2,176		2,103		(6)(11)(15)
First Lien Term Loan, SONIA+ 7.00 % cash due 7/14/2026	10.43	%		£	18,636	23,058		22,485		(6)(11)(15)
First Lien Term Loan, LIBOR+ 5.75 % cash due 7/14/2026	8.81	%		$	10,519	10,368		10,561		(6)(11)(15)
First Lien Term Loan, SONIA+ 5.75 % cash due 7/14/2026	7.48	%		£	3,649	3,666		3,908		(6)(11)(15)
						39,268		39,057
Associated Asphalt Partners, LLC			Construction Materials
First Lien Term Loan, LIBOR+ 5.25 % cash due 4/5/2024	9.63	%		$	2,493	2,353		1,928		(6)
						2,353		1,928
Astra Acquisition Corp.			Application Software
First Lien Term Loan, LIBOR+ 5.25 % cash due 10/25/2028	9.63	%		5,640		5,489		5,006		(6)
						5,489		5,006
athenahealth Group Inc.			Health Care Technology
18,635 Shares of Series A Preferred Stock in Minerva Holdco, Inc., 10.75 %						18,264		15,606		(15)
						18,264		15,606
Athenex, Inc.			Pharmaceuticals
First Lien Term Loan, 11.00 % cash due 6/19/2026				12,556		12,191		12,036		(11)(15)
First Lien Revenue Interest Financing Term Loan due 5/31/2031				8,649		8,604		8,649		(11)(15)
328,149 Common Stock Warrants (exercise price $ 0.4955 ) expiration date 6/19/2027						973		7		(11)(15)
						21,768		20,692

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
Aurora Lux Finco S.À.R.L.			Airport Services
First Lien Term Loan, LIBOR+ 6.00 % cash due 12/24/2026	10.32	%		$	22,368	$	22,050	$	21,274	(6)(11)(15)
						22,050		21,274
Avalara, Inc.			Application Software
First Lien Term Loan, SOFR+ 7.25 % cash due 10/19/2028	11.83	%		41,467		40,466		40,430		(6)(15)
First Lien Revolver, SOFR+ 7.25 % cash due 10/19/2028				—		( 100 )		( 104 )		(6)(15)(19)
						40,366		40,326
The Avery			Real Estate Operating Companies
First Lien Term Loan in T8 Urban Condo Owner, LLC, LIBOR+ 7.30 % cash due 2/17/2023	11.69	%		15,301		15,279		15,391		(6)(15)
Subordinated Debt in T8 Senior Mezz LLC, LIBOR+ 12.50 % cash due 2/17/2023	17.24	%		3,706		3,701		3,733		(6)(15)
						18,980		19,124
BAART Programs, Inc.			Health Care Services
First Lien Delayed Draw Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	9.73	%		2,541		2,497		2,420		(6)(15)(19)
Second Lien Term Loan, LIBOR+ 8.50 % cash due 6/11/2028	13.23	%		7,166		7,059		6,944		(6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+ 8.50 % cash due 6/11/2028	13.23	%		5,197		5,042		4,854		(6)(15)(19)
						14,598		14,218
Berner Food & Beverage, LLC			Soft Drinks
First Lien Term Loan, LIBOR+ 5.50 % cash due 7/30/2027	9.91	%		32,995		32,555		32,533		(6)(15)
First Lien Revolver, PRIME+ 4.50 % cash due 7/30/2026	12.00	%		897		859		857		(6)(15)(19)
						33,414		33,390
BioXcel Therapeutics, Inc.			Pharmaceuticals
First Lien Term Loan, 8.00 % cash 2.25 % PIK due 4/19/2027				5,383		5,184		5,028		(11)(15)
First Lien Delayed Draw Term Loan, 8.00 % cash 2.25 % PIK due 4/19/2027				—		—		—		(11)(15)(19)
First Lien Revenue Interest Financing Term Loan due 9/30/2032				2,432		2,432		2,432		(11)(15)
First Lien Revenue Interest Financing Delayed Draw Term Loan due 9/30/2032				—		—		—		(11)(15)(19)
21,177 Common Stock Warrants (exercise price $ 20.04 ) expiration date 4/19/2029						125		275		(11)(15)
						7,741		7,735
Blackhawk Network Holdings, Inc.			Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+ 7.00 % cash due 6/15/2026	10.94	%		30,625		30,300		26,391		(6)
						30,300		26,391
Blumenthal Temecula, LLC			Automotive Retail
First Lien Term Loan, 9.00 % cash due 9/24/2023				3,979		3,980		3,960		(15)
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC						1,293		1,267		(15)
298,460 Preferred Units in Unstoppable Automotive VMV, LLC						298		292		(15)
298,460 Common Units in Unstoppable Automotive AMV, LLC						298		379		(15)
						5,869		5,898
Cadence Aerospace, LLC			Aerospace & Defense
First Lien Term Loan, LIBOR+ 6.50 % cash 2.00 % PIK due 11/14/2023	10.92	%		14,332		13,700		13,178		(6)(15)
						13,700		13,178
CircusTrix Holdings, LLC			Leisure Facilities
First Lien Term Loan, LIBOR+ 5.50 % cash due 7/16/2023	9.57	%		10,668		10,201		10,465		(6)(15)
						10,201		10,465
Clear Channel Outdoor Holdings Inc.			Advertising
Fixed Rate Bond, 7.50 % cash due 6/1/2029				4,311		4,311		3,174		(11)
Fixed Rate Bond, 7.75 % cash due 4/15/2028				676		649		494		(11)
						4,960		3,668

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
Condor Merger Sub Inc.			Systems Software
Fixed Rate Bond, 7.375 % cash due 2/15/2030				$	8,420	$	8,248	$	6,785
						8,248		6,785
Continental Intermodal Group LP			Oil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+ 8.50 % cash due 1/28/2025	12.88	%		19,992		19,286		17,893		(6)(15)
Common Stock Warrants expiration date 7/28/2025						648		220		(15)
						19,934		18,113
Convergeone Holdings, Inc.			IT Consulting & Other Services
First Lien Term Loan, LIBOR+ 5.00 % cash due 1/4/2026	9.38	%		11,882		11,684		6,963		(6)
						11,684		6,963
Conviva Inc.			Application Software
517,851 Shares of Series D Preferred Stock						605		894		(15)
						605		894
CorEvitas, LLC			Health Care Technology
First Lien Term Loan, SOFR+ 6.125 % cash due 12/13/2025	10.55	%		13,677		13,527		13,344		(6)(15)
First Lien Revolver, PRIME+ 4.75 % cash due 12/13/2025	12.25	%		305		289		261		(6)(15)(19)
1,099 Class A2 Common Units in CorEvitas Holdings, L.P.						690		2,340		(15)
						14,506		15,945
Covetrus, Inc.			Health Care Distributors
First Lien Term Loan, SOFR+ 5.00 % cash due 9/20/2029	9.58	%		10,336		9,733		9,711		(6)
						9,733		9,711
Coyote Buyer, LLC			Specialty Chemicals
First Lien Term Loan, LIBOR+ 6.00 % cash due 2/6/2026	10.41	%		18,153		17,766		17,798		(6)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 2/6/2025				—		( 13 )		( 26 )		(6)(15)(19)
						17,753		17,772
Cuppa Bidco BV			Soft Drinks
First Lien Term Loan, EURIBOR+ 4.75 % cash due 7/30/2029	7.50	%		€	12,340	10,521		10,997		(6)(11)
						10,521		10,997
Delta Leasing SPV II LLC			Specialized Finance
Subordinated Delayed Draw Term Loan, 10.00 % cash due 8/31/2029				$	8,365	8,365		8,365		(11)(15)(19)
419 Series C Preferred Units in Delta Financial Holdings LLC						419		419		(11)(15)
2.09 Common Units in Delta Financial Holdings LLC						2		2		(11)(15)
31.37 Common Warrants (exercise price $ 1.00 )						—		—		(11)(15)
						8,786		8,786
Delta Topco, Inc.			Systems Software
Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/1/2028	11.65	%		6,680		6,647		5,319		(6)
						6,647		5,319
Dialyze Holdings, LLC			Health Care Equipment
First Lien Term Loan, LIBOR+ 9.00 % cash due 8/4/2026	13.73	%		20,965		19,913		20,912		(6)(15)
Subordinated Term Loan, 8.00 % PIK due 9/30/2027				520		520		494		(15)
5,403,823 Class A Warrants (exercise price $ 1.00 ) expiration date 8/4/2028						1,405		1,297		(15)
						21,838		22,703
Digital.AI Software Holdings, Inc.			Application Software
First Lien Term Loan, LIBOR+ 6.50 % cash due 2/10/2027	11.09	%		9,877		9,593		9,768		(6)(15)
First Lien Revolver, LIBOR+ 7.00 % cash due 2/10/2027	11.59	%		251		229		239		(6)(15)(19)
						9,822		10,007
DirecTV Financing, LLC			Cable & Satellite
First Lien Term Loan, LIBOR+ 5.00 % cash due 8/2/2027	9.38	%		8,166		8,012		7,968		(6)
						8,012		7,968
Dryden 66 Euro CLO 2018			Multi-Sector Holdings
Class DR Notes, EURIBOR+ 3.35 % cash due 1/18/2032	4.75	%		€	1,500	1,335		1,389		(6)(11)
						1,335		1,389

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
DTI Holdco, Inc.			Research & Consulting Services
First Lien Term Loan, SOFR+ 4.75 % cash due 4/26/2029	8.84	%		$	4,988	$	4,897	$	4,607	(6)
						4,897		4,607
Eagleview Technology Corporation			Application Software
Second Lien Term Loan, LIBOR+ 7.50 % cash due 8/14/2026	12.23	%		8,974		8,884		7,897		(6)(15)
						8,884		7,897
EOS Fitness Opco Holdings, LLC			Leisure Facilities
487.5 Class A Preferred Units, 12 %						488		1,067		(15)
12,500 Class B Common Units						—		—		(15)
						488		1,067
Establishment Labs Holdings Inc.			Health Care Technology
First Lien Term Loan, 3.00 % cash 6.00 % PIK due 4/21/2027				10,576		10,441		10,100		(11)(15)
First Lien Delayed Draw Term Loan, 3.00 % cash 6.00 % PIK due 4/21/2027				1,694		1,667		1,694		(11)(15)(19)
						12,108		11,794
Fairbridge Strategic Capital Funding LLC			Real Estate Operating Companies
First Lien Delayed Draw Term Loan, 9.00 % cash due 12/24/2028				31,000		31,000		31,000		(15)(19)
2,500 Warrant Units (exercise price $ 0.01 ) expiration date 11/24/2031						—		3		(11)(15)
						31,000		31,003
FINThrive Software Intermediate Holdings, Inc.			Health Care Technology
Second Lien Term Loan, LIBOR+ 6.75 % cash due 12/17/2029	11.13	%		25,061		24,685		19,273		(6)
						24,685		19,273
Fortress Biotech, Inc.			Biotechnology
First Lien Term Loan, 11.00 % cash due 8/27/2025				9,466		9,106		8,922		(11)(15)
331,200 Common Stock Warrants (exercise price $ 3.20 ) expiration date 8/27/2030						405		26		(11)(15)
						9,511		8,948
Frontier Communications Holdings, LLC			Integrated Telecommunication Services
Fixed Rate Bond, 6.00 % cash due 1/15/2030				4,881		4,432		3,841		(11)
						4,432		3,841
GKD Index Partners, LLC			Specialized Finance
First Lien Term Loan, LIBOR+ 7.00 % cash due 6/29/2023	11.73	%		24,819		24,682		24,641		(6)(15)
First Lien Revolver, LIBOR+ 7.00 % cash due 6/29/2023	11.75	%		1,280		1,272		1,268		(6)(15)(19)
						25,954		25,909
GoldenTree Loan Management EUR CLO 2			Multi-Sector Holdings
Class D Notes, EURIBOR+ 2.85 % cash due 1/20/2032	4.31	%		€	1,000	865		899		(6)(11)
						865		899
Grove Hotel Parcel Owner, LLC			Hotels, Resorts & Cruise Lines
First Lien Term Loan, SOFR+ 8.00 % cash due 6/21/2027	12.33	%		$	14,275	14,020		13,990		(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 8.00 % cash due 6/21/2027				—		( 51 )		( 57 )		(6)(15)(19)
First Lien Revolver, SOFR+ 8.00 % cash due 6/21/2027				—		( 26 )		( 29 )		(6)(15)(19)
						13,943		13,904
Harbor Purchaser Inc.			Education Services
First Lien Term Loan, SOFR+ 5.25 % cash due 4/9/2029	9.67	%		9,369		9,070		8,938		(6)
						9,070		8,938
Hayfin Emerald CLO XI			Multi-Sector Holdings
Class E Notes, EURIBOR+ 8.12 % cash due 1/25/2036	10.11	%		€	2,250	2,041		2,079		(6)(11)
						2,041		2,079

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
Horizon Aircraft Finance I			Specialized Finance
Class A Notes, 4.458 % cash due 12/15/2038				$	7,112	$	5,697	$	5,838	(6)(11)
						5,697		5,838
iCIMs, Inc.			Application Software
First Lien Term Loan, SOFR+ 3.375 % cash 3.875 % PIK due 8/18/2028	7.14	%		19,203		18,888		18,420		(6)(15)
First Lien Term Loan, SOFR+ 7.25 % cash due 8/18/2028	11.52	%		2,944		2,895		2,885		(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 6.75 % cash due 8/18/2028				—		—		—		(6)(15)(19)
First Lien Revolver, SOFR+ 6.75 % cash due 8/18/2028				—		( 30 )		( 75 )		(6)(15)(19)
						21,753		21,230
Immucor, Inc.			Health Care Supplies
First Lien Term Loan, LIBOR+ 5.75 % cash due 7/2/2025	10.48	%		8,547		8,395		8,635		(6)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash 3.50 % PIK due 10/2/2025	12.73	%		22,819		22,401		23,275		(6)(15)
						30,796		31,910
Impel Neuropharma, Inc.			Health Care Technology
First Lien Revenue Interest Financing Term Loan due 2/15/2031				13,482		13,482		13,428		(15)
First Lien Term Loan, SOFR+ 8.75 % cash due 3/17/2027	13.20	%		12,161		11,956		11,876		(6)(15)
						25,438		25,304
Innocoll Pharmaceuticals Limited			Health Care Technology
First Lien Term Loan, 11.00 % cash due 1/26/2027				6,817		6,569		6,336		(11)(15)
First Lien Delayed Draw Term Loan, 11.00 % cash due 1/26/2027				—		—		—		(11)(15)(19)
56,999 Tranche A Warrant Shares (exercise price $ 4.23 ) expiration date 1/26/2029						135		662		(11)(15)
						6,704		6,998
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, SOFR+ 5.00 % cash due 3/29/2024	9.84	%		18,612		18,536		18,054		(6)(15)
Second Lien Term Loan, LIBOR+ 8.50 % cash due 9/29/2024	13.23	%		13,674		13,535		13,195		(6)(15)
						32,071		31,249
INW Manufacturing, LLC			Personal Products
First Lien Term Loan, LIBOR+ 5.75 % cash due 3/25/2027	10.48	%		35,156		34,394		30,059		(6)(15)
						34,394		30,059
IPC Corp.			Application Software
First Lien Term Loan, LIBOR+ 6.50 % cash due 10/1/2026	9.44	%		34,357		33,660		32,553		(6)(15)
						33,660		32,553
Ivanti Software, Inc.			Application Software
Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/1/2028	12.01	%		10,247		10,196		5,994		(6)
						10,196		5,994
Jazz Acquisition, Inc.			Aerospace & Defense
First Lien Term Loan, LIBOR+ 7.50 % cash due 1/29/2027	11.88	%		35,912		34,918		36,176		(6)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash due 6/18/2027	12.38	%		528		480		483		(6)
						35,398		36,659
Kings Buyer, LLC			Environmental & Facilities Services
First Lien Term Loan, LIBOR+ 6.50 % cash due 10/29/2027	11.23	%		13,589		13,453		13,153		(6)(15)
First Lien Revolver, LIBOR+ 6.50 % cash due 10/29/2027	11.75	%		659		640		599		(6)(15)(19)
						14,093		13,752

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
Latam Airlines Group S.A.			Airlines
First Lien Term Loan, SOFR+ 9.50 % cash due 11/3/2027	13.99	%		$	26,205	$	24,034	$	25,864	(6)(11)
						24,034		25,864
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	9.73	%		36,913		36,233		35,621		(6)(15)
						36,233		35,621
Liquid Environmental Solutions Corporation			Environmental & Facilities Services
Second Lien Term Loan, LIBOR+ 8.50 % cash due 11/30/2026	12.88	%		4,357		4,289		4,215		(6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+ 8.50 % cash due 11/30/2026	12.94	%		2,370		2,323		2,257		(6)(15)(19)
450.75 Class A2 Units in LES Group Holdings, L.P.						451		451		(15)
						7,063		6,923
LSL Holdco, LLC			Health Care Distributors
First Lien Term Loan, LIBOR+ 6.00 % cash due 1/31/2028	10.38	%		21,315		20,839		20,089		(6)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 1/31/2028	10.38	%		2,137		2,101		2,014		(6)(15)
						22,940		22,103
LTI Holdings, Inc.			Electronic Components
Second Lien Term Loan, LIBOR+ 6.75 % cash due 9/6/2026	11.13	%		2,140		2,095		1,712		(6)
						2,095		1,712
Marinus Pharmaceuticals, Inc.			Pharmaceuticals
First Lien Term Loan, 11.50 % cash due 5/11/2026				17,203		16,972		16,573		(11)(15)
First Lien Delayed Draw Term Loan, 11.50 % cash due 5/11/2026				—		—		—		(11)(15)(19)
						16,972		16,573
Mesoblast, Inc.			Biotechnology
First Lien Term Loan, 8.00 % cash 1.75 % PIK due 11/19/2026				7,247		6,717		6,474		(11)(15)
First Lien Delayed Draw Term Loan, 8.00 % cash 1.75 % PIK due 11/19/2026				—		1		—		(11)(15)(19)
209,588 Warrant Shares (exercise price $ 7.26 ) expiration date 11/19/2028						480		222		(11)(15)
53,887 Warrant Shares (exercise price $ 3.70 ) expiration 11/19/2028						—		81		(11)(15)
						7,198		6,777
MHE Intermediate Holdings, LLC			Diversified Support Services
First Lien Term Loan, SOFR+ 6.00 % cash due 7/21/2027	9.50	%		18,344		18,057		17,678		(6)(15)
First Lien Revolver, SOFR+ 6.00 % cash due 7/21/2027	10.94	%		200		178		148		(6)(15)(19)
						18,235		17,826
Mindbody, Inc.			Internet Services & Infrastructure
First Lien Term Loan, LIBOR+ 7.00 % cash due 2/14/2025	11.72	%		45,487		44,616		44,486		(6)(15)
First Lien Revolver, LIBOR+ 8.00 % cash due 2/14/2025				—		( 48 )		( 88 )		(6)(15)(19)
						44,568		44,398
Mosaic Companies, LLC			Home Improvement Retail
First Lien Term Loan, LIBOR+ 6.75 % cash due 7/2/2026	10.93	%		45,907		45,266		45,127		(6)(15)
						45,266		45,127
MRI Software LLC			Application Software
First Lien Term Loan, LIBOR+ 5.50 % cash due 2/10/2026	10.23	%		25,768		25,392		24,833		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 5.50 % cash due 2/10/2026				—		( 11 )		( 95 )		(6)(15)(19)
First Lien Revolver, LIBOR+ 5.50 % cash due 2/10/2026				—		( 13 )		( 65 )		(6)(15)(19)
						25,368		24,673
Navisite, LLC			Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+ 8.50 % cash due 12/30/2026	13.23	%		22,560		22,260		21,545		(6)(15)
						22,260		21,545

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
NeuAG, LLC			Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+ 10.50 % cash due 9/11/2024	15.23	%		$	50,276	$	49,271	$	52,292	(6)(15)
						49,271		52,292
NFP Corp.			Other Diversified Financial Services
Fixed Rate Bond 6.875 % cash due 8/15/2028				10,191		9,787		8,423
						9,787		8,423
NN, Inc.			Industrial Machinery
First Lien Term Loan, LIBOR+ 6.88 % cash due 9/19/2026	11.26	%		58,564		57,577		55,958		(6)(11)(15)
						57,577		55,958
OCP EURO CLO 2022-6			Multi-Sector Holdings
Class D Notes, EURIBOR+ 6.06 % cash due 1/20/2033	8.05	%		€	2,500	2,503		2,576		(6)(11)
Class E Notes, EURIBOR+ 6.87 % cash due 1/20/2033	8.86	%		3,000		2,677		2,728		(6)(11)
						5,180		5,304
OEConnection LLC			Application Software
First Lien Term Loan, SOFR+ 4.00 % cash due 9/25/2026	8.42	%		$	3,315	3,165		3,167		(6)
Second Lien Term Loan, SOFR+ 7.00 % cash due 9/25/2027	11.42	%		7,519		7,396		7,221		(6)(15)
						10,561		10,388
OTG Management, LLC			Airport Services
First Lien Term Loan, LIBOR+ 2.00 % cash 8.00 % PIK due 9/1/2025	6.76	%		21,993		21,728		21,993		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 2.00 % cash 8.00 % PIK due 9/1/2025				—		( 30 )		—		(6)(15)(19)
						21,698		21,993
P & L Development, LLC			Pharmaceuticals
Fixed Rate Bond, 7.75 % cash due 11/15/2025				7,776		7,817		6,318
						7,817		6,318
Park Place Technologies, LLC			Internet Services & Infrastructure
First Lien Term Loan, SOFR+ 5.00 % cash due 11/10/2027	9.42	%		4,838		4,703		4,575		(6)
						4,703		4,575
Performance Health Holdings, Inc.			Health Care Distributors
First Lien Term Loan, LIBOR+ 6.00 % cash due 7/12/2027	10.73	%		17,976		17,705		17,537		(6)(15)
						17,705		17,537
PFNY Holdings, LLC			Leisure Facilities
First Lien Term Loan, LIBOR+ 7.00 % cash due 12/31/2026	10.74	%		26,088		25,674		25,632		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 7.00 % cash due 12/31/2026	10.74	%		2,228		2,188		2,184		(6)(15)(19)
First Lien Revolver, LIBOR+ 7.00 % cash due 12/31/2026	11.76	%		1,252		1,232		1,230		(6)(15)
						29,094		29,046
Planview Parent, Inc.			Application Software
Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/18/2028	11.98	%		28,627		28,198		25,693		(6)(15)
						28,198		25,693
Pluralsight, LLC			Application Software
First Lien Term Loan, LIBOR+ 8.00 % cash due 4/6/2027	11.83	%		48,689		47,993		47,471		(6)(15)
First Lien Revolver, LIBOR+ 8.00 % cash due 4/6/2027	12.36	%		1,766		1,716		1,678		(6)(15)(19)
						49,709		49,149
PRGX Global, Inc.			Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+ 6.75 % cash due 3/3/2026	11.50	%		31,186		30,466		30,578		(6)(15)
First Lien Revolver, LIBOR+ 6.75 % cash due 3/3/2026				—		( 31 )		( 49 )		(6)(15)(19)
80,515 Class B Common Units						79		121		(15)
						30,514		30,650
Profrac Holdings II, LLC			Industrial Machinery
First Lien Term Loan, SOFR+ 7.25 % cash due 3/4/2025	11.10	%		22,984		22,496		22,432		(6)(15)
						22,496		22,432

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
Project Boost Purchaser, LLC			Application Software
Second Lien Term Loan, LIBOR+ 8.00 % cash due 5/31/2027	12.38	%		$	5,250	$	5,173	$	4,955	(6)(15)
						5,173		4,955
Quantum Bidco Limited			Food Distributors
First Lien Term Loan, SONIA+ 6.00 % cash due 1/29/2028	9.63	%		£	3,501	$	4,655	$	3,599	(6)(11)(15)
						4,655		3,599
QuorumLabs, Inc.			Application Software
64,887,669 Junior-2 Preferred Stock						375		—		(15)
						375		—
Radiology Partners Inc.			Health Care Distributors
First Lien Term Loan, LIBOR+ 4.25 % cash due 7/9/2025	8.64	%		$	3,400	3,221		2,870		(6)
Fixed Rate Bond, 9.25 % cash due 2/1/2028				4,755		4,721		2,677
						7,942		5,547
Relativity ODA LLC			Application Software
First Lien Term Loan, LIBOR+ 7.50 % PIK due 5/12/2027				25,405		25,002		24,846		(6)(15)
First Lien Revolver, LIBOR+ 6.50 % cash due 5/12/2027				—		( 40 )		( 47 )		(6)(15)(19)
						24,962		24,799
Renaissance Holding Corp.			Diversified Banks
Second Lien Term Loan, LIBOR+ 7.00 % cash due 5/29/2026	11.38	%		3,542		3,515		3,315		(6)
						3,515		3,315
RumbleOn, Inc.			Automotive Retail
First Lien Term Loan, LIBOR+ 8.25 % cash due 8/31/2026	12.98	%		36,092		34,407		34,540		(6)(11)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 8.25 % cash due 8/31/2026	12.98	%		10,920		10,185		10,243		(6)(11)(15)(19)
164,660 Class B Common Stock Warrants (exercise price $ 31.50 ) expiration date 7/25/2023						1,202		—		(11)(15)
						45,794		44,783
Salus Workers' Compensation, LLC			Other Diversified Financial Services
First Lien Term Loan, SOFR+ 10.00 % cash due 10/7/2026	14.32	%		27,848		26,787		26,804		(6)(15)
First Lien Revolver, SOFR+ 10.00 % cash due 10/7/2026	14.32	%		931		812		814		(6)(15)(19)
991,019 Common Stock Warrants (exercise price $ 4.83 ) expiration date 10/7/2032						327		307		(15)
						27,926		27,925
SCP Eye Care Services, LLC			Health Care Services
Second Lien Term Loan, SOFR+ 8.75 % cash due 10/7/2030	12.52	%		8,010		7,777		7,778		(6)(15)
Second Lien Delayed Draw Term Loan, SOFR+ 8.75 % cash due 10/7/2030				—		( 35 )		( 68 )		(6)(15)(19)
1,037 Units in Eyesouth Co-Investor FT Aggregator LLC						1,037		1,113		(15)
						8,779		8,823
scPharmaceuticals Inc.			Pharmaceuticals
First Lien Term Loan, SOFR+ 8.75 % cash due 10/13/2027	11.75	%		5,212		4,945		4,957		(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 8.75 % cash due 10/13/2027				—		—		—		(6)(15)(19)
53,700 Common Stock Warrants (exercise price $ 5.40 ) expiration date 10/12/2029						175		262		(15)
						5,120		5,219
ShareThis, Inc.			Application Software
345,452 Series C Preferred Stock Warrants (exercise price $ 3.0395 ) expiration date 3/4/2024						367		—		(15)
						367		—
SiO2 Medical Products, Inc.			Metal & Glass Containers
First Lien Term Loan, 5.50 % cash 8.50 % PIK due 12/21/2026				47,112		46,447		44,520		(15)
415.34 Common Stock Warrants (exercise price $ 4,920.75 ) expiration date 7/31/2028						681		243		(15)
						47,128		44,763
SM Wellness Holdings, Inc.			Health Care Services
First Lien Term Loan, LIBOR+ 4.75 % cash due 4/17/2028	9.42	%		3,395		2,784		2,767		(6)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash due 4/16/2029	12.67	%		9,109		8,972		6,604		(6)(15)
						11,756		9,371

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
SonicWall US Holdings Inc.			Technology Distributors
Second Lien Term Loan, LIBOR+ 7.50 % cash due 5/18/2026	12.20	%		$	3,195	$	3,163	$	2,971	(6)(15)
						3,163		2,971
Sorrento Therapeutics, Inc.			Biotechnology
50,000 Common Stock Units						197		44		(11)
						197		44
Spanx, LLC			Apparel Retail
First Lien Term Loan, LIBOR+ 5.25 % cash due 11/20/2028	9.64	%		4,523		4,447		4,415		(6)(15)
First Lien Revolver, LIBOR+ 5.25 % cash due 11/18/2027	9.29	%		330		280		260		(6)(15)(19)
						4,727		4,675
SPX Flow, Inc.			Industrial Machinery
First Lien Term Loan, SOFR+ 4.50 % cash due 4/5/2029	8.92	%		1,496		1,410		1,401		(6)
						1,410		1,401
SumUp Holdings Luxembourg S.À.R.L.			Other Diversified Financial Services
First Lien Term Loan, EURIBOR+ 8.50 % cash due 3/10/2026	10.49	%		€	16,911	19,415		17,732		(6)(11)(15)
						19,415		17,732
Sunland Asphalt & Construction, LLC			Construction & Engineering
First Lien Term Loan, LIBOR+ 6.00 % cash due 1/13/2026	11.15	%		$	42,510	41,624		41,702		(6)(15)
						41,624		41,702
Superior Industries International, Inc.			Auto Parts & Equipment
First Lien Term Loan, SOFR+ 8.00 % cash due 12/16/2028	12.32	%		39,774		38,591		38,581		(6)(15)
						38,591		38,581
Supermoose Borrower, LLC			Application Software
First Lien Term Loan, LIBOR+ 3.75 % cash due 8/29/2025	8.48	%		3,457		3,162		2,994		(6)
						3,162		2,994
SVP-Singer Holdings Inc.			Home Furnishings
First Lien Term Loan, LIBOR+ 6.75 % cash due 7/28/2028	11.48	%		20,714		19,554		17,917		(6)(15)
						19,554		17,917
Swordfish Merger Sub LLC			Auto Parts & Equipment
Second Lien Term Loan, LIBOR+ 6.75 % cash due 2/2/2026	11.14	%		12,500		12,476		11,434		(6)(15)
						12,476		11,434
Tacala, LLC			Restaurants
Second Lien Term Loan, LIBOR+ 7.50 % cash due 2/4/2028	11.88	%		9,448		9,343		8,610		(6)
						9,343		8,610
Tahoe Bidco B.V.			Application Software
First Lien Term Loan, LIBOR+ 6.00 % cash due 9/29/2028	10.29	%		23,215		22,833		22,866		(6)(11)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 10/1/2027				—		( 28 )		( 26 )		(6)(11)(15)(19)
						22,805		22,840
Tecta America Corp.			Construction & Engineering
Second Lien Term Loan, SOFR+ 8.50 % cash due 4/9/2029	12.94	%		5,203		5,125		4,982		(6)(15)
						5,125		4,982
Telestream Holdings Corporation			Application Software
First Lien Term Loan, SOFR+ 9.75 % cash due 10/15/2025	13.67	%		18,276		17,941		17,765		(6)(15)
First Lien Revolver, SOFR+ 9.75 % cash due 10/15/2025	13.67	%		1,231		1,212		1,182		(6)(15)(19)
						19,153		18,947
TerSera Therapeutics LLC			Pharmaceuticals
Second Lien Term Loan, LIBOR+ 9.50 % cash due 3/30/2026	13.88	%		29,663		29,375		29,057		(6)(15)
668,879 Common Units of TerSera Holdings LLC						2,028		4,662		(15)
						31,403		33,719
TGNR HoldCo LLC			Integrated Oil & Gas
Subordinated Debt, 11.50 % cash due 5/14/2026				4,984		4,873		4,847		(10)(11)(15)
						4,873		4,847

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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	11.17	%		$	37,399	$	36,532	$	34,126	(6)(15)
8,434 Shares of Series C-3 Preferred Stock in Thrasio Holdings, Inc.						101		71		(15)
284,650.32 Shares of Series C-2 Preferred Stock in Thrasio Holdings, Inc.						2,409		1,882		(15)
48,352 Shares of Series D Preferred Stock in Thrasio Holdings, Inc.						979		852		(15)
25,780 Shares of Series X Preferred Stock in Thrasio Holdings, Inc.						25,564		29,070		(15)
						65,585		66,001
TIBCO Software Inc.			Application Software
First Lien Term Loan, SOFR+ 4.50 % cash due 3/20/2029	9.18	%		12,032		10,986		10,775		(6)
						10,986		10,775
Touchstone Acquisition, Inc.			Health Care Supplies
First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2028	10.38	%		6,001		5,897		5,866		(6)(15)
						5,897		5,866
Trinitas CLO XV			Multi-Sector Holdings
Class E Notes, LIBOR+ 7.45 % cash due 4/22/2034	11.77	%		1,000		810		846		(6)(11)
						810		846
Uniti Group LP			Specialized REITs
Fixed Rate Bond, 6.50 % cash due 2/15/2029				4,500		4,074		2,990		(11)
Fixed Rate Bond, 4.75 % cash due 4/15/2028				300		260		240		(11)
						4,334		3,230
Win Brands Group LLC			Housewares & Specialties
First Lien Term Loan, LIBOR+ 15.00 % cash due 1/22/2026	20.75	%		2,238		2,217		2,137		(6)(15)
3,621 Class F Warrants in Brand Value Growth LLC (exercise price $ 0.01 ) expiration date 1/25/2027						—		128		(15)
						2,217		2,265
Windstream Services II, LLC			Integrated Telecommunication Services
First Lien Term Loan, SOFR+ 6.25 % cash due 9/21/2027	10.67	%		25,432		24,612		23,131		(6)
18,032 Shares of Common Stock in Windstream Holdings II, LLC						216		279		(15)
109,420 Warrants in Windstream Holdings II, LLC						1,842		1,695		(15)
						26,670		25,105
WP CPP Holdings, LLC			Aerospace & Defense
First Lien Term Loan, LIBOR+ 3.75 % cash due 4/30/2025	8.17	%		7,545		7,029		6,598		(6)
Second Lien Term Loan, LIBOR+ 7.75 % cash due 4/30/2026	12.17	%		6,000		5,866		5,055		(6)(15)
						12,895		11,653
WPEngine, Inc.			Application Software
First Lien Term Loan, LIBOR+ 6.00 % cash due 3/27/2026	10.19	%		40,536		39,991		40,131		(6)(15)
						39,991		40,131
WWEX Uni Topco Holdings, LLC			Air Freight & Logistics
Second Lien Term Loan, LIBOR+ 7.00 % cash due 7/26/2029	11.73	%		5,000		4,925		4,191		(6)(15)
						4,925		4,191
Zayo Group Holdings, Inc.			Alternative Carriers
Fixed Rate Bond, 4.00 % cash due 3/1/2027				250		214		185
						214		185

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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
Zep Inc.			Specialty Chemicals
Second Lien Term Loan, LIBOR+ 8.25 % cash due 8/11/2025	12.98	%		$	19,578	$	19,545	$	13,704	(6)(15)
						19,545		13,704
Zephyr Bidco Limited			Specialized Finance
Second Lien Term Loan, SONIA+ 7.50 % cash due 7/23/2026	10.96	%		£	18,000	23,839		16,369		(6)(11)(15)
						23,839		16,369
Total Non-Control/Non-Affiliate Investments ( 198.6 % of net assets)						$	2,471,776	$	2,387,235
Total Portfolio Investments ( 219.9 % of net assets)						$	2,778,014	$	2,642,870
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares						$	3,421	$	3,421
Other cash accounts						15,824		15,824
Total Cash and Cash Equivalents and Restricted Cash ( 1.6 % of net assets)						$	19,245	$	19,245
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash ( 221.5 % of net assets)						$	2,797,259	$	2,662,115


Derivative Instrument	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Counterparty	Cumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract	$	44,825	€	44,224	2/9/2023	JPMorgan Chase Bank, N.A.	$	( 2,499 )
Foreign currency forward contract	$	46,412	£	39,965	2/9/2023	JPMorgan Chase Bank, N.A.	( 1,712 )
							$	( 4,211 )

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

$( 39,928 )

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

December 31, 2022

(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 most of the 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. Certain loans may also be indexed to the secured overnight financing rate ("SOFR") or the sterling overnight index average ("SONIA"). The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of December 31, 2022, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 4.38%, the 90-day LIBOR at 4.73%, the 180-day LIBOR at 5.15%, the PRIME at 7.50%, the 30-day SOFR at 4.32%, the 90-day SOFR at 4.58%, the 180-day SOFR at 4.79%, the SONIA at 3.43%, the 30-day EURIBOR at 1.90%, the 90-day EURIBOR at 1.99% and the 180-day EURIBOR at 0.38%. Most loans include an interest floor, which generally ranges from 0% to 2%. SOFR and SONIA based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(7) Principal includes accumulated payment in kind ("PIK") interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

(8) Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9) As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the three months ended December 31, 2022 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(10) This investment represents a participation interest in the underlying securities shown.

