Oaktree Specialty Lending's Financial Results

By Bobby Samwell • Tuesday, November 19 15:19 • Permanent Link

Oaktree Specialty Lending Corporation (NASDAQ: OCSL) has released its financial results for the fourth fiscal quarter and full year ended September 30, 2024. Here are some key financial highlights:

Total investment income for the fourth fiscal quarter of 2024 was $94.7 million, down from $95.0 million in the third fiscal quarter of 2024. However, for the full year, total investment income increased to $381.7 million from $379.3 million in the previous year.
GAAP net investment income for the fourth fiscal quarter was $44.9 million, compared to $44.6 million in the third fiscal quarter. For the full year, GAAP net investment income decreased to $175.1 million from $180.7 million in the prior year.
Adjusted net investment income for the fourth fiscal quarter was $45.2 million, consistent with the previous quarter. For the full year, adjusted net investment income increased to $179.3 million from $177.8 million in the prior year.
Net asset value (NAV) per share was $18.09 as of September 30, 2024, down from $18.19 as of June 30, 2024, and $19.63 as of September 30, 2023.
The company declared a quarterly distribution of $0.55 per share, payable in cash on December 31, 2024, to stockholders of record on December 16, 2024.
Oaktree Specialty Lending originated $259.0 million of new investment commitments and received $338.3 million of proceeds from prepayments, exits, other paydowns, and sales during the quarter ended September 30, 2024.
Total debt outstanding was reported at $1,660.0 million as of September 30, 2024, with a total debt to equity ratio of 1.12x and a net debt to equity ratio of 1.07x.
Liquidity as of September 30, 2024, consisted of $64.0 million of unrestricted cash and cash equivalents and $907.5 million of undrawn capacity under the company’s credit facilities.
The company saw a slight decline in NAV due to losses on certain debt and equity investments.

Additionally, the company's CEO, Armen Panossian, highlighted the robust origination activity and ongoing loan sales and repayments that supported the results for the fourth fiscal quarter. Panossian also mentioned the successful restructuring of several names that were previously on non-accrual status, while acknowledging the unique challenges that impacted a handful of additional portfolio companies.

In terms of portfolio and investment activity, Oaktree Specialty Lending reported investments at fair value of $3,021,279,000 as of September 30, 2024, down from $3,121,703,000 as of June 30, 2024.

These financial results and operational highlights provide an insight into the company's performance and strategic initiatives for the reported period. As a result of these announcements, the company's shares have moved -2.1% on the market, and are now trading at a price of $15.81. For the full picture, make sure to review Oaktree Specialty Lending's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.