8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 20, 2019

Oaktree Specialty Lending Corporation

(Exact name of registrant as specified in its charter)

Delaware	814-00755	26-1219283
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

333 South Grand Avenue, 28th Floor Los Angeles, CA	90071
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (213) 830-6300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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
5.875% Unsecured Notes due 2024	OSLE	The New York Stock Exchange
6.125% Unsecured Notes due 2028	OCSLL	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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.  ☐

Item 2.02. Results of Operations and Financial Condition.

On November 20, 2019, Oaktree Specialty Lending Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter and year ended September 30, 2019. A copy of the press release is attached hereto as Exhibit 99.1.

On November 20, 2019, the Company will host a conference call to discuss its financial results for the fiscal quarter and year ended September 30, 2019. In connection therewith, the Company provided an investor presentation on its website at http://www.oaktreespecialtylending.com. A copy of the investor presentation is attached hereto as Exhibit 99.2.

The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, is being “furnished” and is not deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor is it deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1	Press release of Oaktree Specialty Lending Corporation dated November 20, 2019
99.2	Oaktree Specialty Lending Corporation Fourth Quarter and Fiscal Year 2019 Earnings Presentation

SIGNATURE

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	OAKTREE SPECIALTY LENDING CORPORATION
Date: November 20, 2019	By:	/s/ Mel Carlisle
		Name: Mel Carlisle Title: Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

Oaktree Specialty Lending Corporation Announces Fourth Fiscal Quarter and Full Year 2019 Financial Results and Declares Distribution of $0.095 Per Share

LOS ANGELES, CA, November 20, 2019—Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending” or the “Company”), a specialty finance company, today announced its financial results for the fiscal quarter and year ended September 30, 2019.

Financial Highlights for the Quarter and Year Ended September 30, 2019

• Total investment income was $34.5 million ($0.24 per share) and $147.7 million ($1.05 per share) for the fourth fiscal quarter and full fiscal year of 2019, respectively, as compared with $36.7 million ($0.26 per share) and $138.7 million ($0.98 per share) for the third fiscal quarter of 2019 and the full fiscal year of 2018, respectively. The increase in investment income for the full year was primarily due to higher levels of original issue discount (“OID”) accretion and call protection fees earned on exits of certain investments.

• Net investment income was $16.3 million ($0.12 per share) and $67.9 million ($0.48 per share) for the fourth fiscal quarter and full fiscal year of 2019, respectively, as compared with $16.6 million ($0.12 per share) and $60.0 million ($0.43 per share) for the third fiscal quarter of 2019 and the full fiscal year of 2018, respectively. The increase in net investment income for the full year was primarily due to higher levels of investment income and lower professional fees and general and administration expenses.

• Net asset value (“NAV”) per share was $6.60 as of September 30, 2019, flat as compared to $6.60 as of June 30, 2019 and up 8% from $6.09 as of September 30, 2018. The increase in NAV was primarily due to capital gains realized through the monetization of investments and appreciation of certain debt and equity investments.

• Originated $138.4 million of new investment commitments and received $139.0 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended September 30, 2019.

• A quarterly distribution was declared of $0.095 per share, payable on December 31, 2019 to stockholders of record on December 13, 2019.

Mathew Pendo, President and Chief Operating Officer, said, “The fourth quarter of 2019 capped another strong fiscal year for OCSL. NAV grew by more than 8 percent over the last twelve months. We also made further progress reducing risk in the portfolio, successfully exiting $60 million of non-core investments during the quarter, including a par recovery from a large investment on non-accrual. Looking ahead, with $385 million of dry powder, we remain well-positioned to take advantage of future investment opportunities.”

Armen Panossian, who was appointed Chief Executive Officer and Chief Investment Officer in September 2019, said, “The team managing OCSL has done a superb job growing NAV and repositioning the portfolio for stronger risk-adjusted returns over the past two years. I look forward to building on these accomplishments by continuing to execute on our strategic plan while maintaining our disciplined and risk-controlled investment approach.”

Distribution Declaration

The Board of Directors declared a quarterly distribution of $0.095 per share, payable on December 31, 2019 to stockholders of record on December 13, 2019.

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Distributions are paid primarily from distributable (taxable) income. To the extent taxable earnings for a fiscal taxable year fall below the total amount of distributions for that fiscal year, a portion of those distributions may be deemed a return of capital to the Company’s stockholders.

