Company Quick10K Filing
Quick10K
Oaktree Strategic Income
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-Q 2018-12-31 Quarter: 2018-12-31
10-K 2018-09-30 Annual: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-Q 2017-12-31 Quarter: 2017-12-31
10-K 2017-09-30 Annual: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2016-12-31 Quarter: 2016-12-31
10-K 2016-09-30 Annual: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-Q 2015-12-31 Quarter: 2015-12-31
10-K 2015-09-30 Annual: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-Q 2014-12-31 Quarter: 2014-12-31
10-K 2014-09-30 Annual: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-Q 2013-12-31 Quarter: 2013-12-31
8-K 2019-09-30 Enter Agreement, Leave Agreement, Exhibits
8-K 2019-09-20 Enter Agreement
8-K 2019-08-20 Officers, Exhibits
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-06-28 Shareholder Vote
8-K 2019-06-27 Enter Agreement
8-K 2019-05-08 Earnings, Exhibits
8-K 2019-03-07 Shareholder Vote
8-K 2019-02-27 Officers, Exhibits
8-K 2019-02-07 Earnings, Exhibits
8-K 2018-11-29 Earnings, Exhibits
8-K 2018-09-24 Enter Agreement, Leave Agreement, Off-BS Arrangement, Exhibits
8-K 2018-08-24 Other Events
8-K 2018-08-08 Earnings, Exhibits
8-K 2018-07-18 Enter Agreement, Exhibits
8-K 2018-07-10 Shareholder Vote, Other Events, Exhibits
8-K 2018-05-21 Enter Agreement, Exhibits
8-K 2018-05-14 Enter Agreement, Exhibits
8-K 2018-05-03 Officers
8-K 2018-04-06 Shareholder Vote
8-K 2018-01-31 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-01-29 Amend Bylaw, Exhibits
8-K 2018-01-04 Accountant, Exhibits
CBOE CBOE 13,278
PME Pingtan Marine Enterprise 188
SNSR World Surveillance Group 0
ACV Alberto-Culver 0
CMFN CM Finance 0
CSA TH Merger Company 0
FDUS Fidus Investment 0
NMS Neiman Marcus 0
ABDC Alcentra Capital 0
AFC Allied Capital 0
OCSI 2019-06-30
Part I - Financial Information
Item 1. Consolidated Financial Statements.
Note 1. Organization
Note 2. Significant Accounting Policies
Note 3. Portfolio Investments
Note 4. Fee Income
Note 5. Share Data and Net Assets
Note 6. Borrowings
Note 7. Interest and Dividend Income
Note 8. Taxable/Distributable Income and Dividend Distributions
Note 9. Realized Gains or Losses and Net Unrealized Appreciation or Depreciation
Note 10. Concentration of Credit Risks
Note 11. Related Party Transactions
Note 12. Financial Highlights
Note 13. Derivative Instruments
Note 14. Commitments and Contingencies
Note 15. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 ocsi-ex101warehousexamendm.htm
EX-31.1 ocsi-ex311_2019063010xq1.htm
EX-31.2 ocsi-ex312_2019063010xq1.htm
EX-32.1 ocsi-ex321_2019063010xq1.htm
EX-32.2 ocsi-ex322_2019063010xq1.htm

Oaktree Strategic Income Earnings 2019-06-30

OCSI 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 ocsi-063019x10xq.htm 10-Q Document
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
 
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
 
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2019
OR
 
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
 
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
COMMISSION FILE NUMBER: 1-35999
Oaktree Strategic Income Corporation
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
DELAWARE
(State or jurisdiction of
incorporation or organization)
 
61-1713295
(I.R.S. Employer
Identification No.)
 
 
 
333 South Grand Avenue, 28th Floor
Los Angeles, CA
(Address of principal executive office)
 
90071
(Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(213) 830-6300

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
 
OCSI
 
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   þ     NO   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES   ¨   NO   ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  o
 
Accelerated filer  þ
 
Non-accelerated filer  o
 
Smaller reporting company  o
 
 
 
 
 
 
 
Emerging growth company  o

 
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 o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    YES  ¨     NO  þ
The registrant had 29,466,768 shares of common stock outstanding as of August 5, 2019.





OAKTREE STRATEGIC INCOME CORPORATION
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2019


TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 3.
Item 4.
Item 5.