(11) Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2022, qualifying assets represented 73.8 % of the Company's total assets and non-qualifying assets represented 26.2 % of the Company's total assets.

(12) Income producing through payment of dividends or distributions.

(13) One half of the Seller Earn Out Shares will vest if, at any time through June 16, 2027, the Alvotech SA common share price is at or above a volume weighted average price ("VWAP") of $ 15.00 per share for any ten trading days within any twenty trading day period, and the other half will vest, if at any time during such period, the common share price is at or above a VWAP of $ 20.00 per share for any ten trading days within any twenty trading day period.

(14) See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.

(15) As of December 31, 2022, 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.

See notes to Consolidated Financial Statements.

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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						$	—	$	—	(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	8.68	%		$	14,333	14,333		14,333		(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						15,222		4,946		(15)
						29,555		19,279
OCSI Glick JV LLC			Multi-Sector Holdings							(14)
Subordinated Debt, LIBOR+ 4.50 % cash due 10/20/2028	6.30	%		59,662		50,194		50,283		(6)(11)(15)(19)
87.5 % equity interest						—		—		(11)(16)(19)
						50,194		50,283
Senior Loan Fund JV I, LLC			Multi-Sector Holdings							(14)
Subordinated Debt, LIBOR+ 7.00 % cash due 12/29/2028	8.80	%		96,250		96,250		96,250		(6)(11)(15)(19)
87.5 % LLC equity interest						49,322		20,715		(11)(12)(16)(19)
						145,572		116,965
Total Control Investments ( 17.2 % of net assets)						$	260,305	$	214,165

Affiliate Investments										(17)
Assembled Brands Capital LLC			Specialized Finance
First Lien Revolver, LIBOR+ 6.75 % cash due 10/17/2023	10.42	%		$	24,490	$	24,490	$	24,225	(6)(15)(19)
1,609,201 Class A Units						764		370		(15)
1,019,168.80 Preferred Units, 6 %						1,019		1,223		(15)
70,424.5641 Class A Warrants (exercise price $ 3.3778 ) expiration date 9/9/2029						—		—		(15)
						26,273		25,818
Caregiver Services, Inc.			Health Care Services
1,080,399 shares of Series A Preferred Stock, 10 %						1,080		378		(15)
						1,080		378
Total Affiliate Investments ( 2.1 % of net assets)						$	27,353	$	26,196

Non-Control/Non-Affiliate Investments										(18)
109 Montgomery Owner LLC			Real Estate Operating Companies
First Lien Term Loan, LIBOR+ 7.00 % cash due 2/2/2023	9.80	%		$	389	$	387	$	727	(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 7.00 % cash due 2/2/2023				—		( 31 )		—		(6)(15)(19)
						356		727
A.T. Holdings II SÀRL			Biotechnology
First Lien Term Loan, 10.50 % PIK due 12/22/2022				33,997		33,960		34,891		(11)(15)
						33,960		34,891
Access CIG, LLC			Diversified Support Services
Second Lien Term Loan, LIBOR+ 7.75 % cash due 2/27/2026	10.82	%		20,000		19,927		19,075		(6)
						19,927		19,075
Accupac, Inc.			Personal Products
First Lien Term Loan, SOFR+ 5.50 % cash due 1/16/2026	9.12	%		15,976		15,686		15,944		(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 5.50 % cash due 1/16/2026				—		—		( 6 )		(6)(15)(19)
First Lien Revolver, SOFR+ 5.50 % cash due 1/16/2026	9.14	%		500		462		495		(6)(15)(19)
						16,148		16,433

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
Acquia Inc.			Application Software
First Lien Term Loan, LIBOR+ 7.00 % cash due 10/31/2025	9.63	%		$	27,349	$	27,038	$	27,158	(6)(15)
First Lien Revolver, LIBOR+ 7.00 % cash due 10/31/2025	10.64	%		914		890		898		(6)(15)(19)
						27,928		28,056
ADB Companies, LLC			Construction & Engineering
First Lien Term Loan, SOFR+ 6.25 % cash due 12/18/2025	9.80	%		14,685		14,217		14,431		(6)(15)
						14,217		14,431
ADC Therapeutics SA			Biotechnology
First Lien Term Loan, SOFR+ 7.50 % cash due 8/15/2029	11.20	%		6,589		6,256		6,262		(6)(11)(15)
First Lien Delayed Draw Term Loan, SOFR+ 7.50 % cash due 8/15/2029				—		( 38 )		( 37 )		(6)(11)(15)(19)
28,948 Common Stock Warrants (exercise price $ 8.297 ) expiration 8/15/2032						174		73		(11)(15)
						6,392		6,298
Aden & Anais Merger Sub, Inc.			Apparel, Accessories & Luxury Goods
51,645 Common Units in Aden & Anais Holdings, Inc.						5,165		—		(15)
						5,165		—
AI Sirona (Luxembourg) Acquisition S.a.r.l.			Pharmaceuticals
Second Lien Term Loan, EURIBOR+ 7.25 % cash due 9/28/2026	7.94	%		€	24,838	27,752		22,143		(6)(11)(15)
						27,752		22,143
AIP RD Buyer Corp.			Distributors
Second Lien Term Loan, SOFR+ 7.75 % cash due 12/23/2029	10.88	%		$	14,414	14,154		13,910		(6)(15)
14,410 Common Units in RD Holding LP						1,352		1,291		(15)
						15,506		15,201
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+ 8.50 % PIK due 12/29/2023				23,338		22,057		22,141		(6)(15)
						22,057		22,141
Altice France S.A.			Integrated Telecommunication Services
Fixed Rate Bond, 5.50 % cash due 10/15/2029				4,050		3,518		3,057		(11)
						3,518		3,057
Alvogen Pharma US, Inc.			Pharmaceuticals
First Lien Term Loan, SOFR+ 7.50 % cash due 6/30/2025	11.20	%		13,134		12,847		13,068		(6)(15)
						12,847		13,068
Alvotech Holdings S.A.			Biotechnology							(13)
Tranche A Fixed Rate Bond 10.00 % cash due 6/24/2025				24,043		23,747		23,923		(11)(15)
Tranche B Fixed Rate Bond 10.00 % cash due 6/24/2025				23,522		23,264		23,404		(11)(15)
587,930 Common Shares in Alvotech SA						5,308		3,974		(11)
124,780 Seller Earn Out Shares in Alvotech SA						485		212		(11)(15)
						52,804		51,513
American Auto Auction Group, LLC			Consumer Finance
Second Lien Term Loan, SOFR+ 8.75 % cash due 1/2/2029	12.30	%		14,760		14,492		13,284		(6)(15)
						14,492		13,284
American Tire Distributors, Inc.			Distributors
First Lien Term Loan, LIBOR+ 6.25 % cash due 10/20/2028	9.03	%		9,895		9,772		9,293		(6)
						9,772		9,293
Amplify Finco Pty Ltd.			Movies & Entertainment
First Lien Term Loan, LIBOR+ 4.25 % cash due 11/26/2026	7.92	%		15,220		13,973		14,687		(6)(11)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash due 11/26/2027	11.67	%		12,500		12,188		11,958		(6)(11)(15)
						26,161		26,645

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
Anastasia Parent, LLC			Personal Products
First Lien Term Loan, LIBOR+ 3.75 % cash due 8/11/2025	7.42	%		$	2,736	$	2,260	$	2,189	(6)
						2,260		2,189
Ankura Consulting Group LLC			Research & Consulting Services
Second Lien Term Loan, LIBOR+ 8.00 % cash due 3/19/2029	10.78	%		4,346		4,281		3,813		(6)(15)
						4,281		3,813
Apptio, Inc.			Application Software
First Lien Term Loan, LIBOR+ 6.00 % cash due 1/10/2025	8.46	%		34,458		33,737		33,738		(6)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 1/10/2025	8.46	%		892		863		846		(6)(15)(19)
						34,600		34,584
APX Group Inc.			Electrical Components & Equipment
Fixed Rate Bond, 5.75 % cash due 7/15/2029				2,075		1,733		1,645		(11)
						1,733		1,645
Ardonagh Midco 3 PLC			Insurance Brokers
First Lien Term Loan, EURIBOR+ 7.00 % cash due 7/14/2026	8.00	%		€	1,964	2,176		1,927		(6)(11)(15)
First Lien Term Loan, SONIA+ 7.00 % cash due 7/14/2026	9.19	%		£	18,636	23,139		20,826		(6)(11)(15)
First Lien Term Loan, LIBOR+ 5.75 % cash due 7/14/2026	8.81	%		$	10,519	10,357		10,328		(6)(11)(15)
First Lien Delayed Draw Term Loan, SONIA+ 5.75 % cash due 7/14/2026				£	—	( 44 )		—		(6)(11)(15)(19)
						35,628		33,081
ASP Unifrax Holdings, Inc.			Trading Companies & Distributors
Fixed Rate Bond, 7.50 % cash due 9/30/2029				$	5,500	5,408		3,641
Fixed Rate Bond, 5.25 % cash due 9/30/2028				2,500		2,220		1,926
						7,628		5,567
Associated Asphalt Partners, LLC			Construction Materials
First Lien Term Loan, LIBOR+ 5.25 % cash due 4/5/2024	8.06	%		2,501		2,331		1,934		(6)
						2,331		1,934
Astra Acquisition Corp.			Application Software
First Lien Term Loan, LIBOR+ 5.25 % cash due 10/25/2028	8.37	%		5,640		5,482		4,822		(6)
						5,482		4,822
athenahealth Group Inc.			Health Care Technology
18,635 Shares of Series A Preferred Stock in Minerva Holdco, Inc., 10.75 %						18,264		16,575		(15)
						18,264		16,575
Athenex, Inc.			Pharmaceuticals
First Lien Term Loan, 11.00 % cash due 6/19/2026				13,346		12,929		12,812		(11)(15)
First Lien Revenue Interest Financing Term Loan due 5/31/2031				8,309		8,264		8,309		(11)(15)
328,149 Common Stock Warrants (exercise price $ 0.4955 expiration date 6/19/2027						973		16		(11)(15)
						22,166		21,137
Aurora Lux Finco S.À.R.L.			Airport Services
First Lien Term Loan, LIBOR+ 6.00 % cash due 12/24/2026	8.78	%		22,425		22,086		21,326		(6)(11)(15)
						22,086		21,326
The Avery			Real Estate Operating Companies
First Lien Term Loan in T8 Urban Condo Owner, LLC, LIBOR+ 7.30 % cash due 2/17/2023	10.44	%		15,674		15,605		15,682		(6)(15)
Subordinated Debt in T8 Senior Mezz LLC, LIBOR+ 12.50 % cash due 2/17/2023	16.17	%		3,789		3,774		3,800		(6)(15)
						19,379		19,482
BAART Programs, Inc.			Health Care Services
First Lien Delayed Draw Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	8.12	%		2,546		2,503		2,395		(6)(15)(19)
Second Lien Term Loan, LIBOR+ 8.50 % cash due 6/11/2028	11.62	%		7,166		7,059		6,915		(6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+ 8.50 % cash due 6/11/2028	11.62	%		4,227		4,070		3,839		(6)(15)(19)
						13,632		13,149

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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

Berner Food & Beverage, LLC			Soft Drinks
First Lien Term Loan, LIBOR+ 5.50 % cash due 7/30/2027	8.31	%		$	33,078	$	32,612	$	32,053	(6)(15)
First Lien Revolver, PRIME+ 4.50 % cash due 7/30/2026	10.75	%		1,702		1,660		1,617		(6)(15)(19)
						34,272		33,670
BioXcel Therapeutics, Inc.			Pharmaceuticals
First Lien Term Loan, 10.25 % cash due 4/19/2027				5,322		5,111		5,114		(11)(15)
First Lien Delayed Draw Term Loan, 10.25 % cash due 4/19/2027				—		—		—		(11)(15)(19)
First Lien Revenue Interest Financing Term Loan due 9/30/2032				2,353		2,353		2,353		(11)(15)
First Lien Revenue Interest Financing Delayed Draw Term Loan due 9/30/2032				—		—		—		(11)(15)(19)
21,177 Common Stock Warrants (exercise price $ 20.04 ) expiration date 4/19/2029						125		98		(11)(15)
						7,589		7,565
Blackhawk Network Holdings, Inc.			Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+ 7.00 % cash due 6/15/2026	9.50	%		30,625		30,276		29,017		(6)
						30,276		29,017
Blumenthal Temecula, LLC			Automotive Retail
First Lien Term Loan, 9.00 % cash due 9/24/2023				3,979		3,980		3,960		(15)
1,293,324 Preferred Units in Unstoppable Automotive AMV, LLC						1,293		1,280		(15)
298,460 Preferred Units in Unstoppable Automotive VMV, LLC						298		295		(15)
298,460 Common Units in Unstoppable Automotive AMV, LLC						298		349		(15)
						5,869		5,884
Cadence Aerospace, LLC			Aerospace & Defense
First Lien Term Loan, LIBOR+ 6.50 % cash 2.00 % PIK due 11/14/2023	9.31	%		14,294		13,471		13,143		(6)(15)
						13,471		13,143
Carvana Co.			Automotive Retail
Fixed Rate Bond, 5.625 % cash due 10/1/2025				6,700		5,825		4,724		(11)
						5,825		4,724
CCO Holdings LLC			Cable & Satellite
Fixed Rate Bond, 4.50 % cash due 5/1/2032				2,097		1,746		1,603		(11)
						1,746		1,603
CircusTrix Holdings, LLC			Leisure Facilities
First Lien Term Loan, LIBOR+ 5.50 % cash due 7/16/2023	8.62	%		10,692		10,004		10,209		(6)(15)
						10,004		10,209
CITGO Holding, Inc.			Oil & Gas Refining & Marketing
Fixed Rate Bond, 9.25 % cash due 8/1/2024				7,857		7,857		7,807
						7,857		7,807
CITGO Petroleum Corp.			Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+ 6.25 % cash due 3/28/2024	9.37	%		795		770		797		(6)
						770		797
Clear Channel Outdoor Holdings Inc.			Advertising
Fixed Rate Bond, 7.50 % cash due 6/1/2029				4,311		4,311		3,132		(11)
Fixed Rate Bond, 5.125 % cash due 8/15/2027				1,374		1,229		1,163		(11)
Fixed Rate Bond, 7.75 % cash due 4/15/2028				676		648		512		(11)
						6,188		4,807
Condor Merger Sub Inc.			Systems Software
Fixed Rate Bond, 7.375 % cash due 2/15/2030				8,420		8,243		6,900
						8,243		6,900
Continental Intermodal Group LP			Oil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+ 8.50 % cash due 1/28/2025	11.62	%		22,537		21,642		20,396		(6)(15)
Common Stock Warrants expiration date 7/28/2025						648		457		(15)
						22,290		20,853

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
Convergeone Holdings, Inc.			IT Consulting & Other Services
First Lien Term Loan, LIBOR+ 5.00 % cash due 1/4/2026	8.12	%		$	11,913	$	11,697	$	8,596	(6)
						11,697		8,596
Conviva Inc.			Application Software
517,851 Shares of Series D Preferred Stock						605		894		(15)
						605		894
CorEvitas, LLC			Health Care Technology
First Lien Term Loan, SOFR+ 5.75 % cash due 12/13/2025	8.88	%		13,712		13,554		13,583		(6)(15)
First Lien Revolver, PRIME+ 4.75 % cash due 12/13/2025	11.00	%		916		898		898		(6)(15)(19)
1,099 Class A2 Common Units in CorEvitas Holdings, L.P.						690		2,340		(15)
						15,142		16,821
Covetrus, Inc.			Health Care Distributors
First Lien Term Loan, SOFR+ 5.00 % cash due 9/20/2029	7.65	%		10,336		9,716		9,681		(6)
						9,716		9,681
Coyote Buyer, LLC			Specialty Chemicals
First Lien Term Loan, LIBOR+ 6.00 % cash due 2/6/2026	8.81	%		18,200		17,790		17,843		(6)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 2/6/2025				—		( 13 )		( 26 )		(6)(15)(19)
						17,777		17,817
Delivery Hero FinCo LLC			Internet & Direct Marketing Retail
First Lien Term Loan, SOFR+ 5.75 % cash due 8/12/2027	8.49	%		4,988		4,882		4,757		(6)(11)
						4,882		4,757
Delta Leasing SPV II LLC			Specialized Finance
Subordinated Delayed Draw Term Loan, 10.00 % cash due 8/31/2029				4,183		4,183		4,183		(11)(15)(19)
419 Series C Preferred Units in Delta Financial Holdings LLC						419		419		(11)(15)
2.09 Common Units in Delta Financial Holdings LLC						2		2		(11)(15)
31.37 Common Warrants (exercise price $ 1.00 )						—		—		(11)(15)
						4,604		4,604
Delta Topco, Inc.			Systems Software
Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/1/2028	9.34	%		6,680		6,647		5,934		(6)
						6,647		5,934
Dialyze Holdings, LLC			Health Care Equipment
First Lien Term Loan, LIBOR+ 9.00 % cash 2.00 % PIK due 8/4/2026	12.67	%		24,396		23,083		22,993		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 9.00 % cash 2.00 % PIK due 8/4/2026				—		( 135 )		( 129 )		(6)(15)(19)
5,403,823 Class A Warrants (exercise price $ 1.00 ) expiration date 8/4/2028						1,405		1,297		(15)
						24,353		24,161
Digital.AI Software Holdings, Inc.			Application Software
First Lien Term Loan, LIBOR+ 7.00 % cash due 2/10/2027	9.91	%		9,902		9,599		9,793		(6)(15)
First Lien Revolver, LIBOR+ 6.50 % cash due 2/10/2027	9.41	%		251		228		239		(6)(15)(19)
						9,827		10,032
DirecTV Financing, LLC			Cable & Satellite
First Lien Term Loan, LIBOR+ 5.00 % cash due 8/2/2027	8.12	%		19,242		18,970		17,973		(6)
						18,970		17,973
DTI Holdco, Inc.			Research & Consulting Services
First Lien Term Loan, SOFR+ 4.75 % cash due 4/26/2029	7.33	%		5,000		4,906		4,760		(6)
						4,906		4,760
Eagleview Technology Corporation			Application Software
Second Lien Term Loan, LIBOR+ 7.50 % cash due 8/14/2026	11.17	%		8,974		8,884		8,503		(6)(15)
						8,884		8,503

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
EOS Fitness Opco Holdings, LLC			Leisure Facilities
487.5 Class A Preferred Units, 12 %						$	488	$	966	(15)
12,500 Class B Common Units						—		—		(15)
						488		966
Establishment Labs Holdings Inc.			Health Care Technology
First Lien Term Loan, 3.00 % cash 6.00 % PIK due 4/21/2027				$	10,418	10,275		10,231		(11)(15)
First Lien Delayed Draw Term Loan, 3.00 % cash 6.00 % PIK due 4/21/2027						3		—		(11)(15)(19)
						10,278		10,231
Fairbridge Strategic Capital Funding LLC			Real Estate Operating Companies							(20)
First Lien Delayed Draw Term Loan, 9.00 % cash due 12/24/2028				27,850		27,850		27,850		(15)(19)
2,500 Warrant Units (exercise price $ 0.01 ) expiration date 11/24/2031						—		3		(11)(15)
						27,850		27,853
FINThrive Software Intermediate Holdings, Inc.			Health Care Technology
Second Lien Term Loan, LIBOR+ 6.75 % cash due 12/17/2029	9.87	%		25,061		24,685		21,646		(6)
						24,685		21,646
Fortress Biotech, Inc.			Biotechnology
First Lien Term Loan, 11.00 % cash due 8/27/2025				9,466		9,071		9,008		(11)(15)
331,200 Common Stock Warrants (exercise price $ 3.20 ) expiration date 8/27/2030						405		66		(11)(15)
						9,476		9,074
Frontier Communications Holdings, LLC			Integrated Telecommunication Services
Fixed Rate Bond, 6.00 % cash due 1/15/2030				4,881		4,420		3,845		(11)
						4,420		3,845
GKD Index Partners, LLC			Specialized Finance
First Lien Term Loan, LIBOR+ 7.00 % cash due 6/29/2023	10.67	%		25,128		24,915		24,851		(6)(15)
First Lien Revolver, LIBOR+ 7.00 % cash due 6/29/2023	10.60	%		1,280		1,268		1,262		(6)(15)(19)
						26,183		26,113
Global Medical Response, Inc.			Health Care Services
First Lien Term Loan, LIBOR+ 4.25 % cash due 3/14/2025	7.37	%		5,572		5,435		4,848		(6)
						5,435		4,848
Grove Hotel Parcel Owner, LLC			Hotels, Resorts & Cruise Lines
First Lien Term Loan, SOFR+ 8.00 % cash due 6/21/2027	11.04	%		14,311		14,041		14,060		(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 8.00 % cash due 6/21/2027				—		( 54 )		( 50 )		(6)(15)(19)
First Lien Revolver, SOFR+ 8.00 % cash due 6/21/2027				—		( 27 )		( 25 )		(6)(15)(19)
						13,960		13,985
Harbor Purchaser Inc.			Education Services
First Lien Term Loan, SOFR+ 5.25 % cash due 4/9/2029	8.38	%		9,392		9,080		8,582		(6)
						9,080		8,582
iCIMs, Inc.			Application Software
First Lien Term Loan, SOFR+ 6.75 % cash due 8/18/2028	9.49	%		19,203		18,874		18,867		(6)(15)
First Lien Delayed Draw Term Loan, SOFR+ 6.75 % cash due 8/18/2028				—		—		—		(6)(15)(19)
First Lien Revolver, SOFR+ 6.75 % cash due 8/18/2028				—		( 31 )		( 32 )		(6)(15)(19)
						18,843		18,835
Immucor, Inc.			Health Care Supplies
First Lien Term Loan, LIBOR+ 5.75 % cash due 7/2/2025	9.42	%		8,569		8,401		8,407		(6)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash 3.50 % PIK due 10/2/2025	11.67	%		22,619		22,162		22,275		(6)(15)
						30,563		30,682

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
Impel Neuropharma, Inc.			Health Care Technology
First Lien Revenue Interest Financing Term Loan due 2/15/2031				$	13,083	$	13,083	$	13,083	(15)
First Lien Term Loan, SOFR+ 8.75 % cash due 3/17/2027	12.45	%		12,161		11,944		11,942		(6)(15)
						25,027		25,025
Innocoll Pharmaceuticals Limited			Health Care Technology
First Lien Term Loan, 11.00 % cash due 1/26/2027				6,817		6,553		6,408		(11)(15)
First Lien Delayed Draw Term Loan, 11.00 % cash due 1/26/2027				—		—		—		(11)(15)(19)
56,999 Tranche A Warrant Shares (exercise price $ 4.23 ) expiration date 1/26/2029						135		609		(11)(15)
						6,688		7,017
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, SOFR+ 5.00 % cash due 3/29/2024	8.55	%		18,660		18,567		18,134		(6)(15)
Second Lien Term Loan, LIBOR+ 8.50 % cash due 9/29/2024	12.17	%		13,674		13,514		13,154		(6)(15)
						32,081		31,288
INW Manufacturing, LLC			Personal Products
First Lien Term Loan, LIBOR+ 5.75 % cash due 3/25/2027	9.42	%		35,625		34,806		31,528		(6)(15)
						34,806		31,528
IPC Corp.			Application Software
First Lien Term Loan, LIBOR+ 6.50 % cash due 10/1/2026	9.44	%		34,357		33,612		32,639		(6)(15)
						33,612		32,639
Ivanti Software, Inc.			Application Software
Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/1/2028	10.33	%		10,247		10,196		7,702		(6)
						10,196		7,702
Jazz Acquisition, Inc.			Aerospace & Defense
First Lien Term Loan, LIBOR+ 7.50 % cash due 1/29/2027	10.62	%		36,234		35,170		36,392		(6)(15)
Second Lien Term Loan, LIBOR+ 8.00 % cash due 6/18/2027	11.12	%		528		478		481		(6)
						35,648		36,873
Kings Buyer, LLC			Environmental & Facilities Services
First Lien Term Loan, LIBOR+ 6.50 % cash due 10/29/2027	10.17	%		13,623		13,487		13,351		(6)(15)
First Lien Revolver, LIBOR+ 6.50 % cash due 10/29/2027	10.17	%		329		311		292		(6)(15)(19)
						13,798		13,643
LaserShip, Inc.			Air Freight & Logistics
Second Lien Term Loan, LIBOR+ 7.50 % cash due 5/7/2029	10.38	%		2,394		2,370		1,867		(6)(15)
						2,370		1,867
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	8.67	%		41,008		40,243		39,573		(6)(15)
						40,243		39,573
Liquid Environmental Solutions Corporation			Environmental & Facilities Services
Second Lien Term Loan, LIBOR+ 8.50 % cash due 11/30/2026	11.38	%		4,357		4,285		4,226		(6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+ 8.50 % cash due 11/30/2026	11.38	%		2,370		2,323		2,265		(6)(15)(19)
450.75 Class A2 Units in LES Group Holdings, L.P.						451		451		(15)
						7,059		6,942

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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

LSL Holdco, LLC			Health Care Distributors
First Lien Term Loan, LIBOR+ 6.00 % cash due 1/31/2028	9.12	%		$	19,236	$	18,894	$	18,707	(6)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 1/31/2028	9.12	%		1,710		1,672		1,651		(6)(15)(19)
						20,566		20,358
LTI Holdings, Inc.			Electronic Components
Second Lien Term Loan, LIBOR+ 6.75 % cash due 9/6/2026	9.87	%		2,140		2,092		1,890		(6)
						2,092		1,890
Marinus Pharmaceuticals, Inc.			Pharmaceuticals
First Lien Term Loan, 11.50 % cash due 5/11/2026				17,203		16,954		16,644		(11)(15)
First Lien Delayed Draw Term Loan, 11.50 % cash due 5/11/2026				—		—		—		(11)(15)(19)
						16,954		16,644
Mesoblast, Inc.			Biotechnology
First Lien Term Loan, 8.00 % cash 1.75 % PIK due 11/19/2026				7,215		6,650		6,440		(11)(15)
First Lien Delayed Draw Term Loan, 8.00 % cash 1.75 % PIK due 11/19/2026				—		1		—		(11)(15)(19)
209,588 Warrant Shares (exercise price $ 7.26 ) expiration date 11/19/2028						480		170		(11)(15)
						7,131		6,610
MHE Intermediate Holdings, LLC			Diversified Support Services
First Lien Term Loan, SOFR+ 6.00 % cash due 7/21/2027	9.50	%		18,390		18,088		17,691		(6)(15)
First Lien Revolver, SOFR+ 6.00 % cash due 7/21/2027				—		( 23 )		( 54 )		(6)(15)(19)
						18,065		17,637
Mindbody, Inc.			Internet Services & Infrastructure
First Lien Term Loan, LIBOR+ 7.00 % cash 1.50 % PIK due 2/14/2025	10.64	%		45,665		44,689		44,523		(6)(15)
First Lien Revolver, LIBOR+ 8.00 % cash due 2/14/2025				—		( 54 )		( 100 )		(6)(15)(19)
						44,635		44,423
Mosaic Companies, LLC			Home Improvement Retail
First Lien Term Loan, LIBOR+ 6.75 % cash due 7/2/2026	9.89	%		46,499		45,802		45,421		(6)(15)
						45,802		45,421
MRI Software LLC			Application Software
First Lien Term Loan, LIBOR+ 5.50 % cash due 2/10/2026	9.17	%		29,565		29,128		28,734		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 5.50 % cash due 2/10/2026				—		( 12 )		( 96 )		(6)(15)(19)
First Lien Revolver, LIBOR+ 5.50 % cash due 2/10/2026				—		( 13 )		( 51 )		(6)(15)(19)
						29,103		28,587
Navisite, LLC			Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+ 8.50 % cash due 12/30/2026	12.17	%		22,560		22,241		21,524		(6)(15)
						22,241		21,524
NeuAG, LLC			Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+ 10.50 % cash due 9/11/2024	14.17	%		50,459		49,301		51,972		(6)(15)
						49,301		51,972
NFP Corp.			Other Diversified Financial Services
Fixed Rate Bond 6.875 % cash due 8/15/2028				10,191		9,773		7,966
						9,773		7,966
NN, Inc.			Industrial Machinery
First Lien Term Loan, LIBOR+ 6.88 % cash due 9/19/2026	9.99	%		58,713		57,655		56,805		(6)(11)(15)
						57,655		56,805
OEConnection LLC			Application Software
First Lien Term Loan, LIBOR+ 4.00 % cash due 9/25/2026	7.12	%		3,323		3,162		3,207		(6)
Second Lien Term Loan, LIBOR+ 7.00 % cash due 9/25/2027	10.05	%		7,519		7,389		7,237		(6)(15)
						10,551		10,444

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
OTG Management, LLC			Airport Services
First Lien Term Loan, LIBOR+ 2.00 % cash 8.00 % PIK due 9/1/2025	5.08	%		$	21,557	$	21,267	$	21,557	(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 2.00 % cash 8.00 % PIK due 9/1/2025				—		( 31 )		—		(6)(15)(19)
						21,236		21,557
P & L Development, LLC			Pharmaceuticals
Fixed Rate Bond, 7.75 % cash due 11/15/2025				7,776		7,820		5,846
						7,820		5,846
Park Place Technologies, LLC			Internet Services & Infrastructure
First Lien Term Loan, SOFR+ 5.00 % cash due 11/10/2027	8.13	%		9,850		9,460		9,374		(6)
						9,460		9,374
Performance Health Holdings, Inc.			Health Care Distributors
First Lien Term Loan, LIBOR+ 6.00 % cash due 7/12/2027	8.88	%		17,976		17,690		17,537		(6)(15)
						17,690		17,537
PFNY Holdings, LLC			Leisure Facilities
First Lien Term Loan, LIBOR+ 7.00 % cash due 12/31/2026	9.28	%		26,154		25,712		25,893		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 7.00 % cash due 12/31/2026	9.25	%		2,228		2,186		2,203		(6)(15)(19)
First Lien Revolver, LIBOR+ 7.00 % cash due 12/31/2026				—		( 21 )		( 13 )		(6)(15)(19)
						27,877		28,083
Planview Parent, Inc.			Application Software
Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/18/2028	10.92	%		28,627		28,198		27,482		(6)(15)
						28,198		27,482
Pluralsight, LLC			Application Software
First Lien Term Loan, LIBOR+ 8.00 % cash due 4/6/2027	10.68	%		48,689		47,951		47,155		(6)(15)
First Lien Revolver, LIBOR+ 8.00 % cash due 4/6/2027				—		( 53 )		( 111 )		(6)(15)(19)
						47,898		47,044
PRGX Global, Inc.			Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+ 6.75 % cash due 3/3/2026	10.42	%		33,775		32,931		33,116		(6)(15)
First Lien Revolver, LIBOR+ 6.75 % cash due 3/3/2026				—		( 34 )		( 49 )		(6)(15)(19)
80,515 Class B Common Units						79		89		(15)
						32,976		33,156
Profrac Holdings II, LLC			Industrial Machinery
First Lien Term Loan, SOFR+ 8.50 % cash due 3/4/2025	10.01	%		23,275		22,722		22,810		(6)(15)
						22,722		22,810
Project Boost Purchaser, LLC			Application Software
Second Lien Term Loan, LIBOR+ 8.00 % cash due 5/31/2027	11.12	%		5,250		5,168		5,047		(6)(15)
						5,168		5,047
Quantum Bidco Limited			Food Distributors
First Lien Term Loan, SONIA+ 6.00 % cash due 1/29/2028	8.39	%		£	3,501	4,646		3,367		(6)(11)(15)
						4,646		3,367
QuorumLabs, Inc.			Application Software
64,887,669 Junior-2 Preferred Stock						375		—		(15)
						375		—
Radiology Partners Inc.			Health Care Distributors
First Lien Term Loan, LIBOR+ 4.25 %cash due 7/9/2025	7.33	%		$	3,400	3,202		2,880		(6)
Fixed Rate Bond, 9.25 % cash due 2/1/2028				4,755		4,720		3,109
						7,922		5,989
Relativity ODA LLC			Application Software
First Lien Term Loan, LIBOR+ 7.50 % PIK due 5/12/2027				24,692		24,265		24,101		(6)(15)
First Lien Revolver, LIBOR+ 6.50 % cash due 5/12/2027				—		( 43 )		( 64 )		(6)(15)(19)
						24,222		24,037
Renaissance Holding Corp.			Diversified Banks
Second Lien Term Loan, LIBOR+ 7.00 % cash due 5/29/2026	10.12	%		3,542		3,515		3,402		(6)
						3,515		3,402

