In This Article:
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Adjusted Net Investment Income (NII): $45 million or $0.55 per share for Q4 2024; $179 million or $2.23 per share for fiscal year 2024.
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Net Asset Value (NAV) per Share: Decreased to $18.09 from $18.19 last quarter.
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First Lien Investments: Increased to 82% from 76% at fiscal year-end 2023.
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Non-Accrual Investments: 4% at fair value and 4.9% at cost, compared to 3.7% and 5.7% last quarter.
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New Investment Commitments: $259 million during Q4 2024 at a weighted average yield of 9.9%.
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Paydowns and Exits: Generated $338 million in proceeds during the quarter.
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Liquidity: $908 million of undrawn capacity under credit facilities and $64 million in unrestricted cash and cash equivalents.
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Total Debt to Equity: 1.12 times; Net Debt to Equity: 1.07 times.
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Quarterly Dividend: $0.55 per share, payable on December 31, 2024.
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Weighted Average Interest Rate on Debt: 6.7% at quarter end.
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Joint Ventures Investments: $454 million across 49 portfolio companies with an annualized ROE of approximately 11.2%.
Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Oaktree Specialty Lending Corp (NASDAQ:OCSL) reported adjusted net investment income (NII) of $45 million or $0.55 per share for the fourth fiscal quarter, consistent with the previous quarter.
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The company successfully restructured two investments, removing them from non-accrual status, demonstrating effective portfolio management.
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OCSL's first lien investments increased to 82% from 76% at the end of fiscal year 2023, indicating a strategic shift towards more secure investments.
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The company originated $259 million in new investment commitments during the fourth quarter, reflecting strong investment activity.
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OCSL maintained substantial liquidity with $908 million of undrawn capacity under credit facilities and $64 million in cash and cash equivalents, ensuring financial flexibility.
Negative Points
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OCSL experienced an increase in investments placed on non-accrual status, impacting earnings and net asset value.
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Net asset value per share decreased slightly to $18.09 from $18.19 last quarter, indicating a decline in shareholder value.
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The company waived $1.2 million of Part 1 incentive fees for the quarter due to the impact of non-accruals and write-downs.
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The weighted average yield on new investment commitments decreased to 9.9% from 11.1% in the prior quarter, reflecting a challenging market environment.
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OCSL's net leverage ratio remained at 1.07 times, indicating limited reduction in leverage despite repayments and sales outpacing new investments.