 



PART I — FINANCIAL INFORMATION
Item 1.
Consolidated Financial Statements.

Oaktree Strategic Income Corporation
Consolidated Statements of Assets and Liabilities
 
 
June 30, 2019 (unaudited)
 
September 30, 2018
ASSETS
 
 
Investments at fair value:
 
 
 
 
Control investments (cost June 30, 2019: $73,210,028; cost September 30, 2018: $73,501,970)
 
$
55,634,655

 
$
58,512,170

Non-control/Non-affiliate investments (cost June 30, 2019: $544,954,488; cost September 30, 2018: $499,423,794)
 
532,947,434

 
498,329,658

Total investments at fair value (cost June 30, 2019: $618,164,516; cost September 30, 2018: $572,925,764)
 
588,582,089

 
556,841,828

Cash and cash equivalents
 
4,070,731

 
10,439,023

Restricted cash
 
9,929,895

 
5,992,764

Interest, dividends and fees receivable
 
2,985,869

 
3,139,334

Due from portfolio companies
 
45,327

 
167,946

Receivables from unsettled transactions
 
5,180,121

 
5,143,533

Deferred financing costs
 
2,172,147

 
2,469,675

Derivative asset at fair value
 

 
45,807

Other assets
 
844,178

 
891,960

Total assets
 
$
613,810,357

 
$
585,131,870

LIABILITIES AND NET ASSETS
 
 
Liabilities:
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
1,215,840

 
$
649,781

Base management fee and incentive fee payable
 
1,798,217

 
1,915,682

Due to affiliate
 
1,592,125

 
1,700,952

Interest payable
 
2,978,785

 
1,130,735

Payables from unsettled transactions
 
11,934,950

 
8,932,500

Derivative liability at fair value
 
12,632

 

Credit facilities payable
 
308,256,800

 
275,056,800

Total liabilities
 
327,789,349

 
289,386,450

Commitments and contingencies (Note 14)
 
 
 
 
Net assets:
 
 
 
 
Common stock, $0.01 par value per share, 150,000,000 shares authorized; 29,466,768 shares issued and outstanding as of June 30, 2019 and September 30, 2018
 
294,668

 
294,668

Additional paid-in-capital
 
370,751,389

 
370,751,389

Accumulated overdistributed earnings
 
(85,025,049
)
 
(75,300,637
)
Total net assets (equivalent to $9.71 and $10.04 per common share as of June 30, 2019 and September 30, 2018, respectively) (Note 12)
 
286,021,008

 
295,745,420

Total liabilities and net assets
 
$
613,810,357

 
$
585,131,870

See notes to Consolidated Financial Statements.

1


Oaktree Strategic Income Corporation
Consolidated Statements of Operations
(unaudited)
 
 
Three months ended
June 30, 2019
 
Three months ended
June 30, 2018
 
Nine months ended
June 30, 2019
 
Nine months ended
June 30, 2018
Interest income:
 
 
 
 
 
 
 
 
Control investments
 
$
1,486,149

 
$
1,074,611

 
$
4,444,357

 
$
3,041,858

Non-control/Non-affiliate investments
 
11,984,332

 
9,642,088

 
32,404,578

 
26,696,591

Interest on cash and cash equivalents
 
51,123

 
74,887

 
170,250

 
208,861

Total interest income
 
13,521,604

 
10,791,586

 
37,019,185

 
29,947,310

PIK interest income:
 
 
 
 
 
 
 
 
Control investments
 

 
562,883

 

 
1,632,596

Non-control/Non-affiliate investments
 
2,838

 
7,669

 
16,587

 
18,425

Total PIK interest income
 
2,838

 
570,552

 
16,587

 
1,651,021

Fee income:
 
 
 
 
 
 
 
 
Affiliate investments
 

 
14,822

 

 
14,822

Non-control/Non-affiliate investments
 
284,081

 
283,864

 
513,522

 
1,333,172

Total fee income
 
284,081

 
298,686

 
513,522

 
1,347,994

Total investment income
 
13,808,523

 
11,660,824

 
37,549,294

 
32,946,325

Expenses:
 
 
 
 
 
 
 
