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 December 31, 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 Stock Market LLC
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 February 4, 2020.







OAKTREE STRATEGIC INCOME CORPORATION
FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 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
 
 
December 31, 2019 (unaudited)
 
September 30, 2019
ASSETS
 
 
Investments at fair value:
 
 
 
 
Control investments (cost December 31, 2019: $73,168,024; cost September 30, 2019: $73,189,664)
 
$
54,169,710

 
$
54,326,418

Non-control/Non-affiliate investments (cost December 31, 2019: $538,934,038; cost September 30, 2019: $553,679,070)
 
530,284,037

 
542,778,029

Total investments at fair value (cost December 31, 2019: $612,102,062; cost September 30, 2019: $626,868,734)
 
584,453,747

 
597,104,447

Cash and cash equivalents
 
9,525,141

 
5,646,899

Restricted cash
 
8,469,933

 
8,404,733

Interest, dividends and fees receivable
 
3,031,841

 
3,813,730

Due from portfolio companies
 
806,914

 
350,597

Receivables from unsettled transactions
 
4,105,042

 
5,091,671

Deferred financing costs
 
1,923,373

 
2,139,299

Derivative asset at fair value
 

 
20,876

Other assets
 
817,916

 
761,462

Total assets
 
$
613,133,907

 
$
623,333,714

LIABILITIES AND NET ASSETS
 
 
Liabilities:
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
932,315

 
$
901,410

Base management fee and incentive fee payable
 
1,255,344

 
1,368,431

Due to affiliate
 
1,404,411

 
1,457,007

Interest payable
 
2,545,744

 
2,750,587

Payables from unsettled transactions
 
14,653,671

 
37,724,473

Derivative liability at fair value
 
168,712

 

Director fees payable
 

 
25,000

Credit facilities payable
 
306,156,800

 
294,656,800

Total liabilities
 
327,116,997

 
338,883,708

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 December 31, 2019 and September 30, 2019
 
294,668

 
294,668

Additional paid-in-capital
 
369,199,332

 
369,199,332

Accumulated overdistributed earnings
 
(83,477,090
)
 
(85,043,994
)
Total net assets (equivalent to $9.71 and $9.65 per common share as of December 31, 2019 and September 30, 2019, respectively) (Note 12)
 
286,016,910

 
284,450,006

Total liabilities and net assets
 
$
613,133,907

 
$
623,333,714

See notes to Consolidated Financial Statements.

1


Oaktree Strategic Income Corporation
Consolidated Statements of Operations
(unaudited)
 
 
Three months ended December 31, 2019
 
Three months ended December 31, 2018
Interest income:
 
 
 
 
Control investments
 
$
1,436,726

 
$
1,485,423

Non-control/Non-affiliate investments
 
9,744,449

 
9,651,149

Interest on cash and cash equivalents
 
30,710

 
66,995

Total interest income
 
11,211,885

 
11,203,567

PIK interest income:
 
 
 
 
Non-control/Non-affiliate investments
 
3,563

 
7,745

Total PIK interest income
 
3,563

 
7,745

Fee income:
 
 
 
 
Non-control/Non-affiliate investments
 
387,665

 
47,635

Total fee income
 
387,665

 
47,635

Total investment income
 
11,603,113

 
11,258,947

Expenses:
 
 
 
 
Base management fee
 
1,505,526

 
1,414,767

Part I incentive fee
 
992,138

 
854,378

Professional fees
 
373,186

 
458,612

Directors fees
 
105,000

 
105,000

Interest expense
 
3,426,891

 
3,222,954

Administrator expense
 
249,914

 
434,867

General and administrative expenses
 
273,479

 
332,226

Total expenses
 
6,926,134

 
6,822,804

Fees waived
 
(50,601
)
 
(427,394
)
Net expenses
 
6,875,533

 
6,395,410

Net investment income
 
4,727,580

 
4,863,537

Unrealized appreciation (depreciation):
 
 
 
 
Control investments
 
(135,068
)
 
(3,915,243
)
Non-control/Non-affiliate investments
 
2,251,040

 
(15,770,813
)
Foreign currency forward contract
 
(189,588
)
 
(74,568
)
Net unrealized appreciation (depreciation)
 
1,926,384

 
(19,760,624
)
Realized gains (losses):
 