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
RP Escrow Issuer LLC			Health Care Distributors
Fixed Rate Bond, 5.25 % cash due 12/15/2025				$	1,325	$	1,218	$	1,097
						1,218		1,097
RumbleOn, Inc.			Automotive Retail
First Lien Term Loan, LIBOR+ 8.25 % cash due 8/31/2026	11.92	%		37,656		35,775		36,187		(6)(11)(15)
First Lien Delayed Draw Term Loan, LIBOR+ 8.25 % cash due 8/31/2026	11.92	%		11,393		10,583		10,760		(6)(11)(15)(19)
164,660 Class B Common Stock Warrants (exercise price $ 33.00 ) expiration date 2/28/2023						1,202		74		(11)(15)
						47,560		47,021
Sabert Corporation			Metal & Glass Containers
First Lien Term Loan, LIBOR+ 4.50 % cash due 12/10/2026	7.63	%		1,691		1,610		1,623		(6)
						1,610		1,623
ShareThis, Inc.			Application Software
345,452 Series C Preferred Stock Warrants (exercise price $ 3.0395 ) expiration date 3/4/2024						367		—		(15)
						367		—
SiO2 Medical Products, Inc.			Metal & Glass Containers
First Lien Term Loan, 5.50 % cash 8.50 % PIK due 12/21/2026				46,121		45,413		45,295		(15)
415.34 Common Stock Warrants (exercise price $ 4,920.75 ) expiration date 7/31/2028						681		681		(15)
						46,094		45,976
SM Wellness Holdings, Inc.			Health Care Services
Second Lien Term Loan, LIBOR+ 8.00 % cash due 4/16/2029	10.74	%		9,109		8,972		8,289		(6)(15)
						8,972		8,289
SonicWall US Holdings Inc.			Technology Distributors
Second Lien Term Loan, LIBOR+ 7.50 % cash due 5/18/2026	10.48	%		3,195		3,163		2,997		(6)(15)
						3,163		2,997
Sorrento Therapeutics, Inc.			Biotechnology
50,000 Common Stock Units						197		79		(11)
						197		79
Spanx, LLC			Apparel Retail
First Lien Term Loan, LIBOR+ 5.25 % cash due 11/20/2028	8.30	%		4,534		4,455		4,427		(6)(15)
First Lien Revolver, LIBOR+ 5.25 % cash due 11/18/2027	8.03	%		866		813		796		(6)(15)(19)
						5,268		5,223
SPX Flow, Inc.			Industrial Machinery
First Lien Term Loan, SOFR+ 4.50 % cash due 4/5/2029	7.63	%		1,500		1,410		1,393		(6)
						1,410		1,393
SumUp Holdings Luxembourg S.À.R.L.			Other Diversified Financial Services
First Lien Term Loan, EURIBOR+ 8.50 % cash due 3/10/2026	10.00	%		€	16,911	19,414		16,360		(6)(11)(15)
						19,414		16,360
Sunland Asphalt & Construction, LLC			Construction & Engineering
First Lien Term Loan, LIBOR+ 6.00 % cash due 1/13/2026	8.88	%		$	42,618	41,654		41,723		(6)(15)
						41,654		41,723
Supermoose Borrower, LLC			Application Software
First Lien Term Loan, LIBOR+ 3.75 % cash due 8/29/2025	7.42	%		3,466		3,141		3,056		(6)
						3,141		3,056
SVP-Singer Holdings Inc.			Home Furnishings
First Lien Term Loan, LIBOR+ 6.75 % cash due 7/28/2028	10.42	%		20,766		19,550		18,188		(6)(15)
						19,550		18,188
Swordfish Merger Sub LLC			Auto Parts & Equipment
Second Lien Term Loan, LIBOR+ 6.75 % cash due 2/2/2026	9.81	%		12,500		12,474		11,469		(6)(15)
						12,474		11,469

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
Tacala, LLC			Restaurants
Second Lien Term Loan, LIBOR+ 7.50 % cash due 2/4/2028	10.62	%		$	9,448	$	9,338	$	8,692	(6)
						9,338		8,692
Tahoe Bidco B.V.			Application Software
First Lien Term Loan, LIBOR+ 6.00 % cash due 9/29/2028	8.68	%		23,215		22,815		22,843		(6)(11)(15)
First Lien Revolver, LIBOR+ 6.00 % cash due 10/1/2027				—		( 29 )		( 28 )		(6)(11)(15)(19)
						22,786		22,815
Tecta America Corp.			Construction & Engineering
Second Lien Term Loan, LIBOR+ 8.50 % cash due 4/9/2029	11.62	%		5,203		5,125		5,034		(6)(15)
						5,125		5,034
Telestream Holdings Corporation			Application Software
First Lien Term Loan, SOFR+ 9.25 % cash due 10/15/2025	12.11	%		18,323		17,956		17,865		(6)(15)
First Lien Revolver, SOFR+ 9.25 % cash due 10/15/2025	12.20	%		1,231		1,210		1,187		(6)(15)(19)
						19,166		19,052
TerSera Therapeutics LLC			Pharmaceuticals
Second Lien Term Loan, LIBOR+ 9.50 % cash due 3/30/2026	13.17	%		29,663		29,352		29,031		(6)(15)
668,879 Common Units of TerSera Holdings LLC						2,028		4,077		(15)
						31,380		33,108
TGNR HoldCo LLC			Integrated Oil & Gas
Subordinated Debt, 11.50 % cash due 5/14/2026				4,984		4,866		4,872		(10)(11)(15)
						4,866		4,872
Thrasio, LLC			Internet & Direct Marketing Retail
First Lien Term Loan, LIBOR+ 7.00 % cash due 12/18/2026	11.17	%		37,494		36,569		35,807		(6)(15)
8,434 Shares of Series C-3 Preferred Stock in Thrasio Holdings, Inc.						101		69		(15)
284,650.32 Shares of Series C-2 Preferred Stock in Thrasio Holdings, Inc.						2,409		2,320		(15)
48,352 Shares of Series D Preferred Stock in Thrasio Holdings, Inc.						979		979		(15)
23,201 Shares of Series X Preferred Stock in Thrasio Holdings, Inc.						22,986		26,487		(15)(19)
						63,044		65,662
TIBCO Software Inc.			Application Software
First Lien Term Loan, SOFR+ 4.50 % cash due 3/20/2029	8.15	%		12,032		10,949		10,827		(6)
						10,949		10,827
Touchstone Acquisition, Inc.			Health Care Supplies
First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2028	9.12	%		6,016		5,908		5,895		(6)(15)
						5,908		5,895
Uniti Group LP			Specialized REITs
Fixed Rate Bond, 6.50 % cash due 2/15/2029				4,500		4,060		3,026		(11)
Fixed Rate Bond, 4.75 % cash due 4/15/2028				300		258		238		(11)
						4,318		3,264
Win Brands Group LLC			Housewares & Specialties
First Lien Term Loan, LIBOR+ 15.00 % cash due 1/22/2026	19.64	%		2,316		2,293		2,264		(6)(15)
3,621 Class F Warrants in Brand Value Growth LLC (exercise price $ 0.01 ) expiration date 1/25/2027						—		192		(15)
						2,293		2,456

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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
Windstream Services II, LLC			Integrated Telecommunication Services
First Lien Term Loan, LIBOR+ 6.25 % cash due 9/21/2027	9.37	%		$	25,499	$	24,632	$	23,204	(6)
18,032 Shares of Common Stock in Windstream Holdings II, LLC						216		296		(15)
109,420 Warrants in Windstream Holdings II, LLC						1,842		1,799		(15)
						26,690		25,299
WP CPP Holdings, LLC			Aerospace & Defense
First Lien Term Loan, LIBOR+ 3.75 % cash due 4/30/2025	6.56	%		7,564		6,989		6,795		(6)
Second Lien Term Loan, LIBOR+ 7.75 % cash due 4/30/2026	10.56	%		6,000		5,855		5,070		(6)(15)
						12,844		11,865
WPEngine, Inc.			Application Software
First Lien Term Loan, LIBOR+ 6.00 % cash due 3/27/2026	10.19	%		40,536		39,947		40,131		(6)(15)
						39,947		40,131
WWEX Uni Topco Holdings, LLC			Air Freight & Logistics
Second Lien Term Loan, LIBOR+ 7.00 % cash due 7/26/2029	10.67	%		5,000		4,925		4,538		(6)(15)
						4,925		4,538
Zayo Group Holdings, Inc.			Alternative Carriers
Fixed Rate Bond, 4.00 % cash due 3/1/2027				250		212		201
						212		201
Zep Inc.			Specialty Chemicals
Second Lien Term Loan, LIBOR+ 8.25 % cash due 8/11/2025	11.92	%		19,578		19,542		16,152		(6)(15)
						19,542		16,152
Zephyr Bidco Limited			Specialized Finance
Second Lien Term Loan, SONIA+ 7.50 % cash due 7/23/2026	9.72	%		£	18,000	23,804		16,552		(6)(11)(15)
						23,804		16,552
Total Non-Control/Non-Affiliate Investments ( 180.9 % of net assets)						$	2,330,096	$	2,253,750
Total Portfolio Investments ( 200.2 % of net assets)						$	2,617,754	$	2,494,111
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares						$	5,261	$	5,261
Other cash accounts						21,103		21,103
Total Cash and Cash Equivalents and Restricted Cash ( 2.1 % of net assets)						$	26,364	$	26,364
Total Portfolio Investments and Cash and Cash Equivalents and Restricted Cash ( 202.4 % of net assets)						$	2,644,118	$	2,520,475


Derivative Instrument	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Counterparty	Cumulative Unrealized Appreciation /(Depreciation)
Foreign currency forward contract	$	43,179	€	41,444	11/10/2022	JPMorgan Chase Bank, N.A.	$	2,466
Foreign currency forward contract	$	45,692	£	37,033	11/10/2022	JPMorgan Chase Bank, N.A.	4,323
							$	6,789

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

$( 41,969 )

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2022

(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.

(6) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. Certain loans may also be indexed to SOFR or SONIA. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of September 30, 2022, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 3.12%, the 90-day LIBOR at 3.67%, the 180-day LIBOR at 4.17%, the 360-day LIBOR at 4.78%, the PRIME at 6.25%, the 30-day SOFR at 3.03%, the 90-day SOFR at 3.55%, the SONIA at 1.69%, the 30-day EURIBOR at 0.69%, the 90-day EURIBOR at 0.99% and the 180-day EURIBOR at 0.38%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR and SONIA based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(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 accompanying notes to the Consolidated Financial Statements for transactions during the year ended September 30, 2022 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(10) This investment represents a participation interest in the underlying securities shown.

(11) Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2022, qualifying assets represented 75.7 % of the Company's total assets and non-qualifying assets represented 24.3 % of the Company's total assets.

(12) Income producing through payment of dividends or distributions.

(13) One half of the Seller Earn Out Shares will vest if, at any time through June 16, 2027, the Alvotech SA common share price is at or above a VWAP of $ 15.00 per share for any ten trading days within any twenty trading day period, and the other half will vest, if at any time during such period, the common share price is at or above a VWAP of $ 20.00 per share for any ten trading days within any twenty trading day period.

(14) See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.

(15) As of September 30, 2022, these investments were categorized as Level 3 within the fair value hierarchy established by FASB guidance under ASC 820.

(16) This investment was valued using net asset value as a practical expedient for fair value. Consistent with ASC 820, these investments are excluded from the hierarchical levels.

(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.

(20) This investment was renamed during the three months ended March 31, 2022. For periods prior to March 31, 2022, this investment was referenced as Realfi Strategic Capital Funding LLC.

See notes to Consolidated Financial Statements.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 1. Organization

Oaktree Specialty Lending Corporation (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 U.S. federal income 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"), 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. 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 10. In 2019, Brookfield Corporation (f/k/a Brookfield Asset Management Inc.) ("Brookfield") acquired a majority economic interest in Oaktree Capital Group, LLC. Oaktree and its affiliates operate as an independent business within Brookfield, with their own product offerings and investment, marketing and support teams.

On March 19, 2021, the Company acquired Oaktree Strategic Income Corporation (“OCSI”), pursuant to that certain Agreement and Plan of Merger (the “OCSI 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, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OCSI Merger Agreement, OCSI was merged with and into the Company in a two-step transaction, with the Company as the surviving company (the "OCSI Merger”).

On January 23, 2023, the Company acquired Oaktree Strategic Income II, Inc. (“OSI2”) pursuant to that certain Agreement and Plan of Merger (the “OSI2 Merger Agreement”), dated as of September 14, 2022, by and among OSI2, the Company, Project Superior Merger Sub, Inc., a wholly-owned subsidiary of the Company, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OSI2 Merger Agreement, OSI2 was merged with and into the Company in a two-step transaction with the Company as the surviving company (the “OSI2 Merger”). See Note 14.

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").

Certain prior period amounts have been reclassified to conform to the current period presentation. All per share amounts and common shares outstanding as of and for the three months ended December 31, 2022 and all prior periods reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

Use of Estimates:

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Changes in the economic and political environments, financial markets and any other parameters used in determining these estimates could cause actual results to differ and such differences could be material. Significant estimates include the valuation of investments and revenue recognition.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Consolidation:

The accompanying Consolidated Financial Statements include the accounts of Oaktree Specialty Lending Corporation and its consolidated subsidiaries. Each consolidated subsidiary is wholly-owned and, as such, consolidated into the Consolidated Financial Statements. Certain subsidiaries that hold investments are treated as pass through entities for U.S. federal income tax purposes. The assets of certain of the consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Specialty Lending Corporation or any of its other subsidiaries.

As 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 Oaktree'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. Oaktree'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.

Oaktree seeks to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If Oaktree is unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within Oaktree's set threshold, Oaktree seeks to obtain a quote directly from a broker making a market for the asset. Oaktree evaluates the quotations provided by 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, Oaktree does not adjust any of the prices received from these sources.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that the Company is deemed to control under the 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 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. Oaktree 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 Oaktree 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, Oaktree 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.

Oaktree estimates the fair value of certain privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.

Rule 2a-5 under the Investment Company Act permits boards of directors of registered investment companies and Business Development Companies to either (i) choose to determine fair value in good faith or (ii) designate a valuation designee tasked with determining fair value in good faith, subject to the board’s oversight. The Company's Board of Directors has designated Oaktree to serve as its valuation designee effective September 8, 2022.

Oaktree undertakes a multi-step valuation process each quarter in connection with determining the fair value of the Company's investments:

• The quarterly valuation process begins with each portfolio company or investment being initially valued by Oaktree's valuation team;

• Preliminary valuations are then reviewed and discussed with management of Oaktree;

• Separately, independent valuation firms 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;

• 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 valuation report with Oaktree, and Oaktree responds and supplements the valuation report to reflect any discussions between Oaktree and the Audit Committee; and

• Oaktree, as valuation designee, determines the fair value of each investment in the Company's portfolio.

The fair value of the Company's investments as of December 31, 2022 and September 30, 2022 was determined by Oaktree, as the Company's valuation designee. The Company has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of its 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.

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.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

With the exception of the line items entitled "deferred financing costs," "deferred offering costs," "other assets," "deferred tax asset, net," "credit facilities payable" and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities. The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "due from broker," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.

Foreign Currency Translation:

The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

Derivative Instruments:

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the Company's exposure to fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market at the applicable forward rate. Unrealized appreciation (depreciation) on foreign currency forward contracts is recorded within derivative assets or derivative liabilities on the Consolidated Statements of Assets and Liabilities by counterparty on a net basis, not taking into account collateral posted which is recorded separately, if applicable. Purchases and settlements of foreign currency forward contracts having the same settlement date and counterparty are generally settled net and any realized gains or losses are recognized on the settlement date. The Company does not utilize hedge accounting with respect to foreign currency forward contracts and as such, the Company recognizes its foreign currency forward contracts at fair value with changes included in the net unrealized appreciation (depreciation) on the Consolidated Statements of Operations.

Interest Rate Swaps

The Company uses an interest rate swap to hedge some of the Company's fixed rate debt. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship, and therefore the periodic payments are recognized as components of interest expense in the Consolidated Statements of Operations. Depending on the nature of the balance at period end, the fair value of the interest rate swap is either included as a derivative asset or derivative liability on the Company's Consolidated Statements of Assets and Liabilities. The change in fair value of the interest rate swap is offset by a change in the carrying value of the fixed rate debt. Any amounts paid to the counterparty to cover collateral obligations under the terms of the interest rate swap agreement are included in due from broker on the Company's Consolidated Statements of Assets and Liabilities.

Investment Income:

Interest Income

Interest income, adjusted for accretion of original issue discount ("OID"), is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash and the portfolio

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

company, in management’s judgment, is likely to continue timely payment of its remaining obligations. As of each of December 31, 2022 and September 30, 2022, there were no investments on non-accrual status.

In connection with its investment in a portfolio company, the Company sometimes receives nominal cost equity that is valued as part of the negotiation process with the portfolio company. When the Company receives nominal cost equity, the Company allocates its cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.

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 non-recurring 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 cash equivalents are included on the Company's Consolidated Schedule of Investments and cash equivalents are classified as Level 1 assets.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

As of December 31, 2022 and September 30, 2022, included in restricted cash was $ 1.9 million and $ 2.8 million, respectively, that was held at Wells Fargo Bank, N.A. in connection with the 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 $ 1.9 million and $ 2.8 million as of December 31, 2022 and September 30, 2022, respectively, until t he occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the Citibank Facility.

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 U.S. federal income tax on the portion of its taxable income and gains distributed currently to stockholders as a dividend. Depending on the level of taxable income earned during a taxable year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next taxable year. The Company would then incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. The Company anticipates timely distribution of its taxable income within the tax rules under Subchapter M of the Code. The Company did not incur a U.S. federal excise tax for calendar year 2021. For the calendar year 2022, the Company incurred $ 0.1 million of excise tax. The Company does not expect to incur a U.S. federal excise tax for calendar year 2023.

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 for financial reporting purposes, and portfolio investments held by them are included in the Company’s Consolidated Financial

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

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 2019, 2020 and 2021. 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.

Recently Adopted Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting if certain criteria are met. The guidance is effective from March 12, 2020 through December 31, 2022. As of December 31, 2022, the adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements .

Note 3. Portfolio Investments

As of December 31, 2022, 219.9 % of net assets at fair value, or $ 2.6 billion, was invested in 156 portfolio companies, including (i) $ 136.8 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) $ 49.5 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 December 31, 2022, 1.6 % of net assets at fair value, or $ 19.2 million, was invested in cash and cash equivalents (including $ 1.9 million of restricted cash). In comparison, as of September 30, 2022, 200.2 % of net assets at fair value, or $ 2.5 billion, was invested in 149 portfolio investments, including (i) $ 117.0 million in subordinated notes and LLC equity interests of SLF JV I and (ii) $ 50.3 million in subordinated notes and LLC equity interests of Glick JV. As of September 30, 2022, 2.1 % of net assets at fair value, or $ 26.4 million, was invested in cash and cash equivalents (including $ 2.8 million of restricted cash). As of December 31, 2022, 86.3 % of the Company's portfolio at fair value consisted of senior secured debt investments and 8.5 % consisted of subordinated debt investments, including the debt investments in the JVs. As of September 30, 2022, 86.9 % of the Company's portfolio at fair value consisted of senior secured debt investments and 8.1 % consisted of subordinated debt investments, including the debt investments in the JVs.

The Company also held equity investments in certain of its portfolio companies consisting of common stock, preferred stock, warrants, limited partnership interests or LLC equity interests. These instruments generally do not produce a current return but are held for potential investment appreciation and capital gain.

During the three months ended December 31, 2022 and 2021, the Company recorded net realized gains (losses) of $( 3.2 ) million and $ 9.3 million, respectively. During the three months ended December 31, 2022 and 2021, the Company recorded net unrealized depreciation of $ 23.0 million and $ 4.6 million, respectively.

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 December 31, 2022 and September 30, 2022 at cost and fair value was as follows:


	December 31, 2022				September 30, 2022
	Cost		Fair Value		Cost		Fair Value
Investments in debt securities	$	2,428,251	$	2,343,380	$	2,294,392	$	2,223,329
Investments in equity securities	132,355		113,190		127,596		103,534
Debt investments in the JVs	162,617		162,192		146,444		146,533
Equity investments in the JVs	54,791		24,108		49,322		20,715
Total	$	2,778,014	$	2,642,870	$	2,617,754	$	2,494,111

The following table presents the composition of the Company's debt investments as of December 31, 2022 and September 30, 2022 at fixed rates and floating rates:


	December 31, 2022				September 30, 2022
	Fair Value		% of Debt Portfolio		Fair Value		% of Debt Portfolio
Floating rate debt securities, including the debt investments in the JVs	$	2,188,193	87.33	%	$	2,049,644	86.49	%
Fixed rate debt securities	317,379		12.67		320,218		13.51
Total	$	2,505,572	100.00	%	$	2,369,862	100.00	%

The following table presents the financial instruments carried at fair value as of December 31, 2022 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)	$	—	$	233,393	$	2,047,842	$	—	$	2,281,235
Investments in debt securities (subordinated, including the debt investments in the JVs)	—		44,706		179,631		—		224,337
Investments in equity securities (preferred)	—		—		80,625		—		80,625
Investments in equity securities (common and warrants, including LLC equity interests of the JVs)	5,923		—		26,642		24,108		56,673
Total investments at fair value	5,923		278,099		2,334,740		24,108		2,642,870
Cash equivalents	3,421		—		—		—		3,421
Total assets at fair value	$	9,344	$	278,099	$	2,334,740	$	24,108	$	2,646,291
Derivative liability	$	—	$	44,139	$	—	$	—	$	44,139
Total liabilities at fair value	$	—	$	44,139	$	—	$	—	$	44,139

__________

(a) In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. These investments are generally not redeemable. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table presents the financial instruments carried at fair value as of September 30, 2022 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:


	Level 1		Level 2		Level 3		Measured at Net Asset Value (a)		Total
Investments in debt securities (senior secured)	$	—	$	255,803	$	1,910,606	$	—	$	2,166,409
Investments in debt securities (subordinated, including the debt investments in the JVs)	—		44,065		159,388		—		203,453
Investments in equity securities (preferred)	—		—		79,523		—		79,523
Investments in equity securities (common and warrants, including LLC equity interests of the JVs)	4,053		—		19,958		20,715		44,726
Total investments at fair value	4,053		299,868		2,169,475		20,715		2,494,111
Cash equivalents	5,261		—		—		—		5,261
Derivative assets	—		6,789		—		—		6,789
Total assets at fair value	$	9,314	$	306,657	$	2,169,475	$	20,715	$	2,506,161
Derivative liability	$	—	$	41,969	$	—	$	—	$	41,969
Total liabilities at fair value	$	—	$	41,969	$	—	$	—	$	41,969

__________

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 September 30, 2022 to December 31, 2022 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 September 30, 2022	$	1,910,606	$	159,388	$	79,523	$	19,958	$	2,169,475
Purchases	177,599		21,104		2,579		2,181		203,463
Sales and repayments	( 55,885 )		( 699 )		—		( 48 )		( 56,632 )
Transfers in (a)	19,075		—		—		—		19,075
Capitalized PIK interest income	5,763		6		—		—		5,769
Accretion of OID	4,114		398		—		—		4,512
Net unrealized appreciation (depreciation)	( 12,271 )		( 566 )		( 1,477 )		4,505		( 9,809 )
Net realized gains (losses)	( 1,159 )		—		—		46		( 1,113 )
Fair value as of December 31, 2022	$	2,047,842	$	179,631	$	80,625	$	26,642	$	2,334,740
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of December 31, 2022 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended December 31, 2022	$	( 12,398 )	$	( 566 )	$	( 1,477 )	$	4,505	$	( 9,936 )

__________

(a) There was a transfer into Level 3 from Level 2 for an investment during the three months ended December 31, 2022 as a result of a change in the number of market quotes available and/or a change in market liquidity.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table provides a roll-forward in the changes in fair value from September 30, 2021 to December 31, 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 September 30, 2021	$	1,878,536	$	176,317	$	63,565	$	43,163	$	2,161,581
Purchases	191,087		3,589		979		1,441		197,096
Sales and repayments	( 131,946 )		( 20,185 )		—		( 6,503 )		( 158,634 )
Transfers in (a)	3,178		—		—		—		3,178
Transfers out (a)	( 17,070 )		—		—		—		( 17,070 )
Capitalized PIK interest income	6,172		313		—		—		6,485
Accretion of OID	5,378		819		—		—		6,197
Net unrealized appreciation (depreciation)	( 9,877 )		516		1,006		6,636		( 1,719 )
Net realized gains (losses)	8,638		—		—		( 2,795 )		5,843
Fair value as of December 31, 2021	$	1,934,096	$	161,369	$	65,550	$	41,942	$	2,202,957
Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of December 31, 2021 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended December 31, 2021	$	( 717 )	$	368	$	1,006	$	1,139	$	1,796

__________

(a) There were transfers into/out of Level 3 from/to Level 2 for certain investments during the three months ended December 31, 2021 as a result of a change in the number of market quotes available and/or a change in market liquidity.

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 December 31, 2022:

Asset

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted
Average (a)

Senior Secured Debt

1,692,264

Market Yield

(b)

9.0 %

33.0 %

14.0 %

14,297

Enterprise Value

EBITDA Multiple

(c)

5.0 x

7.0 x

6.0 x

38,581

Transaction Precedent

Transaction Price

(d)

N/A

302,700

Broker Quotations

Broker Quoted Price

(e)

N/A

Subordinated Debt

13,706

Market Yield

(b)

10.0 %

20.0 %

11.4 %

3,733

Broker Quotations

Broker Quoted Price

(e)

N/A

Debt Investments in the JVs

162,192

Enterprise Value

N/A

(f)

N/A

Preferred & Common Equity

30,226

Enterprise Value

Revenue Multiple

(c)

0.1 x

4.3 x

0.5 x

73,822

Enterprise Value

EBITDA Multiple

(c)

3.0 x

20.0 x

14.6 x

1,600

Enterprise Value

Asset Multiple

(c)

0.9 x

1.1 x

1.0 x

1,619

Transaction Precedent

Transaction Price

(d)

N/A

Total

2,334,740

__________

(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.

(d) Used when there is an observable transaction or pending event for the investment.

(e) Oaktree generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. Oaktree evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated.

(f) Oaktree determined the value of its subordinated notes of each JV based on the total assets less the total liabilities senior to the subordinated notes held at such JV in an amount not exceeding par under the EV technique.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2022:

Asset

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted
Average (a)

Senior Secured Debt

1,599,148

Market Yield

(b)

9.0 %

30.0 %

13.7 %

14,333

Enterprise Value

EBITDA Multiple

(c)

5.0 x

7.0 x

6.0 x

297,125

Broker Quotations

Broker Quoted Price

(e)

N/A

Subordinated Debt

12,855

Market Yield

(b)

10.0 %

19.0 %

13.8 %

Debt Investments in the JVs

146,533

Enterprise Value

N/A

(f)

N/A

Preferred & Common Equity

61,693

Enterprise Value

Revenue Multiple

(c)

0.4 x

10.1 x

4.3 x

36,913

Enterprise Value

EBITDA Multiple

(c)

3.0 x

20.0 x

11.4 x

Enterprise Value

Asset Multiple

(c)

0.9 x

1.1 x

1.0 x

872

Transaction Precedent

Transaction Price

(d)

N/A

Total

2,169,475

__________

(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.

(d) Used when there is an observable transaction or pending event for the investment.

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 December 31, 2022 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	$	695,000	$	695,000	$	—	$	—	$	695,000
Citibank Facility payable	165,000		165,000		—		—		165,000
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)	297,303		286,734		—		286,734		—
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)	306,321		296,835		—		296,835		—
Total	$	1,463,624	$	1,443,569	$	—	$	583,569	$	860,000

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, 2022 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	$	540,000	$	540,000	$	—	$	—	$	540,000
Citibank Facility payable	160,000		160,000		—		—		160,000
2025 Notes payable (carrying value is net of unamortized financing costs and unaccreted discount)	296,991		283,077		—		283,077		—
2027 Notes payable (carrying value is net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment)	304,052		294,028		—		294,028		—
Total	$	1,301,043	$	1,277,105	$	—	$	577,105	$	700,000

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. Oaktree used market quotes as of the valuation date to estimate the fair value of the Company's 3.500 % notes due 2025 (the "2025 Notes") and 2.700 % notes due 2027 (the "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:


	December 31, 2022				September 30, 2022
Cost:			% of Total Investments				% of Total Investments
Senior secured debt	$	2,359,295	84.94	%	$	2,227,245	85.08	%
Debt investments in the JVs	162,617		5.85	%	146,444		5.59	%
Preferred equity	87,878		3.16	%	85,300		3.26	%
Subordinated debt	68,956		2.48	%	67,147		2.57	%
LLC equity interests of the JVs	54,791		1.97	%	49,322		1.88	%
Common equity and warrants	44,477		1.60	%	42,296		1.62	%
Total	$	2,778,014	100.00	%	$	2,617,754	100.00	%


	December 31, 2022						September 30, 2022
Fair Value:			% of Total Investments		% of Net Assets				% of Total Investments		% of Net Assets
Senior secured debt	$	2,281,235	86.32	%	189.78	%	$	2,166,409	86.86	%	173.93	%
Debt investments in the JVs	162,192		6.14	%	13.49	%	146,533		5.88	%	11.77	%
Preferred equity	80,625		3.05	%	6.71	%	79,523		3.19	%	6.38	%
Subordinated debt	62,145		2.35	%	5.17	%	56,920		2.28	%	4.57	%
Common equity and warrants	32,565		1.23	%	2.71	%	24,011		0.96	%	1.93	%
LLC equity interests of the JVs	24,108		0.91	%	2.01	%	20,715		0.83	%	1.66	%
Total	$	2,642,870	100.00	%	219.87	%	$	2,494,111	100.00	%	200.24	%

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:


	December 31, 2022				September 30, 2022
Cost:			% of Total Investments				% of Total Investments
Northeast	$	772,197	27.78	%	$	747,420	28.55	%
Midwest	403,393		14.52	%	373,236		14.26	%
Southeast	397,717		14.32	%	356,041		13.60	%
West	351,871		12.67	%	358,306		13.69	%
International	350,510		12.62	%	301,242		11.51	%
Southwest	204,143		7.35	%	221,308		8.45	%
South	164,094		5.91	%	168,819		6.45	%
Northwest	134,089		4.83	%	91,382		3.49	%
Total	$	2,778,014	100.00	%	$	2,617,754	100.00	%


	December 31, 2022						September 30, 2022
Fair Value:			% of Total Investments		% of Net Assets				% of Total Investments		% of Net Assets
Northeast	$	716,827	27.12	%	59.63	%	$	696,368	27.93	%	55.90	%
Midwest	384,219		14.54	%	31.97	%	356,934		14.31	%	28.66	%
Southeast	380,276		14.39	%	31.64	%	344,567		13.82	%	27.66	%
International	342,447		12.96	%	28.49	%	279,646		11.21	%	22.45	%
West	330,698		12.51	%	27.51	%	345,251		13.84	%	27.72	%
Southwest	195,818		7.41	%	16.29	%	214,984		8.62	%	17.26	%
South	160,150		6.06	%	13.32	%	166,230		6.66	%	13.35	%
Northwest	132,435		5.01	%	11.02	%	90,131		3.61	%	7.24	%
Total	$	2,642,870	100.00	%	219.87	%	$	2,494,111	100.00	%	200.24	%

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 December 31, 2022 and September 30, 2022:


	December 31, 2022				September 30, 2022
Cost:			% of Total Investments				% of Total Investments
Application Software	$	435,165	15.66	%	$	391,938	14.98	%
Multi-Sector Holdings (1)	229,676		8.27		195,766		7.48
Pharmaceuticals	131,307		4.73		126,508		4.83
Data Processing & Outsourced Services	118,058		4.25		120,477		4.60
Biotechnology	111,745		4.02		109,960		4.20
Health Care Technology	110,251		3.97		100,084		3.82
Specialized Finance	87,523		3.15		80,864		3.09
Industrial Machinery	81,483		2.93		81,787		3.12
Health Care Services	65,732		2.37		58,674		2.24
Internet & Direct Marketing Retail	65,585		2.36		67,926		2.59
Aerospace & Defense	61,993		2.23		61,963		2.37
Construction & Engineering	60,828		2.19		60,996		2.33
Health Care Distributors	58,320		2.10		57,112		2.18
Other Diversified Financial Services	57,241		2.06		29,300		1.12
Personal Products	53,190		1.91		53,214		2.03
Automotive Retail	51,663		1.86		59,254		2.26
Auto Parts & Equipment	51,067		1.84		12,474		0.48
Real Estate Operating Companies	49,980		1.80		47,585		1.82
Fertilizers & Agricultural Chemicals	49,271		1.77		49,301		1.88
Internet Services & Infrastructure	49,271		1.77		54,095		2.07
Metal & Glass Containers	47,128		1.70		47,704		1.82
Home Improvement Retail	45,266		1.63		45,802		1.75
Soft Drinks	43,935		1.58		34,272		1.31
Airport Services	43,748		1.57		43,322		1.65
Leisure Facilities	41,182		1.48		39,768		1.52
Insurance Brokers	39,268		1.41		35,628		1.36
Diversified Support Services	38,167		1.37		37,992		1.45
Specialty Chemicals	37,298		1.34		37,319		1.43
Health Care Supplies	36,693		1.32		36,471		1.39
Real Estate Services	36,233		1.30		40,243		1.54
Integrated Telecommunication Services	34,635		1.25		34,628		1.32
Electrical Components & Equipment	33,813		1.22		33,814		1.29
Advertising	27,507		0.99		28,245		1.08
Movies & Entertainment	26,202		0.94		26,161		1.00
Distributors	25,262		0.91		25,278		0.97
Airlines	24,034		0.87		—		—
Health Care Equipment	21,838		0.79		24,353		0.93
Environmental & Facilities Services	21,156		0.76		20,857		0.80
Oil & Gas Storage & Transportation	19,934		0.72		22,290		0.85
Home Furnishings	19,554		0.70		19,550		0.75
Systems Software	14,895		0.54		14,890		0.57
Consumer Finance	14,503		0.52		14,492		0.55
Hotels, Resorts & Cruise Lines	13,943		0.50		13,960		0.53
IT Consulting & Other Services	11,684		0.42		11,697		0.45
Restaurants	9,343		0.34		9,338		0.36
Education Services	9,070		0.33		9,080		0.35
Cable & Satellite	8,012		0.29		20,716		0.79
Research & Consulting Services	7,848		0.28		9,187		0.35
Apparel, Accessories & Luxury Goods	5,165		0.19		5,165		0.20
Air Freight & Logistics	4,925		0.18		7,295		0.28
Integrated Oil & Gas	4,873		0.18		4,866		0.19
Apparel Retail	4,727		0.17		5,268		0.20
Food Distributors	4,655		0.17		4,646		0.18
Specialized REITs	4,334		0.16		4,318		0.16
Real Estate Development	4,278		0.15		—		—
Diversified Banks	3,515		0.13		3,515		0.13
Technology Distributors	3,163		0.11		3,163		0.12
Construction Materials	2,353		0.08		2,331		0.09
Housewares & Specialties	2,217		0.08		2,293		0.09
Electronic Components	2,095		0.08		2,092		0.08
Alternative Carriers	214		0.01		212		0.01
Oil & Gas Refining & Marketing	—		—		8,627		0.33
Trading Companies & Distributors	—		—		7,628		0.29
	$	2,778,014	100.00	%	$	2,617,754	100.00	%

