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): December 1, 2017

Oaktree Strategic Income Corporation

(Exact name of registrant as specified in its charter)

Delaware	814-01013	61-1713295
(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))

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 December 1, 2017, Oaktree Strategic Income Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter and year ended September 30, 2017. A copy of the press release is attached hereto as Exhibit 99.1.

On December 1, 2017, the Company will host a conference call to discuss its financial results for the fiscal quarter and year ended September 30, 2017. In connection therewith, the Company provided an investor presentation on its website at http://www.oaktreestrategicincome.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 Strategic Income Corporation dated December 1, 2017

99.2 Oaktree Strategic Income Corporation Fourth Quarter and Fiscal Year 2017 Earnings Presentation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	OAKTREE STRATEGIC INCOME CORPORATION
Date: December 1, 2017	By:	/s/ Mel Carlisle
		Name: Mel Carlisle
		Title: Chief Financial Officer

EX-99.1

Exhibit 99.1

Oaktree Strategic Income Corporation Announces Fourth Fiscal Quarter 2017 Financial Results

LOS ANGELES, CA. December 1, 2017—Oaktree Strategic Income Corporation (formerly known as Fifth Street Senior Floating Rate Corp. through October 17, 2017) (NASDAQ: OCSI) (“Oaktree Strategic Income” or the “Company”), a specialty finance company, today announced its unaudited financial results for the fourth fiscal quarter ended September 30, 2017.

Fourth Fiscal Quarter 2017 Highlights

• Net investment income of $5.5 million, or $0.19 per share;

• Net asset value per share as of September 30, 2017 of $9.97;

• Originated $108.7 million of new investment commitments and received $71.3 million in connection with full repayments and exits of investments; and

• On August 7, 2017, the Company’s Board of Directors declared a fourth quarter dividend of $0.19 per share, payable on December 29, 2017 to stockholders of record on December 15, 2017.

Recent Developments

• On October 17, 2017, Oaktree Capital Management, L.P. was appointed as the investment adviser of the Company and Edgar Lee was appointed Chief Executive Officer. Other members of the executive leadership team include Matt Pendo, Chief Operating Officer, Mel Carlisle, Chief Financial Officer, and Kim Larin, Chief Compliance Officer.

Management Commentary

“We are very excited to be managing Oaktree Strategic Income,” said Edgar Lee, Chief Executive Officer of Oaktree Strategic Income. “The vast majority of the portfolio is invested in senior secured loans to established middle-market companies that are performing well. We have begun making new investments and over time, we intend to increase our exposure to larger, more liquid first lien loans in both the broadly syndicated and private placement markets. We believe the Oaktree platform and our ability to co-invest alongside other Oaktree funds positions us well to deliver stable income and attractive returns to our stockholders over time.”

Portfolio and Investment Activity

As of September 30, 2017, the fair value of the investment portfolio was $560.4 million and total assets were $608.7 million. The investment portfolio consisted of investments in 67 companies and also included the Company’s investment in FSFR Glick JV LLC (“Glick JV”).

At fair value, 89.5% of the Company’s portfolio as of September 30, 2017 consisted of senior secured floating-rate debt investments, including 84.9% of first lien loans and 4.6% of second lien loans; 10.3% consisted of a subordinated note in Glick JV; and 0.2% in equity investments in other portfolio companies.

As of September 30, 2017, Glick JV had $126.7 million in assets, including senior secured loans to 23 portfolio companies. The joint venture generated income of $1.2 million for Oaktree Strategic Income during the fourth quarter.

The weighted average yield on the Company’s debt investments as of September 30, 2017, including the return on our subordinated note investment in Glick JV, was 7.5%, including 7.3% representing cash payments.

During the quarter ended September 30, 2017, the Company originated $108.7 million of investment commitments in 10 new and seven existing portfolio companies and funded $108.4 million across new and existing portfolio companies.

During the quarter, the Company received $71.3 million in connection with the full repayments and exits of eight of its investments, and an additional $23.2 million in connection with other paydowns and sales of investments.

Results of Operations

Total investment income for the quarter ended September 30, 2017 was $11.8 million, including $10.9 million of cash interest income from portfolio investments.

Net expenses for the quarter ended September 30, 2017 were $6.3 million. Net expenses increased slightly from $6.2 million in the quarter ended June 30, 2017.

Net unrealized depreciation on the investment portfolio for the quarter was $20.0 million, which was primarily due to significant write-downs on a number of the Company’s portfolio companies, including $10.3 million on one of the Company’s investments.