 
Base management fee
 
1,497,711

 
1,414,815

 
4,363,871

 
4,220,445

Part I incentive fee
 
1,294,691

 
1,002,145

 
3,245,213

 
1,742,251

Professional fees
 
397,365

 
618,423

 
1,231,578

 
2,383,716

Directors fees
 
105,000

 
114,093

 
315,278

 
374,093

Interest expense
 
3,860,478

 
3,235,080

 
10,854,962

 
8,897,722

Administrator expense
 
224,328

 
326,998

 
890,228

 
888,613

General and administrative expenses
 
325,656

 
225,132

 
941,220

 
936,910

Total expenses
 
7,705,229

 
6,936,686

 
21,842,350

 
19,443,750

Fees waived
 
184,907

 
(347,760
)
 
(291,740
)
 
(705,445
)
Net expenses
 
7,890,136

 
6,588,926

 
21,550,610

 
18,738,305

Net investment income
 
5,918,387

 
5,071,898

 
15,998,684

 
14,208,020

Unrealized appreciation (depreciation):
 
 
 
 
 
 
 
 
Control investments
 
(355,315
)
 
(750,211
)
 
(2,585,573
)
 
(1,531,317
)
Affiliate investments
 

 
16,333,131

 

 
16,543,140

Non-control/Non-affiliate investments
 
(2,132,068
)
 
5,630,684

 
(10,912,918
)
 
11,063,715

Foreign currency forward contract
 
(106,334
)
 

 
(58,439
)
 

Net unrealized appreciation (depreciation)
 
(2,593,717
)
 
21,213,604

 
(13,556,930
)
 
26,075,538

Realized gains (losses):
 
 
 
 
 
 
 
 
Affiliate investments
 

 
(15,914,944
)
 

 
(15,914,916
)
Non-control/Non-affiliate investments
 
(125,517
)
 
(8,645,426
)
 
1,244,015

 
(12,054,903
)
Foreign currency forward contract
 
283,747

 

 
291,867

 

Net realized gains (losses)
 
158,230

 
(24,560,370
)
 
1,535,882

 
(27,969,819
)
Net realized and unrealized gains (losses)
 
(2,435,487
)
 
(3,346,766
)
 
(12,021,048
)
 
(1,894,281
)
Net increase (decrease) in net assets resulting from operations
 
$
3,482,900

 
$
1,725,132

 
$
3,977,636

 
$
12,313,739

Net investment income per common share — basic and diluted
 
$
0.20

 
$
0.17

 
$
0.54

 
$
0.48

Earnings (loss) per common share — basic and diluted (Note 5)
 
$
0.12

 
$
0.06

 
$
0.13

 
$
0.42

Weighted average common shares outstanding — basic and diluted
 
29,466,768

 
29,466,768

 
29,466,768

 
29,466,768

 
See notes to Consolidated Financial Statements.

2


Oaktree Strategic Income Corporation
Consolidated Statements of Changes in Net Assets
(unaudited)
 
 
Three months ended
June 30, 2019
 
Three months ended
June 30, 2018
 
Nine months ended
June 30, 2019
 
Nine months ended
June 30, 2018
Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
5,918,387

 
$
5,071,898

 
$
15,998,684

 
$
14,208,020

Net unrealized appreciation (depreciation)
 
(2,593,717
)
 
21,213,604

 
(13,556,930
)
 
26,075,538

Net realized gains (losses)
 
158,230

 
(24,560,370
)
 
1,535,882

 
(27,969,819
)
Net increase (decrease) in net assets resulting from operations
 
3,482,900

 
1,725,132

 
3,977,636

 
12,313,739

Stockholder transactions:
 
 
 
 
 
 
 
 
Distributions to stockholders
 
(4,567,350
)
 
(4,272,681
)
 
(13,702,048
)
 
(13,996,714
)
Net increase (decrease) in net assets from stockholder transactions
 
(4,567,350
)
 
(4,272,681
)
 
(13,702,048
)
 
(13,996,714
)
Capital share transactions:
 
 
 
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
 
53,088

 
40,134

 
157,742

 
233,065

Repurchases of common stock under dividend reinvestment plan
 
(53,088
)
 
(40,134
)
 
(157,742
)
 
(233,065
)
Net change in net assets from capital share transactions
 

 

 

 

Total increase (decrease) in net assets
 
(1,084,450
)
 
(2,547,549
)
 
(9,724,412
)
 
(1,682,975
)
Net assets at beginning of period
 
287,105,458

 
294,501,008

 
295,745,420

 
293,636,434

Net assets at end of period
 
$
286,021,008

 
$
291,953,459

 
$
286,021,008

 
$
291,953,459

Net asset value per common share
 
$
9.71

 
$
9.91

 
$
9.71

 
$
9.91

Common shares outstanding at end of period
 
29,466,768

 
29,466,768

 
29,466,768

 
29,466,768










See notes to Consolidated Financial Statements.

