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 March 31, 2020
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 May 5, 2020.







OAKTREE STRATEGIC INCOME CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2020


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
 
 
March 31, 2020 (unaudited)
 
September 30, 2019
ASSETS
 
 
Investments at fair value:
 
 
 
 
Control investments (cost March 31, 2020: $73,157,303; cost September 30, 2019: $73,189,664)
 
$
37,833,930

 
$
54,326,418

Non-control/Non-affiliate investments (cost March 31, 2020: $546,774,334; cost September 30, 2019: $553,679,070)
 
486,545,381

 
542,778,029

Total investments at fair value (cost March 31, 2020: $619,931,637; cost September 30, 2019: $626,868,734)
 
524,379,311

 
597,104,447

Cash and cash equivalents
 
21,931,375

 
5,646,899

Restricted cash
 
9,321,466

 
8,404,733

Interest, dividends and fees receivable
 
1,489,472

 
3,813,730

Due from portfolio companies
 
539,587

 
350,597

Receivables from unsettled transactions
 
28,775,575

 
5,091,671

Deferred financing costs
 
2,308,557

 
2,139,299

Derivative asset at fair value
 
316,967

 
20,876

Other assets
 
731,202

 
761,462

Total assets
 
$
589,793,512

 
$
623,333,714

LIABILITIES AND NET ASSETS
 
 
Liabilities:
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
1,569,469

 
$
901,410

Base management fee and incentive fee payable
 
1,442,121

 
1,368,431

Due to affiliate
 
1,041,237

 
1,457,007

Interest payable
 
2,532,742

 
2,750,587

Payables from unsettled transactions
 
44,817,245

 
37,724,473

Director fees payable
 

 
25,000

Credit facilities payable
 
327,156,800

 
294,656,800

Total liabilities
 
378,559,614

 
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 March 31, 2020 and September 30, 2019
 
294,668

 
294,668

Additional paid-in-capital
 
369,199,332

 
369,199,332

Accumulated overdistributed earnings
 
(158,260,102
)
 
(85,043,994
)
Total net assets (equivalent to $7.17 and $9.65 per common share as of March 31, 2020 and September 30, 2019, respectively) (Note 12)
 
211,233,898

 
284,450,006

Total liabilities and net assets
 
$
589,793,512

 
$
623,333,714

See notes to Consolidated Financial Statements.

1


Oaktree Strategic Income Corporation
Consolidated Statements of Operations
(unaudited)
 
 
Three months ended
March 31, 2020
 
Three months ended
March 31, 2019
 
Six months ended
March 31, 2020
 
Six months ended
March 31, 2019
Interest income:
 
 
 
 
 
 
 
 
Control investments
 
$

 
$
1,472,785

 
$
1,436,726

 
$
2,958,208

Non-control/Non-affiliate investments
 
9,638,008

 
10,769,097

 
19,382,457

 
20,420,246

Interest on cash and cash equivalents
 
27,597

 
52,132

 
58,307

 
119,127

Total interest income
 
9,665,605

 
12,294,014

 
20,877,490

 
23,497,581

PIK interest income:
 
 
 
 
 
 
 
 
Non-control/Non-affiliate investments
 
296,894

 
6,004

 
300,457

 
13,749

Total PIK interest income
 
296,894

 
6,004

 
300,457

 
13,749

Fee income:
 
 
 
 
 
 
 
 
Non-control/Non-affiliate investments
 
380,114

 
181,806

 
767,779

 
229,441

Total fee income
 
380,114

 
181,806

 
767,779

 
229,441

Total investment income
 
10,342,613

 
12,481,824

 
21,945,726

 
23,740,771

Expenses:
 
 
 
 
 
 
 
 
Base management fee
 
1,442,121

 
1,451,393

 
2,947,647

 
2,866,160

Part I incentive fee
 
271,520

 
1,096,144

 
1,263,658

 
1,950,522

Professional fees
 
263,188

 
375,601

 
636,374

 
834,213

Directors fees
 
105,000

 
105,278

 
210,000

 
210,278

Interest expense
 
3,477,099

 
3,771,530

 
6,903,990

 
6,994,484

Administrator expense
 
229,039

 
231,033

 
478,953

 
665,900

General and administrative expenses
 
264,391

 
283,338

 
537,870

 
615,564

Total expenses
 
6,052,358

 
7,314,317

 
12,978,492

 
14,137,121

Fees waived
 
(271,520
)
 