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)


	December 31, 2022						September 30, 2022
Fair Value:			% of Total Investments		% of Net Assets				% of Total Investments		% of Net Assets
Application Software	$	422,862	15.95	%	35.18	%	$	384,589	15.43	%	30.87	%
Multi-Sector Holdings (1)	198,904		7.53		16.55		167,248		6.71		13.43
Pharmaceuticals	127,414		4.82		10.60		119,511		4.79		9.59
Biotechnology	115,489		4.37		9.61		108,465		4.35		8.71
Data Processing & Outsourced Services	106,224		4.02		8.84		111,335		4.46		8.94
Health Care Technology	103,479		3.92		8.61		97,315		3.90		7.81
Industrial Machinery	79,791		3.02		6.64		81,008		3.25		6.50
Specialized Finance	79,751		3.02		6.63		73,087		2.93		5.87
Internet & Direct Marketing Retail	66,001		2.50		5.49		70,419		2.82		5.65
Aerospace & Defense	61,490		2.33		5.12		61,881		2.48		4.97
Construction & Engineering	60,938		2.31		5.07		61,188		2.45		4.91
Health Care Distributors	54,898		2.08		4.57		54,662		2.19		4.39
Other Diversified Financial Services	54,080		2.05		4.50		24,326		0.98		1.95
Fertilizers & Agricultural Chemicals	52,292		1.98		4.35		51,972		2.08		4.17
Health Care Services	51,260		1.94		4.26		45,943		1.84		3.69
Automotive Retail	50,681		1.92		4.22		57,629		2.31		4.63
Real Estate Operating Companies	50,127		1.90		4.17		48,062		1.93		3.86
Auto Parts & Equipment	50,015		1.89		4.16		11,469		0.46		0.92
Internet Services & Infrastructure	48,973		1.85		4.07		53,797		2.16		4.32
Personal Products	48,903		1.85		4.07		50,150		2.01		4.03
Home Improvement Retail	45,127		1.71		3.75		45,421		1.82		3.65
Metal & Glass Containers	44,763		1.69		3.72		47,599		1.91		3.82
Soft Drinks	44,387		1.68		3.69		33,670		1.35		2.70
Airport Services	43,267		1.64		3.60		42,883		1.72		3.44
Leisure Facilities	40,578		1.54		3.38		39,258		1.57		3.15
Insurance Brokers	39,057		1.48		3.25		33,081		1.33		2.66
Health Care Supplies	37,776		1.43		3.14		36,577		1.47		2.94
Diversified Support Services	35,626		1.35		2.96		36,712		1.47		2.95
Real Estate Services	35,621		1.35		2.96		39,573		1.59		3.18
Electrical Components & Equipment	32,970		1.25		2.74		32,933		1.32		2.64
Integrated Telecommunication Services	32,041		1.21		2.67		32,201		1.29		2.59
Specialty Chemicals	31,476		1.19		2.62		33,969		1.36		2.73
Movies & Entertainment	26,470		1.00		2.20		26,645		1.07		2.14
Advertising	26,022		0.98		2.16		26,948		1.08		2.16
Airlines	25,864		0.98		2.15		—		—		—
Distributors	24,569		0.93		2.04		24,494		0.98		1.97
Health Care Equipment	22,703		0.86		1.89		24,161		0.97		1.94
Environmental & Facilities Services	20,675		0.78		1.72		20,585		0.83		1.65
Oil & Gas Storage & Transportation	18,113		0.69		1.51		20,853		0.84		1.67
Home Furnishings	17,917		0.68		1.49		18,188		0.73		1.46
Hotels, Resorts & Cruise Lines	13,904		0.53		1.16		13,985		0.56		1.12
Systems Software	12,104		0.46		1.01		12,834		0.51		1.03
Consumer Finance	11,439		0.43		0.95		13,284		0.53		1.07
Education Services	8,938		0.34		0.74		8,582		0.34		0.69
Restaurants	8,610		0.33		0.72		8,692		0.35		0.70
Cable & Satellite	7,968		0.30		0.66		19,576		0.78		1.57
Research & Consulting Services	7,165		0.27		0.60		8,573		0.34		0.69
IT Consulting & Other Services	6,963		0.26		0.58		8,596		0.34		0.69
Integrated Oil & Gas	4,847		0.18		0.40		4,872		0.20		0.39
Apparel Retail	4,675		0.18		0.39		5,223		0.21		0.42
Real Estate Development	4,267		0.16		0.35		—		—		—
Air Freight & Logistics	4,191		0.16		0.35		6,405		0.26		0.51
Food Distributors	3,599		0.14		0.30		3,367		0.13		0.27
Diversified Banks	3,315		0.13		0.28		3,402		0.14		0.27
Specialized REITs	3,230		0.12		0.27		3,264		0.13		0.26
Technology Distributors	2,971		0.11		0.25		2,997		0.12		0.24
Housewares & Specialties	2,265		0.09		0.19		2,456		0.10		0.20
Construction Materials	1,928		0.07		0.16		1,934		0.08		0.16
Electronic Components	1,712		0.06		0.14		1,890		0.08		0.15
Alternative Carriers	185		0.01		0.02		201		0.01		0.02
Oil & Gas Refining & Marketing	—		—		—		8,604		0.34		0.69
Trading Companies & Distributors	—		—		—		5,567		0.22		0.45
Total	$	2,642,870	100.00	%	219.87	%	$	2,494,111	100.00	%	200.24	%

___________________

(1) This industry includes the Company's investments in the JVs.

As of December 31, 2022 and September 30, 2022, the Company had no single investment that represented greater than 10% of the total investment portfolio at fair value. Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses, may fluctuate and in any given period can be highly concentrated among several investments.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

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 (the "SLF JV I Notes") are senior in right of payment to SLF JV I LLC equity interests and subordinated in right of payment to SLF JV I’s secured debt. As of December 31, 2022 and September 30, 2022, 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 is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act.

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 of borrowings (subject to borrowing base and other limitations) as of each of December 31, 2022 and September 30, 2022. 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 December 31, 2022, the reinvestment period of the SLF JV I Deutsche Bank Facility was scheduled to expire May 3, 2023 and the maturity date was May 3, 2028. As of December 31, 2022, 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, 3-month LIBOR plus 2.25 % for the following year and 3-month LIBOR plus 2.50 % thereafter, in each case with a 0.125 % LIBOR floor. $ 226.0 million and $ 230.0 million of borrowings were outstanding under the SLF JV I Deutsche Bank Facility as of December 31, 2022 and September 30, 2022, respectively.

As of December 31, 2022 and September 30, 2022, SLF JV I had total assets of $ 409.4 million and $ 385.2 million, respectively. SLF JV I's portfolio primarily consisted of senior secured loans to 59 and 60 portfolio companies as of December 31, 2022 and September 30, 2022, respectively. The portfolio companies in SLF JV I are in industries similar to those in which the Company may invest directly. As of December 31, 2022, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $ 136.8 million in aggregate, at fair value. As of September 30, 2022, the Company's investment in SLF JV I consisted of LLC equity interests and SLF JV I Notes of $ 117.0 million in aggregate, at fair value.

As of December 31, 2022, the Company and Kemper had funded approximately $ 190.5 million to SLF JV I, of which $ 166.7 million was from the Company. As of September 30, 2022, the Company and Kemper had funded approximately $ 165.5 million to SLF JV I, of which $ 144.8 million was from the Company. As of December 31, 2022, the Company had aggregate commitments to fund SLF JV I of $ 13.1 million, of which approximately $ 9.8 million was to fund additional SLF JV I Notes and approximately $ 3.3 million was to fund LLC equity interests in SLF JV I. During the three months ended December 31, 2022, the Company contributed $ 16.4 million to fund additional SLF JV I Notes and approximately $ 5.5 million to fund additional LLC equity interests in SLF JV I. As of September 30, 2022, the Company had aggregate commitments to fund SLF JV I of $ 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.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Below is a summary of SLF JV I's portfolio, followed by a listing of the individual loans in SLF JV I's portfolio as of December 31, 2022 and September 30, 2022:


	December 31, 2022	September 30, 2022
Senior secured loans (1)	$ 382,148	$ 383,194
Weighted average interest rate on senior secured loans (2)	9.55 %	8.33 %
Number of borrowers in SLF JV I	59	60
Largest exposure to a single borrower (1)	$ 11,337	$ 10,093
Total of five largest loan exposures to borrowers (1)	$ 51,990	$ 48,139

__________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

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 December 31, 2022


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	7.82	%	Diversified Support Services	$	10,067	$	10,008	$	9,883
ADB Companies, LLC	First Lien Term Loan, SOFR+ 6.25 % cash due 12/18/2025	11.34	%	Construction & Engineering	8,413		8,296		8,267		(4)
Altice France S.A.	First Lien Term Loan, LIBOR+ 4.00 % cash due 8/14/2026	8.65	%	Integrated Telecommunication Services	2,992		2,844		2,791
Alvogen Pharma US, Inc.	First Lien Term Loan, SOFR+ 7.50 % cash due 6/30/2025	12.23	%	Pharmaceuticals	9,150		9,060		9,104		(4)
American Rock Salt Company LLC	First Lien Term Loan, LIBOR+ 4.00 % cash due 6/9/2028	8.38	%	Diversified Metals & Mining	1,995		1,836		1,883
American Tire Distributors, Inc.	First Lien Term Loan, LIBOR+ 6.25 % cash due 10/20/2028	10.61	%	Distributors	4,860		4,800		4,471		(4)
Amplify Finco Pty Ltd.	First Lien Term Loan, LIBOR+ 4.25 % cash due 11/26/2026	8.98	%	Movies & Entertainment	7,780		7,702		7,501		(4)
Anastasia Parent, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/11/2025	8.48	%	Personal Products	1,535		1,200		1,149		(4)
Apptio, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 1/10/2025	9.94	%	Application Software	4,615		4,584		4,523		(4)
Apptio, Inc.	First Lien Revolver, LIBOR+ 6.00 % cash due 1/10/2025	9.94	%	Application Software	231		228		223		(4)(5)
Total Apptio, Inc.					4,846		4,812		4,746
ASP-R-PAC Acquisition Co LLC	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2027	10.38	%	Paper Packaging	4,166		4,097		4,012
ASP-R-PAC Acquisition Co LLC	First Lien Revolver, LIBOR+ 6.00 % cash due 12/29/2027			Paper Packaging	—		( 8 )		( 18 )		(5)
Total ASP-R-PAC Acquisition Co LLC					4,166		4,089		3,994
Astra Acquisition Corp.	First Lien Term Loan, LIBOR+ 5.25 % cash due 10/25/2028	9.63	%	Application Software	5,052		4,866		4,484		(4)
Asurion, LLC	First Lien Term Loan, SOFR+ 4.00 % cash due 8/19/2028	8.68	%	Property & Casualty Insurance	4,988		4,752		4,463
Asurion, LLC	Second Lien Term Loan, LIBOR+ 5.25 % cash due 1/20/2029	9.63	%	Property & Casualty Insurance	4,346		3,995		3,404
Total Asurion, LLC					9,334		8,747		7,867
athenahealth Group Inc.	First Lien Term Loan, SOFR+ 3.50 % cash due 2/15/2029	7.82	%	Health Care Technology	2,558		2,353		2,316
athenahealth Group Inc.	First Lien Delayed Draw Term Loan, SOFR+ 3.50 % cash due 2/15/2029	7.82	%	Health Care Technology	109		74		68		(5)
Total athenahealth Group Inc.					2,667		2,427		2,384
Aurora Lux Finco S.À.R.L.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/24/2026	10.32	%	Airport Services	6,321		6,232		6,012		(4)
BAART Programs, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	9.07	%	Health Care Services	6,354		6,295		6,176
BAART Programs, Inc.	First Lien Delayed Draw Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	9.73	%	Health Care Services	1,767		1,747		1,682		(4)(5)
Total BAART Programs, Inc.					8,121		8,042		7,858
Blackhawk Network Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.00 % cash due 6/15/2025	7.08	%	Data Processing & Outsourced Services	9,550		9,542		9,331
Boxer Parent Company Inc.	First Lien Term Loan, LIBOR+ 3.75 % cash due 10/2/2025	8.13	%	Systems Software	1,994		1,917		1,914
BYJU's Alpha, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 11/24/2026	10.70	%	Application Software	7,425		7,335		5,988
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
Cengage Learning, Inc.	First Lien Term Loan, LIBOR+ 4.75 % cash due 7/14/2026	7.81	%	Education Services	2,992		2,734		2,698

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
Centerline Communications, LLC	First Lien Term Loan, SOFR+5.50% cash due 8/10/2023	10.43	%	Wireless Telecommunication Services	$	6,345	$	6,242	$	6,231
Centerline Communications, LLC	First Lien Revolver, SOFR+ 5.50 % cash due 8/10/2027			Wireless Telecommunication Services	—		( 10 )		( 10 )		(5)
Total Centerline Communications, LLC					6,345		6,232		6,221
Convergeone Holdings, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 1/4/2026	9.38	%	IT Consulting & Other Services	7,354		7,200		4,309		(4)
Covetrus, Inc.	First Lien Term Loan, SOFR+ 5.00 % cash due 9/20/2029	9.58	%	Health Care Distributors	5,375		5,053		5,050		(4)
Curium Bidco S.à.r.l.	First Lien Term Loan, LIBOR+ 4.00 % cash due 7/9/2026	8.73	%	Biotechnology	7,800		7,726		7,644
Curium Bidco S.à.r.l.	First Lien Term Loan, LIBOR+ 4.25 % cash due 12/2/2027	8.98	%	Biotechnology	997		978		975
Total Curium Bidco S.à.r.l.					8,797		8,704		8,619
DirecTV Financing, LLC	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/2/2027	9.38	%	Cable & Satellite	6,277		6,178		6,124		(4)
Domtar Corporation	First Lien Term Loan, LIBOR+ 5.50 % cash due 11/30/2028	9.79	%	Paper Products	4,090		4,055		3,926
DTI Holdco, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 4/26/2029	8.84	%	Research & Consulting Services	7,980		7,835		7,372		(4)
eResearch Technology, Inc.	First Lien Term Loan, LIBOR+ 4.50 % cash due 2/4/2027	8.88	%	Application Software	7,811		7,681		6,915
Gibson Brands, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/11/2028	9.13	%	Leisure Products	7,425		7,351		5,495
Global Medical Response, Inc.	First Lien Term Loan, LIBOR+ 4.25 % cash due 10/2/2025	8.42	%	Health Care Services	1,260		1,246		891
Harbor Purchaser Inc.	First Lien Term Loan, SOFR+ 5.25 % cash due 4/9/2029	9.67	%	Education Services	7,980		7,764		7,613		(4)
Indivior Finance S.À.R.L.	First Lien Term Loan, SOFR+ 5.25 % cash due 6/30/2026	10.09	%	Pharmaceuticals	7,388		7,282		7,277
INW Manufacturing, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 3/25/2027	10.48	%	Personal Products	9,375		9,172		8,016		(4)
Iris Holding, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 6/28/2028	8.94	%	Metal & Glass Containers	4,988		4,630		4,548
LABL, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 10/29/2028	9.38	%	Office Services & Supplies	2,992		2,858		2,848
LaserAway Intermediate Holdings II, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 10/14/2027	9.76	%	Health Care Services	7,425		7,306		7,295
Lightbox Intermediate, L.P.	First Lien Term Loan, LIBOR+ 5.00 % cash due 5/9/2026	9.73	%	Real Estate Services	11,337		11,152		10,941		(4)
LogMeIn, Inc.	First Lien Term Loan, LIBOR+ 4.75 % cash due 8/31/2027	9.14	%	Application Software	7,840		7,736		5,080
LTI Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.50 % cash due 9/6/2025	7.88	%	Electronic Components	7,347		7,270		7,050
McAfee Corp.	First Lien Term Loan, SOFR+ 3.75 % cash due 3/1/2029	7.97	%	Systems Software	1,995		1,876		1,862
Mindbody, Inc.	First Lien Term Loan, LIBOR+ 7.00 % cash due 2/14/2025	11.72	%	Internet Services & Infrastructure	4,668		4,636		4,566		(4)
Mindbody, Inc.	First Lien Revolver, LIBOR+ 8.00 % cash due 2/14/2025			Internet Services & Infrastructure	—		( 3 )		( 10 )		(4)(5)
Total Mindbody, Inc.					4,668		4,633		4,556
MRI Software LLC	First Lien Term Loan, LIBOR+ 5.50 % cash due 2/10/2026	10.23	%	Application Software	10,611		10,416		10,227		(4)
MRI Software LLC	First Lien Revolver, LIBOR+ 5.50 % cash due 2/10/2026			Application Software	—		( 3 )		( 12 )		(4)(5)
Total MRI Software LLC					10,611		10,413		10,215
Northern Star Industries Inc.	First Lien Term Loan, LIBOR+ 4.50 % cash due 3/31/2025	9.23	%	Electrical Components & Equipment	6,668		6,657		6,467
OEConnection LLC	First Lien Term Loan, SOFR+ 4.00 % cash due 9/25/2026	8.42	%	Application Software	7,757		7,721		7,411		(4)

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
Park Place Technologies, LLC	First Lien Term Loan, SOFR+ 5.00 % cash due 11/10/2027	9.42	%	Internet Services & Infrastructure	$	9,900	$	9,504	$	9,362	(4)
Planview Parent, Inc.	First Lien Term Loan, LIBOR+ 4.00 % cash due 12/17/2027	8.73	%	Application Software	2,435		2,294		2,274
Planview Parent, Inc.	Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/18/2028	11.98	%	Application Software	4,503		4,435		4,041		(4)
Total Planview Parent, Inc.					6,938		6,729		6,315
Pluralsight, LLC	First Lien Term Loan, LIBOR+ 8.00 % cash due 4/6/2027	11.83	%	Application Software	6,796		6,698		6,626		(4)
Pluralsight, LLC	First Lien Revolver, LIBOR+ 8.00 % cash due 4/6/2027			Application Software	212		206		201		(4)(5)
Total Pluralsight, LLC					7,008		6,904		6,827
RevSpring, Inc.	First Lien Term Loan, LIBOR+ 4.00 % cash due 10/11/2025	8.73	%	Commercial Printing	9,600		9,583		9,288
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.25 % cash due 4/27/2024	9.66	%	Footwear	8,179		8,173		6,339
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.23 % cash due 4/27/2024	9.64	%	Footwear	138		138		120
Total SHO Holding I Corporation					8,317		8,311		6,459
Sorenson Communications, LLC	First Lien Term Loan, LIBOR+ 5.50 % cash due 3/17/2026	10.23	%	Communications Equipment	2,478		2,454		2,374
Spanx, LLC	First Lien Term Loan, LIBOR+ 5.25 % cash due 11/20/2028	9.64	%	Apparel Retail	8,910		8,760		8,699		(4)
SPX Flow, Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 4/5/2029	8.92	%	Industrial Machinery	10,075		9,610		9,436		(4)
Supermoose Borrower, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/29/2025	8.48	%	Application Software	7,723		7,482		6,688		(4)
Surgery Center Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/31/2026	8.05	%	Health Care Facilities	3,044		3,034		3,014
TIBCO Software Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 3/20/2029	9.18	%	Application Software	6,256		5,712		5,602		(4)
Touchstone Acquisition, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2028	10.38	%	Health Care Supplies	7,267		7,142		7,104		(4)
Veritas US Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 9/1/2025	9.73	%	Application Software	6,354		6,286		4,515
Windstream Services II, LLC	First Lien Term Loan, SOFR+ 6.25 % cash due 9/21/2027	10.67	%	Integrated Telecommunication Services	7,798		7,587		7,092		(4)
WP CPP Holdings, LLC	Second Lien Term Loan, LIBOR+ 7.75 % cash due 4/30/2026	12.17	%	Aerospace & Defense	6,000		5,974		5,055		(4)
WP CPP Holdings, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 4/30/2025	8.17	%	Aerospace & Defense	1,980		1,913		1,732		(4)
Total WP CPP Holdings, LLC					7,980		7,887		6,787
Zayo Group Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.00 % cash due 3/9/2027	7.38	%	Alternative Carriers	2,155		2,009		1,756
Total Portfolio Investments					$	382,148	$	380,682	$	355,427

_________

(1) Represents the interest rate as of December 31, 2022. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. Certain loans may also be indexed to SOFR. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. All the LIBOR shown above is in U.S. dollars. As of December 31, 2022, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 4.38%, the 90-day LIBOR at 4.73%, the 30-day SOFR at 4.32%, the 90-day SOFR at 4.58% and the 180-day SOFR at 4.79%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(3) Represents the current determination of fair value as of December 31, 2022 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the valuation process described elsewhere herein.

(4) This investment was held by both the Company and SLF JV I as of December 31, 2022.

(5) Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

SLF JV I Portfolio as of September 30, 2022


Portfolio 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	6.82	%	Diversified Support Services	$	10,093	$	10,028	$	9,692
ADB Companies, LLC	First Lien Term Loan, SOFR+ 6.25 % cash due 12/18/2025	9.80	%	Construction & Engineering	8,518		8,389		8,371		(4)
Altice France S.A.	First Lien Term Loan, LIBOR+ 4.00 % cash due 8/14/2026	6.91	%	Integrated Telecommunication Services	3,000		2,841		2,730
Alvogen Pharma US, Inc.	First Lien Term Loan, SOFR+ 7.50 % cash due 6/30/2025	11.20	%	Pharmaceuticals	9,267		9,166		9,221		(4)
American Tire Distributors, Inc.	First Lien Term Loan, LIBOR+ 6.25 % cash due 10/20/2028	9.03	%	Distributors	4,873		4,812		4,576		(4)
Amplify Finco Pty Ltd.	First Lien Term Loan, LIBOR+ 4.25 % cash due 11/26/2026	7.92	%	Movies & Entertainment	7,800		7,722		7,527		(4)
Anastasia Parent, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/11/2025	7.42	%	Personal Products	1,539		1,203		1,232		(4)
Apptio, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 1/10/2025	8.46	%	Application Software	4,615		4,580		4,519		(4)
Apptio, Inc.	First Lien Revolver, LIBOR+ 6.00 % cash due 1/10/2025	8.46	%	Application Software	154		151		146		(4)(5)
Total Apptio, Inc.					4,769		4,731		4,665
ASP-R-PAC Acquisition Co LLC	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2027	9.67	%	Paper Packaging	4,176		4,103		4,080
ASP-R-PAC Acquisition Co LLC	First Lien Revolver, LIBOR+ 6.00 % cash due 12/29/2027			Paper Packaging	—		( 9 )		( 11 )		(5)
Total ASP-R-PAC Acquisition Co LLC					4,176		4,094		4,069
Astra Acquisition Corp.	First Lien Term Loan, LIBOR+ 5.25 % cash due 10/25/2028	8.37	%	Application Software	5,052		4,858		4,319		(4)
Asurion, LLC	First Lien Term Loan, SOFR+ 4.00 % cash due 8/19/2028	7.70	%	Property & Casualty Insurance	5,000		4,753		4,276
Asurion, LLC	Second Lien Term Loan, LIBOR+ 5.25 % cash due 1/20/2029	8.37	%	Property & Casualty Insurance	4,346		3,981		3,347
Total Asurion, LLC					9,346		8,734		7,623
Aurora Lux Finco S.À.R.L.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/24/2026	8.78	%	Airport Services	6,338		6,242		6,027		(4)
BAART Programs, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	8.12	%	Health Care Services	6,371		6,311		6,148
BAART Programs, Inc.	First Lien Delayed Draw Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	8.12	%	Health Care Services	1,771		1,751		1,664		(4)(5)
Total BAART Programs, Inc.					8,142		8,062		7,812
Blackhawk Network Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.00 % cash due 6/15/2025	6.03	%	Data Processing & Outsourced Services	9,575		9,566		8,977
BYJU's Alpha, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 11/24/2026	8.98	%	Application Software	7,444		7,347		5,455
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
Centerline Communications, LLC	First Lien Term Loan, SOFR+ 5.50 % cash due 8/10/2027	9.12	%	Wireless Telecommunication Services	4,358		4,286		4,280
Centerline Communications, LLC	First Lien Delayed Draw Term Loan, SOFR+ 5.50 % cash due 8/10/2027	9.12	%	Wireless Telecommunication Services	449		432		413		(5)
Centerline Communications, LLC	First Lien Revolver, SOFR+ 5.50 % cash due 8/10/2027			Wireless Telecommunication Services	—		( 10 )		( 11 )		(5)
Total Centerline Communications, LLC					4,807		4,708		4,682

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
CITGO Petroleum Corp.	First Lien Term Loan, LIBOR+ 6.25 % cash due 3/28/2024	9.37	%	Oil & Gas Refining & Marketing	$	7,038	$	6,967	$	7,057	(4)
City Football Group Limited	First Lien Term Loan, LIBOR+ 3.50 % cash due 7/21/2028	6.48	%	Movies & Entertainment	6,451		6,419		6,166
Convergeone Holdings, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 1/4/2026	8.12	%	IT Consulting & Other Services	7,373		7,206		5,320		(4)
Covetrus, Inc.	First Lien Term Loan, SOFR+ 5.00 % cash due 9/20/2029	7.65	%	Health Care Distributors	5,375		5,053		5,035		(4)
Curium Bidco S.à.r.l.	First Lien Term Loan, LIBOR+ 4.00 % cash due 7/9/2026	7.67	%	Biotechnology	5,820		5,776		5,587
Dealer Tire, LLC	First Lien Term Loan, LIBOR+ 4.25 % cash due 12/12/2025	7.37	%	Distributors	2,992		2,935		2,924
Delivery Hero FinCo LLC	First Lien Term Loan, SOFR+ 5.75 % cash due 8/12/2027	8.49	%	Internet & Direct Marketing Retail	6,035		5,876		5,756		(4)
DirecTV Financing, LLC	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/2/2027	8.12	%	Cable & Satellite	6,436		6,332		6,012		(4)
Domtar Corporation	First Lien Term Loan, LIBOR+ 5.50 % cash due 11/30/2028	8.26	%	Paper Products	4,100		4,065		3,921
DTI Holdco, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 4/26/2029	7.33	%	Research & Consulting Services	8,000		7,849		7,616		(4)
Eagle Parent Corp.	First Lien Term Loan, SOFR+ 4.25 % cash due 4/1/2029	7.80	%	Industrial Machinery	4,478		4,373		4,367
eResearch Technology, Inc.	First Lien Term Loan, LIBOR+ 4.50 % cash due 2/4/2027	7.62	%	Application Software	7,331		7,258		6,859
Gibson Brands, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/11/2028	7.94	%	Leisure Products	7,444		7,369		6,029
Global Medical Response, Inc.	First Lien Term Loan, LIBOR+ 4.25 % cash due 3/14/2025	7.37	%	Health Care Services	1,979		1,979		1,722		(4)
Global Medical Response, Inc.	First Lien Term Loan, LIBOR+ 4.25 % cash due 10/2/2025	6.81	%	Health Care Services	2,192		2,165		1,912
Total Global Medical Response, Inc.					4,171		4,144		3,634
Harbor Purchaser Inc.	First Lien Term Loan, SOFR+ 5.25 % cash due 4/9/2029	8.38	%	Education Services	8,000		7,774		7,310		(4)
Indivior Finance S.À.R.L.	First Lien Term Loan, SOFR+ 5.25 % cash due 6/30/2026	8.80	%	Pharmaceuticals	7,406		7,293		7,286
INW Manufacturing, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 3/25/2027	9.42	%	Personal Products	9,500		9,282		8,408		(4)
Iris Holding, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 6/28/2028	7.89	%	Metal & Glass Containers	5,000		4,624		4,610
LaserAway Intermediate Holdings II, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 10/14/2027	8.23	%	Health Care Services	7,444		7,318		7,323
Lightbox Intermediate, L.P.	First Lien Term Loan, LIBOR+ 5.00 % cash due 5/9/2026	8.67	%	Real Estate Services	7,367		7,315		7,109		(4)
LogMeIn, Inc.	First Lien Term Loan, LIBOR+ 4.75 % cash due 8/31/2027	7.80	%	Application Software	7,860		7,751		5,494
LTI Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.25 % cash due 9/6/2025	6.37	%	Electronic Components	7,366		7,282		6,835
Mindbody, Inc.	First Lien Term Loan, LIBOR+ 7.00 % cash 1.50% PIK due 2/14/2025	10.64	%	Internet Services & Infrastructure	4,687		4,651		4,570		(4)
Mindbody, Inc.	First Lien Revolver, LIBOR+ 8.00 % cash due 2/14/2025			Internet Services & Infrastructure	—		( 4 )		( 12 )		(4)(5)
Total Mindbody, Inc.					4,687		4,647		4,558
MRI Software LLC	First Lien Term Loan, LIBOR+ 5.50 % cash due 2/10/2026	9.17	%	Application Software	6,139		6,104		5,966		(4)
MRI Software LLC	First Lien Revolver, LIBOR+ 5.50 % cash due 2/10/2026			Application Software	—		( 3 )		( 10 )		(4)(5)
Total MRI Software LLC					6,139		6,101		5,956
Northern Star Industries Inc.	First Lien Term Loan, LIBOR+ 4.75 % cash due 3/31/2025	7.87	%	Electrical Components & Equipment	6,685		6,673		6,484
OEConnection LLC	First Lien Term Loan, LIBOR+ 4.00 % cash due 9/25/2026	7.12	%	Application Software	7,777		7,741		7,505		(4)
Park Place Technologies, LLC	First Lien Term Loan, SOFR+ 5.00 % cash due 11/10/2027	8.13	%	Internet Services & Infrastructure	4,925		4,781		4,687		(4)
Peloton Interactive, Inc.	First Lien Term Loan, SOFR+ 6.50 % cash due 5/25/2027	8.35	%	Leisure Products	5,486		5,251		5,371

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
Planview Parent, Inc.	Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/18/2028	10.92	%	Application Software	$	4,503	$	4,435	$	4,323	(4)
Pluralsight, LLC	First Lien Term Loan, LIBOR+ 8.00 % cash due 4/6/2027	10.68	%	Application Software	6,796		6,694		6,582		(4)
Pluralsight, LLC	First Lien Revolver, LIBOR+ 8.00 % cash due 4/6/2027			Application Software	—		( 6 )		( 13 )		(4)(5)
Total Pluralsight, LLC					6,796		6,688		6,569
RevSpring, Inc.	First Lien Term Loan, LIBOR+ 4.00 % cash due 10/11/2025	7.67	%	Commercial Printing	9,625		9,607		9,304
Sabert Corporation	First Lien Term Loan, LIBOR+ 4.50 % cash due 12/10/2026	7.63	%	Metal & Glass Containers	2,536		2,511		2,435		(4)
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.25 % cash due 4/27/2024	8.06	%	Footwear	8,201		8,194		7,176
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.23 % cash due 4/27/2024	8.04	%	Footwear	138		138		121
Total SHO Holding I Corporation					8,339		8,332		7,297
Sorenson Communications, LLC	First Lien Term Loan, LIBOR+ 5.50 % cash due 3/17/2026	9.17	%	Communications Equipment	2,553		2,528		2,454
Spanx, LLC	First Lien Term Loan, LIBOR+ 5.25 % cash due 11/20/2028	8.30	%	Apparel Retail	8,933		8,776		8,721		(4)
SPX Flow, Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 4/5/2029	7.63	%	Industrial Machinery	7,500		7,184		6,966		(4)
Supermoose Borrower, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/29/2025	7.42	%	Application Software	7,743		7,479		6,827		(4)
Surgery Center Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/31/2026	6.51	%	Health Care Facilities	3,377		3,365		3,213
TIBCO Software Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 3/20/2029	8.15	%	Application Software	6,256		5,693		5,629		(4)
Touchstone Acquisition, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2028	9.12	%	Health Care Supplies	7,285		7,155		7,140		(4)
Veritas US Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 9/1/2025	8.67	%	Application Software	6,365		6,290		5,087
Windstream Services II, LLC	First Lien Term Loan, LIBOR+ 6.25 % cash due 9/21/2027	9.37	%	Integrated Telecommunication Services	7,818		7,596		7,115		(4)
WP CPP Holdings, LLC	Second Lien Term Loan, LIBOR+ 7.75 % cash due 4/30/2026	10.56	%	Aerospace & Defense	6,000		5,972		5,070		(4)
WP CPP Holdings, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 4/30/2025	6.56	%	Aerospace & Defense	1,985		1,910		1,783		(4)
Total WP CPP Holdings, LLC					7,985		7,882		6,853
Zayo Group Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.00 % cash due 3/9/2027	6.12	%	Alternative Carriers	2,155		2,000		1,812
Total Portfolio Investments					$	383,194	$	382,673	$	359,625

_________

(1) Represents the interest rate as of September 30, 2022. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. Certain loans may also be indexed to SOFR. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. All the LIBOR shown above is in U.S. dollars. As of September 30, 2022, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 3.12%, the 90-day LIBOR at 3.67%, the 30-day SOFR at 3.03%, the 90-day SOFR at 3.55% and the 180-day SOFR at 3.98%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(3) Represents the current determination of fair value as of September 30, 2022 utilizing a similar technique as the Company in accordance with ASC 820. However, the determination of such fair value is not included in the valuation process described elsewhere herein.

(4) This investment was held by both the Company and SLF JV I as of September 30, 2022.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Both the cost and fair value of the Company's SLF JV I Notes were $ 112.7 million as of December 31, 2022. Both the cost and fair value of the Company's SLF JV I Notes were $ 96.3 million as of September 30, 2022. The Company earned interest income of $ 2.6 million and $ 2.0 million on the SLF JV I Notes for the three months ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the SLF JV I Notes bore interest at a rate of one-month LIBOR plus 7.00 % per annum with a LIBOR floor of 1.00 % and will mature on December 29, 2028.

The cost and fair value of the LLC equity interests in SLF JV I held by the Company were $ 54.8 million and $ 24.1 million, respectively, as of December 31, 2022, and $ 49.3 million and $ 20.7 million, respectively, as of September 30, 2022. The Company earned $ 1.1 million and $ 0.5 million in dividend income for the three months ended December 31, 2022 and December 31, 2021, respectively, with respect to its investment in the LLC equity interests of SLF JV I. The LLC equity interests of SLF JV I are generally dividend producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.