Results of Operations

	For the three months ended							For the year ended
($ in thousands, except per share data)	September 30, 2019 (unaudited)			June 30, 2019 (unaudited)		September 30, 2018 (unaudited)		September 30, 2019		September 30, 2018
GAAP operating results:
Interest income	$	30,662		$	32,910	$	35,306	$	133,670	$	118,511
PIK interest income		1,187			1,198		499		5,497		5,769
Fee income		2,550			1,826		2,034		6,710		9,432
Dividend income		114			735		381		1,825		5,010
Total investment income		34,513			36,669		38,220		147,702		138,722
Net expenses		18,238			20,061		21,189		79,793		78,676
Net investment income		16,275			16,608		17,031		67,909		60,046
Net realized and unrealized gains (losses), net of taxes		(2,304	)		3,378		16,300		58,251		(13,284	)
Net increase (decrease) in net assets resulting from operations	$	13,971		$	19,986	$	33,331	$	126,160	$	46,762
Net investment income per common share	$	0.12		$	0.12	$	0.12	$	0.48	$	0.43
Net realized and unrealized gains (losses), net of taxes per common share	$	(0.02	)	$	0.02	$	0.12	$	0.41	$	(0.10	)
Earnings (loss) per common share — basic and diluted	$	0.10		$	0.14	$	0.24	$	0.89	$	0.33
Non-GAAP Financial Measures (1):
Adjusted net investment income	$	16,713		$	17,293	$	17,031	$	69,032	$	60,046
Adjusted net investment income per common share	$	0.12		$	0.12	$	0.12	$	0.49	$	0.43

(1) See Non-GAAP Financial Measures — Adjusted Net Investment Income below for a description of this non-GAAP measure and a reconciliation from net investment income to adjusted net investment income, including on a weighted-average per share basis. The Company’s management uses this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to capital gains incentive fees. The presentation of adjusted net investment income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.

	As of
($ in thousands, except per share data and ratios)	September 30, 2019		June 30, 2019 (unaudited)		September 30, 2018
Select balance sheet and other data:
Investment portfolio at fair value	$	1,438,042	$	1,455,031	$	1,491,201
Total debt outstanding		473,367		537,278		637,213
Net assets		930,630		930,050		858,035
Net asset value per share		6.60		6.60		6.09
Total leverage		0.51x		0.58x		0.75x

Total investment income for the quarter ended September 30, 2019 was $34.5 million and included $30.7 million of interest income from portfolio investments, $1.2 million of payment-in-kind (“PIK”) interest income, $2.6 million of fee income and $0.1 million of dividend income. Total investment income decreased by $2.2 million as compared to the quarter ended June 30, 2019, primarily due to significant call protection fees earned in connection with exits that occurred during the prior quarter, lower interest income earned due to decreases in LIBOR on our floating rate investments and lower dividend income resulting from the sale of an aircraft in our aircraft leasing portfolio company that occurred during the quarter ended June 30, 2019. PIK interest income represented 3.4% of total investment income for the quarter ended September 30, 2019.

Total investment income for the year ended September 30, 2019 was $147.7 million and included $133.7 million of interest income from portfolio investments, $5.5 million of PIK interest income, $6.7 million of fee income and $1.8 million of dividend income. Total investment income increased by $9.0 million as compared to the year ended September 30, 2018, primarily due to higher levels of OID accretion and call protection fees earned on exits of certain investments that occurred during the year, partially offset by lower dividend income.

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Net expenses for the quarter totaled $18.2 million, down $1.8 million from the quarter ended June 30, 2019. The decrease in net expenses was primarily driven by lower interest expense resulting from a lower amount of borrowings outstanding and decreases in LIBOR during the quarter and a decrease in incentive fees, net of fees waived, mostly due to lower levels of investment income.

Net expenses for the year totaled $79.8 million, up $1.1 million from the year ended September 30, 2018. The increase in net expenses was primarily due to higher incentive fees resulting from higher investment income and capital gains realized through the monetization of certain investments and appreciation of certain debt and equity investments, partially offset by lower interest expense resulting from a lower amount of borrowings outstanding during the year, lower professional fees and lower general and administrative expenses.

Net realized and unrealized losses, net of taxes, were $2.3 million for the quarter, primarily reflecting unrealized depreciation on certain debt and equity investments. Net realized and unrealized gains, net of taxes, were $58.3 million for the year, primarily resulting from capital gains realized through the monetization of certain investments and unrealized appreciation of certain debt and equity investments.