 
 
 
Non-control/Non-affiliate investments
 
(277,225
)
 
1,447,306

Foreign currency forward contract
 
(242,485
)
 
249,090

Net realized gains (losses)
 
(519,710
)
 
1,696,396

Net realized and unrealized gains (losses)
 
1,406,674

 
(18,064,228
)
Net increase (decrease) in net assets resulting from operations
 
$
6,134,254

 
$
(13,200,691
)
Net investment income per common share — basic and diluted
 
$
0.16

 
$
0.17

Earnings (loss) per common share — basic and diluted (Note 5)
 
$
0.21

 
$
(0.45
)
Weighted average common shares outstanding — basic and diluted
 
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
December 31, 2019
 
Three months ended
December 31, 2018
Operations:
 
 
 
 
Net investment income
 
$
4,727,580

 
$
4,863,537

Net unrealized appreciation (depreciation)
 
1,926,384

 
(19,760,624
)
Net realized gains (losses)
 
(519,710
)
 
1,696,396

Net increase (decrease) in net assets resulting from operations
 
6,134,254

 
(13,200,691
)
Stockholder transactions:
 
 
 
 
Distributions to stockholders
 
(4,567,350
)
 
(4,567,349
)
Net increase (decrease) in net assets from stockholder transactions
 
(4,567,350
)
 
(4,567,349
)
Capital share transactions:
 
 
 
 
Issuance of common stock under dividend reinvestment plan
 
64,334

 
54,111

Repurchases of common stock under dividend reinvestment plan
 
(64,334
)
 
(54,111
)
Net change in net assets from capital share transactions
 

 

Total increase (decrease) in net assets
 
1,566,904

 
(17,768,040
)
Net assets at beginning of period
 
284,450,006

 
295,745,420

Net assets at end of period
 
$
286,016,910

 
$
277,977,380

Net asset value per common share
 
$
9.71

 
$
9.43

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

 
29,466,768


See notes to Consolidated Financial Statements.

3

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

 
 
Three months ended
December 31, 2019
 
Three months ended
December 31, 2018
Operating activities:
 
 
 
 
Net increase (decrease) in net assets resulting from operations
 
$
6,134,254

 
$
(13,200,691
)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
 
Net unrealized (appreciation) depreciation
 
(1,926,384
)
 
19,760,624

Net realized (gains) losses
 
519,710

 
(1,696,396
)
PIK interest income
 
(3,563
)
 
(7,745
)
Accretion of original issue discount on investments
 
(305,960
)
 
(567,298
)
Amortization of deferred financing costs
 
215,926

 
139,778

Purchases of investments
 
(34,025,019
)
 
(87,049,003
)
Proceeds from the sales and repayments of investments
 
48,581,768

 
73,124,794

Changes in operating assets and liabilities:
 
 
 
 
(Increase) decrease in interest, dividends and fees receivable
 
781,889

 
64,978

(Increase) decrease in due from portfolio companies
 
(456,317
)
 
117,120

(Increase) decrease in receivables from unsettled transactions
 
986,629

 
2,204,251

(Increase) decrease in other assets
 
(56,454
)
 
(117,649
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
 
30,905

 
(97,069
)
Increase (decrease) in base management fee and incentive fee payable
 
(113,087
)
 
(776,415
)
Increase (decrease) in due to affiliate
 
(52,596
)
 
1,154,755

Increase (decrease) in interest payable
 
(204,843
)
 
1,418,694

Increase (decrease) in payables from unsettled transactions
 
(23,070,802
)
 
21,486,642

Increase (decrease) in director fees payable
 
(25,000
)
 
50,000

Net cash provided by (used in) operating activities
 
(2,988,944
)
 
16,009,370

Financing activities:
 
 
 
 
Distributions paid in cash
 
(4,503,016
)
 
(4,513,238
)
Borrowings under credit facilities
 
23,000,000

 
30,000,000

Repayments of borrowings under credit facilities
 
(11,500,000
)
 
(42,900,000
)
Repurchases of common stock under dividend reinvestment plan
 
(64,334
)
 
(54,111
)
Net cash provided by (used in) financing activities
 
6,932,650

 
(17,467,349
)
Effect of exchange rate changes on foreign currency
 
(264
)
 