(49,253
)
 
(322,121
)
 
(476,647
)
Net expenses
 
5,780,838

 
7,265,064

 
12,656,371

 
13,660,474

Net investment income
 
4,561,775

 
5,216,760

 
9,289,355

 
10,080,297

Unrealized appreciation (depreciation):
 
 
 
 
 
 
 
 
Control investments
 
(16,325,059
)
 
1,684,985

 
(16,460,127
)
 
(2,230,258
)
Non-control/Non-affiliate investments
 
(51,578,952
)
 
6,989,963

 
(49,327,912
)
 
(8,780,850
)
Foreign currency forward contract
 
485,679

 
122,463

 
296,091

 
47,895

Net unrealized appreciation (depreciation)
 
(67,418,332
)
 
8,797,411

 
(65,491,948
)
 
(10,963,213
)
Realized gains (losses):
 
 
 
 
 
 
 
 
Non-control/Non-affiliate investments
 
(7,334,148
)
 
(77,774
)
 
(7,611,373
)
 
1,369,532

Foreign currency forward contract
 
(24,959
)
 
(240,970
)
 
(267,444
)
 
8,120

Net realized gains (losses)
 
(7,359,107
)
 
(318,744
)
 
(7,878,817
)
 
1,377,652

Net realized and unrealized gains (losses)
 
(74,777,439
)
 
8,478,667

 
(73,370,765
)
 
(9,585,561
)
Net increase (decrease) in net assets resulting from operations
 
$
(70,215,664
)
 
$
13,695,427

 
$
(64,081,410
)
 
$
494,736

Net investment income per common share — basic and diluted
 
$
0.15

 
$
0.18

 
$
0.32

 
$
0.34

Earnings (loss) per common share — basic and diluted (Note 5)
 
$
(2.38
)
 
$
0.46

 
$
(2.17
)
 
$
0.02

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
March 31, 2020
 
Three months ended
March 31, 2019
 
Six months ended
March 31, 2020
 
Six months ended
March 31, 2019
Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
4,561,775

 
$
5,216,760

 
$
9,289,355

 
$
10,080,297

Net unrealized appreciation (depreciation)
 
(67,418,332
)
 
8,797,411

 
(65,491,948
)
 
(10,963,213
)
Net realized gains (losses)
 
(7,359,107
)
 
(318,744
)
 
(7,878,817
)
 
1,377,652

Net increase (decrease) in net assets resulting from operations
 
(70,215,664
)
 
13,695,427

 
(64,081,410
)
 
494,736

Stockholder transactions:
 
 
 
 
 
 
 
 
Distributions to stockholders
 
(4,567,348
)
 
(4,567,349
)
 
(9,134,698
)
 
(9,134,698
)
Net increase (decrease) in net assets from stockholder transactions
 
(4,567,348
)
 
(4,567,349
)
 
(9,134,698
)
 
(9,134,698
)
Capital share transactions:
 
 
 
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
 
77,648

 
50,543

 
141,982

 
104,654

Repurchases of common stock under dividend reinvestment plan
 
(77,648
)
 
(50,543
)
 
(141,982
)
 
(104,654
)
Net change in net assets from capital share transactions
 

 

 

 

Total increase (decrease) in net assets
 
(74,783,012
)
 
9,128,078

 
(73,216,108
)
 
(8,639,962
)
Net assets at beginning of period
 
286,016,910

 
277,977,380

 
284,450,006

 
295,745,420

Net assets at end of period
 
$
211,233,898

 
$
287,105,458

 
$
211,233,898

 
$
287,105,458

Net asset value per common share
 
$
7.17

 
$
9.74

 
$
7.17

 
$
9.74

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)

 
 
Six months ended
March 31, 2020
 
Six months ended
March 31, 2019
Operating activities:
 
 
 
 
Net increase (decrease) in net assets resulting from operations
 
$
(64,081,410
)
 
$
494,736

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
 
65,491,948

 
10,963,213

Net realized (gains) losses
 
7,878,817

 
(1,377,652
)
PIK interest income
 
(300,457
)
 
(13,749
)
Accretion of original issue discount on investments
 
(852,940
)
 