Below is certain summarized financial information for SLF JV I as of December 31, 2022 and September 30, 2022 and for the three months ended December 31, 2022 and 2021:


	December 31, 2022		September 30, 2022
Selected Balance Sheet Information:
Investments at fair value (cost December 31, 2022: $ 380,682 ; cost September 30, 2022: $ 382,673 )	$	355,427	$	359,625
Cash and cash equivalents	39,259		14,274
Restricted cash	6,612		5,642
Other assets	8,106		5,686
Total assets	$	409,404	$	385,227

Senior credit facility payable	$	226,000	$	230,000
SLF JV I Notes payable at fair value (proceeds December 31, 2022: $ 128,750 ; proceeds September 30, 2022: $ 110,000 )	128,750		110,000
Other liabilities	27,094		21,539
Total liabilities	$	381,844	$	361,539
Members' equity	27,560		23,688
Total liabilities and members' equity	$	409,404	$	385,227


	Three months ended December 31, 2022		Three months ended December 31, 2021
Selected Statements of Operations Information:
Interest income	$	8,781	$	5,423
Other income	—		11
Total investment income	8,781		5,434
Senior credit facility interest expense	3,709		1,514
SLF JV I Notes interest expense	2,982		2,249
Other expenses	69		79
Total expenses (1)	6,760		3,842
Net investment income	2,021		1,592
Net unrealized appreciation (depreciation)	( 2,207 )		( 525 )
Net realized gains (losses)	( 992 )		374
Net income (loss)	$	( 1,178 )	$	1,441

__________

(1) There are no management fees or incentive fees charged at SLF JV I.

SLF JV I has elected to fair value the SLF JV I Notes issued to the Company and Kemper under FASB ASC Topic 825, Financial Instruments - Fair Value Option ("ASC 825") . The SLF JV I Notes are valued based on the total assets less the total liabilities senior to the SLF JV I Notes in an amount not exceeding par under the EV technique.

During the three months ended December 31, 2022, the Company sold $ 13.5 million of senior secured debt investments to SLF JV I for $ 12.9 million cash consideration, which represented the fair value at the time of sale. A loss of $ 0.1 million was recognized by the Company on these transactions. During the three months ended December 31, 2021, the Company sold $ 9.7 million of senior secured debt investments to SLF JV I for $ 9.7 million cash consideration, which represented the fair value at the time of sale. A gain of $ 0.5 million was recognized by the Company on these transactions.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

OCSI Glick JV LLC

On March 19, 2021, the Company became party to the LLC agreement of Glick JV. The Company co-invests primarily in senior secured loans of middle-market companies with GF Equity Funding through the Glick JV. The Glick JV is managed by a four person Board of Directors, two of whom are selected by the Company and two of whom are selected by GF Equity Funding. The Glick JV is capitalized as transactions are completed, and portfolio decisions and investment decisions in respect of the Glick JV must be approved by the Glick JV investment committee, which consists of one representative selected by the Company and one representative selected by GF Equity Funding (with approval from a representative of each required). Since the Company does not have a controlling financial interest in the Glick JV, the Company does not consolidate the Glick JV.

The members provide capital to the Glick JV in exchange for LLC equity interests, and the Company and GF Debt Funding 2014 LLC ("GF Debt Funding"), an entity advised by affiliates of GF Equity Funding, provide capital to the Glick JV in exchange for subordinated notes issued by the Glick JV (the "Glick JV Notes"). As of December 31, 2022 and September 30, 2022, the Company and GF Equity Funding owned 87.5 % and 12.5 %, respectively, of the outstanding LLC equity interests, and the Company and GF Debt Funding owned 87.5 % and 12.5 %, respectively, of the Glick JV Notes. The Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act.

The Glick JV has a senior revolving credit facility with Deutsche Bank AG, New York Branch (the "Glick JV Deutsche Bank Facility"), which, as of December 31, 2022, had a reinvestment period end date and maturity date of May 3, 2023 and May 3, 2028, respectively, and permitted borrowings of up to $ 90.0 million (subject to borrowing base and other limitations). Borrowings under the Glick JV Deutsche Bank Facility are secured by all of the assets of the Glick JV and all of the equity interests in the Glick JV and, as of December 31, 2022, bore interest at a rate equal to 3-month LIBOR plus 2.25 % per annum during the reinvestment period, 3-month LIBOR plus 2.40 % for the first year after the end of the reinvestment period, 3-month LIBOR plus 2.50 % for the following year and 3-month LIBOR plus 2.75 % thereafter, in each case with a 0.125 % LIBOR floor. $ 76.1 million and $ 82.1 million of borrowings were outstanding under the Glick JV Deutsche Bank Facility as of December 31, 2022 and September 30, 2022, respectively.

As of December 31, 2022 and September 30, 2022, the Glick JV had total assets of $ 137.5 million and $ 146.8 million, respectively. The Glick JV's portfolio consisted of middle-market and other corporate debt securities of 40 and 43 portfolio companies as of December 31, 2022 and September 30, 2022, respectively. The portfolio companies in the Glick JV are in industries similar to those in which the Company may invest directly. The Company's investment in the Glick JV consisted of LLC equity interests and Glick JV Notes of $ 49.5 million and $ 50.3 million in the aggregate at fair value as of December 31, 2022 and September 30, 2022, respectively. The Glick JV Notes are junior in right of payment to the repayment of temporary contributions made by the Company to fund investments of the Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Glick JV Notes, respectively.

As of each of December 31, 2022 and September 30, 2022, the Glick JV had total capital commitments of $ 100.0 million, $ 87.5 million of which was from the Company and the remaining $ 12.5 million of which was from GF Equity Funding and GF Debt Funding. Approximately $ 84.0 million in aggregate commitments were funded as of each of December 31, 2022 and September 30, 2022, of which $ 73.5 million was from the Company. As of each of December 31, 2022 and September 30, 2022, the Company had commitments to fund Glick JV Notes of $ 78.8 million, of which $ 12.4 million were unfunded. As of each of December 31, 2022 and September 30, 2022, the Company had commitments to fund LLC equity interests in the Glick JV of $ 8.7 million, of which $ 1.6 million were unfunded.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Below is a summary of the Glick JV's portfolio, followed by a listing of the individual loans in the Glick JV's portfolio as of December 31, 2022 and September 30, 2022:


	December 31, 2022	September 30, 2022
Senior secured loans (1)	$ 134,080	$ 143,225
Weighted average current interest rate on senior secured loans (2)	9.86 %	8.52 %
Number of borrowers in the Glick JV	40	43
Largest loan exposure to a single borrower (1)	$ 7,476	$ 6,562
Total of five largest loan exposures to borrowers (1)	$ 29,830	$ 28,973

__________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

Glick JV Portfolio as of December 31, 2022


Portfolio Company	Investment Type	Cash Interest Rate (1)(2)	Industry	Principal		Cost		Fair Value (3)		Notes
ADB Companies, LLC	First Lien Term Loan, SOFR+ 6.25 % cash due 12/18/2025	11.34 %	Construction & Engineering	$	4,589	$	4,528	$	4,510	(4)
Alvogen Pharma Inc	First Lien Term Loan, SOFR+ 7.50 % cash due 6/30/2025	12.23 %	Pharmaceuticals	6,479		6,413		6,447		(4)
Alvogen Pharma Inc	First Lien Term Loan, LIBOR+ 4.00 % cash due 6/9/2028	8.38 %	Diversified Metals & Mining	997		918		941
Total Alvogen Pharma Inc				7,476		7,331		7,388
American Tire Distributors, Inc.	First Lien Term Loan, LIBOR+ 6.25 % cash due 10/20/2028	10.61 %	Distributors	2,882		2,846		2,652		(4)
Amplify Finco Pty Ltd.	First Lien Term Loan, LIBOR+ 4.25 % cash due 11/26/2026	8.98 %	Movies & Entertainment	2,918		2,888		2,813		(4)
Anastasia Parent, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/11/2025	8.48 %	Personal Products	914		711		685		(4)
ASP-R-PAC Acquisition Co LLC	First Lien Revolver, LIBOR+ 6.00 % cash due 12/29/2027		Paper Packaging	—		( 3 )		( 8 )		(5)
ASP-R-PAC Acquisition Co LLC	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2027	10.38 %	Paper Packaging	1,729		1,701		1,666
Total ASP-R-PAC Acquisition Co LLC				1,729		1,698		1,658
Astra Acquisition Corp.	First Lien Term Loan, LIBOR+ 5.25 % cash due 10/25/2028	9.63 %	Application Software	2,078		2,034		1,844		(4)
Asurion, LLC	First Lien Term Loan, SOFR+ 4.00 % cash due 8/19/2028	8.68 %	Property & Casualty Insurance	1,995		1,901		1,785
Asurion, LLC	Second Lien Term Loan, LIBOR+ 5.25 % cash due 1/20/2029	9.63 %	Property & Casualty Insurance	2,423		2,220		1,898
Total Asurion, LLC				4,418		4,121		3,683
Aurora Lux Finco S.À.R.L.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/24/2026	10.32 %	Airport Services	3,647		3,595		3,468		(4)
BAART Programs, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	9.07 %	Health Care Services	3,389		3,357		3,294
BAART Programs, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	9.73 %	Health Care Services	806		798		768		(4)(5)
Total BAART Programs, Inc.				4,195		4,155		4,062
BYJU's Alpha, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 11/24/2026	10.70 %	Application Software	3,960		3,912		3,193
Covetrus, Inc.	First Lien Term Loan, SOFR+ 5.00 % cash due 9/20/2029	9.58 %	Health Care Distributors	2,280		2,143		2,142		(4)
Curium Bidco S.à.r.l.	First Lien Term Loan, LIBOR+ 4.00 % cash due 7/9/2026	8.73 %	Biotechnology	2,863		2,842		2,806
DirecTV Financing, LLC	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/2/2027	9.38 %	Cable & Satellite	2,663		2,636		2,598		(4)
Domtar Corporation	First Lien Term Loan, LIBOR+ 5.50 % cash due 11/30/2028	9.79 %	Paper Products	2,497		2,472		2,397
DTI Holdco, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 4/26/2029	8.84 %	Research & Consulting Services	2,993		2,938		2,764		(4)

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
eResearch Technology, Inc.	First Lien Term Loan, LIBOR+ 4.50 % cash due 2/4/2027	8.88 %	Application Software	$	2,438	$	2,413	$	2,158
Gibson Brands, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/11/2028	9.13 %	Leisure Products	3,960		3,920		2,930
Harbor Purchaser Inc.	First Lien Term Loan, SOFR+ 5.25 % cash due 4/9/2029	9.67 %	Education Services	3,990		3,882		3,807		(4)
Indivior Finance S.À.R.L.	First Lien Term Loan, SOFR+ 5.25 % cash due 6/30/2026	10.09 %	Pharmaceuticals	3,940		3,884		3,881
INW Manufacturing, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 3/25/2027	10.48 %	Personal Products	2,344		2,293		2,004		(4)
Iris Holding, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 6/28/2028	8.94 %	Metal & Glass Containers	1,995		1,849		1,819
LaserAway Intermediate Holdings II, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 10/14/2027	9.76 %	Health Care Services	3,960		3,897		3,891
LTI Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.50 % cash due 9/6/2025	7.88 %	Electronic Components	1,355		1,203		1,300
MRI Software LLC	First Lien Revolver, LIBOR+ 5.50 % cash due 2/10/2026		Application Software	—		( 1 )		( 6 )		(4)(5)
MRI Software LLC	First Lien Term Loan, LIBOR+ 5.50 % cash due 2/10/2026	10.23 %	Application Software	1,642		1,629		1,583		(4)
Total MRI Software LLC				1,642		1,628		1,577
Northern Star Industries Inc.	First Lien Term Loan, LIBOR+ 4.50 % cash due 3/31/2025	9.23 %	Electrical Components & Equipment	5,239		5,230		5,082
OEConnection LLC	First Lien Term Loan, SOFR+ 4.00 % cash due 9/25/2026	8.42 %	Application Software	3,878		3,861		3,705		(4)
Planview Parent, Inc.	First Lien Term Loan, LIBOR+ 4.00 % cash due 12/17/2027	8.73 %	Application Software	688		649		643
Planview Parent, Inc.	Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/18/2028	11.98 %	Application Software	2,842		2,799		2,551		(4)
Total Planview Parent, Inc.				3,530		3,448		3,194
Pluralsight, LLC	First Lien Term Loan, LIBOR+ 8.00 % cash due 4/6/2027	11.83 %	Application Software	4,465		4,401		4,354		(4)
Pluralsight, LLC	First Lien Revolver, LIBOR+ 8.00 % cash due 4/6/2027	12.36 %	Application Software	158		153		150		(4)(5)
Total Pluralsight, LLC				4,623		4,554		4,504
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.25 % cash due 4/27/2024	9.66 %	Footwear	6,078		6,068		4,710
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.23 % cash due 4/27/2024	9.64 %	Footwear	102		102		89
Total SHO Holding I Corporation				6,180		6,170		4,799
Spanx, LLC	First Lien Term Loan, LIBOR+ 5.25 % cash due 11/20/2028	9.64 %	Apparel Retail	4,950		4,867		4,833		(4)
SPX Flow, Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 4/5/2029	8.92 %	Industrial Machinery	5,985		5,730		5,605		(4)
Supermoose Borrower, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/29/2025	8.48 %	Application Software	2,813		2,714		2,436		(4)
Surgery Center Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/31/2026	8.05 %	Health Care Facilities	3,044		3,034		3,014
TIBCO Software Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 3/20/2029	9.18 %	Application Software	2,654		2,423		2,377		(4)
Touchstone Acquisition, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2028	10.38 %	Health Care Supplies	3,016		2,964		2,948		(4)
Tribe Buyer LLC	First Lien Term Loan, LIBOR+ 4.50 % cash due 2/16/2024	8.88 %	Human Resource & Employment Services	1,578		1,578		987
Windstream Services II, LLC	First Lien Term Loan, SOFR+ 6.25 % cash due 9/21/2027	10.67 %	Integrated Telecommunication Services	4,874		4,742		4,433		(4)
WP CPP Holdings, LLC	Second Lien Term Loan, LIBOR+ 7.75 % cash due 4/30/2026	12.17 %	Aerospace & Defense	3,000		2,987		2,528		(4)
WP CPP Holdings, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 4/30/2025	8.17 %	Aerospace & Defense	990		956		864		(4)
Total WP CPP Holdings, LLC				3,990		3,943		3,392
Total Portfolio Investments				$	134,080	$	131,077	$	123,339

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

__________

(1) Represents the interest rate as of December 31, 2022. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. Certain loans may also be indexed to SOFR. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars. As of December 31, 2022, the reference rates for the Glick JV's variable rate loans were the 30-day LIBOR at 4.38%, the 90-day LIBOR at 4.73%, the 30-day SOFR at 4.32% and the 90-day SOFR at 4.58%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(4) This investment was held by both the Company and the Glick JV as of December 31, 2022.

Glick JV Portfolio as of September 30, 2022


Portfolio Company	Investment Type	Cash Interest Rate (1)(2)	Industry	Principal		Cost		Fair Value (3)		Notes
ADB Companies, LLC	First Lien Term Loan, SOFR+ 6.25 % cash due 12/18/2025	9.80 %	Construction & Engineering	$	4,647	$	4,579	$	4,567	(4)
Alvogen Pharma Inc	First Lien Term Loan, SOFR+ 7.50 % cash due 6/30/2025	11.20 %	Pharmaceuticals	6,562		6,489		6,529		(4)
American Tire Distributors, Inc.	First Lien Term Loan, LIBOR+ 6.25 % cash due 10/20/2028	9.03 %	Distributors	2,889		2,853		2,714		(4)
Amplify Finco Pty Ltd.	First Lien Term Loan, LIBOR+ 4.25 % cash due 11/26/2026	7.92 %	Movies & Entertainment	2,925		2,896		2,823		(4)
Anastasia Parent, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/11/2025	7.42 %	Personal Products	917		712		734		(4)
ASP-R-PAC Acquisition Co LLC	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2027	9.67 %	Paper Packaging	1,734		1,704		1,694
ASP-R-PAC Acquisition Co LLC	First Lien Revolver, LIBOR+ 6.00 % cash due 12/29/2027		Paper Packaging	—		( 4 )		( 5 )		(5)
Total ASP-R-PAC Acquisition Co LLC				1,734		1,700		1,689
Astra Acquisition Corp.	First Lien Term Loan, LIBOR+ 5.25 % cash due 10/25/2028	8.37 %	Application Software	2,078		2,033		1,777		(4)
Asurion, LLC	First Lien Term Loan, SOFR+ 4.00 % cash due 8/19/2028	7.70 %	Property & Casualty Insurance	2,000		1,901		1,711
Asurion, LLC	Second Lien Term Loan, LIBOR+ 5.25 % cash due 1/20/2029	8.37 %	Property & Casualty Insurance	2,423		2,212		1,866
Total Asurion, LLC				4,423		4,113		3,577
Aurora Lux Finco S.À.R.L.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/24/2026	8.78 %	Airport Services	3,656		3,601		3,476		(4)
BAART Programs, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	8.12 %	Health Care Services	3,398		3,366		3,279
BAART Programs, Inc.	First Lien Delayed Draw Term Loan, LIBOR+ 5.00 % cash due 6/11/2027	8.12 %	Health Care Services	808		800		760		(4)(5)
Total BAART Programs, Inc.				4,206		4,166		4,039
BYJU's Alpha, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 11/24/2026	8.98 %	Application Software	3,970		3,919		2,909
CITGO Petroleum Corp.	First Lien Term Loan, LIBOR+ 6.25 % cash due 3/28/2024	9.37 %	Oil & Gas Refining & Marketing	3,519		3,484		3,529		(4)
City Football Group Limited	First Lien Term Loan, LIBOR+ 3.50 % cash due 7/21/2028	6.48 %	Movies & Entertainment	2,481		2,469		2,372
Covetrus, Inc.	First Lien Term Loan, SOFR+ 5.00 % cash due 9/20/2029	7.65 %	Health Care Distributors	2,280		2,143		2,136		(4)
Curium Bidco S.à.r.l.	First Lien Term Loan, LIBOR+ 4.00 % cash due 7/9/2026	7.67 %	Biotechnology	2,870		2,849		2,756
DirecTV Financing, LLC	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/2/2027	8.12 %	Cable & Satellite	2,730		2,703		2,549		(4)
Domtar Corporation	First Lien Term Loan, LIBOR+ 5.50 % cash due 11/30/2028	8.26 %	Paper Products	2,503		2,478		2,394
DTI Holdco, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 4/26/2029	7.33 %	Research & Consulting Services	3,000		2,943		2,856		(4)

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
Eagle Parent Corp.	First Lien Term Loan, SOFR+ 4.25 % cash due 4/1/2029	7.80 %	Industrial Machinery	$	2,488	$	2,429	$	2,426
eResearch Technology, Inc.	First Lien Term Loan, LIBOR+ 4.50 % cash due 2/4/2027	7.62 %	Application Software	2,444		2,419		2,286
Gibson Brands, Inc.	First Lien Term Loan, LIBOR+ 5.00 % cash due 8/11/2028	7.94 %	Leisure Products	3,970		3,930		3,216
Harbor Purchaser Inc.	First Lien Term Loan, SOFR+ 5.25 % cash due 4/9/2029	8.38 %	Education Services	4,000		3,887		3,655		(4)
Indivior Finance S.À.R.L.	First Lien Term Loan, LIBOR+ 5.25 % cash due 6/30/2026	8.80 %	Pharmaceuticals	3,950		3,890		3,886
INW Manufacturing, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 3/25/2027	9.42 %	Personal Products	2,375		2,320		2,102		(4)
Iris Holding, Inc.	First Lien Term Loan, SOFR+ 4.75 % cash due 6/28/2028	7.89 %	Metal & Glass Containers	2,000		1,846		1,844
LaserAway Intermediate Holdings II, LLC	First Lien Term Loan, LIBOR+ 5.75 % cash due 10/14/2027	8.23 %	Health Care Services	3,970		3,903		3,905
LTI Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.25 % cash due 9/6/2025	6.37 %	Electronic Components	1,358		1,192		1,260
MRI Software LLC	First Lien Term Loan, LIBOR+ 5.50 % cash due 2/10/2026	9.17 %	Application Software	1,647		1,632		1,600		(4)
MRI Software LLC	First Lien Revolver, LIBOR+ 5.50 % cash due 2/10/2026		Application Software	—		( 1 )		( 4 )		(4)(5)
Total MRI Software LLC				1,647		1,631		1,596
Northern Star Industries Inc.	First Lien Term Loan, LIBOR+ 4.75 % cash due 3/31/2025	7.87 %	Electrical Components & Equipment	5,252		5,243		5,095
OEConnection LLC	First Lien Term Loan, LIBOR+ 4.00 % cash due 9/25/2026	7.12 %	Application Software	3,888		3,871		3,752		(4)
Planview Parent, Inc.	Second Lien Term Loan, LIBOR+ 7.25 % cash due 12/18/2028	10.92 %	Application Software	2,842		2,799		2,728		(4)
Pluralsight, LLC	First Lien Term Loan, LIBOR+ 8.00 % cash due 4/6/2027	10.68 %	Application Software	4,465		4,398		4,325		(4)
Pluralsight, LLC	First Lien Revolver, LIBOR+ 8.00 % cash due 4/6/2027		Application Software	—		( 5 )		( 10 )		(4)(5)
Total Pluralsight, LLC				4,465		4,393		4,315
Sabert Corporation	First Lien Term Loan, LIBOR+ 4.50 % cash due 12/10/2026	7.63 %	Metal & Glass Containers	1,691		1,674		1,623		(4)
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.25 % cash due 4/27/2024	8.06 %	Footwear	6,094		6,082		5,332
SHO Holding I Corporation	First Lien Term Loan, LIBOR+ 5.23 % cash due 4/27/2024	8.04 %	Footwear	102		102		90
Total SHO Holding I Corporation				6,196		6,184		5,422
Spanx, LLC	First Lien Term Loan, LIBOR+ 5.25 % cash due 11/20/2028	8.30 %	Apparel Retail	4,962		4,876		4,845		(4)
SPX Flow, Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 4/5/2029	7.63 %	Industrial Machinery	6,000		5,734		5,572		(4)
Supermoose Borrower, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/29/2025	7.42 %	Application Software	2,820		2,712		2,487		(4)
Surgery Center Holdings, Inc.	First Lien Term Loan, LIBOR+ 3.75 % cash due 8/31/2026	6.51 %	Health Care Facilities	3,377		3,365		3,213
TIBCO Software Inc.	First Lien Term Loan, SOFR+ 4.50 % cash due 3/20/2029	8.15 %	Application Software	2,654		2,415		2,388		(4)
Touchstone Acquisition, Inc.	First Lien Term Loan, LIBOR+ 6.00 % cash due 12/29/2028	9.12 %	Health Care Supplies	3,024		2,970		2,963		(4)
Tribe Buyer LLC	First Lien Term Loan, LIBOR+ 4.50 % cash due 2/16/2024	7.62 %	Human Resource & Employment Services	1,583		1,582		1,266
Windstream Services II, LLC	First Lien Term Loan, LIBOR+ 6.25 % cash due 9/21/2027	9.37 %	Integrated Telecommunication Services	4,886		4,747		4,447		(4)
WP CPP Holdings, LLC	First Lien Term Loan, LIBOR+ 3.75 % cash due 4/30/2025	6.56 %	Aerospace & Defense	993		955		892		(4)
WP CPP Holdings, LLC	Second Lien Term Loan, LIBOR+ 7.75 % cash due 4/30/2026	10.56 %	Aerospace & Defense	3,000		2,986		2,534		(4)
Total WP CPP Holdings, LLC				3,993		3,941		3,426
Total Portfolio Investments				$	143,225	$	140,083	$	133,144

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

__________

(1) Represents the interest rate as of September 30, 2022. All interest rates are payable in cash, unless otherwise noted.

(2) The interest rate on the principal balance outstanding for most of the floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. Certain loans may also be indexed to SOFR. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over the reference rates based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars. As of September 30, 2022, the reference rates for the Glick JV's variable rate loans were the 30-day LIBOR at 3.12%, the 90-day LIBOR at 3.67%, the 30-day SOFR at 3.03% and the 90-day SOFR at 3.55%. Most loans include an interest floor, which generally ranges from 0% to 1%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(4) This investment was held by both the Company and the Glick JV as of September 30, 2022.

The cost and fair value of the Company's aggregate investment in the Glick JV was $ 50.0 million and $ 49.5 million, respectively, as of December 31, 2022. The cost and fair value of the Company's aggregate investment in the Glick JV was $ 50.2 million and $ 50.3 million, respectively, as of September 30, 2022. For the three months ended December 31, 2022 and December 31, 2021, the Company's investment in the Glick JV Notes earned interest income of $ 1.6 million and $ 1.1 million, respectively. The Company did not earn dividend income for the three months ended December 31, 2022 and December 31, 2021 with respect to its investment in the LLC equity interest of the Glick JV. As of December 31, 2022, the Glick JV Notes bore interest at a rate of one-month LIBOR plus 4.50 % per annum and will mature on October 20, 2028.

Below is certain summarized financial information for the Glick JV as of December 31, 2022 and September 30, 2022 and for the three months ended December 31, 2022 and December 31, 2021:


	December 31, 2022		September 30, 2022
Selected Balance Sheet Information:
Investments at fair value (cost December 31, 2022: $ 131,077 ; September 30, 2022: $ 140,083 )	$	123,339	$	133,144
Cash and cash equivalents	9,777		7,021
Restricted cash	1,747		1,788
Other assets	2,592		4,855
Total assets	$	137,455	$	146,808

Senior credit facility payable	$	76,082	$	82,082
Glick JV Notes payable at fair value (proceeds December 31, 2022: $ 67,485 ; September 30, 2022: $ 68,185 )	56,614		57,463
Other liabilities	4,759		7,263
Total liabilities	$	137,455	$	146,808
Members' equity	—		—
Total liabilities and members' equity	$	137,455	$	146,808


	For the three months ended December 31, 2022		For the three months ended December 31, 2021
Selected Statements of Operations Information:
Interest income	$	3,403	$	2,160
Fee income	—		—
Total investment income	3,403		2,160
Senior credit facility interest expense	1,285		510
Glick JV Notes interest expense	1,324		818
Other expenses	53		39
Total expenses (1)	2,662		1,367
Net investment income	741		793
Net unrealized appreciation (depreciation)	( 651 )		( 882 )
Realized gain (loss)	( 90 )		89
Net income (loss)	$	—	$	—

__________

(1) There are no management fees or incentive fees charged at the Glick JV.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The Glick JV has elected to fair value the Glick JV Notes issued to the Company and GF Debt Funding under ASC 825. The Glick JV Notes are valued based on the total assets less the liabilities senior to the Glick JV Notes in an amount not exceeding par under the EV technique.

During the three months ended December 31, 2022 and 2021, the Company did not sell any debt investments to the Glick JV.

Note 4. Fee Income

For the three months ended December 31, 2022 and 2021, the Company recorded total fee income of $ 2.0 million and $ 0.9 million, respectively, of which $ 0.2 million and $ 0.2 million, respectively, was recurring in nature. Recurring fee income primarily consisted of servicing fees and certain exit fees.

Note 5. Share Data and Net Assets

The share and per share information disclosed in Note 5 have been retrospectively adjusted to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share, pursuant to ASC Topic 260-10, Earnings per Share , for the three months ended December 31, 2022 and 2021:


(Share amounts in thousands)	Three months ended December 31, 2022		Three months ended December 31, 2021
Earnings (loss) per common share — basic and diluted:
Net increase (decrease) in net assets resulting from operations	$	13,172	$	39,408
Weighted average common shares outstanding — basic and diluted	61,142		60,127
Earnings (loss) per common share — basic and diluted	$	0.22	$	0.66

Changes in Net Assets

The following table presents the changes in net assets for the three months ended December 31, 2022:


	Common Stock
(Share amounts in thousands)	Shares	Par Value		Additional paid-in-capital		Accumulated Overdistributed Earnings		Total Net Assets
Balance as of September 30, 2022	61,125	$	611	$	1,827,721	$	( 582,769 )	$	1,245,563
Net investment income	—	—		—		38,808		38,808
Net unrealized appreciation (depreciation)	—	—		—		( 22,982 )		( 22,982 )
Net realized gains (losses)	—	—		—		( 3,203 )		( 3,203 )
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		549		549
Distributions to stockholders	—	—		—		( 58,679 )		( 58,679 )
Issuance of common stock under dividend reinvestment plan	95	1		1,932		—		1,933
Balance as of December 31, 2022	61,220	$	612	$	1,829,653	$	( 628,276 )	$	1,201,989

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table presents the changes in net assets for the three months ended December 31, 2021:


	Common Stock
	Shares	Par Value		Additional paid-in-capital		Accumulated Overdistributed Earnings		Total Net Assets
Balance as of September 30, 2021	60,120	$	601	$	1,805,557	$	( 493,335 )	$	1,312,823
Net investment income	—	—		—		32,295		32,295
Net unrealized appreciation (depreciation)	—	—		—		( 4,586 )		( 4,586 )
Net realized gains (losses)	—	—		—		9,321		9,321
(Provision) benefit for taxes on realized and unrealized gains (losses)	—	—		—		2,378		2,378
Distributions to stockholders	—	—		—		( 27,956 )		( 27,956 )
Issuance of common stock under dividend reinvestment plan	36	1		785		—		786
Balance as of December 31, 2021	60,156	$	602	$	1,806,342	$	( 481,883 )	$	1,325,061

Distributions

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the Board of Directors and is based on management’s estimate of the Company’s annual taxable income. Net realized capital gains, if any, may be distributed to stockholders or retained for reinvestment.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s Board of Directors declares a cash distribution, then the Company’s stockholders who have not “opted out” of the Company’s DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. If the Company’s shares are trading at a premium to net asset value, the Company typically issues new shares to implement the DRIP with such shares issued at the greater of the most recently computed net asset value per share of common stock or 95% of the current market price per share of common stock on the payment date for such distribution. If the Company’s shares are trading at a discount to net asset value, the Company typically purchases shares in the open market in connection with the Company’s obligations under the DRIP.

For income tax purposes, the Company estimated its distributions for the 2022 calendar year will be composed primarily of ordinary income. The character of such distributions will be appropriately reported to the Internal Revenue Service and stockholders for the 2022 calendar year. To the extent the Company’s taxable earnings for a fiscal and taxable year fall below the amount of distributions paid for the fiscal and taxable year, a portion of the total amount of the Company’s distributions for the fiscal and taxable year is deemed a return of capital for U.S. federal income tax purposes to the Company’s stockholders.

The following table reflects the distributions per share that the Company has paid, including shares issued under the DRIP, on its common stock during the three months ended December 31, 2022 and 2021:


Distribution	Date Declared	Record Date	Payment Date	Amount per Share		Cash Distribution			DRIP Shares Issued		DRIP Shares Value
Quarterly	November 10, 2022	December 15, 2022	December 30, 2022	$	0.54	$	32.0	million	53,369	(1)	$	1.1	million
Special	November 10, 2022	December 15, 2022	December 30, 2022	$	0.42	$	24.8	million	41,510	(1)	$	0.8	million
Total for the three months ended December 31, 2022				$	0.96	$	56.8	million	94,879		$	1.9	million
Distribution	Date Declared	Record Date	Payment Date	Amount per Share		Cash Distribution			DRIP Shares Issued		DRIP Shares Value
Quarterly	October 13, 2021	December 15, 2021	December 31, 2021	$	0.465	$	27.2	million	35,990	(1)	$	0.8	million
Total for the three months ended December 31, 2021				$	0.465	$	27.2	million	35,990		$	0.8	million

__________

(1) New shares were issued and distributed.

Common Stock Issuances

During the three months ended December 31, 2022 and 2021, the Company issued of 94,879 and 35,990 , respectively, of shares of common stock as part of the DRIP.

On February 7, 2022, the Company entered into an equity distribution agreement by and among the Company, Oaktree, Oaktree Administrator and Keefe, Bruyette & Woods, Inc., JMP Securities LLC, Raymond James & Associates, Inc. and

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

SMBC Nikko Securities America, Inc., as placement agents, in connection with the issuance and sale by the Company of shares of common stock, having an aggregate offering price of up to $ 125.0 million. Sales of the common stock may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or similar securities exchanges or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.

In connection with the "at the market" offering, the Company did not issue or sell any shares of common stock during the three months ended December 31, 2022.

Note 6. Borrowings

Syndicated Facility

On November 30, 2017, the Company entered into a senior secured revolving credit facility (as amended and restated, the “ Syndicated Facility ”) pursuant to a Senior Secured Revolving Credit Agreement with the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc. and MUFG Union Bank, N.A., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents. The Syndicated Facility provides that the Company may use the proceeds of the loans and issuances of letters of credit under the Syndicated Facility for general corporate purposes, including acquiring and funding leveraged loans, mezzanine loans, high-yield securities, convertible securities, preferred stock, common stock and other investments. The Syndicated Facility further allows the Company to request letters of credit from ING Capital LLC, as the issuing bank.

As of December 31, 2022, the size of the Syndicated Facility was $ 1.0 billion. In addition, pursuant to an "accordion" feature, the Company may increase the size of the facility to up to the greater of $ 1.25 billion and the Company's net worth, as defined in the facility, under certain circumstances.

As of December 31, 2022, (i) the period during which the Company may make drawings will expire on May 4, 2025 and the maturity date is May 4, 2026 and (ii) the interest rate margin for (a) LIBOR loans (which may be 1-, 2-, 3- or 6-month, at the Company’s option) was 2.00 % and (b) alternate base rate loans was 1.00 %.

The Syndicated Facility is secured by substantially all of the Company’s assets (excluding, among other things, investments held in and by certain subsidiaries of the Company (including OCSL Senior Funding II LLC) or investments in certain portfolio companies of the Company) and guaranteed by certain subsidiaries of the Company. As of December 31, 2022, except for assets that were held by OCSL Senior Funding II LLC and certain immaterial subsidiaries, substantially all of the Company's assets are pledged as collateral under the Syndicated Facility.