Net increase (decrease) in cash and cash equivalents and restricted cash
 
3,943,442

 
(1,457,979
)
Cash and cash equivalents and restricted cash, beginning of period
 
14,051,632

 
16,431,787

Cash and cash equivalents and restricted cash, end of period
 
$
17,995,074

 
$
14,973,808

Supplemental information:
 
 
 
 
Cash paid for interest
 
$
3,415,808

 
$
1,664,482

Non-cash financing activities:
 
 
 
 
Issuance of shares of common stock under dividend reinvestment plan
 
$
64,334

 
$
54,111

 
 
 
 
 
Reconciliation to the Consolidated Statements of Assets and Liabilities
 
December 31, 2019
 
September 30, 2019
Cash and cash equivalents
 
$
9,525,141

 
$
5,646,899

Restricted cash
 
8,469,933

 
8,404,733

Total cash and cash equivalents and restricted cash
 
$
17,995,074

 
$
14,051,632

See notes to Consolidated Financial Statements.

4

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 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
8.51%
 
$
66,056,272

 
$
66,056,273

 
$
54,169,710

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

 

 
(9)(12)(14)
 
 
 
 
 
73,168,024

 
54,169,710

 
 
 Total Control Investments (18.9% of net assets)
 
 
 
 
$
73,168,024

 
$
54,169,710

 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments
 
 
 
 
 
 
 
 
(13)
4 Over International, LLC
 
Commercial Printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022
7.80%
 
$
5,582,267

 
$
5,518,401

 
$
5,476,761

 
(6)(15)
First Lien Revolver, PRIME+5.00% cash due 6/7/2021
9.75%
 
11,735

 
11,233

 
10,441

 
(6)(14)(15)
 
 
 
 
 
5,529,634

 
5,487,202

 
 
99 Cents Only Stores LLC
 
General Merchandise Stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022
6.94%
 
1,626,705

 
1,558,386

 
1,378,632

 
(6)
 
 
 
 
 
1,558,386

 
1,378,632

 
 
Access CIG, LLC
 
Diversified Support Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025
5.44%
 
5,448,507

 
5,405,467

 
5,453,056

 
(6)
 
 
 
 
 
5,405,467

 
5,453,056

 
 
AI Ladder (Luxembourg) Subco S.a.r.l.
 
Electrical Components & Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025
6.44%
 
6,497,218

 
6,342,528

 
6,505,339

 
(6)(9)
 
 
 
 
 
6,342,528

 
6,505,339

 
 
Air Medical Group Holdings, Inc.
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025
6.05%
 
2,482,338

 
2,433,996

 
2,414,073

 
(6)
 
 
 
 
 
2,433,996

 
2,414,073

 
 
Airxcel, Inc.
 
Household Appliances
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 4/28/2025
6.30%
 
6,895,000

 
6,842,400

 
6,774,338

 
(6)(15)
 
 
 
 
 
6,842,400

 
6,774,338

 
 
Aldevron, L.L.C.
 
Biotechnology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026
6.19%
 
4,000,000

 
3,960,000

 
4,050,000

 
(6)
 
 
 
 
 
3,960,000

 
4,050,000

 
 
All Web Leads, Inc.
 
Advertising
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.50% cash due 12/29/2020
9.41%
 
23,928,327

 
23,928,301

 
20,809,198

 
(6)(15)
 
 
 
 
 
23,928,301

 
20,809,198

 
 
Allen Media, LLC
 
Movies & Entertainment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 8/30/2023
8.44%
 
4,745,482

 
4,657,768

 
4,626,845

 
(6)(15)
 
 
 
 
 
4,657,768

 
4,626,845

 
 
Ancile Solutions, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021
8.94%
 
8,181,235

 
8,076,016

 
8,033,972

 
(6)(15)
 
 
 
 
 
8,076,016

 
8,033,972

 
 
Apptio, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025
8.96%
 
10,693,944

 
10,512,153

 
10,499,314

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

 
(11,597
)
 
(12,600
)
 
(6)(14)(15)
 
 
 
 
 
10,500,556

 
10,486,714

 
 
Aptos, Inc.
 