Portfolio and Investment Activity

	As of
($ in thousands)	September 30, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2018 (unaudited)
Investments at fair value	$	1,438,042		$	1,455,031		$	1,491,201
Number of portfolio companies		104			105			113
Average portfolio company debt size	$	15,300		$	15,400		$	14,800
Asset class:
Senior secured debt		78.6	%		79.7	%		75.4	%
Unsecured debt		5.7	%		7.0	%		11.0	%
Equity		6.7	%		4.3	%		4.4	%
SLF JV I		8.8	%		8.8	%		8.7	%
Limited partnership interests		0.2	%		0.2	%		0.5	%
Non-accrual debt investments:
Non-accrual investments at fair value	$	2,706		$	86,796		$	98,760
Non-accrual investments as a percentage of debt investments		0.2	%		6.4	%		7.0	%
Number of investments on non-accrual		3			5			8
Interest rate type:
Percentage floating-rate		89.8	%		88.5	%		83.2	%
Percentage fixed-rate		10.2	%		11.5	%		16.8	%
Yields:
Weighted average yield on debt investments (1)		8.9	%		8.7	%		8.4	%
Cash component of weighted average yield on debt investments		8.1	%		8.0	%		8.2	%
Weighted average yield on total portfolio investments (2)		8.2	%		8.2	%		8.1	%
Investment activity:
New investment commitments	$	138,400		$	66,800		$	228,400
New funded investment activity (3)	$	128,500		$	74,100		$	218,400
Proceeds from prepayments, exits, other paydowns and sales	$	139,000		$	138,300		$	267,500
Net new investments (4)	$	(10,500	)	$	(64,200	)	$	(49,100	)
Number of new investment commitments in new portfolio companies		5			3			13
Number of new investment commitments in existing portfolio companies		4			4			3
Number of portfolio company exits		7			8			18

(1) Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments, including the Company’s share of the return on debt investments in the SLF JV I.

(2) Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments and dividend income, including the Company’s share of the return on debt investments in the SLF JV I.

(3) New funded investment activity includes drawdowns on existing revolver commitments.

(4) Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales.

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As of September 30, 2019, the fair value of the investment portfolio was $1.4 billion and was comprised of investments in 104 companies. These included debt investments in 79 companies, equity investments in 33 companies, including our limited partnership interests in two private equity funds, and our investment in Senior Loan Fund JV I, LLC (“SLF JV I”). Nine of the equity investments were in companies in which the Company also had a debt investment.

As of September 30, 2019, 91.0% of the Company’s portfolio as of September 30, 2019 consisted of debt investments, including 53.5% of first liens, 25.1% of second liens and 12.4% of unsecured debt investments, including the debt investments in SLF JV I at fair value.

As of September 30, 2019, there were three investments on which the Company had stopped accruing cash and/or PIK interest or OID income that, in the aggregate, represented 4.3% of the Company’s debt portfolio at cost and 0.2% at fair value. During the three months ended September 30, 2019, the Company removed two investments from non-accrual status in connection with an exit and restructuring.

As of September 30, 2019, SLF JV I had $360.9 million in assets, including senior secured loans to 51 portfolio companies. The joint venture generated income of $2.3 million for the Company during the quarter ended September 30, 2019. As of September 30, 2019, SLF JV I had $79.8 million of undrawn capacity on its senior revolving credit facility.

Over time, the Company intends to rotate out of the remaining investments it has identified as non-core investments, which is approximately $200 million at fair value as of September 30, 2019. It will also seek to redeploy non-income generating investments comprised of equity investments, limited partnership interests and loans currently on non-accrual status into proprietary investments with higher yields. Certain additional information on such categorization and the portfolio composition is included in investor presentations that the Company files with the Securities and Exchange Commission (“SEC”).

Liquidity and Capital Resources

As of September 30, 2019, the Company had $15.4 million of cash and cash equivalents, total principal value of debt outstanding of $476.1 million and $385.2 million of undrawn capacity on its credit facility, subject to borrowing base and other limitations. The weighted average interest rate on debt outstanding was 4.8% and 5.1% as of September 30, 2019 and June 30, 2019, respectively.

The Company’s total leverage ratio was 0.51x and 0.58x debt-to-equity as of September 30, 2019 and June 30, 2019, respectively.

Non-GAAP Financial Measures

Adjusted Net Investment Income

On a supplemental basis, the Company is disclosing adjusted net investment income and per share adjusted net investment income, each of which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP (“non-GAAP”). Adjusted net investment income represents net investment income, excluding capital gains incentive fees (“Part II incentive fee”). The Company’s management uses this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believes that this non-GAAP financial measure is

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useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to capital gains incentive fees. The Company’s investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized capital depreciation on a cumulative basis. Refer to Note 11 – Related Party Transactions in our Annual Report on Form 10-K for further discussion. The Company believes that adjusted net investment income is a useful performance measure because it reflects the net investment income produced on the Company’s investments during a period without giving effect to any changes in the value of such investments and any related capital gains incentive fees between periods. The presentation of adjusted net investment income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.