The Syndicated Facility requires the Company to, among other things, (i) make representations and warranties regarding the collateral as well as each of the Company’s portfolio companies’ businesses, (ii) agree to certain indemnification obligations, and (iii) comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including covenants related to: (A) limitations on the incurrence of additional indebtedness and liens, (B) limitations on certain investments, (C) limitations on certain asset transfers and restricted payments, (D) maintaining a certain minimum stockholders’ equity, (E) maintaining a ratio of total assets (less total liabilities) to total indebtedness, of the Company and its subsidiaries (subject to certain exceptions), of not less than 1.50 to 1.00, (F) maintaining a ratio of consolidated EBITDA to consolidated interest expense, of the Company and its subsidiaries (subject to certain exceptions), of not less than 2.25 to 1.00, (G) maintaining a minimum liquidity and net worth, and (H) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries. The Syndicated Facility also includes usual and customary default provisions such as the failure to make timely payments under the facility, the occurrence of a change in control, and the failure by the Company to materially perform under the agreements governing the facility, which, if not complied with, could accelerate repayment under the facility. As of December 31, 2022, the Company was in compliance with all financial covenants under the Syndicated Facility. In addition to the asset coverage ratio described above, borrowings under the Syndicated Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that will apply different advance rates to different types of assets in the Company’s portfolio. Each loan or letter of credit originated or assumed under the Syndicated Facility is subject to the satisfaction of certain conditions.

As of December 31, 2022 and September 30, 2022, the Company had $ 695.0 million and $ 540.0 million of borrowings outstanding under the Syndicated Facility, respectively, which had a fair value of $ 695.0 million and $ 540.0 million, respectively. The Company's borrowings under the Syndicated Facility bore interest at a weighted average interest rate of 5.849 % and 2.174 % for the three months ended December 31, 2022 and 2021, respectively. For the three months ended

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

December 31, 2022 and 2021, the Company recorded interest expense (inclusive of fees) of $ 10.0 million and $ 3.8 million, respectively, related to the Syndicated Facility.

Citibank Facility

On March 19, 2021, the Company became party to a revolving credit facility (as amended and/or restated from time to time, the “ Citibank Facility ”) with OCSL Senior Funding II LLC (formerly OCSI Senior Funding II LLC), the Company’s wholly-owned, special purpose financing subsidiary, as the borrower, the Company, as collateral manager and seller, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian.

As of December 31, 2022, the Company was able to borrow up to $ 200 million under the Citibank Facility (subject to borrowing base and other limitations). As of December 31, 2022, the reinvestment period under the Citibank Facility was scheduled to expire on November 18, 2023 and the maturity date for the Citibank Facility was November 18, 2024.

As of December 31, 2022, borrowings under the Citibank Facility are subject to certain customary advance rates and accrue interest at a rate equal to LIBOR plus between 1.25 % and 2.20 % per annum on broadly syndicated loans, subject to observable market depth and pricing, and LIBOR plus 2.25 % per annum on all other eligible loans during the reinvestment period. In addition, as of December 31, 2022, for the duration of the reinvestment period there is a non-usage fee payable of 0.50 % per annum on the undrawn amount under the Citibank Facility. The minimum asset coverage ratio applicable to the Company under the Citibank Facility is 150 % as determined in accordance with the requirements of the Investment Company Act. Borrowings under the Citibank Facility are secured by all of the assets of OCSL Senior Funding II LLC and all of the Company’s equity interests in OCSL Senior Funding II LLC. The Company may use the Citibank Facility to fund a portion of its loan origination activities and for general corporate purposes. Each loan origination under the Citibank Facility is subject to the satisfaction of certain conditions.

As of December 31, 2022 and September 30, 2022, the Company had $ 165.0 million and $ 160.0 million outstanding under the Citibank Facility, respectively, which had a fair value of $ 165.0 million and $ 160.0 million, respectively. The Company's borrowings under the Citibank Facility bore interest at a weighted average interest rate of 6.508 % and 1.830 % for the three months ended December 31, 2022 and 2021, respectively. For the three months ended December 31, 2022 and 2021, the Company recorded interest expense (inclusive of fees) of $ 2.7 million and $ 0.8 million, respectively, related to the Citibank Facility.

2025 Notes

On February 25, 2020, the Company issued $ 300.0 million in aggregate principal amount of the 2025 Notes for net proceeds of $ 293.8 million after deducting OID of $ 2.5 million, underwriting commissions and discounts of $ 3.0 million and offering costs of $ 0.7 million. The OID on the 2025 Notes is amortized based on the effective interest method over the term of the 2025 Notes.

The 2025 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the fifth supplemental indenture, dated February 25, 2020 (collectively, the "2025 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee"). The 2025 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2025 Notes. The 2025 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2025 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2025 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2025 Notes is paid semi-annually on February 25 and August 25 at a rate of 3.500 % per annum. The 2025 Notes mature on February 25, 2025 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the 2025 Notes can require the Company to repurchase the 2025 Notes at 100 % of their principal amount upon the occurrence of certain change of control events as described in the 2025 Notes Indenture. The 2025 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the three months ended December 31, 2022, the Company did not repurchase any of the 2025 Notes in the open market.

The 2025 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the U.S. Securities and Exchange Commission ("SEC")), as well as covenants requiring the Company to provide financial information to

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

the holders of the 2025 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants are subject to limitations and exceptions that are described in the 2025 Notes Indenture.

2027 Notes

On May 18, 2021, the Company issued $ 350.0 million in aggregate principal amount of the 2027 Notes for net proceeds of $ 344.8 million after deducting OID of $ 1.0 million, underwriting commissions and discounts of $ 3.5 million and offering costs of $ 0.7 million. The OID on the 2027 Notes is amortized based on the effective interest method over the term of the 2027 Notes.

The 2027 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the sixth supplemental indenture, dated May 18, 2021 (collectively, the "2027 Notes Indenture"), between the Company and the Trustee. The 2027 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2027 Notes. The 2027 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated. The 2027 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness. The 2027 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2027 Notes is paid semi-annually on January 15 and July 15, beginning on January 15, 2022, at a rate of 2.700 % per annum. The 2027 Notes mature on January 15, 2027 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable. In addition, holders of the 2027 Notes can require the Company to repurchase the 2027 Notes at 100 % of their principal amount upon the occurrence of certain change of control events as described in the 2027 Notes Indenture. The 2027 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. During the three months ended December 31, 2022, the Company did not repurchase any of the 2027 Notes in the open market.

The 2027 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the SEC), as well as covenants requiring the Company to provide financial information to the holders of the 2027 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. These covenants are subject to limitations and exceptions that are described in the 2027 Notes Indenture.

In connection with the 2027 Notes, the Company entered into an interest rate swap to more closely align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, the Company receives a fixed interest rate of 2.700 % and pays a floating interest rate of the three-month LIBOR plus 1.658 % on a notional amount of $ 350 million. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship. See Note 12 for more information regarding the interest rate swap.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The below table presents the components of the carrying value of the 2025 Notes and the 2027 Notes as of December 31, 2022 and September 30, 2022:


	As of December 31, 2022				As of September 30, 2022
($ in millions)	2025 Notes		2027 Notes		2025 Notes		2027 Notes
Principal	$	300.0	$	350.0	$	300.0	$	350.0
Unamortized financing costs	( 1.6 )		( 3.1 )		( 1.8 )		( 3.2 )
Unaccreted discount	( 1.1 )		( 0.7 )		( 1.2 )		( 0.7 )
Interest rate swap fair value adjustment	—		( 39.9 )		—		( 42.0 )
Net carrying value	$	297.3	$	306.3	$	297.0	$	304.1
Fair Value	$	286.7	$	296.8	$	283.1	$	294.0

The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three months ended December 31, 2022:


($ in millions)	2025 Notes			2027 Notes
Coupon interest	$	2.6		$	2.4
Amortization of financing costs and discount	0.3			0.2
Effect of interest rate swap	—			2.5
Total interest expense	$	2.9		$	5.1
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)	3.500		%	5.586		%

The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three months ended December 31, 2021:


($ in millions)	2025 Notes			2027 Notes
Coupon interest	$	2.6		$	2.4
Amortization of financing costs and discount	0.3			0.2
Effect of interest rate swap	—			( 0.7 )
Total interest expense	$	2.9		$	1.9
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)	3.500		%	1.782		%

Note 7. Taxable/Distributable Income and Dividend Distributions

Taxable income differs from net increase (decrease) in net assets resulting from operations primarily due to: (1) unrealized appreciation (depreciation) on investments and foreign currency, as gains and losses are not included in taxable income until they are realized; (2) origination and exit fees received in connection with investments in portfolio companies; (3) organizational costs; (4) income or loss recognition on exited investments; and (5) recognition of interest income on certain loans.

As of September 30, 2022, the Company had net capital loss carryforwards of $ 523.7 million to offset net capital gains that will not expire, to the extent available and permitted by U.S. federal income tax law, of which $ 64.5 million are available to offset future short-term capital gains and $ 459.2 million are available to offset future long-term capital gains. A portion of such net capital loss carryfowards represented a realized loss under sections 382 and 383 of the Code, which is carried forward to future years to offset future gains subject to certain limitations.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Listed below is a reconciliation of "net increase (decrease) in net assets resulting from operations" to taxable income for the three months ended December 31, 2022 and 2021.


	Three months ended December 31, 2022		Three months ended December 31, 2021
Net increase (decrease) in net assets resulting from operations	$	13,172	$	39,408
Net unrealized (appreciation) depreciation	22,982		4,586
Book/tax difference due to organizational costs	—		( 22 )
Book/tax difference due to capital losses utilized	8,013		( 10,531 )
Other book/tax differences	( 12,910 )		( 11,171 )
Taxable/Distributable Income (1)	$	31,257	$	22,270

__________

(1) The Company's taxable income for the three months ended December 31, 2022 is an estimate and will not be finally determined until the Company files its tax return for the fiscal year ending September 30, 2023. Therefore, the final taxable income may be different than the estimate.

The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.

When assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred tax assets are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income and tax liabilities for the tax jurisdiction in which the tax asset is located. The deferred tax asset recognized by the Company, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of those assets, will be recognized in future years by these taxable entities. Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be realized in future periods. In determining the realizability of this tax benefit, management considered numerous factors that will give rise to pre-tax income in future periods. Among these are the historical and expected future book and tax basis pre-tax income of the Company and unrealized gains in the Company’s assets at the determination date. Based on these and other factors, the Company determined that, as of December 31, 2022, $ 11.4 million of the $ 13.1 million deferred tax assets would not more likely than not be realized in future periods. As of December 31, 2022, the Company recorded a net deferred tax asset of $ 1.7 million on the Consolidated Statements of Assets and Liabilities.

For the three months ended December 31, 2022, the Company recognized a total benefit for income tax related to realized and unrealized losses of $ 0.5 million, which was primarily all current income tax benefit.

For the three months ended December 31, 2021, the Company recognized a total benefit for income tax related to realized and unrealized losses of $ 2.4 million, which was composed of (i) a current income tax benefit of approximately $ 1.4 million, and (ii) a deferred income tax benefit of approximately $ 1.0 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable subsidiaries. For the three months ended December 31, 2021, the Company recognized a provision for income tax related to net investment income of $ 3.3 million, which was all current income tax expense.

As of September 30, 2022, the Company's last tax year end, the components of accumulated overdistributed earnings on a tax basis were as follows:


Undistributed ordinary income, net	$	( 43,624 )
Net realized capital losses	473,274
Unrealized losses, net	153,119
Accumulated overdistributed earnings	$	582,769

The aggregate cost of investments for U.S. federal income tax purposes was $ 2,654.3 million as of September 30, 2022. As of September 30, 2022, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over cost for U.S. federal income tax purposes was $ 466.9 million. As of September 30, 2022, the aggregate gross unrealized depreciation for all investments in which there was an excess of cost for U.S. federal income tax purposes over value was

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

$ 620.0 million. Net unrealized depreciation based on the aggregate cost of investments for U.S. federal income tax purposes was $ 153.1 million.

Note 8. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation

Realized Gains or Losses

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption and the cost basis of the investment without regard to unrealized appreciation or depreciation previously recognized, and include investments written-off during the period, net of recoveries. Realized losses may also be recorded in connection with the Company's determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.

During the three months ended December 31, 2022, the Company recorded an aggregate net realized loss of $ 3.2 million, which consisted of the following:


($ in millions)
Portfolio Company	Net Realized Gain (Loss)
Foreign currency forward contracts	$	4.4
Carvana Co.	( 2.8 )
ASP Unifrax Holdings Inc.	( 2.1 )
Global Medical Response Inc.	( 1.0 )
Other, net	( 1.7 )
Total, net	$	( 3.2 )

During the three months ended December 31, 2021, the Company recorded an aggregate net realized gain of $ 9.3 million, which consisted of the following:


($ in millions)
Portfolio Company	Net Realized Gain (Loss)
Foreign currency forward contracts	$	3.0
OmniSYS Acquisition Corporation	2.0
First Star Speir Aviation Limited	1.9
Other, net	2.4
Total, net	$	9.3

Net Unrealized Appreciation or Depreciation

Net unrealized appreciation or depreciation reflects the net change in the valuation of the portfolio pursuant to the Company's valuation guidelines and the reclassification of any prior period unrealized appreciation or depreciation.

During the three months ended December 31, 2022 and 2021, the Company recorded net unrealized depreciation of $ 23.0 million and $ 4.6 million, respectively. For the three months ended December 31, 2022, this consisted of $ 18.7 million of net unrealized depreciation on debt investments and $ 11.0 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $ 3.9 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $ 2.8 million of net unrealized appreciation on equity investments. For the three months ended December 31, 2021, this consisted of $ 4.7 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains), $ 1.8 million of net unrealized depreciation on debt investments and $ 0.8 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $ 2.8 million of net unrealized appreciation on equity investments.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 9. Concentration of Credit Risks

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

Note 10. Related Party Transactions

As of December 31, 2022 and September 30, 2022, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $ 16.9 million and $ 15.9 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree.

Investment Advisory Agreement

The Company is party to the Investment Advisory Agreement. Under the Investment Advisory Agreement, the Company pays Oaktree a fee for its services under the Investment Advisory Agreement consisting of two components: a base management fee and an incentive fee. The cost of both the base management fee payable to Oaktree and any incentive fees earned by Oaktree is ultimately borne by common stockholders of the Company.

From October 17, 2017 through May 3, 2020, the Company was externally managed by OCM pursuant to an investment advisory agreement. On May 4, 2020, OCM effected the novation of such investment advisory agreement to Oaktree. Immediately following such novation, the Company and Oaktree entered into a new investment advisory agreement with the same terms, including fee structure, as the investment advisory agreement with OCM. The investment advisory agreement with Oaktree was subsequently amended and restated on March 19, 2021 in connection with the closing of the OCSI Merger and on January 23, 2023 in connection with the OSI2 Merger. The term “Investment Advisory Agreement” refers collectively to the agreements with Oaktree and, prior to its novation, with OCM.

Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect from year-to-year if approved annually by the Board of Directors of the Company or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, including, in either case, approval by a majority of the directors of the Company who are not interested persons. The Investment Advisory Agreement will automatically terminate in the event of its assignment. The Investment Advisory Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other. The Investment Advisory Agreement may also be terminated, without penalty, upon the vote of a majority of the outstanding voting securities of the Company.

Base Management Fee

Under the Investment Advisory Agreement, the base management fee is calculated at an annual rate of 1.50 % of total gross assets, including any investment made with borrowings, but excluding cash and cash equivalents. The base management fee is payable quarterly in arrears and the fee for any partial month or quarter is appropriately prorated. Effective May 3, 2019, the base management fee on the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of (A) 200 % and (B) the Company’s net asset value will be 1.00 %. For the avoidance of doubt, the 200 % will be calculated in accordance with the Investment Company Act and will give effect to exemptive relief the Company received from the SEC with respect to debentures issued by a small business investment company subsidiary. In connection with the OCSI Merger, Oaktree waived an aggregate of $ 6 million of base management fees otherwise payable to Oaktree in the two years following the closing of the OCSI Merger on March 19, 2021 at a rate of $ 750,000 per quarter (with such amount appropriately prorated for any partial quarter). In connection with the OSI2 Merger, Oaktree waived an aggregate of $ 9.0 million of base management fees payable to Oaktree as follows: $ 6.0 million at a rate of $ 1.5 million per quarter (with such amount appropriately prorated for any partial quarter) in the first year following closing of the OSI2 Merger on January 23, 2023 and $ 3.0 million at a rate of $ 750,000 per quarter (with such amount appropriately prorated for any partial quarter) in the second year following closing of the OSI2 Merger.

For the three months ended December 31, 2022 and 2021, the base management fee incurred under the Investment Advisory Agreement was $ 9.2 million (net of waiver) and $ 9.2 million (net of waiver), respectively.

Incentive Fee

The incentive fee consists of two parts. Under the Investment Advisory Agreement, the first part of the incentive fee (the “incentive fee on income” or "Part I incentive fee") is calculated and payable quarterly in arrears based upon the “pre-incentive fee net investment income” of the Company for the immediately preceding quarter. The payment of the incentive fee on income

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

is subject to payment of a preferred return to investors each quarter (i.e., a “hurdle rate”), expressed as a rate of return on the value of the Company’s net assets at the end of the most recently completed quarter, of 1.50 %, subject to a “catch up” feature.

For this purpose, “pre-incentive fee net investment income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies, other than fees for providing managerial assistance) accrued during the fiscal quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the Administration Agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as OID debt, instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. In addition, pre-incentive fee net investment income does not include any amortization or accretion of any purchase premium or purchase discount to interest income resulting solely from merger-related accounting adjustments in connection with the assets acquired in the OCSI Merger or in the OSI2 Merger, in each case, including any premium or discount paid for the acquisition of such assets, solely to the extent that the inclusion of such merger-related accounting adjustments, in the aggregate, would result in an increase in pre-incentive fee net investment income.

Under the Investment Advisory Agreement, the calculation of the incentive fee on income for each quarter is as follows:

• No incentive fee is payable to Oaktree in any quarter in which the Company’s pre-incentive fee net investment income does not exceed the preferred return rate of 1.50 % (the “preferred return”) on net assets;

• 100 % of the Company’s pre-incentive fee net investment income, if any, that exceeds the preferred return but is less than or equal to 1.8182 % in any fiscal quarter is payable to Oaktree. This portion of the incentive fee on income is referred to as the “catch-up” provision, and it is intended to provide Oaktree with an incentive fee of 17.5 % on all of the Company’s pre-incentive fee net investment income when the Company’s pre-incentive fee net investment income exceeds 1.8182 % on net assets in any fiscal quarter; and

• For any quarter in which the Company’s pre-incentive fee net investment income exceeds 1.8182 % on net assets, the incentive fee on income is equal to 17.5 % of the amount of the Company’s pre-incentive fee net investment income, as the preferred return and catch-up will have been achieved.

There is no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle.

For the three months ended December 31, 2022 and 2021, the first part of the incentive fee (incentive fee on income) incurred under the Investment Advisory Agreement was $ 7.7 million and $ 6.5 million, respectively.

Under the Investment Advisory Agreement, the second part of the incentive fee (the "capital gains incentive fee") is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date) commencing with the fiscal year ended September 30, 2019 and equals 17.5 % of the Company’s realized capital gains, if any, on a cumulative basis from the beginning of the fiscal year ended September 30, 2019 through the end of each subsequent fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees under the Investment Advisory Agreement. Any realized capital gains, realized capital losses, unrealized capital appreciation and unrealized capital depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the calculations of the second part of the incentive fee. In addition, the calculation of realized capital gains, realized capital losses and unrealized capital depreciation does (1) not include any such amounts resulting solely from merger-related accounting adjustments in connection with the assets acquired in the OCSI Merger or in the OSI2 Merger, in each case, including any premium or discount paid for the acquisition of such assets, solely to the extent that the inclusion of such merger-related accounting adjustments, in the aggregate, would result in an increase in the capital gains incentive fee, (2) include any such amounts associated with the investments acquired in the OCSI Merger for the period from October 1, 2018 to the date of closing of the OCSI Merger, solely to the extent that the exclusion of such amounts, in the aggregate, would result in an increase in the capital gains incentive fee and (3) include any such amounts associated with the investments acquired in the OSI2 Merger for the period from August 6, 2018 to the date of closing of the OSI2 Merger, solely to the extent that the exclusion of such amounts, in the aggregate, would result in an increase in the capital gains incentive fee. As of December 31, 2022, the Company paid $ 9.6 million of capital gains incentive fees cumulatively under the Investment Advisory Agreement (net of waivers). Part II incentive fees are contractually calculated and paid at the end of the fiscal year in accordance with the Investment Advisory Agreement, which, as described above, differs from Part II incentive fees accrued under GAAP. Hypothetically, if Part II incentive fees were calculated as of December 31, 2022 under the Investment Advisory Agreement, no Part II incentive fees would be payable.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a theoretical "liquidation basis." A fee so calculated and accrued would not be payable under applicable law and may never be paid based upon the computation of capital gains incentive fees in subsequent periods. Amounts ultimately paid under the Investment Advisory Agreement will be consistent with the formula reflected in the Investment Advisory Agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation. Any realized capital gains and losses and cumulative unrealized capital appreciation and depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the GAAP accrual. If such amount is positive at the end of a period, then GAAP requires the Company to record a capital gains incentive fee equal to 17.5 % of such cumulative amount, less the aggregate amount of actual capital gains incentive fees payable or capital gains incentive fees accrued under GAAP in all prior periods. The resulting accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. There can be no assurance that such unrealized capital appreciation will be realized in the future or any accrued capital gains incentive fee will become payable under the Investment Advisory Agreement. For the three months ended December 31, 2022, there were no accrued capital gains incentive fees. For the three months ended December 31, 2021, $ 1.8 million of accrued capital gains incentive fees were expensed. As of December 31, 2022, the total accrued capital gains incentive fee liability was zero.

Indemnification

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

Administrative Services

The Company is party to the Administration Agreement with Oaktree Administrator. Pursuant to the Administration Agreement, Oaktree Administrator provides administrative services to the Company necessary for the operations of the Company, which include providing office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services as Oaktree Administrator, subject to review by the Company’s Board of Directors, shall from time to time deem to be necessary or useful to perform its obligations under the Administration Agreement. Oaktree Administrator may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. Oaktree Administrator makes reports to the Company’s Board of Directors of its performance of obligations under the Administration Agreement and furnishes advice and recommendations with respect to such other aspects of the Company’s business and affairs, in each case, as it shall determine to be desirable or as reasonably required by the Company’s Board of Directors; provided that Oaktree Administrator shall not provide any investment advice or recommendation.

Oaktree Administrator also provides portfolio collection functions for interest income, fees and warrants and is responsible for the financial and other records that the Company is required to maintain and prepares, prints and disseminates reports to the Company’s stockholders and all other materials filed with the SEC. In addition, Oaktree Administrator assists the Company in determining and publishing the Company’s net asset value, overseeing the preparation and filing of the Company’s tax returns, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Oaktree Administrator may also offer to provide, on the Company’s behalf, managerial assistance to the Company’s portfolio companies.

For providing these services, facilities and personnel, the Company reimburses Oaktree Administrator the allocable portion of overhead and other expenses incurred by Oaktree Administrator in performing its obligations under the Administration Agreement, including the Company’s allocable portion of the rent of the Company’s principal executive offices (which are located in a building owned by a Brookfield affiliate) at market rates and the Company’s allocable portion of the costs of compensation and related expenses of its Chief Financial Officer, Chief Compliance Officer, their staffs and other non-

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

investment professionals at Oaktree that perform duties for the Company. Such reimbursement is at cost, with no profit to, or markup by, Oaktree Administrator. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other. The Administration Agreement may also be terminated, without penalty, upon the vote of a majority of the Company’s outstanding voting securities.

For the three months ended December 31, 2022 and 2021, the Company accrued administrative expenses of $ 0.4 million and $ 0.5 million, respectively, including $ 0.1 million and $ 0.1 million of general and administrative expenses, respectively.

As of December 31, 2022 and September 30, 2022, $ 3.3 million and $ 3.2 million, respectively, was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to Oaktree Administrator.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 11. Financial Highlights


(Share amounts in thousands)	Three months ended December 31, 2022 (8)	Three months ended December 31, 2021 (8)
Net asset value per share at beginning of period	$ 20.38	$ 21.84
Net investment income (1)	0.63	0.54
Net unrealized appreciation (depreciation) (1)	( 0.38 )	( 0.08 )
Net realized gains (losses) (1)	( 0.05 )	0.16
(Provision) benefit for taxes on realized and unrealized gains (losses) (1)	0.01	0.04
Distributions of net investment income to stockholders	( 0.96 )	( 0.47 )
Net asset value per share at end of period	$ 19.63	$ 22.03
Per share market value at beginning of period (7)	$ 18.00	$ 21.18
Per share market value at end of period (7)	$ 20.61	$ 22.38
Total return (2)	19.90 %	7.92 %
Common shares outstanding at beginning of period	61,125	60,120
Common shares outstanding at end of period	61,220	60,156
Net assets at beginning of period	$ 1,245,563	$ 1,312,823
Net assets at end of period	$ 1,201,989	$ 1,325,061
Average net assets (3)	$ 1,241,806	$ 1,327,934
Ratio of net investment income to average net assets (4)	12.40 %	9.65 %
Ratio of total expenses to average net assets (4)	13.11 %	8.99 %
Ratio of net expenses to average net assets (4)	12.87 %	8.77 %
Ratio of portfolio turnover to average investments at fair value	4.24 %	9.14 %
Weighted average outstanding debt (5)	$ 1,441,326	$ 1,331,141
Average debt per share (1)	$ 23.57	$ 22.14
Asset coverage ratio at end of period (6)	176.31 %	200.81 %

__________


(1)			Calculated based upon weighted average shares outstanding for the period.
(2)			Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming dividend reinvestment prices obtained under the Company's DRIP. Total return does not include sales load.
(3)			Calculated based upon the weighted average net assets for the period.
(4)			Interim periods are annualized.
(5)			Calculated based upon the weighted average of principal debt outstanding for the period.
(6)			Based on outstanding senior securities of $ 1,514.4 million and $ 1,300.0 million as of December 31, 2022 and 2021, respectively.
(7)			Per share market values are adjusted to reflect the 1-for-3 reverse stock split of the Company's common stock completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.
(8)			The share and per share information disclosed in this table has been retrospectively adjusted to reflect the Company's 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 12. Derivative Instruments

The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company entered into an International Swaps and Derivatives Association, Inc. Master Agreement (the "ISDA Master Agreement") with its derivative counterparty, JPMorgan Chase Bank, N.A. The ISDA Master Agreement permits a single net payment in the event of a default or similar event. As of December 31, 2022, no cash collateral has been pledged to cover obligations and no cash collateral has been received from the counterparty with respect to the Company's forward currency contracts.

In connection with the issuance of the 2027 Notes, the Company entered into an interest rate swap agreement with the Royal Bank of Canada pursuant to an ISDA Master Agreement. As of December 31, 2022, the Company paid $ 39.8 million to the Royal Bank of Canada to cover collateral obligations under the terms of the interest swap agreement, which is included in due from broker on the Consolidated Statement of Assets and Liabilities.

Certain information related to the Company’s foreign currency forward contracts is presented below as of December 31, 2022.


Description	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Foreign currency forward contract	$	44,825	€	44,224	2/9/2023	$	—	$	( 2,499 )	Derivative liability
Foreign currency forward contract	$	46,412	£	39,965	2/9/2023	$	—	$	( 1,712 )	Derivative liability
						$	—	$	( 4,211 )

Certain information related to the Company’s foreign currency forward contracts is presented below as of September 30, 2022.


Description	Notional Amount to be Purchased		Notional Amount to be Sold		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Foreign currency forward contract	$	43,179	€	41,444	11/10/2022	$	2,466	$	—	Derivative asset
Foreign currency forward contract	$	45,692	£	37,033	11/10/2022	$	4,323	$	—	Derivative asset
						$	6,789	$	—

Certain information related to the Company’s interest rate swap is presented below as of December 31, 2022.


Description	Notional Amount		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Interest rate swap	$	350,000	1/15/2027	$	—	$	39,928	Derivative liability
				$	—	$	39,928

Certain information related to the Company’s interest rate swap is presented below as of September 30, 2022.


Description	Notional Amount		Maturity Date	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Interest rate swap	$	350,000	1/15/2027	$	—	$	41,969	Derivative liability
				$	—	$	41,969

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 13. Commitments and Contingencies

Off-Balance Sheet Arrangements

The Company may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its portfolio companies. As of December 31, 2022, the Company's only off-balance sheet arrangements consisted of $ 198.9 million of unfunded commitments, which was comprised of $ 171.8 million to provide debt and equity financing to certain of its portfolio companies and $ 27.1 million to provide financing to the JVs. As of September 30, 2022, the Company's only off-balance sheet arrangements consisted of $ 224.2 million of unfunded commitments, which was comprised of $ 175.2 million to provide debt and equity financing to certain of its portfolio companies and $ 49.0 million to provide financing to the JVs. Such commitments are subject to the portfolio companies' satisfaction of certain financial and nonfinancial covenants and may involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Consolidated Statements of Assets and Liabilities.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

A list of unfunded commitments by investment (consisting of revolvers, term loans with delayed draw components, subordinated notes and LLC equity interests in the JVs, preferred stock and limited partnership interests) as of December 31, 2022 and September 30, 2022 is shown in the table below:


	December 31, 2022		September 30, 2022
Delta Leasing SPV II LLC	$	23,004	$	27,187
Fairbridge Strategic Capital Funding LLC	15,995		22,150
OCSI Glick JV LLC	13,998		13,998
Senior Loan Fund JV I, LLC	13,125		35,000
BioXcel Therapeutics, Inc.	11,785		11,785
Dominion Diagnostics, LLC	11,148		11,148
BAART Programs, Inc.	7,675		8,645
iCIMs, Inc.	6,930		6,930
Marinus Pharmaceuticals, Inc.	5,734		5,734
scPharmaceuticals Inc.	5,212		—
Assembled Brands Capital LLC	5,035		2,008
RumbleOn, Inc.	4,822		4,822
MRI Software LLC	4,427		5,196
107 Fair Street LLC	4,322		—
Grove Hotel Parcel Owner, LLC	4,293		4,293
Accupac, Inc.	4,197		4,605
Innocoll Pharmaceuticals Limited	4,195		4,195
Avalara, Inc.	4,147		—
Mindbody, Inc.	4,000		4,000
OTG Management, LLC	3,789		3,789
Mesoblast, Inc.	3,553		3,553
Establishment Labs Holdings Inc.	3,384		5,075
112-126 Van Houten Real22 LLC	3,174		—
ADC Therapeutics SA	3,020		3,020
Spanx, LLC	2,762		2,226
PRGX Global, Inc.	2,518		2,518
SCP Eye Care Services, LLC	2,356		—
Relativity ODA LLC	2,218		2,218
Berner Food & Beverage, LLC	2,197		1,392
Salus Workers' Compensation, LLC	2,171		—
Pluralsight, LLC	1,766		3,532
Tahoe Bidco B.V.	1,741		1,741
CorEvitas, LLC	1,526		915
Coyote Buyer, LLC	1,333		1,333
MHE Intermediate Holdings, LLC	1,229		1,429
Kings Buyer, LLC	1,208		1,537
Liquid Environmental Solutions Corporation	1,115		1,115
Acquia Inc.	923		1,326
Apptio, Inc.	892		1,338
Digital.AI Software Holdings, Inc.	826		826
Telestream Holdings Corporation	528		528
GKD Index Partners, LLC	320		320
PFNY Holdings, LLC	275		1,527
Ardonagh Midco 3 PLC	—		4,372
Dialyze Holdings, LLC	—		3,431
Thrasio, LLC	—		2,578
109 Montgomery Owner LLC	—		477
LSL Holdco, LLC	—		427
Total	$	198,868	$	224,239

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Note 14. Subsequent Events

The Company’s management evaluated subsequent events through the date of issuance of the Consolidated Financial Statements. There have been no subsequent events that occurred during such period that would require disclosure in, or would be required to be recognized in the Consolidated Financial Statements as of and for the three months ended December 31, 2022, except as discussed below.

Distribution Declaration

On January 27, 2023, the Company’s Board of Directors declared a quarterly distribution of $ 0.55 per share, payable in cash on March 31, 2023 to stockholders of record on March 15, 2023.

Investment Advisory Agreement

On January 23, 2023, in connection with the consummation of the OSI2 Merger, the Company entered into an amended and restated investment advisory agreement with Oaktree to amend and restate the prior investment advisory agreement, dated as of March 19, 2021, by and between the Company and Oaktree to (1) waive an aggregate of $ 9.0 million of base management fees otherwise payable to the Oaktree in the two years following the closing of the OSI2 Merger and (2) revise the calculation of the incentive fees to eliminate certain unintended consequences of the accounting treatment of the OSI2 Merger on the incentive fees payable to Oaktree. None of the other terms were changed, and the services to be provided by Oaktree and the term of the Investment Advisory Agreement remain the same.

OSI2 Merger

On January 23, 2023, the Company completed the OSI2 Merger. In accordance with the terms of the OSI2 Merger Agreement, at the effective time of the OSI2 Merger, each outstanding share of OSI2 common stock was converted into the right to receive 0.9115 shares of the Company’s common stock (with OSI2’s stockholders receiving cash in lieu of fractional shares of the Company’s common stock). As a result of the OSI2 Merger, the Company issued an aggregate of 15,860,200 shares of its common stock to former OSI2 stockholders. Following completion of the OSI2 Merger, the Company had 77,079,805 shares of common stock outstanding.

OSI2 Citibank Facility

On January 23, 2023, as a result of the consummation of the OSI2 Merger, the Company became party to the OSI2 Citibank Facility (as described below).

OSI 2 Senior Lending SPV, LLC (“OSI 2 SPV”), the Company’s wholly-owned and consolidated subsidiary, is party to a loan and security agreement dated as of July 26, 2019, which was subsequently amended on September 20, 2019, July 2, 2020, December 31, 2020, March 31, 2021 and December 2, 2022 (as amended, the “OSI2 Citibank Loan Agreement”), with the lenders from time to time party thereto and the other parties referenced below. Under the terms of the OSI2 Citibank Loan Agreement, the Company serves as the collateral manager and seller and OSI 2 SPV serves as borrower with Citibank, N.A., as administrative agent, and Deutsche Bank Trust Company Americas, as collateral agent.

