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): February 9, 2018

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 February 9, 2018, Oaktree Strategic Income Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended December 31, 2017. A copy of the press release is attached hereto as Exhibit 99.1.

On February 9, 2018, the Company will host a conference call to discuss its financial results for the fiscal quarter ended December 31, 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 February 9, 2018
99.2	Oaktree Strategic Income Corporation First Quarter 2018 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 STRATEGIC INCOME CORPORATION
Date: February 9, 2018	By:	/s/ Mel Carlisle
		Name: Mel Carlisle Title: Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

Oaktree Strategic Income Corporation Announces First Fiscal Quarter 2018 Financial Results

LOS ANGELES, CA, February 9, 2018—Oaktree Strategic Income Corporation (NASDAQ: OCSI) (“Oaktree Strategic Income” or the “Company”), a specialty finance company, today announced its unaudited financial results for the fiscal quarter ended December 31, 2017.

First Fiscal Quarter 2018 Highlights

• Total investment income of $10.7 million, or $0.36 per share;

• Net investment income of $4.5 million, or $0.15 per share;

• Net asset value per share as of December 31, 2017 of $9.84; and

• Originated $136.2 million of new investment commitments and received $71.3 million in connection with full repayments and exits of investments.

Recent Developments

• On January 31, 2018, the Company entered into a new secured revolving credit facility. The facility’s total capacity is $100 million and the revolving period expires on January 30, 2021 with a final maturity date of January 31, 2023.

Management Commentary

“We are glad to report the credit quality of the Oaktree Strategic Income portfolio is strong as the majority of our investments are performing well,” said Edgar Lee, Chief Executive Officer and Chief Investment Officer of Oaktree Strategic Income. “Since we began managing the portfolio in mid-October, we have been focused on redeploying capital from loan payoffs and exits into larger, first lien loans to a diversified group of stable, middle-market companies. Looking to the future, we are excited about the opportunity to deploy capital into higher yielding, proprietary originations generated by Oaktree’s platform.”

Portfolio and Investment Activity

As of December 31, 2017, the fair value of the investment portfolio was $541.4 million and was comprised of investments in 65 portfolio companies and the investments in FSFR Glick JV LLC (“Glick JV”).

At fair value, 89.2% of the Company’s portfolio as of December 31, 2017 consisted of senior secured floating-rate debt investments, including 86.0% of first lien loans and 3.2% of second lien loans; 10.6% consisted of a subordinated note investment in Glick JV; and 0.2% consisted of equity investments in other portfolio companies.

As of December 31, 2017, Glick JV had $151.5 million in assets, including senior secured loans to 25 portfolio companies. The joint venture generated income of $1.5 million for Oaktree Strategic Income during the quarter ended December 31, 2017.

The weighted average yield on the Company’s debt investments as of December 31, 2017, including the return on our subordinated note investment in Glick JV, was 7.1%.

During the quarter ended December 31, 2017, the Company originated $136.2 million of new investment commitments, including investments in 17 new and three existing portfolio companies and funded $143.9 million of investments 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 $90.1 million in connection with other paydowns and sales of investments.

Results of Operations

Total investment income for the quarter ended December 31, 2017 was $10.7 million, including $10.0 million of cash interest income from portfolio investments, as compared with total investment income of $11.8 million and cash interest income of $10.9 million for the quarter ended September 30, 2017. The decline in total investment income was primarily due to a lower weighted average yield on investments and a smaller average portfolio size during the quarter, as loan payoffs and exits exceeded fundings.

Net expenses for the quarter were $6.2 million, a slight decline from $6.3 million in the prior quarter, primarily due to lower management and incentive fees and general and administrative expenses, partially offset by higher professional fees.

Net unrealized appreciation on the investment portfolio for the quarter was $1.7 million. Net realized loss for the quarter was $4.4 million, which was primarily driven by the sale of the Company’s first lien term loan investment in New Trident Holdcorp, Inc. during the quarter.

Liquidity and Capital Resources

As of December 31, 2017, the Company had $46.2 million of cash and cash equivalents (including restricted cash), total principal value of debt outstanding of $254.1 million, and $95.9 million of undrawn capacity on its credit facilities and 2015 debt securitization, subject to borrowing base and other limitations. The weighted average interest rate on debt outstanding was 3.57% as of December 31, 2017.

As of December 31, 2017, the Company’s total leverage ratio was 0.88x debt-to-equity.

Dividend Declaration

The Board of Directors declared a quarterly dividend of $0.14 per share, payable on March 30, 2018 to stockholders of record on March 15, 2018.

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 December 31, 2017, there were three investments on which the Company had stopped accruing cash and/or payment-in-kind (“PIK”) interest or original issue discount (“OID”) income that, in the aggregate, represented 4.1% of the debt portfolio at cost and 1.2% at fair value.