The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):

	For the three months ended												For the year ended
	September 30, 2019				June 30, 2019				September 30, 2018				September 30, 2019				September 30, 2018
($ in thousands, except per share data)	Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share		Amount		Per Share
Net investment income	$	16,275	$	0.12	$	16,608	$	0.12	$	17,031	$	0.12	$	67,909	$	0.48	$	60,046	$	0.43
Part II incentive fee (net of waivers)		438		—		685		—		—		—		1,123		0.01		—		—
Adjusted net investment income	$	16,713	$	0.12	$	17,293	$	0.12	$	17,031	$	0.12	$	69,032	$	0.49	$	60,046	$	0.43

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Conference Call Information

Oaktree Specialty Lending will host a conference call to discuss its fourth fiscal quarter and full year 2019 results at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on November 20, 2019. The conference call may be accessed by dialing (877) 507-3275 (U.S. callers) or +1 (412) 317-5238 (non-U.S. callers), participant password “Oaktree Specialty Lending.” During the earnings conference call, Oaktree Specialty Lending intends to refer to an investor presentation that will be available on the Investors section of the Oaktree Specialty Lending website, www.oaktreespecialtylending.com. Alternatively, a live webcast of the conference call can be accessed on Oaktree Specialty Lending’s website.

For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on Oaktree Specialty Lending’s website, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 10135791, beginning approximately one hour after the broadcast.

About Oaktree Specialty Lending Corporation

Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. The firm seeks 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, and preferred equity. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended. Oaktree Specialty Lending is managed by Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending’s website at www.oaktreespecialtylending.com.

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements may include statements as to: our future operating results and distribution projections; our business prospects and the prospects of our portfolio companies; and the impact of the investments that we expect to make. 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 press release 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 “Risk Factors” and elsewhere in our annual report on Form 10-K and our quarterly reports on Form 10-Q. Other factors that could cause actual results to differ materially include: changes in the economy, financial markets and political environment; risks associated with possible disruption in our operations or the economy generally due to terrorism or natural disasters; 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; 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 presentation on information available to us on the date of this presentation, 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 SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Contacts

Investor Relations:

Oaktree Specialty Lending Corporation

Michael Mosticchio

(212) 284-1900

ocsl-ir@oaktreecapital.com

Media Relations:

Financial Profiles, Inc.

Moira Conlon

(310) 478-2700

mediainquiries@oaktreecapital.com

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Oaktree Specialty Lending Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except per share amounts)

	September 30, 2019			June 30, 2019 (unaudited)			September 30, 2018
ASSETS
Investments at fair value:
Control investments (cost September 30, 2019: $224,255; cost June 30, 2019: $190,181; cost September 30, 2018: $213,470)	$	209,178		$	175,052		$	196,874
Affiliate investments (cost September 30, 2019: $8,449; cost June 30, 2019: $5,064; cost September 30, 2018: $1,080)		9,170			5,964			2,161
Non-control/Non-affiliate investments (cost September 30, 2019: $1,280,310; cost June 30, 2019: $1,337,252; cost September 30, 2018: $1,392,383)		1,219,694			1,274,015			1,292,166
Total investments at fair value (cost September 30, 2019: $1,513,014; cost June 30, 2019: $1,532,497; cost September 30, 2018: $1,606,933)		1,438,042			1,455,031			1,491,201
Cash and cash equivalents		15,406			5,637			13,380
Restricted cash		—			—			109
Interest, dividends and fees receivable		11,167			13,156			10,272
Due from portfolio companies		2,616			1,850			1,357
Receivables from unsettled transactions		4,586			4			26,760
Deferred financing costs		6,396			6,759			5,209
Derivative assets at fair value		490			—			162
Other assets		2,335			2,579			3,008
Total assets	$	1,481,038		$	1,485,016		$	1,551,458
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	1,589		$	1,078		$	3,581
Base management fee and incentive fee payable		10,167			9,987			8,223
Due to affiliate		2,689			3,431			3,274
Interest payable		2,296			2,267			3,365
Payable to syndication partners		—			—			109
Payables from unsettled transactions		59,596			—			37,236
Derivative liability at fair value		—			206			—
Deferred tax liability		704			719			422
Credit facility payable		314,825			369,825			241,000
Unsecured notes payable (net of $2,708, $2,808 and $3,483 of unamortized financing costs as of September 30, 2019, June 30, 2019 and September 30, 2018, respectively)		158,542			158,442			386,485
Secured borrowings at fair value (proceeds September 30, 2019: $0; proceeds June 30, 2019: $11,502; proceeds September 30, 2018: $12,314)		—			9,011			9,728
Total liabilities		550,408			554,966			693,423
Commitments and contingencies
Net assets:
Common stock, $0.01 par value per share, 250,000 shares authorized; 140,961 shares issued and outstanding as of September 30, 2019, June 30, 2019 and September 30, 2018		1,409			1,409			1,409
Additional paid-in-capital		1,487,774			1,492,739			1,492,739
Accumulated overdistributed earnings		(558,553	)		(564,098	)		(636,113	)
Total net assets (equivalent to $6.60, $6.60 and $6.09 per common share as of September 30, 2019, June 30, 2019 and September 30, 2018, respectively)		930,630			930,050			858,035
Total liabilities and net assets	$	1,481,038		$	1,485,016		$	1,551,458