Computer & Electronics Retail
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 7/23/2025
7.70%
 
10,890,000

 
10,781,100

 
10,790,193

 
(6)(15)
 
 
 
 
 
10,781,100

 
10,790,193

 
 

5

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 2019
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
Asurion, LLC
 
Property & Casualty Insurance
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+6.50% cash due 8/4/2025
8.30%
 
$
2,000,000

 
$
2,004,947

 
$
2,029,250

 
(6)
 
 
 
 
 
2,004,947

 
2,029,250

 
 
Avaya, Inc.
 
Communications Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 12/15/2024
5.99%
 
8,970,299

 
8,896,969

 
8,829,017

 
(6)
 
 
 
 
 
8,896,969

 
8,829,017

 
 
Ball Metalpack Finco, LLC
 
Metal & Glass Containers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/31/2025
6.41%
 
8,865,000

 
8,829,369

 
7,867,688

 
(6)(15)
 
 
 
 
 
8,829,369

 
7,867,688

 
 
Blackhawk Network Holdings, Inc.
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026
8.75%
 
4,375,000

 
4,337,075

 
4,375,000

 
(6)
 
 
 
 
 
4,337,075

 
4,375,000

 
 
Boxer Parent Company Inc.
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025
6.05%
 
6,103,350

 
6,036,624

 
6,048,572

 
(6)
 
 
 
 
 
6,036,624

 
6,048,572

 
 
Cadence Aerospace, LLC
 
Aerospace & Defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 11/14/2023
8.43%
 
13,479,685

 
13,376,502

 
13,368,760

 
(6)(15)
 
 
 
 
 
13,376,502

 
13,368,760

 
 
Canyon Buyer, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 2/15/2025
6.20%
 
5,916,934

 
5,855,345

 
5,939,123

 
(6)
 
 
 
 
 
5,855,345

 
5,939,123

 
 
Cast & Crew Payroll, LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 2/9/2026
5.80%
 
4,962,500

 
4,912,874

 
4,993,516

 
(6)
 
 
 
 
 
4,912,874

 
4,993,516

 
 
Chief Power Finance II, LLC
 
Independent Power Producers & Energy Traders
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022
8.36%
 
3,456,250

 
3,374,478

 
3,369,844

 
(6)(15)
 
 
 
 
 
3,374,478

 
3,369,844

 
 
Cincinnati Bell Inc.
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 10/2/2024
5.05%
 
4,881,063

 
4,867,820

 
4,916,670

 
(6)(9)
 
 
 
 
 
4,867,820

 
4,916,670

 
 
CircusTrix Holdings LLC
 
Leisure Facilities
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 12/16/2021
7.30%
 
8,051,608

 
8,010,603

 
7,997,767

 
(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/16/2021
7.30%
 
969,515

 
960,490

 
957,665

 
(6)(14)(15)
 
 
 
 
 
8,971,093

 
8,955,432

 
 
CITGO Petroleum Corp.
 
Oil & Gas Refining & Marketing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/29/2021
6.44%
 
5,921,875

 
5,908,522

 
5,953,350

 
(6)
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024
6.94%
 
5,955,000

 
5,895,451

 
5,992,219

 
(6)
 
 
 
 
 
11,803,973

 
11,945,569

 
 
Connect U.S. Finco LLC
 
Alternative Carriers
 
 
 
 
 
 
 
First Lien Delayed Draw Term Loan, LIBOR+4.50% cash due 12/11/2026
6.29%
 
4,089,457

 
3,890,477

 
4,163,657

 
(6)(9)(14)
 
 
 
 
 
3,890,477

 
4,163,657

 
 
CPI Holdco, LLC
 
Health Care Supplies
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 11/4/2026
6.19%
 
5,000,000

 
4,975,000

 
5,021,875

 
(6)
 
 
 
 
 
4,975,000

 
5,021,875

 
 

6

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 2019
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
Curium Bidco S.à.r.l.
 
Biotechnology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 7/9/2026
5.94%
 
$
3,990,000

 
$
3,960,075

 
$
4,027,426

 
(6)(9)
 
 
 
 
 
3,960,075

 
4,027,426

 
 
Curvature, Inc.
 
IT Consulting & Other Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 10/30/2023
6.80%
 
9,700,000

 
9,660,669

 
7,619,350

 
(6)
 
 
 
 
 
9,660,669

 
7,619,350

 
 
Dcert Buyer, Inc.
 