(1,197,136
)
Amortization of deferred financing costs
 
475,742

 
280,010

Purchases of investments
 
(140,312,087
)
 
(155,778,510
)
Proceeds from the sales and repayments of investments
 
140,374,935

 
112,050,349

Changes in operating assets and liabilities:
 
 
 
 
(Increase) decrease in interest, dividends and fees receivable
 
2,324,258

 
203,568

(Increase) decrease in due from portfolio companies
 
(188,990
)
 
115,855

(Increase) decrease in receivables from unsettled transactions
 
(23,683,904
)
 
5,143,533

(Increase) decrease in other assets
 
30,260

 
(38,581
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
 
23,059

 
1,088

Increase (decrease) in base management fee and incentive fee payable
 
73,690

 
(547,236
)
Increase (decrease) in due to affiliate
 
(415,770
)
 
(653,064
)
Increase (decrease) in interest payable
 
(217,845
)
 
1,830,825

Increase (decrease) in payables from unsettled transactions
 
7,092,772

 
462,943

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

Net cash provided by (used in) operating activities
 
(6,312,922
)
 
(28,059,808
)
Financing activities:
 
 
 
 
Distributions paid in cash
 
(8,992,716
)
 
(9,030,044
)
Borrowings under credit facilities
 
63,000,000

 
92,000,000

Repayments of borrowings under credit facilities
 
(30,500,000
)
 
(59,400,000
)
Repurchases of common stock under dividend reinvestment plan
 
(141,982
)
 
(104,654
)
Deferred financing costs paid
 

 
(10,000
)
Net cash provided by (used in) financing activities
 
23,365,302

 
23,455,302

Effect of exchange rate changes on foreign currency
 
148,829

 

Net increase (decrease) in cash and cash equivalents and restricted cash
 
17,201,209

 
(4,604,506
)
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
 
$
31,252,841

 
$
11,827,281

Supplemental information:
 
 
 
 
Cash paid for interest
 
$
6,646,093

 
$
4,883,649

Non-cash financing activities:
 
 
 
 
Issuance of shares of common stock under dividend reinvestment plan
 
$
141,982

 
$
104,654

Deferred financing costs incurred
 
(645,000
)
 

 
 
 
 
 
Reconciliation to the Consolidated Statements of Assets and Liabilities
 
 March 31, 2020
 
September 30, 2019
Cash and cash equivalents
 
$
21,931,375

 
$
5,646,899

Restricted cash
 
9,321,466

 
8,404,733

Total cash and cash equivalents and restricted cash
 
$
31,252,841

 
$
14,051,632

See notes to Consolidated Financial Statements.

4

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
March 31, 2020
(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 10/20/2028
 
 
$
66,045,551

 
$
66,045,552

 
$
37,833,930

 
(6)(9)(14)(15)(16)
87.5% equity interest
 
 
 
 
7,111,751

 

 
(9)(12)(14)
 
 
 
 
 
73,157,303

 
37,833,930

 
 
 Total Control Investments (17.9% of net assets)
 
 
 
 
$
73,157,303

 
$
37,833,930

 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments
 
 
 
 
 
 
 
 
(13)
4 Over International, LLC
 
Commercial Printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022
7.45%
 
$
5,552,473

 
$
5,489,734

 
$
5,349,806

 
(6)(15)
First Lien Revolver, PRIME+5.00% cash due 6/7/2021
8.25%
 
68,452

 
67,950

 
65,954

 
(6)(15)
 
 
 
 
 
5,557,684

 
5,415,760

 
 
99 Cents Only Stores LLC
 
General Merchandise Stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022
6.95%
 
1,631,483

 
1,571,755

 
1,169,227

 
(6)
 
 
 
 
 
1,571,755

 
1,169,227

 
 
Access CIG, LLC
 
Diversified Support Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025
5.53%
 
5,434,653

 
5,393,775

 
4,476,796

 
(6)
 
 
 
 
 
5,393,775

 
4,476,796

 
 
Accupac, Inc.
 
Personal Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026
7.84%
 
3,835,865

 
3,771,034

 
3,768,737

 
(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026
 
 

 
(12,118
)
 
(12,547
)
 
(6)(14)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/17/2026
7.05%
 
477,989

 
469,911

 
469,625

 
(6)(15)
 
 
 
 
 
4,228,827

 
4,225,815

 
 
AI Ladder (Luxembourg) Subco S.a.r.l.
 