Liquidity and Capital Resources

As of September 30, 2017, the Company had $43.0 million of cash and cash equivalents, total principal value of debt outstanding of $263.0 million, and $67.0 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average interest rate on debt outstanding was 3.26% as of September 30, 2017.

As of September 30, 2017, the Company’s total leverage ratio was 0.90x debt-to-equity.

Dividend Declaration

On August 7, 2017, the Company’s Board of Directors declared a fourth quarter dividend of $0.19 per share, payable on December 29, 2017 to stockholders of record on December 15, 2017.

Dividends 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.

Portfolio Asset Quality

As of September 30, 2017, there were three investments on which the Company had stopped accruing cash and/or PIK interest or original issue discount (“OID”) income that, in the aggregate, represented 5.6% of the debt portfolio at cost and 1.1% at fair value.

($ in thousands)
Non-Accrual - Debt Investments	As of September 30, 2017			As of June 30, 2017
Non-Accrual Investments at Fair Value	$	6,293		$	7,922
Non-Accrual Investments/Total Investments at Fair Value		1.1	%		1.4	%

Oaktree Strategic Income Corporation

Consolidated Statements of Assets and Liabilities

	September 30, 2017			June 30, 2017			September 30, 2016
ASSETS
Investments at fair value:
Control investments (cost September 30, 2017: $71,340,632; cost June 30, 2017: $71,117,506; cost September 30, 2016: $71,117,506)	$	57,606,674		$	61,614,406		$	63,316,667
Affiliate investments (cost September 30, 2017: $17,479,053; cost June 30, 2017: $18,006,812; cost September 30, 2016: $15,953,798)		935,913			11,778,272			13,006,458
Non-control/Non-affiliate investments (cost September 30, 2017: $516,270,639; cost June 30, 2017: $500,706,398; cost September 30, 2016: $513,397,659)		501,894,073			491,785,575			497,281,256
Total investments at fair value (cost September 30, 2017: $605,090,324; cost June 30, 2017: $589,830,716; cost September 30, 2016: $600,468,963)		560,436,660			565,178,253			573,604,381
Cash and cash equivalents		35,604,127			19,258,982			19,778,841
Restricted cash		7,408,260			7,651,878			9,036,838
Interest, dividends and fees receivable		3,014,075			2,883,409			4,579,935
Due from portfolio companies		286,260			305,501			336,429
Receivables from unsettled transactions		505,000			846,065			12,869,092
Deferred financing costs		1,222,933			1,348,806			2,063,133
Other assets		185,336			344,196			148,492
Total assets	$	608,662,651		$	597,817,090		$	622,417,141
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	482,877		$	466,921		$	1,246,286
Base management fee and incentive fee payable		2,236,187			2,163,704			2,987,721
Due to FSC CT		450,517			427,646			402,073
Interest payable		1,996,171			1,946,228			1,798,653
Payables from unsettled transactions		49,029,789			12,831,700			—
Amounts payable to syndication partners		—			—			18,750
Director fees payable		98,008			122,450			236,275
Credit facilities payable		82,956,800			86,656,800			107,426,800
Notes payable (net of $2,224,132, $2,296,658 and $2,514,236 of unamortized financing costs as of September 30, 2017, June 30, 2017 and September 30, 2016, respectively)		177,775,868			179,503,342			177,485,764
Secured borrowings at fair value (proceeds September 30, 2016: $5,000,000)		—			—			4,985,425
Total liabilities		315,026,217			284,118,791			296,587,747
Commitments and contingencies
Net assets:
Common stock, $0.01 par value, 150,000,000 shares authorized; 29,466,768 shares issued and outstanding at September 30, 2017, June 30, 2017 and September 30, 2016		294,668			294,668			294,668
Additional paid-in-capital		373,995,934			373,995,934			373,995,934
Net unrealized depreciation on investments and secured borrowings		(44,653,664	)		(24,652,463	)		(26,850,007	)
Net realized loss on investments		(24,354,622	)		(24,371,682	)		(10,969,707	)
Accumulated overdistributed net investment income		(11,645,882	)		(11,568,158	)		(10,641,494	)
Total net assets (equivalent to $9.97, $10.65 and $11.06 per common share at September 30, 2017, June 30, 2017 and September 30, 2016, respectively)		293,636,434			313,698,299			325,829,394
Total liabilities and net assets	$	608,662,651		$	597,817,090		$	622,417,141