3

Oaktree Strategic Income Corporation
Consolidated Statements of Cash Flows
(unaudited)


 
 
Nine months ended
June 30, 2019
 
Nine months ended
June 30, 2018
Operating activities:
 
 
 
 
Net increase (decrease) in net assets resulting from operations
 
$
3,977,636

 
$
12,313,739

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
 
Net change in unrealized (appreciation) depreciation
 
13,556,930

 
(26,075,538
)
Net realized (gains) losses
 
(1,535,882
)
 
27,969,819

PIK interest income
 
(16,587
)
 
(1,651,021
)
Deferred fee income
 

 
182,004

Accretion of original issue discount on investments
 
(1,933,124
)
 
(1,545,398
)
Amortization of deferred financing costs
 
422,614

 
594,692

Purchases of investments
 
(198,538,828
)
 
(371,844,651
)
Proceeds from the sales and repayments of investments
 
156,786,130

 
362,607,262

Changes in operating assets and liabilities:
 
 
 
 
(Increase) decrease in interest, dividends and fees receivable
 
153,465

 
335,707

(Increase) decrease in due from portfolio companies
 
122,619

 
277,309

(Increase) decrease in receivables from unsettled transactions
 
(36,588
)
 
(4,115,469
)
(Increase) decrease in other assets
 
47,782

 
(783,540
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
 
450,973

 
384,968

Increase (decrease) in base management fee and incentive fee payable
 
(117,465
)
 
(524,897
)
Increase (decrease) in due to affiliate
 
(108,827
)
 
2,040,933

Increase (decrease) in interest payable
 
1,848,050

 
513,908

Increase (decrease) in payables from unsettled transactions
 
3,002,450

 
(1,662,795
)
Increase (decrease) in director fees payable
 

 
(98,008
)
Net cash provided by (used in) operating activities
 
(21,918,652
)
 
(1,080,976
)
Financing activities:
 
 
 
 
Distributions paid in cash
 
(13,544,306
)
 
(13,763,649
)
Borrowings under credit facilities
 
107,600,000

 
59,500,000

Repayments of borrowings under credit facilities
 
(74,400,000
)
 
(61,900,000
)
Proceeds from issuance of notes payable
 

 
3,000,000

Repayments of notes payable
 

 
(3,000,000
)
Repurchases of common stock under dividend reinvestment plan
 
(157,742
)
 
(233,065
)
Deferred financing costs paid
 
(10,000
)
 
(1,255,975
)
Net cash provided by (used in) financing activities
 
19,487,952

 
(17,652,689
)
Effect of exchange rate changes on foreign currency
 
(461
)
 

Net increase (decrease) in cash and cash equivalents and restricted cash
 
(2,431,161
)
 
(18,733,665
)
Cash and cash equivalents and restricted cash, beginning of period
 
16,431,787

 
43,012,387

Cash and cash equivalents and restricted cash, end of period
 
$
14,000,626

 
$
24,278,722

Supplemental information:
 
 
 
 
Cash paid for interest
 
$
8,584,298

 
$
7,789,122

Non-cash financing activities:
 
 
 
 
Issuance of shares of common stock under dividend reinvestment plan
 
$
157,742

 
$
233,065

Deferred financing costs incurred
 
$
(115,086
)
 
$

 
 
 
 
 
Reconciliation to the Consolidated Statements of Assets and Liabilities
 
June 30, 2019
 
September 30, 2018
Cash and cash equivalents
 
$
4,070,731

 
$
10,439,023

Restricted cash
 
9,929,895

 
5,992,764

Total cash and cash equivalents and restricted cash
 
$
14,000,626

 
$
16,431,787


See notes to Consolidated Financial Statements.