($ in thousands)
Non-Accrual—Debt Investments	As of December 31, 2017			As of September 30, 2017
Non-Accrual Investments at Fair Value	$	6,352		$	6,293
Non-Accrual Investments/Total Investments at Fair Value		1.2	%		1.1	%

Oaktree Strategic Income Corporation

Consolidated Statements of Assets and Liabilities

	December 31, 2017 (unaudited)			September 30, 2017
ASSETS
Investments at fair value:
Control investments (cost December 31, 2017: $71,635,783; cost September 30, 2017: $71,340,632)	$	57,180,650		$	57,606,674
Affiliate investments (cost December 31, 2017: $17,477,733; cost September 30, 2017: $17,479,053)		1,010,509			935,913
Non-control/Non-affiliate investments (cost December 31, 2017: $495,206,582; cost September 30, 2017: $516,270,639)		483,217,174			501,894,073
Total investments at fair value (cost December 31, 2017: $584,320,098; cost September 30, 2017: $605,090,324)		541,408,333			560,436,660
Cash and cash equivalents		39,975,500			35,604,127
Restricted cash		6,196,671			7,408,260
Interest, dividends and fees receivable		2,679,014			3,014,075
Due from portfolio companies		59,606			286,260
Receivables from unsettled transactions		17,806,666			505,000
Deferred financing costs		1,097,060			1,222,933
Other assets		1,036,645			185,336
Total assets	$	610,259,495		$	608,662,651
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	1,000,417		$	482,877
Base management fee and incentive fee payable		1,630,588			2,236,187
Due to affiliate		724,894			450,517
Interest payable		2,004,249			1,996,171
Payables from unsettled transactions		62,920,436			49,029,789
Director fees payable		130,000			98,008
Credit facilities payable		74,056,800			82,956,800
Notes payable (net of $2,151,605 and $2,224,132 of unamortized financing costs as of December 31, 2017 and September 30, 2017, respectively)		177,848,395			177,775,868
Total liabilities		320,315,779			315,026,217
Commitments and contingencies
Net assets:
Common stock, $0.01 par value, 150,000,000 shares authorized; 29,466,768 shares issued and outstanding as of December 31, 2017 and September 30, 2017		294,668			294,668
Additional paid-in-capital		373,995,934			373,995,934
Net unrealized depreciation on investments and secured borrowings		(42,911,765	)		(44,653,664	)
Net realized loss on investments		(28,737,328	)		(24,354,622	)
Accumulated overdistributed net investment income		(12,697,793	)		(11,645,882	)
Total net assets (equivalent to $9.84 and $9.97 per common share at December 31, 2017 and September 30, 2017, respectively)		289,943,716			293,636,434
Total liabilities and net assets	$	610,259,495		$	608,662,651

Oaktree Strategic Income Corporation

Consolidated Statements of Operations

(unaudited)

	Three months ended December 31, 2017			Three months ended September 30, 2017			Three months ended December 31, 2016
Interest income:
Control investments	$	1,198,697		$	1,290,389		$	1,395,436
Affiliate investments		—			—			97,936
Non-control/Non-affiliate investments		8,764,475			9,559,293			9,384,005
Interest on cash and cash equivalents		71,095			68,306			30,542
Total interest income		10,034,267			10,917,988			10,907,919
PIK interest income:
Control investments		295,151			223,125			—
Affiliate investments		—			—			48,972
Non-control/Non-affiliate investments		3,263			—			10,432
Total PIK interest income		298,414			223,125			59,404
Fee income:
Affiliate investments		—			—			3,148
Non-control/Non-affiliate investments		398,049			1,022,638			403,296
Total fee income		398,049			1,022,638			406,444
Dividend and other income:
Control investments		—			(343,272	)		187,420
Total dividend and other income		—			(343,272	)		187,420
Total investment income		10,730,730			11,820,479			11,561,187
Expenses:
Base management fee		1,412,172			1,420,696			1,425,216
Part I incentive fee		259,722			815,491			990,377
Professional fees		1,020,183			543,226			258,528
Board of Directors fees		130,000			153,008			123,650
Interest expense		2,764,477			2,645,090			2,456,128
Administrator expense		279,684			205,152			146,459
General and administrative expenses		435,210			516,854			533,011
Total expenses		6,301,448			6,299,517			5,933,369
Fees waived		(117,493	)		—			(6,232	)
Insurance recoveries		—			—			(250,000	)
Net expenses		6,183,955			6,299,517			5,677,137
Net investment income		4,546,775			5,520,962			5,884,050
Unrealized appreciation (depreciation) on investments:
Control investments		(721,175	)		(4,230,858	)		(1,571,194	)
Affiliate investments		75,916			(10,314,600	)		(1,187,404	)
Non-control/Non-affiliate investments		2,387,158			(5,455,743	)		(2,468,842	)
Net unrealized appreciation (depreciation) on investments		1,741,899			(20,001,201	)		(5,227,440	)
Net unrealized appreciation on secured borrowings		—			—			(14,575	)
Realized gain (loss) on investments and secured borrowings:
Affiliate investments		28			—			—
Non-control/Non-affiliate investments		(4,382,734	)		17,060			82,762
Net realized gain (loss) on investments and secured borrowings		(4,382,706	)		17,060			82,762
Net increase (decrease) in net assets resulting from operations	$	1,905,968		$	(14,463,179	)	$	724,797
Net investment income per common share — basic and diluted	$	0.15		$	0.19		$	0.20
Earnings (loss) per common share — basic and diluted	$	0.06		$	(0.49	)	$	0.02
Weighted average common shares outstanding — basic and diluted		29,466,768			29,466,768			29,466,768
Distributions per common share	$	0.19		$	0.19		$	0.23

