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Mar 31, 2023
Oaktree Q2 2023 Earnings Report
Announced financial results for the second fiscal quarter and declared a distribution of $0.55 per share.
Key Takeaways
Oaktree Specialty Lending Corporation reported strong results in the second fiscal quarter, driven by solid adjusted net investment income generated from wider spreads on new originations and the impact of higher base rates on its predominantly floating rate loan portfolio. The company also completed its merger with OSI2 on January 23, 2023, adding $572.1 million of investments at fair value.
Total investment income was $96.3 million ($1.32 per share) for the second fiscal quarter of 2023, as compared with $79.2 million ($1.30 per share) for the first fiscal quarter of 2023.
GAAP net investment income was $46.0 million ($0.63 per share) for the second fiscal quarter of 2023, as compared with $38.8 million ($0.63 per share) for the first fiscal quarter of 2023.
Net asset value (“NAV”) per share was $19.66 as of March 31, 2023, up slightly as compared with $19.63 as of December 31, 2022.
Completed the OSI2 Merger on January 23, 2023, which added $572.1 million of investments at fair value.
Forward Guidance
OCSL is positioned to sustain its momentum in the future.
Positive Outlook
- OCSL achieved strong results in the second fiscal quarter, driven by solid adjusted net investment income generated from wider spreads on new originations and the impact of higher base rates on our predominantly floating rate loan portfolio.
- We also continued our strategy of rotating out of public debt investments and redeploying capital into our robust pipeline of compelling and higher-yielding private credit opportunities.
- Moreover, we were delighted to successfully close our merger with OSI2 on January 23, 2023, which marked another significant highlight of the quarter.
- We are excited to leverage the benefits of the combined company, which we believe will generate substantial long-term value for our shareholders.
- These positive results underscore our commitment to delivering strong risk-adjusted returns
Challenges Ahead
- Changes in the economy, financial markets and political environment, including the impacts of inflation and rising interest rates
- Risks associated with possible disruption in the operations of the Company or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters or pandemics
Historical Earnings Impact
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Avg. Return Before/After Earnings
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