4

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
June 30, 2019
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
Control Investments
 
 
 
 
 
 
 
 
(8)
OCSI Glick JV LLC
 
Multi-sector holdings
 
 
 
 
 
 
(10)(11)
Subordinated Note, LIBOR+6.50% cash due 10/20/2021
8.99%
 
$
66,098,276

 
$
66,098,277

 
$
55,634,655

 
(6)(9)(14)(15)
87.5% equity interest
 
 
 
 
7,111,751

 

 
(9)(12)(14)
 
 
 
 
 
73,210,028

 
55,634,655

 
 
 Total Control Investments (19.5% of net assets)
 
 
 
 
$
73,210,028

 
$
55,634,655

 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments
 
 
 
 
 
 
 
 
(13)
4 Over International, LLC
 
Commercial printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022
8.40%
 
$
5,641,854

 
$
5,575,575

 
$
5,561,739

 
(6)(15)(17)
First Lien Revolver, PRIME+5.00% cash due 6/7/2021
10.50%
 
15,646

 
15,144

 
14,674

 
(6)(14)(15)(17)
 
 
 
 
 
5,590,719

 
5,576,413

 
 
99 Cents Only Stores LLC
 
General merchandise stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022
7.33%
 
1,621,414

 
1,535,224

 
1,493,055

 
(6)(17)
 
 
 
 
 
1,535,224

 
1,493,055

 
 
Access CIG, LLC
 
Diversified support services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025
6.19%
 
5,476,214

 
5,428,704

 
5,457,403

 
(6)
 
 
 
 
 
5,428,704

 
5,457,403

 
 
AI Ladder (Luxembourg) Subco S.a.r.l.
 
Electrical components & equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025
6.83%
 
6,553,951

 
6,383,584

 
6,387,349

 
(6)(9)
 
 
 
 
 
6,383,584

 
6,387,349

 
 
Air Medical Group Holdings, Inc.
 
Healthcare services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025
6.65%
 
2,495,003

 
2,441,678

 
2,352,164

 
(6)(17)
 
 
 
 
 
2,441,678

 
2,352,164

 
 
Airxcel, Inc.
 
Household appliances
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 4/28/2025
6.90%
 
6,930,000

 
6,872,099

 
6,545,974

 
(6)
 
 
 
 
 
6,872,099

 
6,545,974

 
 
AL Midcoast Holdings LLC
 
Oil & gas storage & transportation
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 8/1/2025
7.83%
 
565,725

 
560,068

 
567,846

 
(6)
 
 
 
 
 
560,068

 
567,846

 
 
All Web Leads, Inc.
 
Advertising
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.50% cash due 12/29/2020
10.02%
 
24,276,967

 
24,276,941

 
21,112,392

 
(6)(15)(17)
 
 
 
 
 
24,276,941

 
21,112,392

 
 
Allen Media, LLC
 
Movies & entertainment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 8/30/2023
8.83%
 
4,873,494

 
4,770,940

 
4,861,310

 
(6)(15)(17)
 
 
 
 
 
4,770,940

 
4,861,310

 
 
Ancile Solutions, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021
9.33%
 
8,418,372

 
8,293,303

 
8,275,259

 
(6)(15)(17)
 
 
 
 
 
8,293,303

 
8,275,259

 
 
Applovin Corporation
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.50% cash due 8/15/2025
5.90%
 
4,987,469

 
4,975,000

 
4,987,494

 
(6)
 
 
 
 
 
4,975,000

 
4,987,494

 
 
Apptio, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025
9.67%
 
10,693,944

 
10,493,824

 
10,491,829

 
(6)(15)(17)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025
 
 

 
(12,760
)
 
(13,085
)
 
(6)(14)(15)(17)
 
 
 
 
 
10,481,064

 
10,478,744

 
 

5

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
June 30, 2019
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
Aptos, Inc.
 
Computer & electronics retail
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 7/23/2025
7.90%
 
$
10,945,000

 
$
10,835,550

 
$
10,808,188

 
(6)(15)
 
 
 
 
 
10,835,550

 
10,808,188

 
 
Avaya, Inc.
 
Communications equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 12/15/2024
6.65%
 
9,850,000

 
9,761,245

 
9,443,688

 
(6)(17)
 
 
 
 
 
9,761,245

 
9,443,688

 
 
Ball Metalpack Finco, LLC
 
Metal & glass containers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/31/2025
7.02%
 
8,910,000

 
8,870,935

 
8,820,900

 
(6)(15)
 
 
 
 
 
8,870,935

 
8,820,900

 
 
Blackhawk Network Holdings, Inc.
 