Conference Call Information

Oaktree Strategic Income will host a conference call to discuss results for its fiscal quarter ended December 31, 2017 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on February 9, 2018. 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 10115430, 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 firm 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 innovative first-lien financing solutions to companies across a wide variety of industries. 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

First Quarter Fiscal Year 2018 Earnings Presentation February 9, 2018 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 are dated as of December 31, 2017.

Q1 2018 Accomplishments / Highlights Monetized $151 million of investments since September 30, 2017 Full repayments of $71 million in 8 issuers at or above par Sales of $80 million in 17 issuers; executed on average within 0.25% of September 30, 2017 fair values Entered into $136 million of new investments Primary focus on credit selection in a low yielding environment First lien originations represented 96% of new investments Completed integration of operational infrastructure into Oaktree, upgrading accounting, valuation, compliance, and information technology processes and systems Remediated material weakness related to internal control over financial reporting Successful transition to Oaktree platform which we believe will lead to long-term cost savings Lowered borrowing costs and enhanced capital structure Refinanced and extended $100 million credit facility with Citibank at attractive pricing and terms

Portfolio Summary as of December 31, 2017 (As % of total portfolio, at fair value; $ in millions) (As % of total portfolio, at fair value) Portfolio Composition Top 10 Industries1 Portfolio Characteristics (at fair value) $541 million invested in 66 companies 100% of debt portfolio consists of floating rate investments 7.1% weighted average yield on debt investments 1 Excludes multi-sector holdings, which includes our investments in the Glick JV. < 1%

+2% Portfolio Summary: Core vs. Non-core Assets $XX.X $XX.X $XX.X ($ in millions, at fair value) $338 million (70% of the total portfolio at fair value) Represents 41 companies Average debt price: 99.4% $153 million of investments that Oaktree originated or recommitted to since becoming investment adviser $39 million of investments in 4 issuers that Strategic Credit funds and accounts also lent to Core Investments1 Non-core Investments1 Performing Investments $140 million (29% of the total portfolio at fair value) Represents 21 companies Non-accrual Investments $6 million (1% of the total portfolio at fair value) Represents 3 companies As of December 31, 2017, unless otherwise noted Note:Numbers are rounded to nearest millions and percentage points. 1Total portfolio excludes investments in Glick JV. +62% -52%

Investment Portfolio Characteristics $140 million – Total non-core performing investments $84 million – Debt investments which we plan to monetize in the near-term Average debt price: 95.0% Average net leverage thru tranche1: 3.7x $55 million – Publicly quoted liquid loans Average debt price: 99.8% < $1 million – Equity investments (As % of non-core performing investment portfolio, at fair value; $ in millions) Investments by Security Type Non-core: Performing Investments As of December 31, 2017 Note:Numbers may not sum due to rounding 1 Excludes an investment in an undrawn revolver. < 1%

Q1 2018 Portfolio Originations $136 million of new commitments 17 new portfolio companies and 3 existing portfolio companies 96% First lien 4% Second lien New portfolio companies spread over 16 industries 6.2% weighted average all-in yield on new investments New Investment Highlights1 (As % of total portfolio, at fair value) New Investment Industry Composition1,2 (As % of total 1Q18 commitment; $ in millions) New Investment Composition1 1New investments exclude drawdowns on existing revolver loan commitments. 2Excludes new investments in existing portfolio companies.