The OSI2 Citibank Loan Agreement provides for a senior secured revolving credit facility (the “OSI2 Citibank Facility”) of up to $ 250 million (the “Citibank Maximum Commitment”) in aggregate principal amount, subject to the lesser of (i) the borrowing base, which is an amount based on advance rates that vary depending on the class of assets and the value assigned to such assets under the OSI2 Citibank Loan Agreement and (ii) the Citibank Maximum Commitment. The OSI2 Citibank Facility has a reinvestment period through May 26, 2023, during which advances may be made, and matures on January 26, 2025. Following the reinvestment period, OSI 2 SPV will be required to make certain mandatory amortization payments. Borrowings under the OSI2 Citibank Facility bear interest payable quarterly at a rate per year equal to (a) in the case of a lender that is identified as a conduit lender under the OSI2 Citibank Loan Agreement, the lesser of (i) the applicable commercial paper rate for such conduit lender and (ii) LIBOR for a three month maturity and (b) for all other lenders under the OSI2 Citibank Facility, LIBOR, plus, in each case, an applicable spread. During the reinvestment period, the applicable spread is the greater of (i) a weighted average rate of (x) 1.65 % per year for broadly syndicated loans and (y) 2.25 % per year for all other eligible loans and (ii) 1.85 %. After the reinvestment period, the applicable spread is 3.00 % per year. There is also a non-usage fee of 0.50 % per year on the unused portion of the OSI2 Citibank Facility, payable quarterly; provided that if the unused portion of the OSI2 Citibank Facility is greater than 30 % of the commitments under the OSI2 Citibank Facility, the non-usage fee will be based on an unused portion of 30 % of the commitments under the OSI2 Citibank Facility.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The OSI2 Citibank Facility is secured by a first priority security interest in substantially all of OSI 2 SPV’s assets.

As part of the OSI2 Citibank Facility, OSI 2 SPV is subject to certain limitations as to how borrowed funds may be used and the types of loans that are eligible to be acquired by OSI 2 SPV including restrictions on sector concentrations, loan size, tenor and minimum investment ratings (or estimated ratings). The OSI2 Citibank Facility also contains certain requirements relating to interest coverage, collateral quality and portfolio performance, certain violations of which could result in the acceleration of the amounts due under the OSI2 Citibank Facility.

Under the OSI2 Citibank Facility, the Company and OSI 2 SPV, as applicable, have made customary representations and warranties, and are required to comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar credit facilities.

OSI 2 SPV’s borrowings are non-recourse to the Company but are considered borrowings of the Company for purposes of complying with the asset coverage requirements under the Investment Company Act.

As of January 23, 2023, the Company had $ 225.0 million outstanding under the OSI2 Citibank Facility.

Reverse Stock Split

On January 20, 2023, the Company amended its restated certificate of incorporation, as amended and corrected, to effect a 1-for-3 reverse stock split. Immediately following completion of the reverse stock split, the Company had 61,219,605 shares of common stock outstanding.

Schedule 12-14

Oaktree Specialty Lending Corporation

Schedule of Investments in and Advances to Affiliates

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Three months ended December 31, 2022

(unaudited)


Portfolio Company/Type of Investment (1)	Cash Interest Rate		Industry	Principal		Net Realized Gain (Loss)		Amount of Interest, Fees or Dividends Credited in Income (2)		Fair Value as of October 1, 2022		Gross Additions (3)		Gross Reductions (4)		Fair Value as of December 31, 2022		% of Total Net Assets
Control Investments
C5 Technology Holdings, LLC			Data Processing & Outsourced Services
829 Common Units						$	—	$	—	$	—	$	—	$	—	$	—	—	%
34,984,460.37 Preferred Units						—		—		27,638		—		—		27,638		2.3	%
Dominion Diagnostics, LLC			Health Care Services
First Lien Term Loan, LIBOR+ 5.00 % cash due 2/28/2024	9.73	%		$	14,297	—		331		14,333		—		( 36 )		14,297		1.2	%
First Lien Revolver, LIBOR+ 5.00 % cash due 2/28/2024				—		—		14		—		—		—		—		—	%
30,030.8 Common Units in DD Healthcare Services Holdings, LLC						—		—		4,946		—		( 719 )		4,227		0.4	%
OCSI Glick JV LLC (5)			Multi-Sector Holdings
Subordinated Debt, LIBOR+ 4.50 % cash due 10/20/2028	7.67	%		59,049		—		1,624		50,283		380		( 1,127 )		49,536		4.1	%
87.5 % equity interest						—		—		—		—		—		—		—	%
Senior Loan Fund JV I, LLC (6)			Multi-Sector Holdings
Subordinated Debt, LIBOR+ 7.00 % cash due 12/29/2028	10.17	%		112,656		—		2,611		96,250		16,406		—		112,656		9.4	%
87.5 % LLC equity interest						—		1,050		20,715		5,469		( 2,076 )		24,108		2.0	%
Total Control Investments				$	186,002	$	—	$	5,630	$	214,165	$	22,255	$	( 3,958 )	$	232,462	19.3	%

Affiliate Investments
Assembled Brands Capital LLC			Specialized Finance
First Lien Revolver, LIBOR+ 6.75 % cash due 10/17/2023	11.48	%		$	21,464	$	—	$	646	$	24,225	$	55	$	( 3,028 )	$	21,252	1.8	%
1,609,201 Class A Units						—		—		370		—		( 16 )		354		—	%
1,019,168.80 Preferred Units, 6 %						—		—		1,223		20		—		1,243		0.1	%
70,424.5641 Class A Warrants (exercise price $ 3.3778 ) expiration date 9/9/2029						—		—		—		—		—		—		—	%
Caregiver Services, Inc.			Health Care Services
1,080,399 shares of Series A Preferred Stock, 10 %				—		—		—		378		—		( 54 )		324		—	%
Total Affiliate Investments				$	21,464	$	—	$	646	$	26,196	$	75	$	( 3,098 )	$	23,173	1.9	%
Total Control & Affiliate Investments				$	207,466	$	—	$	6,276	$	240,361	$	22,330	$	( 7,056 )	$	255,635	21.2	%

This schedule should be read in connection with the Company's Consolidated Financial Statements, including the Consolidated Schedules of Investments and Notes to the Consolidated Financial Statements.

______________________

(1) The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments.

(2) Represents the total amount of interest (net of non-accrual amounts), fees and dividends credited to income for the portion of the period an investment was included in the Control or Affiliate categories.

(3) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest (net of non-accrual amounts) and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.

(4) Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.

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

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

Schedule 12-14

Oaktree Specialty Lending Corporation

Schedule of Investments in and Advances to Affiliates

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Three months ended December 31, 2021

(unaudited)


Portfolio Company/Type of Investment (1)	Cash Interest Rate		Industry	Principal		Net Realized Gain (Loss)		Amount of Interest, Fees or Dividends Credited in Income (2)		Fair Value as of October 1, 2021		Gross Additions (3)		Gross Reductions (4)		Fair Value as of December 31, 2021		% of Total Net Assets
Control Investments
C5 Technology Holdings, LLC			Data Processing & Outsourced Services
829 Common Units						$	—	$	—	$	—	$	—	$	—	$	—	—	%
34,984,460.37 Preferred Units						—		—		27,638		—		—		27,638		2.1	%
Dominion Diagnostics, LLC			Health Care Services
First Lien Term Loan, LIBOR+ 5.00 % cash due 2/28/2024	6.00	%		$	23,201	—		430		27,381		—		( 4,180 )		23,201		1.8	%
First Lien Revolver, LIBOR+ 5.00 % cash due 2/28/2024				—		—		14		—		—		—		—		—	%
30,030.8 Common Units in DD Healthcare Services Holdings, LLC						—		3,308		18,065		—		—		18,065		1.4	%
First Star Speir Aviation Limited (5)			Airlines
First Lien Term Loan, 9.00 % cash due 12/15/2025				—		7,500		—		7,500		—		( 7,500 )		—		—	%
100 % equity interest						( 5,632 )		158		698		—		( 698 )		—		—	%
OCSI Glick JV LLC (6)			Multi-Sector Holdings
Subordinated Debt, LIBOR+ 4.50 % cash due 10/20/2028	4.58	%		61,237		—		1,081		55,582		745		( 473 )		55,854		4.2	%
87.5 % equity interest						—		—		—		—		—		—		—	%
Senior Loan Fund JV I, LLC (7)			Multi-Sector Holdings
Subordinated Debt, LIBOR+ 7.00 % cash due 12/29/2028	8.00	%		96,250		—		1,967		96,250		—		—		96,250		7.3	%
87.5 % LLC equity interest						—		451		37,651		810		—		38,461		2.9	%
Total Control Investments				$	180,688	$	1,868	$	7,409	$	270,765	$	1,555	$	( 12,851 )	$	259,469	19.6	%

Affiliate Investments
Assembled Brands Capital LLC			Specialized Finance
First Lien Revolver, LIBOR+ 6.75 % cash due 10/17/2023	7.75	%		$	15,982	$	—	$	339	$	15,712	$	3,499	$	( 3,487 )	$	15,724	1.2	%
1,609,201 Class A Units						—		—		587		—		( 201 )		386		—	%
1,019,168.80 Preferred Units, 6 %						—		—		1,152		20		—		1,172		0.1	%
70,424.5641 Class A Warrants (exercise price $ 3.3778 ) expiration date 9/9/2029						—		—		—		—		—		—		—	%
Caregiver Services, Inc.			Health Care Services
1,080,399 shares of Series A Preferred Stock, 10 %				—		—		—		838		—		—		838		0.1	%
Total Affiliate Investments				$	15,982	$	—	$	339	$	18,289	$	3,519	$	( 3,688 )	$	18,120	1.4	%
Total Control & Affiliate Investments				$	196,670	$	1,868	$	7,748	$	289,054	$	5,074	$	( 16,539 )	$	277,589	21.0	%

______________________

(1) The principal amount and ownership detail are shown in the Company's Consolidated Schedules of Investments included in the Company's quarterly report on Form 10-Q for the quarter ended December 31, 2021.

(5) First Star Speir Aviation Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy. In accordance with ASU 2013-08, the Company has deemed the holding company to be an investment company under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income. Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.

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

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in connection with our Consolidated Financial Statements and the notes thereto included elsewhere in this quarterly report on Form 10-Q.

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q may include statements as to:

• our future operating results and distribution projections;

• the ability of Oaktree Fund Advisors, LLC, or Oaktree, to reposition our portfolio and to implement Oaktree's future plans with respect to our business;

• the ability of Oaktree and its affiliates to attract and retain highly talented professionals;

• our business prospects and the prospects of our portfolio companies;

• the impact of the investments that we expect to make;

• the ability of our portfolio companies to achieve their objectives;

• our expected financings and investments and additional leverage we may seek to incur in the future;

• the adequacy of our cash resources and working capital;

• the timing of cash flows, if any, from the operations of our portfolio companies; and

• the cost or potential outcome of any litigation to which we may be a party.

In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “ Item 1A. Risk Factors ” in our annual report on Form 10-K for the year ended September 30, 2022 and elsewhere in this quarterly report on Form 10-Q.

Other factors that could cause actual results to differ materially include:

• changes or potential disruptions in our operations, the economy, financial markets or political environment, including the impacts of inflation and rising interest rates;

• risks associated with possible disruption in our operations or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters or pandemics;

• future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to Business Development Companies or, regulated investment companies, or RICs;

• the ability to realize the benefits of the OSI2 Merger (as defined below); and

• other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission, or the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

All dollar amounts in tables are in thousands, except share and per share amounts and as otherwise indicated.

Business Overview

We are a specialty finance company dedicated to providing customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. We are a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act of 1940, as amended, or the Investment Company Act. In addition, we have qualified and elected to be treated as a RIC under the Internal Revenue Code of 1986, as amended, or the Code, for U.S. federal income tax purposes.

We are externally managed by Oaktree pursuant to an investment advisory agreement, as amended from time to time, or the Investment Advisory Agreement. Oaktree Fund Administration, LLC, or Oaktree Administrator, an affiliate of Oaktree, provides certain administrative and other services necessary for us to operate pursuant to an administration agreement, as amended from time to time, or the Administration Agreement.

Our 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. We may also seek to generate capital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions. Our portfolio may also include certain structured finance and other non-traditional structures. We invest in companies that typically possess resilient business models with strong underlying fundamentals. We intend to deploy capital across credit and economic cycles with a focus on long-term results, which we believe will enable us to build lasting partnerships with financial sponsors and management teams, and we may seek to opportunistically take advantage of dislocations in the financial markets and other situations that may benefit from Oaktree’s credit and structuring expertise. Sponsors may include financial sponsors, such as an institutional investor or a private equity firm, or a strategic entity seeking to invest in a portfolio company. Oaktree is generally focused on middle-market companies, which we define as companies with enterprise values of between $100 million and $750 million. We generally invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “high yield” and “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal.

In the current market environment, Oaktree intends to focus on the following area, in which Oaktree believes there is less competition and thus potential for greater returns, for our new investment opportunities: (1) situational lending, which we define to include directly originated loans to non-sponsor companies that are hard to understand and value using traditional underwriting techniques, (2) select sponsor lending, which we define to include financing to support leveraged buyouts of companies with specialized sponsors that have expertise in certain industries, and (3) stressed sector and rescue lending, which we define to include opportunistic private loans in industries experiencing stress or limited access to capital.

Oaktree intends to continue to rotate our portfolio into investments that are better aligned with Oaktree's overall approach to credit investing and that it believes have the potential to generate attractive returns across market cycles (which we call "core investments"). Oaktree has performed a comprehensive review of our portfolio and categorized our portfolio into core investments, non-core performing investments and underperforming investments. Certain additional information on such categorization and our portfolio composition is included in investor presentations that we file with the SEC. Since an Oaktree affiliate became our investment adviser in October 2017, Oaktree and its affiliates have reduced the investments identified as non-core by approximately $800 million at fair value. Over time, Oaktree intends to rotate us out of the remaining non-core investments, which were approximately $71 million at fair value as of December 31, 2022. Oaktree periodically reviews designations of investments as core and non-core and may change such designations over time.

On March 19, 2021, we acquired Oaktree Strategic Income Corporation, or OCSI, pursuant to an agreement and plan or merger, or the OCSI Merger Agreement, dated as of October 28, 2020, by and among OCSI, us, Lion Merger Sub, Inc., our wholly-owned subsidiary, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OCSI Merger Agreement, OCSI was merged with and into us in a two-step transaction with us as the surviving company, or the OCSI Merger.

On January 23, 2023, we acquired Oaktree Strategic Income II, Inc., or OSI2, pursuant to that certain Agreement and Plan of Merger, or the OSI2 Merger Agreement, dated as of September 14, 2022, by and among OSI2, us, Project Superior Merger Sub, Inc., a wholly-owned subsidiary of us, and, solely for the limited purposes set forth therein, Oaktree. Pursuant to the OSI2 Merger Agreement, OSI2 was merged with and into us in a two-step transaction with us as the surviving company, or the OSI2 Merger.

Business Environment and Developments

Global financial markets have experienced an increase in volatility as concerns about the impact of higher inflation, rising interest rates, a potential recession and the current conflict in Ukraine have weighed on market participants. These factors have created disruptions in supply chains and economic activity and have had a particularly adverse impact on certain companies in the energy, raw materials and transportation sectors, among others. These uncertainties can ultimately impact the overall supply and demand of the market through changing spreads, deal terms and structures and equity purchase price multiples.

We are unable to predict the full effects of these macroeconomic events or how long any further market disruptions or volatility might last. We continue to closely monitor the impact these events have on our business, industry and portfolio companies and will provide constructive solutions where necessary.

Against this uncertain macroeconomic backdrop, we believe attractive risk-adjusted returns can be achieved by making loans to middle market companies that typically possess resilient business models with strong underlying fundamentals. Given the breadth of the investment platform and decades of credit investing experience of Oaktree and its affiliates, we believe that we have the resources and experience to source, diligence and structure investments in these companies and are well placed to generate attractive returns for investors.

As of December 31, 2022, 87.3% of our debt investment portfolio (at fair value) and 87.2% of our debt investment portfolio (at cost) bore interest at floating rates. Most of our floating rate loans are indexed to the London Interbank Offered Rate, or LIBOR, and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly or monthly at the borrower’s option. Certain loans may also be indexed to the Secured Overnight Financing Rate, or SOFR, or the Sterling Overnight Index Average, or SONIA. Most U.S. dollar LIBOR rates will continue to be published through June 30, 2023. The FCA no longer compels panel banks to continue to contribute to LIBOR and the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have encouraged banks to cease entering into new contracts that use U.S. dollar LIBOR as a reference rate. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, supports replacing U.S.-dollar LIBOR with SOFR. Although there are an increasing number of issuances utilizing SOFR or SONIA, these alternative reference rates may not attain market acceptance as replacements for LIBOR. In anticipation of the cessation of LIBOR, we may need to renegotiate any credit agreements extending beyond the applicable phase out date with our prospective portfolio companies that utilize LIBOR as a factor in determining the interest rate. Certain of the loan agreements with our portfolio companies have included fallback language in the event that LIBOR becomes unavailable. This language generally provides that the administrative agent may identify a replacement reference rate, typically with the consent of (or prior consultation with) the borrower. In certain cases, the administrative agent will be required to obtain the consent of either a majority of the lenders under the facility, or the consent of each lender, prior to identifying a replacement reference rate. Certain of the loan agreements with our portfolio companies do not include any fallback language providing a mechanism for the parties to negotiate a new reference interest rate and will instead revert to the base rate in the event LIBOR ceases to exist.

Critical Accounting Estimates

Investment Valuation

We value our investments in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures , or ASC 820, which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices 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 3 — Unobservable inputs that reflect Oaktree’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.

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 our 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.

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, Oaktree 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, Oaktree 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, or EV, of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that we are deemed to control under the 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 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. Oaktree may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. Under the EV technique, the significant unobservable input used in the fair value measurement of our investments in debt or equity securities is the EBITDA, revenue or asset multiple, as applicable. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and we consider the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, Oaktree depends on primary market data, including newly funded transactions and industry-specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable. Under the market yield technique, the significant unobservable input used in the fair value measurement of our investments in debt securities is the market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.

Oaktree estimates the fair value of certain privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk-free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.

The fair value of our investments as of December 31, 2022 and September 30, 2022 was determined by Oaktree, as our valuation designee. We have and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of our portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter. As of December 31, 2022, 92.1% of our portfolio at fair value was valued either based on market quotations, the transactions precedent approach or corroborated by independent valuation firms.

Certain factors that may be considered in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company’s earnings and its ability to make payments on its indebtedness, the markets in which the portfolio company does business, comparison to comparable publicly-traded companies, discounted cash flow and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to these uncertainties, Oaktree's fair value determinations may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize upon the sale of one or more of our investments.

As of December 31, 2022, we held $2,642.9 million of investments at fair value, up from $2,494.1 million held at September 30, 2022, primarily driven by new originations outpacing the rate of repayments. As of December 31, 2022 and September 30, 2022, approximately 95.5% and 94.2%, respectively, of our total assets represented investments at fair value.

Revenue Recognition

Interest Income

Interest income, adjusted for accretion of original issue discount, or OID, is recorded on an accrual basis to the extent that such amounts are expected to be collected. We stop accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash, and the portfolio company, in management’s judgment, is likely to continue timely payment of its remaining obligations. As of each of December 31, 2022 and September 30, 2022, there were no investments on non-accrual status.

In connection with our investment in a portfolio company, we sometimes receive nominal cost equity that is valued as part of the negotiation process with the portfolio company. When we receive nominal cost equity, we allocate our cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.

PIK Interest Income

Our investments in debt securities may contain payment-in-kind, or PIK, interest provisions. PIK interest, which typically represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We generally cease accruing PIK interest if there is insufficient value to support the accrual or if we do not expect the portfolio company to be able to pay all principal and interest due. Our decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; our assessment of the portfolio company's business development success; information obtained by us in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. Our determination to cease accruing PIK interest is generally made well before our full write-down of a loan or debt security. In addition, if it is subsequently determined that we will not be able to collect any previously accrued PIK interest, the fair value of 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 our debt investments increases the recorded cost bases of these investments in our Consolidated Financial Statements including for purposes of computing the capital gains incentive fee payable by us to Oaktree. To maintain our status as a RIC, certain income from PIK interest may be required to be distributed to our stockholders, even though we have not yet collected the cash and may never do so.

Portfolio Composition

Our investments principally consist of loans, common and preferred equity and warrants in privately-held companies, Senior Loan Fund JV I, LLC, or SLF JV I, a joint venture through which we and Trinity Universal Insurance Company, a subsidiary of Kemper Corporation, or Kemper, co-invest in senior secured loans of middle-market companies and other corporate debt securities, and OCSI Glick JV LLC, or the Glick JV, a joint venture through which we and GF Equity Funding 2014 LLC, or GF Equity Funding, co-invest primarily in senior secured loans of middle-market companies. We refer to SLF JV I and the Glick JV collectively as the JVs. Our loans are typically secured by a first, second or subordinated lien on the assets of the portfolio company and generally have terms of up to ten years (but an expected average life of between three and four years).

During the three months ended December 31, 2022, we originated $250.3 million of investment commitments in 18 new and seven existing portfolio companies and funded $274.4 million of investments.

During the three months ended December 31, 2022, we received $104.4 million of proceeds from prepayments, exits, other paydowns and sales and exited 11 portfolio companies.

A summary of the composition of our investment portfolio at cost and fair value as a percentage of total investments is shown in the following tables:


	December 31, 2022		September 30, 2022
Cost:
Senior secured debt	84.94	%	85.08	%
Debt investments in the JVs	5.85		5.59
Preferred equity	3.16		3.26
Subordinated debt	2.48		2.57
LLC equity interests of the JVs	1.97		1.88
Common equity and warrants	1.60		1.62
Total	100.00	%	100.00	%


	December 31, 2022		September 30, 2022
Fair value:
Senior secured debt	86.32	%	86.86	%
Debt investments in the JVs	6.14		5.88
Preferred equity	3.05		3.19
Subordinated debt	2.35		2.28
Common equity and warrants	1.23		0.96
LLC equity interests of the JVs	0.91		0.83
Total	100.00	%	100.00	%

The industry composition of our portfolio at cost and fair value as a percentage of total investments was as follows:


	December 31, 2022		September 30, 2022
Cost:
Application Software	15.66	%	14.98	%
Multi-Sector Holdings (1)	8.27		7.48
Pharmaceuticals	4.73		4.83
Data Processing & Outsourced Services	4.25		4.60
Biotechnology	4.02		4.20
Health Care Technology	3.97		3.82
Specialized Finance	3.15		3.09
Industrial Machinery	2.93		3.12
Health Care Services	2.37		2.24
Internet & Direct Marketing Retail	2.36		2.59
Aerospace & Defense	2.23		2.37
Construction & Engineering	2.19		2.33
Health Care Distributors	2.10		2.18
Other Diversified Financial Services	2.06		1.12
Personal Products	1.91		2.03
Automotive Retail	1.86		2.26
Auto Parts & Equipment	1.84		0.48
Real Estate Operating Companies	1.80		1.82
Fertilizers & Agricultural Chemicals	1.77		1.88
Internet Services & Infrastructure	1.77		2.07
Metal & Glass Containers	1.70		1.82
Home Improvement Retail	1.63		1.75
Soft Drinks	1.58		1.31
Airport Services	1.57		1.65
Leisure Facilities	1.48		1.52
Insurance Brokers	1.41		1.36
Diversified Support Services	1.37		1.45
Specialty Chemicals	1.34		1.43
Health Care Supplies	1.32		1.39
Real Estate Services	1.30		1.54
Integrated Telecommunication Services	1.25		1.32
Electrical Components & Equipment	1.22		1.29
Advertising	0.99		1.08
Movies & Entertainment	0.94		1.00
Distributors	0.91		0.97
Airlines	0.87		—
Health Care Equipment	0.79		0.93
Environmental & Facilities Services	0.76		0.80
Oil & Gas Storage & Transportation	0.72		0.85
Home Furnishings	0.70		0.75
Systems Software	0.54		0.57
Consumer Finance	0.52		0.55
Hotels, Resorts & Cruise Lines	0.50		0.53
IT Consulting & Other Services	0.42		0.45
Restaurants	0.34		0.36
Education Services	0.33		0.35
Cable & Satellite	0.29		0.79
Research & Consulting Services	0.28		0.35
Apparel, Accessories & Luxury Goods	0.19		0.20
Air Freight & Logistics	0.18		0.28
Integrated Oil & Gas	0.18		0.19
Apparel Retail	0.17		0.20
Food Distributors	0.17		0.18
Specialized REITs	0.16		0.16
Real Estate Development	0.15		—
Diversified Banks	0.13		0.13
Technology Distributors	0.11		0.12
Construction Materials	0.08		0.09
Housewares & Specialties	0.08		0.09
Electronic Components	0.08		0.08
Alternative Carriers	0.01		0.01
Oil & Gas Refining & Marketing	—		0.33
Trading Companies & Distributors	—		0.29
Total	100.00	%	100.00	%


	December 31, 2022		September 30, 2022
Fair value:
Application Software	15.95	%	15.43	%
Multi-Sector Holdings (1)	7.53		6.71
Pharmaceuticals	4.82		4.79
Biotechnology	4.37		4.35
Data Processing & Outsourced Services	4.02		4.46
Health Care Technology	3.92		3.90
Industrial Machinery	3.02		3.25
Specialized Finance	3.02		2.93
Internet & Direct Marketing Retail	2.50		2.82
Aerospace & Defense	2.33		2.48
Construction & Engineering	2.31		2.45
Health Care Distributors	2.08		2.19
Other Diversified Financial Services	2.05		0.98
Fertilizers & Agricultural Chemicals	1.98		2.08
Health Care Services	1.94		1.84
Automotive Retail	1.92		2.31
Real Estate Operating Companies	1.90		1.93
Auto Parts & Equipment	1.89		0.46
Internet Services & Infrastructure	1.85		2.16
Personal Products	1.85		2.01
Home Improvement Retail	1.71		1.82
Metal & Glass Containers	1.69		1.91
Soft Drinks	1.68		1.35
Airport Services	1.64		1.72
Leisure Facilities	1.54		1.57
Insurance Brokers	1.48		1.33
Health Care Supplies	1.43		1.47
Diversified Support Services	1.35		1.47
Real Estate Services	1.35		1.59
Electrical Components & Equipment	1.25		1.32
Integrated Telecommunication Services	1.21		1.29
Specialty Chemicals	1.19		1.36
Movies & Entertainment	1.00		1.07
Advertising	0.98		1.08
Airlines	0.98		—
Distributors	0.93		0.98
Health Care Equipment	0.86		0.97
Environmental & Facilities Services	0.78		0.83
Oil & Gas Storage & Transportation	0.69		0.84
Home Furnishings	0.68		0.73
Hotels, Resorts & Cruise Lines	0.53		0.56
Systems Software	0.46		0.51
Consumer Finance	0.43		0.53
Education Services	0.34		0.34
Restaurants	0.33		0.35
Cable & Satellite	0.30		0.78
Research & Consulting Services	0.27		0.34
IT Consulting & Other Services	0.26		0.34
Integrated Oil & Gas	0.18		0.20
Apparel Retail	0.18		0.21
Real Estate Development	0.16		—
Air Freight & Logistics	0.16		0.26
Food Distributors	0.14		0.13
Diversified Banks	0.13		0.14
Specialized REITs	0.12		0.13
Technology Distributors	0.11		0.12
Housewares & Specialties	0.09		0.10
Construction Materials	0.07		0.08
Electronic Components	0.06		0.08
Alternative Carriers	0.01		0.01
Oil & Gas Refining & Marketing	—		0.34
Trading Companies & Distributors	—		0.22
Total	100.00	%	100.00	%

___________________

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

The Joint Ventures

Senior Loan Fund JV I, LLC

In May 2014, we entered into a limited liability company, or LLC, agreement with Kemper to form SLF JV I. We co-invest in senior secured loans of middle-market companies and other corporate debt securities with Kemper through our investment in SLF JV I. SLF JV I is managed by a four person Board of Directors, two of whom are selected by us and two of whom are selected by Kemper. All portfolio decisions and investment decisions in respect of SLF JV I must be approved by the SLF JV I investment committee, which consists of one representative selected by us and one representative selected by Kemper (with approval from a representative of each required). Since we do not have a controlling financial interest in SLF JV I, we do not consolidate SLF JV I. SLF JV I is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act. SLF JV I is capitalized pro rata with LLC equity interests as transactions are completed and may be capitalized with additional subordinated notes issued to us 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 December 31, 2022 and September 30, 2022, we 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. As of December 31, 2022, we and Kemper had funded approximately $190.5 million to SLF JV I, of which $166.7 million was from us. As of September 30, 2022, we and Kemper had funded approximately $165.5 million to SLF JV I, of which $144.8 million was from us. As of December 31, 2022, we had aggregate commitments to fund SLF JV I of $13.1 million, of which approximately $9.8 million was to fund additional SLF JV I Notes and approximately $3.3 million was to fund LLC equity interests in SLF JV I. During the three months ended December 31, 2022, we contributed $16.4 million to fund additional SLF JV I Notes and approximately $5.5 million to fund additional LLC equity interests in SLF JV I. As of September 30, 2022, we had aggregate commitments to fund SLF JV I of $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.

Both the cost and fair value of our SLF JV I Notes were $112.7 million as of December 31, 2022. Both the cost and fair value of our SLF JV I Notes were $96.3 million as of September 30, 2022. We earned interest income of $2.6 million and $2.0 million on the SLF JV I Notes for the three months ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the SLF JV I Notes bore interest at a rate of one-month LIBOR plus 7.00% per annum with a LIBOR floor of 1.00% and will mature on December 29, 2028.

The cost and fair value of the LLC equity interests in SLF JV I held by us was $54.8 million and $24.1 million, respectively, as of December 31, 2022, and $49.3 million and $20.7 million, respectively, as of September 30, 2022. We earned $1.1 million and $0.5 million in dividend income for the three months ended December 31, 2022 and December 31, 2021, respectively, with respect to our investment in the LLC equity interests of SLF JV I.

Below is a summary of SLF JV I's portfolio as of December 31, 2022 and September 30, 2022:


	December 31, 2022	September 30, 2022
Senior secured loans (1)	$382,148	$383,194
Weighted average interest rate on senior secured loans (2)	9.55%	8.33%
Number of borrowers in SLF JV I	59	60
Largest exposure to a single borrower (1)	$11,337	$10,093
Total of five largest loan exposures to borrowers (1)	$51,990	$48,139

__________________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

See " Note 3. Portfolio Investments" in the notes to the accompanying financial statements for more information on SLF JV I and its portfolio.

OCSI Glick JV LLC

On March 19, 2021, we became party to the LLC agreement of the Glick JV. The Glick JV invests primarily in senior secured loans of middle-market companies. We co-invest in these securities with GF Equity Funding through the Glick JV. The Glick JV is managed by a four person Board of Directors, two of whom are selected by us and two of whom are selected by GF Equity Funding. All portfolio decisions and investment decisions in respect of the Glick JV must be approved by the Glick JV investment committee, consisting of one representative selected by us and one representative selected by GF Equity Funding (with approval from a representative of each required). Since we do not have a controlling financial interest in the Glick JV, we do not consolidate the Glick JV. The Glick JV is not an "eligible portfolio company" as defined in section 2(a)(46) of the Investment Company Act. The Glick JV is capitalized as transactions are completed. The members provide capital to the Glick JV in exchange for LLC equity interests, and we and GF Debt Funding, an entity advised by affiliates of GF Equity Funding, provide capital to the Glick JV in exchange for subordinated notes issued by the Glick JV, or the Glick JV Notes. The Glick JV Notes are junior in right of payment to the repayment of temporary contributions made by us to fund investments of the Glick JV that are repaid when GF Equity Funding and GF Debt Funding make their capital contributions and fund their Glick JV Notes, respectively.

As of December 31, 2022 and September 30, 2022, we and GF Equity Funding owned 87.5% and 12.5%, respectively, of the outstanding LLC equity interests, and we and GF Debt Funding owned 87.5% and 12.5%, respectively, of the Glick JV Notes. Approximately $84.0 million in aggregate commitments was funded as of each of December 31, 2022 and September 30, 2022, of which $73.5 million was from us. As of December 31, 2022 and September 30, 2022, we had commitments to fund Glick JV Notes of $78.8 million, of which $12.4 million was unfunded. As of each of December 31, 2022 and September 30, 2022, we had commitments to fund LLC equity interests in the Glick JV of $8.7 million, of which $1.6 million was unfunded.

The cost and fair value of our aggregate investment in the Glick JV was $50.0 million and $49.5 million, respectively, as of December 31, 2022 . The cost and fair value of our aggregate investment in the Glick JV was $50.2 million and $50.3 million, respectively, as of September 30, 2022 . For the three months ended December 31, 2022 and December 31, 2021, our investment in the Glick JV Notes earned interest income of $1.6 million and $1.1 million, respectively. We did not earn any dividend income for the three months ended December 31, 2022 and December 31, 2021 with respect to our investment in the LLC equity interests of the Glick JV.

Below is a summary of the Glick JV's portfolio as of December 31, 2022 and September 30, 2022:


	December 31, 2022	September 30, 2022
Senior secured loans (1)	$134,080	$143,225
Weighted average current interest rate on senior secured loans (2)	9.86%	8.52%
Number of borrowers in the Glick JV	40	43
Largest loan exposure to a single borrower (1)	$7,476	$6,562
Total of five largest loan exposures to borrowers (1)	$29,830	$28,973

__________

(1) At principal amount.

(2) Computed using the weighted average annual interest rate on accruing senior secured loans at fair value.

See " Note 3. Portfolio Investments" in the notes to the accompanying financial statements for more information on the Glick JV and its portfolio.

Discussion and Analysis of Results and Operations

Results of Operations

Net increase (decrease) in net assets resulting from operations includes net investment income, net realized gains (losses) and net unrealized appreciation (depreciation). Net investment income is the difference between our income from interest, dividends and fees and net expenses. Net realized gains (losses) is the difference between the proceeds received from dispositions of investment related assets and liabilities and their stated costs. Net unrealized appreciation (depreciation) is the net change in the fair value of our investment related assets and liabilities carried at fair value during the reporting period, including the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

Comparison of three months ended December 31, 2022 and December 31, 2021

Total Investment Income

Total investment income includes interest on our investments, fee income and dividend income.

Total investment income for the three months ended December 31, 2022 and 2021 was $79.2 million and $64.9 million, respectively. For the three months ended December 31, 2022, this amount consisted of $76.1 million of interest income from portfolio investments (which included $6.1 million of PIK interest), $2.0 million of fee income and $1.1 million of dividend income. For the three months ended December 31, 2021, this amount consisted of $60.1 million of interest income from portfolio investments (which included $4.7 million of PIK interest), $0.9 million of fee income and $3.9 million of dividend income. The increase of $14.2 million, or 21.9%, in our total investment income for the three months ended December 31, 2022, as compared to the three months ended December 31, 2021, was due primarily to (1) a $16.0 million increase in interest income, which was primarily driven by the impact of rising reference rates on interest income and (2) a $1.1 million increase in fee income primarily due to higher exit and amendment fees. This was partially offset by a $2.9 million decrease in dividend income.