Data processing & outsourced services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026
9.44%
 
4,375,000

 
4,334,097

 
4,377,734

 
(6)(17)
 
 
 
 
 
4,334,097

 
4,377,734

 
 
Boxer Parent Company Inc.
 
Systems software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025
6.58%
 
6,134,175

 
6,065,816

 
5,819,799

 
(6)
 
 
 
 
 
6,065,816

 
5,819,799

 
 
Cadence Aerospace LLC
 
Aerospace & defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 11/14/2023
8.83%
 
13,548,341

 
13,437,066

 
13,223,641

 
(6)(15)(17)
 
 
 
 
 
13,437,066

 
13,223,641

 
 
Canyon Buyer, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 2/15/2025
6.58%
 
8,954,660

 
8,852,236

 
8,954,660

 
(6)
 
 
 
 
 
8,852,236

 
8,954,660

 
 
Cast & Crew Payroll, LLC
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 2/9/2026
6.41%
 
4,987,500

 
4,937,625

 
5,017,425

 
(6)
 
 
 
 
 
4,937,625

 
5,017,425

 
 
Cincinnati Bell Inc.
 
Integrated telecommunication services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 10/2/2024
5.65%
 
4,905,777

 
4,891,048

 
4,885,344

 
(6)(9)(17)
 
 
 
 
 
4,891,048

 
4,885,344

 
 
CircusTrix Holdings LLC
 
Leisure facilities
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 12/16/2021
7.90%
 
8,092,850

 
8,040,956

 
8,029,693

 
(6)(15)(17)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/16/2021
7.90%
 
706,236

 
694,846

 
692,374

 
(6)(14)(15)(17)
 
 
 
 
 
8,735,802

 
8,722,067

 
 
CITGO Petroleum Corp.
 
Oil & gas refining & marketing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/29/2021
7.10%
 
5,968,750

 
5,950,955

 
5,974,957

 
(6)(17)
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024
7.60%
 
6,000,000

 
5,940,000

 
6,013,140

 
(6)(17)
 
 
 
 
 
11,890,955

 
11,988,097

 
 
Curium Bidco S.à r.l.
 
Biotechnology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 6/26/2026
6.45%
 
4,000,000

 
3,970,000

 
3,997,500

 
(6)(9)
 
 
 
 
 
3,970,000

 
3,997,500

 
 
Curvature, Inc.
 
IT consulting & other services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 10/30/2023
7.40%
 
9,750,000

 
9,706,334

 
6,797,115

 
(6)(17)
 
 
 
 
 
9,706,334

 
6,797,115

 
 
DigiCert, Inc.
 
Internet services & infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/31/2024
6.40%
 
10,658,834

 
10,637,120

 
10,635,545

 
(6)(17)
 
 
 
 
 
10,637,120

 
10,635,545

 
 

6

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
June 30, 2019
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
Ellie Mae, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 4/17/2026
6.53%
 
$
6,500,000

 
$
6,467,500

 
$
6,489,145

 
(6)
 
 
 
 
 
6,467,500

 
6,489,145

 
 
Empower Payments Acquisition, Inc.
 
Commercial printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/11/2025
6.65%
 
9,950,000

 
9,927,445

 
9,940,697

 
(6)(15)(17)
 
 
 
 
 
9,927,445

 
9,940,697

 
 
EnergySolutions LLC
 
Environmental & facilities services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 5/9/2025
6.08%
 
3,960,000

 
3,943,300

 
3,801,600

 
(6)(17)
 
 
 
 
 
3,943,300

 
3,801,600

 
 
Eton
 
Research & consulting services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026
9.90%
 
5,000,000

 
4,978,498

 
4,975,000

 
(6)
 
 
 
 
 
4,978,498

 
4,975,000

 
 
Femur Buyer, Inc.
 
Healthcare equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 3/5/2026
6.98%
 
9,000,000

 
8,910,000

 
9,039,375

 
(6)
 
 
 
 
 
8,910,000

 
9,039,375

 
 
Firstlight Holdco, Inc.
 
Alternative carriers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025
5.90%
 
7,177,889

 
7,146,346

 
7,115,083

 
(6)(18)
 
 
 
 
 
7,146,346

 
7,115,083

 
 
Frontier Communications Corporation
 
Integrated telecommunication services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 6/15/2024
6.16%
 
1,492,386

 
1,454,330

 
1,466,896

 
(6)(9)(17)
 
 
 
 
 
1,454,330

 
1,466,896

 
 
Gentiva Health Services, Inc.
 