Electrical Components & Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025
5.49%
 
6,468,852

 
6,321,716

 
5,455,377

 
(6)(9)
 
 
 
 
 
6,321,716

 
5,455,377

 
 
Aldevron, L.L.C.
 
Biotechnology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026
5.70%
 
4,000,000

 
3,960,000

 
3,780,000

 
(6)
 
 
 
 
 
3,960,000

 
3,780,000

 
 
All Web Leads, Inc.
 
Advertising
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.50% cash due 12/29/2020
9.11%
 
23,928,327

 
23,928,301

 
20,109,342

 
(6)(15)
 
 
 
 
 
23,928,301

 
20,109,342

 
 
Altice France S.A.
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026
4.70%
 
7,994,000

 
7,560,664

 
7,654,254

 
(6)(9)
 
 
 
 
 
7,560,664

 
7,654,254

 
 
Ancile Solutions, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021
8.45%
 
8,062,666

 
7,966,649

 
7,861,099

 
(6)(15)
 
 
 
 
 
7,966,649

 
7,861,099

 
 
Apptio, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025
8.25%
 
10,693,944

 
10,521,069

 
10,191,328

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

 
(11,023
)
 
(32,538
)
 
(6)(14)(15)
 
 
 
 
 
10,510,046

 
10,158,790

 
 
Asurion, LLC
 
Property & Casualty Insurance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.00% cash due 11/3/2024
3.99%
 
1,994,924

 
1,790,444

 
1,925,102

 
(6)
 
 
 
 
 
1,790,444

 
1,925,102

 
 
Avaya, Inc.
 
Communications Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 12/15/2024
4.95%
 
8,970,299

 
8,900,617

 
7,736,883

 
(6)
 
 
 
 
 
8,900,617

 
7,736,883

 
 

5

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
March 31, 2020
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
Ball Metalpack Finco, LLC
 
Metal & Glass Containers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/31/2025
6.11%
 
$
8,842,500

 
$
8,808,529

 
$
6,817,568

 
(6)(15)
 
 
 
 
 
8,808,529

 
6,817,568

 
 
Blackhawk Network Holdings, Inc.
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026
7.81%
 
4,375,000

 
4,338,524

 
3,602,091

 
(6)
 
 
 
 
 
4,338,524

 
3,602,091

 
 
Boxer Parent Company Inc.
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025
5.24%
 
6,087,938

 
6,022,006

 
5,119,194

 
(6)
 
 
 
 
 
6,022,006

 
5,119,194

 
 
Cadence Aerospace, LLC
 
Aerospace & Defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 11/14/2023
8.28%
 
13,445,357

 
13,346,089

 
12,734,300

 
(6)(15)
 
 
 
 
 
13,346,089

 
12,734,300

 
 
Canyon Buyer, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 2/15/2025
5.71%
 
5,901,878

 
5,843,400

 
5,311,690

 
(6)
 
 
 
 
 
5,843,400

 
5,311,690

 
 
Chief Power Finance II, LLC
 
Independent Power Producers & Energy Traders
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022
7.95%
 
3,412,500

 
3,338,405

 
3,218,670

 
(6)(15)
 
 
 
 
 
3,338,405

 
3,218,670

 
 
CircusTrix Holdings LLC
 
Leisure Facilities
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% PIK due 12/16/2021

 
8,102,447

 
8,066,611

 
7,280,859

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

 
975,636

 
960,193

 
795,329

 
(6)(14)(15)(17)
 
 
 
 
 
9,026,804

 
8,076,188

 
 
CITGO Petroleum Corp.
 
Oil & Gas Refining & Marketing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 7/29/2021
5.50%
 
5,906,250

 
5,895,021

 
5,551,875

 
(6)
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024
6.00%
 
5,940,000

 
5,880,600

 
5,256,900

 
(6)
 
 
 
 
 
11,775,621

 
10,808,775

 
 
Commscope, Inc.
 