Oaktree Strategic Income Corporation

Consolidated Statements of Operations

	Three months ended September 30, 2017			Three months ended June 30, 2017			Three months ended September 30, 2016			Year ended September 30, 2017			Year ended September 30, 2016
Interest income:
Control investments	$	1,290,389		$	1,452,148		$	1,383,409		$	5,541,299		$	5,065,350
Affiliate investments		—			130,217			97,191			331,804			182,194
Non-control/Non-affiliate investments		9,559,293			10,406,975			10,736,098			38,489,924			42,152,565
Interest on cash and cash equivalents		68,306			36,094			15,319			166,896			68,630
Total interest income		10,917,988			12,025,434			12,232,017			44,529,923			47,468,739
PIK interest income:
Control investments		223,125			—			—			223,125			—
Affiliate investments		—			63,551			48,595			164,331			91,097
Non-control/Non-affiliate investments		—			—			13,182			20,965			75,968
Total PIK interest income		223,125			63,551			61,777			408,421			167,065
Fee income:
Affiliate investments		—			3,351			3,148			9,647			6,296
Non-control/Non-affiliate investments		1,022,638			498,497			206,405			2,199,909			3,071,634
Total fee income		1,022,638			501,848			209,553			2,209,556			3,077,930
Dividend and other income:
Control investments		—			—			700,000			187,420			2,712,500
Allowance for control investments		(343,272	)		(420,192	)		—			(763,464	)		—
Total dividend and other income		(343,272	)		(420,192	)		700,000			(576,044	)		2,712,500
Total investment income		11,820,479			12,170,641			13,203,347			46,571,856			53,426,234
Expenses:
Base management fee		1,420,696			1,419,603			1,516,133			5,654,699			6,134,304
Part I incentive fee		815,491			1,143,101			1,477,820			3,236,320			5,211,729
Professional fees		543,226			280,008			664,247			1,515,536			4,193,532
Board of Directors fees		153,008			127,464			81,275			538,072			546,300
Interest expense		2,645,090			2,661,975			2,546,007			10,769,842			9,594,441
Administrator expense		205,152			127,533			98,269			661,170			504,299
General and administrative expenses		516,854			480,490			483,778			2,030,756			1,955,177
Total expenses		6,299,517			6,240,174			6,867,529			24,406,395			28,139,782
Base management fee waived		—			—			(6,232	)		(6,232	)		(6,232	)
Insurance recoveries		—			—			—			(250,000	)		—
Net expenses		6,299,517			6,240,174			6,861,297			24,150,163			28,133,550
Net investment income		5,520,962			5,930,467			6,342,050			22,421,693			25,292,684
Unrealized appreciation (depreciation) on investments:
Control investments		(4,230,858	)		103,555			(214,065	)		(5,933,119	)		(5,979,787	)
Affiliate investments		(10,314,600	)		(1,633,615	)		(566,607	)		(13,595,800	)		(2,947,340	)
Non-control/Non-affiliate investments		(5,455,743	)		(4,272,744	)		2,426,107			1,739,837			(8,067,972	)
Net unrealized appreciation (depreciation) on investments		(20,001,201	)		(5,802,804	)		1,645,435			(17,789,082	)		(16,995,099	)
Net unrealized (appreciation) depreciation on secured borrowings		—			—			14,575			(14,575	)		14,575
Realized gain (loss) on investments and secured borrowings:
Non-control/Non-affiliate investments		17,060			11,535			590,889			(13,384,915	)		(12,769,777	)
Net realized gain (loss) on investments and secured borrowings		17,060			11,535			590,889			(13,384,915	)		(12,769,777	)
Net increase (decrease) in net assets resulting from operations	$	(14,463,179	)	$	139,198		$	8,592,949		$	(8,766,879	)	$	(4,457,617	)
Net investment income per common share — basic and diluted	$	0.19		$	0.20		$	0.22		$	0.76		$	0.86
Earnings (loss) per common share — basic and diluted	$	(0.49	)	$	—		$	0.29		$	(0.30	)	$	(0.15	)
Weighted average common shares outstanding — basic and diluted		29,466,768			29,466,768			29,466,768			29,466,768			29,466,768
Distributions per common share	$	0.19		$	0.19		$	0.225		$	0.80		$	0.90

Note: All interim financial results presented in this release are unaudited. Financial results for the year ended September 30, 2017 are subject to the completion of the Company’s annual audit.

Conference Call Information

Oaktree Strategic Income will host a conference call to discuss results for its fiscal quarter and year ended September 30, 2017 on December 1, 2017 at 1:00 p.m. Eastern Time / 10:00 a.m. Pacific Time. The conference call may be accessed by dialing (877) 507-4376 (U.S. callers) or +1 (412) 317-5239 (non-U.S. callers), participant password “Oaktree Strategic Income.” During the earnings conference call, Oaktree Strategic Income intends to refer to an investor presentation that will be available on the Investors section of the Oaktree Strategic Income website, www.oaktreestrategicincome.com. Alternatively, a live webcast of the conference call can be accessed through the Investors section of Oaktree Strategic Income website, www.oaktreestrategicincome.com.