Internet Services & Infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/16/2026
5.80%
 
9,000,000

 
8,977,500

 
9,045,000

 
(6)
 
 
 
 
 
8,977,500

 
9,045,000

 
 
Ellie Mae, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 4/17/2026
5.94%
 
7,481,250

 
7,441,350

 
7,542,073

 
(6)
 
 
 
 
 
7,441,350

 
7,542,073

 
 
EnergySolutions LLC
 
Environmental & Facilities Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 5/9/2025
5.69%
 
3,940,000

 
3,924,821

 
3,734,391

 
(6)
 
 
 
 
 
3,924,821

 
3,734,391

 
 
eResearch Technology, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 11/20/2026
6.39%
 
4,000,000

 
3,960,000

 
4,037,500

 
(6)
 
 
 
 
 
3,960,000

 
4,037,500

 
 
Femur Buyer, Inc.
 
Health Care Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 3/5/2026
6.44%
 
8,955,000

 
8,865,450

 
8,753,513

 
(6)
 
 
 
 
 
8,865,450

 
8,753,513

 
 
Firstlight Holdco, Inc.
 
Alternative Carriers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025
5.30%
 
7,138,554

 
7,109,804

 
7,156,401

 
(6)
 
 
 
 
 
7,109,804

 
7,156,401

 
 
Frontier Communications Corporation
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 6/15/2024
5.55%
 
1,484,772

 
1,446,910

 
1,495,187

 
(6)(9)
 
 
 
 
 
1,446,910

 
1,495,187

 
 
GI Chill Acquisition LLC
 
Managed Health Care
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025
5.94%
 
2,992,424

 
2,969,981

 
2,973,871

 
(6)(15)
 
 
 
 
 
2,969,981

 
2,973,871

 
 
GKD Index Partners, LLC
 
Specialized Finance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023
8.94%
 
8,496,871

 
8,437,588

 
8,377,914

 
(6)(15)
First Lien Revolver, LIBOR+7.00% cash due 6/29/2023
8.95%
 
222,222

 
219,121

 
215,556

 
(6)(14)(15)
 
 
 
 
 
8,656,709

 
8,593,470

 
 
GoodRx, Inc.
 
Interactive Media & Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+2.75% cash due 10/10/2025
4.55%
 
3,915,963

 
3,907,822

 
3,946,958

 
(6)
 
 
 
 
 
3,907,822

 
3,946,958

 
 
Guidehouse LLP
 
Research & Consulting Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025
6.30%
 
2,493,671

 
2,468,734

 
2,479,644

 
(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026
9.80%
 
5,000,000

 
4,980,091

 
4,925,000

 
(6)
 
 
 
 
 
7,448,825

 
7,404,644

 
 
Helios Software Holdings, Inc.
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/24/2025
6.18%
 
4,000,000

 
3,960,000

 
3,978,760

 
(6)
 
 
 
 
 
3,960,000

 
3,978,760

 
 
iCIMs, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024
8.29%
 
5,572,549

 
5,483,381

 
5,482,508

 
(6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024
 
 

 
(4,602
)
 
(4,752
)
 
(6)(14)(15)
 
 
 
 
 
5,478,779

 
5,477,756

 
 

7

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 2019
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
Indivior Finance S.a.r.l.
 
Pharmaceuticals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/19/2022
6.43%
 
$
5,345,745

 
$
5,323,772

 
$
4,953,715

 
(6)(9)
 
 
 
 
 
5,323,772

 
4,953,715

 
 
KIK Custom Products Inc.
 
Household Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023
5.79%
 
5,000,000

 
5,023,942

 
4,922,500

 
(6)(9)
 
 
 
 
 
5,023,942

 
4,922,500

 
 
Lannett Company, Inc.
 
Pharmaceuticals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.38% cash due 11/25/2022
7.17%
 
7,150,600

 
7,162,035

 
7,061,217

 
(6)(9)
 
 
 
 
 
7,162,035

 
7,061,217

 
 
Lightbox Intermediate, L.P.
 