Healthcare services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 7/2/2025
6.19%
 
3,989,950

 
3,984,962

 
3,998,688

 
(6)
 
 
 
 
 
3,984,962

 
3,998,688

 
 
GKD Index Partners, LLC
 
Specialized finance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 6/29/2023
9.58%
 
8,788,247

 
8,718,028

 
8,647,635

 
(6)(15)(17)
First Lien Revolver, LIBOR+7.25% cash due 6/29/2023
 
 

 
(3,551
)
 
(7,556
)
 
(6)(14)(15)(17)
 
 
 
 
 
8,714,477

 
8,640,079

 
 
GoodRx, Inc.
 
Interactive media & services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+2.75% cash due 10/10/2025
5.14%
 
3,935,963

 
3,927,063

 
3,911,993

 
(6)
 
 
 
 
 
3,927,063

 
3,911,993

 
 
iCIMs, Inc.
 
Application software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024
8.90%
 
5,572,549

 
5,473,762

 
5,472,439

 
(6)(15)(17)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024
 
 
 
 
(5,099
)
 
(5,174
)
 
(6)(14)(15)(17)
 
 
 
 
 
5,468,663

 
5,467,265

 
 
Indivior Finance S.a.r.l.
 
Pharmaceuticals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/19/2022
7.09%
 
5,392,125

 
5,366,173

 
4,868,658

 
(6)(9)(17)
 
 
 
 
 
5,366,173

 
4,868,658

 
 
Internet Pipeline, Inc.
 
Internet services & infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.75% cash due 8/4/2022
7.16%
 
12,881,451

 
12,871,314

 
12,802,828

 
(6)(15)(17)
First Lien Revolver, LIBOR+4.75% cash due 8/4/2021
 
 

 

 
(4,882
)
 
(6)(14)(15)(17)
 
 
 
 
 
12,871,314

 
12,797,946

 
 
Jo-Ann Stores LLC
 
Specialty stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 10/20/2023
7.59%
 
3,797,471

 
3,797,471

 
3,449,376

 
(6)(17)
 
 
 
 
 
3,797,471

 
3,449,376

 
 
Kellermeyer Bergensons Services, LLC
 
Environmental & facilities services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+8.50% cash due 4/29/2022
11.08%
 
280,000

 
280,000

 
282,450

 
(6)(15)(17)
 
 
 
 
 
280,000

 
282,450

 
 

7

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
June 30, 2019
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
KIK Custom Products Inc.
 
Household products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023
6.40%
 
$
5,000,000

 
$
5,027,545

 
$
4,728,125

 
(6)(9)(17)
 
 
 
 
 
5,027,545

 
4,728,125

 
 
Lannett Company, Inc.
 
Pharmaceuticals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.38% cash due 11/25/2022
7.78%
 
7,415,355

 
7,429,287

 
6,970,433

 
(6)(9)(17)
 
 
 
 
 
7,429,287

 
6,970,433

 
 
Lightbox Intermediate, L.P.
 
Real estate services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026
7.45%
 
10,000,000

 
9,852,199

 
9,900,000

 
(6)(15)
 
 
 
 
 
9,852,199

 
9,900,000

 
 
Lytx Holdings, LLC
 
Research & consulting services
 
 
 
 
 
 
 
500 Class B Units
 
 
 
 

 
293,339

 
(15)
 
 
 
 
 

 
293,339

 
 
McAfee, LLC
 
Systems software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 9/30/2024
6.15%
 
8,159,243

 
8,100,505

 
8,160,506

 
(6)(17)
 
 
 
 
 
8,100,505

 
8,160,506

 
 
McDermott Technology (Americas), Inc.
 
Oil & gas equipment & services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 5/12/2025
7.40%
 
1,285,239

 
1,263,664

 
1,266,063

 
(6)(9)(17)
 
 
 
 
 
1,263,664

 
1,266,063

 
 
MHE Intermediate Holdings, LLC
 
Diversified support services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024
7.33%
 
11,567,677

 
11,410,648

 
11,336,324

 
(6)(15)(17)
First Lien Revolver, PRIME+4.00% cash due 3/10/2023
9.50%
 
1,939,016

 
1,710,069

 
1,833,926

 
(6)(14)(15)(17)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/2024
7.33%
 
2,355,478

 
2,382,317

 
2,308,368

 
(6)(15)(17)
 
 
 
 
 
15,503,034

 
15,478,618

 
 
Mindbody, Inc.
 