For those individuals unable to listen to the live broadcast of the conference call, a replay will be available for 30 days on Oaktree Strategic Income’s website, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 10114279, beginning approximately one hour after the broadcast.

About Oaktree Strategic Income Corporation

Oaktree Strategic Income Corporation (NASDAQ:OCSI) is a specialty finance company dedicated to providing customized capital solutions for middle-market companies in both the syndicated and private placement markets. The Company seeks to generate a stable source of current income while minimizing the risk of principal loss and, to a lesser extent, capital appreciation by providing middle-market companies with primarily first lien secured debt financings that pay the Company interest at rates which are determined periodically on the basis of a floating interest rate. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended. Oaktree Strategic Income is managed by Oaktree Capital Management, L.P. For additional information, please visit Oaktree Strategic Income’s website at www.oaktreestrategicincome.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. 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 Strategic Income Corporation

Michael Mosticchio

(212) 284-1900

ocsi-ir@oaktreecapital.com

Media Relations:

Financial Profiles, Inc.

Moira Conlon

(310) 478-2700

mediainquiries@oaktreecapital.com

EX-99.2

4th Quarter and Fiscal Year 2017 Earnings Presentation December 1, 2017 Nasdaq: OCSI 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 our Investment Adviser to find lower-risk investments to reposition our portfolio and to implement our Investment Adviser’s future plans with respect to our business; 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; 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. 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. Unless otherwise indicated, data provided herein is dated as of September 30, 2017.

Managed by Oaktree Capital Management Assets Under Management ($ in billions)2 ($ in billions) Investment Areas1 Historical Assets Under Management Founded in 1995, Oaktree is a leading global investment management firm focused on credit investing Applies a contrarian, value-oriented and risk-controlled investment strategy across a variety of asset classes Assets under management of $99.5 billion as of September 30, 2017 Manages assets for a wide variety of clients including many of the most significant investors in the world 75 of the 100 largest U.S. pension plans The main pension fund of 38 states in the United States Over 400 corporations Over 350 university, charitable and other endowments and foundations Over 350 non-U.S. institutional investors and 16 sovereign wealth funds Corporate Debt $41.1 Distressed Debt $25.3 Control Investing $14.5 Real Estate $8.8 Convertible Securities $5.5 Listed Equities $4.3 As of September 30, 2017 1Includes offices of affiliates of Oaktree-managed funds. Oaktree headquarters is based in Los Angeles. 2Assets under management presented above exclude $75 million of assets in the Japan Opportunities strategy.

The Oaktree Advantage Scale Premier credit manager and leader among alternative investment managers for more than 20 years $99.5 billion in assets under management; 70% in credit strategies A team of more than 250 highly experienced investment professionals with significant origination, structuring and underwriting expertise Relationships Trusted partner to financial sponsors and management teams based on long-term commitment and focus on lending across economic cycles Strong market presence and established relationships with many sources of investment opportunities – private equity sponsors, capital raising advisers and borrowers Access to proprietary deal flow and first look at investment opportunities Track Record Disciplined portfolio management approach demonstrated across market cycles Long history of private credit investing $10 billion invested in over 200 directly originated loans since 2005 Flexibility Expertise to structure comprehensive, flexible and creative credit solutions for companies of all sizes across numerous industry sectors Capacity to invest in large deals and to sole underwrite transactions

Oaktree Strategic Income Investment Objectives A specialty finance company dedicated to providing customized capital solutions for middle-market companies in both the broadly syndicated and private placement markets Focus on businesses with resilient business models, strong fundamentals and seasoned management teams Seek to generate stable, current income by investing primarily in first lien, floating-rate loans Minimize the risk of principal loss, with less focus on capital appreciation opportunity Mitigate interest rate risk by targeting floating-rate investments Emphasis on fundamental credit analysis, consistency and downside protection are key tenets of Oaktree’s investment philosophy, all of which are strongly aligned with the interests of Oaktree Strategic Income stockholders

Fourth Quarter and Fiscal Year 2017 Highlights Highlights As of September 30, 2017 Total Assets $608.7 million Net Asset Value Per Share $9.97 Cash and Cash Equivalents $35.6 million Total Leverage Ratio 0.90x Q4 Results of Operations Net investment income of $5.5 million, or $0.19 per share $108.7 million in new investment commitments $108.4 million in fundings $71.3 million in prepayments and exits Dividend of $0.19 per share FY 2017 Results of Operations Net investment income of $22.4 million, or $0.76 per share $290.8 million in new investment commitments $290.6 million in fundings $215.3 million in prepayments and exits Dividends of $0.80 per share