Communications Equipment
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.25% cash due 4/6/2026
4.24%
 
2,941,609

 
2,792,194

 
2,794,529

 
(6)(9)
 
 
 
 
 
2,792,194

 
2,794,529

 
 
Connect U.S. Finco LLC
 
Alternative Carriers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/11/2026
5.49%
 
10,572,000

 
10,299,289

 
8,523,675

 
(6)(9)
 
 
 
 
 
10,299,289

 
8,523,675

 
 
Continental Intermodal Group LP
 
Oil & Gas Storage & Transportation
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+8.50% PIK due 1/28/2025

 
13,059,121

 
13,059,121

 
12,210,278

 
(6)(15)(17)
 
 
 
 
 
13,059,121

 
12,210,278

 
 
Coyote Buyer, LLC
 
Specialty Chemicals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026
7.74%
 
5,477,733

 
5,422,956

 
5,422,956

 
(6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025
7.74%
 
94,207

 
84,786

 
84,786

 
(6)(14)(15)
 
 
 
 
 
5,507,742

 
5,507,742

 
 
CPI Holdco, LLC
 
Health Care Supplies
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 11/4/2026
5.70%
 
5,924,000

 
5,899,000

 
5,213,120

 
(6)
 
 
 
 
 
5,899,000

 
5,213,120

 
 
CTOS, LLC
 
Trading Companies & Distributors
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 4/18/2025
5.00%
 
8,775,123

 
8,882,968

 
7,568,544

 
(6)
 
 
 
 
 
8,882,968

 
7,568,544

 
 
Curium Bidco S.à.r.l.
 
Biotechnology
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 7/9/2026
5.07%
 
3,980,000

 
3,950,150

 
3,781,000

 
(6)(9)
 
 
 
 
 
3,950,150

 
3,781,000

 
 

6

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
March 31, 2020
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
Cypress Intermediate Holdings III, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+2.75% cash due 4/29/2024
3.75%
 
$
985,467

 
$
862,283

 
$
910,497

 
(6)
 
 
 
 
 
862,283

 
910,497

 
 
Dcert Buyer, Inc.
 
Internet Services & Infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/16/2026
4.99%
 
9,000,000

 
8,977,500

 
8,092,530

 
(6)
 
 
 
 
 
8,977,500

 
8,092,530

 
 
Dealer Tire, LLC
 
Distributors
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 12/12/2025
5.24%
 
8,779,995

 
8,702,030

 
7,302,014

 
(6)
 
 
 
 
 
8,702,030

 
7,302,014

 
 
The Dun & Bradstreet Corporation
 
Research & Consulting Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 2/6/2026
4.96%
 
5,000,000

 
4,915,567

 
4,543,750

 
(6)
 
 
 
 
 
4,915,567

 
4,543,750

 
 
Ellie Mae, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 4/17/2026
5.20%
 
7,462,500

 
7,422,700

 
6,557,672

 
(6)
 
 
 
 
 
7,422,700

 
6,557,672

 
 
EnergySolutions LLC
 
Environmental & Facilities Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 5/9/2025
5.20%
 
3,930,000

 
3,915,557

 
3,458,400

 
(6)
 
 
 
 
 
3,915,557

 
3,458,400

 
 
eResearch Technology, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 2/4/2027
5.95%
 
4,000,000

 
3,960,000

 
3,548,000

 
(6)
 
 
 
 
 
3,960,000

 
3,548,000

 
 
Firstlight Holdco, Inc.
 
Alternative Carriers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025
4.49%
 
7,120,482

 
7,093,077

 
5,862,542

 
(6)
 
 
 
 
 
7,093,077

 
5,862,542

 
 
GFL Environmental Inc.
 
Environmental & Facilities Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.00% cash due 5/30/2025
4.00%
 
1,118,000

 
1,031,676

 
1,089,586

 
(6)(9)
 
 
 
 
 
1,031,676

 
1,089,586

 
 
GI Chill Acquisition LLC
 
Managed Health Care
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025
5.45%
 
2,984,848

 
2,962,462

 
2,581,894

 
(6)(15)
 
 
 
 
 
2,962,462

 
2,581,894

 
 
GKD Index Partners, LLC
 
Specialized Finance
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023
8.45%
 
8,377,426

 
8,323,106

 
8,226,633

 
(6)(15)
First Lien Revolver, LIBOR+7.00% cash due 6/29/2023
8.12%
 
355,556

 
351,432

 
347,111

 
(6)(14)(15)
 
 
 
 
 
8,674,538

 
8,573,744

 
 