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Oaktree Specialty Lending Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts)

	Three months ended September 30, 2019 (unaudited)			Three months ended June 30, 2019 (unaudited)			Three months ended September 30, 2018 (unaudited)			Year ended September 30, 2019			Year ended September 30, 2018
Interest income:
Control investments	$	2,836		$	2,859		$	3,687		$	11,886		$	12,698
Affiliate investments		101			70			—			206			2,027
Non-control/Non-affiliate investments		27,640			29,850			31,496			120,888			103,223
Interest on cash and cash equivalents		85			131			123			690			563
Total interest income		30,662			32,910			35,306			133,670			118,511
PIK interest income:
Control investments		—			—			—			67			3,446
Affiliate investments		—			—			—			—			416
Non-control/Non-affiliate investments		1,187			1,198			499			5,430			1,907
Total PIK interest income		1,187			1,198			499			5,497			5,769
Fee income:
Control investments		6			6			6			25			951
Affiliate investments		5			5			—			19			48
Non-control/Non-affiliate investments		2,539			1,815			2,028			6,666			8,433
Total fee income		2,550			1,826			2,034			6,710			9,432
Dividend income:
Control investments		114			735			381			1,825			5,010
Total dividend income		114			735			381			1,825			5,010
Total investment income		34,513			36,669			38,220			147,702			138,722
Expenses:
Base management fee		5,496			5,548			5,767			22,343			22,652
Part I incentive fee		3,545			3,787			3,675			14,873			10,485
Part II incentive fee		(403	)		607			—			10,194			—
Professional fees		720			721			859			2,906			5,696
Directors fees		142			143			143			570			650
Interest expense		6,960			7,592			9,323			32,426			35,728
Administrator expense		388			384			336			1,941			1,687
General and administrative expenses		549			645			794			2,530			3,120
Total expenses		17,397			19,427			20,897			87,783			80,018
Fees waived		841			634			292			(7,990	)		(1,342	)
Net expenses		18,238			20,061			21,189			79,793			78,676
Net investment income		16,275			16,608			17,031			67,909			60,046
Unrealized appreciation (depreciation):
Control investments		52			3,419			26,081			1,519			115,906
Affiliate investments		(179	)		—			—			(360	)		(2,159	)
Non-control/Non-affiliate investments		2,621			20,744			21,039			39,689			(13,657	)
Secured borrowings		(2,624	)		—			(87	)		(2,719	)		2,353
Foreign currency forward contracts		695			(768	)		162			328			162
Net unrealized appreciation (depreciation)		565			23,395			47,195			38,457			102,605
Realized gains (losses):
Control investments		—			—			(31,331	)		—			(122,801	)
Affiliate investments		—			—			—			—			2,048
Non-control/Non-affiliate investments		(6,248	)		(21,112	)		1,494			15,300			6,042
Secured borrowings		2,625			—			—			2,625			—
Foreign currency forward contracts		1,097			1,268			(436	)		2,880			(436	)
Net realized gains (losses)		(2,526	)		(19,844	)		(30,273	)		20,805			(115,147	)
Redemption premium on unsecured notes payable		—			—			—			—			(120	)
Provision for income tax (expense) benefit		(343	)		(173	)		(622	)		(1,011	)		(622	)
Net realized and unrealized gains (losses), net of taxes		(2,304	)		3,378			16,300			58,251			(13,284	)
Net increase (decrease) in net assets resulting from operations	$	13,971		$	19,986		$	33,331		$	126,160		$	46,762
Net investment income per common share — basic and diluted	$	0.12		$	0.12		$	0.12		$	0.48		$	0.43
Earnings (loss) per common share — basic and diluted	$	0.10		$	0.14		$	0.24		$	0.89		$	0.33
Weighted average common shares outstanding — basic and diluted		140,961			140,961			140,961			140,961			140,961

8

EX-99.2

Fourth Quarter Fiscal Year 2019 Earnings Presentation November 20, 2019 Nasdaq: OCSL Exhibit 99.2

Forward Looking Statements Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Capital Management, L.P. (“Oaktree”) to reposition our portfolio and to implement Oaktree’s future plans with respect to our business; the ability of Oaktree 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 presentation 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 “Risk Factors” and elsewhere in our annual report on Form 10-K for the fiscal year ended September 30, 2019. Other factors that could cause actual results to differ materially include: changes or potential disruptions in our operations, the economy, financial markets and political environment; 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; 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 presentation on information available to us on the date of this presentation, 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 SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Unless otherwise indicated, data provided herein are dated as of September 30, 2019.