Real Estate Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026
6.74%
 
9,950,000

 
9,813,804

 
9,825,625

 
(6)(15)
 
 
 
 
 
9,813,804

 
9,825,625

 
 
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
5.55%
 
6,123,189

 
6,083,958

 
6,157,632

 
(6)
 
 
 
 
 
6,083,958

 
6,157,632

 
 
MHE Intermediate Holdings, LLC
 
Diversified Support Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024
6.94%
 
11,508,508

 
11,368,941

 
11,278,337

 
(6)(15)
First Lien Revolver, PRIME+4.00% cash due 3/10/2023
8.75%
 
788,177

 
559,231

 
683,087

 
(6)(14)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/2024
6.99%
 
2,343,482

 
2,370,184

 
2,296,612

 
(6)(15)
 
 
 
 
 
14,298,356

 
14,258,036

 
 
Mindbody, Inc.
 
Internet Services & Infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 2/14/2025
8.79%
 
9,047,619

 
8,893,178

 
8,884,762

 
(6)(15)
First Lien Revolver, LIBOR+7.00% cash due 2/14/2025
 
 

 
(16,257
)
 
(17,143
)
 
(6)(14)(15)
 
 
 
 
 
8,876,921

 
8,867,619

 
 
Ministry Brands, LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022
6.95%
 
20,000

 
19,139

 
20,000

 
(6)(14)(15)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023
11.08%
 
1,568,067

 
1,555,719

 
1,568,067

 
(6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/2023
11.08%
 
431,933

 
428,532

 
431,933

 
(6)(15)
 
 
 
 
 
2,003,390

 
2,020,000

 
 
OEConnection LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026
5.80%
 
7,744,659

 
7,705,936

 
7,793,063

 
(6)
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026
 
 

 
(3,559
)
 
4,600

 
(6)(14)
 
 
 
 
 
7,702,377

 
7,797,663

 
 
Onvoy, LLC
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024
6.30%
 
3,850,707

 
3,839,355

 
3,494,517

 
(6)
 
 
 
 
 
3,839,355

 
3,494,517

 
 
PaySimple, Inc.
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025
7.30%
 
7,531,125

 
7,388,663

 
7,493,469

 
(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/23/2025
7.28%
 
709,629

 
663,284

 
697,379

 
(6)(14)(15)
 
 
 
 
 
8,051,947

 
8,190,848

 
 
Peraton Corp.
 
Aerospace & Defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.25% cash due 4/29/2024
7.05%
 
6,337,500

 
6,317,993

 
6,337,500

 
(6)
 
 
 
 
 
6,317,993

 
6,337,500

 
 

8

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 2019
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
ProFrac Services, LLC
 
Industrial Machinery
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.25% cash due 9/15/2023
8.14%
 
$
8,838,889

 
$
8,773,265

 
$
8,617,917

 
(6)(15)
 
 
 
 
 
8,773,265

 
8,617,917

 
 
Project Boost Purchaser, LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.50% cash due 6/1/2026
5.30%
 
2,793,000

 
2,765,070

 
2,810,023

 
(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027
9.80%
 
1,500,000

 
1,500,000

 
1,496,250

 
(6)(15)
 
 
 
 
 
4,265,070

 
4,306,273

 
 
Recorded Books Inc.
 
Publishing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 8/29/2025
6.30%
 
10,368,750

 
10,265,063

 
10,433,555

 
(6)
 
 
 
 
 
10,265,063

 
10,433,555

 
 
RevSpring, Inc.
 
Commercial Printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/11/2025
5.94%
 
9,900,000

 
9,879,368

 
9,912,375

 
(6)(15)
 
 
 
 
 
9,879,368

 
9,912,375

 
 
Sabert Corporation
 
Metal & Glass Containers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026
6.25%
 
2,900,000

 
2,871,000

 
2,930,218

 
(6)
 
 
 
 
 
2,871,000

 
2,930,218

 
 
Salient CRGT, Inc.
 
Aerospace & Defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022
8.29%
 
5,691,369

 
5,642,541

 
5,406,801

 
(6)(15)
 
 
 
 
 
5,642,541

 
5,406,801

 
 
Signify Health, LLC
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024
6.44%
 
10,807,500

 
10,728,925

 
10,793,991

 
(6)
 
 
 
 
 
10,728,925

 
10,793,991

 
 
Sirva Worldwide, Inc.
 