Global Medical Response
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025
5.86%
 
2,476,005

 
2,430,073

 
2,234,595

 
(6)
 
 
 
 
 
2,430,073

 
2,234,595

 
 
Guidehouse LLP
 
Research & Consulting Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025
5.49%
 
2,487,342

 
2,463,570

 
2,039,620

 
(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026
8.99%
 
5,000,000

 
4,980,867

 
4,325,000

 
(6)(15)
 
 
 
 
 
7,444,437

 
6,364,620

 
 
Helios Software Holdings, Inc.
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 10/24/2025
5.32%
 
3,990,000

 
3,950,100

 
3,438,043

 
(6)
 
 
 
 
 
3,950,100

 
3,438,043

 
 

7

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
March 31, 2020
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
HNC Holdings, Inc.
 
Building Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/5/2023
5.00%
 
$
445,449

 
$
424,290

 
$
403,131

 
(6)
 
 
 
 
 
424,290

 
403,131

 
 
iCIMs, Inc.
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024
7.50%
 
5,572,549

 
5,488,059

 
5,341,288

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

 
(5,567
)
 
(12,206
)
 
(6)(14)(15)
 
 
 
 
 
5,482,492

 
5,329,082

 
 
Intelsat Jackson Holdings S.A.
 
Alternative Carriers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 11/27/2023
5.68%
 
3,399,747

 
3,290,811

 
3,151,141

 
(6)(9)
First Lien Term Loan, LIBOR+4.50% cash due 1/2/2024
6.43%
 
319,000

 
288,695

 
297,308

 
(6)(9)
 
 
 
 
 
3,579,506

 
3,448,449

 
 
Intrawest Resorts Holdings, Inc.
 
Leisure Facilities
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+2.75% cash due 7/31/2024
3.74%
 
394,990

 
337,716

 
361,416

 
(6)
 
 
 
 
 
337,716

 
361,416

 
 
KIK Custom Products Inc.
 
Household Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023
5.00%
 
5,000,000

 
5,022,188

 
4,522,925

 
(6)(9)
 
 
 
 
 
5,022,188

 
4,522,925

 
 
Lannett Company, Inc.
 
Pharmaceuticals
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.38% cash due 11/25/2022
6.38%
 
7,031,897

 
7,042,185

 
6,258,388

 
(6)(9)
 
 
 
 
 
7,042,185

 
6,258,388

 
 
Lightbox Intermediate, L.P.
 
Real Estate Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026
5.80%
 
9,925,000

 
9,794,418

 
8,684,375

 
(6)(15)
 
 
 
 
 
9,794,418

 
8,684,375

 
 
McAfee, LLC
 
Systems Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.75% cash due 9/30/2024
4.69%
 
6,745,069

 
6,637,857

 
6,374,090

 
(6)
 
 
 
 
 
6,637,857

 
6,374,090

 
 
MHE Intermediate Holdings, LLC
 
Diversified Support Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024
6.07%
 
11,478,923

 
11,347,798

 
11,169,038

 
(6)(15)
First Lien Revolver, LIBOR+5.00% cash due 3/10/2023
6.00%
 
5,123,153

 
4,894,206

 
4,981,302

 
(6)(14)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/2024
6.45%
 
2,337,483

 
2,364,118

 
2,274,381

 
(6)(15)
 
 
 
 
 
18,606,122

 
18,424,721

 
 
Mindbody, Inc.
 
Internet Services & Infrastructure
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+7.00% cash due 2/14/2025
8.00%
 
9,047,619

 
8,900,611

 
8,369,048

 
(6)(15)
First Lien Revolver, LIBOR+7.00% cash due 2/14/2025
8.07%
 
952,381

 
936,906

 
880,952

 
(6)(15)
 
 
 
 
 
9,837,517

 
9,250,000

 
 
Ministry Brands, LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022
6.45%
 
57,500

 
56,639

 
56,758

 
(6)(14)(15)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023
10.51%
 
1,568,067

 
1,556,611

 
1,556,438

 
(6)(15)
Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/2023
10.51%
 
431,933

 
425,935

 
428,730

 
(6)(15)
 
 
 
 
 
2,039,185

 
2,041,926

 
 
MRI Software LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026
6.57%
 
5,316,241

 
5,265,427

 
4,731,878

 
(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026
 
 