Accomplishments for the Fiscal Year Ended September 30, 2019 NAV Expansion Continued Progress Rotating Portfolio Earnings Growth ($ in millions, at fair value) 1 Net Investment Income Per Share Portfolio Assets NAV Per Share Key Accomplishments 1 2 3 4 1Excludes investments in Senior Loan Fund JV I, LLC (“Kemper JV”), a joint venture that primarily invests in middle-market and other corporate debt securities. 8.5% growth since September 30, 2018 37% decline in non-core investments since September 30, 2018 13% growth in FY 9/30/19 as compared to FY 9/30/18 Improved Capital Structure Through Credit Facility Amendments

Net asset value per share (“NAV”) of $6.60 Highlights for the Quarter Ended September 30, 2019 1 Net investment income of $0.12 per share 2 Continued progress rotating portfolio 3 Maintained defensive posture and conservative financial position 4 NAV has grown by approximately $73 million ($0.51 per share) or 8.5% since September 30, 2018 Seventh consecutive quarter of NAV growth Stable earnings of $0.12 per share in-line with the prior quarter and comparable quarter one year ago Board of Directors declared a dividend of $0.095 per share, payable on December 31, 2019 to stockholders of record as of December 13, 2019, consistent with the prior six quarters Received $67 million of proceeds from the exits of non-core investment during the quarter, including the full recovery of Refac Optical Group. At June 30, 2019, these exited investments had fair value of $60 million, which contributed $6 million ($0.05 per share) to NAV during the quarter Non-core investments have been reduced by $688 million, or 77%, since September 30, 2017, while core investments have more than doubled to $1.1 billion over the same period Originated $138 million of new investment commitments to 9 portfolio companies 0.51x leverage (debt-to-equity) is below target leverage range of 0.70x to 0.85x Well positioned with $385 million of dry powder available to invest

Key Earnings Metrics Net Investment Income Per Share NAV Per Share NII has increased by approximately 22% since December 31, 2017 NAV has appreciated 14% since December 31, 2017

Portfolio Summary as of September 30, 2019 (As % of total portfolio at fair value; $ in millions) (As % of total portfolio, at fair value) Portfolio Composition Top 10 Industries2,3 Portfolio Characteristics (at fair value) Note:Numbers may not sum due to rounding. 1Excludes investments in the Kemper JV. 2Excludes multi-sector holdings, which is primarily comprised of investments in the Kemper JV. 3Based on GICS sub-industry classification. $1.4 billion invested in 104 companies 91% of the total portfolio consists of debt investments $15 million average debt investment size1 8.9% weighted average yield on debt investments 90% of debt portfolio consists of floating rate investments

Portfolio Diversity OCSL’s portfolio is diverse across borrowers and industries (As % of total portfolio at fair value) Portfolio by Industry1,2 Diversity by Investment Size Top 10 Investments 26% Next 15 Investments 25% Remaining 78 Investments 40% Kemper JV 9% As of September 30, 2019 Note:Numbers may not sum due to rounding. 1Excludes investments in the Kemper JV. 2 Based on GICS industry classification. Industry Group % of Portfolio Software 12.3% IT Services 11.0% Healthcare Providers & Services 8.2% Biotechnology 6.5% Insurance 5.7% Pharmaceuticals 4.6% Diversified Telecommunication Services 4.5% Diversified Financial Services 4.1% Healthcare Technology 4.0% Oil, Gas & Consumable Fuels 3.3% Auto Components 3.1% Real Estate Management & Development 3.0% Remaining 24 Industries 29.7% (As % of total portfolio at fair value)

Debt Portfolio Company Metrics OCSL’s portfolio has transitioned into higher quality, larger borrowers with lower leverage, reflecting our defensive investment approach Debt Portfolio Company EBITDA1 Debt Portfolio Company Leverage1 Median Debt Portfolio Company EBITDA ($ in millions) Source: S&P Global Market Intelligence. 1 Excludes negative EBITDA borrowers, investments in aviation subsidiaries and recurring revenue software investments. 2 Excludes one investment on non-accrual and one venture capital investment. 3Represents average debt multiples for 1Q-3Q 2019. 9/30/17 9/30/18 9/30/19 $50 $103 $155 2 3

Non-core Investments: 16% of portfolio Non-core Investments: 63% of portfolio Historical Portfolio Progression Non-core private loans and non-accruals currently represent only 7% of OCSL’s portfolio ($ in millions, at fair value) Portfolio by Category1 -77% since 9/30/17 Non-core Investments 1Excludes investments in the Kemper JV. 2Other non-core investments includes liquid debt investments, investments in aviation entities, equity investments and non-accruals. +115% since 9/30/17 Core Investments Other Non-core Investments: 2 Non-core portfolio has been reduced by $688 million (77%) since September 30, 2017 Exited seven investments on non-accrual, realizing $55 million of gains since September 30, 2017 Exited 61 other non-core investments and non-core performing private loans, realizing $23 million of gains since September 30, 2017 Core portfolio has grown by $591 million (115%) since September 30, 2017