Internet services & infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 2/15/2025
9.39%
 
9,047,619

 
8,877,894

 
8,866,667

 
(6)(15)(17)
First Lien Revolver, LIBOR+7.00% cash due 2/15/2025
 
 

 
(17,866
)
 
(19,048
)
 
(6)(14)(15)(17)
 
 
 
 
 
8,860,028

 
8,847,619

 
 
Ministry Brands, LLC
 
Application software
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023
11.58%
 
1,568,067

 
1,553,885

 
1,568,022

 
(6)(15)(17)
Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/2023
11.58%
 
431,933

 
428,027

 
431,920

 
(6)(15)(17)
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022
7.33%
 
20,000

 
19,139

 
19,883

 
(6)(14)(15)(17)
 
 
 
 
 
2,001,051

 
2,019,825

 
 
Morphe LLC
 
Personal products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 2/10/2023
8.33%
 
11,250,000

 
11,167,132

 
11,250,000

 
(6)(15)(17)
 
 
 
 
 
11,167,132

 
11,250,000

 
 
New Trident Holdcorp, Inc.
 
Healthcare services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+9.50% cash due 7/31/2020
 
 
1,000,000

 
795,624

 

 
(6)(15)(16)(17)
 
 
 
 
 
795,624

 

 
 
OCI Beaumont LLC
 
Commodity chemicals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 3/13/2025
6.33%
 
4,937,500

 
4,932,429

 
4,943,672

 
(6)(9)
 
 
 
 
 
4,932,429

 
4,943,672

 
 
Onvoy, LLC
 
Integrated telecommunication services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024
6.83%
 
3,870,505

 
3,857,677

 
3,222,195

 
(6)(17)
 
 
 
 
 
3,857,677

 
3,222,195

 
 
Peraton Corp.
 
Aerospace & defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.25% cash due 4/29/2024
7.66%
 
6,370,000

 
6,348,073

 
6,330,188

 
(6)(17)
 
 
 
 
 
6,348,073

 
6,330,188

 
 
ProFrac Services, LLC
 
Industrial machinery
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.25% cash due 9/15/2023
8.66%
 
9,394,444

 
9,315,151

 
9,206,556

 
(6)(15)(17)
 
 
 
 
 
9,315,151

 
9,206,556

 
 

8

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
June 30, 2019
(unaudited)




Portfolio Company/Type of Investment (1)(2)(3)(4)(5)
 Cash Interest Rate (6)
Industry
Principal (7)

 
Cost
 
Fair Value
 
Notes
PSI Services LLC
 
Human resource & employment services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 1/20/2023
7.40%
 
$
6,618,505

 
$
6,558,042

 
$
6,570,937

 
(6)(15)(17)
 
 
 
 
 
6,558,042

 
6,570,937

 
 
Recorded Books Inc.
 
Publishing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 8/29/2025
6.83%
 
10,421,250

 
10,317,038

 
10,453,869

 
(6)
 
 
 
 
 
10,317,038

 
10,453,869

 
 
Salient CRGT, Inc.
 
Aerospace & defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 2/28/2022
8.40%
 
5,772,619

 
5,711,322

 
5,541,715

 
(6)(15)(17)
 
 
 
 
 
5,711,322

 
5,541,715

 
 
Signify Health, LLC
 
Healthcare services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024
6.83%
 
10,862,500

 
10,775,485

 
10,855,711

 
(6)(17)
 
 
 
 
 
10,775,485

 
10,855,711

 
 
Sirva Worldwide, Inc.
 
Diversified support services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025
7.90%
 
7,900,000

 
7,781,500

 
7,687,727

 
(6)
 
 
 
 
 
7,781,500

 
7,687,727

 
 
Sophia, L.P.
 
Systems software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 9/30/2022
5.58%
 
1,402,703

 
1,399,890

 
1,400,423

 
(6)(17)
 
 
 
 
 
1,399,890

 
1,400,423

 
 
StandardAero Aviation Holdings Inc.
 
Aerospace & defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 4/6/2026
6.33%
 
2,000,000

 
1,997,514

 
2,011,070

 
(6)
 
 
 
 
 
1,997,514