Historical Financial Information ($ in thousands, except per share data) Operating Results Q1’18 Q4’17 Q3’17   Q2’17 Q1’17 Dec-17 Sep-17 Jun-17 Mar-17 Dec-16 Net investment income $4,547 $5,521 $5,930 $5,086 $5,884 Net unrealized appreciation (depreciation) on investments 1,742 (20,001) (5,803) 13,242 (5,242) Net realized gain (loss) on investments (4,383) 17 12 (13,496) 83 Net increase (decrease) in net assets resulting from operations $1,906 ($14,463) $139 $4,832 $725 Net investment income per common share $0.15 $0.19 $0.20 $0.17 $0.20 Net realized and unrealized appreciation (depreciation) per share ($0.09) ($0.68) ($0.20) ($0.01) ($0.18) Earnings (loss) per share – basic $0.06 ($0.49) $0.00 $0.16 $0.02 Earnings (loss) per share – diluted $0.06 ($0.49) 0.00 0.16 0.02 Distributions per common share $0.19 $0.19 $0.19 $0.19 $0.23 Select Balance Sheet and Other Data       Investment Portfolio (at fair value) $541,408 $560,437 $565,178 $545,922 $540,103 Debt Outstanding 251,905 260,733 266,160 275,388 249,815 Total Net Assets 289,944 293,636 313,698 319,158 319,924 Net Asset Value per share $9.84 $9.97 $10.65 $10.83 $10.86 Total Leverage 0.88x 0.90x 0.86x 0.87x 0.79x Weighted Average Yield on Debt Investments1 7.1% 7.5% 7.9% 8.4% 8.5% Cash Component of Weighted Average Yield on Debt Investments 6.9% 7.3% 7.6% 8.1% 8.2% Weighted Average Yield on Total Portfolio Investments2 6.9% 7.4% 8.0% 8.6% 8.8% Note:Results during Q1’18 occurred during management transition from Fifth Street Management LLC to Oaktree Capital Management, L.P., which occurred on October 17, 2017. Results in prior periods occurred during management by Fifth Street Management LLC. 1Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments, including our share of the return on the Glick JV debt investments. 2Annual 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 Glick JV debt investments.

Historical Portfolio Activity  ($ in thousands) As of and For Three Months Ended Q1’18 Q4’17 Q3’17 Q2’17 Q1’17 Dec-17 Sep-17 Jun-17 Mar-17 Dec-16 Investments at Fair Value $541,408 $560,437 $565,178 $545,922 $540,103 Number of Portfolio Companies 66 67 68 61 61 Average Portfolio Company Debt Investment Size $8,300 $8,500 $8,200 $8,600 $8,700 Asset Class:       Senior Secured Debt 89.2% 89.5% 88.3% 87.6% 87.3% Glick JV 10.6% 10.3% 10.9% 11.3% 11.4% Equity 0.2% 0.2% 0.8% 1.1% 1.2% Interest Rate Type:       % Floating Rate 100% 100% 100% 100% 100% Investment Activity at Cost:       New Investment Commitments $136,200 $108,700 $58,000 $82,800 $41,300 New Funded Investment Activity1 $143,900 $108,400 $66,900 $77,600 $37,600 Proceeds from Prepayments and Exits $71,300 $71,300 $36,800 $48,400 $58,300 Net New Investments $65,900 $37,400 $21,200 $34,400 ($17,000) Number of New Investment Commitments in New Portfolio Companies 17 10 11 9 6 Number of New Investment Commitments in Existing Portfolio Companies 3 7 1 2 2 Number of Portfolio Company Exits 8 8 4 7 8 Note:Results during Q1’18 occurred during management transition from Fifth Street Management LLC to Oaktree Capital Management, L.P., which occurred on October 17, 2017. Results in prior periods occurred during management by Fifth Street Management LLC. 1New funded investment activity includes drawdowns on existing revolver commitments.

Capital Structure Optimization As of December 31, 2017 1 Long-Term portfolio leverage may vary depending on market conditions. 2Approximate weighted average spread on debt. 3This credit facility was refinanced into a new facility on January 31, 2018. The new facility has a total capacity of $100 million, bears interest at LIBOR + 170 bps for broadly syndicated loans and LIBOR + 225 bps for middle-market loans, and expires in January 2023. Current leverage of 0.88x with target range of 0.80x to 0.90x debt-to-equity1 Multiple capital sources provides us with flexibility to optimize new investment fundings in order to maintain competitive borrowing costs Funding Sources as of December 31, 2017 Capacity Outstanding Interest Rate Maturity 2015 Debt Securitization $200.0 million $180.0 million LIBOR + 200 bps2 May 2025 Citibank Revolving Credit Facility3 $125.0 million $70.1 million LIBOR + 225-250 bps January 2020 East West Bank Facility $25.0 million $4.0 million LIBOR + 300-375 bps January 2021

Opportunities to Increase Return on Equity Rotation out of broadly syndicated loans priced at LIBOR + 400 or below Redeploy non-income generating investments comprised of equity and loans on non-accrual Modest increase in second lien investments Realization of lower borrowing costs generated from refinancing Citibank facility Benefit from rising interest rates as 100% of investment portfolio is comprised of floating rate securities Operating cost savings from leveraging Oaktree’s platform

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