 
(5,835
)
 
(111,564
)
 
(6)(14)(15)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026
6.57%
 
264,127

 
258,844

 
203,378

 
(6)(14)(15)
 
 
 
 
 
5,518,436

 
4,823,692

 
 
OEConnection LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026
5.45%
 
7,725,249

 
7,686,623

 
6,238,139

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

 
(3,542
)
 
(141,667
)
 
(6)(14)
 
 
 
 
 
7,683,081

 
6,096,472

 
 
 
 
 
 
 
 
 
 
 
 

8

Oaktree Strategic Income Corporation
Consolidated Schedule of Investments
March 31, 2020
(unaudited)



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

 
Cost
 
Fair Value
 
Notes
Olaplex, Inc.
 
Personal Products
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026
7.50%
 
$
9,000,000

 
$
8,826,898

 
$
8,415,000

 
(6)(15)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025
7.50%
 
972,000

 
953,454

 
908,820

 
(6)(15)
 
 
 
 
 
9,780,352

 
9,323,820

 
 
Onvoy, LLC
 
Integrated Telecommunication Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024
5.50%
 
3,840,808

 
3,830,168

 
3,043,840

 
(6)
 
 
 
 
 
3,830,168

 
3,043,840

 
 
PaySimple, Inc.
 
Data Processing & Outsourced Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025
6.46%
 
7,512,250

 
7,376,353

 
6,836,148

 
(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/23/2025
6.48%
 
1,651,259

 
1,604,479

 
1,430,919

 
(6)(14)(15)
 
 
 
 
 
8,980,832

 
8,267,067

 
 
Peraton Corp.
 
Aerospace & Defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+5.25% cash due 4/29/2024
6.87%
 
6,321,250

 
6,302,913

 
5,910,369

 
(6)
 
 
 
 
 
6,302,913

 
5,910,369

 
 
Petsmart, Inc.
 
Specialty Stores
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 3/11/2022
5.00%
 
677,000

 
609,300

 
651,024

 
(6)
 
 
 
 
 
609,300

 
651,024

 
 
Prairie ECI Acquiror LP
 
Oil & Gas Storage & Transportation
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.75% cash due 3/11/2026
6.49%
 
7,500,000

 
7,425,000

 
3,937,500

 
(6)(15)
 
 
 
 
 
7,425,000

 
3,937,500

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

 
8,777,633

 
7,734,028

 
(6)(15)
 
 
 
 
 
8,777,633

 
7,734,028

 
 
Project Boost Purchaser, LLC
 
Application Software
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+3.50% cash due 6/1/2026
4.49%
 
2,786,000

 
2,758,140

 
2,349,517

 
(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027
8.99%
 
1,500,000

 
1,500,000

 
1,162,500

 
(6)(15)
 
 
 
 
 
4,258,140

 
3,512,017

 
 
Quikrete Holdings, Inc.
 
Construction Materials
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+2.50% cash due 2/1/2027
3.49%
 
3,555,090

 
3,284,014

 
3,288,458

 
(6)
 
 
 
 
 
3,284,014

 
3,288,458

 
 
Recorded Books Inc.
 
Publishing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.25% cash due 8/29/2025
4.95%
 
12,337,437

 
12,229,024

 
10,918,631

 
(6)
 
 
 
 
 
12,229,024

 
10,918,631

 
 
RevSpring, Inc.
 
Commercial Printing
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.00% cash due 10/11/2025
5.45%
 
9,875,000

 
9,855,299

 
8,566,563

 
(6)(15)
 
 
 
 
 
9,855,299

 
8,566,563

 
 
Sabert Corporation
 
Metal & Glass Containers
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026
5.50%
 
2,900,000

 
2,871,000

 
2,697,000

 
(6)
 
 
 
 
 
2,871,000

 
2,697,000

 
 
Salient CRGT, Inc.
 
Aerospace & Defense
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022
7.57%
 
5,650,744

 
5,607,870

 
4,661,863

 
(6)(15)
 
 
 
 
 
5,607,870

 
4,661,863

 
 
Signify Health, LLC
 
Health Care Services
 
 
 
 
 
 
 
First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024
5.95%
 
10,780,000

 
10,705,507

 
9,055,200

 
(6)
 
 
 
 
 
10,705,507

 
9,055,200