Expenses

Net expenses (expenses net of fee waivers) for the three months ended December 31, 2022 and 2021 were $40.3 million and $29.3 million, respectively. Net expenses increased for the three months ended December 31, 2022, as compared to the three months ended December 31, 2021, by $11.0 million, or 37.3%, primarily due to (1) a $11.3 million increase in interest expense due to higher borrowings outstanding and the impact of rising reference rates and (2) a $1.2 million increase in Part I incentive fees mainly due to higher total investment income. These were partially offset by $1.8 million of lower accrued Part II incentive fees.

Net Investment Income

Primarily as a result of the $14.2 million increase in total investment income, the $11.0 million increase in net expenses and a $3.3 million decrease in the provision for taxes on net investment income, net investment income for the three months ended December 31, 2022 increased by $6.5 million compared to the three months ended December 31, 2021.

Realized Gain (Loss)

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of investments and foreign currency and the cost basis without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period, net of recoveries. Realized losses may also be recorded in connection with our determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.

During the three months ended December 31, 2022 and 2021, we recorded aggregate net realized gains (losses) of $(3.2) million and $9.3 million, respectively, in connection with the exits of various investments and foreign currency forward contracts. See “ Note 8. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation ” in the notes to the accompanying Consolidated Financial Statements for more details regarding investment realization events for the three months ended December 31, 2022 and 2021.

Net Unrealized Appreciation (Depreciation)

Net unrealized appreciation or depreciation is the net change in the fair value of our investments and foreign currency during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

During the three months ended December 31, 2022 and 2021, we recorded net unrealized depreciation of $23.0 million and $4.6 million, respectively. For the three months ended December 31, 2022, this consisted of $18.7 million of net unrealized depreciation on debt investments and $11.0 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $3.9 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses) and $2.8 million of net unrealized appreciation on equity investments. For the three months ended December 31, 2021, this consisted of $4.7 million of net unrealized depreciation related to exited investments (a portion of which resulted in a reclassification to realized gains), $1.8 million of net unrealized depreciation on debt investments and $0.8 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $2.8 million of net unrealized appreciation on equity investments.

Financial Condition, Liquidity and Capital Resources

We have a number of alternatives available to fund our investment portfolio and our operations, including raising equity, increasing or refinancing debt and funding from operational cash flow. We generally expect to fund the growth of our investment portfolio through additional debt and equity capital, which may include securitizing a portion of our investments. We cannot assure you, however, that our efforts to grow our portfolio will be successful. For example, our common stock has generally traded at prices below net asset value for the past several years, and we may not be able to raise additional equity at prices below the then-current net asset value per share. We intend to continue to generate cash primarily from cash flows from operations, including interest earned, and future borrowings or equity offerings. We intend to fund our future distribution obligations through operating cash flow or with funds obtained through future equity and debt offerings or credit facilities, as we deem appropriate.

Our primary uses of funds are investments in our targeted asset classes and cash distributions to holders of our common stock. We may also from time to time repurchase or redeem some or all of our outstanding notes. At a special meeting of our stockholders held on June 28, 2019, our stockholders approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the Investment Company Act to us effective as of June 29, 2019. As a result of the reduced asset coverage requirement, we can incur $2 of debt for each $1 of equity as compared to $1 of debt for each $1 of equity. As of December 31, 2022, we had $1,514.4 million in senior securities and our asset coverage ratio was 176.3%. During the year ended September 30, 2022, we increased our target debt to equity ratio from 0.85x to 1.0x to 0.90x to 1.25x (i.e., one dollar of equity for each $0.90 to $1.25 of debt outstanding) to provide us with increased capacity to opportunistically deploy capital into the markets. As of December 31, 2022, our net debt to equity ratio was 1.24x.

For the three months ended December 31, 2022, we experienced a net decrease in cash and cash equivalents (including restricted cash) of $7.1 million. During that period, net cash used in operating activities was $109.9 million, primarily from funding $261.4 million of investments and $10.0 million of net decrease in payables from unsettled transactions, partially offset by $108.8 million of principal payments and sale proceeds received, the cash activities related to $38.8 million of net investment income and a $16.3 million increase in due from portfolio companies. During the same period, net cash provided by financing activities was $103.3 million, primarily consisting of $160.0 million of net borrowings under the credit facilities, partially offset by $56.7 million of cash distributions paid to our stockholders.

For the three months ended December 31, 2021, we experienced a net increase in cash and cash equivalents (including restricted cash) of $14.4 million. During that period, we received $23.2 million of net cash from operating activities, primarily from $235.0 million of principal payments and sale proceeds received, $15.0 million of net increases in payables from unsettled transactions and the cash activities related to $32.3 million of net investment income, partially offset by funding $246.6 million of investments. During the same period, net cash used by financing activities was $7.5 million, primarily consisting of $27.2 million of cash distributions paid to our stockholders and $0.3 million of deferred financing costs paid, partially offset by $20.0 million of net borrowings under the credit facilities.

As of December 31, 2022, we had $19.2 million in cash and cash equivalents (including $1.9 million of restricted cash), portfolio investments (at fair value) of $2.6 billion, $37.8 million of interest, dividends and fees receivable, $6.2 million of due from portfolio companies, $340.0 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $12.3 million of net payables from unsettled transactions, $860.0 million of borrowings outstanding under our credit facilities and $603.6 million of unsecured notes payable (net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment).

As of September 30, 2022, we had $26.4 million in cash and cash equivalents (including $2.8 million of restricted cash), portfolio investments (at fair value) of $2.5 billion, $35.6 million of interest, dividends and fees receivable, $22.5 million of due from portfolio companies, $500.0 million of undrawn capacity on our credit facilities (subject to borrowing base and other limitations), $22.3 million of net payables from unsettled transactions, $700.0 million of borrowings outstanding under our credit facilities and $601.0 million of unsecured notes payable (net of unamortized financing costs, unaccreted discount and interest rate swap fair value adjustment).

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of December 31, 2022, our only off-balance sheet arrangements consisted of $198.9 million of unfunded commitments, which was comprised of $171.8 million to provide debt and equity financing to certain of our portfolio companies and $27.1 million to provide financing to the JVs. As of September 30, 2022, our only off-balance sheet arrangements consisted of $224.2 million of unfunded commitments, which was comprised of $175.2 million to provide debt and equity financing to certain of our portfolio companies and $49.0 million to provide financing to the JVs.

As of December 31, 2022, we have analyzed cash and cash equivalents, availability under our credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believe our liquidity and capital resources are sufficient to take advantage of market opportunities in the current economic climate.

Contractual Obligations

The following table reflects information pertaining to our principal debt outstanding under the Syndicated Facility (as defined below), Citibank Facility (as defined below), our 3.500% notes due 2025, or the 2025 Notes, and our 2.700% notes due 2027, or the 2027 Notes:


	Debt Outstanding as of September 30, 2022		Debt Outstanding as of December 31, 2022		Weighted average debt outstanding for the three months ended December 31, 2022		Maximum debt outstanding for the three months ended December 31, 2022
Syndicated Facility	$	540,000	$	695,000	$	627,826	$	710,000
Citibank Facility	160,000		165,000		163,500		175,000
2025 Notes	300,000		300,000		300,000		300,000
2027 Notes	350,000		350,000		350,000		350,000
Total debt	$	1,350,000	$	1,510,000	$	1,441,326

The following table reflects our contractual obligations arising from the Syndicated Facility, Citibank Facility, 2025 Notes and 2027 Notes:


	Payments due by period as of December 31, 2022
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years
Syndicated Facility	$	695,000	$	—	$	—	$	695,000
Interest due on Syndicated Facility	145,376		43,494		86,988		14,894
Citibank Facility	165,000		—		165,000		—
Interest due on Citibank Facility	20,573		10,915		9,658		—
2025 Notes	300,000		—		300,000		—
Interest due on 2025 Notes	22,640		10,500		12,140		—
2027 Notes	350,000		—		—		350,000
Interest due on 2027 Notes (a)	81,200		20,080		40,160		20,960
Total	$	1,779,789	$	84,989	$	613,946	$	1,080,854

__________

(a) The interest due on the 2027 Notes was calculated net of the interest rate swap.

Equity Issuances

During the three months ended December 31, 2022 and 2021, we issued an aggregate of 94,879 and 35,990, respectively, shares of common stock as part of the DRIP.

On February 7, 2022, we entered into an equity distribution agreement by and among us, Oaktree, Oaktree Administrator and Keefe, Bruyette & Woods, Inc., JMP Securities LLC, Raymond James & Associates, Inc. and SMBC Nikko Securities America, Inc., as placement agents, in connection with the issuance and sale by us of shares of common stock, having an aggregate offering price of up to $125.0 million. Sales of the common stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or similar securities exchanges or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices.

In connection with the "at the market" offering, we did not issue or sell any shares of common stock during the three months ended December 31, 2022.

Distributions

The following table reflects the distributions per share that we have paid, including shares issued under our DRIP, on our common stock since October 1, 2020. The distributions per share and shares issued under our DRIP information disclosed in this table has been retrospectively adjusted to reflect our 1-for-3 reverse stock split completed on January 20, 2023 and effective as of the commencement of trading on January 23, 2023.

Distribution

Date Declared

Record Date

Payment Date

Amount
per Share

Cash
Distribution

DRIP Shares
Issued (1)

DRIP Shares
Value

Quarterly

November 13, 2020

December 15, 2020

December 31, 2020

0.33

$ 15.0 million

31,321

$ 0.5 million

Quarterly

January 29, 2021

March 15, 2021

March 31, 2021

0.36

16.4 million

27,234

0.5 million

Quarterly

April 30, 2021

June 15, 2021

June 30, 2021

0.39

22.9 million

25,660

0.5 million

Quarterly

July 30, 2021

September 15, 2021

September 30, 2021

0.435

25.5 million

28,358

0.6 million

Quarterly

October 13, 2021

December 15, 2021

December 31, 2021

0.465

27.2 million

35,990

0.8 million

Quarterly

January 28, 2022

March 15, 2022

March 31, 2022

0.48

28.5 million

34,804

0.8 million

Quarterly

April 29, 2022

June 15, 2022

June 30, 2022

0.495

29.4 million

43,676

0.9 million

Quarterly

July 29, 2022

September 15, 2022

September 30, 2022

0.51

30.2 million

51,181

1.0 million

Quarterly

November 10, 2022

December 15, 2022

December 30, 2022

0.54

32.0 million

53,369

1.1 million

Special

November 10, 2022

December 15, 2022

December 30, 2022

0.42

24.8 million

41,510

0.8 million

______________

(1) Shares were purchased on the open market and distributed other than with respect to the distributions paid on December 31, 2021, March 31, 2022 and December 30, 2022. New shares were issued and distributed during the quarters ended December 31, 2021, March 31, 2022 and December 31, 2022.

Indebtedness

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

Syndicated Facility

As of December 31, 2022, (i) the size of our senior secured revolving credit facility, or, as amended and/or restated from time to time, the Syndicated Facility, pursuant to a senior secured revolving credit agreement, with the lenders, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc. and MUFG Union Bank, N.A. as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as syndication agents, was $1.0 billion (with an “accordion” feature that permits us, under certain circumstances, to increase the size of the facility to up to the greater of $1.25 billion and our net worth (as defined in the Syndicated Facility) on the date of such increase), (ii) the period during which we may make drawings will expire on May 4, 2025 and the maturity date was May 4, 2026 and (iii) the interest rate margin for (a) LIBOR loans (which may be 1-, 2-, 3- or 6-month, at our option) was 2.00% and (b) alternate base rate loans was 1.00%.

Each loan or letter of credit originated or assumed under the Syndicated Facility is subject to the satisfaction of certain conditions. Borrowings under the Syndicated Facility are subject to the facility’s various covenants and the leverage restrictions contained in the Investment Company Act. We cannot assure you that we will be able to borrow funds under the Syndicated Facility at any particular time or at all.

The following table describes significant financial covenants, as of December 31, 2022, with which we must comply under the Syndicated Facility on a quarterly basis:

Financial Covenant

Description

Target Value

September 30, 2022 Reported Value (1)

Minimum shareholders' equity

Net assets shall not be less than the sum of (x) $600 million, plus (y) 50% of the aggregate net proceeds of all sales of equity interests after May 6, 2020

$610 million

$1,246 million

Asset coverage ratio

Asset coverage ratio shall not be less than the greater of 1.50:1 and the statutory test applicable to us

1.50:1

1.89:1

Interest coverage ratio

Interest coverage ratio shall not be less than 2.25:1

2.25:1

4.01:1

Minimum net worth

Net worth shall not be less than $550 million

$550 million

$1,034 million

___________

(1) As contractually required, we report financial covenants based on the last filed quarterly or annual report, in this case our Annual Report on Form 10-K for the year ended September 30, 2022. We were in compliance with all financial covenants under the Syndicated Facility based on the financial information contained in this Quarterly Report on Form 10-Q.

As of December 31, 2022 and September 30, 2022, we had $695.0 million and $540.0 million of borrowings outstanding under the Syndicated Facility, respectively, which had a fair value of $695.0 million and $540.0 million, respectively. Our borrowings under the Syndicated Facility bore interest at a weighted average interest rate of 5.849% and 2.174% for the three months ended December 31, 2022 and 2021, respectively. For the three months ended December 31, 2022 and 2021, we recorded interest expense (inclusive of fees) of $10.0 million and $3.8 million, respectively, related to the Syndicated Facility.

Citibank Facility

On March 19, 2021, we became party to a revolving credit facility, or, as amended and/or restated from time to time, the Citibank Facility, with OCSL Senior Funding II LLC, our wholly-owned, special purpose financing subsidiary, as the borrower, us, as collateral manager and seller, each of the lenders from time to time party thereto, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as collateral agent and custodian. As of December 31, 2022, we were able to borrow up to $200 million under the Citibank Facility (subject to borrowing base and other limitations). As of December 31, 2022, the reinvestment period under the Citibank Facility was scheduled to expire on November 18, 2023 and the maturity date for the Citibank Facility was November 18, 2024.

As of December 31, 2022, borrowings under the Citibank Facility are subject to certain customary advance rates and accrue interest at a rate equal to LIBOR plus between 1.25% and 2.20% per annum on broadly syndicated loans, subject to observable market depth and pricing, and LIBOR plus 2.25% per annum on all other eligible loans during the reinvestment period. In addition, as of December 31, 2022, for the duration of the reinvestment period there is a non-usage fee payable of 0.50% per annum on the undrawn amount under the Citibank Facility. The minimum asset coverage ratio applicable to us under the Citibank Facility is 150% as determined in accordance with the requirements of the Investment Company Act. Borrowings under the Citibank Facility are secured by all of the assets of OCSL Senior Funding II LLC and all of our equity interests in OCSL Senior Funding II LLC. We may use the Citibank Facility to fund a portion of our loan origination activities and for general corporate purposes. Each loan origination under the Citibank Facility is subject to the satisfaction of certain conditions.

As of December 31, 2022 and September 30, 2022, we had $165.0 million and $160.0 million outstanding under the Citibank Facility, respectively, which had a fair value of $165.0 million and $160.0 million, respectively. Our borrowings under the Citibank Facility bore interest at a weighted average interest rate of 6.508% and 1.830% for the three months ended December 31, 2022 and December 31, 2021, respectively. For the three months ended December 31, 2022 and December 31, 2021, we recorded interest expense (inclusive of fees) of $2.7 million and $0.8 million, respectively, related to the Citibank Facility.

2025 Notes

On February 25, 2020, we issued $300.0 million in aggregate principal amount of the 2025 Notes for net proceeds of $293.8 million after deducting OID of $2.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.7 million. The OID on the 2025 Notes is amortized based on the effective interest method over the term of the notes.

2027 Notes

On May 18, 2021, we issued $350.0 million in aggregate principal amount of the 2027 Notes for net proceeds of $344.8 million after deducting OID of $1.0 million, underwriting commissions and discounts of $3.5 million and offering costs of $0.7 million. The OID on the 2027 Notes is amortized based on the effective interest method over the term of the notes.

In connection with the 2027 Notes, we entered into an interest rate swap to more closely align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap

agreement, we receive a fixed interest rate of 2.700% and pay a floating interest rate of the three-month LIBOR plus 1.658% on a notional amount of $350 million. We designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship.

The below table presents the components of the carrying value of the 2025 Notes and the 2027 Notes as of December 31, 2022 and September 30, 2022:


	As of December 31, 2022				As of September 30, 2022
($ in millions)	2025 Notes		2027 Notes		2025 Notes		2027 Notes
Principal	$	300.0	$	350.0	$	300.0	$	350.0
Unamortized financing costs	(1.6)		(3.1)		(1.8)		(3.2)
Unaccreted discount	(1.1)		(0.7)		(1.2)		(0.7)
Interest rate swap fair value adjustment	—		(39.9)		—		(42.0)
Net carrying value	$	297.3	$	306.3	$	297.0	$	304.1
Fair Value	$	286.7	$	296.8	$	283.1	$	294.0

The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three months ended December 31, 2022:


($ in millions)	2025 Notes			2027 Notes
Coupon interest	$	2.6		$	2.4
Amortization of financing costs and discount	0.3			0.2
Effect of interest rate swap	—			2.5
Total interest expense	$	2.9		$	5.1
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)	3.500		%	5.586		%

The below table presents the components of interest and other debt expenses related to the 2025 Notes and the 2027 Notes for the three months ended December 31, 2021:


($ in millions)	2025 Notes			2027 Notes
Coupon interest	$	2.6		$	2.4
Amortization of financing costs and discount	0.3			0.2
Effect of interest rate swap	—			(0.7)
Total interest expense	$	2.9		$	1.9
Coupon interest rate (net of effect of interest rate swap for 2027 Notes)	3.500		%	1.782		%

Regulated Investment Company Status and Distributions

We have qualified and elected to be treated as a RIC under Subchapter M of the Code for U.S. federal income tax purposes. As long as we continue to qualify as a RIC, we will not be subject to tax on our investment company taxable income (determined without regard to any deduction for dividends paid) or realized net capital gains, to the extent that such taxable income or gains is distributed, or deemed to be distributed as dividends, to stockholders on a timely basis.

Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation. Distributions declared and paid by us in a taxable year may differ from taxable income for that taxable year as such distributions may include the distribution of taxable income derived from the current taxable year or the distribution of taxable income derived from the prior taxable year carried forward into and distributed in the current taxable year. Distributions also may include returns of capital.

To maintain RIC tax treatment, we must, among other things, distribute dividends, with respect to each taxable year, of an amount at least equal to 90% of our investment company taxable income (i.e., our net ordinary income and our realized net short-term capital gains in excess of realized net long-term capital losses, if any), determined without regard to any deduction for dividends paid. As a RIC, we are also subject to a federal excise tax, based on distribution requirements of our taxable income on a calendar year basis. We anticipate timely distribution of our taxable income in accordance with tax rules. We did

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not incur a U.S. federal excise tax for calendar year 2021. For the calendar year 2022, we incurred $0.1 million of excise tax. We do not expect to incur a U.S. federal excise tax for calendar year 2023.

We intend to distribute at least 90% of our annual taxable income (which includes our taxable interest and fee income) to our stockholders. The covenants contained in our credit facilities may prohibit us from making distributions to our stockholders, and, as a result, could hinder our ability to satisfy the distribution requirement associated with our ability to be subject to tax as a RIC. In addition, we may retain for investment some or all of our net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) and treat such amounts as deemed distributions to our stockholders. If we do this, our stockholders will be treated as if they received actual distributions of the capital gains we retained and then reinvested the net after-tax proceeds in our common stock. Our stockholders also may be eligible to claim tax credits (or, in certain circumstances, tax refunds) equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. To the extent our taxable earnings for a fiscal and taxable year fall below the total amount of our dividend distributions for that fiscal and taxable year, a portion of those distributions may be deemed a return of capital to our stockholders.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a Business Development Company under the Investment Company Act and due to provisions in our credit facilities and debt instruments. If we do not distribute a certain percentage of our taxable income annually, we will suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

A RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder elects to receive his or her entire distribution in either cash or stock of the RIC, subject to certain limitations regarding the aggregate amount of cash to be distributed to all stockholders. If these and certain other requirements are met, for U.S federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock.

We may generate qualified net interest income or qualified net short-term capital gains that may be exempt from U.S. withholding tax when distributed to foreign stockholders. A RIC is permitted to designate distributions of qualified net interest income and qualified short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation. The following table, which may be subject to change as we finalize our annual tax filings, lists the percentage of qualified net interest income and qualified short-term capital gains for the year ended September 30, 2022.


Year Ended	Qualified Net Interest Income		Qualified Short-Term Capital Gains
September 30, 2022	80.8	%	—

We have adopted a DRIP that provides for the reinvestment of any distributions that we declare in cash on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board of Directors declares a cash distribution, then our stockholders who have not “opted out” of the DRIP will have their cash distributions automatically reinvested in additional shares of our common stock, rather than receiving a cash distribution. If our shares are trading at a premium to net asset value, we typically issue new shares to implement the DRIP, with such shares issued at the greater of the most recently computed net asset value per share of our common stock or 95% of the current market value per share of our common stock on the payment date for such distribution. If our shares are trading at a discount to net asset value, we typically purchase shares in the open market in connection with our obligations under the DRIP.

Related Party Transactions

We have entered into the Investment Advisory Agreement with Oaktree and the Administration Agreement with Oaktree Administrator, an affiliate of Oaktree. Mr. John B. Frank, an interested member of our Board of Directors, has an indirect pecuniary interest in Oaktree. Oaktree is a registered investment adviser under the Investment Advisers Act of 1940, as amended, that is partially and indirectly owned by Oaktree Capital Group, LLC. See “ Note 10. Related Party Transactions – Investment Advisory Agreement ” and “ – Administrative Services ” in the notes to the accompanying Consolidated Financial Statements.

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Recent Developments

Distribution Declaration

On January 27, 2023, our Board of Directors declared a quarterly distribution of $0.55 per share, payable in cash on March 31, 2023 to stockholders of record on March 15, 2023.

Investment Advisory Agreement

On January 23, 2023, in connection with the consummation of the OSI2 Merger, we entered into an amended and restated investment advisory agreement with Oaktree to amend and restate the prior investment advisory agreement, dated as of March 19, 2021, by and between us and Oaktree to (1) waive an aggregate of $9.0 million of base management fees otherwise payable to the Oaktree in the two years following the closing of the OSI2 Merger and (2) revise the calculation of the incentive fees to eliminate certain unintended consequences of the accounting treatment of the OSI2 Merger on the incentive fees payable to Oaktree. None of the other terms were changed, and the services to be provided by Oaktree and the term of the Investment Advisory Agreement remain the same.

OSI2 Merger

On January 23, 2023, we completed the OSI2 Merger. In accordance with the terms of the OSI2 Merger Agreement, at the effective time of the OSI2 Merger, each outstanding share of OSI2 common stock was converted into the right to receive 0.9115 shares of our common stock (with OSI2’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of the OSI2 Merger, we issued an aggregate of 15,860,200 shares of its common stock to former OSI2 stockholders. Following completion of the OSI2 Merger, we had 77,079,805 shares of common stock outstanding.

OSI2 Citibank Facility

On January 23, 2023, as a result of the consummation of the OSI2 Merger, we became party to the OSI2 Citibank Facility (as described below).

OSI 2 Senior Lending SPV, LLC, or OSI 2 SPV, our wholly-owned and consolidated subsidiary, is party to a loan and security agreement dated as of July 26, 2019, which was subsequently amended on September 20, 2019, July 2, 2020, December 31, 2020, March 31, 2021 and December 2, 2022, or, as amended, the OSI2 Citibank Loan Agreement, with the lenders from time to time party thereto and the other parties referenced below. Under the terms of the OSI2 Citibank Loan Agreement, we serve as the collateral manager and seller and OSI 2 SPV serves as borrower with Citibank, N.A., as administrative agent, and Deutsche Bank Trust Company Americas, as collateral agent.

The OSI2 Citibank Loan Agreement provides for a senior secured revolving credit facility, or the OSI2 Citibank Facility of up to $250 million, or the Citibank Maximum Commitment, in aggregate principal amount, subject to the lesser of (i) the borrowing base, which is an amount based on advance rates that vary depending on the class of assets and the value assigned to such assets under the OSI2 Citibank Loan Agreement and (ii) the Citibank Maximum Commitment. The OSI2 Citibank Facility has a reinvestment period through May 26, 2023, during which advances may be made, and matures on January 26, 2025. Following the reinvestment period, OSI 2 SPV will be required to make certain mandatory amortization payments. Borrowings under the OSI2 Citibank Facility bear interest payable quarterly at a rate per year equal to (a) in the case of a lender that is identified as a conduit lender under the OSI2 Citibank Loan Agreement, the lesser of (i) the applicable commercial paper rate for such conduit lender and (ii) LIBOR for a three month maturity and (b) for all other lenders under the OSI2 Citibank Facility, LIBOR, plus, in each case, an applicable spread. During the reinvestment period, the applicable spread is the greater of (i) a weighted average rate of (x) 1.65% per year for broadly syndicated loans and (y) 2.25% per year for all other eligible loans and (ii) 1.85%. After the reinvestment period, the applicable spread is 3.00% per year. There is also a non-usage fee of 0.50% per year thereafter on the unused portion of the OSI2 Citibank Facility, payable quarterly; provided that if the unused portion of the OSI2 Citibank Facility is greater than 30% of the commitments under the OSI2 Citibank Facility, the non-usage fee will be based on an unused portion of 30% of the commitments under the OSI2 Citibank Facility.

The OSI2 Citibank Facility is secured by a first priority security interest in substantially all of OSI 2 SPV’s assets.

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Under the OSI2 Citibank Facility, we and OSI 2 SPV, as applicable, have made customary representations and warranties, and are required to comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar credit facilities.

OSI 2 SPV’s borrowings are non-recourse to us but are considered our borrowings for purposes of complying with the asset coverage requirements under the Investment Company Act.

As of January 23, 2023, we had $225.0 million outstanding under the OSI2 Citibank Facility .

Reverse Stock Split

On January 20, 2023, we amended our restated certificate of incorporation, as amended and corrected, to effect a 1-for-3 reverse stock split. Following completion of the reverse stock split, we had 61,219,605 shares of common stock outstanding.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in the valuations of our investment portfolio and interest rates.

Valuation Risk

Our investments may not have a readily available market price, and we value these investments at fair value as determined by Oaktree, as our valuation designee. There is no single standard for determining fair value in good faith and valuation methodologies involve a significant degree of management judgment. In addition, our valuation methodology utilizes discount rates in part in valuing our investments, and changes in those discount rates may have an impact on the valuation of our investments. Accordingly, valuations by Oaktree do not necessarily represent the amounts which may eventually be realized from sales or other dispositions of investments. Estimated fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the financial statements.

Interest Rate Risk

We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding and our interest income from portfolio investments, cash and cash equivalents and idle fund investments. Our risk management procedures are designed to identify and analyze our risk, to set appropriate policies and to continually monitor these risks. Our investment income will be affected by changes in various interest rates, including LIBOR, SOFR, SONIA and prime rates, to the extent our debt investments include floating interest rates.

As of December 31, 2022, 87.3% of our debt investment portfolio (at fair value) and 87.2% of our debt investment portfolio (at cost) bore interest at floating rates. As of September 30, 2022, 86.5% of our debt investment portfolio (at fair value) and 86.3% of our debt investment portfolio (at cost) bore interest at floating rates. The composition of our floating rate debt investments by interest rate floor as of December 31, 2022 and September 30, 2022, was as follows:


	December 31, 2022				September 30, 2022
($ in thousands)	Fair Value		% of Floating Rate Portfolio		Fair Value		% of Floating Rate Portfolio
0%	$	242,898	11.1	%	$	228,186	11.1	%
>0% and <1%	431,661		19.7	%	388,458		19.0	%
1%	1,397,099		63.9	%	1,364,668		66.6	%
>1%	116,535		5.3	%	68,332		3.3	%
Total Floating Rate Investments	$	2,188,193	100.0	%	$	2,049,644	100.0	%

Based on our Consolidated Statement of Assets and Liabilities as of December 31, 2022, the following table shows the approximate annualized net increase (decrease) in net assets resulting from operations (excluding the impact of any potential incentive fees) of hypothetical base rate changes in interest rates, assuming no changes in our investment and capital structure. However, there can be no assurances our portfolio companies will be able to meet their contractual obligations at any or all levels on increases in interest rates.


($ in thousands) Basis point increase	Increase in Interest Income		(Increase) in Interest Expense		Net increase in net assets resulting from operations
250	$	57,529	$	(30,250)	$	27,279
200	46,020		(24,200)		21,820
150	34,512		(18,150)		16,362
100	23,004		(12,100)		10,904
50	11,498		(6,050)		5,448

104


($ in thousands) Basis point decrease	(Decrease) in Interest Income		Decrease in Interest Expense		Net (decrease) in net assets resulting from operations
50	$	(11,471)	$	6,050	$	(5,421)
100	(22,729)		12,100		(10,629)
150	(33,959)		18,150		(15,809)
200	(45,156)		24,200		(20,956)
250	(56,204)		30,250		(25,954)

We regularly measure exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on this review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates. The following table shows a comparison of the interest rate base for our interest-bearing cash and outstanding investments, at principal, and our outstanding borrowings as of December 31, 2022 and September 30, 2022:


	December 31, 2022				September 30, 2022
($ in thousands)	Interest Bearing Cash and Investments		Borrowings		Interest Bearing Cash and Investments		Borrowings
Money market rate	$	3,421	$	—	$	5,262	$	—
Prime rate	305		—		2,618		—
LIBOR
30 day	593,798		695,000		669,273		540,000
90 day (a)	1,030,274		515,000		928,978		510,000
180 day	91,244		—		199,301		—
EURIBOR
30 day	€	24,838	—		€	24,838	—
90 day	30,810		—		16,911		—
180 day	14,304		—		1,964		—
SOFR
30 day	$	142,913	—		$	50,099	—
90 day	285,690		—		190,799		—
180 day	47,323		—		18,390		—
SONIA	£	40,137	—		£	40,137	—
Fixed rate	$	338,548	300,000		$	341,749	300,000

__________

(a) Borrowings include the 2027 Notes, which pay interest at a floating rate under the terms of the interest rate swap.

105

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

Management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2022. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives. Based on the evaluation of our disclosure controls and procedures as of December 31, 2022, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, in timely identifying, recording, processing, summarizing and reporting any material information relating to us that is required to be disclosed in the reports we file or submit under the Exchange Act.

There were no changes in our internal control over financial reporting that occurred during the three months ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1. Legal Proceedings

We are currently not a party to any pending material legal proceedings.

Item 1A. Risk Factors

There have been no material changes during the three months ended December 31, 2022 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

106

Item 6. Exhibits


3.1						Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 filed with Registrant’s Form 8-A (File No. 001-33901) filed on January 2, 2008).

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

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

3.4						Certificate of Amendment to Registrant’s Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 filed with Registrant’s Quarterly Report on Form 10-Q (File No. 001-33901) filed on May 5, 2010).

3.5						Certificate of Amendment to Registrant’s Certificate of Incorporation (incorporated by reference to Exhibit (a)(5) filed with the Registrant’s Registration Statement on Form N-2 (File No. 333-180267) filed on April 2, 2013).

3.6						Certificate of Amendment to the Restated Certificate of Incorporation of the Registrant, dated as of October 17, 2017 (incorporated by reference to Exhibit 3.1 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on October 17, 2017).

3.7						Certificate of Amendment to the Restated Certificate of Incorporation of the Registrant, dated as of January 20, 2023 (incorporated by reference to Exhibit 3.7 filed with the Registrant’s Form 8-K (File No. 814-00755) filed on January 20, 2023).

31.1*						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*						Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1*						Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32.2*						Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

101.INS*						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*						Inline XBRL Taxonomy Extension Schema Document.

101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104*						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


*			Filed herewith.

107

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



OAKTREE SPECIALTY LENDING CORPORATION

By:						/s/ Armen Panossian
						Armen Panossian
						Chief Executive Officer

By:						/s/ Christopher McKown
						Christopher McKown
						Chief Financial Officer and Treasurer

Date: February 6, 2023

108

TABLE OF CONTENTS

Part I Incentive Fee Part II Incentive Fee 1,751 Part II Incentive Fee Note 1. Organization Note 2. Significant Accounting Policies Note 3. Portfolio Investments Note 4. Fee Income Note 5. Share Data and Net Assets Note 6. Borrowings Note 7. Taxable/distributable Income and Dividend Distributions Note 8. Realized Gains Or Losses and Net Unrealized Appreciation Or Depreciation Note 9. Concentration Of Credit Risks Note 10. Related Party Transactions Note 11. Financial Highlights Note 12. Derivative Instruments Note 13. Commitments and Contingencies Note 14. Subsequent Events Item 2. Management's Discussion and Analysis Of Financial Condition and Results Of Operations Item 1A. Risk Factors Note 3. Portfolio Investments"Note 10. Related Party Transactions Investment Advisory Agreement Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II Item 1. Legal Proceedings Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

3.1 Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 filed with Registrants Form 8-A (File No. 001-33901) filed on January 2, 2008). 3.2 Certificate of Amendment to the Registrants Restated Certificate of Incorporation (incorporated by reference to Exhibit (a)(2) filed with Registrants Registration Statement on Form N-2 (File No. 333-146743) filed on June 6, 2008). 3.3 Certificate of Correction to the Certificate of Amendment to the Registrants Restated Certificate of Incorporation (Incorporated by reference to Exhibit (a)(3) filed with Registrants Registration Statement on Form N-2 (File No. 333-146743) filed on June 6, 2008). 3.4 Certificate of Amendment to Registrants Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 filed with Registrants Quarterly Report on Form 10-Q (File No. 001-33901) filed on May 5, 2010). 3.5 Certificate of Amendment to Registrants Certificate of Incorporation (incorporated by reference to Exhibit (a)(5) filed with the Registrants Registration Statement on Form N-2 (File No. 333-180267) filed on April 2, 2013). 3.6 Certificate of Amendment to the Restated Certificate of Incorporation of the Registrant, dated as of October 17, 2017 (incorporated by reference to Exhibit 3.1 filed with the Registrants Form 8-K (File No. 814-00755) filed on October 17, 2017). 3.7 Certificate of Amendment to the Restated Certificate of Incorporation of the Registrant, dated as of January 20, 2023 (incorporated by reference to Exhibit 3.7 filed with the Registrants Form 8-K (File No. 814-00755) filed on January 20, 2023). 31.1* Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. 31.2* Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. 32.1* Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). 32.2* Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

OCSL 10-Q Quarter ended Dec. 31, 2022

Exhibits