Portfolio Summary as of September 30, 2017 (As % of total portfolio, at fair value) Top 10 Industries (As % of total portfolio, at fair value) Portfolio Composition $560M Portfolio invested in 67 companies 7.5% Weighted average yield on debt investments 100% Of the debt portfolio consists of floating-rate loans

Historical Financial Highlights Including pro forma share of the return on Glick JV debt investments. ($ in thousands) Operating Results Q4’17 Q3’17   Q2’17 Q1’17 Q4’16 17-Sep 17-Jun 17-Mar 16-Dec 16-Sep Net investment income $5,521 $5,930 $5,086 $5,884 $6,342 Net unrealized appreciation (depreciation) on investments (20,001) (5,803) 13,242 (5,242) 1,660 Net realized gain (loss) on investments 17 12 (13,496) 83 591 Net increase (decrease) in net assets resulting from operations ($14,463) $139 $4,832 $725 $8,593 Net investment income per common share $0.19 $0.20 $0.17 $0.20 $0.22 Net realized and unrealized appreciation (depreciation) per share ($0.68) ($0.20) ($0.01) ($0.18) $0.07 Earnings (loss) per share – basic ($0.49) $0.00 $0.16 $0.02 $0.29 Earnings (loss) per share – diluted ($0.49) 0.00 0.16 0.02 0.29 Distributions per common share $0.19 $0.19 $0.19 $0.23 $0.225 Select Balance Sheet and Other Data         Investment Portfolio (at fair value) $560,437 $565,178 $545,922 $540,103 $573,604 Debt Outstanding 260,733 266,160 275,388 249,815 289,898 Total Net Assets 293,636 313,698 319,158 319,924 325,829 Net Asset Value per share $9.97 $10.65 $10.83 $10.86 $11.06 Total Leverage 0.90x 0.86x 0.87x 0.79x 0.90x Shares Outstanding (in thousands) 29,467 29,467 29,467 29,467 29,467 Number of Portfolio Companies, at period end 67 68 61 61 63 Weighted Average Yields, at period end         Debt Investments Total(1) 7.5% 7.9% 8.4% 8.5% 8.6% Cash Component 7.3% 7.6% 8.1% 8.2% 8.3% Note: Results contained herein occurred during management by Fifth Street Management LLC.

Historical Portfolio Metrics ($ in thousands)   As of and For Three Months Ended 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Investments at Fair Value $560,437 $565,178 $545,922 $540,103 $573,604 Number of Portfolio Companies 67 68 61 61 63 Average Portfolio Company Debt Investment Size $8,500 $8,200 $8,600 $8,700 $8,900 Asset Class:         Senior Secured Debt 89.5% 88.3% 87.6% 87.3% 87.6% Glick JV 10.3% 10.9% 11.3% 11.4% 11.0% Equity 0.2% 0.8% 1.1% 1.2% 1.4% Interest Rate Type:         % Floating Rate 100% 100% 100% 100% 100% Yields:         Weighted Average Total Yield of Debt and Income Producing Securities 7.5% 7.9% 8.4% 8.5% 8.6% Weighted Average Cash Component of Interest Rate of Debt and Income Producing Securities 7.3% 7.6% 8.1% 8.2% 8.3% Investment Activity at Cost:         New Investment Commitments $108,700 $58,000 $82,800 $41,300 $28,200 New Funded Investment Activity $108,400 $66,900 $77,600 $37,600 $26,200 New Investment Commitments:         Number of New Investment Commitments in New and Existing Portfolio Companies 17 12 11 8 4 Average New Investment Commitment $6,394 $4,833 $7,527 $5,163 $7,050 Note: Results contained herein occurred during management by Fifth Street Management LLC.

Portfolio Credit Quality and Funding ($ in thousands) Non-Accrual - Debt Investments 30-Sep-17 30-Jun-17 Non-Accrual Investments at Fair Value $6,293 $7,922 Non-Accrual Investments / Total Investments at Fair Value 1.12% 1.41% Note: Results contained herein occurred during management by Fifth Street Management LLC. Funding Source Capacity Outstanding Interest Rate Maturity 2015 Debt Securitization $180 million $180 million 3.07% weighted average(1) May 2025 Citibank Revolving Credit Facility $125 million $76.5 million LIBOR + 200-400 bps January 2020 East West Bank Facility $25 million $6.5 million LIBOR + 300-375 bps January 2021 Sources of Funding (as of September 30, 2017) Non-Accrual – Debt Investments (1) The weighted average interest rate as of September 30, 2017.

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