Diversified Support Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025
7.44%
 
7,800,000

 
7,683,000

 
7,722,000

 
(6)
 
 
 
 
 
7,683,000

 
7,722,000

 
 
Sophia, L.P.
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 9/30/2022
5.19%
 
1,333,213

 
1,330,957

 
1,337,979

 
(6)
 
 
 
 
 
1,330,957

 
1,337,979

 
 
Sunshine Luxembourg VII SARL
 
Personal Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/1/2026
6.19%
 
3,000,000

 
2,985,000

 
3,032,400

 
(6)(9)
 
 
 
 
 
2,985,000

 
3,032,400

 
 
Supermoose Borrower, LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025
5.55%
 
997,481

 
919,807

 
955,268

 
(6)
 
 
 
 
 
919,807

 
955,268

 
 
The Dun & Bradstreet Corporation
 
Research & Consulting Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 2/6/2026
6.79%
 
5,000,000

 
4,912,011

 
5,050,000

 
(6)
 
 
 
 
 
4,912,011

 
5,050,000

 
 
Thunder Finco (US), LLC
 
Movies & Entertainment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 11/26/2026
6.04%
 
6,000,000

 
5,940,000

 
6,000,000

 
(6)(9)(15)
 
 
 
 
 
5,940,000

 
6,000,000

 
 
TIBCO Software Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 6/30/2026
5.71%
 
7,969,821

 
7,959,343

 
8,015,926

 
(6)
 
 
 
 
 
7,959,343

 
8,015,926

 
 
Trident Topco LLC
 
Health Care Services
 
 
 
 
 
 
 
58.99 Class A Warrants (exercise price $156.164) expiration date 3/20/2021
 
 
 
 

 

 
(15)
 
 
 
 
 

 

 
 
Truck Hero, Inc.
 
Auto Parts & Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 4/22/2024
5.55%
 
5,725,200

 
5,734,522

 
5,596,383

 
(6)
 
 
 
 
 
5,734,522

 
5,596,383

 
 
Uber Technologies, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 4/4/2025
5.74%
 
2,233,654

 
2,219,490

 
2,236,044

 
(6)
 
 
 
 
 
2,219,490

 
2,236,044

 
 

9

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
December 31, 2019
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
UFC Holdings, LLC
 
Movies & Entertainment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 4/29/2026
5.05%
 
$
4,931,316

 
$
4,929,121

 
$
4,970,692

 
(6)
 
 
 
 
 
4,929,121

 
4,970,692

 
 
Uniti Group LP
 
Specialized REITs
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 10/24/2022
6.80%
 
8,825,736

 
8,636,987

 
8,689,687

 
(6)(9)
 
 
 
 
 
8,636,987

 
8,689,687

 
 
UOS, LLC
 
Trading Companies & Distributors
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 4/18/2023
7.30%
 
8,797,116

 
8,912,212

 
8,885,087

 
(6)
 
 
 
 
 
8,912,212

 
8,885,087

 
 
Veritas US Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 1/27/2023
6.30%
 
12,033,285

 
12,111,272

 
11,618,979

 
(6)
 
 
 
 
 
12,111,272

 
11,618,979

 
 
Verra Mobility, Corp.
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 2/28/2025
5.55%
 
4,937,186

 
4,947,408

 
4,976,288

 
(6)(9)
 
 
 
 
 
4,947,408

 
4,976,288

 
 
Verscend Holding Corp.
 
Health Care Technology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 8/27/2025
6.30%
 
10,947,425

 
10,870,469

 
11,047,758

 
(6)
 
 
 
 
 
10,870,469

 
11,047,758

 
 
WeddingWire, Inc.
 
Interactive Media & Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/19/2025
6.30%
 
7,920,000

 
7,885,923

 
7,969,500

 
(6)
 
 
 
 
 
7,885,923

 
7,969,500

 
 
Windstream Services, LLC
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, PRIME+5.00% cash due 3/29/2021
9.75%
 
2,775,040

 
2,719,394

 
2,666,244

 
(6)(9)
 
 
 
 
 
2,719,394

 
2,666,244

 
 
Woodford Express LLC
 
Oil & Gas Exploration & Production
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 1/27/2025
6.80%
 
14,736,970

 
14,629,686

 
12,939,059

 
(6)
 
 
 
 
 
14,629,686