Note:Numbers may not sum due to rounding. 1Excludes equity positions in non-accrual debt positions and equity in aviation entities. Non-core Investment Portfolio Detail Non-core Investment Portfolio Characteristics Private Loans $89 million at fair value in five companies Net leverage through tranche: 4.9x Average debt price: 96.0% Equity Investments1 $89 million at fair value in 25 positions and limited partnership interests in two third-party managed funds $35 million: Cloud5 (post-restructuring equity) $15 million: YETI Holdings (public equity) Aviation $16 million at fair value in one aircraft Liquid Debt Investments $9 million at fair value in two companies Average debt price: 94.7% Exited $11 million at par during the quarter ended September 30, 2019 Non-accruals $3 million at fair value in three companies Average debt price: 3.8% Exited Refac Optical Group and restructured Cloud5 during the quarter ended September 30, 2019 (As % of non-core investment portfolio, at fair value; $ in millions) Non-core Investments by Type (At fair value; $ in millions) Non-core Portfolio Composition $205

Q3 2019 Portfolio Originations $138 million of new investment commitments $129 million of new funded investments1 9 portfolio companies across 8 industries 7.7% weighted average yield at cost of new debt investments 92% of new debt investment commitments at floating rates 93% of new investments also held by other Oaktree funds New Investment Highlights ($ in millions) Historical Originations and Exits (As % of new investment commitments; $ in millions) New Investment Composition Note:Numbers rounded to the nearest million or percentage point. 1 New funded investments includes drawdowns on existing revolver commitments. 2Investment exits includes proceeds from prepayments, exits, other paydowns and sales. Remaining patient and highly selective when evaluating new investment opportunities given competitive market environment 1 2

Historical Financial Information ($ in thousands, except per share amounts) Operating Results For the three months ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Interest income $30,662 $32,910 $34,309 $35,789 $35,306 PIK interest income 1,187 1,198 2,280 832 499 Fee income 2,550 1,826 1,132 1,202 2,034 Dividend income 114 735 523 453 381 Total investment income 34,513 36,669 38,244 38,276 38,220 Base management fee 5,496 5,548 5,731 5,568 5,767 Parts I & II incentive fees 3,142 4,394 11,983 5,548 3,675 Interest expense 6,960 7,592 8,970 8,904 9,323 Other operating expenses1 1,799 1,893 1,752 2,503 2,132 Total expenses 17,397 19,427 28,436 22,523 20,897 Fees waived 841 634 (7,901) (1,564) 292 Net expenses 18,238 20,061 20,535 20,959 21,189 Net investment income 16,275 16,608 17,709 17,317 17,031 Net realized and unrealized gains (losses) (1,961) 3,551 46,685 10,987 16,922 Provision for income taxes (343) (173) 91 (586) (622) Net increase/decrease in net assets resulting from operations $13,971 $19,986 $64,485 $27,718 $33,331 Net investment income per common share $0.12 $0.12 $0.13 $0.12 $0.12 Net realized and unrealized gains (losses) per common share (0.02) 0.02 0.33 0.08 0.12 Earnings (loss) per common share – basic and diluted $0.10 $0.14 $0.46 $0.20 $0.24 Distributions per common share $0.095 $0.095 $0.095 $0.095 $0.095 1Includes professional fees, directors fees, administrator expenses and general and administrative expenses.

Historical Financial Information (continued) ($ in thousands, except per share amounts) Select Balance Sheet and Other Data As of 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Investment Portfolio (at fair value) $1,438,042 $1,455,031 $1,504,888 $1,464,885 $1,491,201 Total Debt Outstanding1 473,367 537,278 592,178 607,141 637,213 Total Net Assets 930,630 930,050 923,456 872,362 858,035 Net Asset Value per share $6.60 $6.60 $6.55 $6.19 $6.09 Total Leverage 0.51x 0.58x 0.64x 0.70x 0.75x Weighted Average Interest Rate on Debt Outstanding 4.8% 5.1% 5.1% 5.3% 5.1% Weighted Average Yield on Debt Investments2 8.9% 8.7% 9.0% 8.7% 8.4% Cash Component of Weighted Average Yield on Debt Investments 8.1% 8.0% 8.3% 8.0% 8.2% Weighted Average Yield on Total Portfolio Investments3 8.2% 8.2% 8.3% 8.1% 8.1% 1Net of unamortized financing costs. 2Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments, including our share of the return on debt investments in the Kemper JV. 3Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments and dividend income, including our share of the return on debt investments in the Kemper JV.

Historical Portfolio Activity ($ in thousands) As of 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Investments at Fair Value $1,438,042 $1,455,031 $1,504,888 $1,464,885 $1,491,201 Number of Portfolio Companies 104 105 110 110 113 Average Portfolio Company Debt Investment Size $15,300 $15,400 $15,000 $15,000 $14,800 Asset Class: Senior Secured Debt 78.6% 79.7% 78.9% 80.0% 75.4% Unsecured Debt 5.7% 7.0% 8.0% 7.8% 11.0% Equity 6.7% 4.3% 4.2% 3.3% 4.4% Limited Partnership Interests 0.2% 0.2% 0.5% 0.5% 0.5% Kemper JV 8.8% 8.8% 8.4% 8.4% 8.7% Interest Rate Type for Debt Investments: % Floating-Rate 89.8% 88.5% 86.3% 86.6% 83.2% % Fixed-Rate 10.2% 11.5% 13.7% 13.4% 16.8% Investment Activity: New Investment Commitments $138,400 $66,800 $100,000 $231,100 $228,400 New Funded Investment Activity1 128,500 74,100 111,100 162,400 218,400 Proceeds from Prepayments, Exits, Other Paydowns and Sales 139,000 138,300 120,700 208,300 267,500 Net New Investments2 (10,500) (64,200) (9,600) (45,900) (49,100) Number of New Investment Commitments in New Portfolio Companies 5 3 5 14 13 Number of New Investment Commitments in Existing Portfolio Companies 4 4 1 3 3 Number of Portfolio Company Exits 7 8 4 14 18 1New funded investment activity includes drawdowns on existing revolver commitments. 2Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales.

Net Asset Value Per Share Bridge Note:Net asset value per share amounts are based on the shares outstanding at each respective quarter end. Net investment income per share, net unrealized appreciation / (depreciation), and net realized gain / (loss) are based on the weighted average number of shares outstanding for the period. 1Excludes reclassifications of net unrealized appreciation / (depreciation) to net realized gains / (losses) as a result of investments exited during the quarter. 1 1

Capital Structure Overview ($ in millions) ($ in millions) (As % of total funding sources) ($ in millions) Funding Sources Funding Sources by Type Historical Principal Outstanding and Leverage Ratio Maturity Profile of Liabilities Committed Principal Outstanding Interest Rate Maturity Credit Facility $700 $315 LIBOR+2.00%1 2/25/2024 2024 Notes 75 75 5.875% 10/30/2024 2028 Notes 86 86 6.125% 4/30/2028 Total $861 $476 As of September 30, 2019 1Interest rate spread can increase up to 2.25% depending on the senior coverage ratio. Target Leverage Ratio: 0.70x-0.85x debt-to-equity No debt maturities until 2024

Joint Venture Summary ($ in millions; at fair value) ($ in millions; at fair value) (As % of total portfolio, at fair value) Joint Venture Overview Portfolio Summary Joint Venture Structure Debt Portfolio Top Ten Industries As of September 30, 2019 1Includes $42 million of unsettled purchases. Joint venture between OCSL and Kemper Corporation that primarily invests in senior secured loans of middle market companies as well as other corporate debt securities Capitalized pro rata by OCSL (87.5%) and Kemper (12.5%) Funded by $250 million credit facility: 9/30/19 6/30/19 3/31/19 12/31/18 Total investments $345 $329 $326 $285 Number of issuers 51 51 49 42 Average issuer size $7 $6 $7 $7 Largest issuer size $11 $11 $11 $18 Wtg. avg. debt portfolio yield 6.7% 6.9% 6.9% 7.1% Leverage ratio 1.2x 1.3x 1.3x 1.0x Credit Facility $170 Investment Portfolio $345 OCSL $126 (87.5%) Cash & Other Net Assets1 ($31) Kemper $18 (12.5%) $ in millions) Committed Principal Outstanding Interest Rate Maturity Credit facility $250 $170 LIBOR + 2.1% June 2026 Current Leverage Ratio: 1.2x debt-to-equity Target Leverage Ratio: 2.0x debt-to-equity

Redeploy non-interest generating investments Opportunities to Increase Return on Equity As of September 30, 2019 Note:Numbers may not sum due to rounding. 1 Operate within target leverage range of 0.70x-0.85x debt-to-equity 2 Utilize additional investment capacity at the Kemper JV 3 Received $49 million in proceeds from the exits of a non-accrual and equity position during the quarter ended September 30, 2019 $102 million of non-interest generating investments remain, including $3 million of non-accruals and $100 million of equity investments Received over $245 million in proceeds from exits of non-interest generating investments since September 30, 2017 Current leverage of 0.51x debt-to-equity is below target leverage range (would need to deploy approximately $180 million in order to reach 0.70x leverage) Continue to be highly selective and patient given competitive market environment Originated $46 million of investments across 7 issuers during the quarter ended September 30, 2019 1.2x leverage (debt-to-equity), below target leverage level of 2.0x $118 million of available investment capacity (assuming 2.0x leverage) We believe OCSL is well-positioned to enhance return on equity

Contact: Michael Mosticchio, Investor Relations ocsl-ir@oaktreecapital.com